SoftTech Engineers Limited — Regulatory Filings 2018

Sep 19, 2018

SoftTech Engineers Limited

Investor Presentation September – 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 aboutthe 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 forsuch third party statements and projections.

Company Overview

Among Leading Innovative Software Solution Providers

04 450+ Employees

• 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

Innovations & Success Stories

Professional Management…

7

	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…

8

Sheetal Jagtap AVP- AutoDCR

Amit Katariya Finance Controller

Madhu Kelkar GM (BIM Division)

▪ B.Com, M.B.A (Marketing) ▪ 22+ years experience ▪ Heading Sales and Marketing Team
▪ B.E. (Electronics), MS (Software Systems) ▪ 19+ years experience ▪ Heading the Product Technology Team
▪ B. Arch., M.Tech., EPBM, "Certificated Scrum Master", "Certified Software Engineering Professional", EPAF (IIM, Kolkata) ▪ 18+ years experience ▪ Heading the AutoDCR product team
▪ BE (Production), MMS ▪ 25+ years experience ▪ Heading Opticon Product Team
▪ B.Com, Chartered Accountant ▪ 15+ years experience ▪ Heading Accounts and Finance Department
▪ 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

Market Opportunity - Supported by Strong Govt. Initiatives

12

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

• ✓ 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 anywhere

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

✓ Key Users

• Smart cities
• Municipal development authorities, Fire authorities
• Urban development authorities
• Industrial development authorities
• Architects, tower planner & consultants
• MEP & utility consultants

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

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 21

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

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

Favorable Market Conditions

• Govt. initiatives for EODB, digital India and smart cities
• Growing construction & infrastructure industry
• High adoption of internet, mobile & cloud technology

Proven Unique Technology

• Product designed to meet needs of e-governance and construction sectors
• Scalable & flexible products
• Alliances with many technology leaders

Commercial Viability

• Higher ROI profitable since inception
• Lower product development cost due to readily available expertise for CAD, BIM and web technologies

Technology – One Of Our Biggest Core Strengths

Awards and Recognitions

"National Award for Innovative use of technology in e-Governance 2014" for ABPAS implemented by SoftTech at MPUIIP

AUTODCR Conferred with 'Manthan South Asia Award 2010 For e-Governance

SME Achievers Award for Year 2015-16 by SME 100 FORUM, Supported by Ministry of MSME, Govt. of India

AIMA Award for "Creativity & Innovation in Micro, Small & Medium Enterprises – 2016"

Financial Highlights

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%

• EBITDA margin expansion led by sale of high margin own products

• Repayment of high interest long- term debt and reduction of interest rate in existing loan leading to lower finance costs

* EPS FY 17 & FY 18 has been adjusted for Bonus issue 1:1 in Feb 2018, as per Ind-AS guidelines

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

Earning Per Share (in Rs.)*

Balance Sheet – as on 31st March

Rs. Cr	31stMar-18	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 Equities & Liabilities	68.46	60.45

Rs. Cr	31stMar-18	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

Way Ahead

• Continued investment in R&D
• Innovate new products
• Develop new applications for established products
• Multiple segments for existing products
• Widen customer base by augmenting company reach to enterprises and corporates

• Increase product contribution of PWIMS™, OPTICON™ and other upcoming products

• Product base and industry offerings

• Presence & Set up across India & overseas
• Enter into overseas market

SOFTTECH SOFTTECH:IN SOTF.NS For further information, please contact:
Company :	Investor Relations Advisors :
SoftTech Engineers Limited	Bridge Investor Relations Pvt. Ltd.
Ms. Aishwarya patwardhan aishwaryap@softtech-engr.com	Ms. Savli Mangle savli@bridge-ir.com
	Ms. Aesha Shah aesha@bridge-ir.com

www.softtech-engr.com

www.bridge-ir.com