Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q2 FY2023 Earnings Presentation
41 slides from Happiest Minds Technologies's earnings presentation, Oct 20, 2022
Slide 1: Outcome of Board Meeting October 20, 2022
Happiest Minds Technologies Limited Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bengaluru-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investors@happiestminds.com October 20, 2022 Listing Compliance
Slide 2: Independent Auditor's Review Report - Consolidated
D I m t t Chartered Accountants e [o) | @ Prestige Trade Tower, Level 19 46, Palace Road, High Grounds : Bi I - 561 Haskins & Sells aoe Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF HAP
Slide 3: Independent Auditor's Review Report (continued)
Deloitte Haskins & Sells Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. 6. We did not review the interim financial results of the ESOP trust included in the consolidated unaud
Slide 4: Unaudited Consolidated Statement of Assets and Liabilities
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Unaudited Consolidated Statement
Slide 5: Unaudited Consolidated Financial Results Q2 and Half Year
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 (Rs. in lakhs) Statement of Unaud
Slide 6: Unaudited Consolidated Statement of Cash Flows
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Unaudited Consolidated Statement
Slide 7: Notes to Consolidated Financial Results
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Unaudited C
Slide 8: Independent Auditor's Review Report - Standalone
= Chartered Accountants Del ce) | tte Prestige Trade Tower, Level 19 . 46, Palace Road, High Grounds Haskins & Sells karat ina Karnataka, India Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS
Slide 9: Independent Auditor's Review Report (continued)
Deloitte Haskins & Sells 5. We did not review the interim financial results of the ESOP trust included in the standalone unaudited financial results, whose interim financial results reflect total assets of Rs. 40,152 lakhs as at September 30, 2022 and, total revenues of Rs. Nil and Rs. Nil for the q
Slide 10: Unaudited Standalone Statement of Assets and Liabilities
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: Investors@happiestminds.com , Tel: +91 80 6196 0300 Unaudited Standalone State
Slide 11: Unaudited Standalone Financial Results Q2 and Half Year
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: Investors@happiestminds.com , Tel: +91 80 6196 0300 (Rs. in lakhs) Statement o
Slide 12: Unaudited Standalone Statement of Cash Flows
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: Investors@happiestminds.com , Tel: +91 80 6196 0300 Unaudited Standalone State
Slide 13: Notes to Standalone Financial Results
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: Investors@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Unau
Slide 14: Investor Presentation & Fact Sheet: Q2 FY23
Investor Presentation & FACT SHEET: Q2 FY 23 October 2022
Slide 15: About Happiest Minds
About Happiest Minds Next-Gen Digital Transformation, Infrastructure, Security and Product Engineering Services Company Active Clients Digital Agile RoCE1 54 Fortune2000 / Forbes200 Billion $ Corporations RoE 91% Repeat Business Mission Statement Great Place To Work R Industry leading ▪ India's Best
Slide 16: Mission, Vision and Values
Mission, Vision and Values Our 2021-31 Vision - DELiGHT Our SMILES Values Design for Perpetuity Sharing ESG Excellence Mindful Our Mission Thought Leadership Integrity Happiest People Happiest Customers Profitable Growth Learning Ambassador for Happiness Excellence World Class Team Social Responsibi
Slide 17: Our Business
Our Business IoT Blockchain DevOps & Enterprise Digital Cloud RPA Transformation Next Gen. Product & Platform Engineering Software Defined BPM & Networking / NFV Agile and Secure Integration Infrastructure Big Data & Advanced Security Analytics Hi-Tech EduTech BFSI Mfg. / Industrial Retail / CPG Tra
Slide 18: Born Digital. Born Agile The Mindful IT Company
