Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries TDCX Reports Strong Increase in Q2 2022 Earnings Year-on-Year Through Focus on Quality Growth; Reiterates 2022 Guidance By: TDCX INC. via Business Wire August 24, 2022 at 06:37 AM EDT TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), an award-winning digital customer experience (CX) solutions provider for technology and blue-chip companies, today announced its unaudited financial results for the second quarter ended June 30, 2022. Second Quarter 2022 Financial Highlights Total Revenue of US$116.6 million, up 23.3% year-on-year Profit for the period was US$19.3 million, up 19.6% year-on-year Adjusted Net Income4 of US$21.8 million, up 35.5% year-on-year Adjusted EBITDA1,3 of US$36.1 million, up 23.0% year-on-year Q2 2022 Adjusted EBITDA margin1,3 of 31.0%, compared with 31.1% for Q2 2021 Year-to-date Net Cash from Operating Activities of US$76.1 million, up 98.0% year-on-year Mr. Laurent Junique, Chief Executive Officer and Founder of TDCX, said, “Southeast Asia’s fundamentals remain attractive to companies seeking long term growth. Given our established network, local market expertise and robust talent pool, we continue to attract and to support clients in realizing their growth ambitions in this region. “We continue to see our business development efforts take flight, adding 25 new logos since the start of the year. Among our new clients are two Southeast Asian market leaders, specifically a leading regional airline and one of the region’s largest integrated car e-commerce platforms. Such logo wins reflect our strengths in this region and our deep sector expertise.” (US$ million, except for %)2 Q2 2021 Q2 2022 % Change Revenue 94.5 116.6 +23.3% Profit for the period 16.1 19.3 +19.6% Adjusted Net Income4 16.1 21.8 +35.5% Adjusted EBITDA1,3 29.3 36.1 +23.0% Adjusted EBITDA Margins1,3 (%) 31.1% 31.0% Business Highlights Strong Client Additions Signed up 25 new logos since the start of the year, more than triple the 8 logos in H1 2021 New logo wins in Q2 2022 include a leading regional airline, as well as one of Southeast Asia’s largest integrated car e-commerce platforms 60 clients with campaigns that have been launched as of June 30, 2022, a 40% increase as compared with 43 launched clients as of June 30, 2021 Revenue contribution from new economy5 clients stood at 93% for H1 2022 Full Year 2022 Outlook Reiterated For the full year 2022, TDCX expects its financial results to be: 2022 Outlook Revenue (in millions) S$650m to S$675m6 (unchanged) Revenue growth (YoY) Range: 17.1% to 21.6% (unchanged) Adjusted EBITDA margin1,3 Approximately 30.0% to 32.0% (unchanged) _______________________________ 1 Adjusted EBITDA or Adjusted EBITDA margins are supplemental non-IFRS financial measures and should not be considered in isolation or as a substitute for financial results reported under IFRS (see "Reconciliations of non-IFRS financial measures to the nearest comparable IFRS measures" in the Form 6-K or presentation slides for more details). 2 FX rate of US$1 = S$1.3918 assumed in converting financials from SG dollar to US dollar. 3 Adjusted EBITDA represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. 4 “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. 5 “New economy” refers to high growth industries that are on the cutting edge of digital technology and are the driving forces of economic growth. 6 Full year 2022 Outlook remains unchanged in Singapore dollars. This equates to US$467m to US$485m, using the FX rate of US$1 = S$1.3918, being the approximate rate in effect as of June 30, 2022. Previously, this was US$480m to US$499m, using the FX rate of US$1 = S$1.3534m, being the approximate rate in effect as of March 31, 2022. Webcast and Conference Call Information The TDCX senior management will host a conference call to discuss the second quarter 2022 unaudited financial results. A live webcast of this conference call will be available on TDCX’s website. Access information on the conference call and webcast is as follows: Date and time: August 24, 2022, 8:00 AM (U.S. Eastern Time) August 24, 2022, 8:00 PM (Singapore / Hong Kong Time) Webcast link: https://webinars.on24.com/q4/TDCX_Q2_2022 Dial in numbers: USA Toll Free: +1 855 2656958 UK Toll Free +44 0 800 0156371 Singapore: +65 3158 0246 Hong Kong: +852 5808 0984 International: +1 718 7058796 A replay of the conference call will be available at TDCX’s investor relations website (investors.tdcx.com). An archived webcast will be available at the same link above. About TDCX INC. Singapore-headquartered TDCX provides transformative digital CX solutions, enabling world-leading and disruptive brands to acquire new customers, to build customer loyalty and to protect their online communities. TDCX helps clients achieve their customer experience aspirations by harnessing technology, human intelligence and its global footprint. It serves clients in fintech, gaming, technology, home sharing and travel, digital advertising and social media, streaming and e-commerce. TDCX’s expertise and strong footprint in Asia has made it a trusted partner for clients, particularly high-growth, new economy companies, looking to tap the region’s growth potential. TDCX’s commitment to delivering positive outcomes for our clients extends to its role as a responsible corporate citizen. Its Corporate Social Responsibility program focuses on positively transforming the lives of its people, its communities and the environment. TDCX employs more than 16,000 employees across 26 campuses globally, specifically Singapore, Malaysia, Thailand, Philippines, Mainland China, Hong Kong, South Korea, Japan, India, Romania, Spain and Colombia. For more information, please visit www.tdcx.com. Convenience Translation The Company’s financial information is stated in Singapore dollars, the legal currency of Singapore. Unless otherwise noted, all translations from Singapore dollars to U.S. dollars and from U.S. dollars to Singapore dollars in this press release were made at a rate of S$1.3918 to US$1.00, the approximate rate in effect as of June 30, 2022. We make no representation that any Singapore dollar or U.S. dollar amount could have been, or could be, converted into U.S. dollars or Singapore dollar, as the case may be, at any particular rate, the rate stated herein, or at all. Non-IFRS Financial Measure To supplement our consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the following non-IFRS financial measure to help evaluate our operating performance: “EBITDA” represents profit for the period before interest expense, interest income, income tax expense and depreciation expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. We believe that EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin helps us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects. “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. The above non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or construed as an alternative to revenue, net income, or any other measure of performance or as an indicator of our operating performance. The non-IFRS financial measures presented here may not be comparable to similarly titled measures presented by other companies because other companies may calculate similarly titled measures differently. For more information on the non-IFRS financial measures, please see the form 6-K section captioned “Non-IFRS Financial Measures” or the presentation slides. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Among other things, the outlook for the full year, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the performance of TDCX’s largest clients; the successful implementation of its business strategy; its ability to compete effectively; its ability to maintain its pricing, control costs or continue to grow its business; the effects of the novel coronavirus (COVID-19) on its business; the continued service of its founder and certain of its key employees and management; its ability to attract and retain enough highly trained employees; its exposure to various risks in Southeast Asia; its contractual relationship with key clients; clients and prospective clients’ spending on omnichannel CX solutions; its spending on employee salaries and benefits expenses; and its involvement in any disputes, legal, regulatory, and other proceedings arising out of its business operations. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the three months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue 116,580 162,256 131,565 Employee benefits expense (75,704 ) (105,365 ) (80,672 ) Depreciation expense (6,679 ) (9,296 ) (9,899 ) Rental and maintenance expense (1,707 ) (2,376 ) (2,839 ) Recruitment expense (2,541 ) (3,536 ) (2,534 ) Transport and travelling expense (284 ) (395 ) (305 ) Telecommunication and technology expense (2,042 ) (2,842 ) (2,053 ) Interest expense (338 ) (471 ) (2,826 ) Other operating expense (1,450 ) (2,018 ) (3,341 ) Share of profit from an associate 40 56 18 Interest income 303 422 90 Other operating income 653 909 1,017 Profit before income tax 26,831 37,344 28,221 Income tax expenses (7,576 ) (10,544 ) (5,805 ) Profit for the period 19,255 26,800 22,416 Item that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 7,001 9,743 (1,041 ) Total comprehensive income for the period 26,256 36,543 21,375 Profit attributable to: - Owners of TDCX Inc. 19,254 26,799 22,416 - Non-controlling interests 1 1 — 19,255 26,800 22,416 Total comprehensive income attributable to: - Owners of TDCX Inc. 26,255 36,542 21,375 - Non-controlling interests 1 1 — 26,256 36,543 21,375 Basic earnings per share (in US$ or S$) (1) 0.13 0.19 0.18 Diluted earnings per share (in US$ or S$) (1) 0.13 0.19 0.18 _______________________________ (1) Basic and diluted earnings per share For the three months ended June 30, 2022 2021 Weighted average number of ordinary shares for the purposes of basic earnings per share 145,596,995 123,500,000 Weighted average number of ordinary shares for the purposes of diluted earnings per share 145,596,995 123,500,000 The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. Comparison of the Three Months Ended June 30, 2022 and 2021 Revenue. Our revenues increased by 23.3% to S$162.3 million (US$116.6 million) for the three months ended June 30, 2022 from S$131.6 million for the three months ended June 30, 2021 primarily due to a 19.1% increase in revenue from providing omnichannel Customer Experience (“CX”) solutions, and a 54.0% increase in revenues from providing sales and digital marketing services. Our revenues from omnichannel CX solutions increased by 19.1% to S$95.3 million (US$68.5 million) from S$80.0 million for the same period of 2021 primarily due to higher business volumes driven by the expansion of existing campaigns by clients in the fintech and technology verticals. In addition, business volumes of our top two travel and hospitality vertical clients benefited from the gradual recovery from the impact of the COVID-19 pandemic, although the recovery has not reached pre-pandemic levels. Our revenues from sales and digital marketing services increased by 54.0% to S$39.1 million (US$28.1 million) from S$25.4 million for the same period of 2021 primarily due to the expansion of existing campaigns for our key clients in the digital advertising and media vertical. Our revenues from content, trust and safety services increased by 5.9% to S$27.0 million (US$19.4 million) from S$25.5 million for the same period of 2021 primarily due to an increase in business volumes from a client in the travel and hospitality vertical. Our revenues from our other service fees increased by 24.5% to S$0.9 million (US$0.6 million) from S$0.7 million for the same period of 2021 primarily due to higher business volumes from existing clients and higher contribution from