Newgen Software Technologies Limited · NSE:NEWGEN

Newgen Software Technologies — Q1 FY2020 Earnings Presentation

20 slides from Newgen Software Technologies's earnings presentation, July 2019

  1. Slide 1: Newgen Software Q1 FY'20 Investor Update

    July 2019 NEWGEN SOFTWARE Reinvent Your Workplace Q1 FY’20 Investor Update COPYRIGHT COPYRIGHT 2016, 2019, NEWGEN NEWGEN SOFTWARE SOFTWARE INC.

  2. Slide 2: Newgen Software Technologies: Software products company

    NEWGEN SOFTWARE TECHNOLOGIES: Software products company providing enterprise-wide, mission critical solutions helping organisations drive digital transformation and competitive differentiation Digitise Process & Adapt Communicate Customer Enterprise Business Communication Content Process Management

  3. Slide 3: Newgen Overview (FY'19)

    Newgen Overview* (FY’19) 540+ 66 5 Active Customers(1) Core countries Verticals 81 new logos added in FY’19 Strong growth in Healthcare and Insurance verticals Strong Industry 2,800+ 44 Gartner Recognition Employees Patent Filings 6 patents granted in FY’19 (1) Invoiced in the last 12 months (2) All

  4. Slide 4: Newgen Overview - Financial Snapshot (FY'19)

    Newgen Overview* - Financial Snapshot (FY’19) 6,206m 22.7% 26.7% FY19 Revenue FY’19 Return on FY’19 Return on 21.0% Average Equity Average Capital Employed2 YoY Growth 20.6% 1,022m 817m EBIDTA Margins 15.9% Net Operating Free Cash Flow3 Cash Flow PAT Margins EBIDTA & PAT Margins expanded 70% increas

  5. Slide 5: Strong Industry Recognition Validates Culture of Innovation

    Strong Industry Recognition Validates Culture of Innovation Gartner WaveTM A Challenger in Magic Quadrant for Content Services “ Leader” in the Forrester WaveTM: Enterprise Content Platform, 25 October 2018, Karen A. Hobert et al ECM Named on all 5 use-cases in Critical Capabilities for Content Serv

  6. Slide 6: Driving Innovation Through R&D to Expand Product Portfolio

    Driving Innovation Through R&D to Expand Product Portfolio R&D Expenses Product Pipeline 380+ 44 (INRm) Content and Process Patents Filings(1) R&D Employees Analytics (with 12 Patents Granted) FY17 313 Content Services  Skilled R&D team with deep product Platform domain expertise Corrus  Expansion

  7. Slide 7: Focused Go-To-Market Strategy

    Focused Go-To-Market Strategy Strategy Across Regions and Verticals is Based on Direct Presence Supported by Partner Ecosystem ~360 Employees in Sales & Marketing Supported by  Differentiated 'land and expand' model Large Network of Channel Partners of 300+  Sale of complete functionality with ini

  8. Slide 8: Multiple Revenue Streams

    Multiple Revenue Streams FY19Revenue 5 year CAGR Split Growth Sale of Products 25% Sale of licenses for the software products 25% Sale of Services (27%)Annuity-based (~49%) ATS / AMC 17% Annual maintenance contracts and technical support 22% Cloud functionality with subscription fees on a Per User S

  9. Slide 9: 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 Whole Time Director Whole Time Director • Co-founded Newgen in 1992 • Co-founded Newgen in 1992 • Been with Newgen sin

  10. Slide 10: 5 Year Financial Overview

    5 Year Financial Overview EBITDA(1) (INRm) and Total Revenue (INRm) PAT (INRm) and PAT Margins EBITDA(1) Margins 7,000 6,206 1,400 1,200 6,000 1,277 1,022 5,124 1,200 1,000 5,000 4,271 975 1,000 4,000 800 729 3,468 800 16% 3,085 702 21% 3,000 600 578 513 600 19% 464 14% 2,000 19% 393 400 15% 16% 12%

  11. Slide 11: Q1 FY'20 Results

    Q1 FY’20 Results

  12. Slide 12: Financial Summary (Consolidated)

    Financial Summary (Consolidated) Q1FY20 Q1FY19 YoY Q4FY19 QoQ Particulars Metrics (Unaudited) (Unaudited) Growth (Unaudited) Growth Revenu Revenue from operations 1,309.7 1,064.7 23% 2,039.7 -36% e (INR Mn) Other Income 29.5 78.0 -62% 25.2 15% Total Income 1,339.2 1,142.7 17% 2,064.9 -35% EBITDA (ad

  13. Slide 13: Diversification Across Verticals and Geographies

    Diversification Across Verticals and Geographies Q1 FY20 Revenue Split by Q1 FY20 Revenue Split by Segment Q1 FY20 Revenue Split by Vertical Geography APAC Scanning (Ex-India) Implement 1% Sale of Others 10% ation Products 13% 20% 19% India Healthcare 33% 12% Banking USA SaaS 50% 30% 6% Insurance AT

  14. Slide 14: New Logo Wins - Q1 FY'20

    New Logo Wins – Q1 FY’20 Major deals include:  License Agreement with a global leader in beverage alcohol  Cloud deal with a US Company in legacy annuity business  License Agreement with a Filipino based stock life insurance 12 company  Saudi Arabia conglomerate with interests in petrochemicals,

  15. Slide 15: Significant Wins - Q1 FY'20

    Significant Wins – Q1 FY’20 APAC and USA regions on a stronghold: Revenue Growth – Q1 FY’20 (YoY) 70% 65% 60% Key Agreements with Existing Customers 50% 40%  License Agreement with two large banks in the EMEA 30% 24% Region 21% 20% 14% 10%  License Agreement with a large public sector bank in Indi

  16. Slide 16: Business Highlights - Q1 FY'20

    Business Highlights – Q1 FY’20 Focus on innovation: Granted patent in July 2019 by US Patent Office for the Company’s Intelligent Check Deposit Machine which would help in optimizing the check clearing cycle while ensuring security and compliance Improved positioning through global alliance: Compli

  17. Slide 17: Debtors Days

    Debtors Days Debtor Days (Based on Gross Debtors) Debtor Days (Based on Net Debtors) (INRm) (INRm) 139 days 167 days 112 days 134 days 2,374 1,979 2,421 2,018 June 30, 2018 June 30, 2019 June 30, 2018 June 30, 2019 Debtor Days Gross Trade Receivables (INR Mn) Debtor Days Net Trade Receivables (INR M

  18. Slide 18: Annexure

    Annexure

  19. Slide 19: P&L Statement

    P&L Statement (All amounts in INRm, except per share data and unless Q1 FY 2020 Q1 FY 2019 Q4 FY 2019 FY 2019 FY 2018 otherwise stated) (Unaudited) (Unaudited (Unaudited) Revenue Revenue from operations 1,309.7 1,064.7 2,039.7 6,206.4 5,124.3 Other income 29.5 78.0 25.2 203.8 76.1 Total revenue 1,33

  20. Slide 20: 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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