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

Results Call FY11 Q1 FY11 Q1

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 earnings, our ability to successfully integrate acquisitions, i bilit t f ll i t t i iti 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 our industry. Proprietary and Confidential 2

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 All Figures in US$ Mln. Proprietary and Confidential 3

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% All Figures in US$ Mln. Proprietary and Confidential 4

Linking The Past Contd. Parameter FY08 FY09 FY10 OI converted to Rev. - RMS 16 34 36 OI converted to Rev. - FAS OI converted to Rev FAS 27 27 11 11 6 6 OI converted to Rev. - Total 43 44 42 Total Revenue - RMS 60 69 63 Total Revenue - FAS Total Revenue - FAS 35 35 27 27 20 20 Total Revenue - Total 95 95 83 All Figures in US$ Mln. Proprietary and Confidential 5

Order Intake 100 86 90 80 68.9 63.35 70 38 60 23.4 12.02 FAS 50 RMS 40 28 22.5 5 26 26 25 25 30 30 17.05 48 45.5 51.33 17.3 18 4.7 10 15.9 16 20 15 15 13 14.4 14 3.2 2.52 3.4 7 3.3 2.8 5.4 5 7 10 18 17.814.53 12.5 14.1 13 11.6 12.7 11 10 11 0.7 8 4.7 0 1 1 1 1 2 2 2 3 3 3 4 4 4 8 9 0 Q Q Q Q Q Q Q Q Q Q Q Q Q 0 0 1 Y Y Y 8 9 0 1 8 9 0 8 9 0 8 9 0 F F F 0 0 1 1 0 0 1 0 0 1 0 0 1 Y Y Y Y Y Y Y Y Y Y Y Y Y F F F F F F F F F F F F F All Figures in US$ Mln. Proprietary and Confidential 6

Product Rev. – By Stream 60% 50% FY07 40% FY08 FY09 30% FY10 FY10 FY11Q1 20% 10% 10% 0% License Support Cust. Managed 3rd Party Services Services Proprietary and Confidential 7

Product Rev. – By Geography 60% FY07 50% 50% FY08 FY09 40% FY10 FY11Q1 30% 20% 10% 0% Americas EMEA APAC Proprietary and Confidential 8

Other Metrics Current qualified pipeline – US$ 382 Million 100% 86% 90% 83% 79% 75% 80% 80% 67% 70% 60% 50% 40% 30% 30% 20% 10% 0% FY07 FY08 FY09 FY10 FY11Q1 Share of Product Revenue in Total Revenue in Total Revenue Proprietary and Confidential 9

Progression Over Years – Product Business All Figures in Rs. Mln. 6000 5000 4000 4000 3000 Rev 2000 2000 Expenses Expenses Op. Profit 1000 0 FY06 FY07 FY08 FY09 FY10 FY11Q1 -1000 -2000 Operating Profit = EBITDA less Interest Proprietary and Confidential 10

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 reduced to US$ 54.8 mln after converted and under conversion d d t US$ 54 8 l ft t d d d i of 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 mln vs Rs. 201 mln) and 30% in FY10Q4 – in line with expectation for full 326 l R 201 l ) d 30% i FY10Q4 i li ith t ti f f ll 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  Order Intake is in line with expectation Proprietary and Confidential 12

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  These multi-year deals will improve future visibility and will also Th lti d l ill i f t i ibilit d ill l be extremely long term as they will be renewed  These ROC Managed Services deals will help us to increase our market share Proprietary and Confidential 13

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