Ramco Systems Ltd — Interim / Quarterly Report 2019

Jan 29, 2019

ramco

January 29,2019

National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No:C/I, G Block Bandra Kurla Complex, Bandra (E) Mumbai - 400 051 Scrip: RAMCOSYS

Corporate Relationship Department BSE Ltd., Phiroze Jeejheebhoy Towers Dalal Street, Mumbai - 400 001 Scrip: 532370

Dear Sir,

Resulations. 2015

Further to our intimation dated January 28,2019, regarding investors' call, please find enclosed the gist of the points and the fact sheet discussed in the investors'call.

We request you to kindly take the above on record as required under the provisions of SEBI (LODR) and acknowledge receipt.

Yours faithfully

For RAMCO SYSTEM LIMITED

P R KARTHIC

COMPANY SECRETARY

Encl: As above

Ramco Systems Limited

Corporate Headquarters: 64, Sardar Patel Road, Taramanl, Chennai 600 113, lndia I Tet: +9f 44 2235 4510 / 6653 4OOO, Fax: +91 44 2235 2884 I CIN : L72300TN1997PLC037550 I Reglstered Olîlcei 47, P.S'K. Nagar' Rajapalayam 626 108' lndia

Global Olflces:lndialsingaporelMalaysialChinalHongKonglPhilippineslAustralialDubai lUSAlCanadal United Kingdom I Germany I Switzeland I South Africa I Sudan www.famco,com

Analysts and Investors Call – Debrief – Q3 FY19 (29th January 2019)

Overview

• o Order Booking down by 1%, Revenue up by 5% and a Net Loss in Q3 FY19
• o Focus on Logistics and Global Payroll shows up in the Order Booking
• o Average opportunity size in the funnel is increasing & share of Logistics and Global Payroll in the funnel continues to grow at a steady rate
• o Asia region stands highest in Revenue and Order booking, while muted business in Europe and Americas shows up in Revenue and Order Booking

Cost efficiency

o Other costs for the quarter includes exchange rate fluctuation loss of $1.75M as against gain of $0.88M last quarter. The exchange rates fluctuated adversely in the major currencies dealt by the Company – USD, SGD, AUD and AED. Other costs also include provision for Doubtful Debts of $0.91M and such provision may continue during the year and the year after as well

Unexecuted Order book

o Unexecuted Order Book stands at $168M by end of Q3. Focus stays on accelerating the conversion into revenue by improving on delivery efficiencies

HCM

• o HCM clocked historically highest ever revenue in a quarter, becoming the largest SBU for Q3
• o 70% of new orders in Q3 were from HCM
• o Won an order from one of the ANZ's largest Telecom Operators
• o HCM CAGR is at 42% over a period of 5 years, and 47% without BPO
• o Payroll led HCM offerings continue to garner market share
• o HCM multi country payroll funnel opportunities are increasing at a healthy rate

ERP

• o Muted growth in Core ERP showing up in Revenues
• o Logistics has de-grown due to focus on execution and lower focus on new business

Future Outlook/Focus Areas

• o Focusing on go-lives to accelerate revenue conversion
• o Asia continues to be the largest contributor with new markets (Philippines, Indonesia, Vietnam) and is expected to continue the momentum
• o Stronger bookings and revenue expected in Logistics, while de-growth is expected in Core ERP and Aviation
• o Will consider treating Logistics as a separate SBU from next financial year
• o Pipeline for HCM continues to grow at a good rate, with visibility of few Fortune 100 companies in the pipeline

