Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 2 How did we get here?
POLARIS Software Lab Incorporated Orbitech Merger CAGR of over
22.3% for the last 6 years 1993200220061999 Listed on major stock
exchanges Major transformation 1999 Key statistics Revenues $14mn
Headcount 885 2006 Key statistics Revenues $187mn Headcount
6092
Slide 3
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 3 Polaris Today Business
Global presence Customer profile Global Solutions Specialist with a
dedicated focus on the Banking, Financial Services and Insurance
vertical 20 years of experience in BFSI Banking, Financial Services
& Insurance Over 2,500 projects and 28,000 person years of
experience Global Delivery Capabilities(10 development centers) 22
relationship offices across 14 countries 16 Business Solution
Centers Employees Financials 6000+ associates FY 06 Revenues:$187mn
EBITDA:$17.4 mn Zero debt, Large Cash Reserves Focused on Long-Term
Customer Relationships(Repeat business of over 86%) 2nd longest
single relationship with global customers (20 years)
Slide 4
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 4 Organization structure
Board of Directors Business Leadership Council Sales Customer
Corporate functions Marketing Quality & Process management
Relationship Banking Center Smart Legacy Modernization Center
Insurance Center and Enterprise Innovations Capital Markets Center
Corporate Banking Center Technologies for Globally Efficient
Enterprises SmartBuild Architecture Group Business Process
Outsourcing
Slide 5
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 5 Polaris positioning
Proven point solutions leveraging innovative processes and
technology that have been delivered cost effectively and provided
significant business benefits in terms of risk mitigation, TCO and
time to market. Application management services to maintain,
reengineer, aggregate and. upgrade portfolios of custom
applications cost-effectively, by leveraging Polaris continuously
replenished warehouse of intellectual property Calibrated
modernization of existing legacy platforms in a non-disruptive
manner by way of deployment of innovative (SmartBuild) solutions
that are SOA compliant and backward compatible. Provider of Smart
Legacy Modernization services to the worlds leading banks and
financial institutions
Slide 6
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 6 Polaris Business model:
100-5-7 100 Relationships Build a few (but more than a handful)
long-term relationships 5 Values to be delivered to the customer
Cost Quality Reliability Flexibility Time to market Using the 7
Levers 1.Technology Knowledge 2.Domain Knowledge 3.Customer
Environment Knowledge 4.Process 5.Methods and Tools 6.Reusable
components 7.Energy and Passion of People
Slide 7
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 7 On our way to a global
BFSI player TechnologyDeliveryQuality C O M P E T E N C I E SC A P
A B I L I T I E S StrategyLeadershipBranding COMPREHENSIVE
OFFERINGS PORTFOLIO Products Solutions Fixed Bid Projects Business
Processes Strategic Outsourcing BUILDING & GROWING STRATEGIC
PARTNERSHIPS Products Solutions Fixed Bid Projects Business
Processes COMPREHENSIVE OFFERINGS PORTFOLIO R E S O U R C E S
Slide 8
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 8 Polaris Business Mix
Banking, Financial Services & Insurance Sectors Run-the-Bank
Offerings Change-the-Bank Offerings Horizontal Practices
Operate-the-Bank Offerings
Slide 9
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 9 Polaris Business Mix
Banking, Financial Services & Insurance Sectors Change-the-Bank
Offerings Horizontal Practices Operate-the-Bank Offerings Global
ATM networks Core Banking Credit Card Processors Lending Mortgage
Processing Insurance Securities Custody Derivatives/Fixed
Income/Equities Wealth Management Corporate Banking Treasury Cash
Trade Finance SAP Oracle BaaN Mainframe
Slide 10
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 10 Polaris Business Mix
Banking, Financial Services & Insurance Sectors Horizontal
Practices Operate-the-Bank Offerings Global ATM networks Core
Banking Credit Card Processors Lending Mortgage Processing
Insurance Securities Custody Derivatives/Fixed Income/Equities
Wealth Management Corporate Banking Treasury Cash Trade Finance SAP
Oracle BaaN Mainframe MCI SLM for Credit Cards Home Lending
Originations Branch Renewal Internet banking STP Lending Front end
Integration using workflow and portal Client service Platforms for
Private Banks SLM Custodial solutions Liquidity Sweeping &
Pooling Corporate Online Treasury MM/FX Global roll Out TechPort
Global Dashboards and Analytics Imaging and Workflow with ERP
Slide 11
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 11 Polaris Business Mix
