Silverlake Axis Ltd Corporate Presentation November 2014 - PowerPoint PPT Presentation

Silverlake Axis Ltd Corporate Presentation November 2014

Disclaimer This presentation may contain statements regarding the business of Silverlake Axis Ltd and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically identified by words such as ‘believe’, ‘estimate’, ‘intend’, ‘may’, ‘expect’, and ‘project’ and similar expressions as they relate to the Group. Forward looking statements involve certain risks and uncertainties as they relate to future events. Actual results may vary materially from those targeted, expected or projected due to various factors. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, interest rate charges and regulatory developments. Such factors that may affect the Group’s future financial results are detailed in our listing prospectus / circulars, listed in this presentation, or in the management discussion and analysis section of the company’s result report and filing with the SGX. The reader is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward looking statements. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Silverlake Axis or any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss arising, whether directly or indirectly, from any use or distribution of this presentation or its contents. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in Silverlake Axis. 2

Presentation Outline I nvestment Merits Business Overview Major Developments Results & Financials Prospects 3

Key Points  A leading I T software and services company in the high growth Asia Pacific Region - 40% of leading SE Asian banks use Silverlake’s software and services - 25 years track record of successful implementation of Silverlake’s enterprise software applications in over 150 customer sites with 100% success rate  Earnings turnaround with EPS growth in FY2011, FY2012, FY2013 & FY2014  Positive trends in banking industry Increasing need of a common core platform for regional banks as well as need to keep up with regulatory changes, compliance and competition  Strong balance sheet with net cash of RM421.0m as of 30 September 2014  Strong margins above most peers Strong EBIT margin with growth in SIBS licensing and maintenance & enhancement services revenue from new contracts 4

Presentation Outline Investment Merits Business Overview Major Developments Results & Financials Prospects 5

Company Profile Silverlake is a leading provider of Digital Economy Solutions and Services for the banking and financial services, payments, retail, logistics and insurance businesses. We provide comprehensive methods and tools, business applications and integration technologies, implementation and application management services to deliver successful business strategy and operation transformations for our customers Silverlake Axis Group Core Banking, Payment, Core Banking, Payment, Expanding Market & Digital Retail, Insurance Industry Retail, Insurance Industry Economy Business Software Business Services Business Intellectual Property Implementation Services ASEAN, China, Japan Development Intellectual Property Application Maintenance & Asia Pacific Economies Licensing Management Services 6

Business Evolution & Transformation FY 2014 Revenue RM500.7 mil Credit and Sale of I nsurance Cards Hardware Processing Processing FY 2008 Revenue Products RM19.0 m RM19.5 m Asia’s RM146.9 mil 4% RM32.4 m 4% 6% Largest FY 2005 Revenue Sale of Hardware Software Project Application RM27.8 mil Digital Products Services RM71.8 m Maintenance & Sale of Branch 14% Branch Banking Enhancement Banking RM20.9 m Economy Maintenance Services RM16.4 m Licensing of 14% Solution RM210.3 m RM8.4 m 11% Application Software Licensing Solutions 42% 30% RM19.0 m RM147.7 m of SI BS RM19.4 m 14% Branch 30% RM90.6 m 70% Company Banking 61% Maintenance Sale of Branch Banking Solution 2003 to 2005 2006 to 2009 2010 to 2014 2015 & Beyond Axis Systems Limited Silverlake Axis Limited SSB, QR, Isis, ( Listed on SGX in 2003 ) (Post SIBS Acquisition 2006) Merimen & CVSB Acquisitions Digital Economy Transformation Structured Software Maintenance Delivery Channels & Branch Core Banking & & Project Services, Retail, Partnerships + + + Banking Payments Solutions Logistics, Integration Software, Across Asia and Solutions Insurance, Mobility & Internet Beyond Solutions Note: Silverlake Solution Limited (SSB), QR Technology Sdn Bhd (QR), Isis 7 International Pte Ltd (Isis), Merimen Group, Cyber Village Sdn Bhd (CVSB)

Business Overview A leading long term value based provider of core banking, insurance, payment and retail solutions and application 1989 services to major financial institutions, retailers and conglomerates in Asia since of leading South-East Asia banks use the Silverlake 40% Axis Integrated Banking Solution (SIBS) to process their banking transactions everyday success track record in delivering End-to-End Core Banking, Payment and Retail solutions 100% implementation and enhancement, backed by strong management and key software development team Provides proven, cost-effective and innovative front, middle and back office banking, payment, insurance and retail solutions 8

Business Model Insurance Processing Credit & Sale Of Software & Cards Hardware Processing Products Software Maintenance & Project Enhancement Services Services Software Licensing 9

Growing Core Customer Revenues Cumulative Revenue Per Customer Relationship Increasing Value Add to Customers Software Licence Expansion/ Upgrade Software Licence Expansion/ Upgrade Software Time Series Recurring License License Revenue Maintenance & Annual Recurring I nitial Enhancement Maintenance Revenue Services Software License Repeatable Project Project Services Implementation Revenue Time 10

Leading & Growing Market Share Silverlake Axis Has More Than 150 Customers Who Are Leaders in the Markets They Serve and Known for Their Products & Services Innovation and Operational Excellence LEADI NG MARKET SHARE Core System Platform Partner of Choice for 3 of the 5 Largest ASEAN Financial I nstitutions Over 40% of the Top 20 Largest Banks in South-East Asia run on SI BS EXPANDI NG MARKET SHARE Anchor Customers in China, Japan, Middle East, South Asia Silverlake Customer As of Aug. 12, 2014 As of Jan. 1, 2005 Source: Bloomberg 11

Leadership in Asia Pacific Market Country Prominent Core Banking Applications Australia Internal/ Older proprietary, SAP , Oracle, Hogan China Local/ Internal/ Older Systems, Temenos, TCS Hong Kong Local/ Internal/ Older Systems India Infosys, Oracle, TCS FNS Silverlake Axis Indonesia Silverlake Axis Malaysia Philippines Silverlake Axis , FIS, Infosys Singapore Silverlake Axis South Korea Local core banking applications, Hyundai Taiwan Internal and proprietary systems Thailand Silverlake Axis , FIS Vietnam Silverlake Axis , Temenos, Hyundai Note: The list of prominent core banking vendors in each market changes when non-top 10 institutions are included Note: The list of prominent core banking vendors in each market changes when non-top 10 institutions are included Source: Table 1 - Leading Core Banking Players in the Top 10 Bank Segments in 12 Asia/Pacific Countries, IDC Financial Insights, 2013 12