Slide 1: Outcome of the Board Meeting
Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621 Date: January 23, 2020 BSE Limited The National Stock Exchange of India Ltd. Cor
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Slide 7: Consolidated Segment wise Revenue & Results
Consolidated Segment wise Revenue. & Results for the. quarter and Nine months ended December 31, 2019 IP.Lin Lakhs\ 0uartarfndM NIH fflonths Wld.ct Yurfnhd P.rtk:ulan ll•O.c--2019 30-&ep,-2019 31•0.C.2011 Jl-Oec-2019 Jl-Oec--2011 St•M•,,..2019 Unauditad Un.udit.ed Un."4it.cd Un•uditM Un.udited Audit
Slide 8: Notes to financial results
Notes: 1 These unaudited resuks have been prepared In acCOfdance with the recognition and measurement prwq>les laid down in the Indian Accounting Standard 3-1 "Interim Financial Reporting" rind AS 34"), prescribed under Section 133d the Companies Act, 2013 rud with reJevant rules Issued thereunder a
Slide 9: Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20
Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20 Digital revenues now at 54.1% of total revenues Pune, India, January 23, 2020: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformati
Slide 10: Q3FY20 Revenue and profitability snapshot
Q3FY20 Revenue and profitability snapshot Q3 FY20 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 143.3 ₹ 1020.6 (5.9%) (4.8%) (6.4%) 1.1% (0.1%) 0.8% EBITDA $ 9.8 ₹ 69.6 (54.1%) (53.6%) (39.8%) (40.6%) EBIT $ 4.0 ₹ 28.4 (74.8%) (74.5%) (69.2%) (69.6%) PAT $ 5.6 ₹ 39.5 (
Slide 11: including those factors which may affect our cost advantage, wage increases in India, our
including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our intern
Slide 12: Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20
Zensar reports 1.1% Y-o-Y growth in revenue in Q3FY20 Digital revenues now at 54.1% of total revenues Pune, India, January 23, 2020: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformati
Slide 13: Q3FY20 Revenue and profitability snapshot
Q3FY20 Revenue and profitability snapshot Q3 FY20 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 143.3 ₹ 1020.6 (5.9%) (4.8%) (6.4%) 1.1% (0.1%) 0.8% EBITDA $ 9.8 ₹ 69.6 (54.1%) (53.6%) (39.8%) (40.6%) EBIT $ 4.0 ₹ 28.4 (74.8%) (74.5%) (69.2%) (69.6%) PAT $ 5.6 ₹ 39.5 (
Slide 14: Performance Highlights
RPG ZenSar Performance Highlights Revenuein USD Million EBITDA in USD Million 4Q CQGR: 0.3% 4Q CAGR: (11.9%) 213 152.3 1418 143.3 16.2 9.8 Q3 FY19 Q2 FY20 Q3 FY20 Q3 FY19 Q2 FY20 Q3 FY20 PAT in USD Million Clients A4cQGR: (9.1%) 96 93 92 113 8.1 zy 56 o—__e__?® Q3 FY19 Q2 FY20 03 FY20 a3 FY19 Q2 FY2
Slide 15: Income Statement (USD Mn)
Income Statement (USD Mn) Income Statement (USD Mn) Q3 FY 19 FY19 Q2 FY 20 Q3 FY 20 Operating revenue 141.8 557.2 152.3 143.3 Sequential Growth 5.1% -0.7% -5.9% Year-Over-Year Growth 19.9% 19.5% 12.8% 1.1% Cost of revenue 102.8 394.6 107.9 109.5 Gross profit 39.0 162.6 44.3 33.8 Gross profit % of re
Slide 16: Income Statement (INR Mn)
Income Statement (INR Mn) Income Statement (INR Mn) Q3 FY 19 FY 19 Q2 FY20 Q3 FY20 Operating revenue 10,220 38,988 10,723 10,206 Sequential Growth 8.0% 0.6% -4.8% Year-Over-Year Growth 33.5% 29.7% 13.3% -0.1% Cost of revenue 7,409 27,626 7,600 7,796 Gross profit 2,812 11,362 3,123 2,410 Gross profit
Slide 17: Other Metrics: Revenue by Service, Industry, Geography
