Genpact Limited · NYSE:G
Genpact — Q4 and FY2016 Earnings Presentation
20 slides from Genpact's earnings presentation, Feb 10, 2017
Slide 1: Genpact Q4 & FY 2016 Earnings Presentation
Genpact Q4 & fy 2016 Earnings Presentation February 10, 2017 Ticker (NYSE: G) Exhibit 99.2
Slide 2: Forward-looking Statements
Forward-looking Statements These materials contain certain statements concerning our future growth prospects and forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertaintie
Slide 3: FY 2016 – Key Financial Highlights
FY 2016 – Key Financial Highlights Year-over-Year Comparisons: Total revenue: +4.5% (~ +6% on constant currency basis)(1) Global Clients revenue: +7.1% (~ +9% on constant currency basis) Global Client BPO revenue: +10.6% (~ +13% on constant currency basis) GE revenue: -7.0% (~ -7% on constant curren
Slide 4: Continued to Build Transformative Capabilities
Continued to Build Transformative Capabilities During 2016, Genpact: Built out a “critical mass” within our digital organization; Continued to invest in domain, digital and analytics capabilities; Opened the Lean DigitalSM Innovation Center in Silicon Valley; Established a design thinking program to
Slide 5: Global Client BPO Driving Bookings Growth
Global Client BPO Driving Bookings Growth Solid growth in Global Client BPO bookings. GE and Global Client ITO bookings declined. ($ in billions) 2016 YoY Bookings* $2.65 +3% Notes: * New bookings means the total contract value of new contracts, and certain renewals, extensions and changes to existi
Slide 6: Q4 2016 Revenue Summary
Total revenue growth at 5% (~7% on a constant currency basis) Q4 2016 Global Client revenue grew 9% (~11% on a constant currency basis) Global Client BPO revenues increased 12% (~14% on a constant currency basis) Global Client ITO revenues declined 3% Global Clients GE BPO ITO 5% YoY Growth% 9% (10)
Slide 7: Q4 2016 Adjusted Operating Income Margins Expanded Year-over-Year
Q4‘15 Q4’16 YoY Revenue $646.5 $681.7 5.4% Cost of Revenue 393.9 405.7 3.0% Gross Profit 252.6 276.1 9.3% Gross Profit % of Revenue 39.1% 40.5% 140 bps SG&A $165.4 $170.7 3.2% SG&A % of Revenue 25.6% 25.0% -60 bps Adjusted Income from Operations(1) $95.6 $113.6 18.8% Adjusted Income from Operations
Slide 8: FY 2016 Revenue Summary
Total revenue growth at 4% (~6% on a constant currency basis) FY 2016 Global Client revenue grew 7% (~9% on a constant currency basis) Global Client BPO revenues increased 11% (~13% on a constant currency basis) Global Client ITO revenues declined 6% Global Clients GE BPO ITO 4% YoY Growth% 7% (7)%
Slide 9: Client Relationships Remain Strong
Number of clients Notes: Relationship size = annual Genpact revenues from client relationships based on last four rolling quarters. Relationship Size(1) Client Relationships Remain Strong
Slide 10: FY 16 Adjusted Operating Income Margin Expanded Year-over-Year
FY‘15 FY’16 YoY Revenue $2,461.0 $2,570.8 4.5% Cost of Revenue 1,493.5 1,554.7 4.1% Gross Profit 967.5 1,016.0 5.0% Gross Profit % of Revenue 39.3% 39.5% 20 bps SG&A $608.1 $653.0 7.4% SG&A % of Revenue 24.7% 25.4% 70 bps Adjusted Income from Operations(1) $377.2 $397.4 5.4% Adjusted Income from Ope
Slide 11: EPS Year-over-Year Bridge
