Slide 1: Result Presentation Cover Letter to Stock Exchanges
Quick Heal Quick Heal Technologies Ltd. Security Simplified (Formerly Known as Quick Heal Technologies Pvt. Ltd.) Regd. Office: Marvel Edge, Office No. 701 0, ( & D, 7th Floor, opp. NE(O Garden Society, Vimannagar, Pune - 411014 Tel: 020-668132321 Email: info@quickheal.com (IN - L72200MH 1995PL(0914
Slide 2: Investor Presentation May 2019
May 2019 Investor Presentation August 2018
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Quick Heal Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Value Proposition
| SEGRITE Value Proposition
Slide 5: 25 Years of Quick Heal Technologies
25 Years of Quick Heal Technologies… Our Brands 34% 9 Million Market Share in Number of Active Retail Segment in Licenses globally India Business Segments 32,900 4 Enterprise Customers No. of Patents in US Home and SOHO SME Government and Enterprise Platforms 25,000+ 40 Countries No. of Partners in
Slide 6: …with a Vision & Mission
…with a Vision & Mission Vision To be the trusted Global Leader in securing the Digital World Mission • Secure our Customers by providing Innovative, most preferred and valued Security Solutions, Services and Knowledge. • Protect information and interactions on all types of networks, devices & thing
Slide 7: …of offering Complete Security Solutions
…of offering Complete Security Solutions Retail Mobile SME / Enterprise • Seqrite Endpoint Security • Quick Heal Total Security • Quick Heal Total Security for Android • Seqrite Endpoint Security Cloud • Quick Heal Internet Security • Quick Heal Antivirus for Mobile • Seqrite UTM • Quick Heal AntiVi
Slide 8: ...supported by Skilled Professionals
...supported by Skilled Professionals Sales and Research & Technical Marketing Team Development Team Support Team Working closely with our Working on identifying new Provide efficient customers and Channel threats and devising innovative multilingual and instant Partners solutions and features acros
Slide 9: …with strong Research & Development leading to Innovations
…with strong Research & Development leading to Innovations R&D Team Members Product Management Team Internet of Things (IoT) Security Team Ensures that we build the Right Products Creating solutions to ensure all your for the Right Markets at the Right Time +158% connected devices are secure 356 138
Slide 10: …striving for excellence in customer service
…striving for excellence in customer service ISO 20000 certified Multi-lingual end user support in customer support process English, Hindi and several other major regional Indian languages Remote Access Support Availability of data sheets, product videos and manuals on website for providing informat
Slide 11: …Sales & Distribution to increase Market Share
…Sales & Distribution to increase Market Share Established a robust & diversified network 25,253 and a dynamic ecosystem of Channel Total Retail Partners Partners in cities & towns across India to reach our end-customers 457 Enterprise Partners Strong internal Sales & Marketing team work closely wit
Slide 12: …guided by Experienced Board of Directors
…guided by Experienced Board of Directors Drives the strategic direction for Spearheads the creation and the company while nurturing a subsequent development of the strong leadership team to drive it’s core product technology execution Dr. KAILASH KATKAR Mr. SANJAY KATKAR MD & CEO Joint MD & CTO Has
Slide 13: … and Strong Leadership Team
… and Strong Leadership Team Dr. Kailash Katkar | Managing Director & CEO Mr. Nagesh Ayyagari | Vice President – Engineering, R&D • Seasoned technology professional with a reputation for building and inspiring • Has been the driving force in growing Quick Heal Technologies since it’s high-performanc
Slide 14: …giving Competitive edge Globally
…giving Competitive edge Globally Quick Heal Global Offices INDIA (HO) UAE 01 04 Quick Heal Technologies Ltd. Quick Heal Technologies (DMCC) FZE 02 USA JAPAN Quick Heal Technologies America Inc 05 Quick Heal Japan KK. KENYA 03 Quick Heal Technologies Africa Ltd. International Partner Locations Benin
Slide 15: …certified by Global Agencies
