investor presentation meet/131209_20140505.pdf · collections was recognized with model bank award...

© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com

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 6 Consecutive years - BY IBS PUBLISHING, UK

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A leading global banking software powerhouse providing innovative and pioneering products, services & solutions since 1989.

Flagship product FinnOneTM consistently ranked as one of the top lending products by IBS Publishing, UK (2005-2013)

With over 150 customers across the globe, the Company isconsistently innovating with cutting edge and industrydriven products in the domain.

A Public Listed Company on Indian Stock Exchanges since 1995.

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


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4FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK

AUSTRALIA


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Application Development

Application Enhancement

Application Support

Application Maintenance

Application Migration

Application Rationalization

Testing

Performance Engineering


© Nucleus Sof tware Exports L td. | December 2013 Queries: i r@nucleussof tware.comwww.nucleussoftware .com

New Product Launches in FY 2014

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Launched in FY 2014


Global Receivables

Rel 1.0

Global Payments

Rel 1.0

Global Liquidity Management

Rel 4.2

Financial Supply Chain Management (FSCM) Rel Rel 1.5


Launched in FY 2014


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Reduced Operational Cost

- Cost of Maintenance

- Cost of upgrades

Higher Op-efficiency

- Dashboards for high visibility

- Definition inheritance

- eLearning

- Enhanced automation

Enhanced Customer Experience

- Rich User Interface

- Multi-channel

- Easy on-boarding

- Self service

Reduced Time to Market

- Parameterized Product definition

- File Consolidator

- Transaction policies

Enhanced Security

- Access rights driven

- Audit control

- Fraud check

- System health

- Regulatory



Smart GUI

• Light, user centric, modern and smart GUI

• Interface adaptive to various end devices such as desktops, mobiles, tablets etc.

Self Service

• Customizable dashboard with widgets , shortcuts & calendar

• Self service capability for various tasks such as Initiate loan application, status check, alerts etc.

Integrated Mobility

• Key functionalities for field operations available on integrated mobile suite

• Complete relationship view of customer for simpler & faster query resolution



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Risk free migration from existing to new application with application migration toolkit

Proven capability of seamless Integration with peripheral banking applications and third party interfaces such as credit bureaus

Dedicated team with rich experience of managing implementation projects across the globe

Rich testing functionality for future enhancements



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Retail banks will grow their IT spending to $152.2 billion by 2018 inresponse to rising customer expectations and investment in digitalchannels

Western Europe and North America will remain the largest markets forIT spending. In the next five years : Western Europe (forecast to reach US$43.6bn in 2018) growing at 2.9 percent

and North America (forecast to reach US$59.3bn in 2018), growing at 4.8 percent.

Emerging Asia-Pacific markets are expected to grow at the fastest rate(7.7 percent), mirroring the economic development in the region andthe expected financial strength of the consumer. The total annual spend in this region is expected to reach US$16.8bn by the

end of 2018.

A March 2014 report by analyst firm Ovum



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• Intellectual Property CentricBusiness model

• Leadership in Lending and Transaction BankingMarket positioning

• Innovation led differentiation

• Continuous value creation

• Seamless transition experience

• Trusted partnerships with customers

Sustaining and preserving our competitive advantage

• Nucleus Values and EthicsGovernance



BuildIP

Alliances and

Partners

NewGeographies

Alliance Ecosyste

m

Brand and Marketing

CustomerAdvocacy

Innovationled PLM

Value Based Selling

Governance

Change Management

Communication


• Upgrades• Agile RoadmapContinuous

• Value Model (ROI)

• Value Team

• Vendor to Business Partner

“Quantified” Value

• Function/feature leader

• Social

• Overall Experience

Multi Value

4D



Nucleus was included as a samplevendor for Packaged retail LoanOrigination Application in Gartner'sreport "Retail Loan OriginationVendor Landscape"

In Forrester research, Inc. Report, "GlobalBanking Platform Deals: 2011", NucleusSoftware was recognized as one of thestrong global banking platform vendors.

Nucleus Software received the awardfor "Outstanding Oracle FusionMiddleware Solution" by Oracle

Corporation


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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, NucleusSoftware 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 loanservicing/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 loanorigination applications. Source: “Commercial Loan Origination Vendor Landscape” by Kristin Moyer, 27 September2011.

Nucleus was included as a sample vendor for Lending Services Hub solution in Gartner's report “NMpe Cycle forBanking 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 CommercialLoan 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 andcollections 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 ModelBank 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 usingNucleus' loan processing system, FinnOne.

AiteGroup

Aite Group recognized Nucleus Software’s Cash@Will as one of the Supply Chain Finance Software (SCF) in therecent 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 originationplatforms, with commanding market position and strong technology capability.


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Nucleus Software hosted a customer meet toshowcase its FinnOneTM Mobility Product Suiteoffering enhanced value and experience to thebanking and financial services industry in Philippinesmarket on November 08, 2013

Nucleus Software successfully launched thefunctionally rich, market ready IntegratedTransaction Banking product suite, FinnAxiaTM inSingapore on February 28, 2014.



Vietnam Prosperity Bank

VietnamFinnOneTM Suite

•Model Bank Award by Celent (Mar 2013)

HDFC Bank

IndiaFinnOneTM Suite

•Model Bank Award by Celent (2010)

CIMB

MalaysiaFinnOneTM Collections

•Process Excellence Award for Collection & Debt Management at the BPA trailblazer Awards (2013)

ICICI Bank

IndiaFinnOneTM Suite

•Model Bank Award by Celent (2009)


@

Mr. Janki Ballabh

Chairman, Non-Executive Director

Mr. Vishnu R Dusad

CEO & Managing Director

Mr. Prithvi Haldea

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 with

their diverse knowledge and expertise

provide valuable contribution in the

deliberations and decisions of the

Board.

