Slide 1: Investor Presentation
Investor Presentation April 2024 © Persistent Systems 2024
Slide 2: Forward-looking and Cautionary Statements
Forward-looking and Cautionary Statements Certain statements in 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 statement
Slide 3: We are Persistent
We are Persistent A trusted Digital Engineering and Enterprise Modernization partner $310.9M ₹3.2B $1,186.0M ₹10.9B FY24 Q4 Revenue FY24 Q4 PAT FY24 Revenue FY24 PAT +13.2% YoY +25.4% YoY +14.5% YoY +18.7% YoY $316.8M $1,296.7M $7.3B* 23,850 FY24 Q4 Annual Contract Value FY24 ACV Bookings Market Cap
Slide 4: Our journey over 33+ years infused with Cloud, Data, and AI
Our journey over 33+ years infused with Cloud, Data, and AI First Second Third Fourth Fifth Sixth Orbit Orbit Orbit Orbit Orbit Orbit 1990 – 2001 2001 – 2008 2008 – 2016 2016 – 2019 2019 – 2023 2024 onwards o Company inception o Category o Offering expansion o Catching the early o Strong positioning
Slide 5: We are fortifying our Digital Engineering heritage
We are fortifying our Digital Engineering heritage Powered by AI Software, Banking, Healthcare Hi-Tech Financial & Life Sciences Co-Innovation with & Emerging Services Clients Industries & Insurance Product & Platform Engineering Validation from Industry Experts CX & Design-Led Transformation Cloud-
Slide 6: We are focusing on an integrated approach for our next orbit
We are focusing on an integrated approach for our next orbit Fortifying Our Expanding Our Talent Operations as Footprint Boundaries @scale a Multiplier o Deepening industry- o Domain-centric capability o Elevating employee value o Reinforcing sales and leading partnerships, expansion across proposit
Slide 7: With award wins in FY24 exemplifying our commitment to delivering value
With award wins in FY24 exemplifying our commitment to delivering value… Dr. Anand Deshpande received EY “Most Promising Company” of the Sandeep Kalra recognized as the Entrepreneur Of The Year™ Award Year at the 2023 CNBC-TV18 India Best CEO in IT & ITES Category 2023 in the Services category Busin
Slide 8: Acknowledgement from analysts and advisors for our expertise
…as well as acknowledgement from analysts and advisors for our expertise Recognized as a Challenger in Named a Leader in the Everest Named Generative AI Market 2023 Gartner® Public Cloud IT Group Data and Analytics (D&A) Leader in HFS Horizons: Transformation Services MQ Services for Mid-Market Ente
Slide 9: We are helping market leaders transform their industries
We are helping market leaders transform their industries Healthcare & Life Sciences Banking, Financial Services & Insurance Software & Hi-Tech 7 of 10 5 of 10 5 of 10 30+ Top SIMD* Top Pharmaceutical Companies Companies Largest Banks Global 6 of 10 in both US & India FinTech Companies 4 of 10 4 of 1
Slide 10: Enabled by our strong presence across key geographies
Enabled by our strong presence across key geographies Canada Netherlands UK Germany Ireland France Poland Romania Rest of USA Switzerland Italy the World Japan North 2.0% America Mexico Revenue India 80.1% Costa Rica 176 Revenue Malaysia Employees Sri Lanka Singapore 2,638 Employees India Europe 7.8
Slide 11: Becoming the Ecosystem Orchestrator of Choice with our partners
And by becoming the “Ecosystem Orchestrator of Choice” with our partners Gold Partner & Direct Premier Partner Premier Partner Global Summit Partner Platinum Business CSP with 6,536+ with 2,146+ with 844+ with 2,450+ Partner with 2,031+ technologists technologists technologists technologists technol
Slide 12: We are building on our long-term growth journey
We are building on our long-term growth journey Revenue in $M 17.3% 24.0% 1,186 Revenue CAGR Revenue CAGR 1,036 from IPO to FY24 between FY20 and FY24 766 566 481 502 471 429 352 309 274 238 207 170 127 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 12 © 2024 Persistent S
