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Newgen Software Technologies Ltd.Q4 FY’20 and FY’20 Investor UpdateConnecting Enterprises. Transforming Experiences.COPYRIGHT 2020, NEWGEN SOFTWAREMay2020
Reinvent business with Newgen’s transformative platformsLow-code software products company providing enterprise-wide, mission criticalsolutions helping organisations drive digital transformation and competitivedifferentiationDigitiseProcess & reate smarter processes, empowerknowledge workers and buildresponsive businessCommunicateCreate, personalize and deliverinteractive communication to enhancecustomer experience2COPYRIGHT 2020, NEWGEN SOFTWARE
Newgen at a Glance (FY’20)Toronto, CA 560 ActiveCustomers(1)44 PatentFilings69CountriesStrong IndustryRecognitionMississauga, ONTampa, FLMcLean, VARs 6,608 MnFY’20 Revenues(1)(2)56% AnnuityRevenuesCOPYRIGHT 2020, NEWGEN SOFTWAREInvoiced in the last 12 monthsAll figures as of March 2020London UKLondon,NewDelhi, INNewPhilippineDelhiMu Kolk smbai ataDubai AEDubai,Global OfficesNew SouthWales, AUSingapore, SGHQ3India Offices include Mumbai, Chennai, Bengaluru, Kolkata, Hyderabad, Noida, Gurugram, New Delhi
Resilient Business Model in place56%Large annuity revenues streamsAnnuity Revenues18%26%Sale of ProductsSale of ServicesFY20 Revenue Split by Segment57%9%Mission critical solutions across key verticalsBanking & FSHealth8%BPO8%6%Govt. Insurance12%OthersFY20 Revenue Split by Segment30%Diversification across geographies31%IndiaEMEA28%USAFY20 Revenue Split by Geography11%APAC
Strong Industry RecognitionGartnerECMA Challenger in Magic Quadrant for Content Services Platform,30 October 2019, Michael Woodbridge et al“A Strong Performer” in ECM Content Platforms Wave Report, Q3 2019A Niche Player in Magic Quadrant for Intelligent BusinessProcess Management Suites, 30 January 2019, Rob Dunie et al“Strong Performer” in the Forrester WaveTM: DigitalProcess Automation For Wide Deployments, Q1 2019A Challenger in Magic Quadrant for BPM-Platform-BasedCase Management Frameworks,,24 October 2016, Rob Dunie, Janelle B. Hill*“Leader” in the Forrester WaveTM: Cloud-BasedDynamic Case Management (DCM), Q1 2018BPMCCMA Niche Player in Magic Quadrant forCustomer Communications Management Software,26 January 2017, Karen M. Shegda, Pete Basiliere*“Strong Performer” in the Forrester WaveTM:Customer Communications Management, Q2 2016Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions ofGartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This research is provided for historical perspective; portions may not reflect current conditions. The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet withexposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
Stable Annuity Revenues Streams with increasing cloud deployments Annuity Revenue Streams constantly increasing from 41% of revenues in FY’16 to 56% in FY’20 Increasing acceptability of cloud deployments across geographiesAnnuity Revenues (INRm)Cloud/SaaS Revenues (INRm)4,0004503,6863,5003,0002,50027%3,0305 year CAGRgrowth3002,209383125%3505 year 0001005005015-28-FY16FY17FY18FY19COPYRIGHT 2020, NEWGEN SOFTWAREFY'20FY16FY17FY'18FY'19FY'206
Expanding revenues from existing customersExisting Customer Business (INRm)5,6005,400ExpandingExistingCustomer Business5,4555,200Client Concentration (%)5,0004,8004,776Top 5,14%Top 10,23%4,600Top 20,34%4,400FY19FY'20Actively helping long term customers in continuing operations seamlessly despite the disruptions
Focused on Driving Innovation Through R&DOur complete development network and supporting infrastructure operates on a central system and follows asynchronized cloud-based continuity strategyNew Features28 years of product DNAIntelligentContent ServicesSkilled R&D team with deepproduct domain expertiseUnified platform with modulardeploymentIntuitive applications and scalableperformanceLow Code PlatformSaaS deliveryCOPYRIGHT 2020, NEWGEN SOFTWARE(1)44 Patent Filings, of which 15 patents are granted in India & the USA and 19 patent applications are under processingLow-CodeApplication Dev Platform44 patents filings,15 Granted(1)CollaborativeWork ManagementDigital SensingBlockChainRPA8