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The Annual Report for the year ended March 31, 2013

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 inducted into the Hall of Fame for the 'ICAI Awards for Excellence in

Financial Reporting' , for winning the GOLD SHIELD for

the five consecutive years under the Category .

The Company was honored for the ‘Best Ranked Companies –

Investor Relations Website' for India Region

for the year 2013 by IR Global Rankings (IRGR).

World Finance CG Awards – 2014Nucleus Software won Best

Corporate Governance - India -2014

FinnOneTM | Global No. 1 Lending Product for 6 Consecutive years - BY IBS PUBLISHING, UK


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ParticularsFY 2014

Rs. CroreYoY Growth

Revenue 346.22 18%

Operating Profit 66.58 45%

Profit After Tax 64.34 42%

ParticularsFY 2014

Rs. Crore% of Revenue YoY Growth

Products 237.96 68.73 20%

Projects & Services 108.26 31.27 13%

Consolidated Financials

Key Segmental Results



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In Rs. Crore


103

148

221

289

328

292270 282 294

346

2137

55 6232 38

26 35 4564

26%

30%29%

25%

15%

19%

11%13%

16%

19%

-25%

-15%

-5%

5%

15%

25%

35%

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

In R

s. C

rore

Revenue PAT EBITDA margin


30

Business Segment

Geography Segment

17%

19%

23%

8%

7%

13%

9%5%

Q3 FY 14

19%

18%

24%

7%

8%

15%

4% 5%

Q4 FY 14

India

Far East

South East Asia

Europe/UK

Americas

Middle East

Africa

Rest of the World

Product Revenue

, 67%

Projects &

Services,

33%

Mar-14

Product

Revenue, 68%

Projects &

Services,32%

Dec-13


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Business Segment

Geography Segment

18%

28%

21%

6%

7%

14%

3% 2%

Mar 13

20%

20%

23%

6%

7%

14%

6% 3%

Mar 14

India

Far East

South East Asia

Europe/UK

Americas

Middle East

Africa

Product

Revenue, 69%

Projects

& Services,

31%

Mar-14

Product

Revenue, 67%

Projects

& Services,

33%

Mar-13


References

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Mar-14 % QoQ YoY Dec-13 % Mar-13 %

Revenue 88 100% -3% 19% 90 100% 73 100%

Cost of stock in trade - - - - - - - -

Software Dev. Exp. 51 59% -4% 16% 54 60% 45 61%

Gross Profit 36 41% 0% 25% 36 40% 29 39%

Selling & Mktg.Exp. 10 12% 16% 34% 9 10% 8 10%

General & Admin Exp. 6 7% -27% -34% 8 9% 9 12%

PBIDT 20 23% 3% 64% 19 22% 12 17%

Other Income 7 9% -2% 80% 8 9% 4 6%

Depreciation 3 3% 37% 75% 2 2% 2 2%

PBT 25 28% -1% 67% 25 28% 15 20%

Taxation

Withholding taxes 0 0% -17% -66% 0 0% 1 1%

Income/ Wealth Tax 7 8% 541% 81% 1 1% 4 5%

MAT credit entitlement (0) 0% - - - 0% - 0%

Deferred Tax (0) 0% -180% 120% 0 0% (0) 0%

Earlier year tax (1) -1% - - - 0% 0 0%

PAT 19 21% -20% 80% 23 26% 10 14%

Rs. CroreQuarter Ended

Mar-14 % Mar-13 % YOY

346 100% 294 100% 18%

5 1% - - -

207 60% 186 63% 11%

135 39% 108 37% 24%

36 10% 33 11% 8%

32 9% 29 10% 9%

67 19% 46 16% 45%

25 7% 20 7% 21%

8 2% 6 2% 30%

83 24% 60 20% 39%

1 0% 1 0% 3%

20 6% 15 5% 36%

(0) 0% - 0% -

(1) 0% (0) 0% 37%

(1) 0% 0 0% -

64 19% 45 15% 42%

FY Ended


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Rs. In Crore

Mar-14 Mar-13 Mar-14 March-13

Audited Audited Audited Audited

1. 4.

a. Share capital 32 32 a. Fixed assets

b. Advance pursuant to stock option plan - 0 - Tangible assets 48 46

c. Reserves and surplus 365 318 - Intangible assets 13 5

397 350 - Capital work-in-progress 1 -

62 51

b. Non-current investments 24 0.3

2. c. Deferred tax assets (net) 7 6

a. Long-term provisions 13 12 d. Long-term loans and advances 21 22

e. Other non current assets 0.5 0.2

115 79

3. 5.

a. Trade payables 25 25 a. Current investments 199 155

b. Other current liabilities 49 56 b. Inventories - 5

c. Short-term provisions 30 15 c. Trade receivables 42 70

104 97 d. Cash and cash equivalents 99 112

e. Short-term loans and advances 19 9

f. Other current assets 40 29

399 380

513 459 513 459

CURRENT ASSETS

SHAREHOLDERS' FUNDS

NON-CURRENT LIABILITIES

CURRENT LIABILITIES

EQUITY AND LIABILITIES ASSETS

NON-CURRENT ASSETS


Email :[email protected]

http://www.twitter.com/nucleussoftware

https://www.facebook.com/pages/Nucleus-Software/334160235595

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

mailto:[email protected]

investor presentation meet/131209_20140505.pdf · collections was recognized with model bank award...

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