TDCX Inc.

Hello and welcome to the TDCX Q3 2022 results announcement. My name is Alex and I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press star 1 on your telephone keypad. If you'd like to withdraw your question, you may press star 2. I'll now hand over to your host, Jason Lim, Head of Investor Relations. Please go ahead.

Hello everyone and welcome to TDCX Test Quarters 2022 Earnings Conference Call. My name is Jason Lim, the Head of Investor Relations. Allow me to introduce management on the call. We have our Executive Chairman, Founder and CEO, Mr. Lahong Junick, our CFO, Mr. Chin Suning, and our EVP of Corporate Development, Mr. Edward Goh. Before we continue, I would like to remind you that we will make forward-looking statements which are subject to risks and uncertainties and may not be realised in the future. You should not place any reliance on any forward-looking statements. Also, this call includes the discussion of certain non-IFRS financial measures, such as adjusted EBITDA and adjusted net income. For a reconciliation of the non-IFRS measures to the closest IFRS measures, please refer to our press release on the Form 6K, which is available on our website. We have provided a convenient translation for the translation of Singapore dollar to the US dollar. This was done at a rate of 1 US dollar to 1.4340 Singapore dollars. This should not be construed as representation that any Singapore dollar amount can be converted to USD at this or any other rate. With that, let me hand over the call to Lahon. Lahon, please.

Hello everyone and welcome to our results briefing for the third quarter of 2022. We've delivered a strong quarter driven by the solid execution of the TDCX team and I want to take this opportunity once again to recognize and to thank them. This once again has been an interesting year, but the teams continue to do their very best. It shows in the results. I'm happy to share that our global expansion plans continued with the addition of two new campuses, one in Iloilo in the Philippines, another one in Istanbul, Turkey. This brings us to a total of 27 campuses globally as we continue building our network. We're seeing greater contribution from our four newer geographies, namely Colombia, India, Romania, and South Korea, which made up close to 10% of the year-on-year growth in revenue for Q3 2022 against Q3 2021. Our expansion in Asia Pacific, Europe and Latin was strategically planned with the objective of positioning ourselves well to emerge stronger amid the changes in the CX outsourcing space and I'm confident our enhanced footprint will provide us with a competitive edge going forward. During the quarter, we're also proud to have had our industry leading practices recognized. We were named a leader by global technology research and advisory firm ISG in their contact center Singapore Malaysia 2022 report. The report acknowledge our capabilities positioning us at the top of the quadrants. On the ESG front, we deepen our commitment to bringing positive transformation to the community with the launch of the TDCX Foundation. through the foundation will be able to help drive greater social impact for disadvantaged communities. Let me next cover some highlights of our financial performance. We delivered robust revenue growth in Q3 2022 as revenue rose 16.1% to $120 million or $173 million Singapore dollars. This was driven by strong contributions from clients across key verticals, in particular the travel and hospitality space, as well as from our new geographies, as mentioned earlier. Our growth was broad-based. Clients outside the top five continued to grow rapidly at more than twice the pace of our group revenue growth in Q3 2022. This has helped diversify our client concentration, Our top two clients stood at 56% for Q3 compared to 63% last year, while the top five stood at 82% compared to 85% last year. In terms of revenue contributions from verticals, travel and hospitality continued its strong growth trajectory and was up 29% compared to Q3 2021. On top of higher contributions from existing clients, The performance was boosted by new and exciting clients that we added in this vertical. Our quarterly revenues for travel and hospitality are now back to the pre-pandemic levels. However, there is still room for us to grow, in particular when the North Asian travel starts to reopen. The digital advertising and media vertical remains our top vertical, driven by our strength in the sales and digital marketing service, as well as the acquisition of new key clients. The leading short form video social media platform that we recently onboarded has started to contribute meaningfully in Q3 and we hope to be able to deliver even more services for them moving forward. Despite some recent turbulence, the global digital advertising market remains an attractive high growth segment over the long term. According to the latest report by research and markets. The global market for digital advertising and marketing is estimated at $477 billion in 2022 and is projected to reach $786 billion by 2026, growing at a CAGR of 13.9% over the period. The fintech vertical puts a strong double digit percentages growth year on year and remains our third largest vertical. Our clients in this space include payment gateways, crypto exchanges, and other fintech companies. Crypto makes up a small contribution to group revenues at around less than 1%. Other than these three verticals, we will continue to try to add clients across different verticals such as e-commerce and gaming. In terms of earnings and quality growth, our numbers show that we continue to deliver quality earnings growth. Adjusted net income, which strips out the performance share plan costs for a like-for-like basis comparison, rose 15% year-on-year to $24 million, or $35 million Singapore dollars. Our adjusted EBITDA margin remains at industry-leading levels, at 31.8% for Q3 2022. Once again, the quality of our earnings growth is translated into strong cash flows. Q3 2022 net cash from operating activities was $90 million, up 53.1% year-on-year. Our CFO will share more details on the numbers in the later sections. In terms of geographies, as mentioned earlier, our strategic geographic expansion initiatives are starting to show up in the numbers. Our new geographies are starting to pull their weight, and we are building strong pockets of revenue contributions from parts of the world that TDCX didn't used to be in, such as North Asia and Latin America. With our expanding footprint, TDCX is able to provide clients with a full range of solutions across different services and different geographies. During the quarter, we launched our Turkey campus spanning 3,000 square meters. This strengthens our capability to offer Turkish and Arabic in addition to European languages such as German. TDCX will also be able to serve better the growing Middle East market on the back of strong demand from brands. In October, we completed the restructuring of our Hong Kong associated company into a wholly owned subsidiary. This will allow us to better tap into opportunities in the greater China area. Moving forward, we plan to expand into Indonesia, Vietnam, and Brazil. Vietnam and Indonesia have further flexibility to offer key Southeast Asian languages in a multilingual centralized model, as well as a decentralized model. Brazil is an exciting geography with a huge population, as well as opportunities to serve the broader Latin American market. On the business development front, we have continued our business development momentum, setting up a total of 31 logos for the first nine months of 2022, up 55% against the 20 we signed back in the first nine months of 2021. It was a quarter where we focused on executing our delivering for our signed logos, and we launched a total of 12 clients in Q3. Our client count now stands at 72 as of 30 September 2022, compared to 60 as of 30 June 2022. Compared to a year ago, the client count is now 50% higher. Now I'll hand over to Mr. Ching to cover the financials in detail, as well as to provide an update on the guidance.