Polaris Financial Technology Limited

Performance for Financial Year & Fourth Quarter ended March 31, 2012

Presentation Path
1. 2.
1. 2.

Polaris 3.0 Financial Performance against 3.0 agenda

4 Year View Annual View YoY comparison

3.

3.
1. 2. 3. 4.

Polaris 4.0
Market Landscape Growth Engines for Polaris 4.0 Growth Engine 1 FT Products Growth Engine 2 FT Services

4.

Key Take-away
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Polaris 3.0 Journey

1. 2. 3. 4.

Repeatable, Predictable, Profitable Growth Changing the Business Model From One Value Pyramid to Two Value Pyramid Building Customer trust and value delivered thru solution

Financial Performance Against Polaris 3.0 Agenda

Doubling Revenues and PBDT in 4 years

Revenue (INR Cr)
2,250 2,000

PBDT

2,052

1,750
1,500 1,250 1,000 750 500 250 0

1,586
1,376 1,098

1,353

136 FY 07 - 08

189 FY 08 - 09

214

272

331

FY 09 - 10

FY 10 -11

FY 11 - 12
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Intellect grew 43% ; Services grew 25%

(FY12 vs FY11) INR

Intellect Revenue Growth 43% INR 517 cr from INR 361 cr

Total Revenue Growth 29% INR 2,052 cr from Rs. 1,586 cr Operating Profit (EBITDA) Growth 39% INR 397 cr from Rs. 286 cr
Net Profit Growth 9% * INR 221 cr from INR 202 cr EPS Growth 9% * INR 22.22 from INR 20.43 * Post STPI Benefits

Intellect crosses 500 Cr in Revenues

(Q4 12 vs Q4 11) INR

Total Revenue Growth 19% INR 520.28 cr from INR 437.53 cr Intellect Revenue Growth 14% INR 116 cr from INR 102 cr Operating Profit (EBITDA) Growth 27% INR 90.67 cr from INR 71.25 cr

PAT Growth 6% * INR 61.14 cr from INR 57.58 cr

* Post STPI Benefits

Composition of Q4FY12 Values in INR

Note: The results of Polaris FT Consolidated is unaudited and factors the proposed demerger of Optimus which is under the process of approvals from the courts.

Q4 FY12 Polaris FT MIS

Q4 FY11 Q4 FY12
USD INR Rate (average) USD INR Rate (closing) 45.26 44.60 514 81% 18.00% 45 50.26 50.88 390 81% 15.60% 63

Cash & Cash Equivalents (INR Cr)

Capacity Utilization (%) Attrition (%) DSO Days

Revenue Guidance: Polaris is expect to grow at 17% - 20% for the fiscal year ending March 31, 2013; Revenues are expected to grow in the range of Rs 2400 Rs 2460 crore.
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Management View
Arun Jain, Founder, Chairman & CEO, Polaris Financial Technology Limited said, It is satisfying to see that our Polaris 3.0 strategy of Repeatable, Predictable and Profitable growth has paid off. In the last four years, revenue in both product business as well as services doubled and PBDT grew from Rs 135 crore to Rs 330 crore. As we embark on the Polaris 4.0 phase of our growth journey with the two well-defined business value pyramids - products and services- Polaris is uniquely positioned to double its revenue in the next 4 years.
Govind Singhal, President & COO, Polaris Financial Technology Limited said, As we understand the momentum of outsourcing is slowing down worldwide as predicted by Nasscom, value differentiation is key to winning business from existing players. We are working on more than 6 RFPs that came for renewal. Ramaswami SR, CFO, Polaris Financial Technology Limited said, In our portfolio of 22 products, 2 products crossed Rs. 100 crore revenue each and 3 products crossed Rs. 50 crore. At this point of time we will be investing additional Rs. 50 60 crores in sales and marketing to get full benefit of the traction in the marketplace in the year.
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Polaris FT Sourcing Stock Take

Polaris FT Services revenue crosses 1,500 Cr. (1,534 Cr.) Polaris FT Sourcing records 77% growth between FY08 to FY12 Balanced revenue distribution across geographies Sustained Expansion in Existing Accounts

Deal Inroads of FT Sourcing in FY12 A leading financial institution in the Middle East picked Polaris consultancy services to build Testing Practice CoE A leading insurance company in Asia chooses Polaris' front end system for the APAC region. A Ireland Client has signed a deal with Polaris to streamline its transformation program. The leading Stock Exchange in the United States signed Polaris to deploy its FT services

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Q4 FY12 Polaris FT FT Services

Client Concentration
Top 10 Top 5

Q4 FY11 Q4 FY12
54.64% 40.61% 52.77% 38.97%

Split of business by delivery model

by Revenues
Onsite Offshore

Q4 FY11 Q4 FY12
42.29% 57.71% 42.17% 57.83%

by Effort
Onsite Offshore

Q4 FY11 Q4 FY12
22.77% 77.23% 21.74% 78.26%

Geography Split
Americas Europe Rest of the World

Q4 FY11 Q4 FY12
43.93% 24.07% 32.00% 47.77% 23.69% 28.54%
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Polaris FT Intellect -- Global Acceptance of Intellect

