Intellect Design Arena Ltd · NSE:INTELLECT
Intellect Design Arena — Q1 FY22 Earnings Presentation
65 slides from Intellect Design Arena's earnings presentation, Jul 28, 2021
Slide 1: Exchange filing cover letter under Regulation 30(6)
INTELLECT/SEC/2021-22 July 28, 2021 The National Stock Exchange of India Ltd., Scrip Code : ExchangePlaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051. INTELLECT The BSE Ltd. Scrip Code : 1st Floor, New Trade Ring, Rotunda Building, PJ Towers, Dalal Street, F
Slide 2: Q1 FY22 Results Earnings Announcement
Q1 FY 22 Results Earnings Announcement
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks a
Slide 4: Agenda
Agenda Intellect Performance Financial 01 A Snapshot 02 Overview 03 Performance Business 04 In Summary 06 In Summary 06 Highlights
Slide 5: Intellect – A Snapshot
Intellect – A Snapshot Full-spectrum The world’s Ranked #1 in FinTech 8012, banking and largest cloud the world for Trusted by Pioneered the world’s first insurance native, API led, Retail and over 260 Design Thinking design center technology microservices Transaction financial to create for fintech
Slide 6: Intellect Products Overview
Intellect Products Overview Digital Transaction Banking Digital Core World’s First Integrated Digital Transaction Banking Digital 360, real-time, context-aware Enterprise Platform delivering Omni-Channel Cash & Trade Product Processors Digital Lending Instant credit, micro-segmentation, risk optimis
Slide 7: Intellect Products Overview
Intellect Products Overview Brokerage Solution (Capital Alpha) Underwriting (Xponent) Broker in a box, multi-asset, multi-exchange Pioneering deployment of Artificial Intelligence, Big Data and IoT to transform insurance Treasury and ALM (Capital Cube) Real time Optimizer & Risk Manager Risk Analyst
Slide 8: Intellect Products Overview
Intellect Products Overview I-Turmeric First-of-its kind enterprise integration and transformation platform for banks to progressively modernise to a API led, Cloud ready I-GOV Full Spectrum Digital for Public architecture Sector Services IDX Digital Solution Platform Fabric Data Platform powered wi
Slide 9: Performance Overview
PERFORMANCE OVERVIEW
Slide 10: Performance Delivered with Strong Foundation for Road Ahead
Performance Delivered with Strong Foundation for Road Ahead Seventh consecutive quarter of growth in revenues and profits 2 BUILDING ON MARKET 1 STRONG REVENUE LEADERSHIP GROWTH ACCELERATION OF SAAS REVENUE GROWING CUSTOMER 3 TRUST WITH ON TIME DELIVERIES 4 OPENING NEW VISTAS OF GROWTH
Slide 11: Strong Revenue Growth, Acceleration of SaaS Revenues
1 Strong Revenue Growth Acceleration of SaaS Revenues Total Revenue $55.38 Mn SaaS and Subscription vs $45.60 Mn in Q1FY21 YoY Growth 21% 102% Revenue doubled at INR 777 Mn vs INR 386 Mn in Q1FY21 License Revenue INR 792 Mn License Linked Revenue vs INR 600 Mn in Q1FY21 YoY Growth 32% 58% (License +
Slide 12: Intellect: Turning the World Blue, Building on Market Leadership
2 Intellect: Turning the World Blue Building on Market Leadership APAC Europe: St. James’s Place signs Bagged a large deal 3 deals with Intellect for end-to- with the second full- end Salesforce transformation fledged Islamic and to lead the AI Transformation for Investment Management 54 bank in Mal
Slide 13: Growing Customer Trust with On Time Deliveries