new clients. The following table sets forth our service provided by amount for the three months ended June 30, 2022 and 2021. For the three months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue by service Omnichannel CX solutions * 68,490 95,325 80,005 Sales and digital marketing 28,061 39,055 25,357 Content, trust and safety * 19,384 26,979 25,482 Other service fees * # 645 897 721 Total revenue 116,580 162,256 131,565 * In the second quarter of 2022, we have renamed our “content monitoring and moderation” services as “content, trust and safety” services and reclassified certain of our revenues from our omnichannel CX solution services and our other service fees under content, trust and safety services. Accordingly, we reclassified our segment revenues for all periods presented herein on a comparable basis except where otherwise noted. See “Segment Reclassification” below. # Other service fees comprise revenue from other business process services and revenue from other services. Employee Benefits Expense. Our employee benefits expense increased by 30.6% to S$105.4 million (US$75.7 million) from S$80.7 million for the same period of 2021 due to higher employee count, employee compensation adjustments pursuant to cost of living inflation and the dynamics of the talent markets that we operate in, and share-based payment expense arising from the implementation of our performance share plan in November 2021. Our average number of employees in the second quarter of 2022 increased 23.3% compared to the same period of 2021 as a result of business volumes expansion of current campaigns over the course of 2021 and first quarter of 2022, and staffing requirements of new campaign launches in the second half of 2021 and first quarter of 2022. Depreciation Expense. Our depreciation expense decreased by 6.1% to S$9.3 million (US$6.7 million) from S$9.9 million for the same period of 2021 primarily due to certain office renovation assets in Singapore, Thailand and Philippines being fully depreciated during the period. These were partially offset by depreciation on capital expenditures invested in new and expansion capacities to support the growth of our business. Rental and Maintenance Expense. Our rental and maintenance expense decreased by 16.3% to S$2.4 million (US$1.7 million) from S$2.8 million for the same period of 2021 primarily due to the termination of certain co-working space memberships in Japan, pursuant to the relocation of our operations to leased and fitted-out office spaces. Recruitment Expense. Our recruitment expense increased by 39.5% to S$3.5 million (US$2.5 million) from S$2.5 million for the same period of 2021 primarily due to accelerated hiring activities contributing to higher hiring fees, and increased expenses related to immigration, work permits and onboarding of foreign nationality employees induced by COVID-19-related procedural regulations implemented by governmental authorities of respective countries to support the expansion of campaigns in our Malaysia, Thailand and Japan offices. Transport and Travelling Expense. Our transport and travelling expense increased by 29.5% to S$0.4 million (US$0.3 million) from S$0.3 million for the same period of 2021 primarily due to more business travel following the opening of borders in many countries. Telecommunication and Technology Expense. Our telecommunication and technology expense increased by 38.4% to S$2.8 million (US$2.0 million) from S$2.1 million for the same period of 2021 primarily in tandem with business volume expansion of our existing campaigns and new projects’ launches. Interest Expense. Our interest expense decreased by 83.3% to S$0.5 million (US$0.3 million) from S$2.8 million for the same period of 2021 primarily due to reduced bank borrowings during the period. Other Operating Expense. Our other operating expense decreased by 39.6% to S$2.0 million (US$1.5 million) from S$3.3 million for the same period of 2021 primarily due to higher foreign exchange gains recognized, offset by increased legal and professional fees. Share of Profit from an Associate. Our share of profit from an associate was insignificant for the three months ended June 30, 2022 and 2021. Other Operating Income. Our other operating income decreased by 10.6% to S$0.9 million (US$0.7 million) from S$1.0 million for the same period of 2021 primarily due to a decrease in government grants received by our Singapore subsidiaries in relation to the COVID-19 pandemic. Profit Before Income Tax. As a result of the foregoing, our profit before income tax increased by 32.3% to S$37.3 million (US$26.8 million) from S$28.2 million for the corresponding period of 2021. Income Tax Expenses. Our income tax expenses increased by 81.6% to S$10.5 million (US$7.6 million) from S$5.8 million for the same period of 2021. The higher income tax expenses were mainly due to higher taxes from our subsidiary in Malaysia as a result of a one-off “prosperity tax” enacted by the local government for fiscal 2022, suspension of income tax holiday in our subsidiary in the Philippines and higher taxable profits of our subsidiaries in the Philippines and Thailand. Profit for the Period. As a result of the foregoing, our profit for the period increased by 19.6% to S$26.8 million (US$19.3 million) from S$22.4 million for the same period of 2021. Share Repurchase Program On March 14, 2022, we announced that the board of directors had approved a US$30.0 million share repurchase program. The share repurchase program commenced on March 14, 2022. The repurchase program has no expiration date and may be suspended, modified or discontinued at any time without prior notice. We expect to fund repurchases under this program with our existing cash balance. Our proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations and its insider trading policy. Our board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. We did not make any repurchase of ADSs in the year ended December 31, 2021. From March 14, 2022 to March 31, 2022, we purchased 106,200 ADSs at a cost of US$1.3 million under our share repurchase program. From April 1, 2022 to June 30, 2022, we purchased 587,123 ADSs at a cost of US$5.5 million. From July 1, 2022 to August 22, 2022, we purchased 352,489 ADSs at a cost of US$3.0 million. Segment Reclassification In the second quarter of 2022, we have renamed our “content monitoring and moderation” services as “content, trust and safety” services. The change reflects the industry’s broader view that content moderation services are part of a larger group of services that includes other trust and safety related services and helps enhance our ability to track our performance. Our content, trust and safety services are comprised of content moderating and monitoring services, trust and safety services and data annotation services. Content moderation and monitoring service involves the review of content submission for violation of terms of use or non-compliant with the specifications and guidelines provided by our clients. Trust and safety services entails our dedicated and trained resources in assisting our clients to verify, detect and prevent incidences fraudulent use of clients’ tools so as to promote users’ confidence in using our clients’ platforms and tools. Data annotation services provided by us serves to support the development of our clients’ efforts in machine learning and automation initiatives and projects. Revenue for trust and safety related services that were previously classified under omnichannel CX solutions and other service fees respectively, which can currently be reasonably identified and quantified, will now be reported as content, trust and safety services. The following table sets forth our services provided by amount for the three months ended March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022. Before the change For the three months ended S$ ’000 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Revenue by service Omnichannel CX solutions 93,474 96,074 92,820 82,886 74,802 Sales and digital marketing 35,710 34,632 32,371 25,377 22,338 Content monitoring and moderation 20,917 21,660 21,184 21,382 21,664 Other service fees# 2,322 2,397 2,422 1,920 1,268 Total revenue 152,423 154,763 148,797 131,565 120,072 After the change For the three months ended S$ ’000 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Revenue by service Omnichannel CX solutions 89,505 92,496 89,320 79,984 72,247 Sales and digital marketing 35,710 34,632 32,371 25,377 22,338 Content, trust and safety 26,408 26,822 26,377 25,482 24,857 Other service fees# 800 813 729 722 630 Total revenue 152,423 154,763 148,797 131,565 120,072 # Other service fees comprise revenue from other business process services and revenue from other services. NON-IFRS FINANCIAL MEASURES EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS are non-IFRS financial measures. TDCX monitors EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS because they assist the Company in comparing its operating performance on a consistent basis by removing the impact of items not directly resulting from its core operations. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin “EBITDA” represents profit for the period before interest expense, interest income, income tax expense, and depreciation expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation expenses, and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. For the three months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Revenue 116,580 162,256 — 131,565 — Profit for the period and net profit margin 19,255 26,800 16.5% 22,416 17.0% Adjustments for: Depreciation expense 6,679 9,296 5.7% 9,899 7.5% Income tax expenses 7,576 10,544 6.5% 5,805 4.4% Interest expense 338 471 0.3% 2,826 2.1% Interest income (303) (422) (0.3%) (90) (0.1%) EBITDA and EBITDA margin 33,545 46,689 28.8% 40,856 31.1% Adjustment: Equity-settled share-based payment expense 2,574 3,582 2.2% — — Adjusted EBITDA and Adjusted EBITDA margin 36,119 50,271 31.0% 40,856 31.1% For the six months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Revenue 226,095 314,679 — 251,637 — Profit for the period and net profit margin 35,210 49,005 15.6% 44,763 17.8% Adjustments for: Depreciation expense 13,545 18,852 6.0% 19,839 7.9% Income tax expenses 13,147 18,298 5.8% 10,034 4.0% Interest expense 688 958 0.3% 3,747 1.5% Interest income (495) (689) (0.2%) (174) (0.1%) EBITDA and EBITDA margin 62,095 86,424 27.5% 78,209 31.1% Adjustment: Equity-settled share-based payment expense 8,273 11,515 3.7% — — Adjusted EBITDA and Adjusted EBITDA margin 70,368 97,939 31.1% 78,209 31.1% Adjusted Net Income and Adjusted Net Income margin “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. For the three months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Profit for the period and net profit margin 19,255 26,800 16.5% 22,416 17.0% Adjustment for: Equity-settled share-based payment expense 2,574 3,582 2.2% — — Adjusted Net Income and Adjusted Net Income margin 21,829 30,382 18.7% 22,416 17.0% For the six months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Profit for the period and net profit margin 35,210 49,005 15.6% 44,763 17.8% Adjustment for: Equity-settled share-based payment expense 8,273 11,515 3.7% — — Adjusted Net Income and Adjusted Net Income margin 43,483 60,520 19.2% 44,763 17.8% Adjusted EPS “Adjusted EPS” represents earnings available to shareholders excluding the impact of equity-settled share-based payment expense. Adjusted EPS is calculated as earnings available to shareholders excluding the impact of equity-settled share-based payment expense divided by our diluted weighted-average number of shares outstanding. For the three months ended June 30, 2022 2021 Amount Per Share Amount Per Share Amount Per Share US$’000 US$ S$’000 S$ S$’000 S$ Earnings available to shareholders and EPS 19,254 0.13 26,799 0.19 22,416 0.18 Adjustments for: Equity-settled share-based payment expense 2,574 0.02 3,582 0.02 — — Earnings available to shareholders after adjustments and Adjusted EPS 21,828 0.15 30,381 0.21 22,416 0.18 For the six months ended June 30, 2022 2021 Amount Per Share Amount Per Share Amount Per Share US$’000 US$ S$’000 S$ S$’000 S$ Earnings available to shareholders and EPS 35,209 0.24 49,004 0.34 44,763 0.36 Adjustments for: Equity-settled share-based payment expense 8,273 0.06 11,515 0.08 — — Earnings available to shareholders after adjustments and Adjusted EPS 43,482 0.30 60,519 0.42 44,763 0.36 The Company believes that non-IFRS financial measures such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS help us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects. While the Company believes that the non-IFRS financial measures provide useful information to investors in understanding and evaluating the Company’s results of operations in the same manner as its management, the Company’s use of non-IFRS financial measures have limitations as analytical tools and you should not consider these in isolation or as a substitute for analysis of the Company’s results of operations or financial condition as reported under IFRS. TDCX’s non-IFRS financial measures do not reflect all items of income and expense that affect the Company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-IFRS measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the company’s financial information in its entirety and not rely on any single financial measure. The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue 226,095 314,679 251,637 Employee benefits expense (150,320 ) (209,215 ) (155,426 ) Depreciation expense (13,545 ) (18,852 ) (19,839 ) Rental and maintenance expense (3,335 ) (4,642 ) (5,677 ) Recruitment expense (4,559 ) (6,345 ) (4,515 ) Transport and travelling expense (420 ) (585 ) (533 ) Telecommunication and technology expense (3,931 ) (5,471 ) (3,920 ) Interest expense (688 ) (958 ) (3,747 ) Other operating expense (3,285 ) (4,572 ) (6,144 ) Share of profit from an associate 53 74 43 Interest income 495 689 174 Other operating income 1,797 2,501 2,744 Profit before income tax 48,357 67,303 54,797 Income tax expenses (13,147 ) (18,298 ) (10,034 ) Profit for the period 35,210 49,005 44,763 Item that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 6,199 8,627 (1,153 ) Total comprehensive income for the period 41,409 57,632 43,610 Profit attributable to: - Owners of the Group 35,209 49,004 44,763 - Non-controlling interests 1 1 — 35,210 49,005 44,763 Total comprehensive income attributable to: - Owners of the Group 41,408 57,631 43,610 - Non-controlling interests 1 1 — 41,409 57,632 43,610 Basic earnings per share (in US$ or S$) (1) 0.24 0.34 0.36 Diluted earnings per share (in US$ or S$) (1) 0.24 0.34 0.36 ________________________________ (1) Basic and diluted earnings per share For the six months ended June 30, 2022 2021 Weighted average number of ordinary shares for the purposes of basic earnings per share 145,670,692 123,500,000 Weighted average number of ordinary shares for the purposes of diluted earnings per share 145,670,692 123,500,000 The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of June 30, 2022 As of December 31, 2021 US$’000 S$’000 S$’000 ASSETS Current assets Cash and cash equivalents 276,329 384,595 313,147 Fixed and pledged deposits 4,880 6,792 8,860 Trade receivables 48,786 67,900 92,561 Contract assets 40,142 55,869 49,365 Other receivables 10,412 14,492 13,220 Financial assets measured at fair value through profit or loss 19,436 27,051 23,983 Income tax receivable 37 51 17 Total current assets 400,022 556,750 501,153 Non-current assets Pledged deposits 432 601 456 Other receivables 3,366 4,685 4,771 Plant and equipment 25,312 35,229 39,709 Right-of-use assets 23,219 32,316 33,160 Deferred tax assets 1,556 2,166 1,943 Investment in an associate 282 392 318 Total non-current assets 54,167 75,389 80,357 Total assets 454,189 632,139 581,510 LIABILITIES AND EQUITY Current liabilities Other payables 32,560 45,317 39,096 Bank loans 2,935 4,085 13,847 Lease liabilities 11,122 15,480 14,550 Provision for reinstatement cost 2,546 3,544 3,663 Income tax payable 14,350 19,973 14,715 Total current liabilities 63,513 88,399 85,871 Non-current liabilities Bank loans - - 2,963 Lease liabilities 14,159 19,707 21,361 Provision for reinstatement cost 2,962 4,122 4,384 Defined benefit obligation 1,481 2,061 1,718 Deferred tax liabilities 1,367 1,902 1,507 Total non-current liabilities 19,969 27,792 31,933 Capital, reserves and non-controlling interests Share capital 14 19 19 Reserves 165,569 230,437 227,181 Retained earnings 205,109 285,471 236,486 Equity attributable to owners of the Group 370,692 515,927 463,686 Non-controlling interests 15 21 20 Total equity 370,707 515,948 463,706 Total liabilities and equity 454,189 632,139 581,510 The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of financial position above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Operating activities Profit before income tax 48,357 67,303 54,797 Adjustments for: Depreciation expense 13,545 18,852 19,839 Gain on early termination of right-of-use assets (1 ) (1 ) (85 ) Equity-settled share-based payment expense 8,273 11,515 — Provision for reinstatement cost (31 ) (43 ) — Bank loan transaction cost 20 28 246 Interest income (495 ) (689 ) (174 ) Interest expense 688 958 3,747 Retirement benefit service cost 274 382 313 (Gain) / Loss on disposal of plant and equipment (1 ) (1 ) 13 Share of profit from an associate (53 ) (74 ) (43 ) Operating cash flows before movements in working capital 70,576 98,230 78,653 Trade receivables 16,215 22,568 (10,194 ) Contract assets (5,813 ) (8,091 ) (4,786 ) Other receivables (2,926 ) (4,072 ) 1,170 Other payables 6,747 9,391 181 Cash generated from operations 84,799 118,026 65,024 Interest received 495 689 174 Income tax paid (9,181 ) (12,778 ) (11,697 ) Income tax refunded — — 4 Net cash from operating activities 76,113 105,937 53,505 Investing activities Purchase of plant and equipment (5,004 ) (6,965 ) (16,054 ) Proceeds from sales of plant and equipment 1 2 47 Decrease in fixed deposits 1,244 1,732 — Increase in pledged deposits — — (12 ) Dividend income from an associate — — 13 Net cash used in investing activities (3,759 ) (5,231 ) (16,006 ) Financing activities Dividends paid — — (177 ) Drawdown of bank loan — — 252,651 Distribution to founder — — (252,032 ) Repayment of lease liabilities (6,734 ) (9,373 ) (9,915 ) Interest paid (135 ) (188 ) (2,673 ) Repayment of bank loan (9,136 ) (12,716 ) (3,410 ) Repurchase of American Depositary Shares (6,729 ) (9,366 ) — Proceeds from issuance of shares — — 16 Net cash used in financing activities (22,734 ) (31,643 ) (15,540 ) Net increase in cash and cash equivalents 49,620 69,063 21,959 Effect of foreign exchange rate changes on cash held in foreign currencies 1,715 2,385 (604 ) Cash and cash equivalents at beginning of period 224,994 313,147 59,807 Cash and cash equivalents at end of period 276,329 384,595 81,162 The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of cash flows above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. View source version on businesswire.com: https://www.businesswire.com/news/home/20220823005425/en/Contacts For enquiries, please contact: Investors / Analysts: Jason Lim lim.jason@tdcx.com Media: Eunice Seow eunice.seow@tdcx.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
TDCX Reports Strong Increase in Q2 2022 Earnings Year-on-Year Through Focus on Quality Growth; Reiterates 2022 Guidance By: TDCX INC. via Business Wire August 24, 2022 at 06:37 AM EDT TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), an award-winning digital customer experience (CX) solutions provider for technology and blue-chip companies, today announced its unaudited financial results for the second quarter ended June 30, 2022. Second Quarter 2022 Financial Highlights Total Revenue of US$116.6 million, up 23.3% year-on-year Profit for the period was US$19.3 million, up 19.6% year-on-year Adjusted Net Income4 of US$21.8 million, up 35.5% year-on-year Adjusted EBITDA1,3 of US$36.1 million, up 23.0% year-on-year Q2 2022 Adjusted EBITDA margin1,3 of 31.0%, compared with 31.1% for Q2 2021 Year-to-date Net Cash from Operating Activities of US$76.1 million, up 98.0% year-on-year Mr. Laurent Junique, Chief Executive Officer and Founder of TDCX, said, “Southeast Asia’s fundamentals remain attractive to companies seeking long term growth. Given our established network, local market expertise and robust talent pool, we continue to attract and to support clients in realizing their growth ambitions in this region. “We continue to see our business development efforts take flight, adding 25 new logos since the start of the year. Among our new clients are two Southeast Asian market leaders, specifically a leading regional airline and one of the region’s largest integrated car e-commerce platforms. Such logo wins reflect our strengths in this region and our deep sector expertise.” (US$ million, except for %)2 Q2 2021 Q2 2022 % Change Revenue 94.5 116.6 +23.3% Profit for the period 16.1 19.3 +19.6% Adjusted Net Income4 16.1 21.8 +35.5% Adjusted EBITDA1,3 29.3 36.1 +23.0% Adjusted EBITDA Margins1,3 (%) 31.1% 31.0% Business Highlights Strong Client Additions Signed up 25 new logos since the start of the year, more than triple the 8 logos in H1 2021 New logo wins in Q2 2022 include a leading regional airline, as well as one of Southeast Asia’s largest integrated car e-commerce platforms 60 clients with campaigns that have been launched as of June 30, 2022, a 40% increase as compared with 43 launched clients as of June 30, 2021 Revenue contribution from new economy5 clients stood at 93% for H1 2022 Full Year 2022 Outlook Reiterated For the full year 2022, TDCX expects its financial results to be: 2022 Outlook Revenue (in millions) S$650m to S$675m6 (unchanged) Revenue growth (YoY) Range: 17.1% to 21.6% (unchanged) Adjusted EBITDA margin1,3 Approximately 30.0% to 32.0% (unchanged) _______________________________ 1 Adjusted EBITDA or Adjusted EBITDA margins are supplemental non-IFRS financial measures and should not be considered in isolation or as a substitute for financial results reported under IFRS (see "Reconciliations of non-IFRS financial measures to the nearest comparable IFRS measures" in the Form 6-K or presentation slides for more details). 2 FX rate of US$1 = S$1.3918 assumed in converting financials from SG dollar to US dollar. 3 Adjusted EBITDA represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. 4 “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. 5 “New economy” refers to high growth industries that are on the cutting edge of digital technology and are the driving forces of economic growth. 