Born Digital . Born Agile The Mindful IT Company CREATING MINDFULLY DIGITAL CAPITAL AGILE Business Agile Transformation Organization Business Agile Insights Business Platformize & Agile Modernize Delivery Reimagining Engineering & Operational Customer Experience Excellence www.happiestminds.com Conf
Slide 19: Key Customer Wins
For a global energy For a Fortune 100 For a US-based food For a leading US energy company, Happiest pharmaceutical retailer, Happiest Minds is company, Happiest Minds Minds was chosen to corporation, Happiest helping them in launching was chosen to build a Minds is working with its IT their e-commer
Slide 20: Analyst Recognition: Everest PEAK Matrix 2022
Happiest Minds is a Happiest Minds is an ’ ’ in ‘ ’ in Everest IT Everest Industry 4.0 Security Services PEAK PEAK Matrix® 2022 Matrix® 2022 – North America \ \ Disclaimer: All logos are the property of their respective owners. www.happiestminds.com 7
Slide 21: Awards and Workplace Recognition
Happiest Minds is ranked by Happiest Minds wins the Great Place To prestigious Work®Institute Happiest Minds achieves Happiest Minds is recognized among ‘ ’ by Great Place To Work® Institute Disclaimer: All logos are the property of their respective owners. www.happiestminds.com 8
Slide 22: Operational and Financial Metrics – Q2 FY23
Operational and Financial Metrics – Q2 FY23 www.happiestminds.com
Slide 23: Results Q2 FY23
Results Q2 FY 23 A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q2 FY 23 Q1 FY 23 QoQ Q2 FY 22 YoY HY FY23 HY FY22 YoY Revenues ($'000) 44,347 42,224 5.0% 35,809 23.8% 86,571 68,960 25.5% Revenues 35,551 32,892 8.1% 26,453 34.4% 68,443 50,914 34.4% Other Income 382 104 - 959 - 486 1,8
Slide 24: Born Digital. Born Agile
Born Digital. Born Agile Digital Agile % of Revenue % of Revenue 96.9% 93.9% 93.4% 93.2% 93.4% 93.4% 93.1% 93.3% 96.8% 96.5% 96.7% 96.8% 96.6% 96.8% 96.0% 87.9% FY20 FY21 FY22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 FY20 FY21 FY22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 www.happiestminds.com 11
Slide 25: Operational & Financial Metrics: Revenue
Operational & Financial Metrics Revenue Revenue by BU Total Income (₹ Lakhs) 113,075 1.4% 79,765 21.9% 71,423 47.0% 35,933 32,996 31,048 29,228 27,412 29.7% FY20 FY21 FY 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 PES DBS IMSS Oth Inc PES : Product Engineering Services; DBS : Digital Business Solutions; IMSS :
Slide 26: Operational & Financial Metrics: EBITDA and FCF Conversion
Operational & Financial Metrics EBITDA High FCF Conversion (₹ Lakhs) Margin % (₹ Lakhs) 98.6% 26.1% Ten successive quarters of delivering EBITDA margins > 25% 29,477 99.5% 27.0% 99.6% 21,573 26.3% 26.6% 26.3% 26.3% 29,064 25.7% 98.5% 90.9% 99.4% 15.8% 99.4% 21,476 11,312 96.2% 9,434 8,775 7,688 8,15
Slide 27: Operational & Financial Metrics: Headcount, Utilization, Attrition
Operational & Financial Metrics Happiest Minds & Utilization 80.5% 79.7% 81.0% 80.6% 79.5% 79.4% 79.1% 76.9% 4,188 4,581 4,168 3,796 4,021 4,168 3,228 2,666 FY20 FY21 FY22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 24.4% 23.5% 22.7% 22.7% 21.1% 18.
Slide 28: Operational & Financial Metrics: Revenue Model
Operational & Financial Metrics Revenue Model Q2 23 Model Geography Digital Revenue1 Vertical1 6.7% 3.2% 5.8% 5.1% 10.4% 23.8% 12.8% 24.4% 16.1% 7.7% 45.4% 9.3% 12.3% 14.2% 16.6% 67.9% 75.6% 21.3% 12.5% 8.9% Americas Europe India ROW Digital Infra / Cloud SAAS T&M FP Edu Tech Hitech Retail / CPG Sec
Slide 29: Operational & Financial Metrics: Onsite/Offshore, Revenue per Customer
Operational & Financial Metrics Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 810 812 783 794 796 774 634 615 77.5% 81.0% 83.9% 84.5% 85.7% 85.7% 85.7% 84.7% 22.5% 19.0% 16.1% 15.5% 14.3% 14.3% 14.3% 15.3% FY 20 FY 21 FY 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 FY 20 FY 21 F
Slide 30: Operational & Financial Metrics: Industry and Service Mix
