Majesco — Investor Presentation (May 2020)
30 slides from Majesco's investor presentation, May 28, 2020
Slide 1: The Future of Insurance Starts Here
WELCOME The Future of Insurance Starts Here May 2020 NASDAQ : MJCO
Slide 2: Forward Looking Statement Disclosures
2 Forward Looking Statement Disclosures This presentation contains forward - looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act. These forward - looking statements are made on the basis of the current beliefs, expectations and assump
Slide 3: Market Overview
Market Overview $5.2 Trillion Annual Premium Total Market Insurance is a trillion dollar market that’s ripe for disruption. $2.8 Trillion Life & Annuity and Group (L&A) $2.4 Trillion Property & Casualty (P&C) $147 Billion Spent on IT $88 Billion Spent on Staff, Networks, Desktops etc. $59 Billion Sp
Slide 4: The Digital Transformation is Here
© 2020 Majesco. All rights reserved. NASDAQ: MJCO Demand is growing as insurers look to modernize and optimize their existing business by replacing legacy systems, migrating to the cloud and engaging their customers and channels more effectively. As insurers look to create new business to meet the d
Slide 5: The Majesco Solution
Majesco’s cloud - based solutions are designed to help insurers modernize, innovate and connect to build the future of their business at speed and scale. Our technology helps P&C, L&A and Group insurance businesses execute their digital transformation strategies and meet the demands of today’s tech
Slide 6: Market Opportunity
X Market Opportunity X 5 Average number of product line segments 1,200 Number of insurance companies in North America for P&C and L&A 3 Number of separate systems for Policy, Billing and Claims = 18,000 Number of potential systems in use in North America 75% of all insurance systems are legacy 100%
Slide 7: Majesco's Journey
Majesco’s Journey 1982 1992 MASTEK founded Enterprise T e c hn olo gy Services M a jes c o M A S T EK formed Insurance focused product and services 2008 Acquired STG US - based provider of enterprise solutions for P&C insurance 2013 Acquired SEG US - based policy administration software for individu
Slide 8: Our Leadership Team
Denise Garth SVP, Marketing & Innovation Prateek Kumar EVP, Americas Edward Ossie Chief Operat ing Officer Mallinath Sengupta EVP, Global Services and Support Jim Miller Chief Revenue Officer Manish Shah President & Chief Product Officer Our Leadership Team La uren Holmes Chief Information Officer M
Slide 9: What We Deliver
Majesco is a global leader of cloud - based solutions that enable all P&C, L&A, and Group insurance businesses to meet the demands of today’s digital customer. What We Deliver © 2020 Majesco. All rights reserved. NASDAQ: MJCO 9
Slide 10: Who We Serve
Whether it’s an insurer creating a new startup or greenfield, modernizing a legacy business , or optimizing existing operations, Majesco’s solutions can help pave their path to the future. Who We Serve © 2020 Majesco. All rights reserved. NASDAQ: MJCO 10
Slide 11: Market Differentiation
Market Differentiation CLOUD - NATIVE SOLUTIONS Innovative capabilities built to rapidly launch new cloud solutions SPEED Speed to implementation, speed to market, speed to value NEXT - GEN DIGITAL PLATFORM Modern cloud, API and microservices based digital platform PRICE Lower cost of entry and a co
Slide 12: Blended Approach for Strategic Growth
Blended Approach for Strategic Growth ORGANIC GROWTH STRATEGIC PARTNERSHIPS MERGERS & ACQUISITIONS Focus on new opportunities to accelerate innovation, geographic expansion, customer acquisition and market share. Partnering with the best in the industry to reach new markets and help customers shape
Slide 13: Recognized by Gartner for P&C and L&A Insurance Platforms
Recognized by Gartner for P&C and L&A Insurance Platforms 2019 Gartner Magic Quadrant for P&C Core Insurance Platforms, North America 2019 Gartner Magic Quadrant for Life Insurance Policy Administration Systems, North America © 20 20 Ma je sc o . All rig h t s re se rve d . NASDAQ: MJ CO 13
Slide 14: Named Best-In-Class Vendor by Aite for P&C and L&A Core Systems
Named Best - In - Class Vendor by Aite for P&C and L&A Core Systems 2019 US P&C Core Systems Evaluation: Moving Beyond the Basics 2019 US Life PAS Vendor Third Party Data Integration Capabilities © 20 20 Ma je sc o . All rig h t s re se rve d . NASDAQ: MJ CO 14
Slide 15: Industry Analyst Rankings
