Subex Limited · NSE:SUBEXLTD
Subex — Q1 FY2020 Earnings Presentation
32 slides from Subex's earnings presentation, Aug 13, 2019
Slide 1: Cover letter to BSE and NSE
August 13, 2019 To BSE Limited The National Stock Exchange of India Limited Dear Sir/Madam, Sub: Subex Limited “The Company”-Investor presentation Q1 FY20 for Earnings Call on August 14, 2019 As per Regulation 30 of the SEBI (LODR) Regulations, 2015, please find enclosed the Investor presentation fo
Slide 2: Investor Presentation – Q1FY20
Subex Limited Investor Presentation – Q1FY20 August 13, 2019
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 Strategy & Investment Rationale Financial Performance Quarterly Updates Awards & Recognitions 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Snapshot
Snapshot Financial Performance FY19 □ Leading telecom analytics solution provider REVENUE □ Pioneer in enabling Digital Trust for businesses globally Nature of Business □ Focus on privacy, security, risk mitigation, predictability 7.3% and confidence in data ₹ 3,481 Mn EBITDA □ Managed by handpicked
Slide 7: Subex Today
Subex Today 1994 +Years of Experience Foundation of Company 800+ Employees 300+ 200+ Global Installations 90+ Customers Globally Countries 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: What we do?
What we do? • By leveraging data which is gathered across networks, customers, and systems coupled with its domain knowledge and the capabilities of its core solutions, Subex helps CSPs to drive new business models, enhance customer experience and optimize enterprises 8
Slide 10: Communication Service Providers (CSPs) Industry
Communication Service Providers (CSPs) Industry A major share of CSP industry is focused on the mobile market and Subex will focus on the mobile market as well as the other interconnected areas that make up the ecosystem As per GSMA report, by 2023 mobile’s contribution will reach $4.8 trillion as c
Slide 11: Internet of Things (IoT) will be Omnipresent
Internet of Things (IoT) will be Omnipresent The number of IoT connections (cellular and non- cellular) is expected to triple worldwide between 2018 and 2025 to reach 25 billion As 4G-5G connections would give significant opportunities for telcos to offer digital services, there is a very good oppor
Slide 12: Subex – Partner for Digital Trust
Subex – Partner for Digital Trust • Subex is now at the forefront of enabling Digital Trust for the telco ecosystem • It helps businesses thrive by leveraging Digital Trust as a competitive advantage. 11
Slide 13: Strategy & Investment Rationale
Strategy & Investment Rationale 12
Slide 14: Focus Areas
Focus Areas Vibrant Subex Revenue Growth 13
Slide 15: 3 Horizon Strategy for Growth
3 Horizon Strategy for Growth Horizon 1 Horizon 2 Horizon 3 Core areas Immediate Growth Long Term Growth Enhance the core Growth in new areas Invest in Emerging ― Revenue Assurance ― IoT Security Areas ― Fraud Management (Multi-vertical product) (Multi-Vertical SaaS) ― Asset Assurance ― Analytics ―
Slide 16: FY20 Plan - Focus on execution of growth strategy
FY20 Plan - Focus on execution of growth strategy HORIZON 1 • • Protect – Leverage Product / Domain Grab – Aggressive replacement by H1 leveraging partners • Grow –Leverage Consulting capabilities. Go “Deep and Wide” HORIZON 3 H3 • CrunchMetrics – Establish presence in eCom & FinTech – Strengthen pr
Slide 17: Growth Drivers
Growth Drivers Horizon 2 and 3 Digital trust • Allow Subex to adopt subscription - • Emerging pillar of digital economy based revenue model Growth Drivers Growth in Digital Security 5G and its opening up of the Market economy across several spheres 16
Slide 18: 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 19: Financial Performance
Financial Performance 18
Slide 20: Financial Summary
Financial Summary Revenue Revenue by Services License 3,598 3,573 In Rs Million 3,481 10% Implementation & 31% Customisation 3,243 23% 3,225 Managed Services 36% Support services & FY15 FY16 FY17 FY18 FY19 others Gross Margin (%) and EBITDA Margin (%) Revenue by Region 58% 60% 58% 6% America 57% 57%
Slide 21: Financial Performance – FY19
Financial Performance – FY19 Amount in Rs Million Consolidated Particulars FY 19 FY 18 FY 17 FY 16 2018-19 2017-18 2016-17 2015-16 Income Revenue from operations 3,481 3,243 3,573 3,225 Other income 10 14 115 18 Total income 3,491 3,257 3,689 3,243 Expenses Employee benefits expense 1,911 1,747 1,58
Slide 22: Quarterly Updates
Quarterly Updates 21
Slide 23: Financial Highlights – Q1FY20
Financial Highlights – Q1FY20 • Q1FY20 Revenue stood at Rs 790 Million as against Rs 759 Million in Q1FY19, up by 4%. • EBITDA (ex-forex) was at Rs 152 Million, up by 238% on Y-o-Y basis. • PAT was at Rs 53 Million, up by 33% on Y-o-Y basis. 22
Slide 24: Financial Summary – Q1FY20
Financial Summary – Q1FY20 Operating Revenue EBITDA PAT 12.7% 26.4% 19.2% 6.7% In Rs Million In Rs Million In Rs Million 5.2% 5.9% 790 1,019 759 152 269 45 53 129 40 Q1FY20 Q4FY19 Q1FY19 Q1FY20 Q4FY19 Q1FY19 Q1FY20 Q4FY19 Q1FY19 EBITDA EBITDA Margin PAT PAT Margin 2323
Slide 25: Revenue Metrices – Q1FY20
Revenue Metrices – Q1FY20 Revenue by Region Revenue by Service 15% 17% 21% 26% 3% 34% 34% 4% 7% 30% 61% 33% 39% 66% 58% 26% 23% 24% 18% 22% 10% 13% 14% 3% Q1FY20 Q4FY19 Q1FY19 Q1FY20 Q4FY19 Q1FY19 Support Services & Others Managed Services Americas EMEA India APAC & RoW Implementation & Customisatio
Slide 26: Operating Metrices – Q1FY20
Operating Metrices – Q1FY20 Debtors Days Employee Headcount 117 980 110 887 100 860 Q1FY20 Q4FY19 Q1FY19 Q1FY20 Q4FY19 Q1FY19 2525
Slide 27: Financial Performance – Q1FY20
Financial Performance – Q1FY20 Amount in Rs Million Consolidated Particulars Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y 2019-20 2018-19 2018-19 Growth % Growth % Income Revenue from operations 790 1,019 759 (22%) 4% Other income 4 4 2 - 100% Total income 793 1,023 761 Expenses Employee benefits expense 431 48
Slide 28: Key Clients
Key Clients 200+ Global customers 300+ Installation in 90+ Countries 27
Slide 29: 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 Officer, Venkatraman GS is the Chief Financial
Slide 30: 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 31: 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 30
Slide 32: Thank You
Thank You investorrelations@subex.com | +91 806659 8700 dpingle@christensenir.com | +91 02242150210