Newgen Software Technologies Limited · NSE:NEWGEN
Newgen Software Technologies — Q1 FY2020 Earnings Presentation
32 slides from Newgen Software Technologies's earnings presentation, Jul 24, 2019
Slide 1: Outcome of Board Meeting letter to exchanges
NEWGEN Newgen Software Technologies Limited CIN: L72200DL I 992PLC049074 A-6, Satsang Vihar Marg, Qutab Institutional Area, New Delhi - 11 O 067 INDIA Tel: (+9 1)- 11 -4077 0100, 2696 3571, 2696 4 733, Fax: (+9 1) - 11-2685 6936 Email: corpmktg@ newgensoft.com URL: https://newge nsoft.com Date: 24th
Slide 2: Press Release: 23% YoY growth in Revenues in Q1 FY'20
PRESS RELEASE Newgen Software reports 23% YoY growth in Revenues in Q1 FY’20 New Delhi, India – 24 July 2019 The management of Newgen Software Technologies Ltd. announced results for the Quarter and Financial Year ended 30 June 2019 at its Board Meeting held on 24 July 2019. Speaking about the resul
Slide 3: Key Business Highlights (Q1 FY'20)
Key Business Highlights (Q1 FY’20) Business growth across key markets especially APAC and USA regions which witnessed a YoY growth of 65% and 24% respectively. Prestigious customer wins: 12 new customer additions in Q1 FY’20 including: o License Agreement with a global leader in beverage alcohol
Slide 4: About Newgen
About Newgen Connecting Enterprises. Transforming Experiences. Newgen Software Technologies Limited (listed In India on National Stock Exchange [Script code: NEWGEN] and BSE Ltd. [Script code: 540900]), is a provider of Business Process Management, Enterprise Content Management and Customer Communic
Slide 5: Auditor's review report (consolidated)
B S R & Associates LLP Chartered A ccountants Building No.1 O. 8th Floor. Tower-8 Telephone: + 91 124 719 1000 DLF Cyber City, Phase - II Fax· + 9 1 124 235 8613 Gurugram - 122 002. India To Board of Directors of Newgen Softwa re Technologies Limited 1. We have reviewed the accompanying Statement of
Slide 6: Auditor's review report (consolidated, continued)
B S R & Associat es LLP 5. Attentio n is drawn to the fact that the figures for the 3 months ended 3 1 March 2019 as reported in these fi nancia l results are the balancing figu res between audited figu res in respect of t he full previous financial year and the publi hed year to date figures up to
Slide 7: Auditor's review report (standalone)
B S R & Associates LLP Chartered A ccountant s Building No.10, 8th Floor. Tower-8 Telephone : + 91 124 719 1000 DLF Cyber City, Phase - II Fax. + 91 124 235 8613 Gurugram - 122 002, India To B oard of Directors of Newgen Software Technologies Limited I. We have reviewed the accompanyi Dg Statement o
Slide 8: Statement of Consolidated Financial Results
NEWGEN Statemen t of Consoli!laled Financial Re,ulls of Nc,.gen Sofl"~re Tcchnologie Limited For the Qun r lcr cnclc!l 30 June 20 19 (Amou nt io Rupees lakl, s) Quarter ended Yea r ende!I Particulars 30 June 31 Ma ,·ch 30 June 31 March 2019 2019 2018 2019 (Unaudited) (Audited) (Unaudited) (Audited)
Slide 9: Statement of Standalone Financial Results
EWGEN Statement of Stund :1lo11 c F in•ncial Re,ult of Newgcn Son, ,ire T echn ologies Limited For the. Qum·te r e nded 30 J un e 2019 (Amount in Ru l}cl!S l3khs) Quarter ended Year e nded l'nr1icu l,1 rs 30 June 3 1 Much 30 June 3 1 March 2019 2019 2018 20 19 (Una udited) (Audited) (Unaudited} (Aud
Slide 10: Segment Reporting (Consolidated)
EWGEN r;;ni cnt Rcpur1i11g ( onsolida1cd) : (Amo unt in Ru1>el' la khs) Qua rte r ended Year ended Part iculars 30 J une 31 M u ch 30 June 3 1 Ma rch 20 19 20 19 201 8 2019 ( Una udil cd) (A ud ited) (Unaud ited) (A ud ited) I Revenue by geographical ·egmcnt India 4,272.39 6,5 0.44 3,526.86 20,0 13.
Slide 11: Segment Reporting (Standalone)
NEWGEN Seg1mn 1 Rcpurling ( 1Rnd:1lon~): (A mou nt in Rupees lak.hs) Q uarter ended Vea r ended Parlkulars 30 J une 3 1 March 30 J une 31 March 2019 2019 2018 2019 (U naudi ted) (Audited) (Um1uditetl) (Audited) I Rev~nue by l;l'Ognt phica l sc~mcnt lnJia 4,272.39 6,530.44 3,516.86 20.n 13 53 EM EA 3
Slide 12: Notes to the Financial Results
NEWGEN • Statement of Standalone and Co,uolideted Finan<lal Re.!Ults of Newgen Sofrware Technologits Limiled For the Quarter ended 30 June 2019 Notes: I The above financial results for the quarter ended 30 June 2019 were reviewed by the Audit Committee and approved by the Board of Directors in their
Slide 13: Newgen Software Q1 FY'20
July 2019 NEWGEN SOFTWARE Reinvent Your Workplace Q1 FY’20 Investor Update COPYRIGHT COPYRIGHT 2016, 2019, NEWGEN NEWGEN SOFTWARE SOFTWARE INC.
