nucleus software exports ltd. - indian … meet/131209_20141101.pdf · nucleus software’s finnone...

© Nucleus Sof tware Exports L td. | June 2014

Queries: i r@nucleussof tware.com www.nucleussoftware .com

NUCLEUS SOFTWARE EXPORTS LTD. Q2 FY 15 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 ”



Disclaimer

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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Recognized globally for CG practices – Awards from Corporate Affairs Forum, World CSR Congress, "Hall of Fame" by the Institute of Chartered Accountants of India –ICAI.

Flagship product FinnOne™ consistently ranked as one of the top products by IBS Publishing, UK (2005- 2014).

Strong Financials with Zero Debt; A Public Listed Company on Indian Stock Exchanges since 1995.

Offices in 10 countries | 4 development centers | 1500+ professionals.

27 Years of Domain Expertise

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A leading global banking software powerhouse providing innovative and pioneering products & solutions for lending and transaction banking


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10.2 mn transactions processed daily on our systems

Transforming Banking Technology

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* Source: The Banker 2013 rankings

51 countries product installations

150 Banks /FI’s

customers globally

4 Customers

in the Global Top 10* banks

40 k Users log in daily


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Extensive Lines of Business

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7000 Man years experience in software development

500+ Projects Executed successfully across 4 continents


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

New Product Launches

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FinnOne Neo End to End Loan Lifecycle Mgmt

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

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• Loan Origination • Customer Acquisition • Prospect Capturing • Loan Application Initiation • Loan Underwriting &

Approval

Pre-Loan During Loan Delinquency

• Customer Self Service • Fundamental Reports • Fundamental Documents • Service Requests • Cross Selling Mechanism

• Debt Recovery • Status Recordings • Statement Deliveries • Skip Tracing • MIS Reports

Mobility Products Summarized Snapshot

Overview of the Mobile Suite

mCAS mCollect mServe

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FinnAxia Product Landscape

Global Payments

Global Receivables

Global Liquidity Management

e- Financial Supply Chain

Management

Business Internet Banking

Mobile Transaction Banking

Charging

Accounting

Alerts

Reporting &

File Format Manager

Financial Messaging

Security

Interface to

Back office

Applications

Core

Banking

System

Thomson

Reuters

Global

CSM’S

ERP

Supporting

Services

Business

Services

Multiple

Touch-Points

Internet

Banking

Bank

Branch

IVR

Mobile

ATM/POS

Call

Center

Customer

Integrated Multi

Channel Front-

end


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Services Portfolio in Domain


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Business Strategy

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Strategy Implementation - Value Elements

Build IP

Alliances and

Partners

New Geographies

Alliance Ecosyste

m

Brand and Marketing

Customer Advocacy

Innovation led PLM

Value Based Selling

Governance

Change Management

Communication

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Continuous Value Delivery

• Upgrades • Agile Roadmap

Continuous

• Value Model (ROI)

• Value Team

• Vendor to Business Partner

“Quantified” Value

• Function/feature leader

• Social

• Overall Experience

Multi Value

4D

13 FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK 13



Partner Ecosystem Leveraging on partner’s strength specific to areas related to Technology, Functional, Delivery & Sales, thereby augmenting and enhancing Nucleus Software’s capabilities and value proposition to the customer

CHANNEL & VAP

Client gets to deal with trusted vendor locally

Local support promising effective resolution

System Integrator

Offer specialized Partner Product that meet requirements

One stop solution for client

Technology Adoption of technology protects investment

Faster Time to Market, Lower TCO

ISV Best of breed integrated solution to client

Client gets competitive edge at lower TCO while

ensuring Faster Go-to-market

Consulting & Analyst Firms

Suggest credible option to client, cuts down vendor selection cycle

Client gets easy access to proven solution vetted by industry leaders

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Our Marquee Customers

Source: The Banker, The Asian Banker 2013 rankings

4 amongst the Largest 50 Banks Globally

11 amongst the Largest 150 Banks Globally

11 amongst the Largest 50 banks in Asia Pacific

5 amongst the Largest 10 Banks in India

6 amongst the Largest 20 Banks in Middle East

6 amongst the Largest 50 Banks in Africa

3 amongst the Largest 5 Banks in Singapore

3 amongst the Largest 10 Banks in Indonesia

3 amongst the Largest 10 Banks in Nigeria

4 amongst the largest 5 Banks in Philippines

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Awards & Accolades

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Recognized as a “Specialist”

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Nucleus Software is identified as a “Regional Pursuer", in the Forrester Research, Inc. report "Customer-Facing Solutions Are Driving Banking Platform Deals" by Jost Hoppermann, June 2014, covering the 2013 Global banking platforms deals.

The Ovum report, “Decision Matrix – Selecting a Common Retail Loan Origination Platform” Oct 2012, Nucleus Software has been featured as the “Market Leader” and “Specialist Vendor

Aite Group recognized Nucleus Software’s Cash@Will ( Transaction Banking ) buyer centric capabilities in the report published by Enrico Camerinelli, March 2012 on Supply Chain Finance Software Vendors


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Recognition By The Analyst Community

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


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Diverse Accolades

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Hall of Fame Award for Excellence in Financial Reporting, by Institute of Chartered Accountants of India(ICAI). Received Gold Shield for five consecutive years.