3 Growing Customer TRUST with On Time deliveries New Implementations in Intellect went live in 26 financial institutions 8 Q1FY22 26 across the world in Q1FY22 despite the impact of the second wave of Covid on Indian delivery centers Implementations with expanded 18 product capabilities /additional
Slide 14: Opening New Vistas for Growth – Americas
4 Opening New Vistas for Growth AMERICAS ● CBX – Composable & Contextual Hyperscale Digital Corporate Banking Operating System (CBOS) ● Digital Partnerships being developed along with leading SI Digital Labs ● PayCorp for Canada ● Intake & Routing (Xponent Lite) product in development which will be
Slide 15: Opening New Vistas for Growth – Europe
4 Opening New Vistas for Growth Europe ● Launched iKredit360 – A Curated Credit Solution for Europe ● Building Solution, Delivery and hosting capabilities in Germany and UK ● Fully Hosted IDC Solution in AWS Germany and UK
Slide 16: Opening New Vistas for Growth – IMEA
4 Opening New Vistas for Growth IMEA ● Accelerating GMV in GeM in India ● Wealth Product getting traction ● Islamic Banking Capabilities in Trade in ME Region ● Intelligent Data Extraction (IDX) gaining momentum
Slide 17: Opening New Vistas for Growth – APAC
4 Opening New Vistas for Growth APAC ● Islamic Banking Capabilities in Trade, Digital Core and Lending ● Progressive modernisation of Core Banking on iTurmeric Platform
Slide 18: Financial Performance
FINANCIAL PERFORMANCE
Slide 19: Strong Revenue Growth and Acceleration of SaaS Revenues
Strong Revenue Growth and Acceleration of SaaS Revenues Q1 FY22 $ 55.38 Mn Q1 FY22 4083 Mn Q1 FY22 1002 Mn 21% Q1 FY21 $ 45.60 Mn 18% Q1 FY21 3459 Mn 48% Q1 FY21 679 Mn TOTAL REVENUE (US $) TOTAL REVENUE (INR) EBITDA (INR) Q1 FY22 792 Mn Q1 FY22 777 Mn Q1 FY22 792 Mn 32% Q1 FY21 600 Mn 102% Q1 FY21
Slide 20: Strong Revenue Growth and Operating Leverage
Strong Revenue Growth and Operating Leverage Q1 FY22 2296 Mn Q1 FY22 56% Q1 FY22 25% Q1 FY22 3099 Mn 24% Q1 FY21 1846 Mn Q1 FY21 53% Q1 FY21 20% GROSS MARGIN (INR) GROSS MARGIN % EBITDA % COLLECTIONS (INR) Q1 FY22 131 Days Q1 FY22 286.9 Mn Q1 FY22 22.05 NET DSO INVESTMENT IN PRODUCT ANNUALISED EPS D
Slide 21: Total Revenue INR 4083 Mn in Q1 FY22
Total Revenue INR 4083 Mn in Q1 FY22 18% Y-o-Y Growth in total revenues 4083 3459 3428 Q1 Q1 Q1 FY20 FY21 FY22 Note : All figures are in INR Million unless otherwise mentioned 20 20
Slide 22: Steady growth in License linked revenue
Steady growth in License linked revenue Nearly Q1 FY22 REVENUE PERFORMANCE doubling in LICENSE LINKED REVENUE 6 years 58% 58% (License + SaaS/Subscription + AMC) is at 58% of total revenues vs 50% of total revenues in Q1 FY21 LICENSE REVENUE 54% 32% License Revenue is INR 792 Mn, 46% registering 32%
Slide 23: Revenue Mix – Currency Wise
Revenue Mix – Currency Wise Q1 FY 22 OTHERS, 8% AUD, 1% EUR, 6% USD, 38% INR, 22% CAD, 8% GBP, 17% 22 22
Slide 24: PAT and EBITDA
PAT and EBITDA 73% YoY 48% YoY Growth in PAT Growth in EBITDA 1002 737 679 426 117 34 Q1 Q1 Q1 Q1 Q1 Q1 FY20 FY21 FY22 FY20 FY21 FY22 PAT EBITDA Note : All figures are in INR Million unless otherwise mentioned 23
Slide 25: Collections and Net Cash
Collections and Net Cash 2182 13815 13702 13339 570 LTM Q1 LTM Q1 LTM Q1 Q1 Q1 FY20 FY21 FY22 FY21 FY22 -778 Q1 FY20 COLLECTIONS NET CASH Note : All figures are in INR Million unless otherwise mentioned 24
Slide 26: Healthy Pipeline
Healthy Pipeline The current funnel of Intellect (INR Mn) 46,302 ($628 Mn) Q1 FY22 41,777 ($573 Mn) Q4 FY21 40,200 ($530 Mn) Q1 FY21 38,118 ($ 517 Mn) 33,028 30,300 is accounted by 150 is accounted by 136 is accounted by 119 opportunities opportunities opportunities DESTINY DEALS Q1 FY22 Q4 FY21 Q1
