Newgen Software Technologies Limited

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CIN: L72200DL1992PLC049074 Regd. Office: A-6, Satsang Vihar Marg, Qutab Institutional Area, New Delhi - 110 067, INDIA Email: [email protected] URL: https://newgensoft.com Tel.: (+91)-11-4077 0100, (+91)-11-2696 3571, 2696 4733, Fax: (+91)-11-2685 6936

Date: 20[th] January 2021

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001	National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra- Kurla Complex 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 3[rd] Quarter ended 31[st] December 2020 .

Dear Sir/ Ma’am,

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

Investor Presentation; and
Press Release on Unaudited Financial results.

You are requested to kindly take the same on record .

Thanking you,

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Encl.: a/a

Newgen Software Technologies Ltd. Q3 FY’21 Investor Update

Connecting Enterprises. Transforming Experiences.

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

Digitise

Process & Adapt

Communicate

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Deliver contextual content for smarter Deliver contextual content for smarter decision making and improved decision making and improved collaboration collaboration

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Create smarter processes, empower knowledge workers and build responsive business

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Create, personalize and deliver interactive communication to enhance customer experience

Newgen at a Glance (FY’20)

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~560 Active 69
Customers [(1)] Countries
Strong Industry
44 Patent
Recognition
Filings
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Rs 6,608 Mn 56% Annuity FY’20 Revenues Revenues

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Toronto, CA New Delhi, INNew
Philippine
Mississaug
London, UKLondon Delhi s
a, ON Mu Kolk
mbai
ata
Tampa, FL
Dub
Dubai, AEai New South
McLean, VA Wales, AU
Singapore, SG
Global Offices HQ
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India Offices include Mumbai, Chennai, Bengaluru, Kolkata, Hyderabad, Noida, Gurugram, New Delhi

Newgen’s Transformative Platform

Resilient Business Model in place (FY’20)

	56%	18%		26%
Large annuity revenues streams	Annuity Revenues	Sale of Products	Sale of Services
	FY20 Revenue Split by Segment
	57%	9% 8% 8%	6%	12%
Mission critical solutions across key verticals	Banking & FS	BPO Health Govt.	Insurance	Others
	FY20 Revenue Split by Segment
	30%	31% 28%		11%
Diversification across geographies	India	USA EMEA		APAC
	FY20 Revenue Split by Geography

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

28 years of product DNA

Skilled R&D team with deep product domain expertise

Unified platform with modular deployment

Intuitive applications and scalable performance

Low Code Platform

SaaS delivery

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New Features
Intelligent
Content Services
Low‐Code
Application Dev Platform
Collaborative
Work Management
Digital Sensing
BlockChain
RPA
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6
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(1) 44 Patent Filings, of which 15 patents are granted in India & the USA and 16 patent applications are under processing

5 Year Financial Overview

Total Revenue (INRm)

PAT (INRm) and PAT Margins

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Profit impacted due to
7000 Growth impacted due to business
6,608 1,200 business deferments (Covid19)
deferments (Covid19)
6,206
6000 6% 1,022
1,000
5,124
5000 4,699
4,271 4,167 800 729 727
4000 13%
3,468
600
3000 513
400
2000
278
1000 200
0
FY16 FY17 FY18 9M FY19 9M FY'20 ‐
FY’19 FY’20 FY16 FY17 FY'18 FY'19 FY'20
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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 COPYRIGHT 2016, NEWGEN SOFTWARE INC.

Q3 FY’21 Results

Financial Summary (Consolidated)

Particulars	Q3FY21 (Unaudited) Q3FY20 (Unaudited) YoY Growth	Q2FY21 (Unaudited) QoQ Growth	9M FY21 (Unaudited) 9M FY20 (Unaudited) YoY Growth
Revenue (INR Mn)	Revenue from operations 1,855 1,850 0.3%	1,550 19.7%	4,726 4,699 0.6%
	Other Income 35 40‐12.7%	30 16.4%	105 118 ‐11.2%
	Total Income 1,890 1,890 0.0%	1,580 19.6%	4,831 4,817 0.3%
Profits (INR Mn)	EBITDA_(adjusted for other_ income) 688 358 92.3%	411 67.4%	1,255 527 138.4%
	Profit after tax 354 240 47.8%	292 21.3%	738 313 135.9%
Margin (%)	EBITDA (adjusted for other income) 37.1% 19.4%	26.5%	26.6% 11.2%
	Profit after tax 18.7% 12.7%	18.5%	15.3% 6.5%
EPS (INR)	Basic 5.12 3.48 46.9%	4.23 21.1%	10.67 4.55 134.5%
	Diluted 5.08 3.46 47.0%	4.19 21.2%	10.59 4.51 134.8%

Q3 FY’21

Robust performance with balanced growth across key geographies as we continue to get large and additional business from existing customers and undertake new logo acquisitions.