6 Full year 2022 Outlook remains unchanged in Singapore dollars. This equates to US$467m to US$485m, using the FX rate of US$1 = S$1.3918, being the approximate rate in effect as of June 30, 2022. Previously, this was US$480m to US$499m, using the FX rate of US$1 = S$1.3534m, being the approximate rate in effect as of March 31, 2022. Webcast and Conference Call Information The TDCX senior management will host a conference call to discuss the second quarter 2022 unaudited financial results. A live webcast of this conference call will be available on TDCX’s website. Access information on the conference call and webcast is as follows: Date and time: August 24, 2022, 8:00 AM (U.S. Eastern Time) August 24, 2022, 8:00 PM (Singapore / Hong Kong Time) Webcast link: https://webinars.on24.com/q4/TDCX_Q2_2022 Dial in numbers: USA Toll Free: +1 855 2656958 UK Toll Free +44 0 800 0156371 Singapore: +65 3158 0246 Hong Kong: +852 5808 0984 International: +1 718 7058796 A replay of the conference call will be available at TDCX’s investor relations website (investors.tdcx.com). An archived webcast will be available at the same link above. About TDCX INC. Singapore-headquartered TDCX provides transformative digital CX solutions, enabling world-leading and disruptive brands to acquire new customers, to build customer loyalty and to protect their online communities. TDCX helps clients achieve their customer experience aspirations by harnessing technology, human intelligence and its global footprint. It serves clients in fintech, gaming, technology, home sharing and travel, digital advertising and social media, streaming and e-commerce. TDCX’s expertise and strong footprint in Asia has made it a trusted partner for clients, particularly high-growth, new economy companies, looking to tap the region’s growth potential. TDCX’s commitment to delivering positive outcomes for our clients extends to its role as a responsible corporate citizen. Its Corporate Social Responsibility program focuses on positively transforming the lives of its people, its communities and the environment. TDCX employs more than 16,000 employees across 26 campuses globally, specifically Singapore, Malaysia, Thailand, Philippines, Mainland China, Hong Kong, South Korea, Japan, India, Romania, Spain and Colombia. For more information, please visit www.tdcx.com. Convenience Translation The Company’s financial information is stated in Singapore dollars, the legal currency of Singapore. Unless otherwise noted, all translations from Singapore dollars to U.S. dollars and from U.S. dollars to Singapore dollars in this press release were made at a rate of S$1.3918 to US$1.00, the approximate rate in effect as of June 30, 2022. We make no representation that any Singapore dollar or U.S. dollar amount could have been, or could be, converted into U.S. dollars or Singapore dollar, as the case may be, at any particular rate, the rate stated herein, or at all. Non-IFRS Financial Measure To supplement our consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the following non-IFRS financial measure to help evaluate our operating performance: “EBITDA” represents profit for the period before interest expense, interest income, income tax expense and depreciation expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. We believe that EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin helps us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects. “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. The above non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or construed as an alternative to revenue, net income, or any other measure of performance or as an indicator of our operating performance. The non-IFRS financial measures presented here may not be comparable to similarly titled measures presented by other companies because other companies may calculate similarly titled measures differently. For more information on the non-IFRS financial measures, please see the form 6-K section captioned “Non-IFRS Financial Measures” or the presentation slides. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Among other things, the outlook for the full year, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the performance of TDCX’s largest clients; the successful implementation of its business strategy; its ability to compete effectively; its ability to maintain its pricing, control costs or continue to grow its business; the effects of the novel coronavirus (COVID-19) on its business; the continued service of its founder and certain of its key employees and management; its ability to attract and retain enough highly trained employees; its exposure to various risks in Southeast Asia; its contractual relationship with key clients; clients and prospective clients’ spending on omnichannel CX solutions; its spending on employee salaries and benefits expenses; and its involvement in any disputes, legal, regulatory, and other proceedings arising out of its business operations. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the three months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue 116,580 162,256 131,565 Employee benefits expense (75,704 ) (105,365 ) (80,672 ) Depreciation expense (6,679 ) (9,296 ) (9,899 ) Rental and maintenance expense (1,707 ) (2,376 ) (2,839 ) Recruitment expense (2,541 ) (3,536 ) (2,534 ) Transport and travelling expense (284 ) (395 ) (305 ) Telecommunication and technology expense (2,042 ) (2,842 ) (2,053 ) Interest expense (338 ) (471 ) (2,826 ) Other operating expense (1,450 ) (2,018 ) (3,341 ) Share of profit from an associate 40 56 18 Interest income 303 422 90 Other operating income 653 909 1,017 Profit before income tax 26,831 37,344 28,221 Income tax expenses (7,576 ) (10,544 ) (5,805 ) Profit for the period 19,255 26,800 22,416 Item that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 7,001 9,743 (1,041 ) Total comprehensive income for the period 26,256 36,543 21,375 Profit attributable to: - Owners of TDCX Inc. 19,254 26,799 22,416 - Non-controlling interests 1 1 — 19,255 26,800 22,416 Total comprehensive income attributable to: - Owners of TDCX Inc. 26,255 36,542 21,375 - Non-controlling interests 1 1 — 26,256 36,543 21,375 Basic earnings per share (in US$ or S$) (1) 0.13 0.19 0.18 Diluted earnings per share (in US$ or S$) (1) 0.13 0.19 0.18 _______________________________ (1) Basic and diluted earnings per share For the three months ended June 30, 2022 2021 Weighted average number of ordinary shares for the purposes of basic earnings per share 145,596,995 123,500,000 Weighted average number of ordinary shares for the purposes of diluted earnings per share 145,596,995 123,500,000 The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. Comparison of the Three Months Ended June 30, 2022 and 2021 Revenue. Our revenues increased by 23.3% to S$162.3 million (US$116.6 million) for the three months ended June 30, 2022 from S$131.6 million for the three months ended June 30, 2021 primarily due to a 19.1% increase in revenue from providing omnichannel Customer Experience (“CX”) solutions, and a 54.0% increase in revenues from providing sales and digital marketing services. Our revenues from omnichannel CX solutions increased by 19.1% to S$95.3 million (US$68.5 million) from S$80.0 million for the same period of 2021 primarily due to higher business volumes driven by the expansion of existing campaigns by clients in the fintech and technology verticals. In addition, business volumes of our top two travel and hospitality vertical clients benefited from the gradual recovery from the impact of the COVID-19 pandemic, although the recovery has not reached pre-pandemic levels. Our revenues from sales and digital marketing services increased by 54.0% to S$39.1 million (US$28.1 million) from S$25.4 million for the same period of 2021 primarily due to the expansion of existing campaigns for our key clients in the digital advertising and media vertical. Our revenues from content, trust and safety services increased by 5.9% to S$27.0 million (US$19.4 million) from S$25.5 million for the same period of 2021 primarily due to an increase in business volumes from a client in the travel and hospitality vertical. Our revenues from our other service fees increased by 24.5% to S$0.9 million (US$0.6 million) from S$0.7 million for the same period of 2021 primarily due to higher business volumes from existing clients and higher contribution from new clients. The following table sets forth our service provided by amount for the three months ended June 30, 2022 and 2021. For the three months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue by service Omnichannel CX solutions * 68,490 95,325 80,005 Sales and digital marketing 28,061 39,055 25,357 Content, trust and safety * 19,384 26,979 25,482 Other service fees * # 645 897 721 Total revenue 116,580 162,256 131,565 * In the second quarter of 2022, we have renamed our “content monitoring and moderation” services as “content, trust and safety” services and reclassified certain of our revenues from our omnichannel CX solution services and our other service fees under content, trust and safety services. Accordingly, we reclassified our segment revenues for all periods presented herein on a comparable basis except where otherwise noted. See “Segment Reclassification” below. # Other service fees comprise revenue from other business process services and revenue from other services. Employee Benefits Expense. Our employee benefits expense increased by 30.6% to S$105.4 million (US$75.7 million) from S$80.7 million for the same period of 2021 due to higher employee count, employee compensation adjustments pursuant to cost of living inflation and the dynamics of the talent markets that we operate in, and share-based payment expense arising from the implementation of our performance share plan in November 2021. Our average number of employees in the second quarter of 2022 increased 23.3% compared to the same period of 2021 as a result of business volumes expansion of current campaigns over the course of 2021 and first quarter of 2022, and staffing requirements of new campaign launches in the second half of 2021 and first quarter of 2022. Depreciation Expense. Our depreciation expense decreased by 6.1% to S$9.3 million (US$6.7 million) from S$9.9 million for the same period of 2021 primarily due to certain office renovation assets in Singapore, Thailand and Philippines being fully depreciated during the period. These were partially offset by depreciation on capital expenditures invested in new and expansion capacities to support the growth of our business. Rental and Maintenance Expense. Our rental and maintenance expense decreased by 16.3% to S$2.4 million (US$1.7 million) from S$2.8 million for the same period of 2021 primarily due to the termination of certain co-working space memberships in Japan, pursuant to the relocation of our operations to leased and fitted-out office spaces. Recruitment Expense. Our recruitment expense increased by 39.5% to S$3.5 million (US$2.5 million) from S$2.5 million for the same period of 2021 primarily due to accelerated hiring activities contributing to higher hiring fees, and increased expenses related to immigration, work permits and onboarding of foreign nationality employees induced by COVID-19-related procedural regulations implemented by governmental authorities of respective countries to support the expansion of campaigns in our Malaysia, Thailand and Japan offices. Transport and Travelling Expense. Our transport and travelling expense increased by 29.5% to S$0.4 million (US$0.3 million) from S$0.3 million for the same period of 2021 primarily due to more business travel following the opening of borders in many countries. Telecommunication and Technology Expense. Our telecommunication and technology expense increased by 38.4% to S$2.8 million (US$2.0 million) from S$2.1 million for the same period of 2021 primarily in tandem with business volume expansion of our existing campaigns and new projects’ launches. Interest Expense. Our interest expense decreased by 83.3% to S$0.5 million (US$0.3 million) from S$2.8 million for the same period of 2021 primarily due to reduced bank borrowings during the period. Other Operating Expense. Our other operating expense decreased by 39.6% to S$2.0 million (US$1.5 million) from S$3.3 million for the same period of 2021 primarily due to higher foreign exchange gains recognized, offset by increased legal and professional fees. Share of Profit from an Associate. Our share of profit from an associate was insignificant for the three months ended June 30, 2022 and 2021. Other Operating Income. Our other operating income decreased by 10.6% to S$0.9 million (US$0.7 million) from S$1.0 million for the same period