…certified by Global Agencies International Certifications & ISO Certifications 14
Slide 16: ...trusted by our Customers
...trusted by our Customers Our products help secure the networks used by millions of customers. Some of the industries we cater to: 15
Slide 17: …creating Specialized workforce at Quick Heal Academy
…creating Specialized workforce at Quick Heal Academy Popular Courses: Offerings: Recent Developments Cyber Security and Forensics Approval to conduct 6 Months Cyber Threat Intelligence Certification course at Deen Dayal Upadhyaya College, a constituent college Malware Analysis & Reverse of
Slide 18: …Awards & Accreditations as testimony to Delivery
…Awards & Accreditations as testimony to Delivery 2017 2018 2019 Quick Heal Total Security receives Seqrite received Best Enterprise IT Seqrite received the ‘Best BEST+++ certification from AVLab Security Brand award at 11th NCN Performance 2018’ award for its Seqrite Endpoint Security: Best
Slide 19: Product Offerings
| SEGRITE Product Offerings
Slide 20: Product Portfolio across Business Segments
Product Portfolio across Business Segments Retail / SMB Retail / SMB FY19 Revenue Break-up Mobile Security Mobile Seqrite Endpoint Security 0.4% Seqrite Endpoint Security Cloud Seqrite UTM 21.2% 78.4% SME, Enterprise & Seqrite Secure Web Gateway Government Seqrite Endpoint Encryption Seqrite Data Lo
Slide 21: Retail / SMB – Drives Scalability
Retail / SMB – Drives Scalability Core Protection Track My Laptop Privacy Protection Data Theft Protection Safe Banking Features PCTuner Web Security Improved Scan Engine Parental Controls Virtual Keyboard Stealth Mode PC2 Mobile Scan Email Security QH Remote Device Management Anti- Key Logger 20
Slide 22: Mobile Security – Huge Future Opportunity
Mobile Security – Huge Future Opportunity Growth Opportunities • Customers understanding the need for Mobile Security Mobile Internet User Base • Vast Untapped Market Potential Background Scan Security & Privacy Advisor SafePe Cloud Backup Call & Message Filter Register with TRAI Anti-Theft Techno
Slide 23: Enterprise Business – Drives Sustainability
Enterprise Business – Drives Sustainability SEQRITE Endpoint Security (EPS) Security Vulnerabilities Insider Threats PRO-ACTIVE SERVICES SEQRITE Technical Audit Endpoint Security Cloud Ransomware Attacks Security Management Compliance Audit Infected External Devices Security Consulting SEQRI
Slide 24: …with Revenue Visibility
…with Revenue Visibility Improve Expand Channel Market Share Partner network Identify New SMB & Expand range of Enterprise Security Solutions Opportunities Strengthen Safeguard digital assets Sales Teams of Customers 23
Slide 25: Future opportunities
| SEGRITE Future opportunities
Slide 26: Turning Problems into Possibilities…
Turning Problems into Possibilities… Cybersecurity Predictions - 2019 Future Opportunities Government working on strong data protection • Threats to become more sophisticated and regulations equipped with advanced AI-led capabilities Enterprises are increasingly adopting security • Increase in w
Slide 27: Future Strategy
| SEGRITE Future Strategy
Slide 28: Future Direction
Future Direction • Tailored products and service offerings for SMB and enterprise users • Special focus on Tier II and Tier III towns • Focus on manufacturing, BFSI, healthcare and • Increase penetration and adoption of hospitality industries security solutions by offering unique value propositions
Slide 29: Q4 & FY19 Highlights
| SEGRITE Q4 & FY19 Highlights
Slide 30: Q4 FY19 – Quarterly Consolidated Performance Highlights
Q4 FY19 – Quarterly Consolidated Performance Highlights Revenue (Rs. mln) EBITDA (Rs. mln) Margins (%) -27.5% -41.0% 1,187 654 EBITDA % PAT % 860 386 55.1% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 44.9% 41.4% PAT (Rs. mln) Cash PAT* (Rs. mln) 32.3% -43.6% -40.5% 492 561 334 Q4 FY18 Q4 FY19 277 Q4 FY18 Q4 FY1
Slide 31: FY19 – Annual Consolidated Performance Highlights
FY19 – Annual Consolidated Performance Highlights Revenue (Rs. mln) EBITDA (Rs. mln) Margins (%) -1.1% +6.3% 3,183 3,149 1,279 1,203 EBITDA % PAT % 40.6% 37.8% FY18 FY19 FY18 FY19 29.2% 26.1% PAT (Rs. mln) Cash PAT* (Rs. mln) +10.6% +4.9% 918 1,099 1,154 830 FY18 FY19 FY18 FY19 FY18 FY19 * Cash PAT
