Majesco — FY2020 Earnings Presentation
40 slides from Majesco's earnings presentation, May 29, 2020
Slide 1: Cover letter to stock exchanges
Majesco Limited Regd. Off.: MNDC, MBP-P-136, Mahape, Navi Mumbai – 400 710, India +91-22-61501800 +91-22-27781320 www.majesco.com Date: May 29, 2020 Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street,
Slide 2: Press release: Q4 and full year fiscal 2020 results
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com PRESS RELEASE Majesco Announces Strong Fourth Quarter Product Revenue and Full Year Fiscal 2020 Results Fourth quarter total revenue of $37.9M and Full year total revenue of $146.4M Fourth quarter Adjusted EBITDA of
Slide 3: Fourth quarter and fiscal 2020 financial results
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com Majesco’s 12-month order backlog on March 31, 2020 was $109.8 million, up 8.0% from $101.7 million on December 31, 2019 and up 13.3% from $96.9 million on March 31, 2019. We added 8 new clients organically for t
Slide 4: Other Highlights
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com Other Highlights Majesco had cash and cash equivalents of $51.4 million at March 31, 2020, compared to $39.4 million at March 31, 2019. Majesco had zero debt as of March 31, 2020, compared to $0.4 million at Mar
Slide 5: Conference call and use of non-GAAP measures
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com Conference Call and Webcast Information Majesco management will conduct a live teleconference to discuss Majesco’s fiscal 2020 fourth quarter and full year financial results at 5:00 pm ET on Thursday, May 28, 2020.
Slide 6: About Majesco and cautionary language
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com insurance – at speed and scale. Our platforms connect people and businesses to insurance in ways that are innovative, hyper-relevant, compelling and personal. Over 200 insurance companies worldwide in P&C, L&A and G
Slide 7: Majesco Contacts
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. Majesco Contacts: Media Contact Majesco Laura Tillotson Director, Marketing Communicat
Slide 8: Consolidated Statements of Operations
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com Majesco and Subsidiaries Consolidated Statements of Operations (Audited) (All amounts are in thousands of US Dollars except per share data and as stated otherwise) Three Three Twelve Twelve months months months mont
Slide 9: Consolidated Balance Sheets
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com Majesco and Subsidiaries Consolidated Balance Sheets (Audited) (All amounts are in thousands of U.S. Dollars except per share data and as stated otherwise) March 31, March 31, 2020 2019 ASSETS CURRENT ASSETS Cash an
Slide 10: Reconciliation of GAAP Net Income to Adjusted EBITDA
412 Mt Kemble Avenue Suite 110C Morristown, NJ 07960 +1-973-461-5200 www.majesco.com Majesco and Subsidiaries Reconciliation of U.S. GAAP Net Income to EBITDA and Adjusted EBITDA (Audited) Three Months Ended Twelve Months Ended March 31, March 31, (U.S. dollars; in thousands): 2020 2019 2020 2019 Ne
Slide 11: Welcome: The Future of Insurance Starts Here
NASDAQ: MJCO WELCOME The Future of Insurance Starts Here May 2020
Slide 12: Forward Looking Statement Disclosures
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 assumptions
Slide 13: Market Overview
Market Overview Insurance is a trillion dollar market that’s ripe for disruption. Total Market $5.2 Trillion $2.8 Trillion Life & Annuity and Group (L&A) $147 Billion Spent on IT $88 Billion Spent on Staff, Networks, Desktops etc. $59 Annual Premium Billion $2.4 Trillion Spent on Services/ Maintenan
Slide 14: The Digital Transformation is Here
The Digital Transformation is Here 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 demands of today
Slide 15: The Majesco Solution
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 deman
Slide 16: Market Opportunity
Market Opportunity Only 12.5% of ALL insurance systems are in the cloud Of the 25% that 75% of all 25% of all are modern, insurance systems insurance systems only 50% are in are legacy are modern the cloud 100% 50% 1,200 X Number of insurance 5 Average number of X 3 Number of separate systems = 18,0
Slide 17: Majesco's Journey
Majesco’s Journey Acquired Agile MASTEK Technologies Acquired Exaxe Acquired InsPro Acquired STG Technologies founded US-based provider US-based insurance Europe-based cloud strategic consulting solutions for A US-based software Enterprise of enterprise individual life, services leader in the life a
Slide 18: Our Leadership Team
Adam Elster Chief Executive Officer Our Leadership Team Melissa Blankenbaker Denise Garth Lauren Holmes Prateek Kumar Wayne Locke Chief HR Officer SVP, Marketing & Innovation Chief Information Officer EVP, Americas Chief Financial Officer Jim Miller Edward Ossie Mallinath Sengupta Manish Shah Lori S
Slide 19: What We Deliver