Transforming project delivery and sales and marketing methodsCloud Deployments ensuring remote implementationsLow Code Platforms ensures reduction in delivery timelinesLeveraging digital connectivity while ensuring data security to successfully execute each stage ofproject deployments and sales demos and discussionsLocal teams across mature marketsFocus on strengthening the SI partner ecosystem globallyCOPYRIGHT 2020, NEWGEN SOFTWARE9
Experienced Senior Management Team with Distinct Operating CultureManagement Organisation StructureDiwakar Nigam Founder-ledmanagement teamwith extensiveexperienceT.S. VaradarajanChairman and Managing Director Co-founded Newgen in 1992 35 years of experience in development of Co-founded Newgen in 1992 35 years of experience in development ofsoftware productssoftware products Masters in Computer Science from IIT MadrasTechnology/ ProductsSupported by astrong second linemanagement Masters in Computer Science from IIT MadrasBusiness Mgmt/DeliverySales & MarketingVirender JeetHemant MakhijaTarun NandwaniSr. VP –Sales & Marketing/ Product Been with Newgen since 1992 Manages overall strategic and35operationalresponsibility forentire portfolio of offeringsVP – Marketing 30 years of extensiveexperience with organizationslike Plex Systems, Yahoo, Sage,and SystronicsSr. VP – Business Management Been with Newgen since 1993 Responsible for driving businessfrom existing customers andCRMAshok KapoorManojit MajumdarFostered culture ofinnovation,entrepreneurshipand teamworkVP – Channels With Newgen since 1998 Managed mid-marketchannels at IBM India Rejoined Newgen in 201110 out of 20 AVPhave been with thecompany for 15 yearsVP – Sales With Newgen since 2011 Experience of 20 yearsAustralia SalesR. Krishna KumarVP – Sales Been with Newgen since2013 Experience of 21 yearsVP – Software Development Been with Newgen since2015 Experience of 26 yearsWhole Time Director Been with Newgen since 1997 More than 10 years of experience in thefield of journalismCorporateDr. S.J. RajSr. VP – HRD Been with Newgen since1992 Experience of 31 yearsArun Kumar GuptaChief Financial Officer Been with Newgen since 2010 Oversees financial reporting &planning, treasury, taxation, IRand compliancesDushyant KumarVivek Bhatnagar Priyadarshini NigamWhole Time DirectorSunil PanditaVP – Sales 22 years of extensiveexperience with organisationslike Samsung Electronics,Adobe, IBM, Autodesk and HCLVP – Software Development Been with Newgen since 1999 Driving organization widescaling of competence ofDelivery and all customer facinggroupsShanmugam NagappanVP – Software Development Responsible for managingdelivery functions on projectsexecuted from SDC, ChennaiUS SalesAnand RamanEVP & COO - Newgen SoftwareInc. Been with Newgen since 1994 Deep experience in productdevelopment life-cycleIndependent Board of DirectorsSubramaniam Ramnath IyerKaushik DuttaSaurabh SrivastavaPadmaja KrishnanNon Executive, Independent Director26 years of experience in Finance & AccountingNon Executive, Independent Director22 years of experience in Finance & AccountingNon Executive, Independent DirectorSeveral years of experience in Information technologyNon Executive, Independent Director30 years of experience in Technology space
5 Year Financial OverviewTotal Revenue (INRm)7000Growth impacted due to businessdeferments (Covid19)PAT (INRm) and PAT Margins6,608Profit impacted due tobusiness deferments 10002000FY16FY17FY189M FY19FY’199M FY'20FY’20COPYRIGHT 2016, NEWGEN SOFTWARE INC.FY’16 financials are Restated Consolidated Financials as per Indian GAAP Accounting StandardsFY’17-20 financials are Consolidated Financials as per Ind AS Accounting Standards-FY16FY17FY'18FY'19FY'2011
Covid19 Update12
Covid19 Update Seamless transition to remote working environment:- Company implemented its business continuity plan, executed just-in-time requisition and provision of computers, enabled VPNsand internet connectivity, and provided team collaboration tools.- Today, 90% of the workforce across locations is efficiently working remotely with data security and compliance.- Newgen is ensuring seamless customer services by leveraging digital connectivity to successfully execute each stage of projectdeployments (from requirements gathering, to project planning, to implementation and production support) as well as sales andmarketing efforts. Strategizing new offerings:- Newgen is developing and deploying new solutions under the Paycheck Protection Program to help financial institutions quicklyprocess and forgive loans under the various monetary and fiscal interventions introduced by governments globally to stabilizeeconomic conditions- The Company is prioritizing SaaS based delivery models with all geographies increasingly moving in that direction. Financial Assessment & Control- Continuous assessment of impact on business/ financial parameters for better control- Working on optimising the current cost structure and cash flow across the board while continuing to invest in strengthening digitalcapabilitiesCompany is focused on health and safety of employees while fully supporting our clients worldwideCOPYRIGHT 2020, NEWGEN SOFTWARE13
Customer Case Study: Banking - A New York - Based Bank Ensures BusinessContinuity During COVID-19 Using Newgen's Commercial Lending SolutionOne of the largest banks in the United States with around 240 branch offices had implemented Newgen'scommercial loan origination solution (CLOS) to streamline the overall lending process. Due to the outbreak of theCOVID-19 epidemic, the bank needed to immediately enable employees to operate remotely without impactingthe speed and quality of services.Using Newgen's CLOS application, the bank digitized its lending cycle and automated its operations, enabling aquick and hassle-free shift to the remote working environment.COPYRIGHT 2020, NEWGEN SOFTWARE14
Q4 FY’20 Results15
Financial Summary (Consolidated)EPS Margin(INR) (%)ProfitsRevenue(INR(INR Mn)Mn)ParticularsMetricsRevenue from operationsOther Income *Total IncomeEBITDA (adjusted forother income)Profit after taxEBITDA (adjusted forother income)Profit after oYQoQQ3FY20FY20Growth (Unaudited) Growth 9.18 -35%9.02 -33%FY19(Unaudited)-30%-29%FY’20 Revenues at Rs 6,608 Mn, up 6.5% YoY. The business has heavy dependence on the fourth quarter which was impacted by newbusiness deferments due to lockdowns and restrictions imposed globally. During the year, Newgen witnessed growth across the boardin its key geographies. India, however, continued to face challenges on account of economic sluggishness in NBFC and Banking as wellas banking consolidation. Profit after tax down at Rs 727 Mn on account of slower growth in top-line and continued investments in R&D & Sales and Marketingefforts.COPYRIGHT 2020, NEWGEN SOFTWARE16
New Logo Wins – FY’2071New Logo Winsduring FY’20Major deals during Q4 include: Large project with a leading Pan-African financial institution, offering bankingservices to more than 18mn customers, across 1,000 business offices andcustomer touch points in 20 African countries License Agreement with a key government ministry in India 4 cloud agreements in the US including a deal with a leading provider ofproperty casualty insurance for auto, home and business21 Mid-sized project with one of the largest Bahamian banks with 1.7bn inassetsNew Logo Winsduring Q4 FY’20COPYRIGHT 2020, NEWGEN SOFTWARE17
Business HighlightsNo. of Deals above Rs 5 croresBusiness Highlights – Q4 FY’204035303028 Received Patent for Mark Detection System and Methodologyfrom US Patent Office252015 Secured Patent for a System and Method for Automatic QualityAssessment of Digital Documents105-FY'19FY'20Cloud/ SaaS RevenuesINR Mn60%400382.7 Received approval for setting up a unit in the IT/ITES SEZ in Noida,Uttar Pradesh from Development Commissioner of Noida SpecialEconomic Zone350300250 Company’s new version of the product iBPS has low codecapabilities and cloud deployments which are very relevant today.Newgen also launched an enhanced version of CustomerCommunication Management suite that enables users to easilycreate, design, and manage HTML email GHT 2020, NEWGEN SOFTWARE
Key Highlights – Appointment of Non-Executive DirectorAppointment of Ms Padmaja Krishnan as Non- Executive IndependentDirector of the company w.e.f. March 24, 2020Padmaja Krishnan is an independent Director of our Company. She has industry expertisespanning over thirty years as a global business leader and innovator in the Technologyspace. She has delivered business growth agenda, created and led SBUs for Companies.She has managed multiple business portfolios for organizations like CSC, Sopra-Steria,Dell-Perot Systems, TCS and reputed entrepreneurial ventures. She is also on the Board ofEmerging Edges Consultants Pvt. Ltd. since 2010. She is a certified coach at MarshallGoldsmith Stakeholder Centered Coaching, certified Tick IT Lead Assessor from UK,Certified Corporate Director by Institute of Directors and has acted as a Guest Faculty atFMS, BIMTECH and NIFM. She did her Bachelors and Masters in Physics from University OfDelhi and M.Phil. in Computer & Systems Sciences from JNU, New DelhiCOPYRIGHT 2020, NEWGEN SOFTWARE19
Debtors DaysDebtor Days (Based on Gross Debtors)(INRm)Debtor Days (Based on Net Debtors)(INRm)172 days179 days149days149days3,2432,6942,9202,527Mar 31, 2019Debtor DaysMar 31, 2020Gross Trade Receivables (INR Mn)COPYRIGHT 2020, NEWGEN SOFTWAREMar 31, 2019Debtor DaysMar 31, 2020Net Trade Receivables (INR Mn)20
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Thank youwww.newgensoft.comFor any Investor Queries please contact:Deepti Mehra ChughHead – Investor RelationsPhone: 91 11- 46 533 200Mail : deepti.chugh@newgen.co.inDisclaimerThis presentation may contain certain forward looking statementsconcerning Newgen Software Technologies’ future businessprospects and business profitability, which are subject to anumber of risks and uncertainties and the actual results couldmaterially differ from those in such forward looking statements.The risks and uncertainties relating to these statements include,but are not limited to, risks and uncertainties regardingfluctuations in earnings, our ability to manage growth and newbusiness opportunities, competition (both domestic andinternational), economic growth in India and the target countriesfor business, ability to attract and retain highly skilledprofessionals, time and cost over runs on projects, our ability tomanage our international operations, government policies,interest and other fiscal costs generally prevailing in the economyand general economic conditions affecting the industry. Pastperformance may not be indicative of future performance.The company does not undertake to make any announcement incase any of these forward looking statements become materiallyincorrect in future or update any forward looking statementsmade from time to time by or on behalf of the company.
P&L Statement(All amounts in INRm, except per share data and unlessotherwise stated)RevenueRevenue from operationsOther incomeTotal revenueQ4 FY 2020Q4 FY 2019Q3 FY 2020FY 2020FY .82,879.985.459.82,049.35,074.4Profit before tax523.6787.2326.9947.41,335.8Tax expensesCurrent taxDeferred tax (credit)/chargeProfit after tax for the 10.5115.0114.74ExpensesEmployee benefitsFinance costsDepreciation and amortisationOther expensesTotal expensesOther comprehensive income/(loss) for the year,net of income taxTotal comprehensive income for the yearEarnings per equity share (face value of Rs. 10per share)Basic earning per shareDiluted earning per shareCOPYRIGHT 2020, NEWGEN SOFTWARE23
Balance Sheet(All amounts in INRm, except per share data andunless otherwise stated)AssetsNon-current assetsProperty, plant and equipmentCapital work-in-progressRight-of-use assetsIntangible assetsFinancial assetsLoansOther financial assetsDeferred tax assetsIncome tax assetsOther non-current assets30-Mar-19Current assetsFinancial assetsInvestmentsTrade receivablesCash and cash equivalentsOther bank balancesLoansOther financial assetsOther current assetsTotalCOPYRIGHT 2020, NEWGEN .3832.1Equity & LiabilitiesEquityShare capitalOther rrent liabilitiesLease liabilities296.9102.9464.6229.6Deferred Tax 0412.01,009.0130.650.18,710.8Current liabilitiesFinancial liabilitiesLease liabilitiesBorrowingsTrade payablesDerivative liabilitiesOther financial liabilitiesDeferred IncomeOther current liabilitiesShort-term provisionsTotal1.724
COPYRIGHT 2020, NEWGEN SOFTWARE Financial Summary (Consolidated) FY’20 Revenues at Rs 6,608 Mn, up 6.5% YoY. The business has heavy dependence on the fourth quarter which was impacted by new business deferments due to lockdowns and restrictions imposed globally. During the year, Newgen