 Strong uptick in subscription revenues

Expanding margin profile driven by cost rationalizations
EBIDTA up by 92% YoY at Rs 688mn compared to Rs 358mn in Q3 FY’20

o Profit after tax up by 48% YoY at Rs 354mn from Rs 240mn in Q3 FY’20

 Net cash generated from operating activities at Rs 167.6 crores for 9M FY’21, compared to Rs 44.7 crores for 9M FY’20

Customer Wins

Major deals include:

New Logo Wins during Q3 FY’21

Four new logos in the Americas region in the Banking and Financial services domain

 Strategic win for delivery & implementation of Newgen ECM and BPM solution for a unit of the Government of India for streamlining the collection, processing & dissemination of data to generate meaningful information for analysis

 Mid sized project for a full‐service Retail and SME (small and medium sized enterprises) Bank in UK

Two large transformational deals from existing customers – a leading private sector bank in India and a leading small finance bank

Stable Annuity Revenues Streams with increasing subscriptions

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Subscription Revenues (INRm) Annuity Revenues (INRm)
27%
29%
(5 year CAGR)
(5 year CAGR)
FY'16 FY'17 FY'18 FY'19 FY'20 FY'16 FY'17 FY'18 FY'19 FY'20
3,686
3,030
1,686
2,209
1,275
1,707
961 1,405
765
602
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Growth momentum in Subscription revenues continues ‐ witnessed growth of 11% YoY during the quarter, 22% YoY in 9M FY’21

Strengthened management team with addition of three senior leaders

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Management Organisation Structure
Diwakar Nigam T.S. Varadarajan Priyadarshini Nigam
Chairman and Managing Director Whole Time Director Whole Time Director
• Co‐founded Newgen in 1992 Co‐founded Newgen in 1992 Been with Newgen since 1997
• 35+ years of experience in development of 35+ years of experience in development of More than 10 years of experience in
software products software products the field of journalism
• Masters in Computer Science from IIT Madras Masters in Computer Science from IIT Madras
Technology/ Products Sales & Marketing Business Mgmt/Delivery Corporate
Virender Jeet
Rajvinder Singh Kohli Tarun Nandwani Dr. S.J. Raj
Sr. VP –Sales & Sr. VP – Sales Sr. VP – Business Sr. VP – HR and Operations
Marketing/ Products
35 Management
Arvind Jha Arun Kumar Gupta
Hemant Makhija Ashok Kapoor
Sr. VP –Software Chief Financial Officer
VP – Marketing VP – Global Delivery
Development
Dushyant Kumar
Manojit Majumdar Rajiv Burman
VP – Software Development
VP – Channels VP – Human Resources
Australia Sales
Vivek Bhatnagar Shanmugam Nagappan US Sales
Krishna Kumar VP – Sales – EMEA VP – Software Development
VP‐Sales Anand Raman
EVP & COO ‐ Newgen
Software Inc.
Sunil Pandita
VP – Sales – South Asia
New Additions
Independent Board of Directors
Subramaniam Ramnath Iyer Kaushik Dutta Saurabh Srivastava Padmaja Krishnan
12
Non Executive, Independent Director Non Executive, Independent Director Non Executive, Independent Director Non Executive, Independent Director
26+ years of experience in Finance & Accounting COPYRIGHT 2020, NEWGEN SOFTWARE 22+ years of experience in Finance & Accounting Several years of experience in Information technology 30+ years of experience in Technology space
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Newgen Positioned as a Visionary in Gartner Magic Quadrant for Content Services Platforms

We believe this inclusion by Gartner recognizes our efforts towards enabling enterprises in streamlining their content and ensuring remote, secure access to relevant information.

Newgen OmniDocs, a fully‐featured CSP, enables organizations across the globe with document management, multichannel capture and scanning, records management, and content analytics. The platform connects content and processes with context and allows for automation with agility.

