Slide 1: Investor Presentation Filing Letter to BSE and NSE
August 10, 2020 To BSE Limited The National Stock Exchange of India Limited Dear Sir/Madam, Sub: Subex Limited “The Company”- Investor Presentation on August 11, 2020 As per Regulation 30 of the SEBI (LODR) Regulations, 2015, please find enclosed the Investor presentation for Q1 of FY 21, which will
Slide 2: Q1 FY21 Business Update
Q1 -FY21 Business Update Aug 10, 2020 August 20 Proprietary and Confidential www.subex.com
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 • Highlight • Q1 FY21 Financial Performance • Q2 FY21 Forecast • Headcount & Attrition Analysis • Update on Restructuring • General Updates
Slide 5: FY21 Qtr1 Operational Highlights
FY21 Qtr1 Operational Highlights • Q1 revenue at $11.7M in line with the budget • Q1 Order Intake at $8M ($4.5M completed bookings) lower than budget - general delayed due to COVID impact • Q1 collections at $12.5M better than budgeted • Quarterly expenses lower than the normal run rate due to reduc
Slide 6: Market & Operational Update
Market & Operational Update • Telecom Operators have started reporting revenue reduction of around 6 to 10% for the April-June (2020) Quarter • EBITDA reductions for the same period is in the range of 30 to 50% • Covid related business Impact in various geographies • Americas & Africa – Major impact
Slide 7: Business Development Update
Business Development Update • Significant increase in contract closure cycle time • Price pressure both on new projects and annuity • Existing projects and RFPs • Progressing in Europe, APAC & ME • Put on hold in Americas and Africa • Overall delay in new projects; delaying replacement projects • We
Slide 8: FY21 Q1 Performance
FY21 Q1 Performance FY 21 Target AOP Parameter 21 Actua Q1 Q2 Q3 Q4 FY21 Q1 12.50 15.00 16.00 16.50 60.00 Order Intake 8.00 11.50 13.00 15.00 16.50 56.00 Revenue 11.75 11.00 11.60 11.70 11.70 46.00 Cost 8.55 0.50 1.40 3.30 4.80 10.00 EBIDTA 3.20 1.00 1.90 3.80 5.30 12.00 Ind AS EBIDTA 3.67 11.50 13.
Slide 9: FY21 Q2 Financial Forecast
FY21 Q2 Financial Forecast FY 21 Target AOP Parameter 21 Actua FY 21 Forecast Q1 Q2 Q3 Q4 FY21 Q1 Q2 FY21 12.50 15.00 16.00 16.50 60.00 Order Intake 8.00 14.00 22.00 11.50 13.00 15.00 16.50 56.00 Revenue 11.75 12.00 23.75 11.00 11.60 11.70 11.70 46.00 Cost 8.55 9.30 17.85 0.50 1.40 3.30 4.80 10.00 E
Slide 10: FY21 Revenue Planning
FY21 Revenue Planning Fiscal FY21 Revenue Net FY 21 Period Backlog Forecast Backlog Opening 38.00 - 38.00 Q1 6.00 11.75 32.25 Q2 7.00 12.00 27.25 Q3 4.00 15.50 15.75 Q4 1.00 16.75 - FY21 Total 56.00 56.00 - All Values in Million USD • Key will be to add $13M back log in H1 • Increase delivery capaci
Slide 11: Headcount by Grade Analysis
Headcount by Grade Analysis Mar-20 Jun-20 Jul-20 YTD • Net headcount Attri Addi Prom Grade Onsite BLR Total Onsite BLR Total tion tion tion Onsite BLR Total Net increase by 56 M4+ 4 9 13 3 9 12 3 9 12 -1 M3 5 4 9 5 4 9 1 4 4 8 -1 • Plan to add M2 10 29 39 10 27 37 1 10 28 38 -1 another 50 in M1 24 8
Slide 12: Attrition Analysis
Attrition Analysis 12 Months Trailing Attrition - Total 12 Months Trailine Attrition -A & B Raters 28% 7.00% 26% 6.00% 24% 5.00% 22% 4.00% 20% 3.00% 18% 2.00% 16% 14% 1.00% 12% 0.00% Mar'20 Apr'20 May'20 June'20 July'20 Mar'20 Apr'20 May'20 Jun'20 Jul'20 Engg Delivery Client Faci ng Strategy Enablin
Slide 13: Reduction of Share Capital - Update
Reduction of Share Capital - Update • Post approval of shareholders, application was made to NCLT, Bengaluru Bench on June 27, 2020. • NCLT heard on 1st July and vide its order dated July 6, 2020; • Directed Registrar of Companies, Karnataka & Regional Director, Southern Region to submit its report
Slide 14: Other Updates
Other Updates • Plan to move office to scale down capacity & cost • Appointing 4 to 5 Advisers for accessing new markets/ customers • Significant push to create 10X culture • OKR (Objective & Key Results) • Resetting Performance Expectation • Coaching 13
Slide 15: Update - Innovation Journey
Update - Innovation Journey • Subex listed in Gartner report on Augmented Analytics • 2 Patents Filed • Significant scaling of our AI/ML capabilities • Bar raising talent additions – a key objective • The Bid Leap - 57 Improvement Ideas from Subexians 14
Slide 16: Onboarded Advisors
Onboarded Advisors • Amrita Gangotra Ex CIO Airtel, Vodafone Group • Tony Wenlock Ex Sr Executive Amdocs, HP • Graham Baxter Ex COO Hutchison UK 15
Slide 17: In Summary
In Summary • H1 forecasted to be very close to our budget despite Covid impact • Focus will be to add required backlog and execution capacity to hit FY21 goals by end of H1 • Steps being taken to improve performance culture • Capital restructuring progressing as per our plan 16
Slide 18: Thank you
Thank you August 20 Proprietary and Confidential www.subex.com