Newgen Software Technologies Limited — Investor Presentation 2020

Oct 21, 2020

CIN: L72200DL1992PLC049074

A-6, Satsang Vihar Marg, Qutab Institutional Area, New Delhi - 110 067, INDIA Email: corpmktg@newgensoft.com URL: https://newgensoft.com Tel.: (+91)-11-4077 0100, (+91)-11-2696 3571, 2696 4733, Fax: (+91)-11-2685 6936

Date: 21st October 2020

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

Sub.: Investor Presentation and Press Release on Unaudited Financial results for the 2nd Quarter and Halfyear ended 30th September 2020. Dear Sir/ Ma'am,

Pursuant to the above-mentioned subject, we are hereby enclosing the following:

• 1. Investor Presentation; and
• 1. Press Release on Unaudited Financial results.

You are requested to kindly take the same on record.

Thanking you,

Encl.: a/a

Newgen Software Technologies Ltd.

Q2 FY'21 Investor Update

Connecting Enterprises. Transforming Experiences.

COPYRIGHT 2020, NEWGEN SOFTWARE

Oct 2020 Reinvent business with Newgen's transformative platforms

Low-code software products company providing enterprise-wide, mission critical solutions helping organisations drive digital transformation and competitive differentiation

Newgen at a Glance (FY'20)

(1) Invoiced in the last 12 months (2) All figures as of March 2020

Newgen's Transformative Platform

Resilient Business Model in place (FY'20)

Gartner Strong Industry Recognition

ECM	A 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 2019
BPM/	A Niche Player in Magic Quadrant for Intelligent BusinessProcess Management Suites, 30 January 2019, Rob Dunieet al.	"Strong Performer" in the Forrester WaveTM: DigitalProcess Automation For Wide Deployments, Q1 2019
LowCode	A 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 2018
	A Niche Player in Magic Quadrant for Enterprise Low-CodeApplication Platforms, 30 September, 2020, Paul Vincent et al.
CCM	A 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 2016

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.

• 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 with exposed 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.

Focused on Driving Innovation Through R&D

Our complete development network and supporting infrastructure operates on a central system and follows a synchronized cloud-based continuity strategy

Transforming project delivery and sales and marketing methods

Cloud Deployments ensuring remote implementations

Low Code Platforms ensures reduction in delivery timelines

Leveraging digital connectivity while ensuring data security to successfully execute each stage of project deployments and sales demos and discussions

Local teams across mature markets

Focus on strengthening the SI partner ecosystem globally

Experienced Senior Management Team with Distinct Operating Culture

Management Organisation Structure T.S. Varadarajan 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 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 Vivek Bhatnagar VP – Sales • With Newgen since 2011 • Experience of 20 years Anand Raman EVP & COO - Newgen Software Inc. 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 Dr. 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 Founder-led management team with extensive experience Supported by a strong second line management Fostered culture of innovation, entrepreneurship and teamwork 10 out of 20 AVP have been with the company for 15+ 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 R. Krishna Kumar VP – Sales • Been with Newgen since 2013 Australia Sales Sunil Pandita VP – Sales • 22 years of extensive experience with organisations

Independent Board of Directors

like Samsung Electronics, Adobe, IBM, Autodesk and HCL

Kaushik Dutta

• Experience of 21 years

Subramaniam Ramnath Iyer Non Executive, Independent Director 26+ years of experience in Finance & Accounting

years

• Been with Newgen since 1994
• Deep experience in product development life-cycle

Non Executive, Independent Director 22+ years of experience in Finance & Accounting Saurabh Srivastava Non Executive, Independent Director Several years of experience in Information technology

delivery functions on projects executed from SDC, Chennai

Padmaja Krishnan Non Executive, Independent Director 30+ years of experience in Technology space

5 Year Financial Overview

COPYRIGHT 2016, NEWGEN SOFTWARE INC. FY'16 financials are Restated Consolidated Financials as per Indian GAAP Accounting Standards FY'17-20 financials are Consolidated Financials as per Ind AS Accounting Standards 10

Q2 FY'21 Results

Financial Summary (Consolidated)

