Slide 1: Investor Update Q3 2015
Passionate Employees Investor Update Innovative Services Q3 2015 Delighted 4 November 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 Q3 2015
Key Financials for Q3 2015 GROWTH GROWTH Q3 2015 Q2 2015 QoQ YoY Revenue 125.13 121.31 3.15% 13.72% EBITDA* 24.05 22.06 9.02% 16.73% (before ESOP Cost) EBITDA 22.34 20.80 7.42% 8.45% (after ESOP Cost) PAT 15.51 17.05 9.92% 20.68% EPS Diluted ** 3.67 3.25 12.92% 28.77% * Excludes ESOP Cost of $1.71 M
Slide 5: Performance Highlights (1/2)
Performance Highlights (1/2) Before ESOP Cost REVENUE EBITDA 3.1% 125.1 121.3 22.9 9.0% 24.0 114.5 114.9 110.0 22.5 22.1 100.1 102.0 20.6 20.6 95.9 18.8 17.9 14% 20% 19% 14% 2% 10% 23% 17% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 PAT 11.4% 18.4 16.7 16.5 14.0 13.4 14.1 12.8 11.4 -16% 17% 29% 30% Q4 Q1 Q2 Q3 © Hexawa
Slide 6: Performance Highlights (2/2)
Performance Highlights (2/2) After ESOP Cost REVENUE EBITDA 3.1% 125.1 7.4% 114.5 114.9 121.3 22.5 22.9 22.3 110.0 20.4 20.8 20.6 100.1 102.0 95.9 18.8 17.9 14% 20% 19% 14% 2% 9% 16% 8% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 PAT EPS Basic (in INR) 3.70 9.9% 17.1 3.42 12.8% 16.7 3.28 15.5 14.0 14.1 2.89 2.77 2.85 1
Slide 7: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q3 2014 Q3 2015 Top 20 Customers grow faster $50+ 1 1 than Company Average $30 - $50 1 3 CLIENT CONTRIBUTION GROWTH TO REVENUE QoQ $20 - $30 2 0 Top 5 Clients 2.31% $10 - $20 4 5 Top 10 Clients 3.27% $5 - $10 11 8 Top 20 Clients 3.82% $1 - $5 42 48 >$1 61 65
Slide 8: Shareholder Metrics
Shareholder Metrics RETURN ON EQUITY TOTAL SHAREHOLDER RETURNS Stock price as at the end of each quarter 31% 312.6 255.5 247.6 201.2 199.7 28% 27% 27% 25% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 DIVIDEND PAYOUT Dividend declared for the year 11.10 6.95 6.25 5.
Slide 9: Business Updates
Business Updates YTD NN Deals exceed USD 100 million NEW WINS IN Q3 2015 Multi-year infrastructure technology services Multi-year multi-million product maintenance and outsourcing deal for one of the largest enhancement in Agile for a leading multimedia commercial real estate and finance groups
Slide 10: Employee Metrics
Employee Metrics UTILIZATION EMPLOYEE ATTRITION Range Bound Significant efforts taken to contain attrition 74.6% 73.6% 17.1% 17.4% 72.9% 73.0% 16.6% 72.1% 70.8% 14.1% 70.3% 70.4% 13.0% 12.7% 12.8% 12.7% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q
Slide 11: Geography Split
Geography Split Europe, APAC, 5.4% GROWTH 13.8% GEOGRAPHY Q3 2015 QoQ YoY North America 101.08 2.93% 16.57% Europe 17.29 6.01% 9.60% North APAC 6.76 -0.54% -10.38% America, 80.8% TOTAL 125.13 3.15% 13.72% © Hexaware Technologies. All rights reserved. | www.hexaware.com Amounts in USD million 11
Slide 12: Broad based Growth across Verticals
Broad based Growth across Verticals GROWTH Banking & VERTICAL Q3 2015 Manufacturing Financial Services, QoQ YoY & Consumer, 29.3% 37.6% Banking & Financial 47.07 5.60% 17.86% Services Healthcare & 20.55 7.75% 17.84% Insurance Global Travel & Global Travel & 20.88 -0.91% 17.75% Transportation Transpo
Slide 13: Broad based Growth across Service Lines
