DION GLOBAL SOLUTIONSinvestors.dionglobal.com/pdf/Consolidated_InvestorDeck_Q1FY17 final.pdf · DION GLOBAL SOLUTIONS A trusted technology partner to the financial services industry

DION GLOBAL SOLUTIONSA trusted technology partner to the financial services industry

Investor Presentation | Q1 FY17

www.dionglobal.com

We develop software solutions for the global

financial services industry across the entire transaction

lifecycle.

www.dionglobal.com

AGENDA

Industry overview 4

Company overview 8

Consolidated financial highlights 14

Leadership team 20

Safe harbor / Forward-looking statements

This presentation may include forward-lookingstatements. These forward-looking statements arestatements regarding Dion’s intentions, estimates,forecasts, projections, beliefs or currentexpectations concerning, among other things,Dion’s results of operations, financial condition,liquidity, prospects, growth, strategies and theindustries in which Dion operates. By their nature,forward-looking statements involve risks anduncertainties because they relate to events anddepend on circumstances that may or may notoccur in the future. Dion cautions you that forward-looking statements are not guarantees of futureperformance and that its actual results ofoperations, financial condition and liquidity and thedevelopment of the industry in which it operatesmay differ materially from those expressed, impliedor suggested by the forward-looking statementscontained in this document. In addition, even ifDion’s results of operations, financial condition andliquidity and the development of the industry inwhich it operates are consistent with the forward-looking statements contained in this document,those results or developments may not be indicativeof results or developments in future periods. Diondoes not undertake to release publicly any revisionsto any forward-looking statements to reflect eventsthat occur or circumstances that arise after the dateof this presentation.

www.dionglobal.com

INDUSTRY SNAPSHOT

Overview of our target industry’s tech spend plan

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

Source: Ovum report on http://www.finextra.com/news/fullstory.aspx?newsitemid=25908

59.3

43.6

16.8

0

10

20

30

40

50

60

70

IT spend by retail banks in 2018

North America Western Europe Asia Pacific

4.80%

2.90%

7.70%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Growth in IT spend by retail banks in 2018

North America Western Europe Asia Pacific

In US$ bn

7.3% increase in mobile banking technology spend.

Total spend of US$ 4.2bn in 2015

7% increase in online banking technology spend.


5.6% increase in multi-channel integration and customer information systems (MI/CIS) technology spend.


Spend in core banking platforms in global retail banking industry will rise to US$26.2bn by 2019

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WEALTH MANAGEMENT TECHNOLOGY SPEND

Global wealth management technology spending to reach $32bn by the end of 2017By 2016, Celent expects global spending on external software and services will equal 57% of total global IT spending

3.10%

4%4.50%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2013 2014 2015

Growth in IT spend by global wealth management industry

4%

14%19%

24%

40%

0%

10%

20%

30%

40%

50%

Not at all Somewhat

unwilling

Neutral Somewhat

willing

Wholly

willing

Firms’ willingness to outsource tech solutions / hosting over next 3 yrs (till 2018)

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 Ovumhttps://www.cebglobal.com/blogs/techspend-client-reporting-spending-in-wealth-management-expected-to-increase-22-by-2016/http://wealthmanagement.me/2012/10/27/wealth-management-it-spending-a-global-perspective/

Client Reporting spending expected to increase 22% by 2016

In million USD

0%

10%

20%

30%

40%

50%

60%

Front Office Middle office Back office Distribution

layerBack office is main IT spend area; focus on market connectivity has been driving front-office investment

1219 1275 1335 1403 1479 1561

0

500

1000

1500

2000

2011 2012 2013 2014 2015 2016

http://www.ovum.com/global-wealth-management-technology-spending-to-reach-32bn-by-the-end-of-2017/

https://www.cebglobal.com/blogs/techspend-client-reporting-spending-in-wealth-management-expected-to-increase-22-by-2016/

www.dionglobal.com

RISK MANAGEMENT & CRS 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 demand drivers in financial services (FS) are

strengthening as FIs look to external Software-as-a-

Service (SaaS) providers and outsourced financial

technology (FinTech) utilities in the cloud to meet their

processing and regulatory compliance needs.

The two biggest areas for investment are in the risk

governance and integration field ($22.4bn), which is

being driven by compliance demands, stress test

reporting obligations and risk data aggregation

requirements, and financial crime risk, which follows

closely behind in terms of growth, as cyber and fraud

risks multiply and converge.

