SoftTech Engineers Limited — Investor Presentation 2024

Feb 28, 2024

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Date: February 28, 2024

To,

National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, C-1, Block – G Floor 25, Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Bandra (East), Mumbai – 400051 Mumbai – 400001 Symbol: SOFTTECH Scrip Code: 543470

- Subject: Investor Presentation February 2024.

Ref: Reg. 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Dear Sir/ Madam,

With reference to the above-captioned subject, please find herewith, enclosed the Investor Presentation by the Company. The aforesaid Investor Presentation is also being disseminated on Company's website at https://www.softtech-engr.com/

This is for your information and records.

Thanking you.

Yours Sincerely,

For SoftTech Engineers Limited

Digitally signed by SHALAKA SATISH KHANDELWAL DN: c=IN, st=Maharashtra, SHALAKA 2.5.4.20=0ff52ac746976b289e76b59faf4c2c77a579869546f239207296924c081dfadb, postalCode=411041, street=FLAT NI D 1 902 GANGA BHAGYODAY SINHAGAD ROAD NEAR MANIBAUG PETROL PUMP SATISH PUNE CITY, pseudonym=a3f3c8b1a309141bf53ca4a8e87f6505, serialNumber=c5a400455bb9bb1178c59c80eca2f9d KHANDELWAL 073b1d9c24f53ed346dd20b5d646eb970, o=Personal, cn=SHALAKA SATISH KHANDELWAL Date: 2024.02.28 13:22:12 +05'30'

Shalaka Khandelwal Company Secretary

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Investor Presentation February 2024

Disclaimer

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This presentation and the accompanying slides (the “Presentation”), have been prepared by SoftTech Engineers Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe to any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

Certain statements in this presentation concerning our future growth prospects are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures, and general economic conditions affecting demand/supply and price conditions in domestic and international markets. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable. This Presentation may not be all-inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. The Company does not make any promise to update/provide such a presentation along with results to be declared in the coming quarters and years.

Q3FY24 Earnings Presentation

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Table of Contents

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|||
|---|---|
|5-13|Company Overview|
|15-21|Q3 & 9MFY24 Performance|
|23-27|Business Overview|
|29-34|Historical Performance|
|36-39|
|Industry Overview|

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Q3FY24 Earnings Presentation

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Company Overview

SoftTech – Dominant Civil-Tech Product Company

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Creating cutting-edge SaaS products for the architecture, engineering, and construction (AEC) sectors with over 80% of market share in India in its domain

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Established in 1996, 25+ years in AEC Industry

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Presence across US, UK, Middle East and Singapore

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7+ products & solutions 20,000+ License users 500+ Employee; expertise in product R&D ISO Certified

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18+ Indian state governments
600+ Serving clients
Listed on BSE & NSE Main
Board in 2022
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Q3FY24 Earnings Presentation

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25 years of Developing Intellectual Property

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Solutions Monetized & IP Sold Current Solution Portfolio
1996 2000 2007 2008 2009 2019 2020 2022 2023 Future
•Green Building
Visibility in
Permits
Overseas
•Energy
Market in
Management
terms of
Solutions
Revenue
•IoT based Central
Water
Management
STRUDS AutoDCR OPTICON RuleBuddy System
Launch of Civit
Solution Suite
SEPL-ESRGSR PWIMS BIMDCR
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Q3FY24 Earnings Presentation

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Civit Platform – Full Stack Solution for AEC

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All-in-one AI-powered application suite for Government, Architects, Builders/Developers and Contractors.

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PLANNING
Digital twin related solution to help visualize and
direct tactile interaction with assets as well as physical
intelligence
COMMON DATA &
INTELLIGENCE
CLOUD
PLATFORM
Integrated business and construction solutions for PROCUREMENT
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Automated AI-powered accurate and fast plan compliance check and variance reporting solution

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Integrated business and construction solutions for
developers and contractors
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Permit management and compliance validation solution

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Public infrastructure work management solution

Q3FY24 Earnings Presentation

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Presence Across Value Chain

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Catering to all Aspects of the Real Estate, Construction, and Infrastructure Industry.

Public Sector Infrastructure/Real Architects/C Government Contractors Companies Estate Companies onsultants CivitPERMIT

CivitPLAN CivitBUILD

CivitINFRA

CivitOPERATE

Energy & Sustainability Services

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Q3FY24 Earnings Presentation

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Dominant India Presence – Going Global

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Harnessing the market potential within the nation and worldwide.

