Firstsource Solutions Limited · NSE:FSL
Firstsource Solutions — Q4 FY2008 Earnings Presentation
21 slides from Firstsource Solutions's earnings presentation, Apr 29, 2008
Slide 1: Firstsource Solutions Limited Q4 FY 2007-08 Earnings Update
Firstsource Solutions Limited Q4 FY 2007-08 Earnings Update
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially form those in such forward-looking statements. The risks and uncertainties
Slide 3: Agenda
Agenda • Financial Performance - FY 2008 - Q4 FY2008 • Update on MedAssist • Update on Collections Business • FY2009 Guidance
Slide 4: FY2008 Highlights
FY2008 Highlights • Financial Performance - Total Income growth of 59.1% - Operating EBIT growth of 45.7% - PAT growth of 35.3% • Acquisition of MedAssist Holding Inc. - Enhances the value proposition and deepens the domain in the healthcare vertical - Financed by an FCCB issue of $ 275 million • Co
Slide 5: Financial Summary FY2008
Financial Summary FY2008 (IN INR Million) FY 2007 FY 2008 Revenue from Operations • Up 56.3% Y-o-Y 15,000 12,988 Income from services 8,168 12,406 Other operating Income 142 582 10,000 8,310 R s.Mn Revenue from operations 8,310 12,988 Personnel & Operating Exps 6,654 10,649 5,000 Operating EBITDA 1,
Slide 6: Financial Summary Q4 FY2008
Financial Summary Q4 FY2008 • Up 37.4% Y-o-Y (IN INR Million) Q4 FY Q3 FY Q4 FY Revenue from Operations 2007 2008 2008 • Up 1.6% Q-o-Q 3,695 3,756 4,000 Income from services 2,684 3,589 3,692 2,774 Other operating Income 90 106 64 3,000 Rs.M n Revenue from operations 2,774 3,695 3,756 2,000 Personne
Slide 7: Performance Overview on Total Income Basis
Performance Overview on Total Income Basis • Up 37.5% Y-o-Y Total Income • Up 59.1% Y-o-Y • Up 0.6% Q-o-Q 3,770 3,792 15,000 13,337 4,000 3,000 2,758 10,000 8,382 Rs.M n Rs.M n 2,000 5,000 1,000 0 0 Q4 FY2007 Q3 FY2008 Q4 FY2008 FY2007 FY2008 EBITDA • Up 16.9% Y-o-Y • Up 55.6% Y-o-Y 1,000 24% 20.4%
Slide 8: Q4 FY2008 Highlights (1/2)
Q4 FY2008 Highlights (1/2) • Barclays Deal - Colorado Springs center transitioned to Firstsource beginning March 2008, 5-year contract for $80 million • Total employee strength of 17,369, up by 279 from end Dec-07 - India based - 13,159 - Outside India based - 4,210 • Attrition - Post 180 days – 38.
Slide 9: Q4 FY2008 Highlights (2/2)
Q4 FY2008 Highlights (2/2) Client concentration Revenues by vertical Telecom + Revenue from top five clients Media 34.0% 60% 51.4% 37.4% Healthcare 40% 30.2% 9.1% BFSI 51.8% Others 20% 5.1% 0% FY2007 FY2007 FY2008 Q4 FY2008 Healthcare Note: Largest client contributed 10.9% of income from services in
Slide 10: Agenda
Agenda • Financial Performance - FY 2008 - Q4 FY2008 • Update on MedAssist • Update on Collections Business • FY2009 Guidance
Slide 11: MedAssist at a Glance
MedAssist at a Glance • Strong market position built over 19 years in attractive hospital revenue cycle segment - Market leader in Eligibility Service - Top 5 in Receivable Management Service - Top 10 in Hospital Collection Service - Economically stable market • Large and diverse client base of blue
Slide 12: MedAssist Favorable Market Trends / Significant Share Upside
MedAssist Favorable Market Trends / Significant Share Upside • Healthcare expenditures in the United States are growing much faster than GDP • Providers face significant revenue and cost pressures as the self-pay population increases • Providers are increasingly outsourcing multiple elements of thei
Slide 13: MedAssist's Comprehensive Revenue Cycle Offering
MedAssist’s Comprehensive Revenue Cycle Offering • MedAssist’s services address multiple critical points along the revenue cycle, from pre-visit screening to self-pay eligibility to past-due receivables management and collections Customer Early– Service MAP Out Call Center Pre- Pre Extended Registra
Slide 14: Firstsource Leverage
Firstsource Leverage • Combined Service Offering Customer Early– Service Open Scanning MAP Out Call Center Enrollment Pre Pre- Extended Certification Claims Registration Business Bad Debt Adjudication Eligibility Office Collections Billing Patient Services Follow-up Eligibility Services Receivables
Slide 15: Integration Synergies and Opportunities
Integration Synergies and Opportunities • Revenue Synergies - Cross sell opportunities e.g. claims denial management, electronic patient records, charge capture • Low Cost Sourcing - ‘Near Shore’ and ‘Off Shore’ opportunities in back office production staff. - EDI and help desk functions • Consolida
Slide 16: Agenda
Agenda • Financial Performance - FY 2008 - Q4 FY2008 • Update on MedAssist • Update on Collections Business • FY2009 Guidance
Slide 17: Collections Performance
Collections Performance • Q4 performance has been significantly better than Q3, contributed by - Seasonality due to the tax refund season in the US - Improvement in operational parameters due to change in strategy • Sub-prime crisis continues to impact consumer debt in the US quite significantly - A
Slide 18: Collections Strategy
Collections Strategy • Anticipate continued volatility in the collections business - Length and depth of recession - How quickly clients adjust commission rates to the new reality - Expect profitability outlook likely to be uncertain for at least the next 2 quarters • Focus continues to be on strong
Slide 19: Agenda
Agenda • Financial Performance - FY 2008 - Q4 FY2008 • Update on MedAssist • Update on Collections Business • FY2009 Guidance
Slide 20: FY2009 Guidance
FY2009 Guidance • Revenue - Operating revenue growth between 33-38% in USD terms • Excluding MedAssist, growth would be 17-21% • Impact of fall off of grant in Northern Ireland is 3% - Dollar FX rate assumption at Rs. 39.50 • Profits - Expect operating EBIT % for the year to be similar to slightly b
Slide 21: Thank You
THANK YOU Firstsource (NSE: FSL, BSE: 532809, Reuters: FISO.BO, Bloomberg: FSOL@IN) is among India’s leading BPO (business process outsourcing) service providers. Firstsource provides customized business process management to global leaders in the Banking & Financial Services, Telecom & Media and He
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