Newgen Software Technologies Limited · NSE:NEWGEN
Newgen Software Technologies — FY2021 Earnings Presentation
29 slides from Newgen Software Technologies's earnings presentation, May 2021
Slide 1: Investor Presentation – FY'21 and Q4 FY'21
NEWGEN SOFTWARE TECHNOLOGIES LTD. INVESTOR PRESENTATION – FY’21 AND Q4 FY’21 May 2021 Connecting Enterprises. Transforming Experiences. COPYRIGHT 2021, NEWGEN SOFTWARE
Slide 2: Newgen Corporate Overview
NEWGEN CORPORATE OVERVIEW
Slide 3: Newgen: Overview
NEWGEN: OVERVIEW Enterprise-wide Digital Automation platform player offering mission critical solutions to organizations for digital transformation and competitive differentiation Digitise Process & Adapt Communicate Contextual Content Low Code Process Personalized Customer Services (ECM) Automation
Slide 4: Newgen's Three Platforms Ideal for Digital Transformation
NEWGEN’S THREE PLATFORMS IDEAL FOR DIGITAL TRANSFORMATION Contextual Each platform a front-runner in its own category Content Services (ECM) Most Digital use cases leverage more than one Product Built on Unified Architecture and thus extremely compatible and seamlessly integrate, providing competiti
Slide 5: Newgen Contextual Content Services (ECM)
NEWGEN CONTEXTUAL CONTENT SERVICES (ECM) Digitize Workplace with Contextual Automation, Compliance, and Intelligence – On Cloud Gartner A Visionary in the 2020 Magic Quadrant for Content Services Platforms * Case Study Digital transformation of India’s leading insurance company with over 250mn custo
Slide 6: Newgen Low Code Process Automation (BPM)
NEWGEN LOW CODE PROCESS AUTOMATION (BPM) Rapid Application Development for Deep & Complex Business Applications across Devices Gartner A Niche Player in 2020 Magic Quadrant for Enterprise Low-Code Application Platforms *. Case Study One of the largest banks in the US with around 240 branch offices i
Slide 7: Newgen Personalized Customer Communication (CCM)
NEWGEN PERSONALIZED CUSTOMER COMMUNICATION (CCM) Use Business Data and Manage the Communication Output – Personalized and at Scale Case Study Newgen CCM Solution Implementation for a leading private bank in India. The bank chose the Newgen's CCM platform to make their customer communication more cus
Slide 8: Newgen Today: A Snapshot (FY'21)
NEWGEN TODAY: A SNAPSHOT (FY’21) ~550 Installed base across 17 verticals with Active Customers(1) 72 5 Core Verticals (67 New Logos added) Countries ~3,000 44 Strong Industry Patent Filings Recognition Personnel (with 18 patent grants) (Gartner & Forrester) (with ~470 personnel in R&D ~300 personnel
Slide 9: Newgen Today: Financial Snapshot (FY'21)
NEWGEN TODAY: FINANCIAL SNAPSHOT (FY’21) Rs 6,726 Mn Rs 2,002 Mn Rs 1,265 Mn Revenues Subscription Revenues(2) PAT (with annuity(1) of 57%) (19% YoY Growth) (74% YoY Growth) Rs 2,118 Mn Rs 496 Mn Rs 2,157 Mn US Region Revenues SaaS Revenues Net Operating Cash Flows (16% YoY Growth) (30% YoY Growth)
Slide 10: Resilient Business Model in Place
RESILIENT BUSINESS MODEL IN PLACE 57% 20% 23% Large annuity revenues streams Annuity Revenues(1) Sale of Products Sale of Services FY21 Revenue Split by Segment 60% 9% 8% 7% 6% 10% Mission critical solutions across key verticals Banking & FS Govt. Insurance Health BPO Others FY21 Revenue Split by Se
Slide 11: Investment Rationale
INVESTMENT RATIONALE
Slide 12: Investment Rationale
INVESTMENT RATIONALE Large Market Opportunity With Accelerated Growth Innovative product suite with continuing focus on R&D Diversified global customer base with predictable revenue streams Focused Go-to-market Strong Focus on Annuity and Subscription Revenues Experienced Management Team
Slide 13: Large Market Opportunity With Accelerated Growth
LARGE MARKET OPPORTUNITY WITH ACCELERATED GROWTH MARKET ESTIMATE ($BN) BY 2022 LOW CODE DEVELOPMENT TECHNOLOGIES ENTERPRISE CONTENT MANAGEMENT $20BN With the low code development technologies market, the overall opportunity for digital transformation extends much beyond the traditional BUSINESS PROC
Slide 14: Innovative Product Suite With Continuing Focus on R&D
INNOVATIVE PRODUCT SUITE WITH CONTINUING FOCUS ON R&D 28 years of product DNA; 44 patents filings, 18 Granted(1) R&D Investments (% of New Features Skilled R&D team of ~470 people with revenues) deep domain expertise Intelligent 9.5% 9.8% Content Services Unified platform with modular Low-Code 7.3%
Slide 15: Diversified Global Customer Base With Predictable Revenue Streams
DIVERSIFIED GLOBAL CUSTOMER BASE WITH PREDICTABLE REVENUE STREAMS FY21 Revenue Concentration by Customers 550 Customer base includes Global (% of revenues) ~ Fortune 500 companies Top 5 Top 10 15% 22% 67 new customers acquired in GLOBAL CUSTOMERS FY21, majority on Cloud Sustainable revenues wi