Banking, Financial Services & Insurance Sectors Horizontal
Practices Global ATM networks Core Banking Credit Card Processors
Lending Mortgage Processing Insurance Securities Custody
Derivatives/Fixed Income/Equities Wealth Management Corporate
Banking Treasury Cash Trade Finance SAP Oracle BaaN Mainframe MCI
SLM for Credit Cards Home Lending Originations Branch Renewal
Internet banking STP Lending Front end Integration using workflow
and portal Client service Platforms for Private Banks SLM Custodial
solutions Liquidity Sweeping & Pooling Corporate Online
Treasury MM/FX Global roll Out Hosted ServicesTransaction
ProcessingVoice Based Services
Slide 12
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 12 Polaris Business Mix
Banking, Financial Services & Insurance Sectors Global ATM
networks Core Banking Credit Card Processors Lending Mortgage
Processing Insurance Securities Custody Derivatives/Fixed
Income/Equities Wealth Management Corporate Banking Treasury Cash
Trade Finance SAP Oracle BaaN Mainframe MCI SLM for Credit Cards
Home Lending Originations Branch Renewal Internet banking STP
Lending Front end Integration using workflow and portal Client
service Platforms for Private Banks SLM Custodial solutions
Liquidity Sweeping & Pooling Corporate Online Treasury MM/FX
Global roll Out Hosted Services Transaction ProcessingVoice Based
Services Siebel, BI/DW, Linux, Rational, PACE, Portals, dotNET,
Imaging & Workflow, Infrastructural Management, Professional
Services
Slide 13
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 13 Why customers choose
Polaris? Solution Expertise Reliable Solutions Speed To Market
Higher Savings Thought Leadership & Innovation Process
Capabilities Polaris has been able to deliver reliable solutions in
more than 150 countries over the past 20 years because of its
strong domain expertise, proven delivery capabilities, tools and
processes 72 country Risk Management solution 60 country Trade
Finance solution 23 country Treasury solution 32 country Cash
Management Solution 3 continent ATM solutions Multi-currency,
multi-lingual, multi-entity
Slide 14
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 14 Why customers choose
Polaris? Solution Expertise Reliable Solutions Speed To Market
Higher Savings Thought Leadership & Innovation Process
Capabilities Speed to Market through knowledge reuse of 750+ domain
experts involved in developing BFSI solutions over the last 19
years Reuse of use cases and test scripts for multiple banking
business processes Speed to Market using SMARTBUILD; through
Component reuse of 56 Modular GeneS designed for Universal Banking
needs Delivered a Working Capital Management solution for a large
Asian bank in 6 months reusing Polaris Payments, Optimization and
reconciliation GeneS Implementation of Fund transfer, Relationship,
ATM, Funds Loans and Swift modules in the core banking
infrastructure of large Japanese Bank resulted in 4 calendar years
savings
Slide 15
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 15 Why customers choose
Polaris? Solution Expertise Reliable Solutions Speed To Market
Higher Savings Thought Leadership & Innovation Process
Capabilities Polaris ENTITY model and Domain Expertise have
resulted in reduced total cost of ownership Multi-vendor and
Virtual delivery model in the development of end to end retail
banking solutions resulted in savings of $50 MM over a period of 5
years for a large Japanese Bank Global Support of ATM solutions
through the onsite and offshore model have resulted in savings of
$50 MM for a large MNC Bank Offshore Development and Support of
Custody Solution have resulted in savings of $40 MM for a Global
MNC
Slide 16
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 16 Why customers choose
Polaris? Solution Expertise Reliable Solutions Speed To Market
Higher Savings Thought Leadership & Innovation Process
Capabilities Polaris has delivered market differentiating solutions
to large global MNCs in the past 2 decades: First global Credit
Cards solution in open architecture dramatically reduced processing
costs (Smithsonian Award) Delivered market differentiating
Automated Cash Management System in early 90s which was later
implemented in 30 countries Improved transaction throughput &
customer service for the highly competitive and low margin Trade
Finance business through global consolidation of platform and
transaction processing Reduced technology cost per transaction by
delivering the first global Core Banking solution in a distributed
architecture First global Corporate Banking portal empowering users
to transact rather than merely query
Slide 17
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 17 Why customers choose
Polaris? Solution Expertise Reliable Solutions Speed To Market