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Jammu MC
(AutoDCR)
Uttarakhand PWD
Punjab PWD
(PWIMS)
(PWIMS)
Ghaziabad
Development
Jaipur Development
Authority
Authority (AutoDCR)
(PWIMS)
PWD West Bengal
(PWIMS)
Gujarat State Order
(AutoDCR) Mizoram PWD
(PWIMS)
Mumbai Municipal
Corporation Jharkhand State order (AutoDCR)
(AutoDCR) MPUIIP (AutoDCR)
Pune Municipal Corporation
(AutoDCR) Telangana State Govt order
(AutoDCR)
Andhra Pradesh
MIDC (AutoDCR & PWIMS)
state order (AutoDCR)
Chennai Municipal
Kerala State Order (AutoDCR)
Corporation (AutoDCR)
Municipal/local
order
State wide order
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USA UK
Establishment in Place Strategic account in
and POC in progress Finland secured with
partner
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Singapore
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Middle
East
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Few strategic accounts Few strategic accounts established. opened in EMEA. Structured expansion Establishment in Place - plan in motion Team Hired

Q3FY24 Earnings Presentation

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Profit Driven Growth Strategies

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Our strategy is supported by three pillars - scale up, innovation and transformation

Make Tech

Civit Suite –Plan, Permit , Build, Infra Civit OPERATE Civit CORE BtrLyf – Building Energy Management

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Integrate/Grow Current Plays

Scale SoftTech Globally Grow all units with internal portfolio projects as well as external partnerships, e.g. Blackstone

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Merge, Acquire and Scale

Merge:

Civit holds the key to built environment data lake by being the CDE for a unified platform and having sufficient global presence at this stage for global SaaS selling. Key partners entities would be merged or acquired as needed for setting up growth plans/targets.

Buy/Use Tech

Build Services Capability

Scale:

Autodesk Suite – BIM 360, Forge Dassault Systems - 3D Experience IES - Operational DT

Build service and with support team in India to support SaaS delivery as well as take on project advisory or associated services

Integrated sales and marketing effort can quickly start adding users to each platform to build revenue, margins and thus future cash flows for much higher overall valuation. Acquire missing links where needed

Q3FY24 Earnings Presentation

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Strategic Investment Framework

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Comprising of Annuity & Pay Per Use
Diversified Revenue Mix
Model
Innovative Products & customized for
Niche Products & Services
AEC space
What Sets us Apart Strategic partnerships with tech
Collaborating with Latest
giants to deliver cutting edge
Technology
products & services
Penetrating domestic & international
Expanding Footprint
regions to cater to diverse markets
Customer Centric Delivery Customizations according to
Model customer’s needs
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Q3FY24 Earnings Presentation

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Technocrat Leadership

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Vijay Gupta
Founder, Chairman & MD
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IIT Mumbai alumnus, firstgeneration entrepreneur. 29+ years' experience in CAD/CAE software development.

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Sridhar Pillalamarri
Independent Director
B.Tech (IIT Kharagpur),
M.Tech (IIT Powai). 30+ years
of management experience
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Priti Gupta
Whole Time Director
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Pratik Patel
Whole Time Director
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With 12+ years' experience in business processes and management. Oversees training, HR & Admin operations.

10+ years of experience of handling managerial assignments in software dev and real estate business

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Sundararajan Srinivasan
Independent Director
IIT Bombay Master's, 31 years
of global innovation in
computing, communication,
and control.
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Dr. Rakesh K Singh
Independent Director
Post Grad Physics (Pune
Univ.), Comp Science & Engg
(IIT Mumbai). 30+ years exp in
Bigdata, Machine Vision etc
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Q3FY24 Earnings Presentation

12

Roadmap to 2026 – 3x in 3 years

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Leadership in BIM Based cloud Permit system in the world Create No. 1 integrated AEC vertical platform connecting Government, Private Enterprises, & Citizens Expand into various geographies specifically 25 counties & cities in US Reach $25mn Annual Topline with 40%+ EBITDA Margin

Q3FY24 Earnings Presentation

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Q3 & 9MFY24 Performance

Q3 & 9MFY24 Performance Highlights

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Domestic Business

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Steady progress towards Recurring Model from Traditional Revenue Model in line with the vision of the Company

Strategic Collaborations

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• Converted Share Warrants allotted to Florintree LLP for raising growth capital. They now hold 15.6% stake in the company

