nucleus software investor presentation q1 fy19-20 · pre-payment report cross selling mechanism...

WWW.NUCLEUSSOFTWARE.COM | [email protected] © 2017 NUCLEUS SOFTWARE. ALL RIGHTS RESERVED. 1

Investor Presentation Q1 FY19-20

Nucleus Software

The Lending & Transaction Banking Solution Experts

24.07.2019


This presentation has been prepared for informational purposes only. This Presentation does notconstitute a prospectus, Offering circular or offering memorandum and is not an offer or initiationto buy or sell any securities, nor shall part or all of this presentation from the basis of, or to berelied 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 themanagement 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 otherfactors which may cause the actual results, financial condition performance or achievements ofthe Company or industry results materially from the results, Financial Conditions, Performance, orachievements of the Company.

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

Disclaimer


Challenges & OpportunitiesRapidly Changing Market Dynamics Are Creating Opportunities

Does your I.T. infrastructure help you achieve your business ambitions?

BUSINESS IMPLICATIONS

IMPROVE

BUSINESS AGILITY

INCREASE

SPEED TO MARKET

CONTINUOUS VIGILANCE

ONGOING COST REDUCTION

MARKET DRIVERS

VOLUMES

CLIENT NEEDS

COMPETITION

CHANNELS

REGULATION

RISK

IT REQUIREMENTS

VISIONARY DESIGN

MODULAR APPROACH

FULLY FUNCTIONAL

RAPID PROTOTYPING

BUILDING BLOCKS

SCALABLE & RELIABLE

RULES & ENGINES

INDUSTRY STANDARD


Nucleus Software will…..

TRANSFORMCHALLENGES INTO

OPPORTUNITIES

HELP YOU


Three Decades of Customer TransformationWorldwide Presence, Global Knowledge, Local Focus

3 OF TOP 20GLOBAL BANKS ARE OUR CUSTOMERS

300,000USERS LOG IN DAILYON OUR SYSTEMS

$200 BVALUE OF LOANS

MANAGED

10 TIME WINNERWORLD’S BEST-SELLING

LENDING SOLUTION

26 MTRANSACTIONS

PROCESSED PER DAY

3 DECADESDECADES OF BANKING

DOMAIN EXPERTISE

150BANKS & FINANCIAL INSTITUTION

CUSTOMERS ACROSS 50 COUNTRIES


“ We enjoy EXCELLENT RELATIONSHIP with Nucleus. All

discussions have been conducted with UTMOST PROFESSIONALISM

and DEEP UNDERSTANDING to our objectives“

Bank of Queensland, Australia

“”

“As SPECIALIST in lending, Nucleus brings in BEST PRACTICES to

the table.“

UBank, South Africa

“”

“ I am associated with FinnOne since 2003. The response time and the

skill set from your team is too good. EXCELLENT SUPPORT AND IN-DEPTH KNOWLEDGE in terms of production

support “

ICICI Bank, India

“”

“Our overall relationship with Nucleus is GOOD and we would

like to continue. We believe OUR VOICES ARE HEARD in Nucleus”

Emirates NBD, UAE

“”

“We chose FinnOne as it enjoys an EXCELLENT TRACK RECORD

for comprehensive functionality”

Bank Muscat, Oman

“”

“Nucleus has a STATE OF THE ART PRODUCT and offers very

fast implementation”

bob finance, Switzerland

“”

Helping Customers SucceedMaking Technology Work For Business Growth


Continuous Industry RecognitionAwards For Our Customers, Very Positive Analyst Reviews

