Slide 1: Filing cover letter to stock exchanges
November 11, 2019 To The National Stock Exchange of India Limited BSE Limited Mumbai, India Dear Sir/Madam, Sub: Subex Limited “The Company”- Updated Investor Presentation Q2 FY 20 Earnings Call November 11, 2019 As per Regulation 30 of the SEBI (LODR) Regulations, 2015, please find enclosed the Upd
Slide 2: Subex Limited Investor Presentation – Q2FY20
Subex Limited Investor Presentation – Q2FY20 November 8, 2019
Slide 3: Forward looking statement
Forward looking statement Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks an
Slide 4: Agenda
Agenda Company Overview Strategy & Investment Rationale Financial Performance Quarterly Updates Awards & Recognitions 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Snapshot
Snapshot Financial Performance H1FY20 □ Leading telecom analytics solution provider REVENUE □ Pioneer in enabling Digital Trust for businesses globally Nature of Business □ Focus on privacy, security, risk mitigation, predictability 0.4% and confidence in data ₹ 1,646 Mn EBITDA □ Managed by handpick
Slide 7: Subex Today
Subex Today 1994 + Years of Experience Foundation of 800+ Company Employees 300+ 90+ 200+ Global Installations Countries Customers Globally 35+ US$ 2 mn US$ 55 mn Industry Awards Order Book in FY19 R&D spend in new areas 6
Slide 8: Vision Statement
Vision Statement PURPOSE VISION Experience the thrill of unlocking Unlocking possibilities by being the World possibilities Leader in digital trust OUR VALUES THINK CUSTOMER MAKE IT HAPPEN DELIVER VALUE BE OPEN. BE FAIR. WIN TOGETHER Largest & most trusted player in digital trust as measured by numb
Slide 9: What we do?
What we do? • By leveraging data which is gathered across networks, customers, and systems coupled with its domain knowledge and the capabilities of its core solutions, Subex helps CSPs to drive new business models, enhance customer experience and optimize enterprises 8
Slide 10: Digital Disruption
Digital Disruption Customer Preferences: Unforeseen Risks: • Instant gratification • Cross Industry Competiton • Personalization • Unknown-Unknowns • Unforgiving • Influential Business Models: • SaaS • Crowdfunding • Mobile-first • Symbiotic 9
Slide 11: What does this mean?
What does this mean? New Products and Services Leverage the Increase in partners hyperconnected world Need for Renewed focus on data-driven decisions customer experience 10
Slide 12: Subex – Partner for Digital Trust
Subex – Partner for Digital Trust Digital Trust 11
Slide 13: Strategy & Investment Rationale
Strategy & Investment Rationale 12
Slide 14: Focus Areas
Focus Areas Vibrant Subex Revenue Growth 13
Slide 15: 3 Horizon Strategy for Growth
3 Horizon Strategy for Growth Horizon 1 Horizon 2 Horizon 3 Core areas Immediate Growth Long Term Growth Enhance the core Growth in new Invest in areas Emerging Areas ― Revenue Assurance (Multi-Vertical SaaS) ― Fraud Management ― IoT Security ― Asset Assurance (Multi-vertical product) ― Crunch Metri
Slide 16: FY20 Plan
FY20 Plan Focus on execution of growth strategy HORIZON 1 • • Protect – Leverage Product / Domain Grab – Aggressive replacement by H1 leveraging partners • Grow –Leverage Consulting capabilities. Go “Deep and Wide” HORIZON 3 H3 • CrunchMetrics – Establish presence in eCom & FinTech – Strengthen prod
Slide 17: Growth Drivers
Growth Drivers Telcos expanding Growing Importance Increasing Focus Enterprise Towards Digital on 5G and MEC Business Security 16
Slide 18: Investment Rationale
Investment Rationale □ Leader in Digital Trust space and help businesses thrive by leveraging Digital Trust as a competitive advantage □ Making strong inroads in the multi vertical IoT Security space; IoT Security Market is expected to touch US$ 4.5 billion by 2022 □ Incubating virtual startups with
Slide 19: Financial Performance
Financial Performance 18
Slide 20: Financial Summary
