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Quess: Group Overview
February 2015
IKYA is now Quess
From 2007
2
From 2015
Group Overview
Founded
October 2007
Ownership
Majority owned by Fairfax
Financial Holdings through TCIL
Current
Headcount
~90,000 Employees
Present in
5 countries across Asia & North
America
68%(1)
Headcount (in ‘000s)
90
80
70
60
50
40
30
20
10
0
85.7
FY09
3
FY10
FY11
(1) On fully diluted basis
FY12
FY13
FY14
73%
FY15 Dec'14
Global Technology
Solutions (GTS)
Industrial Asset
Management
Integrated
Facility
Management
People &
Services
IT Solutions,
Services &
Products
Enhancing
Industrial Asset Life
and Performance
Integrated
Maintenance of
Facilities
Recruitment,
Staffing and
Managed Services
Milestones In Our Journey
Acquired
Coacheive
Solutions – an
RPO company
Investment by
IEP
FY08
FY09
Acquired Avon
FMS – enters
Facility Mngt
FY10
Selected by
MoRD - GoI to
train 8,000
youth
FY11
Acquired
Magna –
India’s largest
IT staffing
company
FY12
Bought out
residual stake
in Magna and
Avon FMS
FY13
Fairfax backed
TCIL acquired
74% stake in
Quess. IEP
exits
FY14
FY15
Acquired Hofincons –
entry into Engineering
Services
Acquired Brainhunter –
Entry into Staffing – Int’l
Acquired significant
stake in MFX –
integrated offering in IT
4
Key Business Verticals
Preferred Partner of Marquee Clients Across Verticals
Marquee Clients
Global Technology
Solutions (GTS)
Industrial Asset
Management
5
• India’s largest IT staff augmentation and solutions provider with a
growing presence in Philippines and North America
• IT Solutions and Services to P&C insurance industry and IT
infrastructure services across industries
• Market leader offering comprehensive solutions in Industrial
Operations & Maintenance and Technology & Consulting.
Integrated Facility
Management
• One stop shop for all Facility Management needs
• Offer Soft Services, Hard Services, Security Solutions and Pest
Control Services.
People & Services
• Among the largest companies in the HR Solutions space with about
60.000 employees
• Specialised offerings in Retail Solutions, Search, Recruitment &
RPO, General Staffing, Skill Development and Payroll & Compliance
Market Leadership in Each Vertical
Market Leading Presence Across Business Verticals
 IT Staff Augmentation: Magna is the Market Leader in IT Staff Augmentation in India with about 10,000 employees
 Industrial Asset Management: Hofincons is India’s market leader in the Industrial Asset Management vertical
 Facility Management: Avon is among the Top 5 Independent Players in the Facility Management space. Has about 18,000 employees and is
an integrated player with recent addition of Hard Services business
 Skill and Development: 2nd largest Public Private Partnership (PPP) training company in India.
 General Staffing: Among Top 3 Players in India with about 60,000 employees
6
Financial Highlights
Robust Revenue Growth with Industry Leading Profitability
Consolidated Revenue
Consolidated EBITDA
1,398
100
1,458
6%
4.2%
80
1,001
4.2%
5.4%
4.4%
3.3%
79
60
637
61
1.4%
40
2%
42
275
122
49
FY09
FY10
20
FY11
FY12
FY13
FY14
0
FY15 - 9
Months
4%
50
3.2% 3%
40
2.3%
1.0%
1.1%
20
-10
-1
FY09
FY10
0.9%
3
7
9
FY11
FY12
FY13
47
32
-20
7
9
FY09
FY10
FY11
27
FY12
0%
FY13
EBITDA
FY14
Margin
FY15 9
Months
Net Income
22%
24%
24%
21%
2%
10%
1%
4%
0%
0
-10
2
Return Metrics (RoCE)(1)
60
10
-8
-20
Consolidated Net Income
30
4%
FY14
Margin
Note: Figures in INR cr
(1) RoCE arrived at as (EBIT+Other Income)/(Net Worth + Gross Debt + Minority Interest)
FY15 9
Months
-1%
-2%
NM
FY09
FY10
FY11
FY12
FY13
FY14
FY15 9
Months
-2%
Group Strategy
Emergence as Integrated Biz Services Provider
 Continue to focus on “People Driven”
business services
FY13
FY15
 Expansion into complementary businesses
which have a strategic fit
 Entry into high margin “Growth Businesses”
 Growth in EBITDA margins from 4% in FY11
to 5% in FY14, with further margin expansion
to 6% expected in FY15
Managed Services
9
Margin Focused Growth
Growth driven by Margin Expansion, Geographic Footprint and New Services
Existing Businesses
New Businesses
Quess Group
Global Technology Services
FY13
 IT Staffing –
Domestic
10
FY15
 IT Staffing –
Domestic
 IT Staffing –
International
(Canada &
Manila)
 IT Services –
Offshore
Delivery Centre
(Chennai)
 IT Products
(MFX)
 ERP Consulting
– Data Migration
& Maintenance
Industrial Asset Management
FY13
FY15
 O&M – Industrial
assets
 O&M – Oil &
Gas (Middle
East)
Integrated Facility Management
FY13
 FM – Soft
Services
 Pest Control
 Industrial
Catering
Services
FY15
 Housekeeping –
Soft Services
 Pest Control
 Industrial
Catering
Services
 FM – Hard
Services
 Security
Services
People & Services
FY13
FY15
 General Staffing
 Recruitment
 RPO
 Training & Skill
Development
 General Staffing
 Recruitment
 RPO
 Training & Skill
Development
 Compliance
Management
 Payroll
Administration
 Managed
Services:
Telecom &
Utilities
 Retail
Management
Solutions
Inorganic Strategy: Business Return Optimisation
1.
Quess Group believes in investing in value opportunities that have clear potential of multi-fold growth
2.
Magna and Avon have emerged among the market leaders in their respective segments with industry leading growth
and profitability margins
Amount Invested(1) /
Year of Acquisition
11
Key Financials –
Year of Acquisition
Key Financials –
FY15 – 9 Months
INR 88 cr / Dec ‘10
Revenue: INR 182 cr
EBITDA: INR 10 cr
Revenue: INR 319 cr
EBITDA: INR 38 cr
INR 16 cr / July ‘08
Revenue: INR 12 cr
EBITDA: INR 0.2 cr
Revenue: INR 159 cr
EBITDA: INR 9 cr
INR 50 cr / June ‘14
Revenue: INR 145 cr
EBITDA: INR 14 cr
(FY14 Financials)
Revenue: INR 120 cr
EBITDA: INR 12 cr
Note: Figures in INR cr
(1) Amount invested refers to the equity invested till date and not the equity invested on the date of acquisition
Vision 2018
Rapid growth aided by strong business fundamentals and operational efficiencies
Vision 2018
Key Enablers To Achieve Vision 2018
Current