Higher Savings Thought Leadership & Innovation Process
Capabilities Laser beam focus on various sub-verticals within the
BFSI domain through internal alignment. This ensures an in-depth
understanding of Industry practices, an awareness of Industry
trends & an appreciation of Industry specific nuances: Consumer
Banking Corporate Banking Wealth Management Brokerage &
Securities Insurance
Slide 18
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 18 Why customers choose
Polaris? Solution Expertise Reliable Solutions Speed To Market
Higher Savings Thought Leadership & Innovation Process
Capabilities Stringent adherence to Quality standards such as ISO,
CMM and Six Sigma Continuous process improvement and process
streamlining to ensure resource optimization Effective use of Tools
to monitor and control processes providing transparency Internal
metrics and performance measures reviewed by top management on a
monthly basis Escalation procedures and Change Control Board in
place to effectively manage change and resolve issues
Slide 19
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 19 How did we acquire this
capability? Single Customer Turnaround time & Quality of
delivery as Key Success Factors (KSF) Single Customer Co-author
customer growth thru technology led innovation as KSF Single
Customer Customer relevant Competency additions, Domain Grasp as
KSF Multiple Relationships Domain Focus, Large Soln Delivery
Precision, Customer need Sensitivity as KSFs Multiple Relationships
Domain expertise Competency Map Width Delivery precision as KSFs
Multiple Relationships Domain expertise Solution Supermarket Buy,
Build & Rapid Deploy as KSFs 19901990 19951995 19841984
19991999 20022002 20 year history with Citibank Citigroup
relationship stands at USD 105MM for FY05(single largest offshore
solutions partner) Started as supplier to Citibank India retail
business and today support solutions and services in more than 70
countries, 120 locations across all lines of business in the
Citigroup world. Citigroup accumulated relationship of solutions
worth over USD 1 Billion over the last decade
Slide 20
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 20 Quality process in
Polaris First company in the world to be assessed at CMMi Level 5
ISO 9001:2000 certified Independent Software Engineering Process
Group Over 700 Person years of Quality Engineering experience
Largest pool of IFPUG Certified FP specialists (CFPS) amongst
Indian Companies Mature and uniform FP counting methodology across
the organization ensuring uniform implementation 1991 1995 1999
2001 TQM Practice SEI CMM Level 3 ISO 9001 SEI CMMi Level 5 &
ISO 9001 : 2000 Polaris Quality Journey
Slide 21
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 21 Service offerings
Application Development Re-engineering Maintenance Solution
Integration Global Deployment Application Certification Business
Consulting Front end Technology Internet Technology Customer
Relationship Management Enterprise Knowledge Management Network
Management Mainframe Middleware Technology Mobile Technology
Enterprise Resource Planning Enterprise Application Integration
Application Certification Data Warehousing
Brokerage&SecuritiesBrokerage&Securities
Brokerage&SecuritiesBrokerage&Securities
CorporateBankingCorporateBanking CorporateBankingCorporateBanking
InsuranceInsurance InsuranceInsurance
ConsumerBankingConsumerBanking ConsumerBankingConsumerBanking
WealthManagementWealthManagement WealthManagementWealthManagement
Verticals Horizontals
Slide 22
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 22 Service Oriented
Architecture Service-Oriented Architecture is an IT and Business
strategy that organizes the discrete functions contained in an
enterprise applications into interoperable, standards-based
services that can be combined and reused quickly to meet business
needs. What is SOA? Business agility depends on the free flow of
information, services and business processes across the
organization. However this flow is stymied by the heterogeneous
nature of the typical large enterprise. Multiple platforms (IBM,
BEA, Microsoft, SAP, Oracle etc) and technologies (J2EE,.NET,
Legacy, etc.) require IT to hard code the point to point
connections, hampering the swift flow of information and slowing
the delivery of new business services. Service Oriented
Architecture (SOA) has emerged as the leading IT strategy for
streamlining service delivery. SOA takes the discrete business
functions contained in enterprise applications and organizes them
into interoperable, standards-based services that can be quickly be
combined and reused in composite applications and processes. The
desire for Organizations to be service driven is creating a
significant pull for IT to adopt SOA. Why SOA?
