DION GLOBAL SOLUTIONS A trusted technology partner to the financial - - PowerPoint PPT Presentation

DION GLOBAL SOLUTIONS

A trusted technology partner to the financial services industry

Investor Presentation | Q4 FY16

www.dionglobal.com

AGENDA

Company business & financial snapshot #3 - #9 Industry overview #10-#13 Highlights & financials #14-#20 Safe harbor / Forward- looking statements

This presentation may include forward-looking

• statements. These forward-looking statements are

statements regarding Dion’s intentions, estimates, forecasts, projections, beliefs

• r

current expectations concerning, among

• ther

things, Dion’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which Dion operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not

• ccur

in the future. Dion cautions you that forward-looking statements are not guarantees of future performance and that its actual results of

• perations, financial condition and liquidity and the

development of the industry in which it operates may differ materially from those expressed, implied

• r

suggested by the forward-looking statements contained in this document. In addition, even if Dion’s results

• f
• perations,

financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking statements contained in this document, those results

• r

developments may not be indicative of results or developments in future periods. Dion does not undertake to release publicly any revisions to any forward-looking statements to reflect events that

• ccur or circumstances that arise after the date of

this presentation.

www.dionglobal.com

We develop software solutions for the global financial services industry across the entire transaction lifecycle.

www.dionglobal.com www.dionglobal.com

COMPANY OVERVIEW

Promoter & Promoter Group Tech Mahindra Bodies Corporate FIIs General Public (including NRIs)

Shareholding pattern

• Dion is a global financial technology company
• Areas of expertise include wealth management

solutions; Broker front office, middle-ware & back office solution; FATCA CRS solution; GRC solution; Middleware & bank trading solutions; OTC derivatives pricing & risk valuation; and Data and content services.

• A presence across the global financial markets with

subject matter experts serving the specific and localised needs of financial institutions

• FY16 revenue = INR 230.30cr
• CEO: Michel Borst
• CFO: Gopala Subramanium

www.dionglobal.com www.dionglobal.com

OUR GROWTH STORY

Launched new high frequency retail trading solution in Australia with institutional capabilities (TCPro | Launched MiFID II compliance solution in UK & Europe (Invantage MiFID II) Won Best Wealth Management solution in UK award at SITC London | Won Best Implementation of a Technology Solution award at Wealth Briefing European Awards | Launched new mobile trading platform in Australia – TCMobile Achieved CMMi Level 3 & ISO 9001:2008 certification for Noida development center | Won Best Wealth Management solution in UK award at SITC London Acquired audit solution in Canada | Signed strategic partnership with Tech Mahindra | Launched FATCA compliance solution | Launnched OTC derivatives pricing & valuation solution (dfferentia) | Won Best Wealth Management solution in UK award at Systems in the City, London Won Best Wealth Management solution in UK award at SITC London | Launched retail advisory solution in Australia (TradeCentre) Acquired wealth management solution in UK (Investmaster) | Acquired messaging & workflow middleware solution in Germany (Swissrisk) & expanded geographic reach to Europe Company renamed to Dion Global Solutions | Acquired stakes in operational risk management solution (Chase Cooper) in UK | Launched mobile trading solution in India Acquired back office solution in Australia (Capital Market Solution) & acquired geographic reach in Asia Pacific 2014 2016 Promoted by Late Dr. Parvinder Singh as Fortis Financial Services Limited IPO released & company listed on BSE Acquired the Empire Finance Company Limited in Mumbai, India Acquired Online trading solution in India (Asian CerC) 1994 1995 1996 2007 2010 2011 2012 2013 2015 2006

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FINANCIAL SNAPSHOT

128.88 174.06 248.24 222.79 288.75 230.3

50 100 150 200 250 300 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16

6-year annual revenue

(All figures are in INR crores)

