Hexaware Technologies Limited · NSE:HEXT
Hexaware Technologies — Q4 2015 Earnings Presentation
28 slides from Hexaware Technologies's earnings presentation, Feb 4, 2016
Slide 1: Exchange cover letter for analyst presentation
Hexaware TECHNOLOGIES YOUR SUCCESS IS OUR FOCUS Date: 4'" February, 2016 To, To, The Manager Listing, The Manager Listing, Bombay Stock Exchange Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Fort, Bandra-Kurla Complex
Slide 2: Investor Update Q4 2015
f Innovative | Services ‘ Employees ~ ah \ Customers Investor Update Q4 2015 Shrink IT. Grow Digital. 4 February 2016 www.hexaware.com
Slide 3: Safe Harbor Statement
Hexaware Safe Harbor Statement A RE 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. Th
Slide 4: Business Update
Hexaware TECHNOLOGIES YOUR SUCCESS IS OUR FOCUS Business Update
Slide 5: Industry leading Growth for FY15
Hexaware Industry leading Growth for FY15 Mica Our primary goal was to establish growth momentum Industry leading 2015 NN TCV at 14.9% growth USD 120 million
Slide 6: Key Financials for FY15
Key Financials for FY15 GROWTH 485.47 Revenue EBITDA* (before ESOP Cost) EBITDA (after ESOP Cost) PAT EPS Diluted ** 86.59 83.32 60.65 12.94 14.9% 10.9% 6.7% 15.8% 22.1% ** Amounts in INR Hexaware TECHNOLOGIES YOUR SUCCESS IS OUR Amounts in USD million | 5
Slide 7: Key Financials for Q4 2015
Key Financials for Q4 2015 Hexaware TECHNOLOGIES YOUR SUCGESS IS OUR FOCU GROWTH GROWTH QoQ YoY Revenue 124.11 EBITDA* (before ESOP Cost) Nae EBITDA (after ESOP Cost) Bo PAT 14.68 EPS Diluted ** 3.27 125.13 24.05 22.34 17.05 3.67 0.8% | 8.4% -17.4% -13.0% -11.7% -13.5% -13.9% 4.5% -10.9% 13.2% * Exc
Slide 8: Performance Highlights
Performance Highlights REVENUE Hexaware After ESOP Cost CHNOLSCIES EBITDA 8% PAT Qi Q2 Q3 Q4 TE YOUR SUCCESS IS OUR F EPS Diluted (in wr) Previous Year = Current Year @ 200 Growth @ voy Growth Amounts in USD mi
Slide 9: Strategy Proof Points
Strategy Proof Points Micon 2015 NN Deal wins at USD 120 million NEW WINS IN Q4 2015 = Multi-million development, ASM support & testing = Multi-year deal to develop and support flagship deal for the leading Workday implementation & total health platform for a leading wellness BPaaS service provider
Slide 10: Improved Depth of Customer Relationships
TECHNOLOGIES YOUR SUCCESS IS OUR FOCUS Improved Depth of Customer Relationships i icovars Q4 2014 Q4:2015 CLIENT crowtn | ANNUAL —— : CONTRIBUTION TO Goa | GROWTH » REVENUE YoY $30 - $50 > @ ) Top 5 Clients 48% 31.5% $20 - $30 Gap Top 10 Clients -0.3% 23.5% - ) 20 Cli -0.89 16.2% $10 - $20 e = Top 2
Slide 11: Movement of Top Customers
Hexaware Movement of Top 20 Customers A ect NEW DEFINITION Top 20 Accounts by Revenue for the Quarter (instead of LTM) Two Accounts (existing clients) “on Top 20 list to be more added to Top 20 in Q4 ay Dynamic ee ES — cms | 19
Slide 12: Shareholder Metrics
Shareholder Metrics RETURN ON EQUITY 31% 28% 25% 25% Q4 2014 Q1 2015 Q22015 Q32015 Q4 2015 CHNOLOGIES TE YOUR SUCCESS IS QUA FOCUS TOTAL SHAREHOLDER RETURNS DIVIDEND PAYOUT Dividend declared for the year 8.65 6.95 Ul 5.40 2012 11.10 2013 2014 2015 Stock price as at the end of each quarter 3126 2555