Slide 23
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 23 SOA gaining priority in
the marketplace
Slide 24
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 24 SOA wave and
Componentisation has been endorsed and adopted by many leading
vendors and analysts SOA wave and componentization has been
endorsed and adopted by many leading technology vendors... Software
product companies Software Services companies 70% of CIOs plan to
invest in SOA 45% of banks have some SOA plans over the next year.
27% of banks are already adopting SOA, nearly 1/3 of them
enterprise-wide. Companies are beginning to realize and articulate
significant benefits from SOA Yankee survey IDFC survey Infoworld
survey
Slide 25
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 25 SOA oppurtunity While
most large banks have existing offshore relationships, degree of
work offshored varies widely offering Polaris window of opportunity
A new vendor like Polaris can enter our banks, if it has some
specific business expertise, in new and growing areas such as
derivatives VP, IT, Top tier, Wholesale bank The biggest proof
point for us is internal. If you have delivered something well then
there is no reason why you cant get more business VP, Vendor
Management, Investment Bank Per cent of total workforce relocated
Number of FTEs relocated* 10 10,000 Market shapers Building the
platform 20 Ahead of the pack 12,000 Customers are open to giving
vendor like Polaris a chance *Includes some BPO revenue in cases
where it is not separately broken out Source: Press releases;
company websites
Slide 26
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 26 Product offering What
are GeneS? Intellect Suite is designed and built with re-usable
components called GeneS (Generalised Services). Several GeneS come
together to form a product. Intellect Suite has over 56 GeneS in
different combinations to develop a variety of banking solutions.
Being functional-centric components, many GeneS are common across
solutions. Intellect Suite TM is an enterprise platform that meets
the needs of retail, private and corporate bankingDesigned using
J2EE technology Over 56 modular components or GeneS for 10 banking
business lines Supports over 10 million customers Developed on
contemporary technology (Open API standards) enabling easy
integration with legacy systems Web-enabled, multi-currency and
multi-lingual Intellect suite Infrastructure CardsTreasury Loans
Portfolio Mgt Trade Cash Mgmt Core Banking Integrated
Multichannel
Slide 27
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 27 Products GeneS
(Generalised Services) RUSAs (Reusable Software Assets ) APIs
(Application Programming Interfaces ) Intellect Suite Built on
Component based Architecture
Slide 28
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 28 Intellect
Suite-Underlying GenesCustomerCommunication Dr. CardMgmt Dr. Card
Mgmt TimeDeposits Reports Statements Parameters Relationship
Current&Savings Charges Teller Recon Limits Integrator GL Sign
Payments
Slide 29
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 29 Smart Build value
proposition a LendingCore Customer Fee CollateralGeneS Source Code
Accelerated Build Integrated best of Breed Integrator Web services
SmartBuild Value proposition
Slide 30
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 30 Benefits of Smartbuild
approach Smart Build advantage Customizable solution Reusable
solution Tested product processor Service Oriented architecture
Standard process flows Faster time to market Reduced cost Reduced
risk Competitive advantage
Slide 31
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 31 Application
Certification offering PACE Services Test process consultancy
Quality Indexing Benchmarking Process Gap Analysis Process
Alignment Test automation Tools Selection Tools Scripting
Performance Analysis End to end testing Product testing Project
testing Independent Testing and Certification Unit Vast experience
in testing mission critical applications 20% of the testing team
are domain experts Tested and certified over 300 releases with many
zero defect deliveries 1500+ person years of testing experience
Expertise in Project and Product testing Continuous process
improvement through Quantitative Project Management (QPM) Expertise
in Test Automation tools WinRunner, Test Director, Quick Test
Professional (QTP), SilkTest, LoadRunner, OptimizeIT, Purify,
Jverify Performance Metrics Defect unearthing efficiency of 95%
Test case efficiency of 80% PACE Expertise
Slide 32
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 32 Two pronged future
strategy Use IP led solutions delivered as Smart Build as
arrowheads to open new doors Transform core ADM services into
higher margin business by leveraging IP Intellectual Property
Rights factory for Tier 1 Products for Tier 2, 3 Major Focus
disproportionately on top 100 banks in US and Europe Smart-Build,
SLM for Tier 1 Banks of Europe, NA Selected products for Tier 2
Banks of ME, Latam, ASPAC Cards Liquidity Collect Origination
Lending
Slide 33
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 33 Strategy Implementation
Ensure current growth trajectory in IT services business Focus on
