Slide 1: Intellect – Exchange intimation letter
intellect® • • Design for Digital Inteliect/SEC/2019-20 May 02, 2019 1. The National Stock Exchange of India ltd., Scrip Code: th Exchange Plaza, 5 Floor, Plot No. Cl1, G Block, Bandra Kurla INTELLECT Complex, Bandra (E), Mumbai - 400 051. 2. The BSE ltd. Scrip Code: 1" Floor, New Trade Ring, Rotund
Slide 2: Leading the Transformation Agenda – Q4 FY19 & FY19 Results
CONTEXTUAL AND DIGITAL Leading the Transformation Agenda Q4 FY19 & FY19 Results ending 31st March, 2019 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: Financial Highlights, Market, Customer & Product, Operational Performance, Way Forward
Financial Market, Customer Operational Way Forward Highlights & Product Performance 2
Slide 5: Calibrated Predictable Growth – Financial Highlights
Calibrated Predictable Growth 1 Financial Highlights 3
Slide 6: Promise Delivered – 2018-19 Financial Highlights
2018-19 1 Financial PROMISE DELIVERED Highlights 65 % of Revenue License Growth - 67.4% YoY License Value Per from Advanced deal $ 947K up from Market* $ 579 K in FY 18 04 Top 20 customers yield EBITDA Growth 03 05 an average Revenue of - Rs.148.50 Crs INR 42.13 Cr as against (Up by 144.16%) INR 31.
Slide 7: Executive Summary – FY19 and Q4 FY19
Executive Summary – FY 19 and Q4 FY 19 E1: Revenue E2: License Revenue FY 19 FY 19 • Total Revenue for this year (FY19) grew by 36.4% and stood at INR 1458.73 • License Revenue registered CAGR of 41.4% over the last 4 years Cr as against INR 1069.48 Cr last year. Revenue registered CAGR growth of 24
Slide 8: Executive Summary – FY19 and Q4 FY19
Executive Summary – FY 19 and Q4 FY 19 E3: Gross Margin, EBITDA and PAT E4: Order backlog – Cloud/Subscription deals FY 19 • Order backlog relating to GeM - INR 400 Cr as of Q4 FY 19 • Gross Margin for this year (FY 18-19) stood at INR 721.56 Cr as • Order backlog relating to other Cloud deals - INR
Slide 9: Executive Summary – FY19 and Q4 FY19
Executive Summary – FY 19 and Q4 FY 19 E6: Collections and Investment in Product Development (Capitalised) E7: Digital led wins FY 19 • Intellect was awarded 47 Digital led wins including 13 large Digital Transformation deal wins in FY 19 • Collections for FY19 stood at INR 1310.8 Cr • Q4 FY19 recor
Slide 10: Annual FY19 – Registering 36.4% growth
Annual FY19 – Registering 36.4% growth 1 Financial Highlights FY 19REVENUE (INR) FY 19 REVENUE (US $) EBITDA (INR) GROSS MARGIN (INR) 1458.7 Cr 36.4% $ 208.27 Mn 25.5% 148.50Cr 144.16% 721.56 Cr 38.63 % FY 19 1458.7 Cr FY 19 $208.27 Mn FY 19 148.50Cr FY 19 721.56 Cr FY 18 1069.48 Cr FY 18 $ 165.93Mn
Slide 11: Q4 FY19 – Registering 31.3% growth YoY
Q4 FY19 – Registering 31.3% growth YoY 1 Financial Highlights Q4FY 19REVENUE (INR) Q4 FY 19 REVENUE (US $) EBITDA (INR) GROSS MARGIN (INR) 397.58 Cr 31.26% $ 56.41 Mn 19.83% 54.53 Cr 165.85% 207.24 Cr 39.29% Q4FY 19 397.58 Cr Q4FY 19 $ 56.41 Mn Q4 FY 19 54.53 Cr Q4 FY 19 207.24 Cr Q4 FY 18 302.89 Cr
Slide 12: Highest CAGR amongst IT Product Companies
1 Highest CAGR amongst IT Product Companies Financial Highlights 1459 228.14 345.17 194.08 1069 170.40 907 144.46 807 206.19 109 605 156.15 126 86 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Revenue (in INR) License Revenue AMC Revenue 10
Slide 13: 24.62% CAGR
1 Financial Highlights 1459 Total Revenue has grown at the rate of 1069 24.62% CAGR 907 807 From INR 605 Cr in FY 15 to INR 1459 Cr in FY 19 605 397.58 Cr 36.4% Q4 FY19 Revenue YoY Growth in FY19 31.26% YoY Growth FY 15 FY 16 FY 17 FY 18 FY 19 in Q4 FY19 Revenue (in INR) 11