Other Metrics Q3 FY 19 FY 19 Q2 FY 20 Q3 FY 20 Revenue By Service Offering Digital & Application Services (DAS) 82.8% 84.4% 85.6% 84.0% Digital Services 40.2% 40.3% 44.2% 47.5% Core Application Services 42.5% 44.1% 41.3% 36.5% Cloud and Infrastructure Services (CIS) 17.2% 15.6% 14.4% 16.0% Cloud, Di
Slide 18: Other Metrics: Constant Currency
Other Metrics Q3 FY 19 FY 19 Q2 FY 20 Q3 FY 20 Constant Currency Operating revenue (Constant Currency mn) 142.4 561.1 153.7 142.5 Sequential Growth 5.5% 20.3% 0.3% -6.4% Year-Over-Year Growth 20.2% 20.3% 13.4% 0.8% Constant Currency Growth By Service Offering (QoQ %) Digital & Application Services (
Slide 19: Other Metrics: Client Data
Other Metrics Q3 FY 19 FY 19 Q2 FY 20 Q3 FY 20 Client Data Number of million dollar Clients (LTM Revenue) 1 Million dollar + 96 90 93 92 5 Million dollar + 20 19 23 24 10 Million dollar + 7 9 9 10 20 Million dollar + 2 2 2 2 Revenue from top clients Revenue- top 5 clients 38.3% 36.5% 37.6% 39.6% Rev
Slide 20: Other Metrics: Exchange Rates and Cash
Other Metrics Q3 FY 19 FY 19 Q2 FY 20 Q3 FY 20 Exchange Rates Rupee Dollar Rate Period Closing Rate 69.8 69.2 70.9 71.4 Period Average Rate 72.1 69.9 70.4 71.2 Rupee Euro Rate Period Closing Rate 80.0 77.7 77.3 80.1 Period Average Rate 82.2 80.9 78.3 78.7 Rupee GBP Rate Period Closing Rate 89.1 90.5
Slide 21: Other Metrics: Debt, Hedges, Capex, Shareholding
Other Metrics Q3 FY 19 FY 19 Q2 FY 20 Q3 FY 20 Summary of Debt Debt (USD mn) Short-term debt 30.5 23.0 25.6 23.5 Long-term debt 20.0 20.0 21.6 21.8 Total 50.5 43.0 47.2 45.3 Outstanding Hedges USD Value 74.8 115.2 126.0 133.5 Avg. Rate/ INR 72.2 72.0 71.8 72.5 GBP Value 14.3 15.8 19.0 14.6 Avg. Rate
Slide 22: About Zensar
About Zensar (www.zensar.com) Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credibl
Slide 23: Zensar Technologies Analyst Presentation, Q3 FY20
Zensar Technologies Analyst Presentation, Q3 FY20 Quarter Ending Dec 31, 2019 www.zensar.com | © Zensar Technologies 2020
Slide 24: Safe Harbor
Safe Harbor This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures
Slide 25: Company Overview
Company Overview • Part of $3 B RPG Group • Portfolio Company of the $40 B APAX Group Zensar Technologies records • Among 5 global tech companies to be listed $143.3 Mn in Q3FY20 ($597.6 on a major global stock exchange (BSE) for Mn LTM) 55+ years • 54.1% Digital Revenue, (20.2% YoY Growth) www.zens
Slide 26: Zensar Business Update
Zensar Business Update www.zensar.com | © Zensar Technologies 2020 4
Slide 27: Q3 FY20 Brief Snapshot
Q3 FY20 Brief Snapshot DIGITAL REVENUE $10 M PER ANNUM CLIENTS QoQ 1.6% l YoY 20.2% YoY +3 4Q CQGR 4.7% REVENUE GM PAT 54.1% $143.3 Million $33.8 Million $5.6 Million 50.1% Q3 FY19 7 45.5% QoQ -5.9% QoQ -23.7% QoQ -51.0% Q2 FY20 9 YoY 1.1% YoY -13.3% YoY -31.7% Q3 FY20 10 Q3 FY 19 Q2 FY 20 Q3 FY 20
Slide 28: Q3 FY20 Financials
Q3 FY20 Financials Q3 FY20 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 143.3 ₹ 1020.6 (5.9%) (4.8%) (6.4%) 1.1% (0.1%) 0.8% EBITDA $ 9.8 ₹ 69.6 (54.1%) (53.6%) (39.8%) (40.6%) EBIT $ 4.0 ₹ 28.4 (74.8%) (74.5%) (69.2%) (69.6%) PAT $ 5.6 ₹ 39.5 (51.0%) (50.5%) (31.7%)
Slide 29: Q3 FY20 Revenue Walk
Q3 FY20 Revenue Walk One-time / seasonal impact $152.3m $4.0m $1.5m $5.0m $0.8m $143.3m $2.3m Q2FY20 Furloughs Year End Volume Retail Vertical: Client Ramp ups Non Core Business Q3FY20 Discounts specific ramp downs & others (Mostly one-time) www.zensar.com | © Zensar Technologies 2020 7
Slide 30: Q3 FY20 Margin Walk