Broad based Growth across Service Lines GROWTH HORIZONTAL Q3 2015 QoQ YoY Application Development & IMS, 6.9% BPS, 5.7% Maintenance (ADM) 46.67 1.66% 15.20% ADM, 37.3% ES, 14.6% Quality Assurance & Testing Services (QATS) 26.05 2.86% 16.91% Business Intelligence & Analytics (BI&A) 18.35 0.03% 9.58%
Slide 14: Awards & Recognition
Awards & Recognition Hexaware has been declared as the Winner of ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2015, by the Golden Peacock Awards Secretariat - Institute of Directors Hexaware has been mentioned in the Ovum report titled, “India IT Services Vendor Quarter
Slide 15: Financial Update
Financial Update © Hexaware Technologies. All rights reserved. | www.hexaware.com 15
Slide 16: Revenue
Revenue Q3 2015(JAS) Revenue in US$ terms at $ 125.3 mn; up 3.1% QoQ; up 13.7 % YoY Q3 Constant Currency Revenue at $125.5mn; up 3.5% QoQ; up 16.4% YoY © Hexaware Technologies. All rights reserved. | www.hexaware.com 16
Slide 17: Revenue
Revenue Q3 2015(JAS) Revenue in INR terms at `8,184 mn; up 6.0% QoQ; up 22.0 % YoY © Hexaware Technologies. All rights reserved. | www.hexaware.com 17
Slide 18: Revenue Analysis - QoQ
Revenue Analysis - QoQ 3.0% Volume Growth 1.7 126.00 0.6 125.1 2.8 124.00 (0.9) (0.4) 122.00 121.3 USD Mn---------------> 120.00 Increases 118.00 Decreases 116.00 114.00 112.00 110.00 Bill Rates Volume Mix Calendar Revenue Q2 15 Revenue Q3 15 FX - © Hexaware Technologies. All rights reserved. | www.
Slide 19: EBITDA Margin Walk
EBITDA Margin Walk • EBITDA* margin for the quarter was 19.2%( Excludes ESOP cost), 100 bps higher than last quarter • Gross margin for Q3 2015 at 36.6%; higher by 60 bps mainly due to following reasons bps Calendar 72 Lower utilisation -132 One time Termination Cost in Q2 82 One time H1B visa Cost
Slide 20: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate USDINR ($) 147.30 68.17 EURNR (€) 5.70 75.63 Total ($) 153.69 Note - 1.Hedges outstanding are full-term hedges. 2. EUR converted to USD @ 1.1206. 3. Avg. Rate = Avg. of the forward rate at which the
Slide 21: Forex Gains/(Losses)
Forex Gains/(Losses) 1.5 1.2 Total Gain/(Loss) • Forex gain of $1.2 Mn this quarter USD Mn-----------> 1.0 as against a gain of $1.0 Mn in Q2’15. 0.6 • All hedges are full-term hedges. 0.5 • Forex gain expected ~ $ 0.2 Mn in Q4’15 and ~$ 0.6 Mn Q1’16 at 0.2 exchange rate of INR 65.5875/USD. - Q3'15
Slide 22: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents* at US$ 58.19 M (INR 3816 M) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q3 2015 at 54 days; 80 days including unbilled DIVIDEND INR 2.25 per share (112.5%) Dividend Payout including taxes INR 816.5 mn ($ 12.45 Mn) D
Slide 23: Capex 2015
Capex 2015 Rs. In Crores Particulars Q1-2015 Q2-2015 Q3-2015 YTD SiruSeri 29.2 10.4 14.7 54.3 Pune - Hinjewadi - 1.0 1.2 2.2 Computers & Equipements 4.8 7.5 14.8 27.0 Total 33.92 18.84 30.70 83.46 USD (Mn) 5.17 2.87 4.68 12.73 Overall Likely Capex Spend for 2015 – $ 21 mn ( Rs 138 crs ) © Hexaware T
Slide 24: Thank you
Passionate Employees Innovative Thank you Services Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com