Slide 1: Mphasis Earnings Q1 FY 2023
Consistency & Transformation Mphasis Earnings Q1 FY 2023 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 1 I
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: IT Spend Continues to Stay Robust Despite Focus on Cost and Macro Trends
IT Spend Continues to Stay Robust Despite Focus on Cost and Macro Trends IT budgets are stable at elevated levels Driven by tech themes…. Our Customers 90%+ customers have indicated continued % respondents reporting increase in Cloud tech spend. Mortgage LOB impacted by macro total IT Budget* factor
Slide 4: Consistency & Transformation
Consistency & Transformation Q1-FY23: Overall revenue grew 22.1% YoY in CC# Continued growth outperformance in Direct Direct business grew 28.3% YoY in CC# 436^ 431 YoY → 10.0% 10.2% 34.7% 26.3% 414 408 CQGR +3.3% 385 363 CAGR +13.8% 342 334 CAGR 327 323 318 320 305 305 292 297 276 283 264 269 250 2
Slide 5: Continuing Success of Our Strategy in Numbers
Continuing Success of Our Strategy in Numbers Revenue in USD Mn Y-o-Y* Y-o-Y* Direct YoY Y-o-Y* Direct YoY 431 436 431 436 431 436 363 22. 1% 363 29. 7% 31.7 % 363 30.2 % 40. 8 % 282 288 351 359 APPS 225 401 408 Americas 277 Direct 323 8. 1% 11. 2% 0. 8 % 0. 8 % BPO 97 100 97 DXC EMEA 44 28. 5% 46 4
Slide 6: Broad-based Growth Across Verticals
Broad-based Growth Across Verticals Revenue in USD Mn 431 436 Overall Direct Direct YoY YoY CAGR* 363 26.6 % 27. 8 % 24. 9 % 231 233 Banking & Financial Services 186 19.1 % 17.7 % 5.5 % 41 38 Insurance 33 15.6 % 49.5 % 59.9 % 57 58 TMT 52 57 14.0 % 19.6 % 22.4 % Logistics & Transportation 51 55 Othe
Slide 7: Leading at the Speed of Clients
Leading at the Speed of Clients Accelerated Growth in Direct Revenue YoY Strong Q1-23 YoY (28.3% CC) broad- Overall 408 based growth 401 Top 10 accounts grew 32% YoY; 323 Top 10 Top 6 – 10 accounts grew 39% YoY Q1’22 Q4’22 Q1’23 Accounts in Top 11-20 category Revenue in $M at average USD/INR rate fo
Slide 8: Strong TCV Trend Continues
Strong TCV Trend Continues Direct TCV Wins Direct: Revenue vs TCV – Strong Correlation 1,600 CAGR 1,500 Direct Revenue (LTM in US$ Mn) +24.9 % 1,358 1,400 1,225 1,300 1,200 R² = 0.8734 839 1,100 1,000 629 900 Traditional 800 New Gen 700 600 350 500 650 800 950 1,100 1,250 1,400 LTM - Q1’20 LTM - Q1’
Slide 9: New Gen Pipeline Continues to Stay Strong with Renewed Tribes
New Gen Pipeline Continues to Stay Strong with Renewed Tribes QoQ +6 % 9% • Focus on composability to bring in scale, speed and domain Data 10% 16% Modernization 17% • Archetype mode of selling 11% Value Stream Acceleration (DevOps) 11% – Building reusable components 7% Security 6% – Solution to del
Slide 10: Improving Client Mining and Large-deal Metrics
Improving Client Mining and Large-deal Metrics Client Pyramid Focus on winning large-deals (>$20M TCV) Client Additions 105 84 11 large deals in last twelve months Category Y-o-Y Q-o-Q 64 compared to 6 in the previous period. $150M + 3 1 $100M + - - $75M + 1 - 38 $50M + - - $20M + 2 1 $10M + 6 2 44
Slide 11: Strong Performance in All Financial Metrics
Strong Performance in All Financial Metrics Revenue growth YoY Operating Profit growth* YoY + 20.1 % + 20 % 431 436 69.3 69.5 3.3 2.6 M&A Charges adj 363 57.9 66.9 Reported 66.0 Q1’22 Q4’22 Q1’23 Q1’22 Q4’22 Q1’23 Gross Revenue in $M at average USD/INR rate for respective periods EBIT in $M at avera
Slide 12: In Summary
In Summary … • Direct growth well above industry at 28%+ in Q1-23 • KPIs moving in the right direction with our tribe-based propositions paying off • Track record in winning large deals sustained with 1 large US$50 million + TCV deal in Q1-23; this follows the 11 large deals wins in last 12 months •
Slide 13: Outlook for FY23
Outlook for FY23 • Continued growth momentum while watching for macro • Continuing market-share gains with clients across tiers and verticals, • Robust spending plans of high-quality client base, • Expansion of the addressable market with competency build-up (including M&A) and market expansion • St
Slide 14: Q&A
Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis Proprietary and confidential information I July 22, 2022 © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 14 I
Slide 15: Analysts/Advisor Recognitions
Analysts/Advisor Recognitions MAJOR GARTNER EMEA LIFE POLICY CONTENDER ADMINISTRATION SYSTEM DEAL TRENDS Mentioned as one of the vendors in the Property and Casualty (P&C) Insurance report - Cool Vendors in Quantum BPS – Service Provider Landscape with Services PEAK Matrix® Assessment 2022 Computing
Slide 16: Awards and Recognitions
Awards and Recognitions • Exclusive member of VMware’s Tanzu Partner Advisory Council, a by-invite- only peer-exchange platform for select partners to engage and define Tanzu’s product roadmap/news releases • Preferred solution partner status of Azure Quantum Network; Quantum Recognized in Neo asses