• Converted Compulsory Convertible Debentures allotted to East India Udyog Limited. They now hold 10.65% stake in the company

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International Business

Incorporated wholly owned subsidiary in UK called SoftTech Engineers Digital Ltd for penetrating the international markets

Penetrating Newer Markets

• Creating Sales and Implementation Network in overseas regions

• Creating Strategic Partnerships / Business Arrangements to sell products and services to regions managed and operated by Subsidiaries

Q3FY24 Earnings Presentation

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Q3 & 9MFY24 Financial Snapshot

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Revenue

• Standalone Revenue stood at Rs.1,836 lacs; up 3% YoY in Q3FY24

• In 9MFY24, standalone revenue grew by 19%YoY to Rs. 5,588 lacs

Profit

• Standalone PAT was Rs.183 lacs ; PAT margin stood at 10% in Q3FY24

• In 9MFY24, PAT stood at Rs. 483 lacs with PAT margin at 8%

EBITDA

• Standalone EBITDA was Rs.614 lacs; EBITDA Margin stood at 33% in Q3FY24

• In 9MFY24, EBITDA stood at Rs. 1,814 lacs with EBITDA margin at 32%

Order Book

• ₹133.57 Cr Orderbook in Q3FY24

• ₹144.49 Cr Pipeline (in India)

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Q3FY24 Earnings Presentation

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Q3FY24 Financial Performance

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Revenue from Operations

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1,836
1,775
Q3FY23 Q3FY24
1,848
1,775
Q3FY23 Q3FY24
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EBITDA & EBITDA Margin (%)

PAT & PAT Margin (%)

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614 183
561 171
32% 33% 10% 10%
Q3FY23 Q3FY24 Q3FY23 Q3FY24
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540
494
30%
27%
Q3FY23 Q3FY24
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140
61
8%
3%
Q3FY23 Q3FY24
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(₹ in Lacs unless otherwise specified)

Q3FY24 Earnings Presentation

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9MFY24 Financial Performance

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EBITDA & EBITDA Margin (%)

Revenue from Operations

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5,588 1814
1477
4,706
31% 32%
9MFY23 9MFY24 9MFY23 9MFY24
5,641
1549
1430
4,706
30%
27%
9MFY23 9MFY24 9MFY23 9MFY24
Standalone
Consolidated
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PAT & PAT Margin (%)

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483
427
9%
8%
9MFY23 9MFY24
348
209
7%
4%
9MFY23 9MFY24
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(₹ in Lacs unless otherwise specified)

Q3FY24 Earnings Presentation

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Quarterly Revenue Mix

Nature of Revenue Mix

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939
921
897
854
Q3FY23 Q3FY24
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Product Wise Revenue Breakup

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376
380
65
172
1,395
1,222
Q3FY23 Q3FY24
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AutoDCR PWIMS Others
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One Time License Model Recurring Model

(Standalone nos. in ₹ in Lacs)

Q3FY24 Earnings Presentation

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Quarterly Standalone Income Statement

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Particulars (₹ Lacs)	Q3FY24	Q3FY23	YoY	9MFY24	9MFY23	YoY	FY23	FY22	YoY
Revenue from Operations	1,836	1,775	3%	5,588	4,706	19%	6,534	5,746	14%
Total Expense	1,222	1,214	1%	3,773	3,229	17%	4,407	4,119	7%
EBITDA	614	561	10%	1,814	1,477	23%	2,128	1,627	31%
EBITDA Margin (%)	33%	32%	--	32%	31%	--	33%	28%	---
Other Income	62	38	62%	173	133	30%	171	197	-13%
Depreciation & amortization expenses	324	260	25%	992	765	30%	1,046	764	37%
Finance Cost	106	109	-3%	346	274	26%	392	286	37%
Profit Before Tax	246	230	7%	649	571	14%	861	774	11%
Total Taxes	63	59	8%	167	144	15%	281	196	43%
Profit After Tax	183	171	7%	483	427	13%	580	578	0%
PAT Margin (%)	10%	10%	--	8%	9%	--	9%	10%	---
Diluted EPS (₹)	1.52	1.53	-1%	4.47	4.10	9%	5.48	5.89	-7%

Q3FY24 Earnings Presentation

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Quarterly Consolidated Income Statement