Slide 13: We continue to deliver sustained profitable growth
We continue to deliver sustained profitable growth Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 315.0 310.9 295.0 300.6 15.4% 15.4% 291.7 14.6% 14.9% 14.3% 14.5% 14.5% 275.0 282.9 13.7% 274.6 255.0 264.4 tY1 255.6 42 0ll 12.2% 235.0 241.5 eX! 11.3% 11.5% $ 10.7% 11.0% 11.2% 1
Slide 14: Steady performance across our key industry segments
Enabled by steady performance across our key industry segments… Quarterly Revenue ($M) Software, Hi-Tech and Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences 140.0 95.6 80 .0 75.4 70 .0 60 .0 50 .0 40 .0 30 .0 20 .0 38.0% 38.4% 34.8% 29.3% 21.4% 16.3% 11.8% 6.3%
Slide 15: Deepening client relationships
…and by deepening client relationships Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 40 39 38 38 34 34 30 40.7% 39.6% 40.0% 39.5% 39.3% 26 37.4% 36.7% 35.0% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q
Slide 16: We operate as a socially responsible corporate citizen
We operate as a socially responsible corporate citizen… Environment Social Responsibility Governance Diversity o Carbon neutral for scope 1 o Commitment to positively o Maintain best-in-class o Build a more inclusive and 2 emissions by 2025; impact society through information governance to workplace
Slide 17: Committed towards our stated ESG goals
…and remain committed towards our stated ESG goals Snapshot of our FY23 ESG achievements Environment Diversity 46% 13,420 30% 92% 30.8% 11.4% Electricity sourced from Trees planted and nurtured Of treated wastewater in Of waste recycled from Women in the workforce Women in leadership roles renewable
Slide 18: We have delivered healthy return on capital
We have delivered healthy return on capital… Return on Capital Employed (RoCE)* Trend 30.4% 30.2% 29.3% 28.7% 26.9% 27.5% 26.8% 24.7% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 *TTM RoCE = TTM EBIT/ Average of Net Assets at the beginning and end of TTM period 18 © 2024 Persistent System
Slide 19: Industry-leading, long-term shareholder value
…and industry-leading, long-term shareholder value Persistent Total Shareholder Return Persistent 1-Year Stock Performance* v/s NIFTY 50 & NIFTY IT Index 80.3% 1 year return 1.2% 80% 3 year return 315.7% 6.2% 29% 22% 5 year return 1152.9% 23.2% March-23 July-23 November-23 March-24 Share Price Retur
Slide 20: Performance Highlights
Performance Highlights 20 © 2024 Persistent Systems
Slide 21: Anand Deshpande
“Our continued success this fiscal year is a testament to our innovative spirit, remarkable resilience, and strategic foresight, powering the digital transformation journeys of our clients. We approach every challenge as an opportunity and every achievement as a stepping-stone for future endeavors.
Slide 22: Sandeep Kalra
“As we reflect on fiscal year 2024, I would like to extend my gratitude towards our incredible team, clients, partners, and investors, whose continued trust has powered our impressive journey. Our industry-leading growth, strong operational rigor, and commitment to building differentiated capabiliti
Slide 23: Financial Highlights for Q4 FY24
Financial Highlights for Q4 FY24 Revenue ($ million) 3.4% QoQ 13.2% YoY Revenue (₹ million) 3.7% QoQ 14.9% YoY 310.9 25,905.3 300.6 24,982.2 274.6 22,544.7 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 EBIT (₹ million) 3.1% QoQ 8.0% YoY PAT (₹ million) 10.2% QoQ 25.4% YoY 3,153.2 3,744.5 3,631.0 2,861.3
Slide 24: Financial Highlights for FY24