EPS Year-over-Year Bridge FY ‘15 FY ‘16 Adjusted Net Income ($ millions) (3)275.5307.1 Diluted Shares Outstanding (millions)(4)219.1210.1 109 7 Lower FX Re-measurement gain in FY’16 vs. FY’15 FY ‘15 GAAP EPS 128 (Cents per share) Net Adjustments(1) 126 17 Net Adjustments(1) FY ‘15 Adjusted EPS FY ‘1
Slide 12: Q4 2016 cash from operations increased
Q4 2016 cash from operations increased, primarily driven by higher operating income and DSO improvement Q4 ’15 Q4 ‘16 66% Notes: 1) Cash and Liquid Assets = Cash and cash equivalents and short-term deposits. 6% FY ‘15 FY ‘16 YoY Growth% YoY Growth% ($ in millions) ($ in millions) Cash from Operation
Slide 13: Full Year 2017 Outlook
FY 2017 Revenues ($B) Growth Constant Currency (YoY growth) 2.61 – 2.68 2% - 4% 3% - 6% Adjusted Income from Operations - Margin(1) ~15.7% Adjusted Diluted Earnings Per Share(1)(2) $1.53 - $1.57 Other Metrics Cash Flow from Operations (YoY Growth) ~4% Effective Tax Rate 20% - 21% Capital Expenditure
Slide 14: Annexure 1: Reconciliation of Adjusted Income from Operations – FY 2016
Annexure 1: Reconciliation of Adjusted Income from Operations – FY 2016 Year ended December 31st (USD, in thousands) 2015 2016 Income from operations $ 334,192 $ 340,777 Add: Stock-based compensation 24,976 25,113 Add: Amortization and impairment of acquired intangible assets (1) 23,671 25,023 Add:
Slide 15: Annexure 2: Reconciliation of Adjusted Income from Operations – Q4 2016
Annexure 2: Reconciliation of Adjusted Income from Operations – Q4 2016 Quarter ended December 31st (USD, in thousands) 2015 2016 Income from operations $ 83,446 $ 98,091 Add: Stock-based compensation 7,467 6,769 Add: Amortization and impairment of acquired intangible assets (1) 5,424 6,816 Add: Acq
Slide 16: Annexure 3: Reconciliation of Adjusted Diluted EPS – FY 2016
Annexure 3: Reconciliation of Adjusted Diluted EPS – FY 2016 (USD, per share data) Year ended December 31st 2015 2016 Diluted EPS $ 1.09 $ 1.28 Add: Stock-based compensation 0.11 0.12 Add: Amortization and impairment of acquired intangible assets (1) 0.11 0.12 Add: Acquisition-related expenses - 0.0
Slide 17: Annexure 4: Reconciliation of Adjusted Diluted EPS – Q4 2016
Annexure 4: Reconciliation of Adjusted Diluted EPS – Q4 2016 (USD, per share data) Quarter ended December 31st 2015 2016 Diluted EPS $ 0.30 $ 0.38 Add: Stock-based compensation 0.03 0.03 Add: Amortization and impairment of acquired intangible assets (1) 0.03 0.03 Less: Tax impact on stock-based comp
Slide 18: Annexure 5: Reconciliation of Outlook for Adjusted Income from Operations Margin
Annexure 5: Reconciliation of Outlook for Adjusted Income from Operations Margin Year ending December 31st, 2017 Income from operations margin 13.5% Add: Estimated stock-based compensation 1.2% Add: Estimated amortization and impairment of acquired intangible assets 0.9% Add: Estimated other income
Slide 19: Annexure 6: Reconciliation of Outlook for Adjusted Diluted EPS
Annexure 6: Reconciliation of Outlook for Adjusted Diluted EPS (Per share data) Year ending December 31st, 2017 Lower End Upper End Diluted EPS 1.32 1.36 Add: Estimated stock-based compensation 0.16 0.16 Add: Estimated amortization and impairment of acquired intangible assets 0.13 0.13 Less: Estimat
Slide 20: Thank You
THANK YOU GENERATING IMPACT DESIGN * TRANSFORM * RUN LEAN DIGITAL” GENPACT / LEAN DIGITAL” (GENERATING IMPACT™