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Particulars (₹ Lacs)	Q3FY24	Q3FY23	YoY	9MFY24	9MFY23	YoY	FY23	FY22	YoY
Revenue from Operations	1,848	1,775	4%	5,641	4,706	20%	6,540	5,746	14%
Total Expense	1,354	1,235	10%	4,092	3,277	25%	4,602	4,219	9%
EBITDA	494	540	-9%	1,549	1,430	8%	1,938	1,527	27%
EBITDA Margin (%)	27%	30%	--	27%	30%	--	30%	27%	---
Other Income	61	28	118%	165	102	61%	143	186	-23%
Depreciation & amortization expenses	325	260	25%	993	765	30%	1,046	764	37%
Finance Cost	106	109	-3%	346	274	26%	393	287	37%
PBT	124	199	-38%	376	493	-24%	643	661	-3%
Total Taxes	63	59	8%	167	144	15%	281	196	43%
Profit After Tax	61	140	-57%	209	348	-40%	362	465	-22%
PAT Margin (%)	3%	8%	--	4%	7%	--	6%	8%	---
Diluted EPS (₹)	0.58	1.27	-54%	2.14	3.54	-40%	3.78	4.88	-23%

Q3FY24 Earnings Presentation

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Business Overview

Customer Centric Delivery Model

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With deep domain expertise in construction management software, SoftTech provides tailored solutions for business success.

Collaboration with Latest Tech

Leverage on several partnerships with industry leaders to bring the best-in-class solutions 1 4 2 Sustainable Services Unparalleled advantage in serving the built 3 environment driven by our deep understanding of the domain

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Customized Products Customize and deploy Civit Suite of solutions based on the requirements of Clients

Deep Domain Expertise

Cloud and IT expertise to strategize, plan, develop/implement and maintain any technology solution that will aid in Client’s goals

Q3FY24 Earnings Presentation

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Robust Revenue Model

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SaaS (Login based) - $ per user
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SaaS (Use based) - $ per permit
&
$ per Sq. Ft annual review
charges
SaaS (Login Based) - Per module
per user/month
RuleBuddy
&
Bundle price per user/month
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Overseas Revenue Model

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SaaS (Login based) – One time login & ₹ per Sq. Ft approval

SaaS (Use based) – Fixed Revenue & ₹ per Sq. Ft annual review charges SaaS (Login Based) – Depending upon the area ₹ per Sq. Ft

India Revenue Model

Q3FY24 Earnings Presentation

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Services Portfolio

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Q3FY24 Earnings Presentation

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Rising Global Expansion and Technology Alliances

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TECHNOLOGICAL PARTNERS

CENTER OF EXCELLENCE

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We are passionately dedicated to empowering global clients with the latest technology.

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Q3FY24 Earnings Presentation

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Facilitating Growth through Mentoring & Scaling Up via Inorganic Acquisitions

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SoftTech undertook Inorganic Acquisitions by partnering with Domain Experts

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Hybrid Corporate program to support AEC startups. Incubated 12 AEC startups, evaluated over 300+, arranged 3 Bootcamps of over 40 start ups each. It holds great growth potential to drive innovation.

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Tech partners and investors in Btr Lyf Solution, an AI-based cloud platform offering Building Energy Management Solutions. Based in Singapore, with investments from Singapore Govt. and HNIs

Q3FY24 Earnings Presentation

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Historical Performance

Annual Revenue Mix

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Nature of Revenue Mix Product Wise Revenue Breakup

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3,454
3,326
3,209
2,373
2,292
1,275
FY21 FY22 FY23
One Time License Model Recurring Revenue
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1,197
1,038
1,263
470
589
581
4,237 4,074
2,988
FY21 FY22 FY23
AutoDCR PWIMS Others
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(Standalone nos. in ₹ in Lacs)

Q3FY24 Earnings Presentation

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Annual Financial Charts

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PAT & PAT Margin (%)

EBITDA & EBITDA Margin (%)

Revenue from Operations

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Standalone
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6534
5746
4157
FY21 FY22 FY23
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33%
29%
28%
2128
1627
1218
FY21 FY22 FY23
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578 580
10%
378
9% 9%
FY21 FY22 FY23
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6540
5746
4157
FY21 FY22 FY23
Consolidated
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465
30%
27%
26% 8% 362
1938
1527 258
6% 6%
1097
FY21 FY22 FY23 FY21 FY22 FY23
(₹ in Lacs unless otherwise specified)
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Q3FY24 Earnings Presentation

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Standalone Annual Income Statement