Slide 14: Total Revenue & Cost Trend
Total Revenue & Cost Trend 1 Financial Highlights Beginning of Payoff Market Cycle INR Cr Deep Development 450 Product Investment Investment 397.5 400 383.1 377.9 350 300.1 302.9 342.1 336 345.5 300 263.84 266.1 240.9 244.9 247.9 282.4 286.7 236.6 250 218 246.7 254.6 229.4 234.7 224.7 225 200 204.8
Slide 15: FY Revenue at Constant Currency
FY 19 Revenue at Constant Currency 1 Financial Highlights Q4 FY19 $59.14 Mn $ 216.11 Mn Q3 FY19 FY 19 Revenue in $55 Mn Constant Currency Q2 FY19 $56.61 Mn Q1 FY19 $45.36 Mn 13
Slide 16: Revenue Growth – LTM Basis
REVENUE GROWTH 1 Financial Highlights LTM Basis 1459 1400 1364 1252 1200 1133 1069 1000 907 807 800 605 600 400 2014-15 2015-16 2016-17 2017-18 Q1 Q2 Q3 Q4 FY 2018-19 LTM = Revenue of current quarter + last three quarters 14
Slide 17: Market, Customer and Product
Market, Customer and Product 2 Market, Customer & Product 15
Slide 18: Focus on Advanced Markets
Focus on Advanced Markets 2 Market, Customer & Product ADV. 65% FY 19 Revenue from MARKETS JAS, Europe, Americas from 55% in FY 15 35% 65% GROWTH MARKETS JAS : Japan, Australia, Singapore
Slide 19: Top 20 customers yield average revenue over INR 40 Cr
2 Market, Customer 42.13 & Product 31.9 25.23 In FY 19, Our Top 20 in INR Cr 18.62 23.94 customers yield an average Revenue of Over INR 40 Cr 17
Slide 20: World's Best Banks 'Bank On' Intellect
WORLD’S BEST BANKS ‘BANK ON’ INTELLECT 2 Market, Customer & Product 240 + Over 240 Customers 91 Serving clients in 91 countries 18
Slide 21: World Is Turning Blue
WORLD IS TURNING BLUE 2 Market, Customer One of the Top 3 Financial Institutions in Advanced /Growth Markets & Product Rely On Intellect 3 4 AMERICAS EUROPE 7 • Canada • UK APAC • US • Spain • Australia • Chile • Austria • Singapore • Sweden • Vietnam 11 • Indonesia IMEA • Thailand • Malaysia 9 Coun
Slide 22: License Revenue 41.40% CAGR
2 Market, Customer & Product 345.17 License Revenue has grown at rate of 206.19 41.40 % CAGR from 86 126 156.15 INR 86 Cr in FY 15 to INR 345 Cr in FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 License Revenue 4 X Growth in License value 20
Slide 23: 4X Growth in Average License Value
4 X Growth in Average License Value 2 Market, Customer & Product $ 947 K in $ 000’s $ 579 K $ 423 K $ 291 K $ 263 K 21
Slide 24: Design Thinking for Operational Efficiency
Design Thinking for Operational Efficiency 3 Operational Performance 22
Slide 25: SG&A costs now at 31.21% of revenue in FY19
3 Operational Performance SG&A costs now at 31.21% of revenue in FY19 From 35.22% in FY18 and 43.62% in FY 17 Research, Engineering and Product development costs now at 14.91% of revenue in FY 19 From 17.18% in FY18 and 18.88% in FY17 We have invested additional INR 7 Cr in research proactively in F
Slide 26: Strong Order Backlog
Strong Order backlog 3 Operational Performance Q4 FY19 Q3 FY19 License Based License Based (License, AMC*, Implementation, etc.,) (License, AMC*, Implementation, etc.,) INR 1135 Cr INR 1108 Cr Subscription/Cloud Based Subscription/Cloud Based INR 295 Cr INR 280 Cr INR 400 Cr (Excluding order backlog
Slide 27: Collections and DSO
