SoftTech Engineers Limited

Result Update Presentation d – H1 FY19 November 2018

This presentation has been prepared by SoftTech Engineers Limited (the "Company") solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. 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.

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Chairman & CEO's Message

Commenting on results, Mr. Vijay Gupta, Chairman & CEO, SoftTech Engineers Limited said:

"It gives me immense pleasure to share with you the performance of our Company for the half year ended 30th September 2018. We have delivered over 40% revenue growth along with 24% EBITDA and 60 % PAT growth. This is mainly on the account of faster execution of orders along with a strong order book. For faster implementation process, we have started outsourcing professional technical consultancy on certain orders. We have also started our overseas expansion in USA & Finland and marketing activities in domestic market to further strengthen our presence, in line with our vision and strategy.

We are proud to share that we are partnering with the Government of India in its mission – "Ease of Doing business" by associating ourselves as a "Smart City Solution Provider" meeting the requirements of the automation in AEC verticals by using our expertise in IT.

Innovation is the key to any business and our products are innovative and developed with the deep domain expertise across the entire value chain in the construction industry. Going forward, our focus is completely towards Architecture, Engineering and Construction (AEC) vertical. We are slowly but confidently making inroads into international markets such as Middle East, African, American and European Countries. Through these ventures and strategic business alliances with key organizations such as Microsoft & Autodesk, we would strengthen our position as a leading enterprise. I would like to thank all our business partners and employees for their invaluable support and belief in us which drives us to deliver a robust performance every year."

Financial Highlights

Half Yearly – Financial Highlights

Rs. Cr	H1 FY19	H1 FY18	Y-o-Y (%)	H2 FY18
Revenue from Operations	29.60	20.63	43.47%	30.91
Raw material	1.88	1.76		2.65
Employee expenses	4.94	4.21		4.16
Professional fees for technical consultants	10.72	5.92		11.02
Other expenses	4.82	2.91		3.68
Total expenditure	22.36	14.81		21.50
EBITDA	7.24	5.82	24.40%	9.41
EBITDA Margin (%)	24.46%	28.21%		30.43%
Other income	0.41	0.25		0.21
Deprecation	2.00	1.94		1.84
Interest	0.88	1.19		1.07
Exceptional item	0.00	0.00		0.00
PBT	4.77	2.93	62.94%	6.70
Tax	1.32	0.81		2.02
PAT	3.45	2.12	63.24%	4.68
PAT Margin (%)	11.67%	10.26%		15.13%
Basic EPS (in Rs.)*	3.87	3.00	29.00%	6.63

Revenue increased mainly due to faster execution of orders and strong order book
EBITDA margin decline mainly on account of below factors:
Overseas expansion
Increased marketing activities in domestic market
Outsourced professional technical consultancy for certain orders to speed up implementation process

• Prepayment of high interest long- term debt led to increased profit

Balance Sheet – As on 30th September 2018

Rs. in Cr	As on 30th Sept-18	As on 31stMar-18
Shareholder's Funds	56.78	37.40
Share capital	9.42	7.05
Reserves & Surplus	47.36	30.35
Non-current liabilities	4.12	5.64
Long-term borrowings	3.49	5.10
Other Long-term liabilities	0.01	0.01
Long-term provisions	0.62	0.53
Current liabilities	15.31	25.43
Short- term borrowings	4.76	4.51
Trade payables	1.48	7.55
Other current liabilities	7.98	13.13
Short-term provisions	1.10	0.24
Total Equity & Liabilities	76.21	68.46

Rs. in Cr	As on 30th Sept-18	As on 31stMar-18
Non-current Assets	21.12	20.28
Property, Plant & Equipment	0.83	1.00
Intangible assets	6.05	7.68
Non-current investments	0.06	0.04
Intangible assets under development	5.76	3.80
Deferred tax assets (Net)	1.00	0.76
Other Non-current assets	6.06	5.71
Long-Term loans & advances	1.35	1.28
Current Assets	55.10	48.19
Current Investments	5.00	0.00
Trade receivables	20.89	21.80
Cash & cash equivalents	0.17	1.27
Short-term loans & advances	1.60	1.58
Other current assets	27.43	23.53
Total Assets	76.21	68.46

Annual Financial Highlights

Profit after Tax (Rs. Cr)/ Margin (%)

* EPS for all years has been adjusted for Bonus issue 1:1 in Feb 2018,as per Ind-AS guidelines

Annual Financial Highlights

Rs. Cr	FY18	FY17	Y-o-Y (%)
Revenue from Operations	51.54	46.72	10.33%
Raw material	4.41	7.14
Employee expenses	8.37	8.09
Other expenses	23.54	18.51
Total Expenditure	36.31	33.74
EBITDA	15.23	12.97	17.38%
EBITDA Margin (%)	29.55%	27.77%	178 bps
Other income	0.45	0.46
Depreciation	3.78	3.74
EBIT	11.90	9.70	22.66%
Interest	2.27	2.37
Exceptional item	0.00	0.00
PBT	9.63	7.33	31.37%
Tax	2.84	2.41
PAT	6.79	4.92	38.15%
PAT Margin	13.18%	10.53%	265 bps
*Basic EPS (in Rs.)	9.63	6.97	38.16%