64.09 67.02 56.85 42.35

20 40 60 80 100 Q1 Q2 Q3 Q4

FY15-16 quarterly revenue

• 55.4

2.3

• 57.5
• 100
• 50

50 100 FY14 FY15 FY16

3-yr PBT* trend

*Profit before exceptional item & tax

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WE HAVE DOMAIN & TECHNOLOGY EXPERTISE ACROSS…

DATA & CONTENT WEALTH MANAGEMENT FRONT OFFICE BROKER POST TRADE

PROFESSIONAL SERVICES

DERIVATIVES FATCA / CRS / GRC MIDDLEWARE / MESSAGING BANK TRADING

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WE ARE A TRUSTED FINTECH COMPANY GLOBALLY

500+ staff across 19 offices globally 500+ clients in more than 85 countries 250+ strong development team 9 development centres spread across timezones

www.dionglobal.com www.dionglobal.com

SOME OF OUR CLIENTS

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INDUSTRY SNAPSHOT

Overview of our target industry’s tech spend plan

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GLOBAL TECHNOLOGY SPEND IN FINANCIAL SERVICES

IT budgets in the global retail banking industry will rise to US$157.6bn by 2019

Source: Ovum report on http://www.finextra.com/news/fullstory.aspx?newsitemid=25908 59.3 43.6 16.8 10 20 30 40 50 60 70

IT spend by retail banks in 2018

North America Western Europe Asia Pacific 4.80% 2.90% 7.70% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%

Growth in IT spend by retail banks in 2018

North America Western Europe Asia Pacific In US$ bn

7.3%

increase in mobile banking technology spend. Total spend of US$ 4.2bn in 2015

7%

increase in online banking technology spend. Total spend of US$ 10.8bn in 2015

5.6%

increase in multi-channel integration and customer information systems (MI/CIS) technology spend. Total spend of US$ 7.3bn in 2015

Spend in core banking platforms in global retail banking industry will rise to US$26.2bn by 2019

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WEALTH MANAGEMENT TECHNOLOGY SPEND

Global wealth management technology spending to reach $32bn by the end of 2017 By 2016, Celent expects global spending on external software and services will equal 57% of total global IT spending

3.10% 4% 4.50% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2013 2014 2015

Growth in IT spend by global wealth management industry

4% 14% 19% 24% 40% 0% 10% 20% 30% 40% 50% Not at all Somewhat unwilling Neutral Somewhat willing Wholly willing

Firms’ willingness to outsource tech solutions / hosting over next 3 yrs (till 2018)

Source: http://www.ovum.com/global-wealth-management-technology-spending-to-reach-32bn-by-the-end-of-2017/ IT platform and spending trends in the investment management industry by Ovum https://www.cebglobal.com/blogs/techspend-client-reporting-spending-in-wealth-management-expected-to-increase-22-by-2016/ http://wealthmanagement.me/2012/10/27/wealth-management-it-spending-a-global-perspective/

Client Reporting spending expected to increase 22% by 2016 In million USD

0% 10% 20% 30% 40% 50% 60% Front Office Middle office Back office Distribution layer

Back office is main IT spend area; focus on market connectivity has been driving front-office investment

1219 1275 1335 1403 1479 1561 500 1000 1500 2000 2011 2012 2013 2014 2015 2016

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RISK MANAGEMENT TECHNOLOGY TREND

Global expenditure on risk IT systems and services by financial institutions will be $70bn during 2016. Key drivers for FIs to invest in risk technology are regulatory, reputational and operational imperatives.

The demand drivers in financial services (FS) are strengthening as FIs look to external Software-as-a- Service (SaaS) providers and outsourced financial technology (FinTech) utilities in the cloud to meet their processing and regulatory compliance needs. The two biggest areas for investment are in the risk governance and integration field ($22.4bn), which is being driven by compliance demands, stress test reporting obligations and risk data aggregation requirements, and financial crime risk, which follows closely behind in terms of growth, as cyber and fraud risks multiply and converge.