IP led solutions, leverage SOA in the marketing message and get
internal orgn alignment Realign organizational structure and key
processes to create Customer-back design End to end responsibility
Efficient operational platform Ramp up to 10-15 of top 100 banks
and deliver distinctive IP led solutions to establish a platform
for growth within these accounts Build partnerships with key
players to leverage current componentization/SOA wave and gain
market credibility Enhance front end capabilities and key account
management function Induct IP driven approach in delivery of
conventional service lines Enhance full service offerings with new
service lines such as Linux migrations and niche package
implementation Accelerate growth by firmly establishing IP driven
off shoring approach Transform large accounts into AAA
relationships Deliver enhanced profitability on account of client
diversity, sharper expertise positioning and better operating
platform Stabilize and focus Penetrate top accounts with IP led
positioning Accelerate growth Timing Q3-Q4 FY06FY07FY08 onwards
Critical initiatives Key corporate theme
Slide 34
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 34 Optimus-BPO offering
Aims to fulfill emerging customer requirements for an integrated
technology and operations offering using its expertise in the
banking and financial services domain Application,Developme
nt,Management & Support Business Processing Feature
customization/design Consulting complete spectrum of back office
solutions . DESIGN OPERATE DELIVER Customer Interactions Services
Business Infrastructure Services Complete Card Solutions
Transaction processing Asset Management Custodial services
Mortgage
Slide 35
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 35 A holistic offering
OPTIMUS Advantage Technology Process Expertise Infrastructure
Polaris Lineage Integrated Technology and Operations Leveraging
Economics of Expertise
Slide 36
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 36 Some of our
differentiators Increased process efficiencies Minimized capital
outlay Access to latest technology Decreased time to market
Enchanced customer satisfaction Optimus Integrated Outsourcing
seeks to deliver much more than just cost savings
Slide 37
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 37 Optimus-The perfect
partner for outsourcing Complete spectrum of back office solutions.
Focused yet Comprehensive Product Offering Polaris Advantage
Technology Expertise Experienced Management Skilled in Strategy/
Implementation India Offshore Advantage Talented Resource Pool
Focus on Long Term Relationships Strong Quality Orientation
Expertise in Financial Services Domain Rich Process Knowledge
Slide 38
People Practices @ Polaris
Slide 39
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 39 Associate Statistics
Flat Hierarchy 6 levels to CEO 6000 + Associates 25% Female
Associates: diversity critical 20% onsite employees- US, UK,
Singapore 90% Qualified Professionals (Engineers, MBAs, MS
etc)
Slide 40
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 40 Fuel Campaign - Future
Leaders Nationwide campaign to recruit the best domain experts in
the country 150 Domain Experts (BFSI) recruited over the last 2
years Tie-Up with Tier-1 B Schools Tie Up with 6 out of Top Ten B
Schools in India Day 0/Day 1 Slot at all Campuses we visit Tie- Up
with top T Schools for fresh engineers All India Aptitude
Test(Polaris Aptitude Test) followed by structured Assessment
Centre Recruited 500 fresh engineers out of 1.5 lakh applications
across the country Cross-national hiring to move towards a global
organization Local hires in US, Japan, Germany & UK Talent
Acquisition- Recruiting the best
Slide 41
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 41 Attrition Statistics
Voluntary Attrition %age of 16%-17% for FY 05-06 Attrition at
middle management level is much lower
Slide 42
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 42 All associate go through
person-days of training every year Key focus on Project Management
Certification & Leadership Development Certified Project
Management is extended to a large part of the organization All
Project Directors (PD) and Project Managers (PM) will have to spend
6 hrs of conducting training every month Onsite programs executed
through Technology Mediated LearningTM All Chief Executive Council
members will have to spend total of at least 40 hours in a year in
conducting training Training & Development
Slide 43
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 43 Career Development
Slide 44
FINANCIALS
Slide 45
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 45 Financials Background
Revenue Profile Profitability Profile Balance Sheet
Conclusions
Slide 46
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 46 Context Setting : Key
Events impacting Financials Merger with Orbitech Products
Investments Quest towards Differentiated Positioning IP Led Growth
Strategy Transformation Agenda
Slide 47
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 47 The Market and Our
Hybrid Strategy Two Trends in the market Banks under pressure to
bring innovative products to market more quickly, to improve