Slide 27: Active Pursuits
Active Pursuits Q1 FY21 Q4 FY21 Won Lost Added Remarks Q1 FY 22 5 deals Won High Value 2 deal Lost Active 40 43 5 2 14 36 deals from Q4 21 50 Pursuits 14 new deals added 1 deal Won > INR 50 Cr 8 8 1 - 2 7 deal from Q4 21 9 2 new deals added 1 deal Won INR 30 Cr – 1 deal Lost INR 50 Cr 12 15 1 1 4 13
Slide 28: Financial Results for the First Quarter Ended June 30, 2021
Financial Results for the First Quarter Ended – June 30, 2021 Additional Information on function wise classification of statement of Profit and Loss of the Group (Consolidated Unaudited / Not Reviewed) INR Millions QUARTER ENDED YEAR ENDED Particulars June 30, 2021 June 30, 2020 March 31, 2021 March
Slide 29: Management Observations
MANAGEMENT OBSERVATIONS
Slide 30: Management Observations
Management Observations Arun Jain, Chairman and Managing Director Intellect has identified and adopted the five trends of technology- Technology ecosystem change, Micro services based Packaged Business Capabilities, API based architecture, Data as a new oil and Cloud as a scalable Fintech & Digital
Slide 31: In Summary
IN SUMMARY
Slide 32: Performance Delivered with Strong Foundation for Road Ahead
Performance Delivered with Strong Foundation for Road Ahead Seventh consecutive quarter of growth in revenues and profits STRONG REVENUE GROWTH Deals and Pipeline assure us BUILDING ON MARKET of continuing this trail LEADERSHIP Flywheel effect - Wins get ACCELERATION OF referenceability which get fu
Slide 33: Outlook
Outlook • Digital Acceleration is providing further more opportunities on the table as reflected in the increased Funnel • To service the expanded funnel, we need to invest in additional talent • Current demand for Digital talent is exploding. More investments are required to capacitize ourselves fo
Slide 34: Business Highlights
BUSINESS HIGHLIGHTS
Slide 35: iGTB Business Highlights
iGTB BUSINESS HIGHLIGHTS Manish Maakan Chief Executive Officer, iGTB
Slide 36: Business Highlights – iGTB
Business Highlights – iGTB WIN # 1 WIN # 2 WIN # 3 Continuing the GCC leadership A leading Canadian Bank Intellect continues its Malaysia journey (8 out of Top 9 Banks) a top has signed up for extension Leadership journey - a leading 3 GCC Bank signed up for Cloud capabilities for their Islamic bank
Slide 37: Business Highlights – iGTB
Business Highlights – iGTB A Top 20 US bank went live with Liquidity Management Client Investment Sweeps with ability to produce early simulations to identify 01 fund-wise subscriptions and redemptions enabling the fund manager to make early decisions A Top 3 Australian bank went live with Virtual A
Slide 38: Business Highlights – iGTB
Business Highlights – iGTB LMS 21.1 Text Market leading Liquidity Management product rearchitected with micro-services, cloud-native platform, with improved UI VA 21.1 Cloud-Native Virtual Account solution with open banking APIs with integrated POBO, Text COBO and In-House Banking capabilities, Fron
Slide 39: Customers as promoters
Reinventing and reimagining DTB Cash Management & Channel Technology Transformation with iGTB Customers as promoters “We looked worldwide, for platforms that could serve corporates. If those platforms that actually existed, that could accelerate our time to market, in terms of bringing in capabiliti
Slide 40: Wednesdays with iGTB