TECHNOLOGY IMPLEMENTATION AWARD

ICICI BANK, 2014

THE ASIAN BANKER

MARKET LEADER & SPECIALISTVENDOR WITH STRONG

TECHNOLOGY CAPABILITY

OVUM

TRAIL BLAZER AWARDRELIANCE CAPITAL, 2015

DCB BANK, 2015CIMB, MALAYSIA, 2013

RETAIL BANKER

LEADER IN THE LENDINGSYSTEMS CATEGORY IN THE

IBS INDIAN DOMESTICSALES LEAGUE TABLE 2018

IBS

MODEL BANK VENDORAWARD 2016

CELENT

5 MOST SIGNIFICANTMOBILE BANKING

SOFTWARE VENDORS

FORRESTER

IDC INSIGHTS AWARDDCB BANK, 2016EXCELLENCE IN

TRANSFORMATIONIDC

MODEL BANK AWARDICICI BANK, 2014, 2009

VIETNAM PROSPERITY BANK, 2013HDFC BANK, 2010

CELENT

BEST LENDING TECHNOLOGY IMPLEMENTATION

OF THE YEAR AWARD, 2017

BFSI TECH


Continuous DevelopmentMore Customers in More Countries with More Products

2009

2014

2010

1994Singapore

office opens

1995

Initial Public Offering 4 times over subscribed

1998

HDFC Bank selects

FinnOne

1999

First Customer

in Japan

2003

FinnOne Live in 37 Countries

37

2005

FinnOne World’s

Best Selling

Lending Solution

1st Model Bank

Award

2nd Model Bank

Award

3rd Model Bank

Award

14th

Customer in Africa

Model Bank

Vendor Award by

Celent

FinnOne World’s

Best Selling

Lending Solution

for 7th year in a

row

FinnOne Neo and FinnAxia

launched

ICICI Bank wins Asian

Banker Award

1st Bank in South Africa

Global collaboration with Red Hat

22 Customers in Africa

ING Vysyagoes live

with FinnOne

2011 2014 2015

2013

Mobility Solutions Launched

Religaregoes Live

with mCollect

Bank Muscat goes live

with FinnOne

Ranked in Asia Fast 250

by Deloitte

2001 2008

Bussan goes live with FinnOne

Entry in Africa

2006

2015

Awarded to 3 of our customers to recognise their innovative use of advanced technology solutions

Founded in 1986 by Vishnu R Dusad, 2 years later we had 120 staff. Today 1,500 business & technology experts support of global customers.

150 customers in 50 countries

Bank of Queensland

goes live with

FinnOne

2016

IDC Awarded DCB Bank for Excellence in

transformationListed among 200 best companies in

Asia by Forbes

2016

Manappuram Finance, Essel

Finance go live with FinnOne

Neo Cloud

2017

PaySe Digital Payments

Solution available in 3 form factors

17 NBFC Customers for

FinnOne Neo Cloud

2017

Atlas Finance goes live with

Lending Analytics

Sai Point Finance goes

live with FinnOne Neo

Cloud in 4 days


Total Focus on Lending & Transaction BankingLeveraging Advanced Technology & Three Decades of Experience

VEHICLE FINANCEFLEET FINANCE

GLOBAL LIQUIDITY MGT

INVENTORY FUNDING

SERVICING FUND TRANSFER

FINANCIAL SUPPLY CHAIN MGTCOLLECTIONSBUSINESS LOAN GLOBAL RECEIVABLES

ORIGINATIONCHEQUES

PERSONAL LOAN WORKING CAPITAL

SWEEPS

ISLAMICPOOLING

BILL DISCOUNTING GLOBAL PAYMENTS ACH

AUTO LOANLENDING TRANSACTIONBANKING

Omni Channel Flexible Rules BPEL Driven Analytics Fees & Prices

Lifecycle Mgt Virtual A/Cs Formatting Alerts Commissions

EDUCATIONGOLD LOAN

FACTORING

AGRI LOAN

DIRECT DEBITS

CREDIT CARDS

MORTGAGES


CUSTOMER ACQUISITION

Digitizes loan

origination

LOAN MANAGEMENT

Handles servicing with

expertise

LOANCOLLECTIONS

Manages delinquent accounts

NUCLEUS LENDING

ANALYTICS

Data driven insights across

lifecycle

DIGITAL FRONT END

Offers lending

“on-the-go”

ENTERPRISE CONTENT

MANAGEMENT

Automates document

management

Complete Solution for Lending BusinessesEnd to end lifecycle management


FinnOne Neo Supports The Complete Loan LifecycleModular, Scalable & Flexible – it provides choice for your starting point

LENDING ANALYTICS

POINT SOLUTIONS, FULLY INTEGRATEDENGINES DELIVER BUSINESS AGILITY SCALABLE, SECURE, AVAILABLE

FULL LINE OF BUSINESS SUPPORTRAPIDLY LAUNCH NEW PRODUCTS MAKE BETTER CREDIT DECISIONS FASTER

LENDING MOBILITY

LIN

E O

F B

USI

NES

S

BUSINESSAPPLICATIONS

ORIGINATION & CREDIT APPRAISAL

CAS

LOAN SERVICING

LMS

DELINQUENCY & RECOVERY MANAGEMENT

COLLECTIONS

FINANCE AGAINST SECURITIES

FAS

FULL END-TO-END LOAN LIFECYCLE SUPPORT

ON PREMISE & CLOUD DEPLOYMENT

SME/CORPORATE

BUSINESS LOAN

INVENTORY FUNDING

WORKING CAPITAL LOAN

BILL DISCOUNTING

CREDIT CARD

CREDIT CARD

ISLAMIC

MURABHAH

IJARAH

ISTISNA

TAWARRUQ

SERVICE IJARAH

RETAIL

CONSUMER VEHICLE LOAN GOLD LOAN

MORTGAGE LOAN FLEET FINANCE

PERSONAL LOAN LOAN AGAINST PROPERTY

EDUCATIONAL LOAN COMMERCIAL VEHICLE LOAN

CONSUMER DURABLE LOAN CONSTRUCTION EQUIPMENT

TRACTOR LOAN VALUE ADDED PRODUCTS

CHANNELSMOBILE WEBSITE SOCIAL EMAIL BANK BRANCH CALL CENTRE


Give Your Business An Edge With Data Driven DecisionsLeveraging Insights Across The Lending Value Chain