operational efficiency through continued process optimisation and
to implement comprehensive regulatory compliance programs Growing
recognition of Service Oriented Architectures (SOA) as a viable
approach to gradual and non- disruptive replacement of legacy
systems Polaris transforming the application development and
maintenance (ADM) business lines from a cost-arbitrage based
resource augmentation model to a solution based value proposition
through the use of a hybrid model of services combined with
Intellectual Property (IP)
Slide 48
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 48 Strong references for
our Lending suite covering the full spectrum of origination, loan
processing and collections - in diverse markets of Japan, Germany,
the US, India and the Middle East Initial success with Cards in the
local market in India has resulted in opening up of new markets for
consumer finance in Latin America Achieved a position of leadership
with our Cash and Liquidity management offerings with leading banks
in the UK market Early Adoption of our solutions by the Market
Slide 49
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 49 Through:-Investments in
IPs Total Costs incurred for developing the products $ 36.90 Mn
(3.5 years) Part of the Product development costs were capitalized
till Dec 04 $ 11.48 Mn Total Costs charged to P&L till Dec 05
is $ 25.41 Mn Had the accounting treatment not changed, the EBITDA
would have been higher by $ 1.2 Mn per quarter 2% increase in
EBITDA margins.
Slide 50
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 50 Expanding domain
expertise & improving implementation capacity Hiring and
training career bankers Aligning investment and roadmap plans with
the market needs Engaging with Strategy consultants to validate
market needs and product investment priorities Enhancing our Smart
Build Solution capability SOAization of select GeneS Development of
new GeneS such as BRE Improving product options, quality,
capability, performance & user experience Benchmarking Adding
new Product features Implementing Common Look and Feel and other
architectural / design guidelines Testing and fine-tuning of
products in different hardware and operating platform combinations
Development of industry standard documentation (User manuals,
implementation manuals, etc.) All these investments have helped
Polaris in
Slide 51
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 51 Improving engineering
quality and productivity Investing in third-party tools and
development of in-house tools Developing product development
disciplines such as customisation strategy, engineering golden
rules and estimation methodology Instituting Quality processes such
as defect free programming handbook and SOA handbook Helping us to
expand user base Developing product collateral Setting up product
demonstration infrastructure Marketing and Sales Investment
Developing product branding All these investments have helped
Polaris in
Slide 52
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 52 Revenue profile Revenue
for FY06 was Rs 825 crore FY06 revenue break-up CAGR : 19.5%
Slide 53
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 53 Revenue Geo Mix
2005-06
Slide 54
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 54 Revenue Customer
mix
Slide 55
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 55 EBITDA EBITDA for FY06
was Rs.77.07 cr Reasons for decline in EBITDA Product Investments
Change in accounting treatment Salary Increases Investments in
Sales Infrastructure Muted Revenue Growth
Slide 56
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 56 PAT
Slide 57
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 57 Expenditure Analysis
Expenditure has been under control over the last 4 quarters
Increase mainly due to salary hikes in Q2 Further optimization
underway In Rs.cr
Slide 58
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 58 Balance Sheet
Slide 59
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 59 Cash Flows Company has
been consistent in generating cash from operational activities
There are no debts in the company Cash & Cash balances of
Rs.122 crores as of 31 Mar 06
Slide 60
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 60 Important Financial
Ratios
Slide 61
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 61 Utilization
Slide 62
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 62 Associate Strength
Slide 63
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 63 Debtors Outstanding -
DSO
Slide 64
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 64 Realization 2005-06
Slide 65
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 65 Conclusions Healthy
Balance sheet, No Debt Strong Cash Flows Significant investments in
Products to differentiate Polaris Software Lab from other vanilla
outsourcing service providers All product and other investments
through internal accruals Cost Structure stable over the last 5
quarters Revenue uptake will drive significant increase in
profitability
Slide 66
Copyright Polaris Software Lab Limited, 2005. Confidential. Not
to be republished without prior consent 66 THANK YOU