Slide 1: Exchange filing cover letter
February 07, 2020 To The National Stock Exchange of India Limited BSE Limited Mumbai, India Dear Sir/Madam, Sub: Subex Limited “The Company”- Investor Presentation on February 10, 2020 As per Regulation 30 of the SEBI (LODR) Regulations, 2015, please find enclosed the Investor presentation for Q3 of
Slide 2: Subex Limited Investor Presentation – Q3FY20
Subex Limited Investor Presentation – Q3FY20 February 7, 2020
Slide 3: Forward looking statement
Forward looking statement Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks an
Slide 4: Agenda
Agenda Company Overview Investment Rationale Quarterly Financial Performance Awards & Recognitions 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Snapshot
Snapshot Financial Performance 9MFY20 □ Leading telecom analytics solution provider REVENUE □ Pioneer in enabling Digital Trust for businesses Nature of Business globally 6% □ Focus on privacy, security, risk mitigation, ₹ 2,607.1 Mn predictability and confidence in data EBITDA □ Managed by handpick
Slide 7: Subex Today
Subex Today 1994 + Years of Experience Foundation of 800+ Company Employees 300+ 90+ 200+ Global Installations Countries Customers Globally 35+ US$ 2 mn US$ 55 mn Industry Awards Order Book in FY19 R&D spend in new areas 6
Slide 8: Vision Statement
Vision Statement PURPOSE VISION Experience the thrill of unlocking Unlocking possibilities by being the World possibilities Leader in digital trust OUR VALUES THINK CUSTOMER MAKE IT HAPPEN DELIVER VALUE BE OPEN. BE FAIR. WIN TOGETHER Largest & most trusted player in digital trust as measured by numb
Slide 9: 3 Horizon Strategy for Growth
3 Horizon Strategy for Growth Horizon 1 Horizon 2 Horizon 3 Core areas Immediate Long Term Growth Growth Enhance the core Growth in new Invest in areas Emerging Areas ― Revenue Assurance (Multi-Vertical SaaS) ― Fraud Management ― IoT Security ― Asset Assurance (Multi-vertical product) ― Crunch Metri
Slide 10: Subex – Partner for Digital Trust
Subex – Partner for Digital Trust Digital Trust 9
Slide 11: Investment Rationale
Investment Rationale □ Leader in Digital Trust space and help businesses thrive by leveraging Digital Trust as a competitive advantage □ Making strong inroads in the multi vertical IoT Security space; IoT Security Market is expected to touch US$ 4.5 billion by 2022 □ Incubating virtual startups with
Slide 12: Quarterly Financial Performance
Quarterly Financial Performance 11
Slide 13: Financial Highlights – Q3FY20
Financial Highlights – Q3FY20 q Revenue was at Rs 960.9 Million, up 12.2% Q-o-Q and up 16.8% Y-o-Y q EBITDA (ex-forex) was at Rs 230.3 Million, up 28.0% Q-o-Q and up 204% Y-o-Y q EBITDA margin stood at 24.0%, up 297 bps Q-o-Q and up 1,477 bps Y-o-Y q Profit before tax & exceptional items was at Rs 1
Slide 14: Financial Highlights – 9MFY20
Financial Highlights – 9MFY20 q Revenue was at Rs 2,607.1 Million, up 5.9% Y-o-Y q EBITDA (ex-forex) was at Rs 562.0 Million, up 130% Y-o-Y q EBITDA margin stood at 21.6%, up 1,164 bps Y-o-Y q Profit before tax & exceptional items was at Rs 434.6 Million, up 62.3% q Net loss was at Rs (3,011.3) Mill
Slide 15: Financial Summary – Q3FY20
Financial Summary – Q3FY20 Profit Before Tax & Exceptional Operating Revenue Revenue EBITDA Chart Title Chart Title Item 19.7% 24.0% 21.0% In Rs Million In Rs Million In Rs Million 13.9% 9.2% 5.9% 823 857 961 76 180 230 49 171 134 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 EBITDA
Slide 16: Revenue Metrices – Q3FY20
Revenue Metrices – Q3FY20 Revenue by Region Revenue by Service 14% 18% 18% 4% 32% 29% 4% 4% 37% 31% 64% 57% 53% 33% 34% 35% 40% 25% 29% 18% 21% Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 License & Customisation Support Services & Others Americas EMEA India APAC & RoW Managed Services 15
Slide 17: Operating Metrices – Q3FY20
Operating Metrices – Q3FY20 Debtors Days Employee Headcount 121 1042 100 101 925 909 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 16
Slide 18: Free Cash Flow Overview
Free Cash Flow Overview 575.8 633.5 479 508.2 523.4 In Rs Million 352 638 663.8 539.2 536.4 545.8 385 -62.2 -30.3 -60.2 -28.3 -22.4 -33 FY15 FY16 FY17 FY18 FY19 9MFY20 Operating Cash Flow Capex 17