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Particulars (₹ Lacs)	FY21	FY22	FY23
Revenue from Operations	4,157	5,746	6,534
Total Expense	2,940	4,119	4,407
EBITDA	1,218	1,627	2,128
EBITDA Margin (%)	29%	28%	33%
Other Income	102	197	171
Depreciation & amortization expenses	550	764	1046
Finance Cost	239	286	392
PBT	531	774	861
Total Taxes	152	196	281
Profit After Tax	378	578	580
PAT Margin (%)	9%	10%	9%
Diluted EPS (₹)	3.99	5.89	5.48

Q3FY24 Earnings Presentation

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Consolidated Income Statement

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Particulars (₹ Lacs)	FY21	FY22	FY23
Revenue from Operations	4,157	5,746	6,540
Total Expense	3,060	4,219	4,602
EBITDA	1,097	1,527	1,938
EBITDA Margin (%)	26%	27%	30%
Other Income	102	186	143
Depreciation & amortization expenses	550	764	1,046
Finance Cost	239	287	393
PBT	410	661	643
Total Taxes	152	196	281
Profit After Tax	258	465	362
PAT Margin (%)	6%	8%	6%
Diluted EPS (₹)	2.90	4.88	3.78

Q3FY24 Earnings Presentation

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Standalone Balance Sheet

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Balance Sheet (₹ Lacs) FY21 FY22 FY23	Balance Sheet (₹ Lacs) FY21 FY22 FY23
Assets	Equity
PP&E 413 475 402	Equity Share Capital 947 1,015 1,016
Right-of-Use Assets 469 357 823	Other Equity 6,291 7,818 9,902
Intangible Assets 1,893 2,745 3,546	Total Equity 7,237 8,833 10,917
Investments & Other Financial Assets 1,282 1,370 2,248
Income Tax Assets (net) 144 275 292	Non-Current Liabilities
Deferred tax assets (net) 106 98 95	- Borrowings 1,965 1,611 881
Other Non-Current Assets 219 235 36	- Lease Liabilities 355 240 723
Total Non-Current Assets 4,525 5,555 7,443	- Other Financial Liabilities 13 39 -
	Provisions 111 95 117
Current Assets	Total Non-Current Liabilities 2,443 1,985 1,721
-Trade Receivables 3,337 2,908 2,608
-Cash & Cash Equivalents 11 63 62	Current Liabilities
Investments & Other Financial Assets 518 586 1,063	- Borrowings 1,244 1,498 3,117
Other Current Assets 3,925 4,586 5,717	- Lease Liabilities 96 115 82
Total Current Assets 7,790 8,142 9,450	- Trade Payables 836 911 577
	Other Current Liabilities 402 289 348
	Provisions 57 64 72
	Current Tax Liabilities (Net) - - 58
	Total Current Liabilities 2,635 2,878 4,255
Total Assets 12,316 13,697 16,893	Total Equity & Liabilities 12,316 13,697 16,893

Balance Sheet (₹ Lacs) FY21 FY22 FY23	Balance Sheet (₹ Lacs) FY21 FY22 FY23
Assets	Equity
PP&E 413 475 402	Equity Share Capital 947 1,015 1,016
Right-of-Use Assets 469 357 823	Other Equity 6,291 7,818 9,902
Intangible Assets 1,893 2,745 3,546	Total Equity 7,237 8,833 10,917
Investments & Other Financial Assets 1,282 1,370 2,248
Income Tax Assets (net) 144 275 292	Non-Current Liabilities
Deferred tax assets (net) 106 98 95	- Borrowings 1,965 1,611 881
Other Non-Current Assets 219 235 36	- Lease Liabilities 355 240 723
Total Non-Current Assets 4,525 5,555 7,443	- Other Financial Liabilities 13 39 -
	Provisions 111 95 117
Current Assets	Total Non-Current Liabilities 2,443 1,985 1,721
-Trade Receivables 3,337 2,908 2,608
-Cash & Cash Equivalents 11 63 62	Current Liabilities
Investments & Other Financial Assets 518 586 1,063	- Borrowings 1,244 1,498 3,117
Other Current Assets 3,925 4,586 5,717	- Lease Liabilities 96 115 82
Total Current Assets 7,790 8,142 9,450	- Trade Payables 836 911 577
	Other Current Liabilities 402 289 348
	Provisions 57 64 72
	Current Tax Liabilities (Net) - - 58
	Total Current Liabilities 2,635 2,878 4,255
Total Assets 12,316 13,697 16,893	Total Equity & Liabilities 12,316 13,697 16,893

