DION GLOBAL SOLUTIONS A trusted technology partner to the financial services industry Investor Presentation | Q4 FY16
AGENDA 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 or current Company business & financial expectations concerning, among other things, #3 - #9 Dion’s results of operations, financial condition, snapshot 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 occur in the future. Dion cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the Industry overview #10-#13 development of the industry in which it operates may differ materially from those expressed, implied or suggested by the forward-looking statements contained in this document. In addition, even if Dion’s results of operations, 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 or developments may not be indicative of results or Highlights & financials #14-#20 developments in future periods. Dion does not undertake to release publicly any revisions to any forward-looking statements to reflect events that occur 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
COMPANY OVERVIEW Dion is a global financial technology company Shareholding pattern 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 Promoter & Promoter Group Tech Mahindra Bodies Corporate CEO: Michel Borst FIIs CFO: Gopala Subramanium General Public (including NRIs) www.dionglobal.com www.dionglobal.com
OUR GROWTH STORY Acquired back office solution in Acquired audit solution in Won Best Wealth Management Australia (Capital Market Canada | Signed strategic solution in UK award at SITC London | Solution) & acquired geographic partnership with Tech Mahindra Won Best Implementation of a Promoted by Late Dr. Parvinder reach in Asia Pacific | Launched FATCA compliance Technology Solution award at Wealth Singh as Fortis Financial solution | Launnched OTC Briefing European Awards | Launched Services Limited derivatives pricing & valuation new mobile trading platform in solution (dfferentia) | Won Best Australia – TCMobile Company renamed Wealth Management solution in to Dion Global UK award at Systems in the Solutions | Acquired City, London IPO released & company stakes in operational listed on BSE risk management 2016 solution (Chase Cooper) in UK | 2015 Launched mobile trading solution in 2014 India Acquired the Empire Finance Company Limited in Mumbai, 2013 India 2012 2011 Launched new high frequency retail trading Won Best Wealth Management 2010 solution in Australia with solution in UK award at SITC institutional capabilities London | Launched retail 2007 (TCPro | Launched MiFID advisory solution in Australia II compliance solution in 2006 (TradeCentre) UK & Europe (Invantage MiFID II) 1996 Acquired wealth management 1995 solution in UK (Investmaster) | Achieved CMMi Level 3 & ISO 9001:2008 Acquired messaging & workflow 1994 Acquired Online trading certification for Noida development center | middleware solution in Germany solution in India (Asian CerC) Won Best Wealth Management solution in UK (Swissrisk) & expanded award at SITC London geographic reach to Europe www.dionglobal.com www.dionglobal.com
FINANCIAL SNAPSHOT (All figures are in INR crores) 6-year annual revenue 288.75 300 248.24 250 230.3 222.79 200 174.06 150 128.88 100 50 0 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 3-yr PBT* trend FY15-16 quarterly revenue 100 100 80 50 60 64.09 67.02 2.3 56.85 0 40 42.35 FY14 FY15 FY16 20 -50 0 -55.4 -57.5 Q1 Q2 Q3 Q4 -100 www.dionglobal.com *Profit before exceptional item & tax
WE HAVE DOMAIN & TECHNOLOGY EXPERTISE ACROSS… WEALTH FRONT OFFICE POST TRADE DATA & CONTENT MANAGEMENT BROKER PROFESSIONAL SERVICES MIDDLEWARE / DERIVATIVES FATCA / CRS / GRC BANK TRADING MESSAGING www.dionglobal.com www.dionglobal.com
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 www.dionglobal.com www.dionglobal.com
Overview of our target industry’s tech spend plan INDUSTRY SNAPSHOT www.dionglobal.com
GLOBAL TECHNOLOGY SPEND IN FINANCIAL SERVICES IT budgets in the global retail banking industry will rise to US$157.6bn by 2019 In US$ bn 70 9.00% 7.70% 59.3 8.00% 60 7.00% 50 43.6 6.00% 4.80% 40 5.00% 4.00% 30 2.90% 3.00% 16.8 20 2.00% 10 1.00% 0 0.00% IT spend by retail banks in 2018 Growth in IT spend by retail banks in 2018 North America Western Europe Asia Pacific North America Western Europe Asia Pacific 7% 5.6% 7.3% increase in online banking increase in multi-channel integration increase in mobile banking technology spend. and customer information systems technology spend. (MI/CIS) technology spend. Total spend of US$ 10.8bn Total spend of US$ 4.2bn in 2015 Total spend of US$ 7.3bn in 2015 in 2015 Spend in core banking platforms in global retail banking industry will rise to US$26.2bn by 2019 www.dionglobal.com Source: Ovum report on http://www.finextra.com/news/fullstory.aspx?newsitemid=25908
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 5.00% 4.50% 50% 40% 4% 40% 4.00% 3.10% 30% 24% 3.00% 19% 20% 14% 2.00% 10% 4% 1.00% 0% 0.00% Not at all Somewhat Neutral Somewhat Wholly 2013 2014 2015 unwilling willing willing Growth in IT spend by global wealth management industry Firms’ willingness to outsource tech solutions / hosting over next 3 yrs (till 2018) In million USD 60% 2000 50% 1561 1479 1403 1335 40% 1500 1275 1219 30% 1000 20% 10% 500 0% 0 Front Office Middle office Back office Distribution 2011 2012 2013 2014 2015 2016 layer Back office is main IT spend area; focus on market connectivity Client Reporting spending expected to increase 22% by 2016 has been driving front-office investment 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/ www.dionglobal.com http://wealthmanagement.me/2012/10/27/wealth-management-it-spending-a-global-perspective/
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 two biggest areas for investment are in the risk The demand drivers in financial services (FS) are governance and integration field ($22.4bn), which is strengthening as FIs look to external Software-as-a- being driven by compliance demands, stress test Service (SaaS) providers and outsourced financial reporting obligations and risk data aggregation technology (FinTech) utilities in the cloud to meet their requirements, and financial crime risk, which follows processing and regulatory compliance needs. closely behind in terms of growth, as cyber and fraud risks multiply and converge. 112 97 185,112 $8 JURISDICTIONS JURISDICTIONS FFIs BILLION per year to comply with FATCA have signed or committed to have signed or committed to registered in January out of an (Forbes) FATCA IGA CRS IRS estimated 500k Source: https://www.idc.com/getdoc.jsp?containerId=prUS25606415 www.dionglobal.com
HIGHLIGHTS & FINANCIAL www.dionglobal.com
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