Business Highlights

Continues Focus on Research & Development

Granted a patent for an invention entitled “Remote Email Access Through Short Message Service (SMS) by the Indian Patent Office, Chennai for a term of 20 years commencing from February 16, 2010. Newgen has filed 44 patents till date, out of which 17 have been granted in India and the US.

Broad based growth across key verticals

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

Key Awards

Fidelity Bank and Newgen awarded the ” Best Self‐Service Banking Technology Implementation” at the Asian Banker Middle East and Africa Regional Awards 2020

Bank Muscat and Newgen recognized for the “Best Lending Implementation in the Middle East” at The Asian Banker Middle East and Africa Awards 2020.

Abu Dhabi Commercial Bank (ADCB Bank) and Newgen awarded the “Best Digital Transformation Implementation” at the Asian Banker Middle East and Africa Regional Awards 2020

Diversification continues across Verticals and Geographies

Q3 FY21 Revenue Split by Segment

Q3 FY21 Revenue Split by Vertical

Q3 FY21 Revenue Split by Geography

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APAC (Ex‐
Implementa Sale of Healthcare Others India)
tion & 13%
Products 8% 7%
Scanning
20% India
26% Insurance 32%
6%
BPO/IT
4%
USA
Govt/ PSUs 30%
SaaS ATS/AMC
10% Banking
7% 21%
65%
EMEA
Support
25%
26%
COPYRIGHT 2020, NEWGEN SOFTWARE 15
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Debtors Days

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Debtor Days (Based on Net Debtors) Debtor Days (Based on Gross Debtors)
(INRm)
(INRm)
150 144 days
120 days
116 days 2,666
110
100
95 days
2,181
90 2,146
1,723
70 50
50
30 ‐
Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2020
Debtor Days Net Trade Receivables (INR Mn) Debtor Days Gross Trade Receivables (INR Mn)
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Disclaimer

Thank you

www.newgensoft.com

For any Investor Queries please contact:

Deepti Mehra Chugh Head – Investor Relations Phone: +91 11 46 533 200 Mail : [email protected]

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)	Q3 FY 2021	Q3 FY 2020	Q2 FY 2021	9M FY 2021	9M FY 2020
Revenue
Revenue from operations	1,855.1	1,849.5	1,550.1	4,726.4	4,699.1
Other income	35.2	40.4	30.3	104.7	117.9
Total revenue	1,890.4	1,889.9	1,580.4	4,831.1	4,817.1

Expenses
Employee benefits	830.9	889.0	727.3	2,338.7	2,578.7
Finance costs	22.0	22.6	7.9	48.0	74.4
Depreciation and amortisation	44.1	48.8	48.8	150.7	146.2
Other expenses	335.9	602.6	411.7	1,132.5	1,593.9
Total expenses	1,232.9	1,563.0	1,195.7	3,669.9	4,393.2

Profit before tax	657.5	326.9	384.6	1,161.2	423.8

Tax expenses
Current tax	203.2	92.7	124.4	392.0	152.7
Deferred tax (credit)/charge	100.1	‐5.5	‐31.9	31.7	‐41.5
Profit after tax for the year	354.2	239.6	292.1	737.5	312.7

Other comprehensive income/(loss) for the year, net of income tax	7.5	15.1	‐7.8	15.4	15.4

Total comprehensive income for the year	361.7	254.7	284.3	752.9	328.1

Earnings per equity share (face value of Rs. 10 per share)
Basic earning per share	5.12	3.48	4.23	10.67	4.55
Diluted earning per share	5.08	3.46	4.19	10.59	4.51

PRESS RELEASE

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Newgen Software Reports Revenues of Rs 185.5 cr up 20% QoQ and Net Profit of Rs 35.4cr in Q3 FY’21, up 21% QoQ

New Delhi, India – 20 January 2021

The management of Newgen Software Technologies Ltd. announced results for the quarter ended 31 December 2020 at its Board Meeting held on 20 January 2021.

Speaking about the results, Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said – “Q3 has always been an important quarter for us and we are extremely happy to deliver another robust quarter, maintaining the business momentum. PostCOVID, wee have witnessed a balanced growth across most of our key geographies including India, US and APAC region.