of 2021 primarily due to a decrease in government grants received by our Singapore subsidiaries in relation to the COVID-19 pandemic. Profit Before Income Tax. As a result of the foregoing, our profit before income tax increased by 32.3% to S$37.3 million (US$26.8 million) from S$28.2 million for the corresponding period of 2021. Income Tax Expenses. Our income tax expenses increased by 81.6% to S$10.5 million (US$7.6 million) from S$5.8 million for the same period of 2021. The higher income tax expenses were mainly due to higher taxes from our subsidiary in Malaysia as a result of a one-off “prosperity tax” enacted by the local government for fiscal 2022, suspension of income tax holiday in our subsidiary in the Philippines and higher taxable profits of our subsidiaries in the Philippines and Thailand. Profit for the Period. As a result of the foregoing, our profit for the period increased by 19.6% to S$26.8 million (US$19.3 million) from S$22.4 million for the same period of 2021. Share Repurchase Program On March 14, 2022, we announced that the board of directors had approved a US$30.0 million share repurchase program. The share repurchase program commenced on March 14, 2022. The repurchase program has no expiration date and may be suspended, modified or discontinued at any time without prior notice. We expect to fund repurchases under this program with our existing cash balance. Our proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations and its insider trading policy. Our board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. We did not make any repurchase of ADSs in the year ended December 31, 2021. From March 14, 2022 to March 31, 2022, we purchased 106,200 ADSs at a cost of US$1.3 million under our share repurchase program. From April 1, 2022 to June 30, 2022, we purchased 587,123 ADSs at a cost of US$5.5 million. From July 1, 2022 to August 22, 2022, we purchased 352,489 ADSs at a cost of US$3.0 million. Segment Reclassification In the second quarter of 2022, we have renamed our “content monitoring and moderation” services as “content, trust and safety” services. The change reflects the industry’s broader view that content moderation services are part of a larger group of services that includes other trust and safety related services and helps enhance our ability to track our performance. Our content, trust and safety services are comprised of content moderating and monitoring services, trust and safety services and data annotation services. Content moderation and monitoring service involves the review of content submission for violation of terms of use or non-compliant with the specifications and guidelines provided by our clients. Trust and safety services entails our dedicated and trained resources in assisting our clients to verify, detect and prevent incidences fraudulent use of clients’ tools so as to promote users’ confidence in using our clients’ platforms and tools. Data annotation services provided by us serves to support the development of our clients’ efforts in machine learning and automation initiatives and projects. Revenue for trust and safety related services that were previously classified under omnichannel CX solutions and other service fees respectively, which can currently be reasonably identified and quantified, will now be reported as content, trust and safety services. The following table sets forth our services provided by amount for the three months ended March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022. Before the change For the three months ended S$ ’000 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Revenue by service Omnichannel CX solutions 93,474 96,074 92,820 82,886 74,802 Sales and digital marketing 35,710 34,632 32,371 25,377 22,338 Content monitoring and moderation 20,917 21,660 21,184 21,382 21,664 Other service fees# 2,322 2,397 2,422 1,920 1,268 Total revenue 152,423 154,763 148,797 131,565 120,072 After the change For the three months ended S$ ’000 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Revenue by service Omnichannel CX solutions 89,505 92,496 89,320 79,984 72,247 Sales and digital marketing 35,710 34,632 32,371 25,377 22,338 Content, trust and safety 26,408 26,822 26,377 25,482 24,857 Other service fees# 800 813 729 722 630 Total revenue 152,423 154,763 148,797 131,565 120,072 # Other service fees comprise revenue from other business process services and revenue from other services. NON-IFRS FINANCIAL MEASURES EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS are non-IFRS financial measures. TDCX monitors EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS because they assist the Company in comparing its operating performance on a consistent basis by removing the impact of items not directly resulting from its core operations. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin “EBITDA” represents profit for the period before interest expense, interest income, income tax expense, and depreciation expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation expenses, and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. For the three months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Revenue 116,580 162,256 — 131,565 — Profit for the period and net profit margin 19,255 26,800 16.5% 22,416 17.0% Adjustments for: Depreciation expense 6,679 9,296 5.7% 9,899 7.5% Income tax expenses 7,576 10,544 6.5% 5,805 4.4% Interest expense 338 471 0.3% 2,826 2.1% Interest income (303) (422) (0.3%) (90) (0.1%) EBITDA and EBITDA margin 33,545 46,689 28.8% 40,856 31.1% Adjustment: Equity-settled share-based payment expense 2,574 3,582 2.2% — — Adjusted EBITDA and Adjusted EBITDA margin 36,119 50,271 31.0% 40,856 31.1% For the six months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Revenue 226,095 314,679 — 251,637 — Profit for the period and net profit margin 35,210 49,005 15.6% 44,763 17.8% Adjustments for: Depreciation expense 13,545 18,852 6.0% 19,839 7.9% Income tax expenses 13,147 18,298 5.8% 10,034 4.0% Interest expense 688 958 0.3% 3,747 1.5% Interest income (495) (689) (0.2%) (174) (0.1%) EBITDA and EBITDA margin 62,095 86,424 27.5% 78,209 31.1% Adjustment: Equity-settled share-based payment expense 8,273 11,515 3.7% — — Adjusted EBITDA and Adjusted EBITDA margin 70,368 97,939 31.1% 78,209 31.1% Adjusted Net Income and Adjusted Net Income margin “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. For the three months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Profit for the period and net profit margin 19,255 26,800 16.5% 22,416 17.0% Adjustment for: Equity-settled share-based payment expense 2,574 3,582 2.2% — — Adjusted Net Income and Adjusted Net Income margin 21,829 30,382 18.7% 22,416 17.0% For the six months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Profit for the period and net profit margin 35,210 49,005 15.6% 44,763 17.8% Adjustment for: Equity-settled share-based payment expense 8,273 11,515 3.7% — — Adjusted Net Income and Adjusted Net Income margin 43,483 60,520 19.2% 44,763 17.8% Adjusted EPS “Adjusted EPS” represents earnings available to shareholders excluding the impact of equity-settled share-based payment expense. Adjusted EPS is calculated as earnings available to shareholders excluding the impact of equity-settled share-based payment expense divided by our diluted weighted-average number of shares outstanding. For the three months ended June 30, 2022 2021 Amount Per Share Amount Per Share Amount Per Share US$’000 US$ S$’000 S$ S$’000 S$ Earnings available to shareholders and EPS 19,254 0.13 26,799 0.19 22,416 0.18 Adjustments for: Equity-settled share-based payment expense 2,574 0.02 3,582 0.02 — — Earnings available to shareholders after adjustments and Adjusted EPS 21,828 0.15 30,381 0.21 22,416 0.18 For the six months ended June 30, 2022 2021 Amount Per Share Amount Per Share Amount Per Share US$’000 US$ S$’000 S$ S$’000 S$ Earnings available to shareholders and EPS 35,209 0.24 49,004 0.34 44,763 0.36 Adjustments for: Equity-settled share-based payment expense 8,273 0.06 11,515 0.08 — — Earnings available to shareholders after adjustments and Adjusted EPS 43,482 0.30 60,519 0.42 44,763 0.36 The Company believes that non-IFRS financial measures such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS help us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects. While the Company believes that the non-IFRS financial measures provide useful information to investors in understanding and evaluating the Company’s results of operations in the same manner as its management, the Company’s use of non-IFRS financial measures have limitations as analytical tools and you should not consider these in isolation or as a substitute for analysis of the Company’s results of operations or financial condition as reported under IFRS. TDCX’s non-IFRS financial measures do not reflect all items of income and expense that affect the Company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-IFRS measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the company’s financial information in its entirety and not rely on any single financial measure. The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue 226,095 314,679 251,637 Employee benefits expense (150,320 ) (209,215 ) (155,426 ) Depreciation expense (13,545 ) (18,852 ) (19,839 ) Rental and maintenance expense (3,335 ) (4,642 ) (5,677 ) Recruitment expense (4,559 ) (6,345 ) (4,515 ) Transport and travelling expense (420 ) (585 ) (533 ) Telecommunication and technology expense (3,931 ) (5,471 ) (3,920 ) Interest expense (688 ) (958 ) (3,747 ) Other operating expense (3,285 ) (4,572 ) (6,144 ) Share of profit from an associate 53 74 43 Interest income 495 689 174 Other operating income 1,797 2,501 2,744 Profit before income tax 48,357 67,303 54,797 Income tax expenses (13,147 ) (18,298 ) (10,034 ) Profit for the period 35,210 49,005 44,763 Item that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 6,199 8,627 (1,153 ) Total comprehensive income for the period 41,409 57,632 43,610 Profit attributable to: - Owners of the Group 35,209 49,004 44,763 - Non-controlling interests 1 1 — 35,210 49,005 44,763 Total comprehensive income attributable to: - Owners of the Group 41,408 57,631 43,610 - Non-controlling interests 1 1 — 41,409 57,632 43,610 Basic earnings per share (in US$ or S$) (1) 0.24 0.34 0.36 Diluted earnings per share (in US$ or S$) (1) 0.24 0.34 0.36 ________________________________ (1) Basic and diluted earnings per share For the six months ended June 30, 2022 2021 Weighted average number of ordinary shares for the purposes of basic earnings per share 145,670,692 123,500,000 Weighted average number of ordinary shares for the purposes of diluted earnings per share 145,670,692 123,500,000 The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of June 30, 2022 As of December 31, 2021 US$’000 S$’000 S$’000 ASSETS Current assets Cash and cash equivalents 276,329 384,595 313,147 Fixed and pledged deposits 4,880 6,792 8,860 Trade receivables 48,786 67,900 92,561 Contract assets 40,142 55,869 49,365 Other receivables 10,412 14,492 13,220 Financial assets measured at fair value through profit or loss 19,436 27,051 23,983 Income tax receivable 37 51 17 Total current assets 400,022 556,750 501,153 Non-current assets Pledged deposits 432 601 456 Other receivables 3,366 4,685 4,771 Plant and equipment 25,312 35,229 39,709 Right-of-use assets 23,219 32,316 33,160 Deferred tax assets 1,556 2,166 1,943 Investment in an associate 282 392 318 Total non-current assets 54,167 75,389 80,357 Total assets 454,189 632,139 581,510 LIABILITIES AND EQUITY Current liabilities Other payables 32,560 45,317 39,096 Bank loans 2,935 4,085 13,847 Lease liabilities 11,122 15,480 14,550 Provision for reinstatement cost 2,546 3,544 3,663 Income tax payable 14,350 19,973 14,715 Total current liabilities 