Financial Summary Revenue Revenue by Services 3,598 3,573 3,481 3,225 3,243 License In Rs Million 10% Implementation & 1,646 33% Customisation 24% Managed Services 33% Support services & FY15 FY16 FY17 FY18 FY19 H1 FY20 others Gross Margin (%) and EBITDA Margin (%) Revenue by Region 58% 57% 60% 57%
Slide 21: Free Cash Flow Overview
Free Cash Flow Overview Free Cash Flow 575.8 633.5 479 508.2 523.4 In Rs Million 638 663.8 539.2 536.4 545.8 -62.2 -30.3 -60.2 -28.3 -22.4 FY15 FY16 FY17 FY18 FY19 Operating Cash Flow Capex 20
Slide 22: Financial Performance – FY19
Financial Performance – FY19 Amount in Rs Million Consolidated FY 19 FY 18 FY 17 FY 16 H1 FY20 Particulars 2018-19 2017-18 2016-17 2015-16 Income Revenue from operations 3,481 3,243 3,573 3,225 1,646 Other income 10 14 115 18 18 Total income 3,491 3,257 3,689 3,243 1,664 Expenses Employee benefits e
Slide 23: Quarterly & Half Yearly Updates
Quarterly & Half Yearly Updates 22
Slide 24: Financial Highlights – Q2FY20
Financial Highlights – Q2FY20 q Revenue stood at Rs 857 Million as against Rs 880.6 Million in Q2FY19, a decrease of 3% on YoY basis. q EBITDA (ex-forex) stood at Rs 180 Million as against Rs 123.6 Million in Q2FY19, an increase of 46% on YoY basis. q EBITDA margin improved by 700 bps to 21% on YoY
Slide 25: Financial Highlights – H1FY20
Financial Highlights – H1FY20 q Revenue stood at Rs 1,646 Million as against Rs 1,640 Million in H1FY19, increased by 0.4%. q EBITDA (ex-forex) was at Rs 332 Million as against Rs 168.4 Million during H1FY19, increased by 97% on Y-o-Y basis. q PAT stood at Rs 116 Million as against Rs 103 Million in
Slide 26: Financial Summary – Q2FY20
Financial Summary – Q2FY20 Operating Revenue EBITDA PAT 21.0% In Rs Million 19.1% In Rs Million In Rs Million 14.0% 7.4% 7.2% 6.7% 881 789 857 124 152 180 63 53 63 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 EBITDA EBITDA Margin PAT PAT Margin 2525
Slide 27: Revenue Metrices – Q2FY20
Revenue Metrices – Q2FY20 Revenue by Region Revenue by Service 15% 18% 21% 32% 3% 34% 34% 4% 7% 33% 33% 61% 57% 39% 58% 23% 28% 24% 22% 21% 10% 7% 14% 3% Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Support Services & Others Managed Services Americas EMEA India APAC & RoW Implementation & Customisation
Slide 28: Operating Metrices – Q2FY20
Operating Metrices – Q2FY20 Debtors Days Employee Headcount 117 980 925 100 100 887 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 27
Slide 29: Financial Performance – Q2FY20
Financial Performance – Q2FY20 Amount in Rs Million Consolidated Particulars Q2 FY20 Q1 FY20 Q2 FY19 Q-o-Q Y-o-Y H1 FY20 H1 FY19 Y-o-Y 2019-20 2019-20 2018-19 Growth % Growth % 2019-20 2018-19 Growth % Income Revenue from operations 857 789 881 9% -3% 1,646 1,640 0.4% Other income 14 4 2 250% 724% 1
Slide 30: Key Clients
Key Clients 200+ Global customers 300+ Installation in 90+ Countries 29
Slide 31: Executive Management Team
Executive Management Team Vinod Kumar Shankar Roddam Venkatraman GS Mohan Sitharam CEO & Managing Director Chief Operating Officer Chief Financial Officer Chief Human Resources Officer Vinod is responsible for leading the Shankar is the Chief Operating Venkatraman GS is the Chief Mohan manages human
Slide 32: Executive Management Team
Executive Management Team Rohit Maheshwari Kiran Zachariah Suraj Balachandran Bhavna Singh Head of Strategy & Products Head of IoT security Head of Sales – EMEA & APAC General Counsel Rohit is responsible for delivering Kiran is a leader in the field of IoT Security Suraj is responsible for strategy
Slide 33: Awards & Recognition
Awards & Recognition 35+ Winner at Aegis 2016 Graham Bell Winner at Converge Best Fraud Awards 2017 2018 - Big Data & Prevention – Data Analytics Project Science Award Industry recognized 2017 - Innovation in Managed Services and Security & awards Assurance 32
Slide 34: Thank You
Thank You investorrelations@subex.com | +91 806659 8700 dpingle@christensenir.com | +91 02242150210