Newgen Software Technologies Limited · NSE:NEWGEN
Newgen Software Technologies — Q2 FY2019 Earnings Presentation
28 slides from Newgen Software Technologies's earnings presentation, October 2018
Slide 1: Newgen Software Q2 FY'19 Investor Presentation
Oct 2018 NEWGEN SOFTWARE Reinvent Your Workplace Q2 FY’19 Investor Presentation COPYRIGHT COPYRIGHT 2016, 2018, NEWGEN NEWGEN SOFTWARE SOFTWARE INC.
Slide 2: What we do?
What we do? Reinvent workplaces by enhancing customer facing processes Manage Manage Manage Complex Outbound Digital Processes & Content Communication Workflows COPYRIGHT 2018, NEWGEN SOFTWARE 2
Slide 3: How we do it?
How we do it? We provide low-code and flexible platforms that enable organisations to easily and rapidly build powerful applications addressing their strategic business needs Holistic process Flexible visual interface experience - Seamless integrations with minimal coding connecting data, people, pr
Slide 4: Our Products
Our Products Digitise Process & Adapt Communicate Enterprise Business Customer Content Process Communication Management Management Management Deliver contextual Deliver contextual content content for for Create smarter processes, Create, personalize and deliver smarter decision smarter decision maki
Slide 5: Transforming Banks & Governments
Transforming Banks & Governments Banks & Financial Services - Providing solutions Governments to leading institutions worldwide Account Citizen Opening Delivering smooth & delightful on-boarding Services Supporting in delivering responsive experience to customers and efficient citizen services Lendi
Slide 6: Transforming Shared Services, Healthcare & Insurance
Transforming Shared Services, Healthcare & Insurance Shared Services Healthcare Accounts Provider Payable Contract Reducing cycle time, and ensuring better Management Aiming for faster contracting; agility & compliance speed in provider contracting process Appeals & Grievances Accounts Management De
Slide 7: Our Market Opportunity
Our Market Opportunity Total Horizontal Market Size in 2017 estimated at $22.5bn 25 Market expected to grow to $30.2bn 1.5 growing at 7-10% by 20 2022 6.1 Figures in $bn 15 22.5 30.2 10 14.9 5 0 ECM BPM CCM Total Source: Ovum – Business Software Industry Report: Digitalisation, IT modernisation and
Slide 8: Newgen Today
Newgen Today* 520+ 60+ 5 Active Customers(1) Core countries Verticals Strong 2,600+ 37 Industry Employees Gartner Recognition Patents Applied (250+ in R&D) (1) Invoiced in the last 12 months (2) All figures as of March 2018 COPYRIGHT 2018, NEWGEN SOFTWARE 8
Slide 9: Newgen Today - Financial Snapshot
Newgen Today* - Financial Snapshot 5,124m 22.3% 26.7% FY18 Revenue FY’18 Return on FY’18 Return on 20.0% Average Equity Average Capital YoY Growth Employed 602.4m 19% Net Operating 132.2m Cash Flow Net Debt EBIDTA Margins 1) All figures as of March 2018 COPYRIGHT 2018, NEWGEN SOFTWARE 9
Slide 10: Strong Industry Recognition Validates Culture of Innovation
Strong Industry Recognition Validates Culture of Innovation Gartner WaveTM A Niche Player in Magic Quadrant for Content Services “ Leader” in the Forrester WaveTM: Enterprise Content ECM Platform, 2017 Management – Transactional Content Services, 5 October 2017, Karen A. Hobert et al Q2 2017 A Visio
Slide 11: Focused on Driving Innovation Through R&D to Expand Product Portfolio
Focused on Driving Innovation Through R&D to Expand Product Portfolio R&D Expenses Product Pipeline 250+ 37 (INRm) Patents Applied(1) ECM NXT R&D Employees (with 5 Registrations) FY16 250 Virtual Repository Skilled R&D team with deep product Services domain expertise Corrus Expansion of product
Slide 12: Focused Go-To-Market Strategy
Focused Go-To-Market Strategy Strategy Across Regions and Verticals is Based on Direct Presence Supported by Partner Ecosystem 270+ 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 13: Multiple Revenue Streams
Multiple Revenue Streams FY18 5 year CAGR Revenue Split Growth Sale of Products 27% Sale of licenses for the software products 26% Annuity-based (~43%) ATS / AMC 17% Annual maintenance contracts and technical support 22% Cloud functionality with subscription fees on a Per User SaaS 2% Per Month mode
