Slide 1: Investor & Analyst Meet Q2 2015
Passionate Employees Investor & Analyst Meet Innovative Services Q2 2015 Delighted 5 August 2015 Customers © Hexaware Technologies. All rights reserved. www.hexaware.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements on this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and un
Slide 3: Business Update
Business Update © Hexaware Technologies. All rights reserved. | www.hexaware.com 3
Slide 4: Key Financials for Q2 2015
Key Financials for Q2 2015 GROWTH Q2 2015 Q1 2015 QoQ Revenue 121.31 114.92 5.56% EBITDA* 22.06 20.63 6.93% (before ESOP Cost) EBITDA 20.80 20.45 1.71% (after ESOP Cost) PAT 15.51 13.41 15.66% EPS ** 3.25 2.76 17.75% * Excludes ESOP Cost of $1.26 M in Q2, Q1 2015 restated to show ESOP cost of $0.19
Slide 5: Performance Highlights (1/2)
Performance Highlights (1/2) Before ESOP Cost REVENUE EBITDA 5.6% 121.3 114.5 114.9 23.5 22.9 6.9% 22.1 110.0 20.6 22.5 98.8 102.0 20.6 100.1 95.9 18.8 17.9 11% 14% 20% 19% -12% 2% 10% 23% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 PAT 16.7 23.1% 16.5 15.7 14.1 14.0 13.4 12.8 11.4 -10% -16% 17% 29% Q3 Q4 Q1 Q2 © Hexaw
Slide 6: Performance Highlights (2/2)
Performance Highlights (2/2) After ESOP Cost REVENUE* EBITDA* 5.6% 121.3 114.5 114.9 23.5 22.9 1.7% 110.0 20.6 22.5 20.8 98.8 100.1 95.9 102.0 20.5 18.8 17.9 11% 14% 20% 19% -12% 2% 9% 16% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 PAT* EPS Amounts in INR 16.7 15.7% 15.7 14.1 15.5 3.28 3.42 17.8% 3.25 14.0 13.4 12.8 2
Slide 7: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q2 2014 Q2 2015 CLIENT CONTRIBUTION GROWTH GROWTH $50+ 1 1 TO REVENUE QoQ YoY $30 - $50 1 3 Top 5 Clients 9.51% 41.25% $20 - $30 2 0 Top 10 Clients 6.70% 31.13% Top 20 Clients 5.25% 22.95% $10 - $20 4 5 $5 - $10 8 10 $1 - $5 40 43 >$1 56 62 Last twelve months
Slide 8: Shareholder Metrics
Shareholder Metrics RETURN ON EQUITY TOTAL SHAREHOLDER RETURNS Stock price as at the end of each quarter 28% 312.6 27% 27% 255.4 201.2 199.7 158.3 25% 25% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 DIVIDEND PAYOUT Dividend declared for the year 11.1 9.5 5.4 4.0 2
Slide 9: Business Updates
Business Updates NEW WINS IN Q2 2015 Multi-year Client Services Onboarding partner for Multi-year Automated RCM for leading Global 100 Bank (won against 4 of top 5 IOPs) healthcare provider Multi-year Global Testing COE for Global 100 Multi-year Back-office and Middle-office BPS Bank (transi
Slide 10: Employee Metrics
Employee Metrics UTILIZATION EMPLOYEE ATTRITION Range Bound Significant efforts taken to contain attrition 74.6% 16.6% 17.1% 73.6% 72.9% 73.0% 71.8% 72.1% 14.1% 70.8% 12.9% 12.7% 12.8% 12.7% 13.0% 70.3% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q
Slide 11: Geography Split
Geography Split Europe, APAC, 5.60% GROWTH 13.44% GEOGRAPHY Q2 2015 QoQ YoY North America 98.21 5.73% 22.46% Europe 16.31 8.02% 12.36% North APAC 6.80 -1.97% -6.26% America, 80.95% TOTAL 121.31 5.56% 18.98% © Hexaware Technologies. All rights reserved. | www.hexaware.com Amounts in US$ million 11
Slide 12: Broad based Growth across Verticals
Broad based Growth across Verticals Banking & GROWTH Manufacturing Financial VERTICAL Q2 2015 & Consumer*, Services, QoQ YoY 30.83% 36.63% Banking & Financial 44.44 4.10% 33.18% Services Healthcare & 18.63 6.66% 12.90% Insurance Global Travel & Global Travel 20.84 11.58% 14.57% & Healthcare & Transp
