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Newgen Software Technologies LimitedChairman’s MessageDear Shareholders,The year 2019-20 has presentedunprecedented challenges to theworld, with the global economicdownturn followed by the COVID-19pandemic, but it has also revealed— or, rather, reinforced — whatthe pillars of future success wouldbe. The year has shown us thathighly innovative digital solutionscan empower all the enterprisesregardless of their size and natureof the business, and helpthem become more productiveeven with less resources.Newgen’s digital automation platform has supportedbusiness applications necessary to achieveorganisational excellence, efficiency, flexibility, andbusiness continuity. Today, in all our five core verticals,we are helping our clients, many of whom are in the‘essential services’ category, to continue uninterruptedfunctioning while servicing their customers withspeed and security.Our well-defined business continuity plan statesdifferent types of potential disruptions and outlinesthe respective response mechanisms. We haveenabled business continuity for our customersthrough past health crises, including the Ebolaoutbreak of 2014-2016 in West Africa, and our abilityto address critical situations at the first sign of troublehas only become stronger with time.Internally, too, we took control of the situation with ourforesight, quick decision-making, business continuityprocesses and robust IT infrastructure and equippedour global employees for the digitalised work-fromhome (WFH) regime. Our cloud-based solutions madeproject development and delivery seamless despite ourteam working remotely.We are developing products and solutions that arelow-code, flexible, and cloud-ready, thus enablingour client organisations to resolve complex businessproblems, and empowering them to reinvent theirworkplaces. Our aim is to always be more effective,delivering greater results with fewer resources and inshorter time. Alongside helping our clients achievedigital transformation, we are transforming ourselves,too. We have crafted our strategic approach to driveagility, efficiency, responsiveness and customercentricity in organisations by integrating the variousfacets of an enterprise – people, processes, systemsand things.A time of transformationKeeping in mind our core value of ‘Newgen as a family’,we have prioritised the well-being of our employeesand their families while ensuring zero lag in customeroperations. Our Covid-19 action team has beenconstantly assessing the situation and respondingpromptly, ensuring seamless transition to remoteworking and giving our WFH workforce everything theyneed to maintain the highest levels of performance andalso to keep their faith in the Company’s support. Today,our entire workforce is enabled to work remotely andis fully functional. In these difficult times, we have seenextraordinary dedication in our employees, who havealways had the attitude of customer first.06There are many things to be learnt from this crisis; weare delving into those learnings in order to increaseresilience for ourselves and our clients.Business performanceFor FY 2019-20, we closed the year with revenuesof 661 crores, up 6.5% compared to the previousyear. Newgen business witnessed growth across

Chairman’s MessageProfits and margins were impacted during the year,on account of slower growth in the top-line andcontinued investments in research & developmentand sales & marketing efforts. The Companyreported an EBITDA of 105 crores and Profit afterTax of 73 crores.Strength in innovationDuring the year, Newgen’s solutions have receivedvarious analyst recognitions from leading researchfirms.We have a strong team of 400 employees focussedon research and product development initiatives.During the year, Newgen was granted 4 patents,taking the total to 15 patent grants as of March2020. The endeavour is to work on enhancing ourproduct portfolio to meet the evolving industry needs,changes in customer requirements, and competitiveproducts and features, thereby meeting customers’expectations while reducing their total cost ofownership.OutlookWhile in the short term, the macro-economic andpublic health challenges are expected to delay newdeal signings and lengthen the sales cycles, we believethat today, the relevance and requirement of ourdigital transformation solutions for enterprises is morethan ever. These solutions are a natural fit for ourstrategy of remote implementation.We are thus reinventing our ways of working andrestructuring our teams. A combination of digitalconnectivity and data security helps us to successfullyexecute and expedite project deployments andsales discussions. We are building local teams acrossmature markets and are focussing on strengtheningour worldwide network of global System Integratorpartners. Going forward, we are prioritising SaaSbased delivery models.We are looking at increasing operational efficiencyand optimising costs for cash preservation andmaintaining healthy liquidity during this phase.I strongly believe that Newgen has a resilient businessmodel, with large recurring business from existingcustomers; and diversification across verticals, clients,and geographies. We are carefully monitoring thesituation and taking all necessary precautions foremployees, customers, partners, and vendors. TheCompany would be implementing a phased and safereturn-to-work plan. Taking resolute steps, we areadapting to the changing dynamics.In conclusion, allow me to thank our team, ourcustomers, and all stakeholders. Their support givesus strength in our journey. With the stakeholderskeeping their faith in Newgen, we shall continue towrite newer chapters of success.With Best Regards,Diwakar NigamOur reach is being further expanded globally throughour direct and indirect sales networks. Newgen isfocussing on strengthening its System Integratorecosystem. SaaS sales through System Integrators in07FINANCIAL STATEMENTSOur annuity revenues continued to remain strong —they constituted 56% of the revenues and witnesseda growth of 22% YoY. Of the annuity revenues, SaaS(software as a service) revenues grew rapidly at 60%YoY. Most geographies are increasingly showingacceptance of SaaS solutions, which are easy todeploy remotely and should become a key elementfor us in the ‘new normal’.We have recently received approval for setting up aunit in the IT/ITES SEZ in Noida, Uttar Pradesh, fromthe Development Commissioner of Noida SpecialEconomic Zone.STATUTORY REPORTSOverall, we did 71 new logo acquisitions duringthe year, bringing our numbers to about 560active customers across 69 countries. Our digitalsolutions are of mission-critical nature for our longterm customers, serving as the backbone of theiroperations. Newgen’s policy of doing business onthe basis of trust and collaboration with clients hasearned us great goodwill during the coronavirusoutbreak. We have been receiving appreciation fromcustomers across the board for our support to themduring this testing and demanding phase.Fortune 2000 customers in the US is thriving, and weare seeing good traction in this.COMPANY OVERVIEWmost geographies — the EMEA region (Europe, theMiddle East, and Africa) grew at 17%; APAC (AsiaPacific) at 10%; and Americas region at 5%. India,however, experienced slow growth because of thecrisis involving NBFCs, consolidation of banks, and aliquidity crunch. The last quarter of the financial yearwas further impacted by new business defermentsdue to the movement restrictions imposed globally onaccount of the pandemic.Annual Report 2019-20

