Newgen Software Technologies Limited — Investor Presentation 2020

May 26, 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: 26th May, 2020

To,	To,
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.:NewgenSoftwareTechnologies	Ref.: Newgen Software Technologies Limited
Limited	(NEWGEN/INE619B01017)
(NEWGEN/INE619B01017)
Scrip Code -540900

Sub.: Investor Presentation and Press Release on Financial Results for the quarter and financial year ended 31st March 2020

Dear Sir/ Ma'am,

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

• 1. Press Release on aforesaid financials results; and
• 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.: a/a

PRESS RELEASE

Newgen Software reports Revenues of Rs 661cr in FY'20, Cloud Revenues up 60%

Company helps enterprise customers adapt to the uncertain environment with its low code digital automation platform

New Delhi, India – 26 May 2020

The management of Newgen Software Technologies Ltd. announced results for the Quarter and Financial year ended 31 March 2020 at its Board Meeting held on 26 May 2020.

Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – "An uncertain environment calls for extraordinary steps by an organization. During the COVID-19 pandemic, Newgen's pre-emptive measures, business continuity processes and robust IT infrastructure ensured quick control and seamless transition to remote working environment. Our solutions, developed on our low code digital automation platform, are of mission critical nature for our long term customers. They serve as the backbone of their operations. During this COVID-19 time we ensured their continued operations and business continuity. The Company focused on health and safety of employees while fully supporting clients worldwide. I would like to take this opportunity to thank all our employees for showing such dedication towards work.

Our business has heavy dependence on the fourth quarter. However, fourth quarter performance was lower than expected impacted by new business deferments due to restrictions imposed globally starting in February 2020 and the subsequent evacuation operations; as well as continuing economic and banking sector slowdown in India market.

While in the short term the environmental challenges are expected to continue to lead to delay in new deals signings, we believe that today, the relevance and requirement of our digital solutions for enterprises is more than ever. We are thus transforming ways of working by aggressively pursuing cloud deployments across the globe.

We believe that our annuity revenue streams from existing customers would help maintain stability in revenues. Our concerted efforts towards more efficient operations and cost optimization for cash preservation would help us maintain a healthy liquidity position during this phase."

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

• Revenue from operations (Consolidated) up 6.5% YoY at Rs 660.8 crores as compared to Rs 620.6 crores in FY'19. The business has heavy dependence on the fourth quarter impacting the overall performance. During the year, Newgen witnessed growth across the board in its key geographies. India, however, continued to face challenges on account of economic sluggishness in NBFC and Banking as well as banking consolidation.
  • o Annuity Revenue streams (ATS/AMC, Support and Cloud/SaaS) were at Rs 368.6 crores. Cloud/SaaS deployments are rapidly increasing in all geographies – US, APAC, India, as well as in the EMEA region. Cloud Revenues were Rs 38.3 crores and witnessed a growth of 60% YoY.
  • o Revenue from Sale of Products/ License were at Rs 117.7 crores
  • o Implementation & Digitization revenues were at Rs 174.5 crores
• Profit after tax down at Rs 72.7 crores on account of slower growth in top-line and continued investments in R&D & Sales and Marketing efforts.

Key Consolidated Financial Highlights (Q4 FY'20) – [Y-o-Y Comparison]

• Revenue from operations (Consolidated) at Rs 190.8 crores as compared to Rs 204.0 crores in Q4 FY'19 due to delay in new deal closures on account of COVID-19 related lockdowns and restrictions imposed globally.
• EBITDA* was at Rs 51.9 crores and Profit after tax was at Rs 41.5 crores.

*Earnings before Interest, Tax, Depreciation and Amortisation, adjusted for other income

Key Business Highlights (Q4 FY'20)

• Seamless transition to remote working environment: Company implemented its business continuity plan, executed just-in-time requisition and provision of computers, enabled VPNs and 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 project deployments (from requirements gathering, to project planning, to implementation and production support) as well as sales and marketing efforts.
• Banking and Financial Services vertical continued to be our largest vertical comprising 60% of revenues during the quarter followed by Government/ PSU (10%), BPO/IT (7%) and Healthcare and Insurance (6% each). Low presence in currently impacted verticals due to the pandemic.

