01 the accel story mar 2013

Accel Frontline LimitedAccel Frontline Limited

- An overview

March 2013

Strategy and forecasts in this document are based on current economic and market conditions. With changes in the global

economy and IT markets, the strategy and forecasts would change and consequently Accel cannot guarantee their accuracy

Agenda for discussion

� Corporate at a glance

� Corporate Governance and Business philosophy

� Accel evolution

� Accel’s value proposition

� Business segments overview

� Organization structure

� Global footprint

� Customer landscape

� Awards, Accolades and Certifications

Private and Confidential

� Awards, Accolades and Certifications

� Revenues and margins

� Independent business units

• IT Infrastructure Solutions (IIS)

• IT Infrastructure Management Services (IMS)

• Software Services Division (SSD)

• Warranty Management Services (WMS)

• IT Security Services (Accel Singapore)

• Accel Frontline JLT, Dubai

• Accel IT Resources

© 2013 Accel Frontline Limited

Corporate at a glance

Accel North

America Inc

Software

Corporate structure

Accel

Technologies

Limited, UK

Accel Japan KKAccel Frontline

JLT (UAE)

Accel Systems,

Singapore

Accel IT

Resources

IT training and Software Software IT Infrastructure IT Security

Subsidiaries

Business

focus

100% 100% 100% 100% 51% 100%


Accel Frontline Limited, India

(AFL)

India operations with 4 business units –

contributes over 80% of total revenues of AFL

Software

services

IT training and

education

Software

services

Software

services

IT Infrastructure

solutions

IT Security

services

Business

focus

1

Incorporation and profile

• Accel was incorporated in 1991 to provide multi

vendor services for computer systems.

• Headquartered in Chennai, India, Accel is rated as

one of the Leading IT Employers in India and

currently operates across the globe with about

2000 employees

• Accel went public in the year 2006 and is listed on

National and Bombay stock exchanges in India

• Promoters and Associate holding of Appx 67% as

of date and balance held by public

Market information


Corporate Governance Private and Confidential

The

Governance Framework

Financial Reporting

Risk Management

Whistle Blower Review

Board and Audit

Commitee meetings

Evaluation of Internal Audit

Evaluation of External

Audit

Fraud Risk Assessment

Internal Controls and Compliance

The

Governance Framework

Financial Reporting

Risk Management

Whistle Blower Review

Board and Audit

Commitee meetings

Evaluation of Internal Audit

Evaluation of External

Audit

Fraud Risk Assessment

Internal Controls and Compliance

2

Independent

Board

� Strong Board of Directors with rich experience in IT field

� Majority of directors in the Board are independent

� Frequent review and monitoring of business, operations and financials by the Board

� Strong financial controls with weekly/monthly review of business, operations and financials

� Strict internal control systems to ensure reliable financial reporting, operating efficiency, and

compliance with laws and regulations.

� Independent statutory auditors carrying out quarterly and yearly audits

� Periodic internal audit by Grant Thornton – One among Big 5 audit firms in the world

Financial &

internal

controls


Business Philosophy Private and Confidential

ProcessPeople Technology

3

Process

� ISO 9001/20001 for

Service Delivery

� Assessed at SEI-

CMMI Level 3

� ACCEL Quality

Framework

People

� Domain competency

development

� Software Engineering

and Technology skills

� Knowledge creation

� Best practices

Technology

� Strong partnership with

technology leaders

� Usage of tools and

frameworks

� World class infrastructure


Accel evolution Private and Confidential

Business evolution from System Integrator to an end to end IT solutions provider

1991

Commenced

operations in

Chennai, India to

provide multi

vendor services

for computer

systems

1999

Equity Investment by

ICICI Ventures

Acquisition of SES

division of Fujitsu ICIM

2001

IT Software

Solutions

division formed

2004

JV with BT

Frontline,

Singapore

2007

Acquired the

banking software

division of

Telesys Global

2011

Buy back of

BT

Frontline

stake

Acquisition of

Ushus tech , a

product

engineering

company

4

1997

Set up all India

operations in 1997

for IT services

2000

Equity investment by

Intel Pacific

Wholly owned

subsidiary set up in

Singapore

2002

Wholly owned

subsidiary set up in

Dubai

2006

Went public – NSE

and BSE

2008

Crossed USD 50

million revenues

2012

Amalgamation of all IT

services in AFL

Accel has evolved as a complete IT solutions provider through organic and inorganic mode. Successful management and integration of acquisitions have helped the company to steer the