Intellect contribution crosses Rs. 500 Cr (Rs.517 Cr) Intellect Revenue Growth of 43% in FY12 FY 12 Intellect Contribution to Revenues 25% 47 Intellect Wins in FY 12 IntellectTM FABX - iPad version launched at New York

Deal Inroads of Intellect in FY12 Central Bank core replacement @ RBI 15 year deal with large Norwegian Bank Largest Bangladesh bank signs Intellect Sonali Bank Multi country roll out deal with large Asia Pacific Bank
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Q4 FY12 Polaris FT Intellect Product

Q4 FY11 Q4 FY12
Intellect Wins 16 11

Intellect (%) of Total Revenue

23.39%

22.25%

Geography Split Americas Europe

Q4 FY12
18.00% 30.00%

Rest of the World

52.00%

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Product Growth Biz Model

Phenomenon of Product Business Saturation Our strategy : Multi-Product streams Phase 1 GTM for 5 Products

CBC Wealth Lending Liquidity Portals

So, Where are we against these Product Lines ?

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PRODUCT REVENUE LEVEL

Above 100 Cr

GL

CRX

PRODUCT Presence
CORE BANKING
30
25
NUMBER OF ACCOUNTS

20 15 10 5 0
Americas Europe
REGION

Apac

Imea

PRODUCT Presence
CASH MGMT

20 18 16
NUMBER OF ACCOUNTS

14 12 10 8 6 4 2 0
Americas Europe
REGION

Apac

Imea

PRODUCT Presence
CBX

7 6
NUMBER OF ACCOUNTS

5 4 3 2 1 0
Americas Europe
REGION

Apac

Imea

PRODUCT Presence
HUB

4
NUMBER OF ACCOUNTS

3 2 1 0
Americas Europe
REGION

Apac

Imea

PRODUCT Presence

Security
20
NUMBER OF ACCOUNTS

15
10 5 0 0 0.5 Americas 1 1.5 Europe 2
REGION

2.5

Apac3

Imea 3.5

Launching Polaris 4.0

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Our World of Opportunities

World 1

This comprises financial institutions in highly developed countries like US, Western Europe that adopted technology to optimize financial operations more than 30 to 40 years ago. This world spends close to 5% of the revenues on technology and its upgrade

World 2

This world is made up of emerging countries where financial institutions embarked on their technology journey in the 90s and accelerated their technology adoption in the last decade. This segment invests close to 2% on technology, and their requirements are for new products that enable them to acquire new customers and increase their speed and scale of operations. Includes the small banks both in the developed markets and the emerging markets. These are the banks that have superior relationships and a superior understanding of the local markets but are unable to compete with the larger banks.
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World 3

Polaris Offerings

World 1 Business Outcome outsourcing Operations Productivity improvement using CBX and HUBs technology. IPADs technology for Branch, Relationship Managers and Executive Dashboards. Core Banking Replacements. Promo for Insurance World 2 Global Transaction Banking Treasury and Capital Markets SME and Agri Lending products HNI and Private Banking Insurance : Underwriter Work station, Claims, FNOL Government Citizen exchange Central Bank World 3 Universal banking Lending & Credit Card Mobile Banking Capital Market infrastructure Central Bank Global Social Media Secure Infrastructure

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2-Value Pyramids
Customer Value Creation

Level-5

Mature

Portal

Level-4

Stage-5

Data

Level-3 Stage-4 Level-2 Level-1 Stage-3

RIM

Testing

Stage-2

FT Research

Application Managed Services

Stage-1

Technology Value Pyramid 1

Product Value Pyramid 2

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In Summary

Value Pyramid 1 FT Services

Chosen Strategic Accounts Customer-focused Governance Structure Level 5 Value Creation Value added at Infrastructure, technology, Operations, Business Solution & Transformation levels
Every year we add 2-4 Products to our GTM Our Focus : Reduce Cycle time from launch to 100 Cr from 7 years to 5 years Silver Bullet Global Roll Out

Value Pyramid 2 FT Intellect

Customer-Aligned Research
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Unique FT Position
1.

Among the top 10 companies in the Global FT 100 that achieved 100% growth in the last 4 years

2.

Polaris Product Biz, FT Intellect, crossed the significant milestone of Rs 500 Cr in just 7 years

3.

Two Value Pyramids to maximize Customer Value

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Thank You

COPYRIGHT NOTICE Copyright 2012 Polaris Software Lab Limited All rights reserved. These materials are confidential and proprietary to Polaris and no part of these materials should be reproduced, published in any form by any means, electronic or mechanical including photocopy or any information storage or retrieval system nor should the materials be disclosed to third parties without the express written authorization of Polaris Software Lab Limited.

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