Balaji Natarajan f Robert Langley ° Head of Payments & Associate Director, Payments Lead, Wednesdays with iGTB Cash Management, Asia, ANZ ‘APAC, Accenture \ Tre Apr r mamta tual Accounts: Balakrishnan Narasimhan Senior Vice President & —— Head of Solution Consulting, iGTB ANZ~% accenture Philippe Pe
Slide 41: Led by World Class Leaders
Led by World Class Leaders MANISH MAAKAN ANDREW ENGLAND DAVE REVELL TED MALLOCH VIKRAM SUD Chief Executive Officer Director, Head of Strategy Strategic Advisor Strategic Advisor Strategic Advisor 32 YEARS 37 YEARS 35 YEARS 35 YEARS 30 YEARS INTELLECT, GE, INTELLECT,MCKINSEY, INTELLECT, CIBC, BMO, IN
Slide 42: iGCB Business Highlights
iGCB BUSINESS HIGHLIGHTS Rajesh Saxena, Chief Executive Officer, Intellect Global Consumer Banking
Slide 43: Our Strategy for Growth - Retail Banking (Recap)
Our Strategy for Growth - Retail Banking (Recap) Latest Technology Architecture Europe Product Growth Marketplace Engines 42
Slide 44: Latest Technology Architecture
Latest Technology Architecture • Microservices architecture • Container technology for deployment flexibility and scaling • Continuous delivery: • DevOps culture • Cloud agnostic • Private, Public and Hybrid cloud models 43
Slide 45: Our Strategy for Growth
Our Strategy for Growth Latest Technology Architecture Europe Product Growth Marketplace Engines 44
Slide 46: Product Growth Engines
Product Growth Engines 01 02 03 04 Quantum IDC 21 IDL 21 Digital Bank Banking Adding Added Won ADCB In Last 2 in 5 Islamic Islamic Digital Bank opportunities Banking Banking Deal which will capabilities capabilities close in FY22 45
Slide 47: Our Strategy for Growth
Our Strategy for Growth Latest Technology Architecture Europe Product Growth Marketplace Engines 46
Slide 48: Europe Strategy
Europe Strategy Building Solution, Delivery and 1 hosting capabilities in Germany and UK 2 Marquee clients – Cater Allen Europe 2 and Otto. Last 2 in many deals Fully Hosted IDC Solution in 3 AWS Germany and UK 4 Regulatory, open Banking, PSD2 Compliance 5 iKredit360 Launched in Europe 47
Slide 49: Launch of iKredit360, a Curated Credit Solution for Europe
LAUNCH OF iKREDIT360 A CURATED CREDIT SOLUTION FOR EUROPE Increasing Brand Awareness Digital Marketing • Product launch in June • Social Media Campaigns – Europe- focused promotions around the • Launched a differentiated website iKredit360 launch. with leader speak, success stories and customer test
Slide 50: A Differentiated Website to Capture the Value Proposition of iKredit360
A DIFFERENTIATED WEBSITE TO CAPTURE THE VALUE PROPOSITION OF iKREDIT360
Slide 51: Our Strategy for Growth
Our Strategy for Growth Latest Technology Architecture Europe Product Growth Engines Marketplace 50
Slide 52: Marketplace - IDC
Marketplace - IDC Pay Agg / Payments Pay Fac 06 01 Clearing and Recon Payments Others (12) Clearing, Recon (6) Reg Fraud and Reportiing Security 05 02 AI/ML/RPA (4) Regulatory, Compliance, Fraud (9) KYC led Onboarding PFM Advanced Engagment Analytics (6) and CXP (8) CRM Voice 04 03 (Servicing) Banki
Slide 53: Intellect SEEC Business Highlights
Intellect SEEC BUSINESS HIGHLIGHTS Banesh Prabhu, Chief Executive Officer, Intellect SEEC
Slide 54: Intellect SEEC - Business Highlights: Technology
Intellect SEEC - Business Highlights Technology Technology ● Intake & Routing (Xponent Lite) product in development which will be our lead product & a key differentiator ● Adding prior carrier loss ingestion to Magic Submission MVP to double our average revenue; 2 pilots identified; Ameritrust and L
Slide 55: Intellect SEEC - Business Highlights: Markets