business growth and improve earnings


Accel’s value proposition Private and Confidential

IT infrastructure

IT applications

Vendor and partner selection

Networking

Storage

Security

Business Continuity Solutions

Availability ServicesAccel value Warranty outsourcing services

5

Banking Solutions

ERP Consulting

Application Management Services

Cloud services

Facility Management

Help Desk services

Managed Services

Accel value

chainRepair Depots

Technical Support

Logistics Management

Onsite Services

New product development

Verification and Validation

Sustenance and re-engineering


Why Accel Private and Confidential

Accel is an established IT player and has a PAN India presence. This along with the strong brand, enables us to launch a new product or service across India in a short span.

Established player and

PAN India presence

Accel has a strong presence in the entire IT service chain, from Design and consulting to support and value added services. With this, Accel is uniquely positioned to provide end to end solutions at optimum costs to customers

Existence in the entire

value chain

Accel has a pool of strong and experienced resources across various domains. With the right infrastructure and process excellence, Accel could

People, Process and

6

domains. With the right infrastructure and process excellence, Accel could penetrate and sustain customers every year and steer business growth

People, Process and

Technology

Quality and sticky

customer base

Niche products, platforms

and product development

capabilities

Accel has strong relationships with a number of Fortune 500 customers and leading corporate houses in India and overseas. Accel has been able to retain these key customers through process and service excellence

Accel has developed niche products / platforms for warranty management business, banking and auto segments. We have strong product development capabilities with its extensive experience in serving customers like Fujitsu, HP,GE, Seagate, Sony, etc.


Business segments overview (1/2)

Service

offerings

IT Infrastructure Solutions

1.IT products including

application, software, hardware

and networks

2.Consulting in selection,

design, acquisition, integration,

installation and support across

IT solutions

Revenues

(USD mn)

IT Infrastructure

Management Services

1. Maintenance Services

2. Facility management

3. Infrastructure management

Typical contract period – 1

to 3 years

Warranty Management

Services

1. Warranty Fulfillment

2. Test and Repair Services

3. Technical Help Desk

Typical contract period – 1 to

3 years

Software Services Division

1. Product development and

engineering services

2. Embedded and telecom

software solutions

3. Banking software solutions

and

4. ERP consulting


29

41 45

29 30

40

50

US

D m

illio

n

14 16 17 19

15

20

25

US

D m

illio

n7 7

8 7

6

8

10

US

D m

illio

n

3 3

9

12

6

10

14

US

D m

illio

n

(USD mn)

(Forex-

INR55/USD)

Regular

Employees*50

Platform /

products

Independent System Solutions

provider

Technology

partners

1. Oracle, Symantec, Cisco,

2. EMC, Extreme, vmware

3. IBM, Dell and Fujitsu

973

Multi vendor services

In-house CRM tool

Oracle, EMC, Hitachi, IBM and

Symantec

250

WM platform enabling web

based multi point delivery

solutions

Independent service provider

600

Vertical industry solution

frameworks

Oracle, Infosys, Microsoft,

VMware, etc.

7

Market

PresencePan India Pan India Pan IndiaIndia, USA, Japan, Europe,

ME and Australia

* Excludes contract employees who are taken on a need basis


20

30

FY10 FY11 FY12 FY13E

US

D m

illio

n

10

15


US

D m

illio

n

4

6


US

D m

illio

n

3 3

2

6


US

D m

illio

n

Business segments overview (2/2)

Service

offerings

IT Security Services

(Accel Singapore)

1. IT security products and

solutions for Enterprise and

Mobility

2. Managed security services

Revenues

(USD mn)