Collections and DSO 3 Operational Performance Collections by GEO GEO Americas Europe MEA India APAC Total INR (Cr) 57.11 109.53 47.04 48.23 67.44 329.35 $Mn 8.26 15.84 6.80 6.97 9.75 47.62 DSO GEO Americas Europe MEA India APAC Total Billed 38 26 114 47 33 47 DSO - including Customer 157 58 191 144
Slide 28: Currency wise Revenue Mix
Currency wise Revenue Mix 3 Operational Performance EUR 4% AUD 2% USD 26% OTHERS 6% 12% INR 26% CAD 24% GBP 26
Slide 29: Hedging Summary
Hedging Summary 3 Operational Performance FY 2019 – 20 FY 2020-21 Avg Hedge Avg Hedge Quarter $ in Mn Quarter $ in Mn Rate Rate Apr 2019 to June 2019 8.00 68.74 Apr 2020 to June 2020 8.00 71.21 July 2019 to Sep 2019 8.00 69.38 July 2020 to Sep 2020 8.00 71.92 Oct 2019 to Dec 2019 8.00 70.00 Oct 2020
Slide 30: Digital Transformation Deals
Digital Transformation Deals 3 Operational Performance CONTEXTUAL and DIGITAL is the Key Differentiator 47 50 Total Total Wins in FY19 Implementations including in FY19 including 13 large Digital 18 transformation implementations deals in Q4 FY 19 8 iGTB strikes a large multi- million dollar destiny
Slide 31: Active Pursuits
Active Pursuits 3 Operational Performance The current funnel (Active Pursuits) of Intellect is around $508 mn, out of which $397 mn is accounted by 122 opportunities 35+ high value active pursuits Q3 FY19 Q4 FY19 Active Won Lost Added Remarks Active Pursuits • 6 pursuits are of value more than INR 5
Slide 32: Product Acceptance in Leadership Quadrant
Product Acceptance in Leadership Quadrant #1 Partner of Choice for Digital Transformation Programs Ranked #1 Ranked #1 Strong Performance Leading Global Vendor 1 Best Bank Award For open banking The Forrester WaveTM: Digital Online Banking Solutions ANZ Bank named Best Bank for • Retail Banking Syst
Slide 33: Product Acceptance in Leadership Quadrant
Product Acceptance in Leadership Quadrant 3 Operational Performance Intellect’s cutting-edge digital technologies and products have been recognized by renowned global analysts and research firms Intellect recognized as a Leader for Gartner ranks Intellect Intellect has been profiled Novarica's recen
Slide 34: Financial Results for the Fourth Quarter FY19 Ended March 31, 2019
Financial Results for the Fourth Quarter FY19 Ended March 31, 2019 Additional Information on function wise classification of statement of Profit and Loss of the Group (Consolidated Unaudited / Not Reviewed) 3 Operational Rs. In Lakhs Performance QUARTER ENDED YEAR ENDED Particulars March 31, 2019 De
Slide 35: Way Forward
WAY FORWARD 4 Way Forward 33
Slide 36: Way Forward
Way Forward 4 Way Forward Competitive positioning • Strong as evidenced by repeat business by 85.1% • Increased pricing power through brand and ability to generate referencing • Niche play in Central banks and Treasury • Opportunity to upsell and cross sell vigorously Multiple structural drivers und
Slide 37: Partnerships in Relationship
Way Forward Scale IDC and S1 AI & Big Data Partnerships in Advanced S2 Market Deepening Customer S3 Relationship Managing Scale – Leadership S4 Pipeline 4 35 Way Forward
Slide 38: Management Observations
Management Observations 5 Way Forward “ Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited said, “The Results vindicate four points in our Intellect journey to be a global fintech player. a) Belief in ourselves to deliver Cutting Edge Products, b) Power of Brand driving Busine
Slide 39: © 2019, Intellect Design Arena Limited. All rights reserved.
© 2019, 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