Retain the profitable customers and

increase Cross-selling/Up-selling

opportunities through improved

insight into customer behaviour

CUSTOMER ACQUISITION

SERVICING

Identify and Reach the right set of

customers through the right

channels for an effective marketing campaign with accurate

segmentation & targeted marketing

Maximize collections and avoid

delinquencies with efficient

behavioral scorecard and pre

delinquency management strategies

ORIGINATION

COLLECTIONS

Acquire customers faster and

enhance loan book quality with

better decisioning by automated

credit scoring

Lending analytics delivers value at each stage of customer and loan lifecycle


Mobile Solutions For The Complete Loan LifecycleSimple, Scalable & Flexible

DELINQUENCYORIGINATION

OPERATIONSSERVICING

FINNONE NEOLENDING MOBILITY

Customer self service channel

Register service requests

Simulate foreclosure /pre-Payment report

Cross selling mechanism

Loan Origination Via SalesAgent Or Customer

Loan Underwriting & Approval

Instant Credit Check

Real Time Field Investigation

Loan Summary

EMI Schedule and Statement of account report

Instant access to loantransaction details

EOD Process Monitor

Debt Recovery

Status Recordings

Statement Deliveries

Skip Tracing

VALUE OF LOAN APPLICATIONS INITIATED VIA mCAS

$2.15 billion+

TRANSACTIONS PROCESSED VIA mServe

7.69 million+

LOAN AMOUNT COLLECTED VIA mCollect

$1.32 Billion+


FinnOne Neo Cloud DeploymentAligned to help you achieve your goals for IT Investment

Gartner reports that 50% of Banks choose cloud investments for Agility followed by Optimised Cost & Innovation*. We help deliver much more with FinnOne Neo Cloud deployment.

SECURITY

SCALABILITY

REDUCED COST

AGILITY

• Faster go to market • Quicker implementation • Enhanced business reach

• Reduced initial investment• Lower operational & maintenance costs

• Pay-per-use model• Scalability as per need• Platform agnostic setup

• Best in class security with leading cloud providers suchas Microsoft Azure, Amazon and IBM

*Gartner Report: Best practices for cloud adoption, March 2014


FinnAxia – Integrated Transaction Banking SolutionProviding Solutions Across The Entire Business Value Chain

GLOBAL RECEIVABLES

GLOBAL PAYMENTS

GLOBALLIQUIDITY

MANAGEMENT

E-FINANCIAL SUPPLY CHAIN

MANAGEMENT

DIGITAL COMPASS

OPTIMIZEWORKING CAPITAL

REAL TIME, CONSOLIDATED

VIEW

SUPPORT WHITE LABELLING

DELIVER DIFFERENTIATED

SERVICE

INCREASE STP,IMPROVE PROFITS

REGULATORYCOMPLIANCE

DRIVE BUSINESS GROWTHENHANCE OPERATIONAL EFFICIENCY,

REDUCE COSTS AND RISKSIMPROVE CUSTOMER EXPERIENCE


FinnAxia – Integrated Transaction Banking SolutionComprehensive Coverage, Unified Working Capital Management

ENTERPRISE CUSTOMER INFORMATION

GLOBAL LIQUIDITY

MANAGEMENT

CASHCONCENTRATION

STRUCTUREVISUALIZATION

SWEEP RULES /OPTIONS

INTER – COMPANYLOANS

NOTIONALPOOLING

E-FINANCIAL SUPPLYCHAIN MANAGEMENT

PURCHASE ORDERFINANCE

INVOICE FINANCING / DISCOUNTING

FACTORING

DEALER FINANCING

SUPPLIER FINANCING

ELECTRONIC BILL PRESENTMENT & PAYMENT

BILL RETRIEVAL & PRESENTMENT

BILL INVOICE CANCELLATION

ANALYTICS

BILL & BILLER SERVICE REGISTRATION

PAYER & PAYER SERVICE MAPPING

PRESENTMENTPAYMENT

ADHOC PAYMENT

SUPPORT

WHITE LABELLING

INCREASE STP,

IMPROVE PROFITS

OPTIMIZE

WORKING CAPITAL

MARKET

LEADING PRODUCTS

REAL TIME,

CONSOLIDATED VIEW

DELIVER

DIFFERENTIATED SERVICE

CHANNELSMOBILE WEBSITE ERP EMAIL BANK BRANCH FILE SERVICES

GLOBAL PAYMENTS

ACCOUNT PAYABLES

STANDING ORDERS

IW / DW

PAYROLL

ACH PAYMENTS

DOMESTIC & CROSSBORDER PAYMENTS

FASTER PAYMENTS

BANK / CUSTOMER CHEQUES

TRADE FINANCE(Front End Only)