Particulars		Q2FY21(Unaudited)	Q2FY20(Unaudited)	YoYGrowth	Q1FY21(Unaudited)	QoQGrowth	H1 FY21(Unaudited)	H1 FY20(Unaudited)	YoYGrowth
en)uM	Revenue from operations	1,550	1,540	1%	1,321	17%	2,871	2,850	1%
neRv	Other Income	30	48	-37%	39	-23%	69	78	-10%
NeR(I	Total Income	1,580	1,588	0%	1,360	16%	2,941	2,927	0%
sRn)ofitNM	EBITDA (adjusted for otherincome)	411	91	350%	156	164%	567	169	236%
(IrP	Profit after tax	292	42	592%	91	220%	383	73	425%
n%)gira(	EBITDA(adjusted forother income)	26.5%	5.9%		11.8%		19.7%	5.9%
M	Profit after tax	18.5%	2.7%		6.7%		13.0%	2.5%
R)SP	Basic	4.23	0.62	587%	1.32		5.55	1.07	421%
NE(I	Diluted	4.19	0.61	583%	1.31		5.50	1.05	422%

Q2 FY'21

• Strong performance with demand uptick from our existing customers, along with 17 interesting new logo acquisitions
• Expanding margin profile due to strong cost rationalisation initiatives undertaken by the Company: oEBIDTA up by 350% YoY at Rs 41.1 crores compared to Rs 9.1 crores in Q2 FY'20 oProfit after tax up by 592% YoY at Rs 29.2 crores from Rs 4.2 crores in Q2 FY'20

Newgen Recognized for the First Time in Gartner Magic Quadrant for Enterprise Low-Code Application Platforms

Gartner estimates, "By 2023, over 50% of medium to large enterprises will have adopted an Low code as one of their strategic application platforms."

Newgen's low code digital automation platform enables a modeling-driven environment to design and develop end-toend applications and processes, reducing IT dependency, increasing process and operational efficiency, and delivering superior customer experience

*Authored by Paul Vincent, Yefim Natis, Kimihiko Iijima, Jason Wong, Saikat Ray, Akash Jain, and Adrian Leow

Disclaimer: 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.

Customer Wins

Major deals include:

• License deal with a premier student loan financing organization in Americas committed to ensuring equal access to financial assistance to pursue tertiary education
• Provided solutions for an international bank in Singapore, with more than 150 years of banking history
• Solution implementation for a US Bank

Enhanced Visibility of Revenues

Growth momentum continues in Annuity Revenues Streams

Business Highlights

Increasing share in growth markets: Growth momentum continues in new markets. Newgen's revenues from the US and APAC region witnessed robust growth of 11% YoY and 39% YoY respectively

Accelerated performance in the Banking & Financial services, Government/ PSU, and Share Services verticals with increased demand for digital transformation initiatives in these sectors.

Growth momentum in Cloud continues: Newgen's cloud-based solutions provide reliable, uninterrupted, and secure service to customers. Cloud Revenues witnessed a growth of 42% YoY during the quarter.

Launched OmniXtract 3.0, an enhanced and efficient version of intelligent data extraction software, which leverages intelligent technologies

Diversification continues across Verticals and Geographies

Debtors Days

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 and general economic conditions affecting the industry. 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.

P&L Statement

(All amounts in INRm, except per share data
and unless otherwise stated)	Q2 FY 2021	Q2 FY 2020	Q1 FY 2021	H1 FY 2021	H1 FY 2020
Revenue
Revenue from operations	1,550.1	1,540.0	1,321.2	2,871.3	2,849.6
Other income	30.3	48.0	39.2	69.4	77.5
Total revenue	1,580.4	1,588.0	1,360.4	2,940.7	2,927.2
Expenses
Employee benefits	727.3	911.2	780.6	1,507.9	1,689.7
Finance costs	7.9	33.5	18.0	25.9	51.8
Depreciation and amortisation	48.8	49.2	57.8	106.6	97.4
Other expenses	411.7	537.5	384.8	796.6	991.3
Total expenses	1,195.7	1,531.5	1,241.2	2,437.0	2,830.2
Profit before tax	384.6	56.6	119.1	503.8	97.0
Tax expenses
Current tax	124.4	49.6	64.4	188.8	60.0
Deferred tax (credit)/charge	-31.9	-35.3	-36.4	-68.3	-36.1
Profit after tax for the year	292.1	42.2	91.2	383.3	73.1
Other comprehensive income/(loss) for theyear, net of income tax	-7.8	1.5	15.7	7.9	0.3
Total comprehensive income for the year	284.3	43.7	106.9	391.2	73.4
Earnings per equity share (face value ofRs. 10 per share)
Basic earning per share	4.23	0.62	1.32	5.55	1.07
Diluted earning per share	4.19	0.61	1.31	5.50	1.05

