Ramco Systems Ltd — Interim / Quarterly Report 2019

Oct 31, 2018

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Analysts and Investors Call – Debrief – Q2 FY19 (31[st] October 2018)

 Overview

• Order Booking up by 15%, Revenue remains flat and Net Profit down by 46% in Q2 FY19

• Focus on Logistics and Global Payroll shows up in the Order Booking. They make up 59% of the total Order Booking and 43% of total revenue in Q2 FY19

• Average opportunity size in the funnel is increasing & share of Logistics and Global Payroll in the funnel continues to grow at a steady rate

 Cost efficiency

• Wage bill saw an increase on account of headcount and local hiring in US

• Other costs for the quarter includes exchange rate fluctuation gain of $0.88M as against $0.66M last quarter. It also includes provision for Doubtful Debts of $0.95M, which is expected to continue during the year

 Unexecuted Order book

• Unexecuted Order Book stands at $161M by end of Q2. Focusing to accelerate the conversion into revenue by improving on delivery efficiencies

 HCM

• HCM clocked the highest ever revenues in a quarter and becomes the largest LOB for Q2

• Payroll led HCM offerings continue to garner market share

• HCM multi country payroll funnel opportunities are increasing at a healthy rate

• Adding Payroll capabilities in Cyprus, Iran, and Afghanistan

 ERP

• Relatively lower bookings in Core ERP showing up in Revenues

 Future Outlook/Focus Areas

• Currently do not have plans to approach the market for funding; however, have plans for growth through acquisition of payroll firms and if that materializes, may require some debt funding

• BLUE OCEAN: Focus on multi country payroll and Logistics is working well for us, with majority of pipeline from the above areas

• Asia contributed the most in the order booking for the quarter and is expected to continue the momentum

• Artificial intelligence and Augmented reality:

  • Rapid progress towards leveraging Artificial Intelligence and Machine Learning in enterprise applications

  • Focus on moving towards from a passive ERP to Active ERP where systems understand, predict and suggest based on past transactions

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FACT SHEET AS ON 30TH SEPTEMBER 2018

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----- Start of picture text ----- CONSOLIDATED INFORMATIONFigures in USD Million, except where stated otherwiseQuarter Ended Half Year Ended Year EndedSep-18 Jun-18 Mar-18 Dec-17 Sep-17 Jun-17 Mar-17 Dec-16 Sep. 30, Sep. 30, Mar.31, Mar.31, Mar.31,2018 2017 2018 2017 2016 *Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Audited $ Audited $ AuditedREVENUE - STREAMWISEProducts 11.25 10.78 10.02 11.28 9.43 7.18 7.32 6.54 22.03 16.60 37.91 30.75 34.21License 6.82 6.43 5.58 7.00 5.48 3.53 3.91 3.10 13.25 9.00 21.59 16.89 20.85Recurring 4.43 4.35 4.43 4.28 3.94 3.66 3.41 3.44 8.78 7.60 16.32 13.86 13.36Services 7.53 7.85 8.52 8.11 8.58 9.92 9.01 10.26 15.37 18.51 35.13 35.54 34.32BPO 0.73 0.70 0.69 0.72 0.73 0.70 0.65 0.65 1.43 1.43 2.84 2.47 2.13Other Services ^ 6.80 7.15 7.83 7.39 7.85 9.22 8.35 9.61 13.94 17.08 32.29 33.07 32.19Resale of Material 0.25 0.39 0.03 0.01 0.01 0.06 0.72 0.05 0.64 0.07 0.11 0.95 0.40TOTAL 19.03 19.02 18.56 19.40 18.02 17.17 17.05 16.85 38.05 35.18 73.15 67.24 68.94REVENUE - BUSINESSUNITWISEERP 6.04 8.99 7.34 7.49 8.65 7.85 8.58 7.26 14.97 16.49 31.32 31.88 30.82HCM 8.17 5.02 7.38 6.58 5.15 4.58 3.70 4.65 13.26 9.72 23.68 17.19 18.79Aviation 4.82 5.01 3.84 5.34 4.22 4.74 4.78 4.94 9.82 8.96 18.14 18.18 19.32TOTAL 19.03 19.02 18.56 19.40 18.02 17.17 17.05 16.85 38.05 35.18 73.15 67.24 68.94REVENUE - GEOGRAPHYWISEAmericas 4.67 3.54 2.97 5.08 2.88 3.47 3.25 3.50 8.24 6.35 14.42 12.90 12.47Europe 0.56 0.47 0.50 0.44 0.60 0.58 0.51 0.56 1.03 1.18 2.12 2.25 3.07APAC 7.53 8.58 5.50 7.20 7.41 4.54 5.34 5.97 16.08 11.94 24.65 20.14 19.93India 3.96 4.36 4.88 3.98 4.27 5.48 3.82 4.47 8.30 9.75 18.60 18.15 17.70MEA @ 2.31 2.08 4.71 2.71 2.86 3.10 4.13 2.35 4.39 5.96 13.37 13.81 15.77TOTAL 19.03 19.02 18.56 19.40 18.02 17.17 17.05 16.85 38.05 35.18 73.15 67.24 68.94BOOKING - BUSINESSUNITWISEERP 5.81 15.20 6.97 10.35 11.80 14.46 12.10 7.35 21.01 26.26 43.58 29.89 NAHCM 14.61 4.61 18.87 10.39 10.41 7.00 6.72 16.00 19.22 17.40 46.66 34.90 NAAviation 9.14 5.80 3.37 3.77 3.06 3.64 5.32 4.83 14.94 6.70 13.84 21.23 NATOTAL 29.56 25.61 29.21 24.50 25.26 25.10 24.14 28.17 55.17 50.36 104.08 86.02 -UNEXECUTED ORDER BOOK # 161.00 150.49 153.00 139.91 134.28 126.31 115.94 NA 161.00 134.28 153.00 115.94 NACUSTOMER METRICSRevenue from New Customers 27% 30% 33% 33% 18% 13% 30% 31% 29% 15% 24% 24% 35%(%)Revenue from Cloud orders (%) 43% 41% 38% 32% 36% 22% NA NA 42% NA 34% NA NANumber of new customers 15 24 25 27 18 15 20 34 39 33 85 120 157added----- End of picture text -----

• represents the figures publised for the respective period without considering the IND AS adjustments. $ Figures, other than revenue, are unaudited.

Unexecuted orderbook comprises of new orders , renewals, reversals & adjustments for the base foreign currency rates in the current financial year. ^ Other Services also include infrastructure and hosting services.

@ Middle East and Africa (MEA) includes South Africa.

Disclaimer:

This fact sheet has been prepared by Ramco Systems Limited (the “Company”) for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any solicitation or initiation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This fact sheet does not constitute a recommendation by the Company or any other party to sell or buy any securities of the Company.

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