Industry Analyst Rankings 2020 Novarica Property/Casualty Policy Administration Systems 2020 Celent NA Group/Voluntary Administration Systems © 20 20 Ma je sc o . All rig h t s re se rve d . NASDAQ: MJ CO 15
Slide 16: Strategic Partnerships
The collective value of Majesco’s core insurance and Deloitte’s implementation services help build the foundation of a successful transformation that improves flexibility, and increases speed to market for new products. . Strategic Partnerships Majesco is partnering with the best in the industry to
Slide 17: Majesco & IBM: The Next Generation of Insurance
Majesco & IBM The Next Generation of Insurance Insurance technology solutions help you find, understand and reach more customers with relevance and personalization Majesco & IBM launched an industry - first insurance platform for P&C, L&A and group benefits Its cutting edge capabilities help unlock
Slide 18: Majesco & Capgemini Speed to Value Solutions
Disruption is creating unprecedented growth and innovation opportunities in the insurance industry Customer expectations are quickly moving insurers to a new generation of digitally superior insurance Majesco’s and Capgemini's partnership brings the necessary innovation to acquire and retain custome
Slide 19: Majesco Acquires InsPro Technologies
Majesco Acquires InsPro Technologies InsPro Technologies is a leader in the life and annuity insurance market Headquartered near Philadelphia, PA, with a team of over 50 dedicated employees Offers a highly flexible policy administration software suite that supports back office processing needs in a
Slide 20: History of Product Innovation
History of Product Innovation 2016 Released CloudInsurer®, 100% cloud - based P&C Core Suite and L&A and Group Core Suite Released Enterprise Data Warehouse products Released Distribution M a n a g e m e n t Released v10 P&C Core Suite and L&A and Group Core Suite 2017 2018 Released Digital1 st ® In
Slide 21: Financial Summary
Financial Summary NET CASH/ (DEBT) POSITION FY 2 0 Fiscal Year Ends March 31 Note: The terms EBITDA and Adjusted EBITDA are not defined under U.S. generally accepted accounting principles (U.S. GAAP), and are not a measure of operating income, operating performance or liquidity presented in accordan
Slide 22: Evolution of Majesco SaaS Offering
SCALABILITY PERFORMANCE ASP / HOSTING PRIVATE CLOUD PUBLIC CLOUD PUBLIC CLOUD NATIVE Evolution of Majesco SaaS Offering $59.0M Total from cloud based customers for the full year FY20 ending March 31, 2020. $22.1M Cloud subscription revenue for the full year FY20 ending March 31, 2020. © 2020 Majesco
Slide 23: Product Revenue Up 85%
Product Revenue Up 85% Recurring Revenue Growth | Year Over Year (Millions) © 2020 Majesco. All rights reserved. Product revenue includes license, subscription & maintenance Product revenue for FY 2020 was 42.2% of total revenue compared to 32.8% in FY 2019 Product revenue up 84.7% in two years from
Slide 24: Cloud Subscription Revenue Doubles
Cloud Subscription Revenue Doubles Cloud Revenue Growth | Year Over Year (Millions) © 2020 Majesco. All rights reserved. Cloud subscription revenue of $22.1M in FY 2020 increased 99.0% from $11.1M in 2018 F Y2018 F Y2019 F Y2020 22.1 16.4 11.1 24
Slide 25: Growth in Adjusted EBITDA Over 3 Years
© 2020 Majesco. All rights reserved. Adjusted EBITDA has increased dramatically with product revenue now 42.2% of total revenue versus 24.0% in FY17. 6.1 18.0 F Y2017 F Y2020 Growth in Adjusted EBITDA Over 3 Years Adjusted EBITDA ($ Mn and % to revenue) 5.0% 12.3% 25 Note : The terms EBITDA and Adju
Slide 26: Strategic Vision: Majesco's New Reality
St ra t e g ic Vis io n Majesco’s New Reality • Execute a multi - year growth strategy with a blend of organic, partnership, and M&A focus • Continue to be “the” premier provider of modern technology solutions to support the core needs of the insurance industry • Leverage insurance expertise and inn
Slide 27: Together We're Transforming the Future of Insurance
Together We’re Transforming the Future of Insurance 27
Slide 28: Join Us on Our Journey!
Join Us on Our Journey! NASDAQ: MJCO
Slide 29: Appendix
29 Appendix
Slide 30: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income NET NE CA T SH CA / SH (DE P B O T SI ) P T O IO SI N TION 30 FY 2 0 FY 1 7 FY 1 9 Net Income $(0.9)M $6.7M $9.7M Add: Provision for Tax $0.1M $3.5M $4.2M Add: Depreciation & Amortization $4.7M $4.3M $4.8M Add: Interest Expenses $0.6M $0.5M $0.4M Less: