Newgen Software Technologies Limited — Interim / Quarterly Report 2020

Jul 24, 2019

Newgen Software Technologies Limited CIN: L72200DL I 992PLC049074 A-6, Satsang Vihar Marg, Qutab Institutional Area, New Delhi - 11 O 067 INDIA Tel: (+9 1)- 11 -4077 0100, 2696 3571, 2696 4733, Fax: (+9 1)- 11-2685 6936 Email: corpmktg@newgensoft.com URL: https://newge nsoft.com

Date: 24th July, 2019

To,	To,
BSE Limited	National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,	Exchange Plaza, Plot No. C/1, G Block,
Dalal Street,	Bandra-
Mumbai	Kurla Complex
-	Bandra (E), Mumbai -
400001	400051
NewgenTechnologiesRef.:SoftwareLimited(NEWGEN/INE619B010l 7)Scrip Code -540900	Ref.: Newgen Software Technologies Limited(NEWGEN/INE619B01017)

Sub.: Outcome of Board Meeting held on 24th July, 2019

Dear Sir/ Ma'am,

This is to inform you that the Board of Directors of the Company at its meeting held today i.e. Wednesday, 24th July, 2019 which commenced at 12:00 Noon and concluded at 1:40 P.M., has, inter-alia, considered and approved the Unaudited Standalone and Consolidated Financial Results of the Company for the 1st Quarter ended 30th June, 2019.

Accordingly, pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the following:

• 1. Press Release on aforesaid financials results
• 1. Aforesaid financial results along with limited review reports.
• 1. Investor presentation

This is for your kind information and record.

Thanking you. For Newgen Software Technologies Limited

~ .:Aman Mourya

Company Secretary & Compliance Officer

Encl.: ala

PRESS RELEASE

Newgen Software reports 23% YoY growth in Revenues in Q1 FY'20

New Delhi, India – 24 July 2019

The management of Newgen Software Technologies Ltd. announced results for the Quarter and Financial Year ended 30 June 2019 at its Board Meeting held on 24 July 2019.

Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – "The fiscal year began on a positive note with revenue growth of 23% YoY and improvement in our operating profits. We continue to invest in deepening our product capabilities, talent development and new market expansion. We opened up our Australian subsidiary during the quarter and are pursuing opportunities in that market.

License revenues witnessed a growth of 90% YoY as we closed a few interesting new logos in the enterprise, banking and financial services and insurance space. "

YoY

Revenues up 23% 12 new logo wins EBIDTA* up to Rs 7.7 crores compared to Rs 0.6 cr in Q1 FY'19

Strong APAC & USA market growth; SaaS revenues up 73%

*adjusted for Other Income

Key Financial Highlights (Q1 FY'20) – [Y-o-Y Comparison]

• Revenue from operations (Consolidated) was up by 23% YoY to reach Rs 131.0 crores as compared to Rs 106.5 crores in Q1 FY'19.
  • o Revenue from Sale of Products/ License were at Rs 24.2 crores
  • o Annuity Revenue streams (ATS/AMC, Support and Cloud/SaaS) were at Rs 78.4 crores. Cloud/SaaS continues to be our fastest growing revenue component.
  • o Implementation & Digitization revenues were at Rs 28.3 crores
• EBITDA* was at Rs 7.7 crores compared to Rs 0.6 crores in Q1 FY'19 partly due to implementation of Lease Accounting Standard - Ind AS 116 (Rs 3.9 crores).
• Profit after tax is Rs 3.1 crores compared to Rs 3.9 crores in Q1 FY'19 due to significant decrease in foreign exchange gains, included in Other Income which changed to Rs 3.0 crores in Q1 FY'20 from Rs 7.8 crores in Q1 FY'19.

Key Business Highlights (Q1 FY'20)

• Business growth across key markets especially APAC and USA regions which witnessed a YoY growth of 65% and 24% respectively.
• Prestigious customer wins: 12 new customer additions in Q1 FY'20 including:
  • o License Agreement with a global leader in beverage alcohol
  • o Cloud deal with a US Company in legacy annuity business
  • o License Agreement with a Filipino based stock life insurance company
  • o Saudi Arabia conglomerate with interests in petrochemicals, chemicals, plastics, and metals manufacturing, industrial services and environmental technologies
  • o Union Bank and Trust (UBT) based in USA is implementing Newgen BPM platform for enterprise-wide automation of its banking processes. UBT is replacing its numerous disparate systems and automating manual processes in favor of a single platform that can be utilized across all areas resulting in enhanced operational efficiencies and improved customer interactions.
• Focus on innovation: Granted a patent in July 2019 entitled "Automated Quality and Usability Assessment of Scanned Documents". The invention enables organizations to automatically assess the quality of scanned images and make necessary corrections.
• Key Awards:
  • o Silver Stevie winner for 'The Asia Pacific Stevie Awards 2019' under the category – Innovative Use of Technology in Customer Service in Financial Services Industries
  • o Bronze Stevie winner for 'The Asia Pacific Stevie Awards 2019' under the category – Innovative Use of Technology in Customer Service in Financial Services Industries
  • o Union Bank Nigeria and Newgen Software have been awarded the Best Branch Digitisation Initiative at The Asian Banker West Africa Awards Programme 2019
  • o Mashreq Bank, one of the leading financial institutions in the UAE, and Newgen Software were awarded the Best Process Automation Initiative in the Middle East at The Asian Banker Middle East and Africa Awards Programme 2019 (March 2019)
  • o National Bank of Ras Al Khaimah and Newgen Software were announced the winners of The Asian Banker Middle East and Africa Awards Programme 2019 for the Best Branch Digitisation Initiative in the Middle East (March 2019)
• Cloud/ Saas business model strengthening annuity revenues: In Q1 FY'20, SaaS revenues were at Rs 8.4 crores, up by 73% YoY.
• About Newgen Improved positioning through global alliance: Compliance Systems based in Michigan and Newgen entered into a strategic alliance that will provide their joint customers with best-in-class solutions to help them drive digital transformation while remaining fully compliant. Under the agreement, Newgen and Compliance Systems will work together to develop an integrated solution that enables compliance in the lending space.

About Newgen

Connecting Enterprises. Transforming Experiences.

Newgen Software Technologies Limited (listed In India on National Stock Exchange [Script code: NEWGEN] and BSE Ltd. [Script code: 540900]), is a provider of Business Process Management, Enterprise Content Management and Customer Communication Management platforms with large, mission-critical solutions deployed at world's leading banks, Governments, BPO's & IT Companies, Insurance firms and Healthcare Organizations.

Disclaimer

This press release may contain certain forward looking statements concerning Newgen Software Technologies' future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially 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 regarding fluctuations in earnings, our ability to manage growth and new business opportunities, competition (both domestic and international), economic growth in India and the target countries for business, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to manage our international operations, government policies, interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

Media Contact:	Investor Contact:
Asif Khan	Deepti Mehra Chugh
asif.khan@newgensoft.com	deepti.chugh@newgen.co.in

B S R & Associates LLP

Chartered Accountants

Building No.1 O. 8th Floor. Tower-8 DLF Cyber City, Phase - II Gurugram - 122 002. India

Telephone: + 91 124 719 1000 Fax· + 91 124 235 8613

To

Board of Directors of Newgen Software Technologies Limited

• 1. We have reviewed the accompanying Statement of unaudited consolidated fmancial results of Newgen Software Technologies Limited ("tJ1e Parent") and its subsidiaries (the Parent and its subsidiaries together refen-ed to as ·'the Group''), for the quarter ended 30 June 2019 (''the Statement"), being submitted by the Parent pursuant to the req uirements of Regulat ion 33 of the SEBI (Listing Obligations and Disclos ure Requirements) Regulations, 2015, as amended ("Listing Regulations').
• 1. This Statement, which is the responsibility of the Parent's management and approved by the Parent's Board of Directors. has been prepared in accordance with the recognition and measmement principles laid down in Indian Accounting Standard 34 "Interim Financial Raporring· ("'Ind AS 34"'), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in fndia and in compliance with Regulation 33 of the Listing Regu lations. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagemen ts (SRE) 24 10"Revie,r of Interim Financial I, formation Pe,formed by tlze Independent Auditor of the Entity ", issued by the lnstihlte of Chartered Accountants of Lndia. A rev iew of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and otber review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain a surance that we would become aware of all significant matters that might be identified i.n an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular is ued by SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

• 1. The Statement includes the results of the following entities: Parent Entity
  • a) Newgen Software Technologies Limjted

Subsidiaries

• a) Newgen Software Inc.
• b) Newgen Computer Technologies Limited
• c) Newgen Software Technologies PTE Ltd.
• d) Newgen Software Technologies UK Ltd.
• e) Newgen Software Technologies Canada Ltd.
• f) Newgen Software Technologies PTY Ltd.

B S R & Associat es LLP

• 1. Attention is drawn to the fact that the figures for the 3 months ended 3 1 March 2019 as reported in these fi nancia l results are the balancing figures between audited figu res in respect of t he full previous financial year and the publi hed year to date figures up to tbe third quarter of the previous financial year. The figures up to the end of the third quarter of previous fin ancial year had only been reviewed and not subjected to audit.
• 1. Based on our review conducted and procedures performed as stated i.n paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Tndian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The Statement includes the interim financial results of 5 subsidiaries which have not been reviewed, whose interim financial statements reflect total assets of Rs. 2,346.91 lak.hs as at 30 Ju ne 2019 and total revenue of Rs. 882.09 lakhs and total net profit after tax of Rs. 57.35 lakhs for the quarter ended 30 June 2019, as considered in the Statement. According to the in.formation and explanatious given to us by the manngernent, these interim :fu1ancial results are not material to the Group.

Our conclusion on the Statement is not modified in respect of the above matter.

For B S R & Associates LLP Chartered Accountants Firm's Registration No.: 116231W / W-100024

Ra~ kesh Dewan

Place: Gurugram Date: 24 July 20 19

Partner Membership No. 092212 UDIN: 19092212AAAADR6331

B S R & Associates LLP

Chartered A ccountant s

Building No.10, 8th Floor. Tower-8 DLF Cyber City, Phase - II Gurugram - 122 002, India

Telephone: + 91 124 719 1000 Fax. + 91 124 235 8613

To

Board of Directors of Newgen Software Technologies Limited

• I. We have reviewed the accompanyiDg Statement of wiaudited standalone financial results of Newgen Software Technologies Limited for tbe quarter ended 30 June 2019 ("the Statement'').
• 1. This Statement. which is tbe responsibility of tbe Company's management and approved by the Board of Di.rectors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" (Ind AS 34"), prescribed under Section 133 of tl1e Companies Act, 2013, and other accounting principles generally accepted in lndia and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to issue a report Oil the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Re1·iew of interim Fi11a11cial information Performed by the Jndependem Audiror of rhe Entiry" i ued by the Institute of Chattered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of ma terial mis tatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and tbus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Attention is draw11 to the fact that tl1e figures for the 3 months ended 31 March 2019 as reported in these financial results are the balancing figures bet\veen audited fi gures in respect of the full previous fi nancial year and the published year to date :figmes up to the thi.rd quarter of the previous fmancial year. The figures up to the end of the third quaner of previous fi nancial year had only been reviewed alld not subjected to audit.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material mi sstatemenr.

For B S R & Associates LLP Chartered Accountants Finn's Registration No.: 116231W I W-100024

~ n

Rakes?n;:: Partner Membership No. 092212 UD[N: 19092212AAAADQ7313

Place: Gunigram Date: 24 July 2019

BS R & Assoc,a1es (a par1nersh1p firm with Reg1stra11on No. BA692261 converted ,nto B S R & Assoc,ates LLP (a L,m,ted Liability Pannersh1p wuh LLP Aeg1st1dt,on No. AAB-81821 with effect from October 14, 2013

Registered Office : 5th Floor. Lodha Excelus Apollo Mills Compound N.M . Joshi Marg. M ahalakshm, Mumbai· 400 011

Statemen t of Consoli!laled Financial Re,ulls of Nc,.gen Sofl"~re Tcchnologie Limited For the Qun rlcr cnclc!l 30 June 20 19

					(Amount in Rupees lakhs)
			Quarter ended		Year ended
	Particulars	30 June	31 March	30 June	31 March
		2019(Unaudited)	2019(Audited)	2018(Unaudited)	2019(Audited)
T	Income
	Revenues from operations	13,096.61	20,396.67	10,647.42	62,064.15
	Other income	294.99	252.06	779.73	2,037.97
	Total income	13,391.60	20,648.73	11,427.15	64,102.12
$_{II}$	Expenses
	Employee benefits expense	7,784.37	7,460.70	6,503.23	28,798.73
	Finance costs	182.79	185.73	196.61	853.87
	Depreciation and amortization expense	481.82	149.964,980.55	145.724,088.19	597.9920,493.34
	Other expensesTotal expenses	4,538.7012,987.68	12,776.94	10,933.75	50,743.93
Ш	Profit before share of profit of associate and tax	403.92	7,871.79	493.40	13,358.19
IV	Share of profit of associates
Ш	Profit before tax	403.92	7,871.79	493.40	13,358.19
IV	Tax expense
	Current tax	103.62	1,584.28	145.35	2,993.99
	Deferred tax (credit)/charge	(8.19)	36.29	(38.68)	143.31
	Total tax expense	95.43	1,620.57	106.67	3,137.30
V		308.49	6,251.22	386.73	10,220.89
	Net profit for the period / year
VI	Other comprehensive income for the period / yearItems that will not be reclassified subsequently to profit or
	loss
	Remeasurement of defined benefit liability (asset)	(21.19)	(189.02)	34.75	(84.78)
	Income tax relating to items that will not be reclassified to
	profit or loss	7.41	66.05	(12.02)	29.63
	Net other comprehensive income/ (loss) not to be
	reclassified subsequently to profit or loss	(13.78)	(122.97)	22.73	(55.15)
	Items that will be reclassified subsequently to profit or loss
	Debt instruments through other comprehensive income - net	17.34	45.39	(9.32)	(2.14)
	change in fair value.
	Income tax relating to items that will be reclassified to profit	(6.06)	(15.86)	3.23	0.75
	or loss
	Exchange differences on translation of foreign operations	(9.11)	(15.51)	٠	84.39
	Net other comprehensive income to be reclassified	2.17	14.02	(6.09)	83.00
	subsequently to profit or loss
	Other comprehensive income for the period / year, net ofincome tax	(11.61)	(108.95)	16.64	27.85
VII	Total comprehensive income for the period / year	296.88	6,142.27	403.37	10,248.74
VIII	Profit for the period / year attributable to
	Shareholders of the Company	308.49	6,251.22	386.73	10,220.89
		308.49	6,251.22	386.73	10,220.89
IN	Other comprehensive income for the period / year
	attributable to
	Shareholders of the Company	(11.61)	(108.95)	16.64	27.85
		(11.61)	(108.95)	16.64	27.85
X	Total comprehensive income for the period / yearattributable to
	Shareholders of the Company	296.88	6,142.27	403.37	10,248.74
		296.88	6,142.27	403.37	10,248.74
XI	Paid up Equity Share Capital (face value Rs. 10 each)	6,872.12	6,845.76	6,798.76	6,845.76
XII	Other Equity				42,824.90
XIII	Earnings per equity share of Rs. 10 each
	Basic (in Rs)	0.45	9.18	0.57
	Diluted (in Rs)	0.44	9.02	0.56	15.0114.74

Statement of Stund:1lo11 c Fin•ncial Re,ult of Newgcn Son, ,ire T echnologies Limited For the. Qum·te r ended 30 J un e 2019

					(Amount in Rupees lakhs)
			Quarter ended		Year ended
	Particulars	30 June2019(Unaudited)	31 March2019(Audited)	30 June2018(Unaudited)	31 March2019(Audited)
	I Income	11,356.79	18,798.55	9,111.87	55,204.05
	Revenues from operationsOther income	293.59	242.47	783.72	2,022.86
	Total income	11,650.38	19,041.02	9,895.59	57,226.91
	II ExpensesEmployee benefits expense	6,622.92	6,476.13	5,635.75	24,873.40
	Finance costs	177.72	180.46	196.61	841.12
	Depreciation and amortization expense	436.88	145.31	141.37	580.17
	Other expenses	4,191.63	4,649.65	3,630.91	18,420.33
	Total expenses	11,429.15	11,451.55	9,604.64	44,715.02
	III Profit before tax	221.23	7,589.47	290.95	12,511.89
	IV Tax expense
	Current tax	41.87	1.465.64	124.03	2.792.96
	Deferred tax (credit)/charge	8.12	91.05	(60.02)	135.85
	Total tax expense	49.99	1,556.69	64.01	2,928.81
V	Net profit for the period / year	171.24	6,032.78	226.94	9,583.08
	VI Other comprehensive income/(loss) for the period/year
	Items that will not be reclassified subsequently to profit or loss
	Remeasurement of defined benefit liability (asset)	(21.19)	(189.02)	34.75	(84.78)
	income tax relating to items that will not be reclassified to profit or loss	7.41	66.05	(12.02)	29.63
	Net other comprehensive income/ (loss) not to be reclassified subsequently to profitor loss	(13.78)	(122.97)	22.73	(55.15)
	Items that will be reclassified subsequently to profit or loss
	Debt instruments through other comprehensive income - net change in fair value	17.34	45.39	(9.32)	(2.14)
	Income tax relating to items that will be reclassified to profit or loss	(6.06)	(15.86)	3.23	0.75
	Net other comprehensive income/(loss) to be reclassified subsequently to profit orloss	11.28	29.53	(6.09)	(1.39)
	Other comprehensive income for the period / year, net of income tax	(2.50)	(93.44)	16.64	(56.54)
	VII Total comprehensive income for the period / year	168.74	5,939.34	243.58	9,526.54
	VIII Profit for the period / year attributable to
	Shareholders of the Company	171.24171.24	6,032.786,032.78	226.94226.94	9,583.089,583.08
	$IX$ Other comprehensive income for the period / year attributable to
	Shareholders of the Company	(2.50)	(93.44)	16.64	(56.54)
		(2.50)	(93.44)	16.64	(56.54)
	X Total comprehensive income for the period / year attributable to
	Shareholders of the Company	168.74	5,939.34	243.58	9,526.54
		168.74	5,939.34	243.58	9,526.54
	XI Paid up Equity Share Capital (face value rupees 10 each)	6,872.12	6,845.76	6,798.76	6,845.76
XII.	Other Equity				41,551.66
	XIII Earnings per equity share of Rs. 10 each
	Basic (in Rs)	0.25	8.86	0.33	14.08
	Diluted (in Rs)	0.25	8.70	0.33	13.82

r;;ni cnt Rcpur1i11 g ( onsolida1cd) :

					(Amount in Rupees lakhs)
			Year ended
	Particulars	30 June2019(Unaudited)	31 March2019(Audited)	30 June2018(Unaudited)	31 March2019(Audited)
I	Revenue by geographical segment
	India	4,272.39	6,530.44	3,526.86	20,013.53
	EMEA	3,614.71	6,425.96	3,172.86	17,742.56
	APAC	1,296.35	2,960.11	787.28	6,889.85
	USA	3,913.16	4,480.16	3.160.42	17,418.21
	Australia
	Total	13,096.61	20,396.67	10,647.42	62,064.15
	Less : Inter-segment revenue
	Net revenue of operations from external customers	13,096.61	20,396.67	10,647.42	62,064.15
$_{II}$	Segment profit before tax
	India	145.04	2,402.21	(278.18)	3,389.00
	EMEA	151.87	3,176.10	(1.07)	3,754.31
	APAC	145.02	1,489.78	(195.72)	2,273.50
	USA	307.33	978.30	452.43	3,526.63
	Australia	(1.89)
	Total	747.37	8,046.39	(22.54)	12,943.44
	Add: Other income	294.99	252.06	779.73	2,037.97
	Less: Unallocated expenditure	(638.44)	(426.66)	(263.79)	(1,623.22)
	Profit before tax	403.92	7,871.79	493.40	13,358.19
	Less: Tax expense	95.43	1,620.57	106.67	3,137.30
	Net profit after taxes	308.49	6,251.22	386.73	10,220.89
III	Segment assets
	India	9,909.08	11,904.61	11,011.77	11,904.61
	EMEA	10,374.52	12,156.06	10,554.52	12,156.06
	APAC	2,862.50	4,450.97	3,003.86	4,450.97
	USA	7,484.64	6,596.41	4,990.83	6,596.41
	Australia	240.27
	Total	30,871.01	35,108.05	29,560.98	35,108.05
	Add: Unallocated assets	43,948.39	39,152.37	31,999.34	39,152.37
	Total assets	74,819.40	74,260.42	61,560.32	74,260.42
IV	Segment liabilities
	India	5,259.91	4,571.86	5,826.64	4,571.86
	EMEA	5,195.11	5,336.58	3,183.77	5,336.58
	APAC	1,285.55	1,505.70	1,106.39	1,505.70
	USA	3,994.91	3,331.82	2,500.88	3,331.82
	Australia
	Total	15,735.48	14,745.96	12,617.68	14,745.96
	Add: Unallocated liabilities	9,186.83	9,843.80	7,864.58	9,843.80
	Total Liabilities	24,922.31	24,589.76	20,482.26	24,589.76

Seg1mn1 Rcpurling ( 1Rnd:1lon~):

					(Amount in Rupees lakhs)
			Year ended
	Particulars	30 June2019(Unaudited)	31 March2019(Audited)	30 June2018(Unaudited)	31 March2019(Audited)
I	Revenue by geographical segment
	India	4,272.39	6,530.44	3,526.86	20,013.53
	EMEA	3.523.45	6,374.86	3,080.85	17,445.70
	APAC	1,093.37	2,717.49	662.20	6,174.90
	USA	2,467.58	3,175.76	1,841.96	11,569.92
	Australia	11,356.79	18,798.55	9,111.87	55,204.05
	TotalLess : Inter-segment revenue
				9,111.87	55,204.05
	Net revenue of operations from external customers	11,356.79	18,798.55
$\mathbf{H}$	Segment profit before tax
	India	143.32	2,395.11	(279.72)	3,382.91
	EMEA	139.31	3,180.17	(12.09)	3,728.17
	APAC	98.69	1,381.55	(204.17)	2,125.77
	USA	184.74	816.84	267.01	2,875.40
	Australia
	Total	566.06	7,773.67	(228.97)	12,112.25
	Add: Other income	293.59	242.47	783.72	2,022.86
	Less: Unallocated expenditure	(638.42)	(426.67)	(263.80)	(1,623.22)
	Profit before tax	221.23	7,589.47	290.95	12,511.89
	Less: Tax expense	49.99	1,556.69	64.01	2,928.81
	Net profit after taxes	171.24	6,032.78	226.94	9,583.08
Ш	Segment assets
	India	9,889.26	11,885.87	10.997.34	11,885.87
	EMEA	10,258.79	12,043.87	10,477.06	12,043.87
	APAC	2,276.77	3,744.71	2,584.66	3,744.71
	USA	3,927.47	4,091.87	2,806.83	4,091.87
	Australia	243.55
	Total	26,595.84	31,766.32	26,865.89	31,766.32
	Add: Unallocated assets	43,948.39	39,152.37	31,999.34	39,152.37
	Total assets	70,544.23	70,918.69	58,865.23	70,918.69
IV	Segment liabilities
	India	5,257.40	4,569.15	5,825.71	4,569.15
	EMEA	5,108.36	5,253.15	3,123.06	5,253.15
	APAC	988.93	1,044.23	792.06	1,044.23
	USA	1,461.49	1,810.92	929.88	1,810.92
	Australia
	Total	12,816.18	12,677.45	10,670.71	12,677.45
	Add: Unallocated liabilities	9,186.83	9,843.80	7,864.58	9,843.80
		22,003.01	22,521.25	18,535.29	22.521.25
	Total liabilities

Statement of Standalone and Co,uolideted Finan<lal Re.!Ults of Newgen Sofrware Technologits Limiled For the Quarter ended 30 June 2019

Notes:

• I The above financial results for the quarter ended 30 June 2019 were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 24 July 2019. Standalone and consolidated financial results of the Company for the quarter ended 30 June 2019 are prepared in accordance with Indian Ae<:ounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and relevant rules thereunder.
• 2 The auditors have earned out limiled review of standalone and consolidated results of the Compa11y for the quarter ended 30 June 2019. There are no qualifications in the Audilor's report on these finoncial results.
• 3 Effective 1 April 2019 the Company has adopted Ind AS 116, and applied the standard to its leases, retrospectively, with the cumulative effect of initially applying the Standard, recognised on the date of initial application (1 April 2019). Ae<:ordingly, the Company has not restated comparative information, instead, the cumulative effect of initially applying this standard has been recognised as an adjustment to the opening balance of retained earnings as on I April 2019. This bas resulted in recognising a right-of-use asset of Rs. I, 769.79 lakhs and a corresponding lease liability of Rs. 2,010 89 lakhs by adjusting rclained earnings net of taxes of Rs. 247.14 lakhs (including the impact of deferred tax created of Rs. 67.93 lakhs) as at I April 2019. In the statement of profit and loss for the eUrTent period, the nature of expenses in respect of operating leases has chnnged from lease rent in previous periods to depreciation cost for the right-of-use asset and finance cost for interest accrued on lease liability.
• 4 The re.solution seeking approval of members of the Company Uuougll postal ballot for variation in the object of the public issue as slated in the prospectus of the Company for utilizat.ion of net proceeds of the !PO, bas bcc,n passed by the members with the requisite majority on 26th June 2019. During the quarter ended 30 June 2019, there was no funhCT utilisation of such proceeds. As at 30 June 2019, the remaining proceeds have been temporarily invested/ deposited in cash and cash equivalents including deposits with banks.

For and on behalf of the Board of Directon of

lS~ Diwakar Nigam

Chairman & Managing Director DIN: 00263222

Place: New Delhi Date: 24 July 2019

NEWGEN SOFTWARE

July 2019

Reinvent Your Workplace

Q1 FY'20 Investor Update

COPYRIGHT 2016, NEWGEN SOFTWARE INC. COPYRIGHT 2019, NEWGEN SOFTWARE

NEWGEN SOFTWARE TECHNOLOGIES: Software products company providing enterprise-wide, mission critical solutions helping organisations drive digital transformation and competitive differentiation

(1) Invoiced in the last 12 months

(2) All figures as of March 2019

Newgen Overview* - Financial Snapshot (FY'19)

1) All figures as of March 2019

2) Adjusted for utilisation of IPO proceeds

3) Free Cash Flow = Net Operating Cash Flow – Capex (adjusted for utilisation of IPO proceeds)

Strong Industry Recognition Validates Culture of Innovation

	Gartner	WaveTM
ECM	A Challenger in Magic Quadrant for Content ServicesPlatform, 25 October 2018, Karen A. Hobertet alNamed on all 5 use-cases in Critical Capabilities for Content ServicesPlatform, 2018, Karen Hobertet al, 25 October 2018	" Leader" in the Forrester WaveTM: Enterprise ContentManagement –Transactional Content Services,Q2 2017
BPM	A Niche Playerin Magic Quadrant for Intelligent Business ProcessManagement Suites, 30 January 2019, Rob Dunieet al	"Strong Performer" in the Forrester WaveTM:Digital Process Automation For Wide Deployments,Q1 2019
CCM	A Niche Playerin Magic Quadrant for CustomerCommunications Management Software,26 January 2017, Karen M. Shegda, Pete Basiliere*	"Strong Performer" in the Forrester WaveTM:Customer Communications Management,Q2 2016
CaseMgmt	A Challengerin 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 2018

Leadership position across segments

COPYRIGHT 2018, NEWGEN SOFTWARE 5 Gartner 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 of Gartner'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.

Driving Innovation Through R&D to Expand Product Portfolio

Focused Go-To-Market Strategy

Strategy Across Regions and Verticals is Based on Direct Presence Supported by Partner Ecosystem

~360 Employees in Sales & Marketing Supported by Large Network of Channel Partners of 300+

• Differentiated 'land and expand' model
• Sale of complete functionality with initial purchase facilitates seamless creation of new applications
• Targeting attractive verticals in select mature markets including USA and UK
• Exploring new geographies - expanding in the Australian market

Multiple Revenue Streams

	FY19RevenueSplit		5 year CAGRGrowth
Sale of Products	25%	Sale of licenses for the software products	25%
ATS / AMC	17%	Annual maintenance contracts and technical support	22%
SaaS	4%	Cloud functionality with subscription fees on a Per UserPer Month model	127%
Support	28%	Support/development services charged on a periodic basis	22%
Implementation	23%	Installing and integrating products with the customer'sexisting platform or system	12%
Digitisation(1)	3%	Scanning of documents and archival to documentmanagement	9%
		Profitable Track Record of Increasing Business from Existing Clients

COPYRIGHT 2016, NEWGEN SOFTWARE 8 77% revenues derived from existing customers in FY'19

Experienced Senior Management Team with Distinct Operating Culture

Management Organisation Structure T.S. Varadrajan Whole Time Director • Co-founded Newgen in 1992 • 35+ years of experience in development of software products • Masters in Computer Science from IIT Madras Diwakar Nigam Chairman and Managing Director • Co-founded Newgen in 1992 • 35+ years of experience in development of software products • Masters in Computer Science from IIT Madras Priyadarshini Nigam Whole Time Director • Been with Newgen since 1997 • More than 10 years of experience in the field of journalism 35 Technology/ Products Sales & Marketing Business Mgmt/Delivery Corporate US Sales Virender Jeet Sr. VP –Sales & Marketing/ Product • Been with Newgen since 1992 • Manages overall strategic and operational responsibility for entire portfolio of offerings Ashish Vikram Singh VP – Product Development • Been with Newgen since 2013 • Experience of 17 years Ashok Kapoor VP – Software Development • Been with Newgen since 2015 • Experience of 26 years Manojit Majumdar VP – Channels • With Newgen since 1998 • Managed mid-market channels at IBM India • Rejoined Newgen in 2011 R. Krishna Kumar VP – Sales • Been with Newgen since 2013 • Experience of 21 years Vivek Bhatnagar VP – Sales • With Newgen since 2011 Anand Raman EVP & COO - Newgen Software Inc. • Been with Newgen since 1994 • Deep experience in product Tarun Nandwani Sr. VP – Business Management • Been with Newgen since 1993 • Responsible for driving business from existing customers and CRM Dushyant Kumar VP – Software Development • Been with Newgen since 1999 • Driving organization wide scaling of competence of Delivery and all customer facing groups S.J. Raj Sr. VP – HRD • Been with Newgen since 1992 • Experience of 31 years Arun Kumar Gupta Chief Financial Officer • Been with Newgen since 2010 • Oversees financial reporting & planning, treasury, taxation, IR and compliances management team with extensive Hemant Makhija VP – Marketing • 30 years of extensive experience with organizations like Plex Systems, Yahoo, Sage, and Systronics Shanmugam Nagappan VP – Software Development • Responsible for managing

Independent Board of Directors

Kaushik Dutta Non Executive, Independent Director 22+ years of experience in Finance & Accounting 26+ years of experience in Finance & Accounting

Saurabh Srivastava

9 9 Non Executive, Independent Director Several years of experience in Information technology

development life-cycle

experience Supported by a strong second line management

Fostered culture of innovation, entrepreneurship and teamwork

Founder-led

10 out of 20 AVP have been with the company for 15+ years

• Experience of 20 years

Subramaniam Ramnath Iyer Non Executive, Independent Director

5 Year Financial Overview

Continued Growth Momentum in Revenues and Profitability

COPYRIGHT 2016, NEWGEN SOFTWARE INC. 10 (1) EBITDA Adjusted for Other Income. Calculated as 'Profit after tax + Tax expense + Finance costs + Depreciation and amortisation - Other income'

FY'15 and FY'16 financials are Restated Consolidated Financials as per Indian GAAP Accounting Standards

FY'17, FY'18 and FY'19 financials are Consolidated Financials as per Ind AS Accounting Standards

Q1 FY'20 Results

Financial Summary (Consolidated)

Particulars	Metrics	Q1FY20(Unaudited)	Q1FY19(Unaudited)	YoYGrowth	Q4FY19(Unaudited)	QoQGrowth
uRn	Revenue from operations	1,309.7	1,064.7	23%	2,039.7	-36%
n)NevM	Other Income	29.5	78.0	-62%	25.2	15%
e (IeR	Total Income	1,339.2	1,142.7	17%	2,064.9	-35%
n)sMofit	EBITDA (adjusted for otherincome)	77.4	5.6	1281%	795.5	-90%
RrN	Profit before tax	40.4	49.3	-18%	787.2	-95%
P(I	Profit after tax	30.8	38.7	-20%	625.1	-95%
%)n (	EBITDA(adjusted for otherincome)	5.9%	0.5%		39.0%
gir	Profit before tax	3.0%	4.3%		38.1%
aM	Profit after tax	2.3%	3.4%		30.3%
R)S	Basic	0.45	0.57	-21%	9.18
PNE(I	Diluted	0.44	0.56	-20%	9.02

Q1 FY'20

• Revenues reached Rs 1,310Mn for Q1 FY'20; witnessing a 23% YoY growth
• Expansion of operating profits partly due to implementation of Lease Accounting Standard Ind AS 116 (Rs 3.9 crores)
• Profit after tax is Rs 3.1 crores compared to Rs 3.9 crores in Q1 FY'19 due to significant decrease in foreign exchange gains, included in Other Income which changed to Rs 3.0 crores in Q1 FY'20 from Rs 7.8 crores in Q1 FY'19.