Operational & Financial Metrics FY20 FY21 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 FY 23 Q2 Customer Industry group Edutech 21.3% 25.6% 23.2% 22.6% 23.6% 23.2% 23.7% 23.8% Hitech 21.0% 18.2% 13.5% 18.3% 16.7% 15.8% 15.6% 16.6% BFSI 17.5% 16.4% 13.3% 12.5% 13.7% 13.2% 13.7% 14.2% Travel, Media and Enter
Slide 31: Operational & Financial Metrics: Geography and Customers
Operational & Financial Metrics FY20 FY 21 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 FY23 Q2 Revenue by Customer Geo USA 77.5% 73.4% 65.9% 66.6% 65.7% 66.4% 66.6% 67.9% India 11.9% 11.8% 13.0% 14.6% 16.2% 14.1% 15.8% 16.1% Europe 7.2% 10.4% 11.1% 9.8% 10.4% 10.4% 10.7% 9.3% ROW 3.4% 4.4% 10.0% 9.0% 7.8%
Slide 32: Operational & Financial Metrics: Headcount, DSO, EPS, Returns
Operational & Financial Metrics FY20 FY21 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY23 Q1 FY23 Q2 Happiest Minds Onsite 123 166 182 183 172 172 185 210 Offshore 2,543 3,062 3,614 3,838 3,996 3,996 4,003 4,371 Total 2,666 3,228 3,796 4,021 4,168 4,168 4,188 4,581 Happiest Minds % Onsite 4.6% 5.1% 4.8% 4.6% 4.1%
Slide 33: Operational & Financial Metrics: Revenue by Business Unit
Operational & Financial Metrics (All figures in ₹ Lakhs) FY20 FY21 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY23 Q1 FY23 Q2 Revenue by BUs IMSS 15,361 21.5% 16,421 20.6% 5,747 21.0% 6,322 21.6% 6,848 22.1% 24,168 21.4% 7,356 22.3% 7,902 22.0% DBS 19,167 26.8% 21,288 26.7% 8,046 29.4% 8,511 29.1% 8,762 28.2% 32,
Slide 34: Summary Profit & Loss Statement
Summary Profit & Loss Statement (All figures in ₹ Lakhs) FY 20 FY 21 FY 22 Q2 FY 22 Q3 FY 22 Q4 FY 22 FY 23 Q1 FY 23 Q2 Income Operating revenue 69,821 77,341 26,453 28,394 30,057 109,365 32,892 35,551 Other income 1,602 2,424 959 834 991 3,710 104 382 Total income 71,423 79,765 27,412 29,228 31,048
Slide 35: Summary Balance Sheet
(All figures in ₹ Lakhs ) 31.03.2020 31.03.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.09.2022 Assets Non-current Assets Property, plant and equipment 93 69 86 77 78 89 12,894 Goodwill 610 7,644 7,742 7,772 7,896 8,202 8,430 Financial & Other assets 5,598 10,029 11,604 20,609 11,788 24,594 3
Slide 36: Investor Contact
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Slide 37: Press Release: Q2 FY23 Results
PRESS RELEASE Happiest Minds delivers Industry leading y-o-y growth 34.4% reporting revenues of ₹ 356 Crores and continues to deliver superior EBITDA at 26.3% Net Profit at ₹ 59 Crores grows 33.7% Y-o-Y and 5.4% Q-o-Q Bengaluru, India, San Jose, California and London, October 20, 2022: Happiest Mind
Slide 38: Press Release: Results Table and Chairman Comments
A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q2 FY 23 Q1 FY 23 QoQ Q2 FY 22 YoY HY FY 23 HY FY 22 YoY Revenues ($'000) 44,347 42,224 5.0% 35,809 23.8% 86,571 68,960 25.5% Revenues 35,551 32,892 8.1% 26,453 34.4% 68,443 50,914 34.4% Other Income 382 104 - 959 - 486 1,885 - Total Inco
Slide 39: Q2 FY23 Key Project Wins
• Utilization of 80.6%, from 79.1% in last quarter Q2 FY23 Key Project Wins: • For a global energy company, Happiest Minds was chosen to provide digital transformation services across its multiple lines of businesses • For a Fortune 100 pharmaceutical corporation, Happiest Minds is working with its
Slide 40: Expansion, Analyst Mentions and Announcements
Expansion • Happiest Minds expands into the east Indian city of Bhubaneshwar in Odisha, operations to begin by December 2022. Project plan including request for allotment of land to build campus has been favorably heard by the Government of Odisha. • Happiest Minds Strengthens its Bengaluru presence
Slide 41: Forward-looking statements and contacts
decisions, and impact our ability to provide services; all of which could adversely affect our future revenue, margin, and overall financial performance. Our operations could also be negatively impacted by a range of external factors not within our control including those due to the pandemic. We do
Happiest Minds Technologies — Q2 FY2023 Earnings Presentation on 6ix