TSN- Spec Buy. Target 6-7cents, page-115

Good evening Team TSN.

I had the chance to attend one of the TSI/TSN briefings this week.

It was great to have the chance to meet Monish Kumar CEO and Deepak Verma CFO.

Both were really nice men and clearly very capable.

I know I promised to update HC after the roadshow however have been flat out this week. Thought I would just drop a few lines to give the context of what I got from the meeting.

In essence, these guys have a real vision for what they are building. This is not just growing organically, they are strategically assembling the building blocks of what will be a US Billion dollar plus company. I tried to draw out potential valuations from Mohnish but he was careful.

I need numbers to put into my valuation model, I need to understand different margins and what their estimates for revenue are......so we had a number of questions we were looking to have answered.

The first thing that surprised me was the number of total transactions TSI will do for 2016 being 525m, whereas the number for all of Australia will be approx 627m.....that is insane. That gives you a taste for the size of the Indian opportunity.....ENORMOUS!!!

TSI manage 13,750 Bank ATMS, vs the total of ANZ/NAB/WBC/CBA which have 13,850 across all of Australia.

India's ATM pool will double to 400,000 by 2020 in only 4 years..

We spoke a lot about the recent pan India deal, and how it is structured. And how the managed services opportunity will blow those numbers out of the water (in my opinion).

Importantly we now have 400 employees across 17 locations. This deal has now put us on the radar of all the banks in India. Deepak explained to me how they are now being approached by so many of the major players in India...that they are now being selective about what opportunities they are going to run with.

I have more detailed notes in the office, so will look through them and offer up a few more tasty morsels shortly.

This is a bigger opportunity than I initially thought, and my crew and I are now assessing how much deeper we are prepared to go into this one.

I like very much.

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