Cranes - Corporate Presentation

Corporate PresentationApril 2009

Copyright Cranes Software International Limited. Names of products, solutions and services mentioned in this presentation are the properties of their respective owners. www.cranessoftware.com

An Overview…

• First and only Indian Company in the proprietary statistical analysis and engineering simulation

software market with a globally acclaimed product portfolio

• Vision - Creation of IP’s and building products & Solutions around it.

• Unique award winning ‘Acquire-Enhance-Expand’ business strategy that effectively leverages

our core competencies in the Analytics and Engineering software domain

• Cumulative global user base of over 350,000 in leading corporations (including several Fortune

500 companies), government agencies and academic institutions

• Significant presence across 39 countries worldwide through a network of direct offices and

distributors

• Talent pool of over 500 experienced scientists, highly-skilled tech architects & software

engineers

• A CMMI Level 5 company

• Publicly listed on BSE and NSE (BSE: CRANES; NSE: CRANESSOFT)


Dr. R. L. KarandikarExecutive VP - AnalyticsFormer Professor at the Indian Statistical Institute. Renowned Probabilist and Statistician. Expert in Stochastic Processes, Financial Mathematics, Cryptography, Psephology

Leland WilkinsonExecutive Vice President, SYSTAT SoftwareCreated the SYSTAT and the first graphing package SYGRAPH.

Dr. Richard MitchellSenior ScientistExpert in Algorithm development for scientific software

Dr. R. L. KarandikarExecutive VP - AnalyticsFormer Professor at the Indian Statistical Institute. Renowned Probabilist and Statistician. Expert in Stochastic Processes, Financial Mathematics, Cryptography, Psephology

Leland WilkinsonExecutive Vice President, SYSTAT SoftwareCreated the SYSTAT and the first graphing package SYGRAPH.

Dr. Richard MitchellSenior ScientistExpert in Algorithm development for scientific software

Core Management Team

Abe KeisoglouETA

Shankar HAnalytics & Engineering businesses

Hermann HebbanCubeware

Tanveer KhaderSystat Software Inc.

Ashfaq IbrahimCranes Varsity

Core Management Team

Abe KeisoglouETA

Shankar HAnalytics & Engineering businesses

Hermann HebbanCubeware

Tanveer KhaderSystat Software Inc.

Ashfaq IbrahimCranes Varsity

Source of Our Uniqueness

Dr. Rudra PratapChairman & Chief Scientific Advisor, Associate Prof in IISc; expert in MEMS

Asif Khader Managing Director & CEO Co-founded Cranes Software and continues to grow the company

Mueed KhaderExecutive DirectorInstrumental in the day to day operations and the overall strategic decision-making at Cranes Software.

Richard GallDirectorFormer Managing Director of Texas Instruments (India)

Ron Brown Director & Chief Software Architect Original author of scientific software products

Dr. Peter Ryser Director Former R&D in-charge at Siemens, Associate Professor at Swiss Federal Institute of Technology

Dr. Rudra PratapChairman & Chief Scientific Advisor, Associate Prof in IISc; expert in MEMS

Asif Khader Managing Director & CEO Co-founded Cranes Software and continues to grow the company

Mueed KhaderExecutive DirectorInstrumental in the day to day operations and the overall strategic decision-making at Cranes Software.

Richard GallDirectorFormer Managing Director of Texas Instruments (India)

Ron Brown Director & Chief Software Architect Original author of scientific software products

Dr. Peter Ryser Director Former R&D in-charge at Siemens, Associate Professor at Swiss Federal Institute of Technology


Strength –People

ProfileNORTH

AMERICAEUROPE ASIA PACIFIC INDIA TOTAL

R&D 0 6 0 26 32

Development 128 43 70 325 566

Techno Commercial 31 27 7 112 177

Training 0 0 0 42 42

Support 26 8 6 47 87Other Support Functions (HR, etc….) 70 70

TOTAL 185 84 83 622 974

Technology GroupAnalytics Group Engineering Group

Profile NORTH AMERICA EUROPE ASIA

PACIFIC INDIA TOTAL

R&D 0 13 13

Development 37 90 127

Techno Commercial 8 15 23

Training 0

Support 6 1 7

TOTAL 51 119 170


PACIFIC INDIA TOTAL

R&D

Development 84 70 50 204

Techno Commercial 5 7 21 33

Training

Support 13 6 19

TOTAL 102 83 71 256


PACIFIC INDIA TOTAL

R&D 6 13 19

Development 7 43 185 235

Techno Commercial 18 27 75 120

Training 42 42

Support 7 8 24 39

TOTAL 32 84 339 455


Organization Structure


Year endedHalf year ended 30th June 2009

Year ended 31st March,

2009


2008


2007


2006

Division Total Contr. Total Contr. Total Contr. Total Contr. Total Contr.

