Slide 1: Continuity and Acceleration: Mphasis Earnings Q4 and FY 2022
Continuity and Acceleration Mphasis Earnings Q4 and FY 2022 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis, Proprietary and confidential information I April 29, 2022
Slide 2: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements (the “Forward Statements”) and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could cause actual resul
Slide 3: Uptick in Enterprise Tech Spending Projected
Uptick in Enterprise Tech Spending Projected Tech Buyers Projection Global enterprise IT services spend will grow to $1.78Tn by 2026, 2022 vs 2021 Budgets driven by consulting, managed services and implementation 2000 Global IT Services Spend Forecast ($Bn) Same 1,778 1800 18% 1,636 1600 1,498 8.7%
Slide 4: Tech-savvy Organizations Outperforming Peers
Tech-savvy Organizations Outperforming Peers 16% pts 6% pts average revenue premium across 12 industries 12% pts 10% pts 9% pts 5% pts 4% pts 3% pts 1% pts Consumer Automotive Media Chemicals Banking Energy Products and Entertainment Life Sciences Industrial Travel Insurance and Retail Telecom Produ
Slide 5: Our Track Record Tells the Story: Decade-high Growth
Our Track Record Tells the Story: Decade-high Growth Q4 FY22: Overall revenue grew 26.8% YoY in CC#; Decade-high growth Accelerated growth with larger scale in Direct; Direct business grew 37.6% YoY#; Highest growth on record Achieved $1.6Bn run-rate^ YoY 9.8% 13.7% 21.6% 36.7% 431 CAGR - 4.4% CQGR
Slide 6: Continuing Success of Our Strategy in Numbers
Continuing Success of Our Strategy in Numbers Revenue in USD Mn Direct YoY Direct 1,593 YoY YoY YoY 1,593 22% 1,593 YoY 1,309 1,240 1,309 1,309 29% 44% 1,240 1,240 25% 35% 1,001 779 1,261 APPS 788 1,462 35% 1,008 Direct 920 1,084 Americas 966 16% 26% BPO 210 339 401 18% 18% DXC EMEA 139 158 183 293
Slide 7: Sustained Broad-based Growth Across Verticals
Sustained Broad-based Growth Across Verticals 1,593 Overall Direct Direct Revenue in USD Mn YoY YoY CAGR* 1,309 1,240 856 27.1% 31.0% 22.5% 563 673 Banking & Financial Services 144 12.5% 15.3% 5.0% Insurance 141 128 Technology, Media & Telecom 211 21.1% 114% 53.5% 196 175 Logistics & Transportation
Slide 8: All Constituents of Direct Growth Progressing Well; Key Clients Lead Growth
All Constituents of Direct Growth Progressing Well; Key Clients Lead Growth Accelerated Revenue Top Accounts Leading Growth Strong FY22 (34% CC) growth; Broad Growth Overall based growth across all vectors Top 10 accounts grew 35% YoY; Top CAGR +26.1% CAGR +26.5% Top 10 6 – 10 accounts grew 48% YoY
Slide 9: Strong TCV Trend Sustained Through FY22
Strong TCV Trend Sustained Through FY22 Direct TV Wins Direct: Revenue vs TCV – Strong Correlation 1,500 CAGR Direct Revenue (TTM in US$ Mn) +39.3% 1,400 1,300 1,428 1,200 R² = 0.9306 1,112 1,100 736 1,000 Traditional 900 New Gen 800 700 FY 20 FY 21 FY 22 600 TCV Wins: $Mn 350 500 650 800 950 1,100
Slide 10: Healthy Client Pyramid: Direct
Healthy Client Pyramid : Direct Client Additions Category Y-o-Y Q-o-Q Client Pyramid 104 $150Mn+ 2 - $100Mn+ 2 - 84 $75Mn+ 1 - $50Mn+ 2 - $20Mn+ 1 1 61 $10Mn+ 4 1 $5Mn+ 5 - $1Mn+ 20 7 42 37 Healthy conversion of 60-70% clients at each stage to the next 26 22 18 Q4 FY18 Q4 FY21 Q4 FY22 15 9 10 6 7 7
Slide 11: Evolution of Tribes in Keeping with Technology Consumption Patterns
Evolution of Tribes in Keeping with Technology Consumption Patterns Tribe Enabled Pipeline Over the years, our tribes have shifted focus in alignment with the changing priorities of our clients, from differentiated solutions to YoY ‘scalable, ready now’ solutions +16% 9% Data FY 20 12% 15% Moderniza
Slide 12: Strong Performance in All Financial Metrics
Strong Performance in All Financial Metrics Revenue Growth Operating Profit Growth 69 3 431 66 YoY +25.9% 414 YoY +25.0% 3 66 M&A Charges Adj 55 Reported 63 342 Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Gross Revenue in $Mn at average USD/INR rate for respective periods EBIT in $Mn at average
Slide 13: In Summary
In Summary ▪ Rounded off a robust FY22 marked by well above-average industry growth (overall) and industry-leading growth in Direct; FY22 Direct growth at 34.4% marked by 30%+ organic growth in all four quarters ▪ KPIs moving in the right direction with our Tribe-based propositions paying off ▪ Trac
Slide 14: Outlook for FY23
Outlook for FY23 • Industry-leading growth in Direct; third-straight year of industry leading growth in Direct following on from FY21 & FY22 performance • Continuing market-share gains with clients across tiers and verticals • Robust spending plans of high-quality client base • Expansion of the addr
Slide 15: Q&A
Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html Q&A © Mphasis Proprietary and confidential information I April 29, 2022
Slide 16: Analysts/Advisor Recognitions
Analysts/Advisor Recognitions TOP LEADER & STAR Leader - Mainframe GARTNER PERFORMER & Modernization Solutions and Ranked 2 - Application RANKED 14th in Services 2022 MARKET GUIDE Modernization Services, Formidable ITs TOP LIST Challengers Insurance Services - * ISG Provider Lens 2022 U.S. Healthcar
Slide 17: Thank you
Thank you © Mphasis Proprietary and confidential information I April 29, 2022