Results Call FY11 Q1 FY11 Q1 Forward Looking Statements Certain - - PDF document

FY11 Q1 FY11 Q1 Results Call

Forward Looking Statements

Certain statements in this presentation concerning our future growth prospects are forward looking statements which involve growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking

• statements. The risks and uncertainties relating to these

statements include, but are not limited to, fluctuations in i bilit t f ll i t t i iti earnings, our ability to successfully integrate acquisitions, competition in our areas of business, client concentration, liability for damages in our contracts withdrawal of tax liability for damages in our contracts, withdrawal of tax incentives, political instability, unauthorized use of our intellectual property and general economic conditions affecting

Proprietary and Confidential

2

• ur industry.

Linking The Past

Parameter FY08 FY09 FY10 FY11 Backlog - Long Term - Projects - RMS 8 23 26 27 Backlog - Long Term - Projects - FAS 10 11 14 12 Backlog - Long Term - Projects - Total 18 34 40 39 Backlog - for FY - Projects - RMS 28 17 8 14 Backlog - for FY - Projects - FAS 2 10 8 8 Backlog - for FY - Projects - Total 30 27 16 22 Backlog - for FY - Annuity - RMS 16 18 19 21 Backlog - for FY - Annuity - FAS 6 6 6 6 Backlog - for FY - Annuity - Total 22 24 25 27 Total Backlog 70 85 81 88 Declared Figure 70 85 56 49

Proprietary and Confidential

3

All Figures in US$ Mln.

Linking The Past

Contd.

Parameter FY08 FY09 FY10 FY11 Pipeline 310 347 360 379 Success Rate (Projected) 40% 31% 20% Success Rate (Actual) 28% 20% 18% Order Intake - RMS 48 45.5 51.33 Order Intake - FAS 38 23.4 12.02 Total Order Intake 86 68.9 63.35 Order Intake to Revenue Conversion Rate - RMS 34% 74% 70% Order Intake to Revenue Conversion Rate - FAS 70% 45% 50% Order Intake to Revenue Conversion Rate - Total 50% 64% 66%

Proprietary and Confidential

4

All Figures in US$ Mln.

Linking The Past

Contd.

Parameter FY08 FY09 FY10 OI converted to Rev. - RMS 16 34 36 OI converted to Rev FAS 27 11 6 OI converted to Rev. - FAS 27 11 6 OI converted to Rev. - Total 43 44 42 Total Revenue - RMS 60 69 63 Total Revenue - FAS 35 27 20 Total Revenue - FAS 35 27 20 Total Revenue - Total 95 95 83

Proprietary and Confidential

5

All Figures in US$ Mln.

Order Intake

100

38

70 80 90

86 68.9 63.35 23.4 12.02

30 40 50 60

FAS RMS

25 28 26 22.5 11 10 12.5 14.1 8 13 11.6 18 17.814.53 11 4.7 12.7 48 45.5 51.33 14 5 3.4 3.2 7 13 2.8 10 2.52 7 0.7 3.3 4.7

10 20 30

25 15 15 18 26 5 5.4 15.9 14.4 17.05 16 17.3

F Y 8 Q 1 F Y 9 Q 1 F Y 1 Q 1 F Y 1 1 Q 1 F Y 8 Q 2 F Y 9 Q 2 F Y 1 Q 2 F Y 8 Q 3 F Y 9 Q 3 F Y 1 Q 3 F Y 8 Q 4 F Y 9 Q 4 F Y 1 Q 4 F Y 8 F Y 9 F Y 1

Proprietary and Confidential

6

All Figures in US$ Mln.

Product Rev. – By Stream

60% 50%

FY07

30% 40%

FY08 FY09 FY10

10% 20%

FY10 FY11Q1

0% 10% License Support Cust. Managed Services 3rd Party

Proprietary and Confidential

7

Services

Product Rev. – By Geography

50% 60%

FY07

40% 50%

FY08 FY09 FY10 FY11Q1

20% 30% 0% 10% Americas EMEA APAC

Proprietary and Confidential

8

Other Metrics

Current qualified pipeline – US$ 382 Million

79% 83% 86% 75%

80% 90% 100%

67%

30% 40% 50% 60% 70% 80% 0% 10% 20% 30% FY07 FY08 FY09 FY10 FY11Q1

Share of Product Revenue in Total Revenue

Proprietary and Confidential

9

in Total Revenue

Progression Over Years – Product Business

All Figures in Rs. Mln.

4000 5000 6000 2000 3000 4000 Rev Expenses 1000 2000 Expenses

• Op. Profit
• 2000
• 1000

FY06 FY07 FY08 FY09 FY10 FY11Q1

Proprietary and Confidential

10

Operating Profit = EBITDA less Interest

Key Concern – FCCB Payback

 FCCB1 – US$ 39 mln repayable as US$ 53 mln including redemption premium – cumulative FCF in FY11 and FY12 will redemption premium cumulative FCF in FY11 and FY12 will be US$ 51 mln – almost adequate to take care of this repayment – the small gap can be funded through bank loan  FCCB2 – Original quantum of US$ 98.7 mln now stands d d t US$ 54 8 l ft t d d d i reduced to US$ 54.8 mln after converted and under conversion

• f US$ 43.9 mln worth of bonds – balance quantum is also

expected to be converted over the next 4 to 6 quarters expected to be converted over the next 4 to 6 quarters

Proprietary and Confidential

11

FY11Q1 – Key Quantitative Points

 Product Revenue has increased by 7.5% over FY10Q1 and 8.7% over FY10Q4  Product EBITDA is 31% as compared to 14% in FY10Q1 (62% increase – Rs. 326 l R 201 l ) d 30% i FY10Q4 i li ith t ti f f ll 326 mln vs Rs. 201 mln) and 30% in FY10Q4 – in line with expectation for full year FY11  Net Profit (excl Exceptional Items) is Rs 170 mln as compared to Rs 21 mln  Net Profit (excl. Exceptional Items) is Rs. 170 mln as compared to Rs. 21 mln in FY10Q1 – 8.2 times  Non linearity in business is seen when comparing revenue growth and  Non linearity in business is seen when comparing revenue growth and improvement in EBITDA  Order Intake is in line with expectation

Proprietary and Confidential

12

 Order Intake is in line with expectation

FY11Q1 – Key Qualitative Points

 ROC is continuing to gain traction – 6 contracts in the past 7 months months  Managed Services is continuing to gain traction with several multi-year multi-million dollar deals Th lti d l ill i f t i ibilit d ill l  These multi-year deals will improve future visibility and will also be extremely long term as they will be renewed  These ROC Managed Services deals will help us to increase

• ur market share

Proprietary and Confidential

13

Thank You Thank You

www.subexworld.com