Cranes Techologies 1,147 52% 2,821 55% 2,043 51% 2,061 73% 1,499 71%

Cranes Varsity 59 3% 129 3% 142

4% 120

4% 104 5%

Cranes Analytics 475 22% 994 20% 736

19% 526

18% 399 19%

Cranes Engineering 514 23% 1,154 23% 1,032 26% 131

5% 107 5%

Total 2,196 100% 5,098 100% 3,953 100% 2,838 100% 2,109 100%

Break up of RevenueRs Mn


*Stock has been split 1:5 since H1 2006 and a bonus of 1:1 was issued during the same period

Financial Track Record Rs. Cr.

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009Product Group:

a) Proprietary Products 47.59 92.46 133.55 169.12 225.24 328.42 453.60

b) Product Alliances 12.50 16.36 24.87 38.99 49.06 60.44 47.40

c) Training & Services 1.46 5.24 4.96 5.71 9.43 9.78 7.79

Revenues 61.55 114.06 163.38 213.82 283.73 398.64 508.79

Proprietary Products Contribution: (% of Sales)

77.30% 81.10% 81.70% 79.10% 79.50% 82.39% 89.15%

EBITDA 30.30 52.03 92.82 117.98 150.61 203.78 240.20

Interest 3.32 7.74 10.88 8.15 4.83 13.37 30.02

PBT 21.95 36.30 59.55 81.52 100.91 133.58 133.28

PAT 14.01 32.54 46.05 62.48 87.12 114.97 121.50

EPS (Rs.) 16.32 38.31 45.27 5.80 * 7.60 10.03 10.30

RONW 37.00% 27.80% 29.30% 19.97% 22.14% 23.42% 22.78% ROCE 20.20% 15.10% 16.40% 9.82% 10.76% 11.93% 10.18%

Net Worth 39.55 118.71 156.93 312.40 393.60 490.87 666.10

Debt 21.32 89.85 115.55 323.70 461.40 584.77 823.85

Manpower (People) 199 254 356 517 715 1,040 1,118

Rev per Employee 0.30 0.45 0.46 0.41 0.40 0.38 0.46Debt/EBITDA (Times) 0.72 1.74 1.24 2.74 3.06 2.87 3.43EBITDA/Sales 48.35% 45.30% 56.81% 55.17% 53.08% 51.12% 47.21%


Acquisitions

ACQUISITIONS (US$ Million)

Software IPYr. of

AcquisitionAcquisition

CostRevenue when

acquiredRevenues in FY07

Revenues in FY08

Revenues in FY09

AISN Data Visualization Software Suite

2001 1.8 1.0 3.0 1.5 1

SYSTAT 2002 2.3 2.3 8.0 8.3 9.5

Sigma Products Suite 2004 15.0 6.8 32.0 28.3 35.3

NISA 2005 1.5 Neg 1.5 3.9 5.1

InventXePM 2006 3.5 Neg 2.0 1.6 2.1

iCapella 2006 1.6 Neg 1.0 7.0 7.2

Dunn Solutions Group 2007 17.5 9.0 10.0 9.1 7.8

Tilak Auto Tech 2007 2.5 Neg 2.0 0.1 0.1

Caravel Info Systems 2007 2.5 1.0 2.0 0.8 0.5

Proland 2007 5.0 Neg 2.0 0.1 0.1

ETA 2007 18.0 14.0 14.0 19.9 19.4

Cubeware 2008 25 12.5 NA NA 13.7


ISO27001 (Surveillance Certification) ,CMMi v1.2 SCAMPI B Appraisal,

ISO9001 (Surveillance Certification)

BS 7799 (Policy Definition) , CMMi v1.1 IIPPD(SCAMPI A completed) ISO9001 (Recertification completed), ISO27001:2005

ISO27001 (stage-1 & 2 – Certification- first in India, 2nd in the world - Norwegian accreditation) , CMMi v1.0 SCAMPI C Appraisal, ISO9001 (Surveillance Certification)

ISO27001, ISO9001 (Surveillance Certification) ,CMMi v1.2 + IPPD L5

SCAMPI A (First in the world)

Quality Journey (Major Milestones )

2002

2003

2004

2005

Process Achievement

Pro

cess

For

war

d

ISO 9001:2000 (Jun’02)

Organization wide process focus

CMM Level 5 (Jul’03)

2006

2007

2008


Global Presence

Indirect Presence

HungaryPolandNorwaySpainPortugalGreeceItalyTurkeyRomaniaSouth AfricaRussiaDenmark SingaporeKoreaMalaysiaJapanPhilippinesHong KongIsraelTaiwanNew ZealandAustraliaDubaiSwedenSwitzerland