Q3 FY20 Margin Walk One-time / seasonal impact 14.0% 3.5% 11.2% 0.9% 2.1% 0.2% 0.9% 6.8% Q2FY20 Impact of one-time Impact of mix (1) Others Exchange gain Operating Leverage Q3FY20 Q3FY20 EBITDA (%) revenue decline (Utilization / EBITDA (%) EBITDA (%) Ramp downs) Adjusted for One- time / seasonality
Slide 31: Q3 FY20 Key Business Highlights
Q3 FY20 Key Business Highlights Wins, Pipeline quality and Large Deals – Strong order booking of 170M + TCV with 45% as new wins in existing and new accounts, largely all digital and next gen cloud services – Pipeline continues to remain strong at more than 1 Bn – Focus on 5+m pa potential multi-s
Slide 32: Q3 FY20 Wins
Q3 FY20 Wins Application & maintenance Application & development services for SA based financial work for a large US-based Hi- services group company tech global company $170 Infrastructure mandate for Digital transformation Mn+ an American manufacturer of mandate for a large US- lighting solutions
Slide 33: Q3 FY20 Overall Digital Growth, 20.2% YoY
Q3 FY20 Overall Digital Growth, 20.2% YoY Lines of Services • Overall Digital is now 54.1% of the Total USD Mn -5.9% QoQ $143.3 Business with 87.8% coming from Digital 1.1% YoY services and 12.2% from the Cloud and Infrastructure services business App and Digital Cloud & Infra Services Services • Di
Slide 34: Q3 FY20 Region & Vertical Split
Q3 FY20 Region & Vertical Split Percentage of Revenue In USD Region Split Vertical Split 10.2% 100.0% Revenue 15.6% 13.7% 54.5% 28.9% 2.8% Retail & Consumer Hi-Tech & Fin. Services Emerging 74.2% Services Manufacturing US Europe Africa Percentage of Revenue In USD 41.1% 13.4% 20.3% 8.6% Hi-Tech Mfg
Slide 35: Q3 FY20 Top Clients Revenue
Q3 FY20 Top Clients Revenue Million+ Dollar Clients Q3 FY19 Q2 FY20 Q3 FY20 20 Mn Dollar+ 2 2 2 10 Mn Dollar+ 7 9 10 5 Mn Dollar+ 20 23 24 1 Mn Dollar+ 96 93 92 Revenue Mix QoQ & YoY Growth Q3 FY19 Q2 FY20 Q3 FY20 QoQ YoY Top 5 Clients 38.3% 37.6% 39.6% -1.0% 4.4% Top 10 Clients 48.8% 48.0% 49.3% -3
Slide 36: Analyst Coverage & Mentions
Analyst Coverage & Mentions Awards SHRM HR Excellence Awards 2019 for Challenger in Avasant Blockchain Excellence in Leveraging HR RadarView™ Technology and Excellence in HR Analytics Aspirant in “Application and Digital Innovator in the Avasant’ s Hybrid Services in Banking –Services PEAK Enterpris
Slide 37: Living AI Journey update
Living AI Journey update Learning & Organizational Dev. Upcoming Opportunity Readiness Recommended Learning based Proactive demand forecasting on associate skills HR Sales Transformation Transformation Performance Management Internal Job Recommendation Complete implementation of For closed as well a
Slide 38: Stock Price and Shareholding Pattern
Stock Price and Shareholding Pattern Share Price in Rs. Total Volume 300 1,400,000 250 1,200,000 1,000,000 200 800,000 150 600,000 100 400,000 50 200,000 - - Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Equity Share Information: Shareholding Pattern (as
Slide 39: RPG Group Overview
Analyst Presentation for the quarter ending December 31, 2019 RPG Group Overview www.zensar.com | © Zensar Technologies 2020 17
Slide 40: RPG Group: Key Financials
RPG Group: Key Financials FY15-19 CAGR: FY15-19 Gross Total Income (Rs Cr.) EBITDA PAT EBITDA 9.8% PAT 10.4% CAGR: 5.6% 2,423 23,833 2,218 2,014 2,045 21,766 19,183 19,271 20,052 1,668 1,031 1,099 879 980 739 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Market Cap Net Worth ROE ROCE 25,0 00 9,0
Slide 41: Thank You
Thank You Thanks www.zensar.com | © Zensar Technologies 2020