Newgen Software Technologies LimitedEmpowerment through Research400 R&D Employees44Patent Filings(with 15 PatentsGranted)As the global economy evolves, businesses change,and customer expectations rise, we have stayed at theforefront of innovation, with continuous research anddevelopment in order to pioneer specialised productlines. We thus strengthen our leadership position inbuilding cutting-edge, industry-specific applications,fortified by comprehensive security features, thatare instrumental in driving the worldwide digitaltransformation. Our products enable our customers tomanage increasingly complex and diverse tasks in lesstime and with greater ease.Our differentiated offerings are applications builton digital automation platforms with low-codecapability. Our complete development network andsupporting infrastructure operates on a central systemand follows a synchronised cloud-based continuitystrategy.We are aggressively pursuing cloud solutions acrossthe globe, as these are easy to deploy remotely andare gaining international acceptance. Cloud revenueswitnessed 60% growth during the year and comprised6% of our total revenues.As of 31st March, 2020, the Company has to itscredit 44 Patent Filings, of which 15 patents havebeen granted in India and the US, and 16 patentapplications are under processing.New ionDev lockChainRPAKEY PATENTS ISSUEDGranted a patent entitled ‘Automated Quality andUsability Assessment of Scanned Documents’. Theinvention enables organisations to automaticallyassess the quality of scanned images and makenecessary correctionsGranted a patent by the US Patent Office for theCompany’s ‘Intelligent Check Deposit Machine’,08which helps in optimising the check clearing cyclewhile ensuring security and complianceReceived patent for ‘Mark Detection System andMethodology’ from the US Patent OfficeSecured patent for a ‘System and Methodfor Automatic Quality Assessment of DigitalDocuments’

Annual Report 2019-20COMPANY OVERVIEWDoing More with Sales, Marketing,and Project DeliverySTATUTORY REPORTSFINANCIAL STATEMENTSAt Newgen,we have beenincreasingly focussingon building globalmarket awarenessof our brand andproducts. Our two-wayapproach, which is apart of our marketingstrategy, includesdirect sales and salesthrough channelpartners.Transforming its sales and marketing methodologies,the Company has been effectively using digitalmarketing tools and successfully providing virtualsales demos and discussions while receiving fullsupport of local sales teams across key markets.Our SI partner ecosystem has been strengthenedglobally. Evolving initiatives related to partnermanagement include workshops, webinars,certif

Positioned as a “Strong Performer” in the Forrester Wave : ECM Content Platforms, Q3 2019. Newgen has achieved the highest score of 4.08 among all vendors in the ‘Current Offering’ category. The report has recognised Newgen as “a good fit for enterprises looking to modernise thei