IMPORT LC(ISSUANCE ,

AMENDMENT & ENQUIRY)

EXPORT LC ( BILL LODGMENT ,BILL & LC

ENQUIRY)

LG (ISSUANCE ,AMENDMENT

& ENQUIRY)

ENQUIRY FUCNTION

SWIFT MESSAGE & DOCUMENT

PREVIEW

GLOBAL RECEIVABLES

CHEQUE COLLECTIONS

I - ARMS

ACH COLLECTIONS

E - RECEIPTS

CASH COLLECTIONS

MANDATE MANAGEMENT

DIRECT DEBITS

PR

OD

UC

T W

OR

KB

ENC

H

J2EE, N-TIER ARCHITECTURE SOA ARCHITECTURE CLOUD READY SUPPORTS API BANKING


Well PositionedExpanding Worldwide

$17.65million

Q1 FY 2019-20 RevenueProfitable & Self Funding

Continuously profitable, with multiple revenue sources. Strong recurring revenue business model provides certainty of funding

Public Company, Zero Debt

Public ownership, with original founder still very active. Zero debt, strong cash reserves

Target Market

Banks – T1 to T4, Local, Regional & Global.

Auto Lending – in-bank and captive.

Non Bank Financial Companies

Q1 FY 20 Key Highlights

+10%Revenue YoY

-2%EBITDA YoY

-6%PAT YoY


Financial Highlights

Q1 FY 20 Q1 FY 19

RS. 124.0 CRORE

RS. 97.2 CRORE

RS. 17.9 CRORE

RS. 16.6 CRORE

RS. 5.71

REVENUE

PRODUCT

EBITDA

PAT

EPS

RS. 112.6 CRORE

RS. 90.2 CRORE

RS. 18.3 CRORE

RS. 17.6 CRORE

RS. 6.06


79%

21%

FY19

80%

20%

Q1 FY 19

78%

22%

Q1 FY 20

Revenue Breakdown - Business Segment-wise

PROJECTS & SERVICES

PRODUCT REVENUE

79%

21%

FY18

sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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28%

12%

24%

11%

17%

4% 3% 1%

Q1 FY 20

India

Far East

South East Asia

Europe/UK

Middle East

Africa

Australia

Rest of the World

Revenue Breakdown - Geography Segment-wise

33%

13%25%

10%

15%

2% 2%0%

Q1 FY 19

31%

13%

23%

10%

16%

4% 2% 0%

FY19

31%

15%

22%

10%

15%

3% 3% 2%

FY18

sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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sonali.rana

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Graphs Quarterly

112.6

121.5122.9

127.0

124.0

Jun-18 Sep-18 Dec-18 Mar-19 Jun-19

Revenue (in Rs crore)

18.3

22.8 22.2 21.5

17.9


EBITDA (in Rs crore)

17.619.1

20.7

17.1 16.6


PAT (in Rs crore)

6.066.59

7.14

5.88 5.71


EPS (in Rs )


Financials at GlanceQuarterly

In Rs. crores

QUARTER ENDEDJune-19 % QoQ YoY Mar-19 % June-18 %

REVENUE 124.0 100% -2% 10% 127.0 100% 112.6 100%

Software Dev. Exp. 86.1 69% -3% 13% 88.8 70% 76.3 68%

GROSS PROFIT 37.9 31% -1% 5% 38.2 30% 36.3 32%

Selling & Marketing .Exp. 9.1 7% 44% 2% 6.4 5% 8.9 8%

General & Admin Exp. 10.9 9% 5% 20% 10.4 8% 9.1 8%

EBITDA 17.9 14% -16% -2% 21.5 17% 18.3 16%

Other Income 6.5 5% 35% -6% 4.8 4% 6.9 6%

Depreciation 3.0 2% 63% 73% 1.9 1% 1.7 2%

PBT 21.4 17% -12% -9% 24.4 19% 23.5 21%

Taxation 4.8 4% -34% -18% 7.3 6% 5.9 5%

PAT 16.6 13% -3% -6% 17.1 13% 17.6 16%


Thank you

nucleus software investor presentation q1 fy19-20 · pre-payment report cross selling mechanism...

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