$8

BILLION

per year to comply with FATCA (Forbes)

112

JURISDICTIONS

have signed or committed to FATCA IGA

97

JURISDICTIONS

have signed or committed to CRS

185,112

FFIs

registered in January out of an IRS estimated 500k

Source: https://www.idc.com/getdoc.jsp?containerId=prUS25606415

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HIGHLIGHTS & FINANCIAL

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KEY HIGHLIGHTS

• With the objective to reach scale and diversify, in FY12 Dion Board decided to invest organically as

well as inorganically

• Completed 3 acquisitions and developed 4 in-house products between FY12 to FY14.
• FY14 was a period of consolidation as we integrated the acquired businesses, decommissioned

below par business units and undertook cost rationalization

• FY14 also saw significant investment in 4 new products, dfferentia, FATCA, TradeCentre and D-

CLEAR and its distribution channels

• FY15 (9month revenue) saw a 30% growth year on year. Company made an overall profit of over

INR 35cr in FY15.

• In FY16, company made investments to help restructure the business, made conscious decisions to

remove low-paying customers and begin focusing on top tier customers across the globe.

www.dionglobal.com

FY16 QUARTERLY FINANCIAL SNAPSHOT

INR in crores

Q1 Q2 Q3 Q4

Revenue

64.09 67.02 56.85 42.36

Expenses

72.05 69.24 66.87 70.34

• Our

Wealth Management Solution won the Best Wealth Management Solution award for the 4th consecutive year at the Systems in the City Award, London.

• We

won the Best Implementation

• f

a Technology Solution Award at the Wealth Briefing European Awards, UK.

• Launched a new mobile trading platform in Australia

– TCMobile.

• TradeCentre continues to grow in Australia as we

sign new clients and grow product’s functionality in the region.

• Expanded reach to South Africa with our FATCA

solution – successfully implemented

• ur

FATCA solution at a leading bank in the region.

64.09 67.02 56.85 42.36

20 40 60 80 100 Q1 Q2 Q3 Q4

QoQ Revenue FY16

72.05 69.24 66.87 70.34

20 40 60 80 100 Q1 Q2 Q3 Q4

QoQ Expense FY16

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FY16 CONSOLIDATED BALANCE SHEET

Particulars As at March 31, 2016 As at March 31, 2015 Particulars As at March 31, 2016 As at March 31, 2015 ₹ ₹ ₹ ₹ EQUITY AND LIABILITIES ASSETS Shareholders' funds Non - current assets Share capital 422,274,060 422,274,060 Fixed assets Reserves and surplus 304,966,080 1,220,994,885 Tangible assets 40,737,140 48,337,330 Intangible assets 643,579,948 583,070,828 Minority Interest 91,660,859 114,615,268 Goodwill on Consolidation 3,361,912,489 3,133,538,029 Non - current liabilities Non - current investments 512,542,565 512,542,565 Long - term borrowings 41,666,667 1,715,195,046 Deferred tax assets (net) 39,874,174 39,317,852 Other long term liabilities 33,622,289 53,760,079 Long - term loans and advances 41,095,446 109,779,212 Long - term provisions 400,743,767 249,584,874 Other non - current assets 38,316,324 51,583,599 Current liabilities Current assets Short - term borrowings 2,098,123,230 1,380,962,096 Trade receivables 494,070,909 802,284,720 Trade payables 47,895,170 44,216,640 Cash and bank balances 24,920,079 322,678,220 Other current liabilities 2,645,841,639 1,245,780,787 Short - term loans and advances 974,954,184 951,333,059 Short - term provisions 86,301,585 112,265,738 Other current assets 1,092,088 5,184,060 TOTAL 6,173,095,346 6,559,649,474 TOTAL 6,173,095,346 6,559,649,474

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FY16 STANDALONE BALANCE SHEET