FACT SHEET AS ON 31ST DECEMBER 2018

CONSOLIDATED INFORMATION
									Figures in USD Million, except where stated otherwise
	Quarter Ended								Nine months Ended		Year Ended
	Dec-18	Sep-18	Jun-18	Mar-18	Dec-17	Sep-17	Jun-17	Mar-17	Dec. 31,	Dec. 31,	Mar.31,	Mar.31,	Mar.31,
									2018	2017	2018	2017	2016 *
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited		Unaudited Unaudited Unaudited Audited $			Audited $	Audited
REVENUE - STREAMWISE
Products	12.11	11.25	10.78	10.02	11.28	9.43	7.18	7.32	34.19	27.89	37.91	30.75	34.21
License	7.55	6.82	6.43	5.58	7.00	5.48	3.53	3.91	20.84	16.01	21.59	16.89	20.85
Recurring	4.56	4.43	4.35	4.43	4.28	3.94	3.66	3.41	13.35	11.88	16.32	13.86	13.36
Services	7.90	7.53	7.85	8.52	8.11	8.58	9.92	9.01	23.28	26.61	35.13	35.54	34.32
BPO	0.73	0.73	0.70	0.69	0.72	0.73	0.70	0.65	2.16	2.15	2.84	2.47	2.13
Other Services ^	7.17	6.80	7.15	7.83	7.39	7.85	9.22	8.35	21.12	24.46	32.29	33.07	32.19
Resale of Material	0.06	0.25	0.39	0.03	0.01	0.01	0.06	0.72	0.69	0.08	0.11	0.95	0.40
TOTAL	20.07	19.03	19.02	18.56	19.40	18.02	17.17	17.05	58.16	54.59	73.15	67.24	68.94
REVENUE - BUSINESS
UNITWISE
ERPHCM	5.849.77	6.048.17	8.995.02	7.347.38	7.496.58	8.655.15	7.854.58	8.583.70	20.7523.15	23.9816.31	31.3223.68	31.8817.19	30.8218.79
Aviation	4.46	4.82	5.01	3.84	5.34	4.22	4.74	4.78	14.27	14.30	18.14	18.18	19.32
TOTAL	20.07	19.03	19.02	18.56	19.40	18.02	17.17	17.05	58.16	54.59	73.15	67.24	68.94
REVENUE - GEOGRAPHYWISE
Americas	4.12	4.67	3.54	2.97	5.08	2.88	3.47	3.25	12.36	11.44	14.42	12.90	12.47
Europe	0.42	0.56	0.47	0.50	0.44	0.60	0.58	0.51	1.45	1.62	2.12	2.25	3.07
APAC	8.21	7.53	8.58	5.50	7.20	7.41	4.54	5.34	24.30	19.14	24.65	20.14	19.93
India	3.92	3.96	4.36	4.88	3.98	4.27	5.48	3.82	12.21	13.72	18.60	18.15	17.70
MEA @	3.40	2.31	2.08	4.71	2.71	2.86	3.10	4.13	7.84	8.67	13.37	13.81	15.77
TOTAL	20.07	19.03	19.02	18.56	19.40	18.02	17.17	17.05	58.16	54.59	73.15	67.24	68.94
BOOKING - BUSINESS
UNITWISE
ERP	6.67	5.81	15.197	6.97	10.35	11.80	14.46	12.10	27.69	36.61	43.58	29.89	NA
HCM	15.82	14.61	4.61	18.87	10.39	10.41	7.00	6.72	35.03	27.79	46.66	34.90	NA
AviationTOTAL	6.6829.17	9.1429.56	5.8025.61	3.3729.21	3.7724.50	3.0625.26	3.6425.10	5.3224.14	21.6384.34	10.4674.87	13.84104.08	21.2386.02	NA-
UNEXECUTED ORDER BOOK #	168.00	161.00	150.49	153.00	139.91	134.28	126.31	115.94	168.00	139.91	153.00	115.94	NA
CUSTOMER METRICS
Revenue from New Customers	38%	27%	30%	33%	33%	18%	13%	30%	32%	22%	24%	24%	35%
(%)
Revenue from Cloud orders (%)	35%	43%	41%	38%	32%	36%	22%	NA	39%	NA	34%	NA	NA
Number of new customers	25	15	24	25	27	18	15	20	64	60	85	120	157
added

* 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.

No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. This fact sheet may not be all inclusive and may not contain all of the information that you may consider material. The information presented or contained in the fact sheet is current as of the date hereof and is subject to change without notice, and its accuracy is not guaranteed. Neither Company nor any of its affiliates, advisors or representatives make any undertaking to update any such information subsequent to the date hereof and shall not have any liability whatsoever (in negligence or otherwise) for any loss arising from the use of this fact sheet or its contents or otherwise arising in connection with this fact sheet.

This fact sheet contains historical information of the Company which should not be regarded as an indication of future performance or results. The fact sheet is given in confidence, and reproduction of this fact sheet, in whole or in part, or disclosure of any of its contents, without prior consent of the Company, is prohibited.