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Consolidated Balance Sheet

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Balance Sheet (₹ Lacs) FY21 FY22 FY23	Balance Sheet (₹ Lacs) FY21 FY22 FY23
Assets	Equity
PP&E 413 476 403	Equity Share Capital 947 1,015 1,016
Right-of-Use Assets 469 357 823	Other Equity 6,012 7,425 9,277
Intangible Assets 1,893 2,745 3,546	Total Equity 6,959 8,440 10,293
Investments & Other Financial Assets 985 1,018 1,710
Income Tax Assets (net) 144 275 292	Non-Current Liabilities
Deferred tax assets (net) 106 98 95	- Borrowings 1,965 1,649 881
Other Non-Current Assets 219 235 36	- Lease Liabilities 355 240 723
Total Non-Current Assets 4,229 5,204 6,905	- Other Financial Liabilities 13 - -
	Provisions 111 95 117
Current Assets	Total Non-Current Liabilities 2,443 1,984 1,721
-Trade Receivables 3,337 2,908 2,615
-Cash & Cash Equivalents 38 75 86	Current Liabilities
Investments & Other Financial Assets 515 578 961	- Borrowings 1,244 1,538 3,123
Other Current Assets 3,925 4,586 5,717	- Lease Liabilities 96 115 82
Total Current Assets 7,814 8,147 9,379	- Trade Payables 840 919 587
	Other Current Liabilities 404 291 348
	Provisions 57 64 72
	Current Tax Liabilities (Net) - - 58
	Total Current Liabilities 2,641 2,927 4,270
Total Assets 12,043 13,351 16,284	Total Equity & Liabilities 12,043 13,351 16,284

Q3FY24 Earnings Presentation

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Industry Overview

US Construction market size is approx. $1.6 trillion, growing at 6% CAGR till 2026

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Key Numbers & Insights

• Global construction industry size is ~ $10 trillion (2022)[ 1]

• Expected to grow to $13.9 trillion by 2037 with over 51% accounted from China, India, and United States[ 1]

• New construction in Year 2021 is $1.6 trillion (7% of US GDP) and is expected to grow at ~ 6% YoY till 2026[2]

• Three major segments in the construction industry – Non-Building (17% share), Non-Residential (34% share), and Residential (49% share)[ 2]

• Residential and Non-Building segments growing at 7% YoY in the next 5 years.[ 2]

• The top 5 states in terms of construction spending are California, Texas, Florida, New York and Illinois contributing > 50% of the total construction spending. The growth rate in these states is ~ 5 to 12%[ 2]

• The average gross profit margin in the construction industry was around 28% Q3 of 2022 and typical net profit margins are around 4-6%[3]

• The number of workers in the construction market is ~ 8.0 million (Year 2023)[4]

New construction put in place in the United States from 2014 to 2021, with forecast until 2026[2 ] (Values in US$ Millions)

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----- Start of picture text -----

Non-building - Power facilities, highways, sewage, water supply,
and conservation work
Non-Residential - Lodging, offices, commercial buildings, health
2,500 care, and education
Residential - Single-family, multi-family housing, and home
improvements
2,000
1,500
1,000
500
0
2014 2015 2016 2017 2018 2019 2020 2021 20222023202420252026
----- End of picture text -----*

• 1Global Construction Futures, Oxford Economics 2023. The Oxford Economics estimates the US construction market to be around USD 1.4 trillion. However, the US construction market size was considered based on US specific reference 2US Census Bureau Data

3https://www.levelset.com/blog/us-construction-statistics-you-need-to-know/

• 4US Bureau of Labor Statistics. https://fred.stlouisfed.org/series/USCONS

Q3FY24 Earnings Presentation

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Technology adoption is low relative to other industries, but growing fast

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Key Numbers & Insights

• Gaps in adoption of digital solutions for several aspects within construction management

• According to its 2022 10-k filings[1] , Procore believes that the construction management software market is evolving rapidly, but it is still in its early stages.

