28 slides from Newgen Software Technologies's earnings presentation, May 15, 2019
Slide 1: Reinvent Your Workplace: Q4 FY'19 and FY'19 Investor Update
May 2019 NEWGEN SOFTWARE Reinvent Your Workplace Q4 FY’19 and FY’19 Investor Update COPYRIGHT COPYRIGHT 2016, 2019, NEWGEN NEWGEN SOFTWARE SOFTWARE INC.
Slide 2: Newgen Software Technologies: Software products company
NEWGEN SOFTWARE TECHNOLOGIES: Software products company providing enterprise-wide, mission critical solutions helping organisations drive digital transformation and competitive differentiation Digitise Process & Adapt Communicate Customer Enterprise Business Communication Content Process Management
Slide 3: Digital Platform for a Connected Enterprise
Digital Platform for a Connected Enterprise....... Orchestrate with BPM • Build agile, nimble and responsive enterprise • Bridge business silos and integrate operations • Empower people through automated and flexible processes Engage with CCM Contextualize with ECM • Unify customer communication • D
Slide 4: With Enhanced Capabilities
......with Enhanced Capabilities • Respond to customer sentiment across channels • Enable effective and scalable customer service operations Sense and Respond with Digital Sensing Last Mile Process Automation with Robotic Anytime-Anywhere Workplace with Enterprise Process Automation Mobility • Deliv
Slide 5: Our Market Opportunity
Our Market Opportunity Total Horizontal Market Size in 2017 estimated at $22.5bn 25 Market expected to grow to $30.2bn 1.5 growing at 7-10% by 20 2022 6.1 Figures in $bn 15 22.5 30.2 10 14.9 5 0 ECM BPM CCM Total COPYRIGHT 2019, NEWGEN SOFTWARE 5 Source: Ovum – Business Software Industry Report: Dig
Slide 6: Newgen Overview
Newgen Overview* 540+ 66 5 Active Customers(1) Core countries Verticals 81 new logos added in FY’19 Strong growth in Healthcare and Insurance verticals Strong Industry 2,800+ 44 Gartner Recognition Employees Patent Filings 6 patents granted in FY’19 (1) Invoiced in the last 12 months (2) All figures
Slide 7: Newgen Overview - Financial Snapshot (FY'19)
Newgen Overview* - Financial Snapshot (FY’19) 6,206m 22.7% 26.7% FY19 Revenue FY’19 Return on FY’19 Return on 21.0% Average Equity Average Capital Employed2 YoY Growth 20.6% 1,022m 817m EBIDTA Margins 15.9% Net Operating Free Cash Flow3 Cash Flow PAT Margins EBIDTA & PAT Margins expanded 70% increas
Slide 8: Strong Industry Recognition Validates Culture of Innovation
Strong Industry Recognition Validates Culture of Innovation Gartner WaveTM A Challenger in Magic Quadrant for Content Services “ Leader” in the Forrester WaveTM: Enterprise Content Platform, 25 October 2018, Karen A. Hobert et al ECM Named on all 5 use-cases in Critical Capabilities for Content Serv
Slide 9: Driving Innovation Through R&D to Expand Product Portfolio
Driving Innovation Through R&D to Expand Product Portfolio R&D Expenses Product Pipeline 320+ 44 (INRm) Content and Process Patents Filings(1) R&D Employees Analytics (with 11 Patents Granted) FY17 313 Content Services Skilled R&D team with deep product Platform domain expertise Corrus Expansion
Slide 10: Focused Go-To-Market Strategy
Focused Go-To-Market Strategy Strategy Across Regions and Verticals is Based on Direct Presence Supported by Partner Ecosystem 300+ Employees in Sales & Marketing Supported by Differentiated 'land and expand' model Large Network of Channel Partners of 300+ Sale of complete functionality with ini
Slide 11: Focus on larger deal sizes in FY'19
Focus on larger deal sizes in FY’19 FY19 Revenue Concentration by Increase in number of deals of over Rs 10 crores Customers 9 4 Top 10, 28% Top 5, 19% FY’18 FY’19 Increase in number of deals of over Rs 5 crores Top 20, 41% 28 21 Increasing average ticket size FY’18 FY’19 COPYRIGHT 2019, NEWGEN SOFT
Slide 12: Diversification Across Verticals and Geographies
Diversification Across Verticals and Geographies FY19 Revenue Split by Vertical FY19 Revenue Split by Geography APAC (Ex-India) Others 11% 15% India 32% Healthcare 12% Banking 48% USA 28% Insurance 6% BPO/IT 7% Govt/ PSUs 12% EMEA 29% Multi-vertical industry expertise Well spread across geographies
Slide 13: Multiple Revenue Streams
Multiple Revenue Streams FY19Revenue 5 year CAGR Split Growth Sale of Products 25% Sale of licenses for the software products 25% Sale of Services (27%)Annuity-based (~49%) ATS / AMC 17% Annual maintenance contracts and technical support 22% Cloud functionality with subscription fees on a Per User S
Slide 14: Shift in Seasonality
Shift in Seasonality Revenue Share by Quarter (FY’18) Revenue Share by Quarter (FY’19) 40% 36% 35% 33% 35% 30% 30% 26% 25% 24% 25% 23% 24% 20% 20% 17% 17% 15% 15% 10% 10% 5% 5% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Increase in Annuity Revenues including Cloud leading to normalization of seasonal variations
Slide 15: Experienced Senior Management Team with Distinct Operating Culture
Experienced Senior Management Team with Distinct Operating Culture Management Organisation Structure Diwakar Nigam T.S. Varadrajan Priyadarshini Nigam Chairman and Managing Director Whole Time Director Whole Time Director • Co-founded Newgen in 1992 • Co-founded Newgen in 1992 • Been with Newgen sin
Slide 16: 5 Year Financial Overview
5 Year Financial Overview EBITDA(1) (INRm) and Total Revenue (INRm) PAT (INRm) and PAT Margins EBITDA(1) Margins 7,000 6,206 1,400 1,200 6,000 1,277 1,022 5,124 1,200 1,000 5,000 4,271 975 1,000 4,000 800 729 3,468 800 16% 3,085 702 21% 3,000 600 578 513 600 19% 464 14% 2,000 19% 393 400 15% 16% 12%
Slide 17: Q4 FY'19 & FY'19 Results
Q4 FY’19 & FY’19 Results
Slide 18: Financials at a Glance – FY'19 v/s FY'18
Financials at a Glance – FY’19 v/s FY’18 EBITDA(1) (INRm) and EBITDA(1) Total Revenue (INRm) PAT (INRm) and PAT Margins Margins 7000 6,206.4 1200 6000 1300 1,277.2 1,022.1 5,124.3 1000 5000 1100 975.4 20.6% 800 728.9 4000 900 3000 600 15.9% 700 19.0% 14.0% 2000 500 400 300 1000 200 100 0 0 FY'18 FY'
Slide 19: Financial Summary (Consolidated)
Financial Summary (Consolidated) Q4FY19 Q4FY18 YoY Q3FY19 QoQ FY19 FY18 YoY Particulars Metrics (Unaudited) (Unaudited) Growth (Unaudited) Growth (Unaudited) (Unaudited) Growth Revenu Revenue from operations 2,039.7 1,838.3 11% 1,605.4 27% 6,206.4 5,124.3 21% e (INR Mn) Other Income 25.2 26.7 -6% 42
Slide 20: New Logo Wins – FY'19
New Logo Wins – FY’19 Major deals include: The National Records and Archives Authority (NRAA) of the Sultanate of Oman has selected Newgen and its front-end partner Bahwan IT LLC to deploy solutions which will modernize electronic document and records management system at NRAA 81 and 17 other gove
Slide 21: Significant Wins – FY'19
Significant Wins – FY’19 APAC and USA regions on a stronghold: Revenue Growth – FY’19 (YoY) 60% 55% APAC & EMEA Region 46% 50% Served large existing Banking & Financial Services clients for 40% new license sales and implementation 30% 20% USA/ Americas Region 11% Served two large existing health
Slide 22: Business Highlights – Q4 FY'19
Business Highlights – Q4 FY’19 Strong Industry Recognition continues: Gartner has cited Newgen as a ‘Niche Player’ in the Gartner Magic Quadrant for Intelligent Business Process Management Suites (iBPMS) 2019* Positioned as a ‘Strong Performer’ in The Forrester Wave™: Digital Process Automation Fo
Slide 23: Business Highlights – Q4 FY'19
Business Highlights – Q4 FY’19 Improved positioning through global alliance: Announced a global strategic alliance with Kodak Alaris providing customers and channel partners with access to best-in- class solutions to help organizations drive digital business. Under the agreement, Newgen and Kodak A
Slide 24: Debtors Days
Debtors Days Debtor Days (Based on Gross Debtors) Debtor Days (Based on Net Debtors) (INRm) (INRm) 187 days 158 days 149 days 172 days 2,920 2,527 2,634 2,220 March 31, 2018 March 31, 2019 March 31, 2018 March 31, 2019 Debtor Days Gross Trade Receivables (INR Mn) Debtor Days Net Trade Receivables (I
Slide 25: Annexure
Annexure
Slide 26: P&L Statement
P&L Statement (All amounts in INRm, except per share data and unless Q4 FY 2019 Q4 FY 2018 Q3 FY 2019 FY 2019 FY 2018 otherwise stated) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue Revenue from operations 2,039.7 1,838.3 1,605.4 6,206.4 5,124.3 Other income 25.2 26.7 42.4 203.
Slide 27: Balance Sheet
Balance Sheet (All amounts in INRm, except per (All amounts in INRm, except per share data and share data and unless otherwise unless otherwise stated) 31-Mar-19 31-Mar-18 stated) 31-Mar-19 31-Mar-18 Assets Equity & Liabilities Non-current assets 1,882.6 1,288.8 Equity 4,967.1 4,052.2 Share capital
Slide 28: Thank you
Disclaimer This presentation may contain certain forward looking statements concerning Newgen Software Technologies’ future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forwar