Diversification Across Verticals and Geographies

COPYRIGHT 2019, NEWGEN SOFTWARE 13

New Logo Wins – Q1 FY'20

New Logo Wins during Q1 FY'20

Major deals include:

• License Agreement with a global leader in beverage alcohol
• Cloud deal with a US Company in legacy annuity business
• License Agreement with a Filipino based stock life insurance company
• Saudi Arabia conglomerate with interests in petrochemicals, chemicals, plastics, and metals manufacturing, industrial services and environmental technologies
• Union Bank and Trust (UBT) is implementing Newgen BPM platform for enterprise-wide automation of its banking processes. UBT would replace its numerous disparate systems and automate manual processes in favor of a single platform that can be utilized across all areas of the bank resulting in enhanced operational efficiencies and improved customer interactions.

Significant Wins – Q1 FY'20

APAC and USA regions on a stronghold:

Key Agreements with Existing Customers

• License Agreement with two large banks in the EMEA Region
• License Agreement with a large public sector bank in India
• Expansion of our cloud agreement with a US based provider of integrated technology, custody, and practice management support for registered investment advisors

COPYRIGHT 2019, NEWGEN SOFTWARE 15 Robust Cloud Business Performance

Business Highlights – Q1 FY'20

Focus on innovation:

Granted patent in July 2019 by US Patent Office for the Company's Intelligent Check Deposit Machine which would help in optimizing the check clearing cycle while ensuring security and compliance

Improved positioning through global alliance:

Compliance Systems based in Michigan and Newgen entered into a strategic alliance that will provide their joint customers with best-in-class solutions to help them drive digital transformation while remaining fully compliant. Under the agreement, Newgen and Compliance Systems will work together to develop an integrated solution that enables compliance in the lending space.

Key Awards:

• Silver Stevie winner for 'The Asia Pacific Stevie Awards 2019' under the category Innovative Use of Technology in Customer Service in Financial Services Industries
• Bronze Stevie winner for 'The Asia Pacific Stevie Awards 2019' under the category Innovative Use of Technology in Customer Service in Financial Services Industries.
• Union Bank Nigeria and Newgen Software have been awarded the Best Branch Digitisation Initiative at The Asian Banker West Africa Awards Programme 2019
• Mashreq Bank, one of the leading financial institutions in the UAE, and Newgen Software were awarded the Best Process Automation Initiative in the Middle East at The Asian Banker Middle East and Africa Awards Programme 2019. (March 2019)
• National Bank of Ras Al Khaimah (RAKBANK) and Newgen Software were announced the winners of The Asian Banker Middle East and Africa Awards Programme 2019 for the Best Branch Digitisation Initiative in the Middle East. (March 2019)

COPYRIGHT 2019, NEWGEN SOFTWARE

Debtor Days (Based on Net Debtors)

P&L Statement

(All amounts in INRm, except per share data and unless	Q1 FY 2020	Q1 FY 2019	Q4 FY 2019	FY 2019	FY 2018
otherwise stated)	(Unaudited)	(Unaudited	(Unaudited)
Revenue
Revenue from operations	1,309.7	1,064.7	2,039.7	6,206.4	5,124.3
Other income	29.5	78.0	25.2	203.8	76.1
Total revenue	1,339.2	1,142.7	2,064.9	6,410.2	5,200.4
Expenses
Employee benefits	778.4	650.3	746.1	2,879.9	2,488.8
Finance costs	18.3	19.7	18.6	85.4	52.1
Depreciation and amortisation	48.2	14.6	15.0	59.8	58.1
Other expenses	453.9	408.8	498.1	2,049.3	1,660.1
Total expenses	1,298.8	1,093.4	1,277.7	5,074.4	4,259.1
Profit before tax	40.4	49.3	787.2	1,335.8	941.3
Tax expenses			162.1	313.7	212.5
Current tax	10.4	14.5	158.4	299.4	169.5
Deferred tax (credit)/charge	-0.8	-3.9	3.6	14.3	43.0
Profit after tax for the year	30.8	38.7	625.1	1,022.1	728.9
Other comprehensive income/(loss) for the year,net of income tax	-1.2	1.7	-10.9	2.8	8.2
Total comprehensive income for the year	29.7	40.3	614.2	1,024.9	737.1
Earnings per equity share (face value of Rs. 10per share)
Basic earning per share	0.45	0.57	9.18	15.01	11.44
Diluted earning per share	0.44	0.56	9.02	14.74	11.15

Thank you

www.newgensoft.com

For any Investor Queries please contact:

Deepti Mehra Chugh Head – Investor Relations Phone: +91 11- 46 533 200 Mail : deepti.chugh@newgen.co.in

Disclaimer

This presentation may contain certain forward looking statements concerning Newgen Software Technologies' future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially 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 regarding fluctuations in earnings, our ability to manage growth and new business opportunities, competition (both domestic and international), economic growth in India and the target countries for business, ability to attract and retain highly skilled professionals, time and cost over runs on projects, our ability to manage our international operations, government policies, interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance.

The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.