Q1 FY 14 Investor Presentation - nseprimeir.com FY 14 Investor Presentation 1 Nucleus a GLOBAL...

© Nucleus Sof tware Exports L td. | June 30 Queries: i r@nucleussof tware.com www.nucleussoftware .com

Q1 FY 14 Investor Presentation

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N u c l e u s a G L O B A L L E A D E R i n “ R e t a i l L e n d i n g S o l u t i o n s ”


This presentation has been prepared for informational purposes only. This Presentation does

not constitute a prospectus, Offering circular or offering memorandum and is not an offer or

initiation to buy or sell any securities, nor shall part or all of this presentation from the basis of, or

to be relied on in connection with any contract or investment decision in relation to any

securities.

This Presentation contains forward looking statements based on the currently held beliefs of

the management of the company which are expressed in good faith and in their opinion

reasonable. The forward looking statements may involve known and unknown risks uncertainty

and other factors which may cause the actual results, financial condition performance or

achievements of the Company or industry results materially from the results, Financial

Conditions, Performance, or achievements of the Company.

These forward-looking statements represent only the Company’s current intentions, beliefs or

expectations, and any forward-looking statement speaks only as of the date on which it was

made. The Company assumes no obligation to revise or update any forward-looking

statements.

FinnOneTM | Global No. 1 Lending Solution for 5 Consecutive years - BY IBS PUBLISHING, UK

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OVERVIEW

PRODUCTS

GOVERNANCE

AWARDS & RECOGNITIONS

FINANCIALS


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A leading global banking software powerhouse providing innovative and pioneering products and software solutions since 1986

Flagship product FinnOneTM consistently ranked as one of the top lending products by IBS Publishing, UK (2005-2011)

With over 150 customers across the globe, the Company is consistently innovating with cutting edge and industry driven products in the domain

• Financially Strong, Zero Debt company • Revenue for FY 13 stood at USD 54 M

Offices in 9 countries | 4 development centers | 1500+ professionals


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Our Presence


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Providing Standardized suite of products through greater focus on

investments in R&D

Services thrust with existing customers

Increase our footprint across the globe

Focus on deeper penetration of our products with existing customers


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Revenue Growth

Customer Engagement

Brand Strengthening

Improved Productivity

Tapping the un-tapped market


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OVERVIEW

‘PRODUCTS’

GOVERNANCE


FINANCIALS


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Corporate Retail Islamic Financing

Murabaha

Ijarah

Istisna

Tawaruq

Services Application Development &

Management Infrastructure Management Services

Auto

Leasing

Credit Cards

Deposits -CASA

Personal

Education

Home

Multi Facility Loans

Inventory Funding

Bills Discounting

Fleet Finance

Transaction Banking

Deposits -CASA


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Internet Banking

Suite

Customer Acquisition

Loan Management & Services

Collections

Lead Management

General Ledger

Deposits

Teller

Customer Service

Forecaster

Global Receivables

Global Payments

Global Liquidity Management

Financial Supply Chain Management

Electronic Invoice Presentment & Payment (EIPP)

Electronic Bill Presentment & Payment (EBPP)

Billing & Financial Messaging

Corporate Retail Islamic SME

Finance Against Securities

PowerPay

Communication

Suite

mServe mCas mCollect

Mobility Solutions


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INFRASTRUCTURE MANAGEMENT SERVICES

24x7 Helpdesk

Network Services

Infra Application Support

End User Computing & End Point Security

Data Center Services

Application Development

Application Enhancement

Application Support

Application Maintenance

Application Migration

Application Rationalization

Testing

Performance Engineering


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Nucleus was included as a sample vendor for Packaged retail Loan Origination Application in Gartner's report "Retail Loan Origination Vendor Landscape"

In Forrester research, Inc. Report, "Global Banking Platform Deals: 2011", Nucleus Software was recognized as one of the strong global banking platform vendors.

Nucleus Software received the award for "Outstanding Oracle Fusion Middleware Solution" by Oracle

Corporation


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Nucleus Software wins GOLD SHIELD for Excellence in Financial Reporting, 2012. for the Fifth consecutive year by Institute of Chartered Accountants of India(ICAI)

"Nucleus Software WINS the NASSCOM Corporate Awards for Excellence in Diversity and Inclusion 2013 For the category of Best IT services & Product

Company – Special recognition (less than 5000

employees)"

Nucleus Software honored for the 'Best Online Annual Report' Globally in the Technology sector & for the 'Most Improved Financial Disclosure Procedures' in India.

