Cigniti Technologies Limited · NSE:CIGNITITEC
Cigniti Technologies — Non-Deal Roadshow (November 2018)
29 slides from Cigniti Technologies's roadshow presentation, Nov 15, 2018
Slide 1: Corporate Presentation cover letter to exchanges
15 November, 2018 National Stock Exchange of India Ltd, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai — 400051. Fax No.26598237/26598238 Name of Scrip: CIGNITITEC Dear Sir, Cigniti Software Quality | Assured BSE Limited P.J. Towers, Dalal Street Mumbai - 400001. Fax No.22722037/2272312
Slide 2: Cigniti Technologies Ltd. Corporate Presentation
Cigniti Technologies Ltd. Corporate Presentation Nov 2018 www.cigniti.com | Unsolicited Distribution is Restricted. Copyright © 2018 - 19, Cigniti Technologies
Slide 3: Cigniti: Business Overview & Key Metrics
Cigniti: Business Overview & Key Metrics Cigniti is a globally recognized player in Specialized Quality Engineering Services and an emerging leader with Digital offerings Business Overview Financial Overview • Founded in 1998, Cigniti is a global player in Specialized Quality Engineering Heading 201
Slide 4: Cigniti: A Global Leader in Specialized Quality Engineering Services
Cigniti: A Global Leader in Specialized Quality Engineering Services Financial Overview Company Overview Headquartered in Hyderabad, India, Cigniti is North America’s largest Independent Quality Business Metrics FY2018 Valuation Metrics Engineering Services company with operations in 13 countries. I
Slide 5: Cigniti's Core Service Offerings for Large Enterprise Clients
Cigniti’s Core Service Offerings for Large Enterprise Clients Quality Engineering and Quality Assurance and Digital and Next Specialized Offerings Traditional Offerings Generation Offerings • Performance Engineering • Security Testing • IoT Assurance • Service Virtualization • Functional Testing • C
Slide 6: Independent Software Testing Market Overview
Independent Software Testing Market Overview Specialized Testing Services (STS) market is outgrowing the Traditional Testing Services (TTS) market substantially 50 $ 42.8 B Market size in USD B $ 38.3 B • Quality Assurance & Testing Service a large market with 40 6.7% CAGR healthy growth forecast th
Slide 7: Why Independent Software Testing Services – Views from Leading Global Analysts
Why Independent Software Testing Services – Views from Leading Global Analysts • STS Providers offers clients independence and ability to deliver • Addresses the inherent conflict of interest between the full life cycle of testing services development and testing activities, ensuring appropriate rig
Slide 8: Global Software Testing Market Share – Companies (TTS+STS)
Global Software Testing Market Share – Companies (TTS+STS) Rank Vendor Est. 2015 Global STS Revenues ($M) Market Share Market Dynamics & Shift from TTS to STS 1 Accenture 1,900 9 2 Cognizant 1,750 9 • Top 15 Vendors : 73% of Market Share- 13.5 Billion $ • Other vendors : 23% of Market share : 4.9 Bi
Slide 9: Market Share of Independent/Specialised Software Testing Services Companies
Market Share of Independent/Specialised Software Testing Services Companies • Cigniti Stands 3rd in STS, Pure-plays by revenue and 2nd by headcount • Client spending transfers from TTS to STS; as a Strong PETTS result, Acquisition interest declines year after in Independent year, while multi- softwa
Slide 10: Cigniti Recognized as a 'Leader' by Leading Industry Bodies
Cigniti Recognized as a ‘Leader’ by Leading Industry Bodies Cigniti recognized as a ‘leader’ by NelsonHall in overall Software Testing Gartner positioned Cigniti as a “Niche Player” among 300 companies in the Competitive Landscape. Also, it believes that the future of software testing Application Te
Slide 11: Cigniti Recognized as a 'Leader' by Leading Industry Bodies - 2
Cigniti Recognized as a ‘Leader’ by a Leading Industry Bodies - 2 Forrester placed Cigniti as a “Strong Performer” on a 29 point criteria. Everest Group, for the 4th consecutive year, has positioned Cigniti as the Forrester analyses 11 most relevant players in the Continuous Testing ‘Major Contender
Slide 12: A Quality Engineering and Testing company focusing on Large Global Enterprises
Cigniti: A Quality Engineering and Testing company focusing on Large Global Enterprises in High Spend Domains Strategic Focus • Cigniti has a client base of 242 with 50+ Fortune 500 customers and 24 USD Mn dollars account • Cigniti primarily works in high spend and mission critical domains such as I
Slide 13: Strategic Realignment Plan Implemented in 2017
Strategic Realignment Plan Implemented in 2017 Leadership Expansion • Mr. Srikanth Chakkilam, Executive Director, has taken over as CEO of Cigniti Technologies • Industry veteran Mr. Phaneesh Murthy was appointed to the Board of Directors of Cigniti Technologies, Inc. (US) in January 2017 and to the
Slide 14: Board Members
Board Members www.cigniti.com | Unsolicited Distribution is Restricted. Copyright © 2017 - 18, Cigniti Technologies 13
Slide 15: Led by Dedicated Promoters & Managed by Professional Leadership Team