Slide 32: Segment Performance: Revenue Break-up
Segment Performance : Revenue Break-up Retail (Rs. mln) Enterprise & Govt. (Rs. mln) +8.4% -5.0% 2,741 701 2,604 647 -35.9% +10.5% 1,061 191 211 681 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 Based on net revenues before adjusting for sales incentives 31
Slide 33: Segment Performance: Licenses Sold Analysis
Segment Performance : Licenses Sold Analysis Retail (in 000’s) Enterprise & Govt. (in 000’s) +1.8% +11.5% 5,522 5,622 1,240 1,112 -25.0% +16.1% 2,165 1,624 382 329 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 32
Slide 34: Q4 and FY19 - Consolidated Profitability Statement
Q4 and FY19 - Consolidated Profitability Statement Particulars (Rs. mln) Q4 FY19 Q4 FY18 YoY FY19 FY18 YoY Total Revenue 860.01 1,186.92 -27.54% 3,149.26 3,183.15 -1.06% Direct Cost 40.34 62.94 151.5 167.38 Gross Profit 819.67 1,123.98 -27.07% 2,997.76 3,015.77 -0.60% Gross Margin 95.31% 94.70% 61 9
Slide 35: Q4 and FY19 - Consolidated Ratio Analysis
Q4 and FY19 - Consolidated Ratio Analysis In % Q4 FY19 Q4 FY18 FY19 FY18 Expenses Direct Cost / Revenue 4.69% 5.30% 4.81% 5.26% R&D / Revenue 14.83% 12.29% 17.19% 17.53% S&M / Revenue 23.59% 15.60% 22.06% 23.11% G&A / Revenue 11.98% 11.67% 15.33% 16.29% Total Cost / Revenue 50.40% 39.56% 54.58% 56.9
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (Rs. mln) 31-Mar-19 31-Mar-18 ASSETS (Rs mln) 31-Mar-19 31-Mar-18 Share Holder's Funds: Non-Current Assets: Equity Share Capital 705.63 703.88 Property, plant and equipment 1,570.04 1,611.97 Share application money pending allotment 0.17 0.00 Capital
Slide 37: FY19 – Working Capital Analysis
FY19 – Working Capital Analysis At the end of March 2018 At the end of March 2019 111 6 138 6 35 43 82 101 Receivable Days Inventory Days Payable Days Net Working Receivable Days Inventory Days Payable Days Net Working Capital Days Capital Days Note: • Net Working Capital Days for March 2018 = [(Net
Slide 38: FY19 Consolidated Results – Return Ratio Analysis
FY19 Consolidated Results – Return Ratio Analysis Return on Capital Employed (%)* Return on Equity (%)* 40.0% 12.0% 12.1% 34.7% 13.5% 13.8% Mar-18 Mar-19 Mar-18 Mar-19 RoCE Cash Adj. RoCE RoE RoCE = EBIT / Avg. Capital Employed (Equity + Debt) ROE = PAT / Avg. Equity Cash Adj. RoCE = EBIT / Avg. Cas
Slide 39: Q4 and FY19 – Standalone Profitability Statement
Q4 and FY19 – Standalone Profitability Statement Particulars (Rs. mln) Q4 FY19 Q4 FY18 YoY FY19 FY18 YoY Total Revenue 853.54 1,183.80 -27.90% 3,129.03 3,162.22 -1.05% Direct Cost 40.35 63.86 153.23 164.43 Gross Profit 813.19 1,119.94 -27.39% 2,975.80 2,997.79 -0.73% Gross Margin 95.27% 94.61% 67 95
Slide 40: Q4 and FY19 – Standalone Ratio Analysis
Q4 and FY19 – Standalone Ratio Analysis In % Q4 FY19 Q4 FY18 FY19 FY18 Expenses Direct Cost / Revenue 4.73% 5.39% 4.90% 5.20% R&D / Revenue 14.94% 12.32% 17.30% 17.65% S&M / Revenue 23.18% 15.13% 21.56% 22.33% G&A / Revenue 11.55% 11.31% 14.89% 15.69% Total Cost / Revenue 49.68% 38.76% 53.74% 55.67%
Slide 41: Standalone Balance Sheet
Standalone Balance Sheet EQUITY AND LIABILITIES (Rs. mln) 31-Mar-19 31-Mar-18 ASSETS (Rs mln) 31-Mar-19 31-Mar-18 Share Holder's Funds: Non-Current Assets: Equity Share Capital 705.63 703.88 Property, plant and equipment 1,569.69 1,610.96 Share application money pending allotment 0.17 0.00 Capital w
Slide 42: Shareholding Structure – March 2019
Shareholding Structure – March 2019 Public 19.84% Institutions 7.83% Promoter & Promoter Group 72.33% Source: BSE 41
Slide 43: Key Takeaways
Key Takeaways Strong Brand Reputation Innovation & Expanding Strategies Footprint Strengthen Leadership Position Recruit & Focus on R&D Retain Talent Growth – Organic Deliver & Inorganic Quality Products 42
Slide 44: Contact Us
Contact Us Company : Investor Relations Advisors : CIN No: L72200MH1995PLC091408 CIN - U74140MH2010PTC204285 Associate Company Secretary Mr. Jigar Kavaiya Mr. Vinav Agarwal jigar.kavaiya@sgapl.net cs@quickheal.co.in +91 9920602034 +91-20-66813232 www.sgapl.net www.quickheal.co.in Chief Financial Off