We are happy with our customers' expanded use of our platform as we continue to get significant incremental business from existing customers. Our subscription based revenues, expecially SaaS/ Cloud are growing at a healthy rate. We have also witnessed a substantial uptick in new logo acquisitions and have added 11 logos during the quarter.

Combating the uncertain environment, we have maintained strong operating margins as well as cash generation from operations.

In the new normal, we see good demand environment across all key industry segments. BPM and ECM are important elements of most of the industry transformation deals. At Newgen, in 2021, we are now ready to make deep investments on various fronts across technology and sales and marketing for long-term growth.

Key Consolidated Financial Highlights (Q3 FY’21)

Revenue from operations (Consolidated) at Rs 185.5 crores as compared to Rs 155.0 crores in Q2 FY’21 (up 20% QoQ, 0.3% YoY).

Subscription revenues (ATS/AMC and Cloud) were at Rs 51.2 crores witnessed strong growth. Annuity revenue streams (ATS/AMC, Support, and Cloud/SaaS) were at Rs 100.5 crores
Revenue from Sale of Products/License were at Rs 36.4 crores, up 38% QoQ
Implementation & digitization revenues were at Rs 48.6 crores, up 58% QoQ

EBIDTA up by 92% YoY at Rs 68.8 crores compared to Rs 36.0 crores in Q3 FY’20.

Profit after tax up by 48% YoY at Rs 35.4 crores from Rs 24.0 crores in Q3 FY’20 driven by cost rationalisations.

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Key Consolidated Financial Highlights (9M FY’21)

Revenue from operations (Consolidated) at Rs 472.6 crores as compared to Rs 470.0 crores in 9M FY’20, up 1% YoY.

Subscription revenues (ATS/AMC and Cloud) were at Rs 148.0 crores, up 22% YoY. Annuity revenue streams (ATS/AMC, Support, and Cloud/SaaS) at Rs 285.3 crores, up 5% YoY
Revenue from Sale of Products/License were at Rs 83.6 crores  Implementation & digitization revenues were at Rs 103.7 crores
EBIDTA up by 138% YoY at Rs 125.5 crores compared to Rs 52.7 crores in 9M FY’20. Profit after tax up by 136% YoY at Rs 73.7 crores from Rs 31.3 crores in 9M FY’20. Net cash generated from operating activities at Rs 167.6 crores for 9M FY’21, compared to Rs 44.7 crores for 9M FY’20

Key Business Highlights (Q3 FY’21)

Newgen positioned as a Visionary in Gartner Magic Quadrant for Content Services Platforms, Michael Woodbridge et al., November 16, 2020*
Newgen granted a patent for an invention entitled “Remote Email Access Through Short Message Service (SMS) by the Indian Patent Office, Chennai for a term of 20 years commencing from February 16, 2010. Newgen has filed 44 patents till date, out of which 17 have been granted in India and the US
11 New Customer Logos addition in the Quarter, some notable successes include: o Four new logos in the Americas region in the Banking and Financial services domain o Strategic win for delivery & implementation of Newgen ECM and BPM solution for a unit of the Government of India for streamlining the collection, processing & dissemination of data to generate meaningful information for analysis
Mid-sized project for a full-service Retail and SME (small and medium sized enterprises) Bank in the UK
Accelerated performance in Banking & Financial Services, Government/PSU, and Insurance verticals with increased demand for digital transformation initiatives in these sectors. During the quarter, we received two large transformational deals from our existing customers – a leading private sector bank in India and a leading small finance bank.

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Key Awards:

Fidelity Bank and Newgen have been awarded the “ Best Self-Service Banking Technology Implementation” at the Asian Banker Middle East and Africa Regional Awards 2020.

Bank Muscat and Newgen were recognized for the “Best Lending Implementation in the Middle East” at The Asian Banker Middle East and Africa Awards 2020.

Abu Dhabi Commercial Bank (ADCB Bank) and Newgen have been awarded the “ Best Digital Transformation Implementation” at the Asian Banker Middle East and Africa Regional Awards 2020

*Authored by Michael Woodbridge, Marko Sillanpaa, Lane Severson 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 cloud-based 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.

time to time byor on behalf of the company.
Media Contact:		InvestorContact:
Asif Khan [email protected]		Deepti Mehra Chugh [email protected]

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Newgen Software Technologies Limited Investor Presentation 2021

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