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. 9 © 2020 Majesco. All rights reserved. NASDAQ: MJCO
Slide 20: Who We Serve
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. 10 © 2020 Majesco. All rights reserved. NASDAQ: MJCO
Slide 21: 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 “Majesco’s strong market NEXT-GEN DIGITAL PLATFORM presence and leading-edge Modern cloud, API and microservices based digi
Slide 22: Blended Approach for Strategic Growth
Blended Approach for Strategic Growth ORGANIC GROWTH STRATEGIC PARTNERSHIPS MERGERS & ACQUISITIONS P&C Solutions Partnering with the best in the Focus on new Expand existing customer base industry to reach new markets opportunities to accelerate through cross-sell. Grow existing and help customers s
Slide 23: Recognized by Gartner for P&C and L&A Insurance Platforms
Recognized byby Recognized Gartner Gartnerfor forP&C P&Cand andL&A L&AInsurance InsurancePlatforms Platforms 2019 Gartner Magic Quadrant for P&C Core 2019 Gartner Magic Quadrant for Life Insurance Insurance Platforms, North America Policy Administration Systems, North America 13 May 2020 © 2020 Maje
Slide 24: Recognized by Gartner and named best-in-class vendor
Named Best-In-Class Recognized Vendor by Gartner for by P&CAite andfor L&AP&C and L&A Insurance Core Systems Platforms 2019 US P&C Core Systems Evaluation: 2019 US Life PAS Vendor Third Party Data Moving Beyond the Basics Integration Capabilities May 2020 14 © 2020 Majesco. All rights reserved. © 20
Slide 25: Industry Analyst Rankings
Industry Recognized by Gartner Analyst for P&C Rankings and L&A Insurance Platforms 2020 Novarica Property/Casualty Policy 2020 Celent NA Group/Voluntary Administration Systems Administration Systems May 2020 15 © 2020 Majesco. All rights © 2020 reserved. Majesco. NASDAQ: All rights MJCO reserved.
Slide 26: Strategic Partnerships
Strategic Partnerships Majesco is partnering with the best in the industry to reach new markets and support our customers as they shape the future of their business. Majesco and Capgemini are The collective value of Majesco’s EY provides insurance companies working together to bring insurance core i
Slide 27: Majesco & IBM
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 cu
Slide 28: Majesco & Capgemini
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 neces
Slide 29: 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 30: History of Product Innovation
History of Product Innovation 2016 2017 2018 2019 2020 Released Released Released Digital1st® Released Version 11 Continue to expand CloudInsurer®, Enterprise Data Insurance, 100% of P&C Core Suite, P&C and L&A Core 100% cloud-based Warehouse cloud, API and L&A and Group Core Suite, Digital 1st® P&C
Slide 31: Financial Summary
Financial Summary Fiscal Year Ends March 31 FY19 FY20 REVENUE $141.3M $146.4M 3.6% PRODUCT REVENUE $46.4M $61.8M 33.2% CLOUD SUBSCRIPTION $16.4M $22.1M 34.8% GROSS PROFITS $68.8M $71.6M 4.1% ADJUSTED EBITDA $17.0M $18.0M 5.6% NET INCOME $6.7M $9.7M 45.2% 12 MONTH ORDER BACKLOG $96.9M $109.8M 13.3% N
Slide 32: Evolution of Majesco SaaS Offering
Evolution of Majesco SaaS Offering PUBLIC CLOUD NATIVE $59.0M Total from cloud based customers for the full year FY20 ending March 31, 2020. SCALABILITY PUBLIC CLOUD PRIVATE CLOUD $22.1M Cloud subscription revenue for the full year FY20 ending March 31, ASP / HOSTING 2020. PERFORMANCE © 2020 Majesco
Slide 33: Product Revenue Up 85%
Product Revenue Up 85% Recurring Revenue Growth | Year Over Year (Millions) Product revenue includes license, subscription & maintenance 61.8 Product revenue for FY 2020 was 42.2% of total revenue 46.4 compared to 32.8% in FY 2019 33.4 Product revenue up 84.7% in two years from $33.4M to $61.8M FY20
Slide 34: Cloud Subscription Revenue Doubles
Cloud Subscription Revenue Doubles Cloud Revenue Growth | Year Over Year (Millions) 22.1 Cloud subscription revenue of $22.1M in FY 2020 increased 16.4 99.0% from $11.1M in 2018 11.1 FY2018 FY2019 FY2020 © 2020 Majesco. All rights reserved. 24
Slide 35: Growth in Adjusted EBITDA Over 3 Years
Growth in Adjusted EBITDA Over 3 Years Adjusted EBITDA ($ Mn and % to revenue) 12.3% Adjusted EBITDA has increased dramatically with product revenue now 42.2% of total revenue versus 24.0% in FY17. 11.2 18.0 5.0% 6.1 FY2017 FY2020 Note: The terms EBITDA and Adjusted EBITDA are not defined under U.S.
Slide 36: Strategic Vision
• 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 innovative Strategic Vision technology solutions to
Slide 37: Together We're Transforming the Future of Insurance
Together We’re Transforming the Future of Insurance © 2020 Majesco. All rights reserved. 27
Slide 38: Join Us on Our Journey!
NASDAQ: MJCO Join Us on Our Journey!
Slide 39: Appendix
Appendix 29
Slide 40: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income FY17 FY19 FY20 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: Interest Income $(0.0)M $(0.1)M $(0.6)M Less: Other (Income) / expe