Slide 19: Consolidated Financial Performance – Q3FY20
Consolidated Financial Performance – Q3FY20 Particulars Q3 FY20 Q2 FY20 Q-o-Q Q3 FY19 Y-o-Y 9M FY20 9M FY19 Y-o-Y (All Figures in Rs Million) 31-Dec-19 30-Sep-19 Growth % 31-Dec-18 Growth % 31-Dec-19 31-Dec-18 Growth % Income Revenue from operations 960.9 856.7 12% 822.8 17% 2,607.1 2,462.5 5.9% Oth
Slide 20: Consolidated Financial Performance – 9MFY20
Consolidated Financial Performance – 9MFY20 Particulars 9M FY20 FY 19 FY 18 FY 17 FY 16 (All Figures in Rs Million) 31-Dec-19 31-Mar-19 31-Mar-18 31-Mar-17 31-Mar-16 Income Revenue from operations 2,607.1 3,481.2 3,243.2 3,573.3 3,224.6 Other income 22.8 10.1 14.0 115.4 18.0 Total income 2,629.9 3,4
Slide 21: Key Clients
Key Clients 200+ Global customers 300+ Installation in 90+ Countries 20
Slide 22: Executive Management Team
Executive Management Team Vinod Kumar Shankar Roddam Venkatraman GS Mohan Sitharam CEO & Managing Director Chief Operating Officer Chief Financial Officer Chief Human Resources Officer Vinod is responsible for leading the Shankar is the Chief Operating Venkatraman GS is the Chief Mohan manages human
Slide 23: Executive Management Team
Executive Management Team Rohit Maheshwari Kiran Zachariah Suraj Balachandran Bhavna Singh Head of Strategy & Products Head of IoT security Head of Sales – EMEA & APAC General Counsel Rohit is responsible for delivering Kiran is a leader in the field of IoT Security Suraj is responsible for strategy
Slide 24: Awards & Recognition
Awards & Recognition 35+ Winner at Aegis 2016 Graham Bell Winner at Converge Best Fraud Awards 2017 2018 - Big Data & Prevention – Data Analytics Project Science Award Industry recognized 2017 - Innovation in Managed Services and Security & awards Assurance 23
Slide 25: Thank You
Thank You investorrelations@subex.com | +91 806659 8700 dpingle@christensenir.com | +91 02242150210
Slide 26: Subex Capital Restructuring – Key Highlights
Subex Capital Restructuring – Key Highlights Investor update February 07, 2020 Proprietary and Confidential www.subex.com
Slide 27: Subex Capital Restructuring
Subex Capital Restructuring Key Objective • To support future prospect of growth and add value to the Company and its Shareholders, the Company now proposes to re-align the relationship between its capital and assets 2
Slide 28: Reduction of Share Capital
Reduction of Share Capital Reduction of Capital – Change in face value of equity shares from existing Rs 10 to Rs 5 • Key Benefits • Would enable the Company to have a rational structure - Commensurate with its remaining business and assets • Realistic reflection of the financial performance and bet
Slide 29: Reduction of Share Capital .. cntd
Reduction of Share Capital .. cntd • Other Key Features • Would help the Company position itself better in the market, and undertake business activities efficiently • No outlay on the part of the company and therefore, liquidity position remains intact • No adverse impact on the Company’s ability to
Slide 30: Indicative Time lines
Indicative Time lines Particulars Indicative timelines Application to Stock Exchanges for NOC/Observation letter, post board meeting on 7 th Feb 2020 8 Feb 2020 Receipt of comments from SEBI/Stock exchanges followed by NOC/Observation letter 45 -60 days (approx.) Intimate the stock exchange about no
Slide 31: FAQs
FAQs 1. What is the objective of the proposed capital reduction? A. The proposed capital reduction would facilitate the transition by the Company to a rational financial structure, which is commensurate to its business and assets, and would be instrumental in supporting the future growth prospects o
Slide 32: FAQs (approvals, liquidity, listing)
5. What approvals would the proposed capital reduction be subject to? A. The proposed scheme for reduction of capital would be effective only after necessary approvals/ no-objection certificates have been received from the stock exchanges, shareholders (vide special resolution – to be passed through
Slide 33: Thank you
Thank you Proprietary and Confidential www.subex.com