AGS Transact Has Established Leadership Position in the Indian ATM Industry

ATM managed services: During financial year 2021, AGS Transact was India’s second largest ATM managed
service company with a 15.5% market share in terms of revenues with 32,367 ATMs managed under the
outsourcing model,

ATM supply market: This is a key segment of the ATM managed services market in India. Installation of new
and replacement cash dispensing and recycling machines is included under this segment. In financial year 2021,
AGS Transact held a market share of approximately 15% in terms of revenues generated through supply or
deployment of ATMs in India.

Cash management market: During financial year 2021, AGS Transact was India’s second largest cash
management company with a 30% market share in terms of number of ATMs replenished and approximately
26% market share in terms of revenues from the ATM replenishment segment.

Trends and Developments in India’s ATM Deployment Market
Increasing Number of ATMs

The ATM industry has grown during the past decade. Economic advancement, increase in income levels
generally in urban areas due to growth in job opportunities and evolution to mass banking from class banking
have driven the market for the ATM industry in recent years.

Significant growth observed in ATMs was primarily due to the rural spread and activation of the PMJDY
scheme. The growth in onsite ATMs is primarily due to the fact that people prefer to use ATMs which are closer
to their bank branches. However, there has been a growth in offsite ATMs due to an increase in contracts
offered to MSPs with an aim of garnering higher penetration in the market and improve retail banking for the
customers.

During financial year 2021, 8.4% of the total ATMs deployed were new machines while the remaining 91.6%
were replacements to old machines. It is expected that the number of new ATMs is set to grow, with 5.5% share
of total ATM sales, while the remaining 94.5% will act as a replacement to an older unit during financial year
2026.

The following table sets forth the number of onsite and offsite ATMs (excluding white label ATMs):

 

 

 

 

 

 

 

Financial Year
AIM Tyre 2016 2017 2018 2019 2020 2021
Onsite 1,01,950 1,09,809 1,06,776 1,06,380 1,13,271 1,15,605
Offsite 97,149 98,545 1,00,276 95,816 97,489 97,970
Total 1,99,099 2,08,354 2,07,052 2,02,196 2,10,760 2,13,575

 

 

 

 

 

 

 

Note: The data was recorded as of March 31 of every financial year and does not not include white label ATMs.
Source: India ATM Market Outlook to 2026, Ken Research, August 2021.

The following chart sets forth the number of ATMs in India from March 31, 2016, to March 31, 2021:

 

2,45,000.0
2,38,588
2,40,000.0 _—
2,35,000.0
2,30,000.0
2,25,000.0 2,22,475 2,22,247 ooneg
2,20,000.0
2,15,000.0 2,12,061
2,10,000.0
2,05,000.0
2,00,000.0
1,95,000.0 +
FY'2016 FY'2017 FY 2018 FY'2019 FY'2020 FY'2021

Note: Number of ATMs includes onsite ATMs, offsite ATMs and white label ATMs.
Source: India ATM Market Outlook to 2026, Ken Research, August 2021.

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