Accel Frontline JLT, Dubai

1. IT products including

application, software,

hardware and networks

2. Consulting in selection,

design, acquisition,

integration, installation and

support across IT solutions

Accel IT resources, India

1. Training services for IT

Infrastructure

Management, embedded

systems and software


1.6 1.4

1.0

1.5

2.0

US

D m

illion

9.1 7.5

8.0

8.5

9.0

9.5

US

D m

illion

5.5 2.0

3.0

4.0

5.0

6.0

US

D m

illio

n

(Forex-

INR55/USD)

Regular

Employees*

17

Platform /

products

System Integrator for security

solutions

Technology

partners

RSA, Akamai, Splunk, Fire I,

IBM

20

System Integrator for

Enterprise IT solutions

Oracle, EMC, Hitachi and

Symantec

140

IT education and training

-

8

Market

Presence

Singapore UAE South India


1.6 1.1

1.4

-

0.5

FY12 FY13E FY14P

US

D m

illion

7.6 7.6

6.5

7.0

7.5

FY12 FY13E FY14P

US

D m

illion

0.2

2.7

-

1.0

2.0

FY12 FY13E FY14P

US

D m

illio

n

Private and ConfidentialOrganization structure

N.R.Panicker

Chairman and CEO

K.R.Chandrasekaran

CFO

N.R.Ramanujam

Sr. VP Corporate

Affairs (HR and IT)

Maqbool Hassan

President

IIS and IMS

Philip John

President

Software Services

R.Ganesh

President

Warranty Services

9© 2013 Accel Frontline Limited

Global footprint Private and Confidential

Accel Frontline JLT

JLT, Dubai - UAE

Accel North America Inc

Santa Clara, CA 95051

Accel Technologies Ltd.

Berkshire – SL14DX (U.K)

10

Accel has a PAN India presence to cater to the growing domestic market and strategically

positioned in other geographies to address emerging opportunities


Accel Japan KK

Tokyo 108-0075

Accel Frontline Limited

Chennai, India

Accel Systems & Technologies Pte

Singapore 339413

Customer landscape Private and Confidential

IT Infrastructure Solutions

IT Infrastructure Management Solutions

11

Software Services

Warranty Management Solutions


Awards, Accolades, Certifications and

Memberships Private and Confidential

- Awarded Sun Premier partner of the Year 2007 by Sun Microsystems

- Excellence award from Sun for Sun Spectrum sales in 2007

Dataquest India ranks Accel Frontline among the top twenty IT employers in India for the fourth consecutive

year. (DQ Sept. 2007)

Accel Frontline was the winner for the 'Best Service Provider' trophy at the third DQ Channels Excellence awards,

2007

Best Implementation Partner for Finacle Implementation from Infosys

12

Best Implementation Partner for Finacle Implementation from Infosys

(won by Telesis, now part of AFL)

IBM award for Best Performing STG Partner for 2007 - South

Best software development partner award from Fujitsu Japan


Consolidated revenues and margins Private and Confidential

Consolidated revenues

USD million FY10 FY11 FY12 FY13E FY14P

IIS 29 41 45 29 29

IMS 14 16 17 19 23

SSD 3 3 9 12 22

WMS 7 7 8 7 9

Others 2 11 9 11 16

Total 55 79 88 78 99

EBITDA Contribution to Company EBITDA

USD million FY10 FY11 FY12 FY13E FY14P FY10 % FY11 % FY12 % FY13E % FY14P %


IIS 0.9 0.6 0.9 0.6 0.9 24% 11% 15% 8% 7%

IMS 2.3 3.1 3.6 3.6 4.5 59% 53% 58% 51% 37%

SSD 0.1 (0.1) 0.2 1.8 4.4 4% -2% 3% 25% 35%

WMS 0.8 1.3 1.0 0.6 1.8 22% 22% 17% 9% 15%

Others (0.3) 0.9 0.4 0.5 0.8 -9% 16% 6% 7% 6%

Total 3.8 5.8 6.1 7.2 12.4

Vision 2020 Private and Confidential

To be a ‘partner of choice’ for global

technology companies and reach a


technology companies and reach a

turnover of USD 500 million with an

EBITDA of USD 100 million

Thank you For further information:

N.R. Panicker, CEO

+91-9791008584

[email protected]

01 the accel story mar 2013

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