• Prestigious customer wins: 21 new customer additions in Q4 FY'20 including:
  • o Large project with a leading Pan-African financial institution, offering banking services to more than 18 million customers, across 1,000 business offices and customer touch points in 20 African countries
  • o License Agreement with a key government ministry in India
  • o 4 cloud agreements in the US including a deal with a leading provider of property casualty insurance for auto, home and business
  • o Mid-sized project with one of the largest Bahamian banks with $1.7 billion in assets
• R&D Efforts:
  • o Received Patent for Mark Detection System and Methodology from US Patent Office
  • o Secured Patent for a System and Method for Automatic Quality Assessment of Digital Documents
• Product Launches: Company's new version of the product iBPS has low code capabilities and cloud deployments which are very relevant today. Newgen also launched an enhanced version of Customer Communication Management product suite that enables users to easily create, design, and manage HTML email communications.
• Strategizing new offerings: Newgen is developing and deploying new solutions under the Paycheck Protection Program to help financial institutions quickly process and forgive loans under the various monetary and fiscal interventions introduced by governments globally to to stabilize economic conditions. The Company is prioritizing SaaS based delivery models with all geographies increasingly moving in that direction.
• Received approval for setting up a unit in the IT/ITES SEZ in Noida, Uttar Pradesh from Development Commissioner of Noida Special Economic Zone

Other Highlights

Appointment of Ms Padmaja Krishnan as Non- Executive Independent Director of the company w.e.f. March 24, 2020

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

Newgen Software Technologies Ltd.

Q4 FY'20 and FY'20 Investor Update

Connecting Enterprises. Transforming Experiences.

COPYRIGHT 2020, NEWGEN SOFTWARE

May 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

Resilient Business Model in place

Strong Industry Recognition

Gartner

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 alA Challenger in Magic Quadrant for BPM-Platform-BasedCase Management Frameworks,,24 October 2016, Rob Dunie, Janelle B. Hill*	"Strong Performer" in the Forrester WaveTM: DigitalProcess Automation For Wide Deployments, Q1 2019"Leader" in the Forrester WaveTM: Cloud-BasedDynamic Case Management (DCM), Q1 2018
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.

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 geographies

Expanding revenues from existing customers

Actively helping long term customers in continuing operations seamlessly despite the disruptions

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

(1) 44 Patent Filings, of which 15 patents are granted in India & the USA and 19 patent applications are under processing

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

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

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

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

• Experience of 21 years

years

Kaushik Dutta 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

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 11

Covid19 Update

Covid19 Update

Seamless transition to remote working environment:

• Company implemented its business continuity plan, executed just-in-time requisition and provision of computers, enabled VPNs and 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 project deployments (from requirements gathering, to project planning, to implementation and production support) as well as sales and marketing efforts.

Strategizing new offerings:

• Newgen is developing and deploying new solutions under the Paycheck Protection Program to help financial institutions quickly process and forgive loans under the various monetary and fiscal interventions introduced by governments globally to stabilize economic 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 digital capabilities

Company is focused on health and safety of employees while fully supporting our clients worldwide

Customer Case Study: Banking - A New York - Based Bank Ensures Business Continuity During COVID-19 Using Newgen's Commercial Lending Solution

One of the largest banks in the United States with around 240 branch offices had implemented Newgen's commercial loan origination solution (CLOS) to streamline the overall lending process. Due to the outbreak of the COVID-19 epidemic, the bank needed to immediately enable employees to operate remotely without impacting the speed and quality of services.

Using Newgen's CLOS application, the bank digitized its lending cycle and automated its operations, enabling a quick and hassle-free shift to the remote working environment.

Q4 FY'20 Results

Financial Summary (Consolidated)

Particulars	Metrics	Q4FY20(Unaudited)	Q4FY19(Unaudited)	YoYGrowth	Q3FY20(Unaudited)	QoQGrowth	FY20(Unaudited)	FY19(Unaudited)	YoYGrowth
en)u	Revenue from operations	1,908	2,040	-6%	1,850	3%	6,608	6,206	6%
MneRv	Other Income*	92	25	264%	40	127%	210	204	3%
NeR(I	Total Income	2,000	2,065	-3%	1,890	6%	6,817	6,410	6%
sRn)ofitNM	EBITDA (adjusted forother income)	519	796	-35%	358	45%	1,046	1,277	-18%
(IrP	Profit after tax	415	625	-34%	240	73%	727	1,022	-29%
n%)gira(	EBITDA(adjusted forother income)	27.2%	39.0%		19.4%		15.8%	20.6%
M	Profit after tax	20.7%	30.3%		12.7%		10.7%	15.9%
R)S	Basic	6.01	9.18	-35%	3.48		10.56	15.01	-30%
PNE(I	Diluted	6.00	9.02	-33%	3.46		10.51	14.74	-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 new business deferments due to lockdowns and restrictions imposed globally. During the year, Newgen witnessed growth across the board in its key geographies. India, however, continued to face challenges on account of economic sluggishness in NBFC and Banking as well as 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 Marketing efforts.

