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PRESENTATION
How did we get here?
Major transformation
6000+ associates
Employees
FY 06 Revenues:$187mn EBITDA:$17.4 mn
Financials Zero debt, Large Cash Reserves
Relationship
Banking Center
Smart Legacy
Modernization
Center
Insurance
Center and
Enterprise
Innovations
Capital Markets
Center
Corporate
Sales
Banking Center
Customer
Technologies
for Globally
Board of Directors Efficient
Confidential. Not to
Architecture
Quality & Process management
Organization structure
Group
Business
Process
Outsourcing
Marketing
4
Polaris positioning
“Provider of
Calibrated modernization of ‘Smart Legacy Application management services to
existing legacy platforms in a non- Modernization maintain, reengineer, aggregate and.
disruptive manner by ’ services to upgrade portfolios of custom applications
way of deployment of innovative the world’s cost-effectively, by leveraging Polaris’
(‘SmartBuild’) solutions that are leading banks continuously replenished warehouse of
SOA compliant and backward and financial intellectual
compatible. institutions” property
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.
Copyright Polaris Software Lab Limited, 2005.
Confidential. Not to
be republished without prior consent 5
Polaris Business model: 100-5-7
100 Relationships
Build a few (but more than a handful) long-term relationships
Branding
Leadership
Strategy
COMPREHENSIVE
Technology OFFERINGS
Delivery PORTFOLIO
Quality
COMPETENCIES CAPABILITIES
RESOURCES
‘Run-the-Bank’ Offerings
‘Change-the-Bank’ Offerings
‘Operate-the-Bank’ Offerings
Horizontal Practices
‘Change-the-Bank’ Offerings
‘Operate-the-Bank’ Offerings
Horizontal Practices
‘Operate-the-Bank’ Offerings
Horizontal Practices
Horizontal Practices
Thought
Reliable Speed To Higher
Leadership
Solutions Market Savings
& Innovation
Solution Expertise
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
Thought
Reliable Speed To Higher
Leadership
Solutions Market Savings
& Innovation
Solution Expertise
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
Thought
Reliable Speed To Higher
Leadership
Solutions Market Savings
& Innovation
Solution Expertise
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
Thought
Reliable Speed To Higher
Leadership
Solutions Market Savings
& Innovation
Solution Expertise
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 90’s
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
Copyright Polaris Software Lab Limited, 2005.
Confidential. Not to
be republished without prior consent 16
Why customers choose Polaris?
Thought
Reliable Speed To Higher
Leadership
Solutions Market Savings
& Innovation
Solution Expertise
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
Thought
Reliable Speed To Higher
Leadership
Solutions Market Savings
& Innovation
Solution Expertise
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
IDFC
“45% of banks have
survey some SOA plans over
the next year. ”
0 Building the
0 1,000 2,000 platform
3,000 4,000
10,000 12,000
Products
Parameters
Payments Teller
Charges Reports
Recon Sign
Limits Relationship
Dr. Card Mgmt
Integrator Customer
Communication
Time
Deposits Current GL
Statements &
Savings
a
Web services Collateral GeneS
Customer Fee
Accelerated Build
Source Code
Customizable solution
Faster time to
market
Reusable solution
Reduced cost
Reduced risk
Service Oriented architecture
PACE Expertise
PACE Services Independent Testing and Certification Unit
Vast experience in testing mission critical
End to end testing applications
• Product testing 20% of the testing team are domain experts
• Project testing
Tested and certified over 300 releases with many
Test process consultancy zero defect deliveries
• Quality Indexing 1500+ person years of testing experience
• Benchmarking
Expertise in Project and Product testing
• Process Gap Analysis
• Process Alignment Continuous process improvement through
Quantitative Project Management (QPM)
Test automation
Expertise in Test Automation tools
• Tools Selection
• Tools Scripting WinRunner, Test Director, Quick Test
• Performance Analysis Professional (QTP), SilkTest, LoadRunner,
OptimizeIT, Purify, Jverify
Performance Metrics
Defect unearthing efficiency of 95%
Test case efficiency of 80%
Copyright Polaris Software Lab Limited, 2005.
Confidential. Not to
be republished without prior consent 31
Two pronged future strategy
Focus
disproportionately on
Use IP led solutions delivered as
top 100 banks in US
‘Smart Build’ as arrowheads to open
and Europe
new doors
Major
Penetrate top
Accelerate growth by firmly
accounts with IP
establishing IP driven off
led positioning shoring approach
Key corporate Transform large accounts
theme into AAA relationships
Ramp up to 10-15 of top 100 Deliver enhanced
Stabilize banks and deliver distinctive ‘IPprofitability on account of
and focus led solutions’ to establish a client diversity, sharper
platform for growth within these ‘expertise’ positioning and
accounts better operating platform
Ensure current growth Build partnerships with key
trajectory in IT services players to leverage current
business componentization/SOA wave
Focus on ‘IP led and gain market credibility
solutions’, leverage SOA Enhance front end capabilities
in the marketing message and key account management
Critical and get internal orgn function
alignment Induct IP driven approach in
initiatives Realign organizational delivery of conventional service
structure and key lines Enhance full service
processes to create offerings with new service lines
‘Customer-back’ design
End to end responsibility such as Linux migrations and
Efficient operational niche package implementation
platform
Feature Application,Develo
Consulting customization/desi pment,Managemen Business
gn t & Support Processing
Transaction processing
•Asset Management
Customer Business
•Custodial services Complete Card Solutions
Interactions Services Infrastructure Services
•Mortgage
g e
ea
OPTIMUS
n
Li
Advantage
ris
la
Po
Leveraging Economics of
Expertise
Enchanced customer
satisfaction
Access to latest
Decreased time to
technology
market
Optimus
Integrated
Outsourcing
seeks to deliver
much more than Minimized
Increased process just cost capital outlay
efficiencies savings…
Talented Technology
Resource Pool Expertise
Experienced
Management
Focused yet
Skilled in
Comprehensive
Strategy/
Product Offering
Implementation
India Offshore
Polaris Advantage
Advantage
Copyright Polaris Software Lab Limited, 2005.