Balance Sheet – As on 31st March 2018

Rs. in Cr	As on 31stMar-18	As on 31st Mar-17
Shareholder's Funds	37.40	30.96
Share capital	7.05	3.53
Reserves & Surplus	30.35	27.43
Non-current liabilities	5.64	9.25
Long- term borrowings	5.10	8.84
Other Long-term liabilities	0.01	0.01
Long-term provisions	0.53	0.40
Current liabilities	25.43	20.24
Short- term borrowings	4.51	4.27
Trade payables	7.55	5.62
Other current liabilities	13.13	10.20
Short-term provisions	0.24	0.16
Total Equity & Liabilities	68.46	60.45

Rs. in Cr	As on 31stMar-18	As on 31st Mar-17
Non-current assets	20.28	20.09
Property Plant & Equipment	1.00	1.80
Intangible assets	7.68	7.39
Intangible assets under development	3.80	2.30
Deferred tax assets	0.76	0.36
Non-current investments	0.04	0.04
Long-term loans & advances	1.28	1.53
Other Non-current assets	5.71	6.67
Current assets	48.19	40.35
Trade receivables	21.80	17.75
Cash & Cash equivalents	1.27	3.26
Short-term loans & advances	1.58	1.70
Other current assets	23.53	17.65
Total Assets	68.46	60.45

RoE = Net Profit/Net Worth : D/E = Total Debt/Total Equity : RoCE = EBIT/(Shareholders Fund + Total Debt-Non current investments) : ROA = Net Profit/ Total Assets

Among Leading Innovative Software Solution Providers

04 450+ Team Members

03 500+ Customers Served
Clients across Government bodies, smart cities and enterprises in construction and infrastructure industry

02 Niche Product Offerings

▪ Pioneer products enabling digital transformation such as AutoDCR®, OPTICON™, PWIMS™, etc.

01 Market Leader

▪ Pioneer and Market Leader (~80% Market Share) in Building Permit Automation System, through flagship Product AutoDCR®

▪ Highly qualified team of motivated technocrats led by visionary and highly experienced management team

05 20,000+ Software Users

▪ More than 20,000 users across various segments in domestic and international market

06 Latest Technology & Innovation

Offers 2D & 3D based intelligent and machine learning driven technology
Innovating Cloud technology enabled products

07 Strong Track Record

Delivered to over 500 clients for over two decades to meet industry standards
Consistent High Growth in last 5 years

Listing on NSE SME Emerge Exchange in May 2018
BIMDCR & RuleBuddy Conceptualized 2016-18
Large State level orders
450+ Team Size

Funding & IP monetized

Funding from Technology Dev Board, GOI
OPTICON™ Galaxy Released
STRUDS & ESRGSR acquired by CSC UK Ltd.

VC Funding & QMS Certification

Received Venture Capital funding from SVCL (NFSIT)
ISO Certification

2010-11

2000-03

Key Partnerships

Technology Partnership with Microsoft, AutoDesk
Growth funding from RVCF
250+ Team size

2012-15

Professional Management…

	Vijay Gupta Chairman & CEO	▪ M. Tech. (IIT, Mumbai) ▪ 28+ years experience, Founder of SoftTech ▪ First generation entrepreneur
	Priti Gupta Whole Time Director	▪ B. Sc., Post Graduate in Computing programming System Analysis and Application, M.B.A. ▪ 25+ years experience ▪ HR and Quality Processes Expert
	Arun Biswas VP- Global Delivery	▪ AMIE Mechanical ▪ 25+ years experience ▪ Heading Delivery ,Quality and Knowledge Management Team
VP-	Deepak Warad Business Development	▪ B.E., Diploma in Management ▪ 25+ years experience ▪ Heading the Business Development Team
	Surajit Bhattacharjee VP- Sales	▪ B.E, Sr. Management Programme (IIM, Kolkata) ▪ 25+ years experience ▪ Heading Sales Team
VP-	Vijay Jain Business Development	▪ Diploma in System Design & Analysis ▪ 25+ years experience ▪ Heading the Business Development Team

…Supported by Reputed Auditor Grant Thornton

Professional Management…

Salil Saran VP- Sales (E-Commerce Business)	▪ B.Com, M.B.A (Marketing) ▪ 22+ years experience ▪ Heading Sales and Marketing Team
Neetesh Singhal AVP- Technology	▪ B.E. (Electronics), MS (Software Systems) ▪ 19+ years experience ▪ Heading the Product Technology Team
Sheetal Jagtap AVP- AutoDCR	▪ B. Arch., M.Tech., EPBM, "Certificated Scrum Master", "Certified Software Engineering Professional", EPAF (IIM, Kolkata) ▪ 18+ years experience ▪ Heading the AutoDCR product team
Premnath Basava AVP- OPTICON	▪ BE (Production), MMS ▪ 25+ years experience ▪ Heading Opticon Product Team
Amit Katariya Chief Financial Officer	▪ B.Com, Chartered Accountant ▪ 15+ years experience ▪ Heading Accounts and Finance Department
Madhu Kelkar GM (BIM Division)	▪ BE (Civil), "Certificated Scrum Master", ITIL v3 Foundation certified, Certification in Laws of Patents & other IP ▪ 20+ years experience ▪ Heading BIMDCR Product Team