Nucleus Software has won the Titanium Award for Investor Relations, Corporate Governance and Environment Responsibility in the Asset Triple A Corporate Awards 2012


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VP Bank, Vietnam wins ‘Celent Model Bank Award 2012’ for using Nucleus’ Loan Processing system – FinnOne™

HDFC Bank, India powered by Nucleus FinnOne™, wins 'Celent Model Bank Award 2010' for effective technology usage in banking.

ICICI Bank, India Nucleus Software customer, wins the prestigious Celent 2009 Model Bank Award for using Nucleus' loan processing system, FinnOne™


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OVERVIEW

PRODUCTS

‘GOVERNANCE’


FINANCIALS


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@

Mr. Janki Ballabh

Chairman, Independent Non-Executive Director

Mr. Vishnu R Dusad

CEO & Managing Director

Mr. Prithvi Haldea

Independent, Non-Executive Director

Mr. Sanjiv Sarin


Professor Trilochan Sastry


Mr. N. Subramaniam



Corporate Governance philosophy at

Nucleus is to comply with not only the

statutory requirements, but also

voluntarily formulate and adhere to a

set of strong Corporate Governance

practices.

The Board at Nucleus consists of six

members with five members of the

Board being Non-Executive Directors.

All the Non-Executive Directors are

Independent Directors and with their

diverse knowledge and expertise provide

valuable contribution in the

deliberations and decisions of the

Board.

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Best Practices of Corporate Governance followed in Nucleus beyond the requirements of law :

Formulation, dissemination and strict adherence to a Code of Conduct & Ethics.

Detailed financial reports even on a quarterly basis sent to the shareholders including complete audited financials, and Management Discussions and Analysis of the performance of the Company.

Reporting of any transactions in securities of the company by Directors/Senior Management members, to the stock exchange irrespective of value being below reporting criteria .

Ensuring best accounting practices being followed at all subsidiary locations.

Regular meetings and conference calls with investors/analysts to update them on Company performance.

Detailed disclosures on the Company’s website including financial and non-financial details.

Zero Debt Policy: Maintain adequate funds to ensure that payments are made in time

Implementation of a Whistle Blower Policy

The Annual Report for the year ended March 31, 2012 won the Platinum Award

for excellence within the Technology-Software industry in the Vision Awards

by LACP, USA

Social and Corporate Governance Awards 2013 in the category "Best Overall Corporate Governance".

Nucleus Software was adjudged with the 'ICAI Awards for Excellence in

Financial Reporting' GOLD SHIELD for the Fifth consecutive year under

Category Service Sector.

The Company was honored for the 'Best Online Annual Report' globally in the technology sector & the Best in 'Most

Improved Financial Disclosure Procedures' in the regional rankings for

India for the year 2012 by IR Global Rankings (IRGR).

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OVERVIEW

PRODUCTS

GOVERNANCE

‘AWARDS & RECOGNITIONS’

FINANCIALS


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© Nucleus Sof tware Exports L td. | June 30 Queries: i r@nucleussof tware.com www.nucleussoftware .com FinnOneTM | Global No. 1 Lending Solution for 5 Consecutive years - BY IBS PUBLISHING, UK

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Source: Global Banking Platform Deals 2011, Forrester Research, Inc., April 2012


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Forrester Research Inc.

In Forrester research, Inc. Report, "Global Banking Platform Deals : 2011" by Jost Hoppermann, April 2012, Nucleus Software was recognized as one of the strong global banking platform vendors. Nucleus continued its position as a “Global Pursuer", with strongest functional area as lending for the year 2011.

In the Forrester Research, Inc. report, “Global Banking Platform Deals 2011: Functionality” by Jost Hoppermann, June 2012, Nucleus Software was recognized as one of two vendors with the highest number of loan servicing/management deals for the year 2011.

Gartner, Inc.

Nucleus was included as a sample vendor for Packaged Retail Loan Origination Applications in Gartner’s report “Retail Loan Origination Vendor Landscape” by Kristin Moyer, 28 December 2011.

