Newgen Software Technologies Limited · NSE:NEWGEN
Newgen Software Technologies — Q1 FY2022 Earnings Presentation
31 slides from Newgen Software Technologies's earnings presentation, July 2021
Slide 1: Investor Presentation – Q1 FY'22
NEWGEN SOFTWARE TECHNOLOGIES LTD. INVESTOR PRESENTATION – Q1 FY’22 July 2021 Connecting Enterprises. Transforming Experiences. COPYRIGHT 2021, NEWGEN SOFTWARE
Slide 2: Newgen Corporate Overview
NEWGEN CORPORATE OVERVIEW
Slide 3: Unveiling NewgenONE Digital Transformation Platform
UNVEILING NewgenONE DIGITAL TRANSFORMATION PLATFORM Contextual Content Services Low Code Process Omnichannel Customer (ECM) Automation (BPM) Communication (CCM) OmniDocs iBPS OmniOMS Deliver Managecontextual complexcontent forinformation business smarter Digitize end-to-end customer and Deliver pers
Slide 4: Unveiling NewgenONE Digital Transformation Platform
UNVEILING NewgenONE DIGITAL TRANSFORMATION PLATFORM Complex, Enterprise-wide Business Processes Truly Digital NewgenONE is a Traditionally Strong Process Automation Platforms Transformation comprehensive, low code Complex Information Simple Information Platforms platform with native process automati
Slide 5: Newgen's Platforms Ideal for Digital Transformation
NEWGEN’S 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 competitive dif
Slide 6: NewgenONE Contextual Content Services (ECM)
NewgenONE 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 cu
Slide 7: NewgenONE Low Code Process Automation (BPM)
NewgenONE 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 office
Slide 8: NewgenONE Omnichannel Customer Communication (CCM)
NewgenONE OMNICHANNEL 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 c
Slide 9: 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 10: 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 11: 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 12: Investment Rationale
INVESTMENT RATIONALE
Slide 13: 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 14: 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 15: 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, 20 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 16: 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 17: 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 18: 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 19: 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 20: Renewed Focus on Mature Markets Through Global System Integrators
RENEWED FOCUS ON MATURE MARKETS THROUGH GLOBAL SYSTEM INTEGRATORS 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
Slide 21: 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 22: 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 23: Q1 FY'22 Financial Results
Q1 FY’22 FINANCIAL RESULTS
Slide 24: Financial Summary (Consolidated)
FINANCIAL SUMMARY (CONSOLIDATED) Q1FY22 Q1FY21 YoY Q4FY21 QoQ Particulars (Unaudited) (Unaudited) Growth (Unaudited) Growth Revenue (INR Mn) Revenue from operations 1,595 1,321 20.8% 2,000 -20.2% Other Income 106 39 170.2% 46 131.6% Total Income 1,701 1,360 25.1% 2,046 -16.8% EBITDA (adjusted for ot
Slide 25: Customer Wins
CUSTOMER WINS Major deals in Q1 include: Executed an agreement with one of the leading banks in the Middle East region, for supply of software licenses, Annual Technical Support implementation and other support related services. Total size of the work 11* order under the Agreement is $ 5.9 Mn over
Slide 26: Diversification Continues Across Verticals and Geographies
DIVERSIFICATION CONTINUES ACROSS VERTICALS AND GEOGRAPHIES Q1 FY’22 Revenue Split by Segment Q1 FY’22 Revenue Split by Vertical Q1 FY’22 Revenue Split by Geography Implement APAC ation & (Ex-India) other Sale of Healthcare Others 11% India services Products 7% 9% 23% 17% 17% Insurance 6% SaaS BPO/IT
Slide 27: Analyst Recognitions (Q1 FY'22)
ANALYST RECOGNITIONS (Q1 FY’22) Positioned as a “Strong Performer” in The Forrester Wave™: Content Platforms, Q2 2021, authored by Cheryl McKinnon et al. According to the report, “Newgen Software Technologies continues to shift its OmniDocs content platform to a cloud-first delivery model and in
Slide 28: Business Highlights (Q1 FY'22)
BUSINESS HIGHLIGHTS (Q1 FY’22) Patent Grants Granted two additional patents during the quarter taking the total patent grants to 20 in India and the US Granted a patent for an invention entitled “Online Collaborative Signing of Documents” for 20 years commencing from November 2010 by the Indian Pa
Slide 29: Strengthening Balance Sheet
STRENGTHENING BALANCE SHEET Debtor Days (Based on Net Debtors) Cash and Cash Equivalents & Bank Balance (INRm) 2,828 128 130 125 2,600.0 120 115 1,755 2,100.0 110 100 105 1,600.0 100 2,211 95 1,922 1,100.0 90 85 600.0 80 JUNE 30, 2020 JUNE 30, 2021 100.0 Debtor Days Net Trade Receivables (INR Mn) JU
Slide 30: 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 31: P&L Statement
P&L STATEMENT (All amounts in INRm, except per share data and unless otherwise stated) Q1 FY 2022 Q1 FY 2021 Q4 FY 2021 FY 2021 FY 2020 Revenue Revenue from operations 1,595.4 1,321.2 1,999.8 6,726.2 6,607.6 Other income 105.8 39.2 45.7 150.4 209.6 Total revenue 1,701.2 1,360.4 2,045.5 6,876.6 6,817
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