Slide 13: Broad based Growth across Service Lines
Broad based Growth across Service Lines GROWTH HORIZONTAL Q2 2015 QoQ YoY Application Development & IMS, 6.70% BPS, 5.18% ADM, Maintenance (ADM) 45.91 6.39% 24.07% ES, 14.28% 37.84% Quality Assurance & Testing 25.33 6.30% 24.73% Services (QATS) Business Intelligence & 18.34 3.64% 25.53% Analytics (B
Slide 14: Awards & Recognition
Awards & Recognition Hexaware received the NASSCOM Recognition for ‘Innovative Application of Analytics for Business Solutions’, 2015 Hexaware awarded the Yuva Gratitude Award, 2015 for contribution towards CSR activities Various Gartner reports during Q2 2015 mentioned Hexaware. These reports are t
Slide 15: Financial Update
Financial Update © Hexaware Technologies. All rights reserved. | www.hexaware.com 15
Slide 16: Revenue
Revenue • Q2 2015(AMJ) Revenue in US$ terms at $ 121.3 mn; up 5.6% QoQ; & up 19.0 % YoY – Constant currency growth is 5.5% • INR Revenue for the quarter at INR 772 crores; up 8.2% QoQ; and 26.5 % YoY © Hexaware Technologies. All rights reserved. | www.hexaware.com 16
Slide 17: Revenue Analysis – QoQ walk
Revenue Analysis – QoQ walk 6.2% Volume Growth 123.00 3.7 0.1 121.3 121.00 (0.8) 119.00 2.7 USD Mn---------------> 117.00 0.7 114.9 Increases 115.00 Decreases 113.00 111.00 109.00 107.00 Volume Bill Rates Mix Revenue Q1 15 Calendar Revenue Q2 15 FX - © Hexaware Technologies. All rights reserved. | w
Slide 18: EBITDA Margin Walk
EBITDA Margin Walk • EBITDA margin for the quarter was 18.2%, 20 bps higher than last quarter • Gross margin for Q2 2015 at 36%; higher by 30 bps mainly due to following reasons bps Calendar 107 Higher Onsite Mix (90) Higher Onsite Utilisation 158 One time Termination Cost (77) One time H1B visa Cos
Slide 19: ESOP - Long term grant with performance based conditions
ESOP -Long term grant with performance based conditions - Option issued 8.2 Mn -Cost Impact worked out on the basis of Fair Market value Excluding Option Cost Reported ( Inc Option Cost ) Option KEY METRICS Q1 2015 Q2 2015 QoQ Q1 2015 Q2 2015 QoQ Impact Gross Margin 41.02 43.69 6.5% 41.02 43.69 6.5%
Slide 20: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Forex Position Currency Pair Full-term Hedge Effective Avg. Rate USDINR ($ Mn) 177.00 67.73 EURNR (€ Mn) 6.68 75.68 Total ($ Mn) 184.47 Note - 1.All hedges outstanding are full-term. 2. EURUSD exchange rate applied is 1.1188. 3. Avg. Rate has been wor
Slide 21: Forex Gains/(Losses)
Forex Gains/(Losses) • Forex gain of $1.0 Mn this quarter 1.5 vs loss of $2.2 Mn in Q1’15. 1.2 1.0 0.9 • Loss on account of partial term 1.0 USD Mn-----------> hedges was USD 0.6 Mn this quarter vs loss of USD 2.4 Mn in 0.5 Q1’15. - - - • This was the last quarter to be impacted by the partial-term
Slide 22: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents* at US$ 63.2 M (INR 4,023 M) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q2 2015 at 47 days; 74 days including unbilled DIVIDEND INR 2.0 per share (100%) Dividend Payout including taxes INR 725.5 mn ($ 11.40 Mn) Divi
Slide 23: Capex 2015
Capex 2015 Q1-2015 Q2-2015 H1 2015 SiruSeri 29.16 10.4 39.5 Pune - Hinjewadi - 1.0 1.0 Computers & Equipement 4.8 7.5 12.2 33.9 18.8 52.8 Overall Capex for 2015 – $ 35 mn ( Rs 217 crs ) © Hexaware Technologies. All rights reserved. | www.hexaware.com 23
Slide 24: Thank you
Passionate Employees Innovative Thank you Services Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com