$8BILLION

per year to comply with FATCA (Forbes)

112JURISDICTIONS

have signed or committed to FATCA IGA

97JURISDICTIONS

have signed or committed to CRS

185,112FFIs

registered in January out of an IRS estimated 500k

Source: https://www.idc.com/getdoc.jsp?containerId=prUS25606415

https://www.idc.com/getdoc.jsp?containerId=prUS25606415

www.dionglobal.com

COMPANY OVERVIEW

Business

www.dionglobal.comwww.dionglobal.com

DION IS PART OF RHC HOLDING, A LARGE CONGLOMERATE IN INDIA

>$1.5 billion

Combined revenue

>$6 billion

Total asset value

>33,000 people

Total staff

For more details on group companies, visit rhcholding.com


WE ARE A TRUSTED GLOBAL FINTECH COMPANY

Promoter & Promoter Group Tech Mahindra

Bodies Corporate FIIs

General Public (including NRIs)

Shareholding pattern Dion is a global financial technology company

A presence across the global financial markets with

subject matter experts supporting the business and IT needs

of financial institutions

Q1 FY17 revenue = USD 8.08M

CEO: Michel Borst

CFO: Gopala Subramanium

Wealth management

Retail trading & advisory solutions

Post tradeprocessing

Risk & compliance solutions

Payments & financial

messaging

FX derivativespricing, trading,

analytics

Data integration & workflow

management

Case & control management

Awards & recognition

Goodacre Systems in the City Award for Best Wealth

Management Solution in UK for 4 consecutive years since

2012

Wealth Briefing European award for Best

Implementation of a Technology Solution in 2015

CMMi Level 3 certification for

development center in Noida, India

ISO 9001:2008

certifiedbusiness

Areas of expertise


WE HAVE A FOOTPRINT ACROSS MOST MAJOR FINANCIAL CENTERS

500+ 500+ 250+ 9

Staff in 20 offices

Clients in over 85 countries

DevelopersDevelopment

centers across all time zones


WE HAVE OVER 2 DECADES OF EXPERIENCE IN FINTECH SPACE

Launched new high frequency retail trading solution in Australia with institutional capabilities (TCPro | Launched MiFID II compliance solution in UK & Europe (Invantage MiFID II)

Won Best Wealth Management solution in UK award at SITC London | Won Best Implementation of a Technology Solution award at Wealth Briefing European Awards | Launched new mobile trading platform in Australia – TCMobile

Achieved CMMi Level 3 & ISO 9001:2008 certification for Noida development center | Won Best Wealth Management solution in UK award at SITC London

Acquired audit solution in Canada | Signed strategic partnership with Tech Mahindra | Launched FATCA compliance solution | Launnched OTC derivatives pricing & valuation solution (dfferentia) | Won Best Wealth Management solution in UK award at Systems in the City, London

Won Best Wealth Management solution in UK award at SITC London | Launched retail advisory solution in Australia (TradeCentre)

Acquired wealth management solution in UK (Investmaster) | Acquired messaging & workflow middleware solution in Germany (Swissrisk) & expanded geographic reach to Europe

Company renamed to Dion Global Solutions | Acquired stakes in operational risk management solution (Chase Cooper) in UK | Launched mobile trading solution in India

Acquired back office solution in Australia (Capital Market Solution) & acquired geographic reach in Asia Pacific

2014

2016

Promoted by Late Dr. Parvinder Singh as Fortis Financial Services Limited

IPO released & company listed on BSE

Acquired the Empire Finance Company Limited in Mumbai, India

Acquired Online trading solution in India (Asian CerC)

1994

1995

1996

2007

2010

2011

2012

2013

2015

2006


SOME OF OUR CLIENTS

www.dionglobal.com

FINANCIAL HIGHLIGHTS


INVESTING IN OUR ORGANIC & INORGANIC GROWTH

With the objective to reach scale and diversify, in FY12 Dion Board decided to further invest in its own

product development and innovation as well as acquire a number of complementary solutions

Completed 3 acquisitions and developed 4 in-house products between FY12 to FY14

FY14 was a period of consolidation as we integrated the acquired businesses, decommissioned below

par business units and undertook cost rationalization

FY14 also saw significant investment in 4 new products, dfferentia, FATCA, TradeCentre and D-CLEAR

and its distribution channels

FY15 (9month revenue) saw a 30% YoY growth. Dion made an overall profit of over INR 35cr in FY15.

In FY16, Dion made investments to help further restructure the business, and made conscious decisions to

focus on its top tier customers across the globe.