Slide 16: Our Go-To-Market
OUR GO-TO-MARKET Strategy Across Regions and Verticals is Based on Direct Presence Supported by Partner Ecosystem ~300 Employees in Sales & Marketing Supported by Focus on Tier-1 customers in five core Large Network of Channel Partners of 300+ verticals in India, APAC and Middle East & Africa Regi
Slide 17: Deep Domain Expertise
DEEP DOMAIN EXPERTISE Vertical Approach based on Pre-built Solutions accelerators; across core verticals Accelerators working in Mission Critical Mode on 24*7 basis at client organizations, supported from onsite as well as remotely. New Accelerators being added continuously based on Customer Needs B
Slide 18: Targeting Fortune 2000 Enterprise in Mature Markets
TARGETING FORTUNE 2000 ENTERPRISE IN MATURE MARKETS Increasing traction in developed markets of US, Europe and APAC – with focus on sales through Global System Integrators (GSIs) Strengthening the Enterprise sales team by adding experienced and relevant sales team across all major geographies Agg
Slide 19: Renewed Focus on Mature Markets Through GSIs
RENEWED FOCUS ON MATURE MARKETS THROUGH GSIs Entrenching deeper in the Enterprise space through the support of GSIs: Newgen products have built acceptance from some of the largest GSIs and their customers. Supporting GSIs in modernizing solutions and building their IP (using low code application
Slide 20: Strong Focus on Annuity and Subscription Revenues
STRONG FOCUS ON ANNUITY AND SUBSCRIPTION REVENUES Subscription Revenues (INRm) Annuity Revenues (INRm) 3,871 3,686 27% 22% (FY’16-21 CAGR) 3,030 (FY’16-21 CAGR) 2,002 2,209 1,686 1,707 1,275 1,405 961 765 602 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 • Annuity Revenue S
Slide 21: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Diwakar Nigam T.S. Varadarajan 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 since 1997 • 35+ years of experience in development of • 35+ years of exper
Slide 22: FY'21 and Q4 FY'21 Financial Results
FY’21 AND Q4 FY’21 FINANCIAL RESULTS
Slide 23: Financial Summary (Consolidated)
FINANCIAL SUMMARY (CONSOLIDATED) Q4FY21 Q4FY20 YoY Q3FY21 QoQ FY21 FY20 YoY Particulars (Unaudited) (Unaudited) Growth (Unaudited) Growth (Audited) (Audited) Growth Revenue (INR Mn) Revenue from operations 2,000 1,908 4.8% 1,855 7.8% 6,726 6,608 1.8% Other Income 46 92 -50.2% 35 29.7% 150 210 -28.3%
Slide 24: Customer Wins
CUSTOMER WINS 67 Major deals in Q4 include: Seven new logos in the Americas region largely in the Banking and Financial services & Insurance domain including a cloud project for a global life New Logo Wins insurance group during FY’21 Strategic project win for license & implementation at one of
Slide 25: Diversification Continues Across Verticals and Geographies
DIVERSIFICATION CONTINUES ACROSS VERTICALS AND GEOGRAPHIES FY21 Revenue Split by Segment FY21 Revenue Split by Vertical FY21 Revenue Split by Geography APAC Others Implement Healthcare 10% (Ex-India) ation & Sale of 7% 14% Scanning Products India 23% 20% 29% Insurance 8% SaaS BPO/IT 7% 6% Banking 60
Slide 26: Strengthening Balance Sheet
STRENGTHENING BALANCE SHEET Debtor Days (Based on Net Debtors) Cash and Cash Equivalents & Bank Balance (INRm) 2,417 2,600.0 171 158 1,791 2,100.0 1,653 149 149 1,455 1,600.0 129 2,527 2,694 1,100.0 1,996 2,220 2,385 600.0 349 MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2017 2018 2019 2020 202
Slide 27: Business Highlights (Q4 FY'21)
BUSINESS HIGHLIGHTS (Q4 FY’21) Continues Focus on Research & Development Granted a patent for an invention entitled “Image Processing System and Method” for a period of 20 years commencing from March 2018 by the United States Patent and Trademark Office (“USPTO”). This invention relates to a highly
Slide 28: Disclaimer
New Delhi, Disclaimer Toronto, CA IN New Philippine This presentation may contain certain forward looking Mississaug London UK London, Delhi statements concerning Newgen Software Technologies’ future a, ON Mu Kolk s mbai ata business prospects and business profitability, which are subject to a numbe
Slide 29: P&L Statement
P&L STATEMENT (All amounts in INRm, except per share data and unless otherwise stated) Q4 FY 2021 Q4 FY 2020 Q3 FY 2021 FY 2021 FY 2020 Revenue Revenue from operations 1,999.8 1,908.4 1,855.1 6,726.2 6,607.6 Other income 45.7 91.7 35.2 150.4 209.6 Total revenue 2,045.5 2,000.1 1,890.4 6,876.6 6,817.
Newgen Software Technologies — FY2021 Earnings Presentation on 6ix