23 slides from Newgen Software Technologies's earnings presentation, Jan 24, 2019
Slide 1: Newgen Software Investor Presentation – Q3 FY'19 and 9M FY'19 Results
Jan 2019 NEWGEN SOFTWARE Reinvent Your Workplace Investor Presentation – Q3 FY’19 and 9M FY’19 Results 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: What we do?
What we do? Reinvent workplaces by enhancing customer facing processes Manage Manage Manage Complex Outbound Digital Processes & Content Communication Workflows COPYRIGHT 2019, NEWGEN SOFTWARE 3
Slide 4: How we do it?
How we do it? We provide low-code and flexible platforms that enable organisations to easily and rapidly build powerful applications addressing their strategic business needs Holistic process Flexible visual interface experience - Seamless integrations with minimal coding connecting data, people, pr
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 Source: Ovum – Business Software Industry Report: Digitalisation, IT modernisation and
Slide 6: Newgen Overview
Newgen Overview* 520+ 60+ 5 Active Customers(1) Core countries Verticals Strong 2,600+ 37 Industry Employees Gartner Recognition Patents Applied (250+ in R&D) (1) Invoiced in the last 12 months (2) All figures as of March 2018 COPYRIGHT 2019, NEWGEN SOFTWARE 6
Slide 7: Newgen Overview - Financial Snapshot (FY'18)
Newgen Overview* - Financial Snapshot (FY’18) 5,124m 22.3% 26.7% FY18 Revenue FY’18 Return on FY’18 Return on 20.0% Average Equity Average Capital YoY Growth Employed 602.4m 19% Net Operating 132.2m Cash Flow Net Debt EBIDTA Margins 1) All figures as of March 2018 COPYRIGHT 2019, NEWGEN SOFTWARE 7
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 ECM Platform, Management – Transactional Content Services, 25 October 2018, Karen A. Hobert et al Q2 2017 A Visionary i
Slide 9: Focused on Driving Innovation Through R&D to Expand Product Portfolio
Focused on Driving Innovation Through R&D to Expand Product Portfolio R&D Expenses Product Pipeline 250+ 37 (INRm) Patents Applied(1) ECM NXT R&D Employees (with 5 Registrations) FY16 250 Virtual Repository Skilled R&D team with deep product Services domain expertise Corrus Expansion of product
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 270+ 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: 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 Director Whole Time Director • Co-founded Newgen in 1992 • Co-founded Newgen in 1992 • Been with Newgen since 1997 F
Slide 12: 5 Year Financial Overview
5 Year Financial Overview EBITDA(1) (INRm) and Total Revenue (INRm) PAT (INRm) and PAT Margins EBITDA(1) Margins 14% 19% 6,000 800 1,100 19% 19% 729 5,124 975 15% 16% 700 5,000 16% 900 12% 4,271 600 11% 4,000 702 8% 513 3,468 700 500 464 3,085 578 411 3,000 400 2,484 481 500 393 300 278 2,000 300 20
Slide 13: Q3 FY'19 & 9M FY'19 Results
Q3 FY’19 & 9M FY’19 Results
Slide 14: Financial Summary (Consolidated)
Financial Summary (Consolidated) Q3FY19 Q3FY18 YoY Q2FY19 QoQ 9M FY19 9M FY18 YoY Particulars Metrics (Unaudited) (Unaudited) Growth (Unaudited) Growth (Unaudited) (Unaudited) Growth Revenu Revenue from operations 1,605.4 1,213.5 32% 1,496.6 7% 4,166.7 3,286.0 27% e (INR Mn) Other Income 42.4 16.8 1
Slide 15: New Logo Wins
New Logo Wins 12 51 New Logo Wins New Logo Wins during Q3 FY’19 during 9M FY’19 Major deals include: License agreement of over Digital Transformation 2 new deals in the 5 new logo wins Rs 5 crore with a leading initiatives under 2 Smart Americas region of over Rs 1 public sector bank in India City p
Slide 16: Business Highlights – Q3 FY'19
Business Highlights – Q3 FY’19 APAC and USA regions on a stronghold: 158% 78% USA/ Americas Region 7% 2% Served two large existing healthcare clients including APAC executing a license agreement for a large corporation serving APAC EMEA INDIA 5.5mn members, focusing primarily on providing governme
Slide 17: Diversification Across Verticals and Geographies – 9M FY'19
Diversification Across Verticals and Geographies – 9M FY’19 9M FY19 Revenue Split by 9M FY19 Revenue Split by Segment 9M FY19 Revenue Split by Vertical Geography Scanning APAC 3% (Ex-India) Others Implement 10% Sale of 17% ation Products India 19% 26% 32% Banking Healthcare 45% 14% USA SaaS 4% 31% I
Slide 18: Business Highlights – Q3 FY'19: Robust Cloud Business Performance
Business Highlights – Q3 FY’19 Robust Cloud Business Performance 79% 121% Rs 67.7Mn Rs 173.7Mn Rs 37.9Mn Rs 78.6Mn APAC APAC Q3 FY’18 Q3 FY’19 9M FY’18 9M FY’19 Cloud/ SaaS Revenues Cloud/ SaaS Revenues COPYRIGHT 2019, NEWGEN SOFTWARE 18
Slide 19: Business Highlights – Q3 FY'19
Business Highlights – Q3 FY’19 Strong Industry Recognition continues: Recognized as a Challenger in Gartner’s 2018 Magic Quadrant for Content Services Platforms* Awarded the Dun & Bradstreet – RBL Bank ‘SME Business Excellence Award 2018’ in the mid-corporate segment for excellence in ‘IT & IT Ena
Slide 20: Debtors Days
Debtors Days Debtor Days (Based on Gross Debtors) Debtor Days (Based on Net Debtors) 2,495 2,772 2,173 2,560 (INRm) 1,512 162 days 2,202 (INRm) 180 days 168 days 155 days 132 days 116 days Dec 31, 2017 Sep 30, 2018 Dec 31, 2018 Dec 31, 2017 Sep 30, 2018 Dec 31, 2018 Debtor Days Net Trade Receivables
Slide 21: Annexure
Annexure
Slide 22: P&L Statement
P&L Statement (All amounts in INRm, except per share data and unless Q3 FY 2019 Q3 FY 2018 Q2 FY 2018 9M FY 2019 9M FY 2018 otherwise stated) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue Revenue from operations 1,605.4 1,213.5 1,496.6 4,166.7 3,286.0 Other income 42.4 16.8 58.
Slide 23: 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