Subex Ltd

Dear Shareholders,

As we navigate the expansive seas of the telecom industry, our steadfast commitment to innovation and adaptation remains unwavering. Today, I am privileged to share significant developments within our organization and a refined strategic blueprint designed to solidify Subex's leadership in this dynamic sector.

We are embarking on a new chapter with the appointment of Ms. Nisha Dutt as the Chief Executive Officer, succeeding Mr. Vinod Kumar Padmanabhan. With more than two decades of substantial experience across diverse domains, including consulting, advisory roles, investment banking, and technology entrepreneurship, Ms. Dutt brings a wealth of knowledge and expertise to Subex, making her an ideal torchbearer for the next phase of our evolution.

This leadership transition represents a significant shift for our organization, signaling a transformative stage that infuses fresh perspectives and renewed dynamism into our strategic endeavours. We are confident that under Ms. Dutt's adept stewardship, Subex's commitment to delivering unparalleled innovation, excellence, and customer satisfaction will reach new heights.

Central to our strategic recalibration is an intensified focus on cutting-edge technologies, notably Artificial Intelligence (AI) and 5G. Subex is primed to exploit the boundless possibilities of Generative AI, private 5G networks and plethora of technologies which serve as formidable tools in reshaping our response to the complex challenges confronting the telecom sector. These tools will enable us to address previously unattended issues with a level of sophistication and effectiveness unparalleled in our industry.

Simultaneously, we envisage a strategic expansion into related spheres by leveraging our core competencies. This strategic broadening aims to address larger, more systemic challenges within the telecom industry, further consolidating our standing as a comprehensive solution provider in the eyes of our esteemed clientele.

The advent of 5G has ushered the telecom industry into a transformative phase teeming with both opportunities and challenges. Subex, with its robust legacy and a skilled, dedicated team, is uniquely poised to capitalize on these emerging prospects. We perceive this transformation not merely as a wave to ride, but as a promising new epoch that we are prepared to lead.

As we embark on this exhilarating journey of transformation, I wish to underscore that our unwavering dedication to you, our esteemed shareholders, remains unequivocal. Your continued faith in our vision propels us forward as we strive to reinforce Subex's position as a global vanguard in the telecom industry.

We express our heartfelt gratitude for your enduring trust and support. We eagerly anticipate progressing together on this remarkable journey, exploring new horizons, and pioneering the future contours of the telecom industry.

I see AI and 5G as the driving forces behind a transformative future, where data-driven insights and low-latency connectivity will enhance decision-making and user experiences. My vision for Subex is to leverage this convergence to enable autonomous systems, revolutionizing the telecom industry with unprecedented e_ciency and safety.

In the past few years, we have been continuously expanding our capabilities in our Hypersense line of o_erings including Fraud Management, Business Assurance, Network Asset Management, and Capacity Management. Our mission to "always evolve and never stagnate" is proving to be our biggest advantage. Deploying AI technologies has become our biggest learning opportunity enabling us to make significant advances in creating connected experiences for customers.

With trust as our core tenet of connected experiences, we remain committed to progressively broadening our playbook which now aims to create personalized, intelligentconnected experiences which also presents us with a larger total addressable market (TAM). Embracing this bold vision, we are driven to push the boundaries of innovation and set new benchmarks, striving for excellence in everything we do.

My prior experience on the board of Subex has provided me with invaluable insights into the company's operations, strategic vision, and governance. This knowledge equips me to step into the role of CEO with a comprehensive understanding of Subex's business model, the industry landscape, and our vital stakeholder relationships. With a strategic and growth mindset, I am confident in my ability to foster teamwork and build consensus among our teams.

I believe my experiences put me in an excellent position to drive Subex's success in my new role and guide the company through its transformative journey. I have a clear perspective on the levers that can unlock growth opportunities and the agility to act swiftly on them. Moreover, my familiarity with leadership and understanding of board-level issues add to my capabilities as a leader.

I am grateful for the opportunity to lead Subex and remain committed to steering the company towards continued success, leveraging my expertise and the dedication of our talented teams.

At Subex, our guiding principle is our long-term vision, which serves as the bedrock for all our financial decisions. Striking the right balance between short-term profitability and long-term growth is paramount. We will prioritize our investments, strategically, considering initiatives that promise both immediate returns and sustainable expansion.

To achieve this, strategic resource allocation will be central to maintaining a balance between current profitability and future technological investments. Our approach will be data-driven, with each investment, including AI, undergoing rigorous ROI analysis. This ensures that our choices are well-informed and contribute positively to our profitability.

Collaboration is a powerful tool, and we will seek strategic partnerships, like the one we have with Google Cloud Platform (GCP), to share the costs of research and development in AI. Such collaborations bring complementary expertise, accelerate our initiatives, and manage costs efficiently.

Diversifying our revenue streams will be key to transformation, and we will forge strong partnerships to share R&D risks. Our commitment to an ROI culture will be unwavering, with a robust institutionalized build versus buy framework to guide our decisions. Embracing innovation, we will adopt a milestone-based approach to new investments, encouraging a "fail fast, fail cheap" mindset that fosters adaptability and learning.

Diligently managing risks, especially in the realm of technology, is fundamental to our journey. An overarching risk management framework will ensure that we effectively assess and mitigate potential pitfalls.

I have a four-pronged approach toward the long-term sustainability of Subex. Firstly, customer centricity is a key priority and the anchor of our solutions. We focus on customer-driven use cases, allowing us to be agnostic to underlying tech changes.