…Supported by Reputed Auditor Grant Thornton

Source: IBEF

Market Opportunity - Supported by Strong Govt. Initiatives

Smart Cities

100+ smart cities
Potential Market Size (AutoDCR® & PWIMS™) : Rs. 500 Cr

**AMRUT* Cities**

500+ AMRUT cities
Potential Market Size (AutoDCR® & PWIMS™): Rs. 1,000 Cr

Ease of doing business

4,000+ ULBs & Corporations.
1,200 will adopt BPAS in 3 years
Market: Rs. 600 Cr

Notes:

# PMAY refers to Pradhan Mantri AwasYojana

*AMRUT refers to Atal Mission for Rejuvenation & UrbanTransformation

RERA

20% of 14,000 real estate market under process of adopting ERP
Potential Market Size (OPTICON ™): Rs. 560 Cr

Digital India

30% of 500+ public works organizations in 3 years
Potential Market Size (PWIMS ™) : Rs. 750 Cr

#PMAY

2800 cities selected
20% projects will adopt ERP for execution
Potential Market Size (OPTICON™): Rs. 112 Cr

Business Overview

✓ Unique and innovative Smart City Solution for building plan, scrutiny and approval system
✓ Solution for automation of building and layout plan approval reads 2D CAD drawings and maps them to development control regulations of urban local bodies (ULBs)
✓ Approving authorities integrated with online approval workflow to monitor approval process with associated document scrutiny

✓ Enabling smarter management of processes for public works organization
✓ Web-based commercial-off-the shelf (COTS) application for managing all core functional process across project lifecycle including budgets, estimations, financial & technical approvals, e-tendering, contact management, monitoring and billing
Improved productivity
Effective usage of limited resources
Increased visibility and intelligence
✓ Core Processes
Plan budgets
Prepare estimates
Manage tenders
Manage work orders
Mange projects
Manage billings
Maintain assets

State and Country- level public works departments
Housing development boards
Municipal Corporations
Infrastructure development corporations
Urban development authorities
Irrigation departments
Border road organizations
National highway authorities
Military engineer services

Current Products – OPTICON™

✓ Enterprise resource planning (ERP) software, combining advanced enterprise technologies with nearly 20 years of construction industry domain experience into integrated system

Evaluate detailed cost estimate for projects

Manage schedules and eliminate cost and schedule overruns

Bid efficiently

Overview of all data in one Dashboard

Digitize all functions involved in building construction lifecycle

▪ Building contractors

Upcoming Products – BIMDCR & Rule Buddy

✓ Innovative 3D building model based online SINGLE WINDOW system
✓ BIM based integrated building approval system enables automatic scrutiny of building proposal by reading building models submitted by applicant/architect

Optimization of entire project lifecycle in terms of costs, minimum wastage due to no reworks

Single BIM Model submission to various municipal departments, will ensure change

3D visualization with BIM provides better picture of structure in plot/GIS city map

✓ E-commerce portal providing access to customers to realize their building projects

Enables Assessing & Analyzing commercial and legal feasibility of any building project

Validates DC rules, fees, NOCs, mandatory documents requirements in 300+ULBs* in India

User gets to know whether project will pass through authority based on selected project parameters

✓ Key Users
Project owners
Project developers
Construction enterprises
Architects
Engineers
Contractors
Town planners
Financial institutions

✓ Key Users

Smart cities
Municipal development authorities, Fire authorities
Urban development authorities

anywhere

Industrial development authorities
Architects, tower planner & consultants
MEP & utility consultants

STRUDS product -adopted successfully at Malaysia, UAE, Kenya, Nigeria, Uganda

Expanding Global Footprint

Ex
Middl
Africa Kuw
South Indo
N ₀

Expanding Global Footprint

Middle East (UAE, Saudi Arabia etc)	FY 19, 20
Africa (Nigeria, Oman, Kuwait, Bahrain etc)	FY 19, 20
South Asia (Singapore, Indonesia, Malaysia, Philippines)	FY 19, 20
North America	FY 19, 20
Australia	FY 20, 21

Tapping potential international markets with clear action plans 30

Leverage Partnerships

▪ Channel partners, local established players, leverage sales network of technology partner

Brand Marketing

▪ Event participation, industry leadership programs and industry associations

Product Strategy

▪ Diverse offerings and market segmentation

Scalable Revenue Model

▪ Scalable and sustainable revenue generation using multiple revenue models

Holistic approach with focus on key growth drivers ³²

Successful Track Record

Largest market share in India (80%) for building plan approval management system
Tried and tested technological products
Customers spread across India
Pre-approved government vendor