Particulars As at March 31, 2016 As at March 31, 2015 Particulars As at March 31, 2016 As at March 31, 2015 ₹ ₹ ₹ ₹ EQUITY AND LIABILITIES ASSETS Shareholders' funds Non - current assets Share capital 422,274,060 422,274,060 Fixed assets Reserves and surplus 1,917,979,346 2,038,237,977 Tangible assets 10,848,055 15,537,151 Intangible assets 24,214,498 24,129,406 Non - current liabilities Long - term borrowings 41,666,667 458,333,333 Non - current investments 2,512,726,759 2,512,726,759 Other long term liabilities 602,509 881,808 Long - term loans and advances 111,835,571 162,548,269 Long - term provisions 18,566,577 16,612,741 Other non - current assets 37,889,101 37,762,625 Current liabilities Current assets Short - term borrowings 1,036,819,443 570,558,927 Trade receivables 116,754,119 82,612,837 Trade payables 1,734,485 1,011,571 Cash and bank balances 991,772 260,189,630 Other current liabilities 511,423,017 469,346,604 Short - term loans and advances 1,137,284,139 878,921,684 Short - term provisions 2,569,998 2,355,400 Other current assets 1,092,088 5,184,060 TOTAL 3,953,636,102 3,979,612,421 TOTAL 3,953,636,102 3,979,612,421

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FY16 PROFIT & LOSS A/C

Particulars Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2016 Year Ended March 31, 2015 ₹ ₹ ₹ ₹ Revenue Revenue from operations 2,303,016,854 2,887,472,239 343,716,183 351,548,984 Other income 277,196,434 166,919,393 122,841,617 143,107,505 Total Revenue 2,580,213,288 3,054,391,632 466,557,800 494,656,489 Expenses Employee benefits expenses 1,779,440,766 1,661,345,991 279,161,676 279,639,018 Finance costs 346,505,806 324,300,738 186,975,234 204,593,386 Depreciation and amortization expense 194,157,703 157,453,374 12,648,917 14,606,707 Other expenses 835,199,436 887,734,914 108,030,604 119,121,167 Total Expenses 3,155,303,711 3,030,835,017 586,816,431 617,960,278 Profit/(Loss) before exceptional Item and tax expense (575,090,423) 23,556,615 (120,258,631) (123,303,789) Exceptional items 309,480,777

• Profit/(Loss) after exceptional Item and before tax

(884,571,200) 23,556,615 (120,258,631) (123,303,789) Tax expense 322,836 11,291,963

• Profit/(loss) after Tax and Before Minority

(884,894,036) 12,264,652 (120,258,631) (123,303,789) Share of Profit/(Loss) transferred to Minority (18,052,926) (26,943,468)

• Profit/(Loss) for the Year

(866,841,110) 39,208,120 (120,258,631) (123,303,789) Consolidated Standalone

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KEY GOALS FOR FY17

FINANCIAL

• EBITDA improvement
• Cash flow improvement through retirement or swapping of high

interest debt

• Aligning financial ratios to industry
• Equity capital raise to make selective investments to accelerate

growth, fund restructuring and debt retiral

• Implementation of IR/PR program

OPERATIONAL

• Restructuring of business and create individual product P&Ls
• Increase offshoring to yield additional savings
• Improve corporate systems and processes

PRODUCTS

• Rebalance product portfolio
• Focus on high margin high growth products
• Focus on building out and marketing “killer products” i.e. wealth

management, TradeCentre, FATCA suite

SALES

• Focus to high/margin-high/growth products
• Increase revenue from partners
• Aggressive & High Performing Salesforce

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ORGANIZATION STRUCTURE | LEADERSHIP TEAM

Global CEO

Michel Borst

CFO CTO HR Legal / CS Marketing Gopala Subramanium Andreas Wagner Nishtha Sareen Tarun Rastogi Vani Parmar Head of TC Head of Wealth Head of IMM/FMW Head of FATCA/CRS Head of dfferentia Head of GRC David Bowles Kean Williams Juergen Dahmen Nigel Quantick Kershasp Carnac Dave Pinder Head of TAW/RIS/D-Rive Head of Post Trade Solutions Gaurav Kohli John Brierly Administration assistant Victoria Ho

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