Secondly, domain knowledge is a critical asset, and here's where AI plays a major role. We encapsulate our team's domain knowledge in AI models to minimize talent risks and differentiate our products.

Thirdly, continuous innovation at scale is vital. To achieve this, we have institutionalized a high-vitality innovation engine. Additionally, accomplishing competitive benchmarks in revenue and cash at scale enables us to fund more such initiatives.

Lastly, operational efficiency is the core of our strategy. For this, our focus is on retaining top talent and providing them with the right resources to do things faster and better, with a razor-sharp focus on cost-effectiveness.

The AI industry is indeed highly competitive. In this competitive environment, Subex sets itself apart by leveraging its extensive domain expertise and decades of experience in working with telecom datasets. This nuanced understanding allows us to make AI solutions more meaningful and impactful. Our proprietary models are tailored to address the unique challenges of the telecom sector, providing valuable insights that optimize operations, enhance revenue assurance, improve customer experiences, and effectively mitigate fraud.

We protect our uniqueness by utilizing our unique datasets and embedding AI in our products, ensuring they cannot be easily replaced. Trust is indispensable, and we double down on building strong customer relationships through exceptional experiences and superior service, capitalizing on our decades of domain knowledge.

We also employ AI to create a learning engine, making our products more interactive and capable of learning from user experiences. This innovative approach, enabled by generative AI, allows us to become the repository of connected customer experiences, setting us apart from the competition. In essence, Subex's commitment to innovation, domain expertise, customer-centricity, and cutting-edge AI technologies makes us a trusted partner for delivering tangible results in the telecommunications domain, keeping us ahead in this fiercely competitive landscape.

It would not be prudent to reveal the projects before they are launched. However, there are a few upcoming launches that I am excited about. For example, we are in the process of broadening our Hypersense AI offerings with Generative AI capabilities. I'm witnessing tremendous opportunities in unbundled and standalone AI studio functionalities.

We are also looking at offering pre-wired AI pipelines across multiple telco use cases. This is a promising opportunity for telcos that are looking to expand their "data world" intelligence capabilities. You must not miss our recently launched Connected Experiences stack pivot. It's getting rave reviews for its ability to empower telcos with personalized, reliable, trustworthy, and intelligent solutions.

Maintaining and preserving our corporate culture is essential during this transition. As we embrace our new strategic direction, I am deeply committed to upholding the values that make Subex an exceptional place to work, with a strong emphasis on fostering a culture of innovation and excellence.

Innovation has been the cornerstone of Subex's success, and I believe that it will continue to drive us forward in this new era. We will encourage and support our teams to think creatively, explore new possibilities, and challenge the status quo. Our focus will be on building truly world-class products that meet the evolving needs of our customers and the industry.

To achieve this, we will foster an environment that encourages collaboration, open communication, and knowledge sharing. Our employees will have the freedom to experiment and take calculated risks, knowing that their e_orts are valued and supported. We will nurture a culture where ideas are welcomed, and individuals are empowered to contribute to the development of ground-breaking solutions. We understand the importance of speed and agility in the current competitive landscape.

While maintaining our commitment to quality, we will emphasize faster development cycles and rapid iterations to deliver products that stay ahead of the market demands with a focus on customer-centricity. We will also invest in the right resources and technologies to accelerate product development without compromising on excellence.

As I step into the leadership role at Subex, I want to emphasize the utmost importance of fostering open and continuous communication with our shareholders, customers, and employees. Transparent and proactive communication is the foundation of strong relationships and is essential for achieving our shared goals.

To our shareholders, I assure you that we will provide regular updates on our financial performance, strategic initiatives, and any developments that impact the company's trajectory. I will benchmark peer companies and their playbooks to enhance our shareholder value creation approach. Your trust and confidence are crucial to our success, and we will be diligent in sharing information and addressing your concerns.

To our valued customers, we are committed to listening to your feedback and understanding your evolving needs. We will create various channels for communication, ensuring that your voices are heard, and your experiences are considered in every decision we make. To demonstrate our commitment, we will spend significant time with our customers and co-create solutions.

For our dedicated employees, I recognize that open and transparent communication is the cornerstone of a thriving work culture. I will prioritize regular town hall meetings, where you can openly express your thoughts, ideas, and concerns. Your passion and dedication drive our success, and your input is instrumental in shaping Subex's future.

Furthermore, when making strategic decisions, we will provide clarity on our thought processes and the factors influencing our choices. We believe in a collaborative approach and will actively seek input from all stakeholders to ensure well-informed and thoughtful decision-making.

Through consistent updates on our website, social media channels, and newsletters, we will keep all stakeholders informed about our progress, milestones, and industry insights. We will maintain an open-door policy, encouraging direct communication and accessibility.

As we embark on this exciting new phase for Subex, I want to express my deep appreciation for your continued support and trust in our vision. We are entering an era of immense potential and opportunity, and our commitment to innovation and growth remains unwavering. With an AI-first and 5G ready approach, we aim to create substantial value for our shareholders by delivering cutting-edge solutions that address the evolving needs of the telecom industry. Your investment in Subex is a testament to our collective belief in a brighter, technology-driven future, and we are dedicated to maximizing returns and long-term success.

As we take on this transformative path and move toward delivering connected experiences to our customers, I am filled with confidence and excitement for what lies ahead. Subex is well-positioned to embrace the opportunities that AI brings and emerge as a leader in the telecom industry. Our core values will guide us, and our commitment to delivering exceptional value to our stakeholders will remain steadfast. Together, we will shape a future that is marked by innovation, collaboration, and success. Thank you for being part of this remarkable journey with us.