•Prestigious IR Global Ranking Awards (IRGR), 2013 for the 2nd consecutive year

•Platinum award for excellence (2013) LACP

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

NASSCOM Corporate Awards for Excellence in Diversity and Inclusion 2013 For the category of Best IT services & Product Company

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

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Awards that we are most proud of…

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Vietnam Prosperity Bank

- FinnOne Suite Model Bank Award by Celent (2013)

CIMB Malaysia - FinnOne Collections

Process Excellence Award for Collection & Debt Management at the BPA trailblazer Awards

(2013)

HDFC Bank, India - FinnOne Suite

Model Bank Award by Celent (2010)

ICICI Bank, India - FinnOne Suite

Model Bank Award by Celent (2009)

Model Bank Award by Celent (2014) ICICI Bank, India

- FinnOne mCollect

Asian Banker Technology Implementation Award (2014)

ICICI Bank, India - FinnOne mCollect



Technology Research Analyst Quotes

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 “NMpe 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.

Technology Research Analyst Quotes


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EVENTS


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Nucleus Software hosted a customer meet to showcase its Integrated Transaction Banking product suite, FinnAxiaTM to the banking and financial services industry in Malaysia & Philippines market

With a theme of Driving the New Normal: Agile.Scalable.Relevant Nucleus Software participated at Sibos 2014, Boston to showcase its Transaction Banking solution, FinnAxiaTM and share insights in seminars on the opportunities and challenges facing bankers across the world.

Events across SEA, India, Japan, ME & US



Governance @ Nucleus A Priority Mr. Janki Ballabh

Chairman, Non-Executive , Independent Director

Mr. Vishnu R Dusad

CEO & Managing Director

Mr. Prithvi Haldea

Non-Executive , Independent Director

Mrs. Elaine Mathias Non-Executive , Independent Director

Professor Trilochan Sastry

Non-Executive, Independent Director

Mr. R P Singh

Executive Director

Mr. N. Subramaniam

Non-Executive , Independent Director


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 seven

members with five members of the

Board being Non-Executive,

Independent 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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Accolades


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Financials

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Our Track Record 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

27



Annual Revenue Segment

28

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

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Q2 FY 2015 Highlights

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Particulars Q2 FY 2015

Rs. Crore YoY Growth

Revenue 86.83 6%

Operating Profit 15.54 21%

Profit After Tax 12.85 17%

Particulars Q2 FY 2015

Rs. Crore % of Revenue YoY Growth

Products 61.95 71% 13%

Projects & Services 24.88 29% -9%

Consolidated Financials

Key Segmental Results


Queries: i r@nucleussof tware.com www.nucleussoftware .com FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK

Quarter Ended Results September 30, 2014

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Mar-14 %

346 100%

5 1%

207 60%

135 39%

36 10%

32 9%

67 19%

25 7%

8 2%

83 24%

19 5%

64 19%

FY Ended

Rs. In Crore

Sep-14 % QoQ YoY Jun-14 % Sep-13 % Sep-14 % Sep-13 %

Revenue 87 100% 9% 6% 79 100% 82 100% 166 100% 169 100%

Cost of stock in trade - - - - - - 5 3%

Software Dev. Exp. 50 58% -2% -4% 51 64% 52 63% 101 61% 102 60%

Gross Profit 37 42% 30% 22% 28 36% 30 37% 65 39% 62 37%

Selling & Mktg.Exp. 12 13% 10% 38% 11 13% 8 10% 22 13% 17 10%

General & Admin Exp. 9 11% 25% 7% 8 10% 9 11% 17 10% 18 11%

PBIDT 16 18% 53% 21% 10 13% 13 16% 26 15% 27 16%

Other Income 7 8% 1% 67% 7 9% 4 5% 14 8% 9 6%

Depreciation 3 3% 3% 65% 3 4% 2 2% 6 3% 3 2%

PBT 19 22% 39% 29% 14 18% 15 18% 33 20% 33 20%

Taxation 7 8% 179% 58% 2 3% 4 5% 9 5% 8 5%

PAT 13 15% 10% 17% 12 15% 11 13% 25 15% 22 13%

HY endedRs. Crore

Quarter Ended



Revenue breakup Business Segment-wise

31

71%

29%

Q2 FY 15

Product Revenue

Projects & Services

67%

33%

Q2 FY 14

Product Revenue

Projects & Services

71%

29%

HY Ended Sep. 2014

Product Revenue

Projects & Services

70%

30%

HY Ended Sep. 2013

Product Revenue

Projects & Services



32

15%

18%

22% 10%

0%

20%

9% 6%

Q2 FY 15

India

Far East

South East Asia

Europe/UK

Americas

20%

22%

23%

6%

8%

12%

7% 2%

Q2 FY 14

16%

18%

22% 9%

2%

20%

7% 6%

HY Ended Sep. 2014

India

Far East

South East Asia Europe/UK

Americas

Middle East

23%

22%

21%

5%

7%

15%

5% 2%

HY Ended Sep. 2013

Revenue breakup Geography Segment-wise

© Nucleus Software Exports Ltd. | November 14 Queries: [email protected] www.nucleussoftware.com

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