CONSOLIDATED FINANCIALS – Q1FY17

10.01

6.28

8.08

10.86

9.47

9.15

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3FY16 Q4FY16 Q1FY17

RevenueExpenses

15.75% reduction in operating expenses since Q3FY16

8.08

9.15

7.89

10.58

-

2.00

4.00

6.00

8.00

10.00

12.00

Revenue Expenses

Actual Budget

Actual revenue up by 2% from budgeted valueActual expenses lower by 13% from budgeted value

Q1 FY17 Q4 FY16 Q1 FY16 Q1 vs Q4 Q1 vs Q1 Actuals Budget Var %

Operating Revenue 8.08 6.28 10.11 129% 80% 8.08 7.89 2%

Operating Expenses 9.15 9.47 10.72 97% 85% 9.15 10.58 -13%

- Personnel 6.41 7.04 7.03 91% 91% 6.41 7.35 -13%

- Rent 0.49 0.45 0.53 109% 93% 0.49 0.60 -17%

- Travel 0.21 0.37 0.52 57% 40% 0.21 0.46 -54%

- Other expenses 2.04 1.62 2.64 126% 77% 2.04 2.18 -6%

Operating Profit -1.06 -3.20 -0.61 33% 174% -1.06 -2.68 60%

Depreciation 0.62 0.95 0.64 65% 96% 0.62 0.76 -19%

Non-Operating Income 0.30 2.72 0.26 11% 119% 0.30 - 0%

EBIT -1.38 -1.43 -1.00 97% 138% -1.38 -3.45 60%

Finance Cost 1.66 1.80 1.21 92% 137% 1.66 1.64 1%

Net Profit/ (Loss) Before Tax -3.04 -3.22 -2.21 94% 138% -3.04 -5.08 40%

Exceptional Items 1.89 4.59 - 41% 0% 1.89 2.46 -23%

Tax - - - 0% 0% - - 0%

Net Profit/ (Loss) After Tax -4.93 -7.81 -2.21 63% 223% -4.93 -7.55 35%

ComparisonParticulars

USD Mn

Actuals Q1 FY17 @ Actual Rates

* Budgets have been restated at actual forex rates.


CONSOLIDATED BALANCE SHEET – Q1FY17 | LIABILITIES

June 30, 2016 March 31, 2016 June 30, 2016 March 31, 2016 Variance

INR INR US$ Mn US$ Mn US$ Mn

A EQUITY AND LIABILITIES

1 Shareholders Fund

Capital 422,274,060 422,274,060 6.30 6.30 - No change

Reserves & Surplus (210,901,353) 304,966,080 (3.15) 4.55 (7.70) Loss during FY 17 $4.7 Mn & Decrease in FCTR by $ 2.4Mn,

Adjustment arised on Liquidation of Subsidiary $ 0.6Mn

2 Minority Interest 82,236,639 91,660,859 1.23 1.37 (0.14) Adjustment of CCL's Minority Interest on loss $ 0.14 Mn during

FY 17

3 Non - current liabilities

Long - term borrowings 20,833,334 41,666,667 0.31 0.62 (0.31) Repayment of Bank Loans $ 0.31 Mn

Other long term liabilities 31,389,726 33,622,289 0.47 0.50 (0.03) Decrease in Incomes received in advance by $ 0.01Mn and FX

differences of $ 0.02Mn

Long - term provisions 379,105,652 400,743,767 5.66 5.98 (0.32) Decrease in Gratuity & LE provisions (India) by $ 0.09Mn and

Decrease in Pension and Similar Obligations (GMBH) by $

0,23Mn.

4 Current liabilities

Short - term borrowings 2,668,660,377 2,098,123,230 39.83 31.32 8.52 Increase in related party loans $ 8.3Mn and increase in

utilization of bank OD limits $ 0.22Mn

Trade payables 88,180,060 47,895,170 1.32 0.71 0.60 Increase in payables related to Direct costs.

Other current liabilities 3,081,315,011 2,818,164,350 45.99 42.06 3.93 Increase in Incomes received in advance $ 1.08Mn, Increase in

interest accrued $ 0.4Mn & Increase in provision for expenses

$2.4Mn (includes redundacy costs). Short - term provisions 72,191,119 86,301,585 1.08 1.29 (0.21) Decrease in Gratuity, LE and other related provisions by $

0.21Mn.

6,635,284,626 6,345,418,057 99.03 94.71 4.33

RemarksLiabilities

TOTAL LIABILITIES


CONSOLIDATED BALANCE SHEET – Q1FY17 | TOTAL

June 30, 2016 March 31, 2016 June 30, 2016 March 31, 2016Varian

ceINR INR US$ Mn US$ Mn

US$

MnB ASSETS

1 Non - current assets

Fixed Assets

Tangible & Intangible

assets

683,703,770 684,317,088 10.20 10.21 (0.01) No material change

Goodwill on Consolidation 3,233,325,458 3,361,912,489 48.26 50.18 (1.92) FX difference at closing rates.

Non - current

investments

512,542,565 512,542,565 7.65 7.65 - No change

Deferred tax assets (net) 37,528,033 39,874,174 0.56 0.60 (0.04) FX difference at closing rates.