Nucleus Software’s FinnOne was evaluated by Gartner in a recent analysis focusing on packaged commercial loan origination applications. Source: “Commercial Loan Origination Vendor Landscape” by Kristin Moyer, 27 September 2011.

Nucleus was included as a sample vendor for Lending Services Hub solution in Gartner's report “Hype Cycle for Banking and Investment Services Core Applications and Architecture Technologies, 2011" by Kristin R. Moyer et al.

Nucleus Software was evaluated in Gartner’s report, ‘Application Migration Approaches for Retail and Commercial Loan Servicing’ by Kristin Moyer, Mar 21, 2011.


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Celent

Vietnam Prosperity Bank’s Loan Origination system, powered by Nucleus Software’s FinnOne CAS, LMS and collections was recognized with Model Bank Award by Celent (March 2013).”

HDFC Bank’s Loan Origination system, powered by Nucleus Software’s FinnOne CAS, was recognized as a Model Bank component by Celent (May 2010).

Nucleus has been recognized as a leading core banking vendor by Celent in its recent report Big Leagues Table: Global Core Banking Sales Ranking.

ICICI Bank, a Nucleus Software customer, has won the prestigious Celent 2009 Model Bank Award for using Nucleus' loan processing system, FinnOne.

AiteGroup

Aite Group recognized Nucleus Software’s Cash@Will as one of the Supply Chain Finance Software (SCF) in the recent report published by Enrico Camerinelli, March 2012 on Supply Chain Finance Software Vendors.

Ovum

In the Ovum report, “Decision Matrix – Selecting a Common Retail Loan Origination Platform” by Jaroslaw Knapik, Oct 2012, Nucleus has been featured as the “Market Leader” and “Specialist Vendor” for common loan origination platforms, with commanding market position and strong technology capability.


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Nucleus Software participation during Q1 FY 14 in :

• ENG Automotive Finance Summit , 4th-5th June,2013 in Frankfurt • European Banking Forum on the 15th and 16th May, 2013 in Amsterdam • Malaysia Banking Roundtable on the 14th May, 2013


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OVERVIEW

PRODUCTS

GOVERNANCE


‘FINANCIALS'


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Comparison

• Up 17% @ Rs. 86 Crore Revenue

• Up 55% @ Rs. 14 Crore EBITDA

• Up 12% @ Rs. 18 Crore PBT

• Down 9% @ Rs. 11 Crore PAT


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0

50

100

150

200

250

300

350

2009 2010 2011 2012 2013

328

292270 282 294

Revenue

0

10

20

30

40

50

2009 2010 2011 2012 2013

32

38

26

35

45

Profit After Tax (PAT)

0

10

20

30

40

50

60

2009 2010 2011 2012 2013

5054

3036

46

Operating Profit (EBITDA)

FinnOneTM | Global No. 1 Lending Solution for 5 Consecutive years - BY IBS PUBLISHING, UK 26


0

10

20

30

40

50

60

70

80

90

Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

74 72 75 73

86Revenue

0

2

4

6

8

10

12

14

16


9

12 13 12

14

Operating Profit (EBITDA)

0

2

4

6

8

10

12

14


12

10

12

1011

Profit After Tax (PAT)

27


Geography Segment


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

68% 67% 67% 68% 72%

32% 33% 33% 32%28%

Projects & Services Product Revenue

25%

21%

20%

4%

6%

17%

4% 2%

Q1 FY 14

India

Far East

South East Asia

Europe/UK

Americas

Middle East

Africa

Rest of the World

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Rs. In Crore


Mar-13 % YOY Mar-12 %

Revenue 294 100% 4% 282 100%

Software Dev. Exp. 186 63% -4% 193 68%

Gross Profit 108 37% 21% 89 32%

Selling & Mktg.Exp. 33 11% 15% 29 10%

General & Admin Exp. 29 10% 16% 25 9%

PBIDT 46 16% 29% 36 13%

Other Income 20 7% 0% 20 7%

Depreciation 6 2% -18% 7 3%

PBT 60 20% 24% 48 17%

Taxation

Withholding taxes 1 -32% 1 0%

Income/ Wealth Tax 15 5% 28% 11 4%

Deferred Tax (0) 0% 40% (0) 0%

Earlier year tax 0 0% -98% 1 0%

PAT 45 15% 28% 35 13%

FY Ended

29


30

Rs. In Crore

Jun-13 % QoQ YoY Jun-12 % Mar-13 %

Revenue 86 100% 18% 17% 74 100% 73 100%

Software Dev. Exp. 54 63% 22% 8% 50 68% 45 61%

Gross Profit 32 37% 10% 36% 24 32% 29 39%

Selling & Mktg.Exp. 9 10% 16% 1% 9 12% 8 10%

General & Admin Exp. 9 10% -2% 57% 6 8% 9 12%

PBIDT 14 16% 16% 55% 9 12% 12 17%

Other Income 5 6% 29% -37% 9 11% 4 6%

Depreciation 2 2% 3% -2% 2 2% 2 2%

PBT 18 21% 21% 12% 16 22% 15 20%

Taxation

Withholding taxes 0 0% -83% 0% - 0% 1 1%

Income/ Wealth Tax 7 9% 85% 86% 4 5% 4 5%

Deferred Tax (1) -1% 346% 265% (0) 0% (0) 0%

PAT 11 13% 7% -9% 12 17% 10 14%

Rs. CroreQuarter Ended


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Rs. In Crore

June 30, 2013 March 31, 2013 June 30, 2013 March 31, 2013

EQUITY AND LIABILITIES Audited Audited ASSETS Audited Audited

1. SHAREHOLDERS' FUNDS 4. NON-CURRENT ASSETS

a. Share capital 32 32 a. Fixed assets

b. Advance pursuant to stock option plan 0 0 - Tangible assets 46 46

c. Reserves and surplus 328 318 - Intangible assets 4 5

361 350 50 51

b. Non-current investments 0 0

2. NON-CURRENT LIABILITIES c. Deferred tax assets (net) 7 6

a. Long-term provisions 13 12 d. Long-term loans and advances 18 22

e. Other non current assets 0 0

76 79

3. CURRENT LIABILITIES 5. CURRENT ASSETS

a. Trade payables 23 25 a. Current investments 180 155

b. Other current liabilities 58 56 b. Inventories - 5

c. Short-term provisions 13 15 c. Trade receivables 72 70

94 97 d. Cash and cash equivalents 104 112

e. Short-term loans and advances 9 9

f. Other current assets 28 29

392 380

468 459 468 459


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Jun-13 Mar-13 Dec-12 Sep-12 Jun-12 Mar-12 Dec-11 Sep-11 Jun-11

Product Revenue 72% 68% 67% 67% 68% 72% 71% 75% 73%

Own 62% 67% 65% 66% 64% 67% 69% 72% 69%

Trading 10% 1% 2% 0.48% 5% 5% 2% 3% 4%

Projects & Services 28% 32% 33% 33% 32% 28% 29% 25% 27%

Revenue

Quarter Ended

Mar-13 Mar-12

Product Revenue 67% 73%

Own 65% 70%

Trading 2% 3%

Projects & Services 33% 27%

Year Ended

Revenue


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Jun-13 Mar-13 Dec-12 Sep-12 Jun-12 Mar-12 Dec-11 Sep-11 Jun-11

India 25% 19% 23% 25% 29% 25% 22% 23% 23%

Far East 21% 26% 19% 20% 19% 12% 27% 19% 19%

South East Asia 20% 22% 18% 14% 14% 16% 17% 18% 14%

Europe/UK 4% 6% 10% 10% 10% 16% 9% 15% 19%

Americas 6% 6% 3% 1% 1% 0% 0% 0% 0%

Middle East 17% 17% 21% 20% 19% 19% 18% 19% 18%

Africa 4% 2% 4% 7% 6% 0% 3% 3% 3%

Rest of the World 2% 2% 2% 3% 2% 12% 4% 3% 4%

Revenue

Quarter Ended

Mar-13 Mar-12

India 18% 23%

Far East 28% 19%

South East Asia 21% 16%

Europe/UK 6% 15%

Americas 7% 0%

Middle East 14% 19%

Africa 3% 2%

Rest of the World 2% 6%

Revenue

Year Ended


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Email :[email protected]

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http://www.linkedin.com/company/nucleus-software-exports-limited

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Q1 FY 14 Investor Presentation - nseprimeir.com FY 14 Investor Presentation 1 Nucleus a GLOBAL...

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