1
2
12
Revenue

~550 BPS EBITDA margin
translating to ~USD 13mn
(FY15 – 9 Months)

Integrated business services
provider with gaps in service
offering – Build vs Buy

Market leading presence in
India.
EBITDA
3
Business
Presence
4
Geographic
Presence
>USD 0.4 bn of Gross
Revenue (based on current
run rate) with CAGR of
~88%
Target

Continue revenue growth at
industry leading levels

Margin expansion to 800
BPS

Integrated business service
provider. Owning high
quality assets with annuity
income

Strong presence in ASEAN
countries, Middle East and
North America
Operational
Excellence
Backing of
Marquee
Parent
New
Business /
Geography
Vision 2018
Risk
Management
Business
Review
Mechanism
Appendix
Quess – Key Management Team
Key Management
Ajit Isaac
Chairman & MD
Management Background
 Has over 23 years of experience and a thought leader in Business Services space
 Founded PeopleOne Consulting in 2000 – largest staffing company in India – acquired by Adecco in 2004
 Graduate from Loyola College – Chennai, a Gold Medallist from Madras School of Social Work and a British Chevening
Scholar from the University of Leeds
CFO
 Over 25 years of experience in finance with stints in Ilantus Technology (an IT Consulting Firm Funded by Intel), MindTeck,
Shaw Wallace and Nicco Corporation.
 Joined Quess in May 2008 and instrumental in creating financial and compliance systems at Quess
 A qualified cost accountant and company secretary, Subrata is also a CPA charter holder
Vikram Gulati
President – GTS
Group
 Over 25 years of experience in the IT services industry
 He served as the CEO & President of Intelligroup Inc. a NASDAQ listed IT services company. He has also served as head
of Wipro’s Global Enterprise Application Solutions business and was a part of the senior leadership team.
 Responsible for driving Market Share and Profitability growth in the Group’s GTS Business
 An Electrical Engineer and an MBA from Bombay University
A Rajeshwara Rao
President –
Industrial Asset
Management
Group
 Over 40 years of industry experience, primarily in Senior Leadership positions
 Comes with a 28 years stint in Murugappa Group, of which 21 years were spent as SBU Head. He has held leadership
positions in TVS Group, Ashok Leyland and ACC
 Responsible for financial and operational performance of Quess’ Industrial Asset Management Group
 A graduate in Physics from University of Madras, he completed his Masters in PM & IR from TISS in 1974
Subrata Nag
14
Designation
Quess – Key Management Team (Contd)
Key Management
T.S. KrishnaKumar
Anuraag Gupta
Ranjit Nair
15
Designation
Management Background
President – People
& Services and IFM
 Over 23 years of experience across Manufacturing & IT. Part of Wipro’s Senior Management team and was previously
associated with Ramco Systems and Hindustan Powerplus
 Responsible for driving Market Share and Profitability growth in the People & Services and Integrated Facility Management
Businesses
 A certified 6 Sigma Black Belt, he holds a Masters in Foundry and Forge Technology and has completed an Advanced
Programme Management Course from Stanford University
CEO (Magna)
 Over 18 years of IT & business experience. Has held leadership roles at Capgemini, GE, BhartiAirtel, Gulf Bank and other
banking institutions
 Responsible for driving Market Share and Profitability growth for the Group’s IT Staffing Business
 An MBA from LSE and NYU Stern School of Business, Anuraag is a certified Six Sigma Master Black Belt from GE and
holds an Engineering degree
Group Director –
Corporate Finance
 Over 16 years of experience with stints at CD Capital Markets, Pricewaterhouse Coopers, Sasken Communication, NTT
Data and with Aditi Technologies, where he was Head of Finance and Company Secretary
 A certified Cost Accountant, Chartered Accountant and Company Secretary with a Post Graduate Diploma in Executive
General Management from IIM-Bangalore
 Winner of the “CFO Next 100 Award” from the CFO Institute for 2 years in a row
Thank You!
Quess Corp Limited (formerly IKYA Human Capital Solutions
Limited)
Quess House, 3/3/2 Bellandur Gate, Sarjapur Road
Bangalore 560103, Karnataka, India
Abhinandan R
Vice President - Strategy & Investment
[email protected]