Financial Highlights for FY24 Revenue ($ million) 14.5% Revenue (₹ million) 17.6% 1,186.0 98,215.9 83,505.9 1,036.0 FY23 FY24 FY23 FY24 EBIT (₹ million) 13.4% PAT (₹ million) 18.7%* 14,149.3 10,934.9* 12,472.3 9,210.9 * Margin % 14.9% 14.4% Margin % 11.0%* 11.1%* FY23 FY24 FY23 FY24 24 © 2024 Persis
Slide 25: Financial Highlights - Year on Year
Financial Highlights- Year on Year Revenue ($ million) Revenue (₹ million) 1,186.0 1,036.0 98,215.9 83,505.9 765.6 57,107.5 566.1 41,878.9 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 YoY% 12.9% 35.2% 35.3% 14.5% YoY% 17.4% 36.4% 46.2% 17.6% EBIT (₹ million) PAT (₹ million) 14,149.3 10,934.9 12,472.3 9,2
Slide 26: TCV and ACV Bookings for FY24
TCV and ACV Bookings for FY24 FY24 TCV* $1,828.7M FY24 TCV (New) $1,129.7M 521.4 313.1 479.3 302.0 447.7 277.4 237.2 380.3 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 ACV* $1,296.7M FY24 ACV (New) $695.7M 392.1 184.2 182.9 184.5 315.9 316.8 271.9 144.1 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1
Slide 27: Key wins for Q4 FY24
Key wins for Q4 FY24 Software, Hi-Tech & Banking, Financial Healthcare Emerging Industries Services & Insurance & Life Sciences Spearheading IT transformation initiatives, Accelerating digital transformation and Developing a modern data and analytics including upgrading legacy middleware automation
Slide 28: Notable News and Achievements
Notable News and Achievements 28 © 2024 Persistent Systems
Slide 29: Shareholder Update: Stock Split
Shareholder Update: Stock Split Effective April 1, 2024, as approved by the shareholders, the face value of the shares has been revised from ₹10 per share to ₹5 per share* *One share of Face Value ₹10 has been split into two shares of Face Value ₹5 each 29 © 2024 Persistent Systems
Slide 30: Shareholder Update: Dividend Declaration
Shareholder Update: Dividend Declaration ₹10 The Board of Directors recommended a Final Dividend of ₹10 per share on the face value of ₹5 per share for the Financial Year 2023-24. The Dividend recommended by the Board is subject to approval at the ensuing Annual Final Dividend General Meeting. In Ja
Slide 31: Dr. Anand Deshpande Received EY Entrepreneur Of The Year Award 2023
Our Founder and Chairman was honored for his visionary leadership Dr. Anand Deshpande Received EY Entrepreneur Of The Year™ Award 2023 in the Services Category EY recognized Dr. Anand for: o Transforming the business by anticipating the client needs and creating new markets o Scale, customer centric
Slide 32: Recognized for Significant Achievement in HR Excellence
We were awarded for excellence in HR and talent development Persistent has been recognized for “Significant Achievement in HR Excellence” at the 14th Confederation of Indian Industry National HR Excellence Award for the year 2023 – 2024 CII recognized Persistent for: o Inclusive, collaborative leade
Slide 33: Delivering innovation through software engineering excellence
We are delivering innovation through software engineering excellence… Ranked as a Leader for the second year in a row and a Star Performer by Everest Group for Software Product Engineering Services 2024 The report assessed 43 vendors across: o Impact created in the market in terms of market adoption
Slide 34: Strong GenAI expertise for cloud-native transformation
…along with strong GenAI expertise for cloud-native transformation Persistent has been named a Market Leader in the HFS Horizons: Assuring the Generative Enterprise™, 2024 Horizons study The report commended Persistent for: o Investing ahead of the market in Digital Engineering and GenAI capabilitie
Slide 35: Persistent Accelerates Digital Engineering with AI-Powered SASVA
We are expediting software releases with SASVA, our Enterprise AI platform Persistent Accelerates Digital Engineering with “The integration of AI technologies “Amidst the growing number of AI aligns well with market trends, tools, customers are seeking AI-Powered SASVA™ positioning Persistent as a t
