Newgen Software Technologies Limited · NSE:NEWGEN

Newgen Software Technologies — FY2018 Earnings Presentation

23 slides from Newgen Software Technologies's earnings presentation, May 2018

  1. Slide 1: Q4 FY'18 & FY'18 Investor Update

    May 2018 NEWGEN SOFTWARE Reinvent Your Workplace Q4 FY’18 & FY’18 Investor Update COPYRIGHT COPYRIGHT 2016, 2016, NEWGEN NEWGEN SOFTWARE SOFTWARE INC.

  2. Slide 2: About Newgen

    © NEWGE About Newgen

  3. Slide 3: 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

  4. Slide 4: Newgen Today

    Newgen Today* 520+ 60+ 5 Active Customers(1) countries Core Verticals Strong 2,600+ 5,124m Industry FY18 Revenue Employees Recognition (250+ in R&D) 20.0% YoY Growth (1) Invoiced in the last 12 months COPYRIGHT 2016, NEWGEN SOFTWARE 4

  5. Slide 5: Attractive and Dynamic Market with Significant Growth Opportunity

    Attractive and Dynamic Market with Significant Growth Opportunity ECM BPM CCM $19.7bn $14.9bn $8.4bn $6.1bn $1.5bn $2.1bn 2017 2021 2017 2021 2017 2021  Growth in ECM, BPM & CCM to outpace the overall technology market growth (3.3% CAGR 2017-2021)  India software market to grow at a faster pace th

  6. Slide 6: Digital Transformation: Top Priority on Enterprise Business Agenda

    Digital Transformation: Top Priority on Enterprise Business Agenda “Digitalisation driving major changes in the global business software market; IT leaders looking to adopt new technologies and software platforms to meet critical business needs, including revenue growth driven via new products and s

  7. Slide 7: Strong Industry Recognition Validates Culture of Innovation

    Strong Industry Recognition Validates Culture of Innovation Magic Quadrant Research WaveTM A “Niche Player” in Magic Quadrant for Content Services “A Leader” in the Forrester WaveTM: Enterprise Content ECM Platform, 2017, Management – Transactional Content Services, 5 October 2017, Karen A. Hobert e

  8. Slide 8: 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) R&D Employees Patents Applied(1) ECM NXT (with 5 Registrations) FY16 250 Virtual Repository  Skilled R&D team with deep product Services domain expertise Corrus  Expansion of product

  9. Slide 9: Competitive Differentiation Through Multi-Vertical Industry Expertise

    Competitive Differentiation Through Multi-Vertical Industry Expertise Core Product ECM BPM CCM Platforms Leveraging Core Platform and Domain Expertise to Create SCALABLE, FLEXIBLE and ADAPTABLE Solution Frameworks $ Banking Govt / PSUs BPO / IT Healthcare  Account Opening  Correspondence  Account

  10. 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

  11. Slide 11: Low Concentration with Diversification Across Verticals and Geographies

    Low Concentration with Diversification Across Verticals and Geographies FY18 Revenue Concentration by FY18 Revenue Split by Vertical FY18 Revenue Split by Geography Customers APAC Others (Ex- Top 10, 19% 14% India) Top 5, 12% Healthcare 9% 6% India USA 35% Insurance 23% 4% Banking BPO/IT 54% 8% Top

  12. Slide 12: Multiple Revenue Streams

    Multiple Revenue Streams FY18 5 year CAGR Revenue Split Growth Sale of Products 27% Sale of licenses for the software products 26% Sale of Services (30%)Annuity-based (~43%) ATS / AMC 17% Annual maintenance contracts and technical support 22% Cloud functionality with subscription fees on a Per User

  13. Slide 13: Multiple Vectors for Long Term Growth

    Multiple Vectors for Long Term Growth Expansion of Product Portfolio and Continued R&D Investments Expansion of Strategic Business Focus on Applications to Attractive New Vertical Verticals in Expand Our Select Mature Business and Markets Geographical Footprint COPYRIGHT 2016, NEWGEN SOFTWARE 13

  14. Slide 14: Q4 FY'18 & FY'18 Financial Results

    Q4 FY’18 & FY’18 Financial Results

  15. Slide 15: Financials at a Glance – FY'18 v/s FY'17

    Financials at a Glance – FY’18 v/s FY’17 EBITDA(1) (INRm) and EBITDA(1) Total Revenue (INRm) PAT (INRm) and PAT Margins Margins 5200 5,124.3 800 1100 728.9 975.4 5000 700 900 600 4800 702.3 19.0% 513.3 700 500 4600 400 14.2% 4400 500 16.4% 12.0% 4,271.0 300 4200 300 200 4000 100 100 3800 0 FY'17 FY'

  16. Slide 16: Financial Summary – Q4FY18 and FY'18 (Consolidated)

    Financial Summary – Q4FY18 and FY’18 (Consolidated) Q4FY18 FY18 FY17 YoY Particulars Metrics (Audited) (Audited) (Audited) Growth 1,838.3 5,124.3 4,271.0 20% Revenue (INR Mn) Revenue from operations Other Income 26.7 76.1 82.7 -8% Margin Profits (INR Total Income 1,865.0 5,200.4 4,353.7 19% EBITDA (

  17. Slide 17: Business Highlights – FY'18

    Business Highlights – FY’18 Strengthened global presence: Strong interest for products witnessed across geographies with broad based growth (YoY) in APAC (47%), EMEA (45%), USA (7%) and India (7%) Substantial customer wins made during the year: 120 New customers added during FY’18 compared to 98 in

  18. Slide 18: Business Highlights – FY'18

    Business Highlights – FY’18 Industry Leadership: Positioned as a ‘Leader’ in Dynamic Case Management, Digital Process Automation and Enterprise Content Management by Forrester, a leading Independent Research Firm in its WaveTM Reports. It has also been positioned by Gartner in its Magic Quadrants.

  19. Slide 19: Improving Debtors Days & Cash from Operations

    Improving Debtors Days & Cash from Operations Improvement in Average Debtor Days  Given the seasonality, higher sales in last quarter leads to higher debtor days at the end of fiscal year (INRm) 1,996 2,220  Debtors days (net of allowances) as per Ind AS 153 days accounting standards reduced from

  20. Slide 20: Annexure

    Annexure

  21. Slide 21: P&L Statement

    P&L Statement (All amounts in INRm, except per share data and unless otherwise stated) Q4 FY 2018 FY 2018 FY 2017 Revenue Revenue from operations 1,838.3 5,124.3 4,271.0 Other income 26.7 76.1 82.7 Total revenue 1,865.0 5,200.4 4,353.7 Expenses Employee benefits 654.9 2,488.8 2,100.5 Finance costs 2

  22. Slide 22: 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-18 31-Mar-17 stated) 31-Mar-18 31-Mar-17 Equity & Liabilities Assets Equity 4,052.2 2,499.4 Non-current assets 1,288.8 1,107.0 Share capital

  23. 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

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