Slide 1: Investor Update Q1 2015
Passionate Employees Innovative Investor Update Services Q1 2015 Mar 2015 Delighted 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
www.hexaware.com Business Update © Hexaware Technologies. All rights reserved.
Slide 4: Modest Growth in a Difficult Quarter
Modest Growth in a Difficult Quarter Revenue (US$ Mn) 4.1% EBITDA (US$ Mn) 4.5% CQGR CQGR 7.5% 11.4% 14.4% 19.9% -20.2% -12.4% 1.8% 8.6% 110.0 114.5 114.9 22.4 23.5 22.5 22.9 20.6 94.8 102.0 98.8 100.1 95.9 17.9 18.8 20.4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Prior Year Current Year Prior Year Current Year PAT (U
Slide 5: Increasing Depth in Client Relationships
Increasing Depth in Client Relationships % QoQ YoY Q4 - 2014 Q1 - 2015 $50 + 1 1 Top 5 7.4% 34.4% $30$- 20+ $50 1 1 Top 10 4.8% 31.2% $20 - $30 3 3 $10 - $20 3 4 Top 20 0.9% 25.9% $5 - $10 13 11 $1 - $5 40 42 >$1 61 62 Last twelve months revenue in US$ million © Hexaware Technologies. All rights res
Slide 6: Return on Equity
Return on Equity Return on Equity (ROE) 31% 29% 29% 29% 27% 27% 27% 25% 23% 21% 19% Q2 2014 Q3 2014 Q4 2014 Q1 2015 © Hexaware Technologies. All rights reserved. | www.hexaware.com 6
Slide 7: Shareholder Metrics
Shareholder Metrics Dividend Payout: well above industry Total Shareholder Returns: Stock price as at the end of each quarter end Dividend declared for the year Share Price Movement in 2014 370 12.0 11.1 312.6 320 10.0 9.5 8.0 270 6.0 5.4 220 201.2 199.7 4.0 2.0 2.0 170 158.3 0.0 2012 2013 2014 2015
Slide 8: Business Updates
Business Updates New Client Adds in Q1 2015 New Wins in Q1 2015 1) Large Domain led Development Project Geography Client Add # in Capital Markets Americas 4 2) Implementation and Roll-out of Europe 3 Enterprise HCM Applications Asia Pacific 3 3) Data Migration for a leading insurance provider New Bo
Slide 9: Employee Metrics
Employee Metrics Utilization is improving Employee Attrition: Upward trend but significant Net addition during the quarter (incl. trainees): 84 effort to contain yielding results. Technical Utilization Employee Attrition 75.0% 74.6% 18.0% 16.6% 74.0% 73.6% 16.0% 14.1% 72.9% 73.0% 14.0% 12.9% 13.0% 7
Slide 10: Vertical Split
Vertical Split Effective 1st Jan 2015 - Previous period restated % Q1 FY 15 Q4 FY 14 Q3 FY 14 Q2 FY 14 Q1 FY 14 FY 14 Banking and Financial 37.4 36.9 36.3 33.4 32.3 34.8 Services Travel & Transportation 16.5 15.6 16.1 18.3 18.0 16.9 Healthcare & Insurance 15.6 15.5 15.9 16.8 17.5 16.4 Manufacturing,
Slide 11: Service Lines Split
Service Lines Split Effective 1st Jan 2015 - Previous period restated % Q1 FY 15 Q4 FY 14 Q3 FY 14 Q2 FY 14 Q1 FY 14 FY 14 Application Development & 37.6 36.4 36.8 36.3 37.5 36.7 Maintenance (ADM) Enterprise Solutions 15.5 16.6 17.1 18.6 18.1 17.6 Testing / QATS (Quality 20.7 20.9 20.2 19.9 21.1 20.
Slide 12: Geographies
Geographies Effective 1st Jan 2015 - Previous period restated % Q1 FY 15 Q4 FY 14 Q3 FY 14 Q2 FY 14 Q1 FY 14 FY 14 Americas 80.8 78.8 78.8 78.7 78.1 78.6 Europe 13.1 15.1 14.3 14.2 14.3 14.5 Asia Pacific 6.1 6.1 6.9 7.1 7.6 6.9 Total 100.0 100.0 100.0 100.0 100.0 100.0 As of 2014 - As reported earli
Slide 13: Awards & Recognition
Awards & Recognition During the last quarter, Hexaware was recognized as the “100 MOST TALENTED GLOBAL HR LEADERS” during World HRD Congress held by CHRO ASIA. Hexaware has won the ICAI Award for Excellence in Reporting for the second consecutive year. Hexaware has been mentioned in different Gartne
Slide 14: Financial Update
www.hexaware.com Financial Update © Hexaware Technologies. All rights reserved.
Slide 15: Revenue Walk
Revenue Walk • Q1 2015(JFM) Revenue in US$ terms at $ 114.9 mn; up 0.3% QoQ; & up 19.9 % YoY – Constant currency growth is 1.6% • INR Revenue for the quarter at INR 713 crores; up 0.2% QoQ; and 21.1 % YoY © Hexaware Technologies. All rights reserved. | www.hexaware.com 15
Slide 16: Revenue Analysis - QoQ
Revenue Analysis - QoQ 0.0% Volume Growth 1.84 114.91 115 1.12 114.54 114 (0.07) 113 (1.07) (1.45) USD Mn---------------> 112 Increases 111 Decreases 110 109 108 107 Bill Rates Volume Mix Calendar Revenue Q4 14 Revenue Q1 15 FX - © Hexaware Technologies. All rights reserved. | www.hexaware.com 16
Slide 17: EBITDA Margin Walk
EBITDA Margin Walk • EBITDA margin for the quarter was 17.8%, 220 bps lower than last quarter • Gross margin for Q1 2015 at 35.7%; lower by 170bps – Increment: (60) bps – Visa Cost : (68) bps – Other cost increase: (42) bps • SG&A at 17.9% for Q1 2015 vs 17.5 % last quarter mainly due to increase in
Slide 18: Forex Gains/(Losses)
Forex Gains/(Losses) • Forex loss of $2.2Mn this quarter vs loss of $2.4Mn in Q4’14. • Loss in forex mainly on account of old partial term hedges. • All outstanding partial term hedges were converted to full term hedges in Q4’14. • Forex gain of approx. $ 0.5Mn expected in Q2’15 @ INR exchange rate
Slide 19: Balance Sheet Update
Balance Sheet Update • Cash and Cash Equivalents* at US$ 56.3 Mn (INR 3,521 Mn) • DSO for Q1 2015 at 51 days, 77 days including unbilled • First interim dividend: – INR 2.0 per share (100%) – Dividend Payout including taxes INR 724.8 mn ($ 11.60 Mn) – Dividend Payout Ratio: 87% • Capital Expenditure
Slide 20: Thank you
Passionate Employees Innovative Services Thank you We look forward to meeting you at our Investor Day on 5th August. Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com