• Many construction companies still rely on manual paper-based methods instead of using technology

Low Digital Capabilities[2]

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Formal Software in Place for the following[3]

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----- Start of picture text -----

Project Financials
68% 17% 15%
(e.g. change orders,
forecasting budgets, sub-
contractors and client invoices
etc.)
Project Management 58% 26% 16%
excluding project financials. eg
EFIs, submittals, drawing
markups, etc)
55% 30% 15%
Safety Risk Management
Equipment Management 48% 35% 18%
Field/Labor Management 47% 36% 16%
Yes No I Don't Know/Unsure
----- End of picture text -----

• 1Procore Form 10-k US SEC December 31, 2022

• 2SmartMarket Brief: Digital Capabilities in US Civil Construction, Dodge Data & Analytics and Bentley Systems, Year 2020

• 32020 FMI Industry Report

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Technology spend in construction industry shows huge head room to

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grow

Key Numbers & Insights

• Multiple data sources indicate the overall IT spend for Architecture, Engineering, & Construction (AEC) companies is pegged at 0.25-3% of revenue

• According to Gartner the AEC software spend is 1-2% vs. 3-5% avg. across other industries[1]

• According to JB Knowledge, the IT spend in over 90% of the construction companies in the United States varied between 0.25% to 3%[2]

• According to McKinsey, an estimated $50 billion was invested in AEC tech between 2020 to 2022, 85 percent higher than the previous three years[3]

• According to Gartner, approximately 20%[4] of the IT spend corresponds to software

• Approx. 35-45% of this software spend corresponds to construction management software

Percentage of Annual Sales Volume Spent on IT

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----- Start of picture text -----

0.25% to <1.0% 33%
1% 25%
2% 17%
3% 16%
>3% 9%
0% 5% 10% 15% 20% 25% 30% 35%
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• 1‘Gartner top strategic technology trends for 2022’, Gartner, October 2021

• 2JB Knowledge, The annual construction technology report 2021 https://contechreport.com/

• 3From start-up to scale-up: Accelerating growth in construction technology, McKinsey & Company May 2023

Worldwide IT Spending Forecast (millions of USD)[4]

Construction management	2023 Spending 2023 Growth (%) 2024 Spending 2024 Growth (%)
	Data Center Systems 217,880 -1.5 235,530 8.1
	Devices 700,023 -8.6 748,150 6.9
	Software 922,745 13.7 1,052,956 14.1
	IT Services 1,420,905 8.8 1,585,373 11.6
	Communications Services 1,461,662 2.7 1,517,877 3.8
	Total 4,723,215 4.3 5,139,886 8.8
	Category Percentage Cost Range
	BIM and Design 15% - 25%
	Project Management, Bid, and Scheduling 15% - 25%
	Estimating and Takeoff Software 10% - 20%
	Quality & Field Management 5% - 10%
	Safety and Compliance 5% - 10%
	Document Management and Collaboration Tools 5% - 10%
	Accounting and Financial Software 10% - 15%
	Human Resources and Workforce Management Software 5% - 10%
	Others 2% - 5%

• 4https://www.gartner.com/en/newsroom/press-releases/2023-07-19-gartner-forecasts-worldwide-it-spending-to-grow-4-percent-in-2023

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Construction Industry in India

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The construction industry in India is one of the fastest growing in the world and is positioned with China, USA, UK, and Indonesia in the top five global construction markets.

India's Real Estate Market (US $ Billion)

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1000
650
120
2017 2025F 2030F
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Market size of Indian IT industry (US$ billion)

IT Spends in India (US$ billion)

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----- Start of picture text -----

24.38 24.45 24.7
19.93
22.04
20.57
19.21
14.36
12.63
11.25
6.96
2021 2022 2023
H12021 2025
Software IT Services Communication Services
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According to international reports, this industry is expected to touch $1 tn by 2030. Despite COVID-19 & geopolitical challenges, the sector remains the second-largest contributor to India's economy.

In 2022, India invested over $109.6 billion in its information technology sector. Projections suggest that by 2024, this spending will exceed $112 billion. The IT-BPM industry played a crucial role, contributing around 7.4% to the nation's GDP and generating nearly $194 billion in revenue in the 2021 fiscal year.

(*forecasted values)

Source: www.grantthornton.in, www.ibef.org , www.statista.com/

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THANK YOU

Company Contact:

SOFTTECH ENGINEERS Limited Contact: +91 20 67183711 Email: enquiries@softtech-engr.com

Investor Relations Contact:

Tanya Verma Go India Advisors Tanya@GoIndiaAdvisors.com M:+91 97270 30985

Sana Kapoor Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469

Sheetal Khanduja Go India Advisors sheetal@GoIndiaAdvisors.com M:+91 97693 64166

For further information on the company, please visit – https://softtech-engr.com/