Slide 14: 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 15: Newgen Overview (FY'19)
Newgen Overview* (FY’19) 540+ 66 5 Active Customers(1) Core countries Verticals 81 new logos added in FY’19 Strong growth in Healthcare and Insurance verticals Strong Industry 2,800+ 44 Gartner Recognition Employees Patent Filings 6 patents granted in FY’19 (1) Invoiced in the last 12 months (2) All
Slide 16: Newgen Overview - Financial Snapshot (FY'19)
Newgen Overview* - Financial Snapshot (FY’19) 6,206m 22.7% 26.7% FY19 Revenue FY’19 Return on FY’19 Return on 21.0% Average Equity Average Capital Employed2 YoY Growth 20.6% 1,022m 817m EBIDTA Margins 15.9% Net Operating Free Cash Flow3 Cash Flow PAT Margins EBIDTA & PAT Margins expanded 70% increas
Slide 17: 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 Platform, 25 October 2018, Karen A. Hobert et al ECM Named on all 5 use-cases in Critical Capabilities for Content Serv
Slide 18: Driving Innovation Through R&D to Expand Product Portfolio
Driving Innovation Through R&D to Expand Product Portfolio R&D Expenses Product Pipeline 380+ 44 (INRm) Content and Process Patents Filings(1) R&D Employees Analytics (with 12 Patents Granted) FY17 313 Content Services Skilled R&D team with deep product Platform domain expertise Corrus Expansion
Slide 19: Focused Go-To-Market Strategy
Focused Go-To-Market Strategy Strategy Across Regions and Verticals is Based on Direct Presence Supported by Partner Ecosystem ~360 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 20: Multiple Revenue Streams
Multiple Revenue Streams FY19Revenue 5 year CAGR Split Growth Sale of Products 25% Sale of licenses for the software products 25% Sale of Services (27%)Annuity-based (~49%) ATS / AMC 17% Annual maintenance contracts and technical support 22% Cloud functionality with subscription fees on a Per User S
Slide 21: 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 Whole Time Director Whole Time Director • Co-founded Newgen in 1992 • Co-founded Newgen in 1992 • Been with Newgen sin
Slide 22: 5 Year Financial Overview
5 Year Financial Overview EBITDA(1) (INRm) and Total Revenue (INRm) PAT (INRm) and PAT Margins EBITDA(1) Margins 7,000 6,206 1,400 1,200 6,000 1,277 1,022 5,124 1,200 1,000 5,000 4,271 975 1,000 4,000 800 729 3,468 800 16% 3,085 702 21% 3,000 600 578 513 600 19% 464 14% 2,000 19% 393 400 15% 16% 12%
Slide 23: Q1 FY'20 Results
Q1 FY’20 Results
Slide 24: Financial Summary (Consolidated)
Financial Summary (Consolidated) Q1FY20 Q1FY19 YoY Q4FY19 QoQ Particulars Metrics (Unaudited) (Unaudited) Growth (Unaudited) Growth Revenu Revenue from operations 1,309.7 1,064.7 23% 2,039.7 -36% e (INR Mn) Other Income 29.5 78.0 -62% 25.2 15% Total Income 1,339.2 1,142.7 17% 2,064.9 -35% EBITDA (ad
Slide 25: Diversification Across Verticals and Geographies
Diversification Across Verticals and Geographies Q1 FY20 Revenue Split by Q1 FY20 Revenue Split by Segment Q1 FY20 Revenue Split by Vertical Geography APAC Scanning (Ex-India) Implement 1% Sale of Others 10% ation Products 13% 20% 19% India Healthcare 33% 12% Banking USA SaaS 50% 30% 6% Insurance AT
Slide 26: New Logo Wins - Q1 FY'20
New Logo Wins – Q1 FY’20 Major deals include: License Agreement with a global leader in beverage alcohol Cloud deal with a US Company in legacy annuity business License Agreement with a Filipino based stock life insurance 12 company Saudi Arabia conglomerate with interests in petrochemicals,
Slide 27: Significant Wins - Q1 FY'20
Significant Wins – Q1 FY’20 APAC and USA regions on a stronghold: Revenue Growth – Q1 FY’20 (YoY) 70% 65% 60% Key Agreements with Existing Customers 50% 40% License Agreement with two large banks in the EMEA 30% 24% Region 21% 20% 14% 10% License Agreement with a large public sector bank in Indi
Slide 28: Business Highlights - Q1 FY'20
Business Highlights – Q1 FY’20 Focus on innovation: Granted patent in July 2019 by US Patent Office for the Company’s Intelligent Check Deposit Machine which would help in optimizing the check clearing cycle while ensuring security and compliance Improved positioning through global alliance: Compli
Slide 29: Debtors Days
Debtors Days Debtor Days (Based on Gross Debtors) Debtor Days (Based on Net Debtors) (INRm) (INRm) 139 days 167 days 112 days 134 days 2,374 1,979 2,421 2,018 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 Debtor Days Gross Trade Receivables (INR Mn) Debtor Days Net Trade Receivables (INR M
Slide 30: Annexure
Annexure
Slide 31: P&L Statement
P&L Statement (All amounts in INRm, except per share data and unless Q1 FY 2020 Q1 FY 2019 Q4 FY 2019 FY 2019 FY 2018 otherwise stated) (Unaudited) (Unaudited (Unaudited) Revenue Revenue from operations 1,309.7 1,064.7 2,039.7 6,206.4 5,124.3 Other income 29.5 78.0 25.2 203.8 76.1 Total revenue 1,33
Slide 32: 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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