New Logo Wins – FY'20

New Logo Wins during Q4 FY'20

• 71 Major deals during Q4 include: Large project with a leading Pan-African financial institution, offering banking services to more than 18mn customers, across 1,000 business offices and customer 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 of property casualty insurance for auto, home and business
  • Mid-sized project with one of the largest Bahamian banks with $1.7bn in assets

Business Highlights

No. of Deals above Rs 5 crores

Business Highlights – Q4 FY'20

• Received Patent for Mark Detection System and Methodology from US Patent Office
• Secured Patent for a System and Method for Automatic Quality Assessment of Digital Documents
• Received approval for setting up a unit in the IT/ITES SEZ in Noida, Uttar Pradesh from Development Commissioner of Noida Special Economic Zone
• Company's new version of the product iBPS has low code capabilities and cloud deployments which are very relevant today. Newgen also launched an enhanced version of Customer Communication Management suite that enables users to easily create, design, and manage HTML email communications.

Key Highlights – Appointment of Non-Executive Director

Appointment of Ms Padmaja Krishnan as Non- Executive Independent Director of the company w.e.f. March 24, 2020

Padmaja Krishnan is an independent Director of our Company. She has industry expertise spanning over thirty years as a global business leader and innovator in the Technology space. 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 of Emerging Edges Consultants Pvt. Ltd. since 2010. She is a certified coach at Marshall Goldsmith Stakeholder Centered Coaching, certified Tick IT Lead Assessor from UK, Certified Corporate Director by Institute of Directors and has acted as a Guest Faculty at FMS, BIMTECH and NIFM. She did her Bachelors and Masters in Physics from University Of Delhi and M.Phil. in Computer & Systems Sciences from JNU, New Delhi

Debtors Days

Your Trusted Digital Transformation Partner

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)	Q4 FY 2020	Q4 FY 2019	Q3 FY 2020	FY 2020	FY 2019
Revenue
Revenue from operations	1,908.4	2,039.7	1,849.5	6,607.6	6,206.4
Other income	91.7	25.2	40.4	209.6	203.8
Total revenue	2,000.1	2,064.9	1,889.9	6,817.2	6,410.2
Expenses
Employee benefits	845.3	746.1	889.0	3,423.9	2,879.9
Finance costs	34.7	18.6	22.6	109.1	85.4
Depreciation and amortisation	52.9	15.0	48.8	199.1	59.8
Other expenses	543.7	498.1	602.6	2,137.6	2,049.3
Total expenses	1,476.5	1,277.7	1,563.0	5,869.8	5,074.4
Profit before tax	523.6	787.2	326.9	947.4	1,335.8
Tax expenses
Current tax	112.4	158.4	92.7	265.1	299.4
Deferred tax (credit)/charge	-3.5	3.6	-5.5	-45.0	14.3
Profit after tax for the year	414.7	625.1	239.6	727.3	1,022.1
Other comprehensive income/(loss) for the year,net of income tax	8.7	-10.9	15.1	24.2	2.8
Total comprehensive income for the year	423.4	614.2	254.7	751.5	1,024.9
Earnings per equity share (face value of Rs. 10per share)
Basic earning per share	6.01	9.18	3.48	10.56	15.01
Diluted earning per share	6.00	9.02	3.46	10.51	14.74

Balance Sheet

(All amounts in INRm, except per share data and
unless otherwise stated)	30-Mar-19	30-Mar-20
Assets
Non-current assets	1,882.6	2,684.0
Property, plant and equipment	676.3	664.1
Capital work-in-progress	832.1	907.3
Right-of-use assets		625.2
Intangible assets	13.1	14.0
Financial assets
Loans	36.2	43.8
Other financial assets	32.3	35.8
Deferred tax assets	178.4	226.6
Income tax assets	99.7	158.1
Other non-current assets	14.5	9.1
Current assets	5,543.4	6,026.7
Financial assets
Investments	516.6	761.1
Trade receivables	2,526.9	2,694.0
Cash and cash equivalents	1,577.5	1,001.1
Other bank balances	213.9	651.6
Loans	4.5	13.2
Other financial assets	627.6	826.0
Other current assets	76.5	79.7
Total	7,426.0	8,710.8

Equity & Liabilities
Equity	4,967.1	5,490.7
Share capital	684.6	690.9
Other equity	4,282.5	4,799.8
Non-current liabilities	296.9	464.6
Lease liabilities	102.9	229.6
Deferred Tax Liability	1.1	1.7
Provisions	192.9	233.2
Current liabilities	2,162.1	2,755.5
Financial liabilities
Lease liabilities	29.2	133.4
Borrowings	677.3	745.3
Trade payables	216.1	275.1
Derivative liabilities
Other financial liabilities	358.9	412.0
Deferred Income	679.5	1,009.0
Other current liabilities	157.9	130.6
Short-term provisions	43.3	50.1
Total	7,426.0	8,710.8