Led by Dedicated Promoters & Managed by Professional Leadership Team C V Subramanyam, Chairman and Managing Director Srikanth Chakkilam, Chief Executive Officer, Cigniti Technologies Inc. • In 1998, Mr. Subramanyam founded Chakkilam Infotech • Drives client acquisition strategies, provides oversight
Slide 16: Cigniti Growth Strategy
Cigniti Growth Strategy • Focus on High spending domains with more focus on Fortune 500 and other Large accounts • Build strong differentiation through investment in proprietary AI-powered Testing Platform such as BlueSwan; invest in Domain Competency Groups; and build a breed of high quality career
Slide 17: On path to a long term Sustainable Growth
On path to a long term Sustainable Growth Owing to Customer Portfolio overhaul, the low and negative margin Strong growth of 2016 Accounts into Multi-Million Dollar Accounts customers were removed and high margin ones were on-boarded compensating for revenues lost after removal of low margin custome
Slide 18: Diversified Client base Leading to Better Stability
Diversified Client base Leading to Better Stability Revenue by Verticals 2017-18 Revenue by Verticals FY19Q2 Independent Software Vendors (ISVs) 20% ISV 23% 19% Travel & Hospitality 18% Travel & Transport BFSI BFSI 3% Healthcare 4% 16% HCLS 12% Retail & eCommerce 9% 22% Retail & eCommerce Energy & U
Slide 19: Marquee Clients Across Industry Verticals
Marquee Clients Across Industry Verticals In high-spend Industry verticals, Cigniti has marquee clients. Diversified revenue profile across industry verticals… Verticals Key Clients BFSI 15% 26% Energy 3% &Utilities 9% 3% H1FY19 Healthcare & Life Sciences 17% 27% Travel & Hospitality BFSI Energy and
Slide 20: Revenue growth driven by Geographic diversification in targeted verticals
Revenue growth driven by Geographic diversification in targeted verticals • Strategic risk management decision to diversify geographical revenues by growing Europe and RoW • Impressive account wins in Large UK accounts in BFSI, Transportation and Life Sciences verticals Revenue by Geography (INR Mn)
Slide 21: BlueSwan: Cigniti's Proprietary IP driven solutions for Digital Enterprises
BlueSwan: Cigniti’s Proprietary IP driven solutions for Digital Enterprises BlueSwan: Delivering Quality@Speed Quality Engineering Platform and Dashboard with Verita Predict Capabilities 30+ Digital Enterprise Test Automation Accelerator for desktop, web, mobile, Enterprises Velocita clients use COT
Slide 22: IP, Patents and Trademarks – A Key Differentiator
IP, Patents and Trademarks – A Key Differentiator • Cigniti is differentiated through strong focus on IP creation, R&D & focus on Next-Gen Automation platform • 30+ Global Enterprises use BlueSwan to accelerate their Digital transformation journeys. • Cigniti has built 6 World class Quality Engineer
Slide 23: Cigniti Share Price
Cigniti’s Restructuring in 2016- 2016-17 getting acknowledged Cigniti 3 Years Share Price Trend Cigniti Share Price • CMP: 441 • Mcap: INR 12,113 Mn • Mcap: USD 168 Mn Source: Market Estimates, NSE Data www.cigniti.com | Unsolicited Distribution is Restricted. Copyright © 2018 - 19, Cigniti Technolo
Slide 24: Strategic Actions taken by Cigniti for Sustained Value creation
Strategic Actions taken by Cigniti for Sustained Value creation Steps taken to improved ROIC through efficient operations and steeper growth • High margin services and customers • Improved operational efficiency • Writing off non-performing assets • Expansion of Accounts (Land & Expand) Reducing Cos
Slide 25: Cigniti's Financial Performance – Strong Turnaround
Cigniti’s Financial Performance – Strong Turnaround 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 • Cigniti underwent a major overhaul in strategy in FY2017 Income • The positive effects of the overhaul are reflected in the Revenue from operations 1,651 1,702 1,566 1,273 1,68
Slide 26: Cigniti's Income statement
Cigniti’s Income statement 2016 2017 2018 Q1 2019 Q2 2019 Income Revenue from operations 5,948 6,193 6,933 1,947 2,050 Revenue from operations ($M) 90 94 108 29.28 29.53 • Better quality Expenses revenues from 2017 Employee benefit expense 3,937 4,513 4,701 1,184 1,164 onwards Other expenses 1,032 1
Slide 27: Cigniti's Balance Sheet
Cigniti’s Balance Sheet 2016 2017 2018 H1FY19 2016 2017 2018 H1FY19 Property Plant & equipment 285 88 69 146 Equity & Liabilities Goodwill 549 549 549 549 Equity share capital 255 265 272 275 Capital WIP 643 - - - Other equity 3,126 -673 -204 586 Other intangible assets 581 - - - Sub total 3,381 -40
Slide 28: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Cigniti Technologies Ltd. (also referred to as ‘Company’). By attending a meeting where this presentation is made, or by readi
Slide 29: Cigniti Technologies Ltd. offices
India Hyderabad Cigniti Technologies Ltd. 6th Floor, ORION Block, "The V" (Ascendas) Plot #17 Software Units Layout Madhapur, Hyderabad-500081 US US Cigniti Technologies Inc. 630 Freedom Business Center, 3rd 433 E Las Colinas Blvd, Floor, King of Prussia, PA 19406 Suite 1300, Irving, TX 75039 UK Cig
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