Confidential. Not to
be republished without prior consent 37
People Practices @ Polaris
Associate Statistics
Education Profile Ag e Gro u p D istrib u tio n
Others
9%
35-4040 P lus 20-25
Doctorates
8% 5% 23%
1%
30-35
Masters/
24%
Post
Graduates
Graduates
59%
31%
25-30
40%
2 to 4 yrs
19%
1 to 2 yrs
38%
Background
Revenue Profile
Profitability Profile
Balance Sheet
Conclusions
Products Investments
Transformation Agenda
crore 700
600
CAGR : 19.5%
Rs in Crores
500
400
300
200
100
FY’06 revenue break-up -
FY 2 0 0 1 FY 2 0 0 2 FY 2 0 0 3 FY 2 0 0 4 FY 2 0 0 5 FY 2 0 0 6
Fina nc ia l Ye a r
60.0%
Citi
Eu r o p e 40.0%
%
5 0 .0 0%
4 0 .0 0%
3 0 .0 0%
2 0 .0 0%
1 0 .0 0%
0 .0 0%
Q1 Q2 Q3 Q4
Ge o g r a p h y Q1 06 Q2 06 Q3 06 Q4 06
U S/ N o r t h A m e r ic a 4 2 .9 0 % 4 0 .7 0 % 3 7 .5 4 % 3 8 .4 2 %
Eur ope 2 7 .6 0 % 2 8 .4 5 % 2 9 .7 2 % 2 8 .5 3 %
I n d ia 1 0 .5 0 % 1 0 .1 0 % 1 1 .8 0 % 1 1 .2 9 %
A s ia P a c ific & J a p a n 1 9 .0 0 % 2 0 .7 5 % 2 0 .9 4 % 2 1 .7 6 %
70.00%
60.00%
% of revenue
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Q1 Q2 Q3 Q4
2005-06
Q1 06 Q2 06 Q3 06 Q4 06
C itib a n k 5 9 .6 3 % 5 7 .7 0 % 5 7 .2 4 % 5 8 .2 1 %
N o n C iti B a n k 4 0 .3 7 % 4 2 .3 0 % 4 2 .7 6 % 4 1 .7 9 %
FY2003
FY2004
FY2005
FY2006
FY2001
70.00
60.00
50.00
in Rs. cr
40.00
30.00
20.00
10.00
0.00
FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
In Rs.cr
250
Expenditure has been
200
under control over the
150 SG&A
last 4 quarters
Rs in Crores
100 S DE
Increase mainly due to
50
salary hikes in Q2 -
Q1 Q2 Q3 Q4
Further optimization
SG&A 44 45 49 47
underway S DE 139 141 142 140
Q u a r t e r - FY 2 0 0 5 - 0 6
In Rs Crores
31-Mar-06 31-Mar-05
Sources of Funds
Shareholders Capital 540.90 531.10
Secured Loans 1.88 2.10
Total 542.78 533.20
Application of Funds
Net Book Value 237.63 216.26
Cash & Bank balances 121.70 136.71
Working Capital 169.79 172.15
Investments 12.91 6.93
Miscellaneous Expenditure 0.75 1.15
Total 542.78 533.20
78.0% 77.1%
76.0%
76.0%
74.0% 72.8%
Utilisation %
72.0%
70.0%
70.0%
68.0%
66.0%
Q1 Q2 Q3 Q4
6 ,2 0 0
6092
6 ,1 0 0
No. of associates
6 ,0 0 0 5954
5 ,8 9 0
5 ,9 0 0 5 ,8 5 0
5 ,8 0 0
5 ,7 0 0
Q1 Q2 Q3 Q4
To ta l As s o cia te s tre n g th 5 ,8 5 0 5 ,8 9 0 5954 6092
2 0 0 5 -0 6 - Q1 to Q4
DSO
80
63 70
60
No. of days
40 40 B ille d
40
U n b ille d
20
-
2 0 0 5 -0 6 2 0 0 4 -0 5
B ille d 63 70
U n b ille d 40 40
Fin a n c ia l Ye a r
8 0 .0 0
6 0 .0 0
USD per hour
4 0 .0 0
2 0 .0 0
-
Q1 Q2 Q3 Q4
O n s ite 5 7 .2 5 5 7 .4 0 5 7 .6 0 5 7 .5 0
Of f s hore 1 9 .6 5 1 9 .7 0 1 9 .0 0 1 9 .0 0
2005-06