PRESS RELEASE

Newgen Software Reports Revenues of Rs 155.0 cr up 17% QoQ and Net Profit of Rs 29.2cr in Q2 FY'21, up 220% QoQ

Newgen's Low Code Digital Automation Platform empowers Enterprises in rapidly building and deploying applications

New Delhi, India – 21 October 2020

The management of Newgen Software Technologies Ltd. announced results for the Quarter ended 30 September 2020 at its Board Meeting held on 21 October 2020.

Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – "We are happy to announce good results this quarter. We witnessed demand uptick from our existing customers and new customers with successful remote execution, achieving highly profitable operations.

Going forward, we see a definite shift towards digital transformation, using low code development and cloud platforms. We have been recognized for the first time, in Gartner's Magic Quadrant for Enterprise Low-Code Application Platforms. Newgen's platform enables rapid application development and offers scalability and agility to an enterprise. This lowcode market is rapidly growing and is expected to proliferate fast in enterprises in the coming 2-3 years. We are glad to be in the midst of this growth market and see great opportunity for Newgen.

We also acquired 17 new logos in this quarter. In Covid-19 era, digital resilience has become a global priority, and we see increased interest across geographies. We are witnessing strong growth in our cloud revenues and expect to make good progress in the coming quarters.

Superior customer experience, differentiated value proposition and operational efficiency measures remain our key strategies, helping us sustain growth and profitability".

Key Consolidated Financial Highlights (Q2 FY'21)

Revenue from operations (Consolidated) at Rs 155.0 crores as compared to Rs 154.0 crores in Q2 FY'20 (up 0.7% YoY, 17% QoQ).

• Annuity revenue streams (ATS/AMC, Support, and Cloud/SaaS) witnessed a growth of 8% YoY (12% QoQ) and reached Rs 97.8 crores improving long-term visibility of the business
• Revenue from Sale of Products/License were at Rs 26.4 crores
• Implementation & digitization revenues were at Rs 30.8 crores

EBIDTA up by 350% YoY at Rs 41.1 crores compared to Rs 9.1 crores in Q2 FY'20

Profit after tax up by 592% YoY at Rs 29.2 crores from Rs 4.2 crores in Q2 FY'20 based on strong cost rationalization initiatives undertaken by the Company

Key Business Highlights (Q2 FY'21)

• Newgen has been Positioned as a Niche Player in the Gartner Magic Quadrant for Enterprise Low-Code Application Platforms, September 30, 2020*. Newgen provides a robust digital platform to automate business processes, has flexible licensing and deployment options, with the ability to deliver wider enterprise solutions with tremendous value
• Growth momentum in Cloud continues: Newgen's cloud-based solutions provide reliable, uninterrupted, and secure service to customers. Cloud revenues witnessed a growth of 42% YoY during the quarter
• Increasing share in growth markets: Growth momentum continues in new markets. Newgen's revenues from the US and APAC region witnessed robust growth of 11% YoY and 39% YoY respectively
• 17 New Customer Logos addition in the Quarter, including
  • o License Deal with a premier student loan financing organisation in Americas.
  • o Providing solutions for a very large international bank in Singapore, with more than 150 years of banking history
  • o Solution implementation for a US Bank
• Accelerated performance in Banking & Financial Services, Shared Services and Government/PSU, verticals with increased demand for digital transformation initiatives in these sectors
• Launched new products - OmniXtract 3.0, an enhanced and efficient version of intelligent data extraction software, which leverages intelligent technologies

*Authored by Paul Vincent, Yefim Natis, Kimihiko Iijima, Jason Wong, Saikat Ray, Akash Jain, and Adrian Leow

Disclaimer: 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.

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 leading provider of low code digital automation platform. Globally, successful financial institutions, insurance, government, and shared services organizations rely on Newgen's industry-recognized products and applications—to manage their processes (BPM), content (ECM), and communications (CCM)—for connected operations. From customer onboarding to service requests, from loans and deposits to underwriting, and many more, Newgen's industry applications transform business-critical operations with agility. Newgen's cloudbased platform enables digital transformation initiatives for superior customer experience, optimized costs, and improved efficiencies.

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