Slide 14: Multiple Vectors for Long Term Growth
Multiple Vectors for Long Term Growth Expansion of Product Portfolio and Continued R&D Investments Expansion of Strategic Business Applications to Focus on Attractive New Vertical Verticals in Select Mature Markets Expand Our Business and Geographical Footprint COPYRIGHT 2018, NEWGEN SOFTWARE 14
Slide 15: 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 Director Founder-led management Whole Time Director • Co-founded Newgen in 1992 • Co-founded Newgen in 1992 • Been w
Slide 16: 5 Year Financial Overview
5 Year Financial Overview EBITDA(1) (INRm) and Total Revenue (INRm) PAT (INRm) and PAT Margins EBITDA(1) Margins 14% 19% 6,000 800 1,100 19% 19% 729 5,124 975 15% 16% 700 5,000 16% 900 12% 4,271 600 11% 4,000 702 8% 513 3,468 700 500 464 3,085 578 411 3,000 400 2,484 481 500 393 300 278 2,000 300 20
Slide 17: Q2 FY'19 & H1 FY'19 Results
Q2 FY’'19 & H1 FY’19 Results
Slide 18: Financial Summary (Consolidated)
Financial Summary (Consolidated) Particular Q2FY19 Q2FY18 YoY Q1FY19 QoQ H1 FY19 H1 FY18 YoY Metrics s (Unaudited) (Unaudited) Growth (Unaudited) Growth (Unaudited) (Unaudited) Growth Revenu Revenue from operations 1,496.6 1,186.6 26% 1,064.7 41% 2,561.3 2,072.5 24% e (INR Mn) Other Income 58.2 23.0
Slide 19: New Logo Wins
New Logo Wins 5 new wins in US region including 3 in Banking & Financial Services 3 new wins in Cloud/ SaaS 22 Major license deals include agreement with a leading inclusive bank in Africa, a savings bank in Philippines, the largest credit union in Northeast region of US, serving members for 75+ yea
Slide 20: Business Highlights - Q2 FY'19
Business Highlights - Q2 FY’19 EMEA and USA regions on a stronghold: 47% 4 deals of over Rs 5 crores during the quarter 26% USA/ Americas Region 13% 13% Won a showcase project for Governance and Optimization under Efficient and Responsive Government funding from IDB. Newgen to provide case managem
Slide 21: Diversification Across Verticals and Geographies
Diversification Across Verticals and Geographies Q2 FY19 Revenue Split by Q2 FY19 Revenue Split by Segment Q2 FY19 Revenue Split by Vertical Geography APAC Implement Scanning (Ex-India) ation 3% Others 9% 10% 20% India SaaS 30% 4% Banking Sale of 42% Products USA 39% 28% Healthcare 14% Support 26% I
Slide 22: Business Highlights – Q2 FY'19
Business Highlights – Q2 FY’19 Cloud/ Saas business model strengthening annuity revenues: In Q2 FY’19, SaaS revenues were at Rs 5.7 crores, 163% increase over same quarter previous year In H1 FY’19, total SaaS revenues were at Rs 10.6 crores compared to Rs 4.1 crores in H1 FY’18 Company continues
Slide 23: Customer Speak
Customer Speak “Our goal is to achieve greater efficiency and enhanced customer experience by offering superior and consistent service across all our touch- points. Newgen’s world-class BPM & ECM product suite has automated our business processes and helped us to achieve business excellence resultin
Slide 24: Debtors Days
Debtors Days Debtor Days (Based on Net Debtors) (INRm) 2,493 Debtors days (based on Net Debtors) as per Ind AS 2,220 accounting standards were at 162 days as on 30 Sep’18. 162 days (considering trailing twelve month revenues) 148 days Gross Debtors at Rs 2,771.9 Mn While we are working towards
Slide 25: Annexure
Annexure
Slide 26: P&L Statement
P&L Statement (All amounts in INRm, except per share data and unless Q2 FY 2019 Q2 FY 2018 Q1 FY 2018 H1 FY 2019 H1 FY 2018 otherwise stated) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue Revenue from operations 1,496.6 1,186.6 1,064.7 2,561.3 2,072.5 Other income 58.2 23.0 78.
Slide 27: Balance Sheet
Balance Sheet (All amounts in INRm, except per share data and unless otherwise (All amounts in INRm, except per share data and stated) 30-Sep-18 31-Mar-18 unless otherwise stated) 30-Sep-18 31-Mar-18 Assets Equity & Liabilities Non-current assets 1,466.8 1,288.8 4,153.9 4,052.2 Equity Property, plan
Slide 28: 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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