Indirect Presence

HungaryPolandNorwaySpainPortugalGreeceItalyTurkeyRomaniaSouth AfricaRussiaDenmark SingaporeKoreaMalaysiaJapanPhilippinesHong KongIsraelTaiwanNew ZealandAustraliaDubaiSwedenSwitzerland

Direct PresenceUSAChicagoBerkleyTroySan JoseSkokieRaleighCharlotteEaganCanadaOntarioEuropeDusseldorfUKLondonUAEDubaiIndiaBangaloreDelhiHyderabadPuneChinaShanghaiMalaysiaSingapore

Direct PresenceUSAChicagoBerkleyTroySan JoseSkokieRaleighCharlotteEaganCanadaOntarioEuropeDusseldorfUKLondonUAEDubaiIndiaBangaloreDelhiHyderabadPuneChinaShanghaiMalaysiaSingapore

Indirect

Direct


Strength – Global Customers


1991•Distribution of anti-virus software in Bangalore.

1993•Sole Authorized dealer of MATLAB in South Asia.

1998•Cranes Varsity was formed to provide post-professional technical training in controls, DSP & Embedded engineering.

2000• Acquired AISN Software's range of visualization software products

2002 •Acquired SYSTAT

2004• Acquired Sigma product line.

2005 •Acquired Engineering Mechanics Research Corporation (EMRC - India) / NISA family of products.•Launched SYSTAT 11 in Japanese

2006 •Implemented company-wide SBU structure migrating from old geographical structure.•Launched NISA version 14.0 for Linux OS•Acquired InventXePM, Analytix Systems, Karna Softek & iCapella

Cranes Milestones

2003•Launched SYSTAT 10.2 in Japanese

Cranes : Rapid Growth Story

2007•Released SYSTAT version 12,NISA version15•Acquired Dunn Solutions Group, Tilak Auto Tech, Caravel Info Systems , Proland & ETA

2008•Received ISO27001, ISO9001 (Surveillance Certification) ,CMMi v1.2 + IPPD L5 SCAMPI A (First in the world)•Acquired Cubeware

2009•Launched NISA Version 16.0 for Linux & NISA DesignStudio Version 16•Launched Product Development Software eta/VPG 3.4 •Released Product Development Software ETA/VPG™ 3.4 & Availability of NISA Solver•Released its powerful die analysis solution eta/DYNAFORM Version 5.7•Released the latest version of its FEA software suite – NISA version 17


Awards & RecognitionNamed one of the Fastest Growing Indian Technology Companies by Deloitte Touche Tohmatsu Asia Pacific Fast 500 for 2003, 2004 & 2005.

Cranes Software bagged “Distinguished Application Product Company” Award at NASSCOM Product Summit 2005 by Indian Institute of Management, Bangalore, in conjunction with NASSCOM.

Cranes Software received ‘Innovation for India Award’ for its Acquire, Enhance, Expand business model which was rated as ‘Unique & Innovative to industry’

Awarded as most Start-up successful Indian Company in the UK by the UK Trade and Investment Body in November 2006

Featured the promoters as India’s new Billionaires’ in its special issue in September 2006

Lauded as ‘The value multiplier business model’ by Microsoft at the ‘India is Innovation summit’ in April 2006

Scientific Computing honored SigmaPlot as 2007 Graphics Readers’ Choice Bronze Award winner

SigmaPlot recognized as Top product by Scientific Graphing 2008

ETA won the Best New Software Innovation Award Precision Metalforming Association (PMA) METALFORMING 2008


Cranes Today

ANALYTICSProducts Solutions & Services

PharmaPharma

TelecomTelecom

Environmental SciencesEnvironmental Sciences

BFSIBFSI

Social SciencesSocial Sciences

ENGINEERINGProducts Solutions & Services

AutomotiveAutomotive

AviationAviation

ManufacturingManufacturing

AerospaceAerospace

CivilCivil

TechnologyProducts Solutions & Services

Life SciencesLife Sciences

EducationEducation Govt. & DefenseGovt. & Defense

ResearchResearch

Social sciencesSocial sciences

EmbeddedEmbedded

DSPDSP

MEMSMEMS

TelecomTelecom

Aerospace & AviationAerospace & Aviation

Env. SciencesEnv. Sciences

Life ScienceLife Science

Automotive & TransportationAutomotive & Transportation

Environmental SciencesEnvironmental Sciences

EducationEducation

BFSIBFSI

PharmaPharma

CranesCranesGovt. & DefenseGovt. & Defense

CivilCivil


Thank You!

Cranes - Corporate Presentation

Documents

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division total

cranes engineering

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