Slide 36: Persistent Launches Population Health Management Solution
And improving care quality leveraging Microsoft’s GenAI stack Persistent Launches Population “The goal of population health management is to improve Health Management Solution Using overall health of a population by applying cost-efficient Microsoft Azure OpenAI Service interventions designed to pro
Slide 37: Accelerating delivery of hyperautomation and low code applications
While accelerating the delivery of hyperautomation and low code applications “Congratulations to Persistent Systems on their remarkable achievement …This prestigious recognition underscores Won Partner of the Year for 6th consecutive year, for Persistent Systems' unwavering collaboration with client
Slide 38: Financial Details
Financial Details 38 © 2024 Persistent Systems
Slide 39: Sequential Q4 FY24 vs Q3 FY24
Sequential Q4 FY24 vs Q3 FY24 % of Sales % of Sales Particulars Q4FY24 Q3FY24 Change QoQ Q4FY24 Q3FY24 Revenue ($ M) 310.89 300.55 3.4% Avg. Exchange Rate Rs. / US$ 83.33 83.12 0.2% Revenue (₹ M) 25,905.26 24,982.16 3.7% ₹M ₹M Total Direct costs 17,286.31 16,539.12 4.5% 66.7% 66.2% Gross Profit 8,61
Slide 40: YoY Comparison Q4 FY24 vs Q4 FY23
YoY Comparison Q4 FY24 vs Q4 FY23 % of Sales % of Sales Particulars Q4FY24 Q4FY23 Change YoY Q4FY24 Q4FY23 Revenue ($ M) 310.89 274.55 13.2% Avg. Exchange Rate Rs. / US$ 83.33 82.12 1.5% Revenue (₹ M) 25,905.26 22,544.72 14.9% ₹M ₹M Total Direct costs 17,286.31 14,893.75 16.1% 66.7% 66.1% Gross Prof
Slide 41: FY24 vs FY23
FY24 vs FY23 % of Sales % of Sales Particulars FY24 FY23 Change YoY FY24 FY23 Revenue ($ M) 1,186.05 1,035.98 14.5% Avg. Exchange Rate Rs. / US$ 82.81 80.61 2.7% Revenue (₹ M) 98,215.87 83,505.92 17.6% ₹M ₹M Total Direct costs 65,231.09 55,315.32 17.9% 66.4% 66.2% Gross Profit 32,984.78 28,190.60 17
Slide 42: Balance Sheet (₹ M)
Balance Sheet (₹ M) As on As on Particulars March 31, 2024 March 31, 2023 Assets PPE and Intangible Assets 22,549.98 23,574.67 Non-Current Assets 4,300.80 3,611.22 Cash and Investments 18,608.95 15,991.26 Other Current Assets 28,276.45 23,553.65 Total 73,736.18 66,730.80 Equity and Liabilities Equit
Slide 43: Fact Sheet
Fact Sheet 43 © 2024 Persistent Systems
Slide 44: Fact Sheet
Fact Sheet Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 FY24 FY23 Revenue from Operations, $M 310.9 300.6 291.7 282.9 274.6 1,186.0 1,036.0 % QoQ growth 3.4% 3.0% 3.1% 3.0% 3.9% % QoQ growth (constant 3.4% 3.1% 3.2% 2.9% 3.5% currency) Revenue % YoY growth 13.2% 13.7% 14.1% 17.1% 26.3% 14.5% 35.3% Revenue fro
Slide 45: Fact Sheet
Fact Sheet Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 FY24 FY23 BFSI 30.7% 31.2% 32.3% 33.3% 32.3% 31.9% 32.9% Segment Healthcare & Life Sciences 24.2% 21.8% 19.3% 18.6% 19.7% 21.0% 19.7% Revenue Mix Software, Hi-Tech & Emerging 45.1% 47.0% 48.4% 48.1% 48.0% 47.1% 47.4% Industries Total 100.0% 100.0% 100.0%
Slide 46: Fact Sheet
Fact Sheet Active Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 FY24 FY23 Clients Clients Billed* 382 375 375 367 359 390 358 Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 FY24 FY23 Top 1 8.0% 9.3% 10.2% 10.2% 9.3% 9.4% 9.2% Revenue Top 5 29.2% 28.0% 28.3% 27.9% 26.5% 27.7% 27.0% Concentration Top 10 40.0% 39.3% 39.5% 39
Slide 47: Fact Sheet
Fact Sheet Q4FY24 Q3FY24 Q2FY24 Q1FY24 Q4FY23 FY24 FY23 Technical 22,224 21,738 21,263 21,511 21,295 22,224 21,295 People Sales and Business Development 484 465 443 428 414 484 414 Numbers Others 1,142 1,133 1,136 1,191 1,180 1,142 1,180 Total 23,850 23,336 22,842 23,130 22,889 23,850 22,889 Q4FY24
Slide 48: © Persistent Systems 2024
OO Bevomnes Persistent /Noove '