Long - term loans and

advances

117,371,738 112,152,232 1.75 1.67 0.08 Increase in TDS Receivables (Dion India)

Other non - current

assets

37,898,596 38,316,324 0.57 0.57 (0.01) No material change

2 Current assets

Trade receivables 573,635,288 494,070,909 8.56 7.37 1.19 Receivables from customer "Smith & Williamson Investment" $

1.19Mn

Cash and bank balances 302,511,945 24,920,079 4.52 0.37 4.14 Fixed deposits of $ 3.73Mn for SBLC (ICICI) & Increase in bank

balance $ 0.41Mn

Short - term loans and

advances

1,132,972,796 1,076,220,109 16.91 16.06 0.85 Increase in prepayments and other advances $ 0.36 Mn &

Increase in ICD given by $ 0.49Mn

Other current assets 3,794,436 1,092,088 0.06 0.02 0.04 Increase in interest accrued on fixed deposits

6,635,284,626 6,345,418,057 99.03 94.71 4.33

Assets Remarks

TOTAL ASSETS


INCREASED FOCUS ON SALESFORCE AND CLIENT SUPPORT IN FY17

FINANCIAL

EBITDA improvement

Cash flow improvement through retirement or swapping of high

interest debt

A possible equity capital raise to make selective investments to

accelerate growth, fund restructuring and debt retiral

Implementation of IR/PR program

OPERATIONAL

Continue the restructuring of

Increase offshoring to yield additional internal operational savings

Improve internal corporate systems and processes to improve

operational efficiency and mitigate risk

PRODUCTS

Rebalance product portfolio and focus on growth products to

support strategic growth strategy

Focus on building out and marketing “high growth products” i.e.

Wealth management, TradeCentre, FATCA/CRS suite (TRAC)

SALES

Focus to high/margin-high/growth products

Increase revenue from partners

Strategic focus on core markets in EMEA and Asia Pacific

Aggressive & High Performing Salesforce

www.dionglobal.com

LEADERSHIP TEAM

Board of Directors & Dion executive team


A HIGHLY EXPERIENCED BOARD OF DIRECTORS

Maninder Singh Grewal

Ralph James Horne

C P Gurnani

Balinder Singh Dhillon

Non-executive Chairman

Daljit Singh

30+ yrs. of experience in technology

Non-executive Director

~20 yrs. of experience in fintech


~30 yrs. of experience in technology


20+ yrs. of experience in corporate law & strategy


40+ yrs. of management experience in corporate

sector

Ravi Mehrotra

Rashi Dhir

Vandana Nadig Nair

Gaurav Laroia

Non-executive Chairman

Amit Sethi

30+ yrs. of experience in financial services

Independent Director

20+ yrs. of experience in corporate & international

transactions


20+ yrs. of experience in business HR & consulting


15+ yrs. of experience in pharmaceutical


30+ yrs. of experience in financial services,

technology & consulting


A HIGHLY EXPERIENCED AND DEDICATED DION LEADERSHIP TEAM

Global CEO

Michel Borst

CFO

CTO

HR

Legal / CS

Marketing

Gopala Subramanium

Andreas Wagner

Nishtha Sareen

Tarun Rastogi

Vani Parmar

Head of TC

Head of Wealth

Head of IMM/FMW

Head of FATCA/CRS

Head of dfferentia

Head of GRC

David Bowles

Kean Williams

Juergen Dahmen

Nigel Quantick

Kershasp Carnac

Dave Pinder

Head of TAW/RIS/D-Rive

Head of Post Trade Solutions

Gaurav Kohli

John Brierly


MICHEL BORST | CEO | 20+ yrs in fintech

Michel is the CEO of Dion Global Solutions.

He has over 20 years of successful sales, consulting and management experience in

the IT and Financial Services Industry. Prior to joining Dion, Michel was the Vice

President for the Financial Services Industry at SAP for the Asia Pacific region.

Previously, he was the Managing Director for the Financial Services Industry at

Microsoft Enterprise & Partner Group, also in Asia Pacific.

Michel has worked with a number of global IT and consulting companies including

IBM and Accenture. His international and regional experience across a variety of

sales, design, implementation and operations roles gives him unique insight into the

business and technology requirements of today’s financial institutions.


GOPALA SUBRAMANIUM | CFO | 15+ yrs in financial services

Gopala is the Chief Financial Officer of Dion Global Solutions.

He has more than 15 years of experience in the financial service industry managing

the finance & business intelligence function, and holds expertise in the area of

financial reporting and analysis, business modelling/projections, driving & monitoring

AOPs, budgets, performance, sales behavior and various cost saving/control

initiatives.

As the CFO at Dion, Gopala leads financial operations of the company globally and

also plays an instrumental role in developing the company strategy.

www.dionglobal.com

dionglobal.com

https://www.linkedin.com/company/dion-global-solutions-ltd

https://twitter.com/Dion_Global

https://www.youtube.com/user/DionGlobalSolutions

Documents

DION GLOBAL SOLUTIONSinvestors.dionglobal.com/pdf/Consolidated_InvestorDeck_Q1FY17 final.pdf · DION GLOBAL SOLUTIONS A trusted technology partner to the financial services industry