investor presentation meet/131209_20140505.pdf · collections was recognized with model bank award...
TRANSCRIPT
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
Investor Presentation
1
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 ”
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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 .
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
4FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
AUSTRALIA
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
6FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
Application Development
Application Enhancement
Application Support
Application Maintenance
Application Migration
Application Rationalization
Testing
Performance Engineering
7FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© 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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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
9FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
Launched in FY 2014
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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
10FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
Launched in FY 2014
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .comFinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
BuildIP
Alliances and
Partners
NewGeographies
Alliance Ecosyste
m
Brand and Marketing
CustomerAdvocacy
Innovationled PLM
Value Based Selling
Governance
Change Management
Communication
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
• Upgrades• Agile RoadmapContinuous
• Value Model (ROI)
• Value Team
• Vendor to Business Partner
“Quantified” Value
• Function/feature leader
• Social
• Overall Experience
Multi Value
4D
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
Source: Global Banking Platform Deals 2011, Forrester Research, Inc., April 2012
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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.
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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.
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .comFinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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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.
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
24FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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)
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
@
Mr. Janki Ballabh
Chairman, Non-Executive Director
Mr. Vishnu R Dusad
CEO & Managing Director
Mr. Prithvi Haldea
Non-Executive Director
Mr. Sanjiv Sarin
Non-Executive Director
Professor Trilochan Sastry
Non-Executive Director
Mr. N. Subramaniam
Non-Executive Director
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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.
25
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .comFinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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In Rs. Crore
FinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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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
© Nucleus Sof tware Exports L td. | December 2013 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
References
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© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .comFinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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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
© Nucleus Sof tware Exports L td. | March 2014 Queries: i r@nucleussof tware.comwww.nucleussoftware .comFinnOneTM | Global No. 1 Lending Solution for 6 Consecutive years - BY IBS PUBLISHING, UK
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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
© Nucleus Sof tware Exports L td. | December 2013 Queries: i r@nucleussof tware.comwww.nucleussoftware .com
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