Intellect SEEC - Business Highlights Markets Technology • Strong pipeline with major global insurance company looking for us to replace a competitor • Cross sell with existing customers is effective: Amerisure & Ameritrust magic submission uptake • IDX.ai gains good traction in APAC with 5 deals in
Slide 56: Intellect SEEC - Product Leadership Journey
Intellect SEEC - Business Highlights Technology Product Leadership Journey ● New strategy is resonating with marketplace – “A Modernization Partner” ● Fewer deals closed than anticipated but at higher average revenue size, and implementation fee revenue will be higher than anticipated (close to $1M
Slide 57: Intellect SEEC - Brand
Intellect SEEC - Business Highlights Technology Brand • Shifted from a AI product company to a AI powered transformation partner for America and introducing Transformation Accelerators leveraging UK success • Creating a cohesive overarching brand with geo specific content & messaging in website 2.0
Slide 58: Recent Analyst & Industry Awards and Recognition
Recent Analyst & Industry Awards and Recognition – Data & AI 2020 Technology 2020 2020 2020 Intellect Risk Analyst Intellect Risk Analyst cited among leading implementation at Directed Data Platforms Liberty Mutual featured providing answers to as a case study in the specific questions from Data and
Slide 59: iRTM, iWealth and iGOV Business Highlights
iRTM, iWealth and iGOV BUSINESS HIGHLIGHTS
Slide 60: iRTM – Business Highlights
iRTM – Business Highlights Wins & Go Lives Technology & Product Leadership Journey ● One of the largest private commercial bank in Vietnam upgraded Capital Cube treasury solution • APIs for Trade Data & Market Data ● A leading financial services company went live with Capital Cube treasury • Postgre
Slide 61: iWealth – Business Highlights
iWealth – Business Highlights Technology Product & Technology Product & Technology Brand ● Platform to support Sustainable ● Digital signature enablement ● Intellect’s Wealth Ranked #2 investment with ESG Analytics using Docusign and workflow in IBSI Leaderboard in and Theme Based Investing automati
Slide 62: iGov - Business Highlights
iGov - Business Highlights Technology Technology Markets Brand ● Technology Advancement and ● Products Listed: 1.58 Mn ● Order received: USD 2.44 Procurement rich Billion. ● Category Introduced: 519 functionalities – BOQ based Bidding, Demand ● Order Volume: 0.46 Mn aggregration. ● Sellers registere
Slide 63: Stock Information
Stock Information Stock Performance (July 2020 – June 2021) 724 15,722 29,168 Stock Data As on 30th June 2021 As on 30th June 2021 Shareholding Pattern Market Cap 9665 Cr. Stock Price ₹ 724 62 52 Week (High / Low) ₹ 822.55/107.15 NSE / BSE - Symbol INTELLECT / 538835 No. of Shares Outstanding 13,37,
Slide 64: Contacts
Contacts Venkateswarlu Saranu Praveen Malik Nachu Nagappan Chief Financial Officer Vice President – Investor Relations AVP – Corporate Communication venkat.saranu@intellectdesign.com +91 8939782837 +91 8939619676 praveen.malik@intellectdesign.com nachu.nagappan@intellectdesign.com 63
Slide 65: Copyright notice
© 2021, Intellect Design Arena Limited. All rights reserved. These materials are confidential and proprietary to Intellect and no part of these materials should be reproduced, published in any form by any means, electronic or mechanical including photocopy or any information storage or retrieval sys
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