63,513 88,399 85,871 Non-current liabilities Bank loans - - 2,963 Lease liabilities 14,159 19,707 21,361 Provision for reinstatement cost 2,962 4,122 4,384 Defined benefit obligation 1,481 2,061 1,718 Deferred tax liabilities 1,367 1,902 1,507 Total non-current liabilities 19,969 27,792 31,933 Capital, reserves and non-controlling interests Share capital 14 19 19 Reserves 165,569 230,437 227,181 Retained earnings 205,109 285,471 236,486 Equity attributable to owners of the Group 370,692 515,927 463,686 Non-controlling interests 15 21 20 Total equity 370,707 515,948 463,706 Total liabilities and equity 454,189 632,139 581,510 The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of financial position above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Operating activities Profit before income tax 48,357 67,303 54,797 Adjustments for: Depreciation expense 13,545 18,852 19,839 Gain on early termination of right-of-use assets (1 ) (1 ) (85 ) Equity-settled share-based payment expense 8,273 11,515 — Provision for reinstatement cost (31 ) (43 ) — Bank loan transaction cost 20 28 246 Interest income (495 ) (689 ) (174 ) Interest expense 688 958 3,747 Retirement benefit service cost 274 382 313 (Gain) / Loss on disposal of plant and equipment (1 ) (1 ) 13 Share of profit from an associate (53 ) (74 ) (43 ) Operating cash flows before movements in working capital 70,576 98,230 78,653 Trade receivables 16,215 22,568 (10,194 ) Contract assets (5,813 ) (8,091 ) (4,786 ) Other receivables (2,926 ) (4,072 ) 1,170 Other payables 6,747 9,391 181 Cash generated from operations 84,799 118,026 65,024 Interest received 495 689 174 Income tax paid (9,181 ) (12,778 ) (11,697 ) Income tax refunded — — 4 Net cash from operating activities 76,113 105,937 53,505 Investing activities Purchase of plant and equipment (5,004 ) (6,965 ) (16,054 ) Proceeds from sales of plant and equipment 1 2 47 Decrease in fixed deposits 1,244 1,732 — Increase in pledged deposits — — (12 ) Dividend income from an associate — — 13 Net cash used in investing activities (3,759 ) (5,231 ) (16,006 ) Financing activities Dividends paid — — (177 ) Drawdown of bank loan — — 252,651 Distribution to founder — — (252,032 ) Repayment of lease liabilities (6,734 ) (9,373 ) (9,915 ) Interest paid (135 ) (188 ) (2,673 ) Repayment of bank loan (9,136 ) (12,716 ) (3,410 ) Repurchase of American Depositary Shares (6,729 ) (9,366 ) — Proceeds from issuance of shares — — 16 Net cash used in financing activities (22,734 ) (31,643 ) (15,540 ) Net increase in cash and cash equivalents 49,620 69,063 21,959 Effect of foreign exchange rate changes on cash held in foreign currencies 1,715 2,385 (604 ) Cash and cash equivalents at beginning of period 224,994 313,147 59,807 Cash and cash equivalents at end of period 276,329 384,595 81,162 The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of cash flows above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. View source version on businesswire.com: https://www.businesswire.com/news/home/20220823005425/en/Contacts For enquiries, please contact: Investors / Analysts: Jason Lim lim.jason@tdcx.com Media: Eunice Seow eunice.seow@tdcx.com
TDCX Inc. (NYSE: TDCX) (“TDCX” or the “Company”), an award-winning digital customer experience (CX) solutions provider for technology and blue-chip companies, today announced its unaudited financial results for the second quarter ended June 30, 2022. Second Quarter 2022 Financial Highlights Total Revenue of US$116.6 million, up 23.3% year-on-year Profit for the period was US$19.3 million, up 19.6% year-on-year Adjusted Net Income4 of US$21.8 million, up 35.5% year-on-year Adjusted EBITDA1,3 of US$36.1 million, up 23.0% year-on-year Q2 2022 Adjusted EBITDA margin1,3 of 31.0%, compared with 31.1% for Q2 2021 Year-to-date Net Cash from Operating Activities of US$76.1 million, up 98.0% year-on-year Mr. Laurent Junique, Chief Executive Officer and Founder of TDCX, said, “Southeast Asia’s fundamentals remain attractive to companies seeking long term growth. Given our established network, local market expertise and robust talent pool, we continue to attract and to support clients in realizing their growth ambitions in this region. “We continue to see our business development efforts take flight, adding 25 new logos since the start of the year. Among our new clients are two Southeast Asian market leaders, specifically a leading regional airline and one of the region’s largest integrated car e-commerce platforms. Such logo wins reflect our strengths in this region and our deep sector expertise.” (US$ million, except for %)2 Q2 2021 Q2 2022 % Change Revenue 94.5 116.6 +23.3% Profit for the period 16.1 19.3 +19.6% Adjusted Net Income4 16.1 21.8 +35.5% Adjusted EBITDA1,3 29.3 36.1 +23.0% Adjusted EBITDA Margins1,3 (%) 31.1% 31.0% Business Highlights Strong Client Additions Signed up 25 new logos since the start of the year, more than triple the 8 logos in H1 2021 New logo wins in Q2 2022 include a leading regional airline, as well as one of Southeast Asia’s largest integrated car e-commerce platforms 60 clients with campaigns that have been launched as of June 30, 2022, a 40% increase as compared with 43 launched clients as of June 30, 2021 Revenue contribution from new economy5 clients stood at 93% for H1 2022 Full Year 2022 Outlook Reiterated For the full year 2022, TDCX expects its financial results to be: 2022 Outlook Revenue (in millions) S$650m to S$675m6 (unchanged) Revenue growth (YoY) Range: 17.1% to 21.6% (unchanged) Adjusted EBITDA margin1,3 Approximately 30.0% to 32.0% (unchanged) _______________________________ 1 Adjusted EBITDA or Adjusted EBITDA margins are supplemental non-IFRS financial measures and should not be considered in isolation or as a substitute for financial results reported under IFRS (see "Reconciliations of non-IFRS financial measures to the nearest comparable IFRS measures" in the Form 6-K or presentation slides for more details). 2 FX rate of US$1 = S$1.3918 assumed in converting financials from SG dollar to US dollar. 3 Adjusted EBITDA represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. 4 “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. 5 “New economy” refers to high growth industries that are on the cutting edge of digital technology and are the driving forces of economic growth. 6 Full year 2022 Outlook remains unchanged in Singapore dollars. This equates to US$467m to US$485m, using the FX rate of US$1 = S$1.3918, being the approximate rate in effect as of June 30, 2022. Previously, this was US$480m to US$499m, using the FX rate of US$1 = S$1.3534m, being the approximate rate in effect as of March 31, 2022. Webcast and Conference Call Information The TDCX senior management will host a conference call to discuss the second quarter 2022 unaudited financial results. A live webcast of this conference call will be available on TDCX’s website. Access information on the conference call and webcast is as follows: Date and time: August 24, 2022, 8:00 AM (U.S. Eastern Time) August 24, 2022, 8:00 PM (Singapore / Hong Kong Time) Webcast link: https://webinars.on24.com/q4/TDCX_Q2_2022 Dial in numbers: USA Toll Free: +1 855 2656958 UK Toll Free +44 0 800 0156371 Singapore: +65 3158 0246 Hong Kong: +852 5808 0984 International: +1 718 7058796 A replay of the conference call will be available at TDCX’s investor relations website (investors.tdcx.com). An archived webcast will be available at the same link above. About TDCX INC. Singapore-headquartered TDCX provides transformative digital CX solutions, enabling world-leading and disruptive brands to acquire new customers, to build customer loyalty and to protect their online communities. TDCX helps clients achieve their customer experience aspirations by harnessing technology, human intelligence and its global footprint. It serves clients in fintech, gaming, technology, home sharing and travel, digital advertising and social media, streaming and e-commerce. TDCX’s expertise and strong footprint in Asia has made it a trusted partner for clients, particularly high-growth, new economy companies, looking to tap the region’s growth potential. TDCX’s commitment to delivering positive outcomes for our clients extends to its role as a responsible corporate citizen. Its Corporate Social Responsibility program focuses on positively transforming the lives of its people, its communities and the environment. TDCX employs more than 16,000 employees across 26 campuses globally, specifically Singapore, Malaysia, Thailand, Philippines, Mainland China, Hong Kong, South Korea, Japan, India, Romania, Spain and Colombia. For more information, please visit www.tdcx.com. Convenience Translation The Company’s financial information is stated in Singapore dollars, the legal currency of Singapore. Unless otherwise noted, all translations from Singapore dollars to U.S. dollars and from U.S. dollars to Singapore dollars in this press release were made at a rate of S$1.3918 to US$1.00, the approximate rate in effect as of June 30, 2022. We make no representation that any Singapore dollar or U.S. dollar amount could have been, or could be, converted into U.S. dollars or Singapore dollar, as the case may be, at any particular rate, the rate stated herein, or at all. Non-IFRS Financial Measure To supplement our consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the following non-IFRS financial measure to help evaluate our operating performance: “EBITDA” represents profit for the period before interest expense, interest income, income tax expense and depreciation expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation expense and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. We believe that EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin helps us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects. “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. The above non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or construed as an alternative to revenue, net income, or any other measure of performance or as an indicator of our operating performance. The non-IFRS financial measures presented here may not be comparable to similarly titled measures presented by other companies because other companies may calculate similarly titled measures differently. For more information on the non-IFRS financial measures, please see the form 6-K section captioned “Non-IFRS Financial Measures” or the presentation slides. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Among other things, the outlook for the full year, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the performance of TDCX’s largest clients; the successful implementation of its business strategy; its ability to compete effectively; its ability to maintain its pricing, control costs or continue to grow its business; the effects of the novel coronavirus (COVID-19) on its business; the continued service of its founder and certain of its key employees and management; its ability to attract and retain enough highly trained employees; its exposure to various risks in Southeast Asia; its contractual relationship with key clients; clients and prospective clients’ spending on omnichannel CX solutions; its spending on employee salaries and benefits expenses; and its involvement in any disputes, legal, regulatory, and other proceedings arising out of its business operations. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the three months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue 116,580 162,256 131,565 Employee benefits expense (75,704 ) (105,365 ) (80,672 ) Depreciation expense (6,679 ) (9,296 ) (9,899 ) Rental and maintenance expense (1,707 ) (2,376 ) (2,839 ) Recruitment expense (2,541 ) (3,536 ) (2,534 ) Transport and travelling expense (284 ) (395 ) (305 ) Telecommunication and technology expense (2,042 ) (2,842 ) (2,053 ) Interest expense (338 ) (471 ) (2,826 ) Other operating expense (1,450 ) (2,018 ) (3,341 ) Share of profit from an associate 40 56 18 Interest income 303 422 90 Other operating income 653 909 1,017 Profit before income tax 26,831 37,344 28,221 Income tax expenses (7,576 ) (10,544 ) (5,805 ) Profit for the period 19,255 26,800 22,416 Item that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 7,001 9,743 (1,041 ) Total comprehensive income for the period 26,256 36,543 21,375 Profit attributable to: - Owners of TDCX Inc. 19,254 26,799 22,416 - Non-controlling interests 1 1 — 19,255 26,800 22,416 Total comprehensive income attributable to: - Owners of TDCX Inc. 26,255 36,542 21,375 - Non-controlling interests 1 1 — 26,256 36,543 21,375 Basic earnings per share (in US$ or S$) (1) 0.13 0.19 0.18 Diluted earnings per share (in US$ or S$) (1) 0.13 0.19 0.18 _______________________________ (1) Basic and diluted earnings per share For the three months ended June 30, 2022 2021 Weighted average number of ordinary shares for the purposes of basic earnings per share 145,596,995 123,500,000 Weighted average number of ordinary shares for the purposes of diluted earnings per share 145,596,995 123,500,000 The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. Comparison of the Three Months Ended June 30, 2022 and 2021 Revenue. Our revenues increased by 23.3% to S$162.3 million (US$116.6 million) for the three months ended June 30, 2022 from S$131.6 million for the three months ended June 30, 2021 primarily due to a 19.1% increase in revenue from providing omnichannel Customer Experience (“CX”) solutions, and a 54.0% increase in revenues from providing sales and digital marketing services. Our revenues from omnichannel CX solutions increased by 19.1% to S$95.3 million (US$68.5 million) from S$80.0 million for the same period of 2021 primarily due to higher business volumes driven by the expansion of existing campaigns by clients in the fintech and technology verticals. In addition, business volumes of our top two travel and hospitality vertical clients benefited from the gradual recovery from the impact of the COVID-19 pandemic, although the recovery has not reached pre-pandemic levels. Our revenues from sales and digital marketing services increased by 54.0% to S$39.1 million (US$28.1 million) from S$25.4 million for the same period of 2021 primarily due to the expansion of existing campaigns for our key clients in the digital advertising and media vertical. Our revenues from content, trust and safety services increased by 5.9% to S$27.0 million (US$19.4 million) from S$25.5 million for the same period of 2021 primarily due to an increase in business volumes from a client in the travel and hospitality vertical. Our revenues from our other service fees increased by 24.5% to S$0.9 million (US$0.6 million) from S$0.7 million for the same period of 2021 primarily due to higher business volumes from existing clients and higher contribution from new clients. The following table sets forth our service provided by amount for the three months ended June 30, 2022 and 2021. For the three months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue by service Omnichannel CX solutions * 68,490 95,325 80,005 Sales and digital marketing 28,061 39,055 25,357 Content, trust and safety * 19,384 26,979 25,482 Other service fees * # 645 897 721 Total revenue 116,580 162,256 131,565 * In the second quarter of 2022, we have renamed our “content monitoring and moderation” services as “content, trust and safety” services and reclassified certain of our revenues from our omnichannel CX solution services and our other service fees under content, trust and safety services. Accordingly, we reclassified our segment revenues for all periods presented herein on a comparable basis except where otherwise noted. See “Segment Reclassification” below. # Other service fees comprise revenue from other business process services and revenue from other services. Employee Benefits Expense. Our employee benefits expense increased by 30.6% to S$105.4 million (US$75.7 million) from S$80.7 million for the same period of 2021 due to higher employee count, employee compensation adjustments pursuant to cost of living inflation and the dynamics of the talent markets that we operate in, and share-based payment expense arising from the implementation of our performance share plan in November 2021. Our average number of employees in the second quarter of 2022 increased 23.3% compared to the same period of 2021 as a result of business volumes expansion of current campaigns over the course of 2021 and first quarter of 2022, and staffing requirements of new campaign launches in the second half of 2021 and first quarter of 2022. Depreciation Expense. Our depreciation expense decreased by 6.1% to S$9.3 million (US$6.7 million) from S$9.9 million for the same period of 2021 primarily due to certain office renovation assets in Singapore, Thailand and Philippines being fully depreciated during the period. These were partially offset by depreciation on capital expenditures invested in new and expansion capacities to support the growth of our business. Rental and Maintenance Expense. Our rental and maintenance expense decreased by 16.3% to S$2.4 million (US$1.7 million) from S$2.8 million for the same period of 2021 primarily due to the termination of certain co-working space memberships in Japan, pursuant to the relocation of our operations to leased and fitted-out office spaces. Recruitment Expense. Our recruitment expense increased by 39.5% to S$3.5 million (US$2.5 million) from S$2.5 million for the same period of 2021 primarily due to accelerated hiring activities contributing to higher hiring fees, and increased expenses related to immigration, work permits and onboarding of foreign nationality employees induced by COVID-19-related procedural regulations implemented by governmental authorities of respective countries to support the expansion of campaigns in our Malaysia, Thailand and Japan offices. Transport and Travelling Expense. Our transport and travelling expense increased by 29.5% to S$0.4 million (US$0.3 million) from S$0.3 million for the same period of 2021 primarily due to more business travel following the opening of borders in many countries. Telecommunication and Technology Expense. Our telecommunication and technology expense increased by 38.4% to S$2.8 million (US$2.0 million) from S$2.1 million for the same period of 2021 primarily in tandem with business volume expansion of our existing campaigns and new projects’ launches. Interest Expense. Our interest expense decreased by 83.3% to S$0.5 million (US$0.3 million) from S$2.8 million for the same period of 2021 primarily due to reduced bank borrowings during the period. Other Operating Expense. Our other operating expense decreased by 39.6% to S$2.0 million (US$1.5 million) from S$3.3 million for the same period of 2021 primarily due to higher foreign exchange gains recognized, offset by increased legal and professional fees. Share of Profit from an Associate. Our share of profit from an associate was insignificant for the three months ended June 30, 2022 and 2021. Other Operating Income. Our other operating income decreased by 10.6% to S$0.9 million (US$0.7 million) from S$1.0 million for the same period of 2021 primarily due to a decrease in government grants received by our Singapore subsidiaries in relation to the COVID-19 pandemic. Profit Before Income Tax. As a result of the foregoing, our profit before income tax increased by 32.3% to S$37.3 million (US$26.8 million) from S$28.2 million for the corresponding period of 2021. Income Tax Expenses. Our income tax expenses increased by 81.6% to S$10.5 million (US$7.6 million) from S$5.8 million for the same period of 2021. The higher income tax expenses were mainly due to higher taxes from our subsidiary in Malaysia as a result of a one-off “prosperity tax” enacted by the local government for fiscal 2022, suspension of income tax holiday in our subsidiary in the Philippines and higher taxable profits of our subsidiaries in the Philippines and Thailand. Profit for the Period. As a result of the foregoing, our profit for the period increased by 19.6% to S$26.8 million (US$19.3 million) from S$22.4 million for the same period of 2021. Share Repurchase Program On March 14, 2022, we announced that the board of directors had approved a US$30.0 million share repurchase program. The share repurchase program commenced on March 14, 2022. The repurchase program has no expiration date and may be suspended, modified or discontinued at any time without prior notice. We expect to fund repurchases under this program with our existing cash balance. Our proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades, and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations and its insider trading policy. Our board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size. We did not make any repurchase of ADSs in the year ended December 31, 2021. From March 14, 2022 to March 31, 2022, we purchased 106,200 ADSs at a cost of US$1.3 million under our share repurchase program. From April 1, 2022 to June 30, 2022, we purchased 587,123 ADSs at a cost of US$5.5 million. From July 1, 2022 to August 22, 2022, we purchased 352,489 ADSs at a cost of US$3.0 million. Segment Reclassification In the second quarter of 2022, we have renamed our “content monitoring and moderation” services as “content, trust and safety” services. The change reflects the industry’s broader view that content moderation services are part of a larger group of services that includes other trust and safety related services and helps enhance our ability to track our performance. Our content, trust and safety services are comprised of content moderating and monitoring services, trust and safety services and data annotation services. Content moderation and monitoring service involves the review of content submission for violation of terms of use or non-compliant with the specifications and guidelines provided by our clients. Trust and safety services entails our dedicated and trained resources in assisting our clients to verify, detect and prevent incidences fraudulent use of clients’ tools so as to promote users’ confidence in using our clients’ platforms and tools. Data annotation services provided by us serves to support the development of our clients’ efforts in machine learning and automation initiatives and projects. Revenue for trust and safety related services that were previously classified under omnichannel CX solutions and other service fees respectively, which can currently be reasonably identified and quantified, will now be reported as content, trust and safety services. The following table sets forth our services provided by amount for the three months ended March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022. Before the change For the three months ended S$ ’000 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Revenue by service Omnichannel CX solutions 93,474 96,074 92,820 82,886 74,802 Sales and digital marketing 35,710 34,632 32,371 25,377 22,338 Content monitoring and moderation 20,917 21,660 21,184 21,382 21,664 Other service fees# 2,322 2,397 2,422 1,920 1,268 Total revenue 152,423 154,763 148,797 131,565 120,072 After the change For the three months ended S$ ’000 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Revenue by service Omnichannel CX solutions 89,505 92,496 89,320 79,984 72,247 Sales and digital marketing 35,710 34,632 32,371 25,377 22,338 Content, trust and safety 26,408 26,822 26,377 25,482 24,857 Other service fees# 800 813 729 722 630 Total revenue 152,423 154,763 148,797 131,565 120,072 # Other service fees comprise revenue from other business process services and revenue from other services. NON-IFRS FINANCIAL MEASURES EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS are non-IFRS financial measures. TDCX monitors EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS because they assist the Company in comparing its operating performance on a consistent basis by removing the impact of items not directly resulting from its core operations. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin “EBITDA” represents profit for the period before interest expense, interest income, income tax expense, and depreciation expense. “EBITDA margin” represents EBITDA as a percentage of revenue. “Adjusted EBITDA” represents profit for the period before interest expense, interest income, income tax expense, depreciation expenses, and equity-settled share-based payment expense incurred in connection with our Performance Share Plan. “Adjusted EBITDA margin” represents Adjusted EBITDA as a percentage of revenue. For the three months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Revenue 116,580 162,256 — 131,565 — Profit for the period and net profit margin 19,255 26,800 16.5% 22,416 17.0% Adjustments for: Depreciation expense 6,679 9,296 5.7% 9,899 7.5% Income tax expenses 7,576 10,544 6.5% 5,805 4.4% Interest expense 338 471 0.3% 2,826 2.1% Interest income (303) (422) (0.3%) (90) (0.1%) EBITDA and EBITDA margin 33,545 46,689 28.8% 40,856 31.1% Adjustment: Equity-settled share-based payment expense 2,574 3,582 2.2% — — Adjusted EBITDA and Adjusted EBITDA margin 36,119 50,271 31.0% 40,856 31.1% For the six months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Revenue 226,095 314,679 — 251,637 — Profit for the period and net profit margin 35,210 49,005 15.6% 44,763 17.8% Adjustments for: Depreciation expense 13,545 18,852 6.0% 19,839 7.9% Income tax expenses 13,147 18,298 5.8% 10,034 4.0% Interest expense 688 958 0.3% 3,747 1.5% Interest income (495) (689) (0.2%) (174) (0.1%) EBITDA and EBITDA margin 62,095 86,424 27.5% 78,209 31.1% Adjustment: Equity-settled share-based payment expense 8,273 11,515 3.7% — — Adjusted EBITDA and Adjusted EBITDA margin 70,368 97,939 31.1% 78,209 31.1% Adjusted Net Income and Adjusted Net Income margin “Adjusted Net Income” represents profit for the period before equity-settled share-based payment expense incurred in connection with our Performance Share Plan, net of any tax impact of such adjustments. “Adjusted Net Income margin” represents Adjusted Net Income as a percentage of revenue. For the three months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Profit for the period and net profit margin 19,255 26,800 16.5% 22,416 17.0% Adjustment for: Equity-settled share-based payment expense 2,574 3,582 2.2% — — Adjusted Net Income and Adjusted Net Income margin 21,829 30,382 18.7% 22,416 17.0% For the six months ended June 30, 2022 2021 US$’000 S$’000 Margin S$’000 Margin Profit for the period and net profit margin 35,210 49,005 15.6% 44,763 17.8% Adjustment for: Equity-settled share-based payment expense 8,273 11,515 3.7% — — Adjusted Net Income and Adjusted Net Income margin 43,483 60,520 19.2% 44,763 17.8% Adjusted EPS “Adjusted EPS” represents earnings available to shareholders excluding the impact of equity-settled share-based payment expense. Adjusted EPS is calculated as earnings available to shareholders excluding the impact of equity-settled share-based payment expense divided by our diluted weighted-average number of shares outstanding. For the three months ended June 30, 2022 2021 Amount Per Share Amount Per Share Amount Per Share US$’000 US$ S$’000 S$ S$’000 S$ Earnings available to shareholders and EPS 19,254 0.13 26,799 0.19 22,416 0.18 Adjustments for: Equity-settled share-based payment expense 2,574 0.02 3,582 0.02 — — Earnings available to shareholders after adjustments and Adjusted EPS 21,828 0.15 30,381 0.21 22,416 0.18 For the six months ended June 30, 2022 2021 Amount Per Share Amount Per Share Amount Per Share US$’000 US$ S$’000 S$ S$’000 S$ Earnings available to shareholders and EPS 35,209 0.24 49,004 0.34 44,763 0.36 Adjustments for: Equity-settled share-based payment expense 8,273 0.06 11,515 0.08 — — Earnings available to shareholders after adjustments and Adjusted EPS 43,482 0.30 60,519 0.42 44,763 0.36 The Company believes that non-IFRS financial measures such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted EPS help us to identify underlying trends in our operating results, enhancing our understanding of past performance and future prospects. While the Company believes that the non-IFRS financial measures provide useful information to investors in understanding and evaluating the Company’s results of operations in the same manner as its management, the Company’s use of non-IFRS financial measures have limitations as analytical tools and you should not consider these in isolation or as a substitute for analysis of the Company’s results of operations or financial condition as reported under IFRS. TDCX’s non-IFRS financial measures do not reflect all items of income and expense that affect the Company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-IFRS measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-IFRS financial measures to the nearest IFRS performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the company’s financial information in its entirety and not rely on any single financial measure. The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Revenue 226,095 314,679 251,637 Employee benefits expense (150,320 ) (209,215 ) (155,426 ) Depreciation expense (13,545 ) (18,852 ) (19,839 ) Rental and maintenance expense (3,335 ) (4,642 ) (5,677 ) Recruitment expense (4,559 ) (6,345 ) (4,515 ) Transport and travelling expense (420 ) (585 ) (533 ) Telecommunication and technology expense (3,931 ) (5,471 ) (3,920 ) Interest expense (688 ) (958 ) (3,747 ) Other operating expense (3,285 ) (4,572 ) (6,144 ) Share of profit from an associate 53 74 43 Interest income 495 689 174 Other operating income 1,797 2,501 2,744 Profit before income tax 48,357 67,303 54,797 Income tax expenses (13,147 ) (18,298 ) (10,034 ) Profit for the period 35,210 49,005 44,763 Item that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 6,199 8,627 (1,153 ) Total comprehensive income for the period 41,409 57,632 43,610 Profit attributable to: - Owners of the Group 35,209 49,004 44,763 - Non-controlling interests 1 1 — 35,210 49,005 44,763 Total comprehensive income attributable to: - Owners of the Group 41,408 57,631 43,610 - Non-controlling interests 1 1 — 41,409 57,632 43,610 Basic earnings per share (in US$ or S$) (1) 0.24 0.34 0.36 Diluted earnings per share (in US$ or S$) (1) 0.24 0.34 0.36 ________________________________ (1) Basic and diluted earnings per share For the six months ended June 30, 2022 2021 Weighted average number of ordinary shares for the purposes of basic earnings per share 145,670,692 123,500,000 Weighted average number of ordinary shares for the purposes of diluted earnings per share 145,670,692 123,500,000 The translation of Singapore Dollar amounts into United States Dollar amounts (“USD”) for the unaudited condensed interim consolidated statement of profit or loss and other comprehensive income above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of June 30, 2022 As of December 31, 2021 US$’000 S$’000 S$’000 ASSETS Current assets Cash and cash equivalents 276,329 384,595 313,147 Fixed and pledged deposits 4,880 6,792 8,860 Trade receivables 48,786 67,900 92,561 Contract assets 40,142 55,869 49,365 Other receivables 10,412 14,492 13,220 Financial assets measured at fair value through profit or loss 19,436 27,051 23,983 Income tax receivable 37 51 17 Total current assets 400,022 556,750 501,153 Non-current assets Pledged deposits 432 601 456 Other receivables 3,366 4,685 4,771 Plant and equipment 25,312 35,229 39,709 Right-of-use assets 23,219 32,316 33,160 Deferred tax assets 1,556 2,166 1,943 Investment in an associate 282 392 318 Total non-current assets 54,167 75,389 80,357 Total assets 454,189 632,139 581,510 LIABILITIES AND EQUITY Current liabilities Other payables 32,560 45,317 39,096 Bank loans 2,935 4,085 13,847 Lease liabilities 11,122 15,480 14,550 Provision for reinstatement cost 2,546 3,544 3,663 Income tax payable 14,350 19,973 14,715 Total current liabilities 63,513 88,399 85,871 Non-current liabilities Bank loans - - 2,963 Lease liabilities 14,159 19,707 21,361 Provision for reinstatement cost 2,962 4,122 4,384 Defined benefit obligation 1,481 2,061 1,718 Deferred tax liabilities 1,367 1,902 1,507 Total non-current liabilities 19,969 27,792 31,933 Capital, reserves and non-controlling interests Share capital 14 19 19 Reserves 165,569 230,437 227,181 Retained earnings 205,109 285,471 236,486 Equity attributable to owners of the Group 370,692 515,927 463,686 Non-controlling interests 15 21 20 Total equity 370,707 515,948 463,706 Total liabilities and equity 454,189 632,139 581,510 The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of financial position above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended June 30, 2022 2021 US$’000 S$’000 S$’000 Operating activities Profit before income tax 48,357 67,303 54,797 Adjustments for: Depreciation expense 13,545 18,852 19,839 Gain on early termination of right-of-use assets (1 ) (1 ) (85 ) Equity-settled share-based payment expense 8,273 11,515 — Provision for reinstatement cost (31 ) (43 ) — Bank loan transaction cost 20 28 246 Interest income (495 ) (689 ) (174 ) Interest expense 688 958 3,747 Retirement benefit service cost 274 382 313 (Gain) / Loss on disposal of plant and equipment (1 ) (1 ) 13 Share of profit from an associate (53 ) (74 ) (43 ) Operating cash flows before movements in working capital 70,576 98,230 78,653 Trade receivables 16,215 22,568 (10,194 ) Contract assets (5,813 ) (8,091 ) (4,786 ) Other receivables (2,926 ) (4,072 ) 1,170 Other payables 6,747 9,391 181 Cash generated from operations 84,799 118,026 65,024 Interest received 495 689 174 Income tax paid (9,181 ) (12,778 ) (11,697 ) Income tax refunded — — 4 Net cash from operating activities 76,113 105,937 53,505 Investing activities Purchase of plant and equipment (5,004 ) (6,965 ) (16,054 ) Proceeds from sales of plant and equipment 1 2 47 Decrease in fixed deposits 1,244 1,732 — Increase in pledged deposits — — (12 ) Dividend income from an associate — — 13 Net cash used in investing activities (3,759 ) (5,231 ) (16,006 ) Financing activities Dividends paid — — (177 ) Drawdown of bank loan — — 252,651 Distribution to founder — — (252,032 ) Repayment of lease liabilities (6,734 ) (9,373 ) (9,915 ) Interest paid (135 ) (188 ) (2,673 ) Repayment of bank loan (9,136 ) (12,716 ) (3,410 ) Repurchase of American Depositary Shares (6,729 ) (9,366 ) — Proceeds from issuance of shares — — 16 Net cash used in financing activities (22,734 ) (31,643 ) (15,540 ) Net increase in cash and cash equivalents 49,620 69,063 21,959 Effect of foreign exchange rate changes on cash held in foreign currencies 1,715 2,385 (604 ) Cash and cash equivalents at beginning of period 224,994 313,147 59,807 Cash and cash equivalents at end of period 276,329 384,595 81,162 The translation of Singapore Dollar amounts into United States Dollar amounts for the unaudited condensed interim consolidated statement of cash flows above are included solely for the convenience of readers outside of Singapore and have been made at the rate of S$1.3918 to US$1.00, the approximate rate of exchange at June 30, 2022. Such translations should not be construed as representations that the Singapore Dollar amounts could be converted into USD at that or any other rate. View source version on businesswire.com: https://www.businesswire.com/news/home/20220823005425/en/
For enquiries, please contact: Investors / Analysts: Jason Lim lim.jason@tdcx.com Media: Eunice Seow eunice.seow@tdcx.com