Slide 13: Employee Metrics
Employee Metrics UTILIZATION Range Bound , 72.9% 73.0% 736% 69.7% Hexaware EMPLOYEE ATTRITION Significant efforts taken to contain attrition 16.6% 17.1% 174% 16.0% 72.1% 70.8% 7 14.1% | | | | | | III : i | Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2014 Q2 2014 Q3 2014 Q4 201
Slide 14: Geography Split
Geography Split Europe, 13% APAC, 6% North America, 81% Hexaware TECHNOLOGIES YOUR SUCCESS IS OUR FOCUS ANNUAL GEOGRAPHY Chon GROWTH ce YoY North America -0.2% 18.4% Europe -5.6% 6.1% APAC 1.8% -5.9% TOTAL -0.8% 14.9%
Slide 15: Broad based Growth across Verticals
Hexaware Broad based Growth across Verticals A iterate ANNUAL VERTICAL GROWTH | GROWTH Manufacturing & Banking & Financial QoQ YoY Consumer, 30% Services, 37% A p Banking & Financial 5 i; Garvices “1.1% 23.2% Global Travel & 4 4 Transportation “1.5% 13.9% Healthcare & Insurance 49% 14.5% Healthcare
Slide 16: Broad based Growth across Service Lines
Hexaware Broad based Growth across Service Lines Heya ANNUAL HORIZONTAL GROWTH | GROWTH QoQ YoY Application Development & L ie | 1) sian, “se BPS, 5% IMS, 7% ADM, 38% Maintenance (ADM) Hee ae é Enterprise Solutions (ES) 2.7% 41% Quality Assurance & Testing e ry Services (QATS) yea yet anne Intellige
Slide 17: Awards & Recognition
Awards & Recognition Hicous * Hexaware has been mentioned as one of the major contenders in the Everest Report titled “Multi-Process Human Resource Outsourcing (MPHRO) — Service Providers’ Assessment”, by analysts Rajesh Ranjan, Arkadev Basak and Harsh K. + Hexaware's revenue has been mentioned to h
Slide 18: Financial Update
Hexaware YOUR SUCCESS IS OUR FC Financial Update
Slide 19: Revenue
Revenue Hiewae Q4 2015 constant currency revenue at $124.5 mn; down 0.5% QoQ; up 10.1% YoY Q4 Revenue at $124.1 mn; down 0.8% QoQ; up 8.4% YoY FY 2015 constant currency revenue at $496.8 mn; up 17.6% YoY FY 2015 revenue at $485.5 mn; up 14.9% YoY Revenue ($ Mn) QoQGrowth —e—YoY Growth 130.0 30.0% 19
Slide 20: Revenue (INR)
Revenue Q4 Revenue at = 8,195 mn; up 0.1% QoQ; up 15.1% YoY i 8,500 8,000 7,500 7,000 6,500 Revenue (% Mn) 4.7% COGR ae 8,184 7722 7,134 Qi 2015 Q2 2015 32015 42015 FY 2015 revenue at %31,235 mn; up 21% YoY 40.0% 30.0% 20.0% 10.0% 00% QoQGrowth YoY Growth 26.5% 22.0% 21.1% 15.1% 8.2% 0.2% 7 — 0.1% Q
Slide 21: Revenue Analysis - QoQ
Revenue Analysis - QoQ Hexaware -0.1% Volume Growth 126.00 530 a » 5 x : 4 > = i E 3 = x 2 g 4 & 3 § “ é See 3 s &z rs s 3 = S2e g 2 a aweet $ 3 £S5% 5 a a < a &
Slide 22: EBITDA Margin Walk - QoQ
Hexaware EBITDA Margin Walk - QoQ + EBITDA* margin for the quarter was 16.0%( Excludes ESOP cost), 320 bps lower than last quate possess oir cis + Gross margin for Q4 2015 at 34.8%; lower by 180 bps mainly due to following reasons Calendar ih -106 Higher Onsite Utilisation 60 Increments at offshore
Slide 23: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Miercanac TECHNOLOGIES YOUR SUCCESS IS OUR FOCL! Outstanding Hedge Position Currency Pair | Amount (Mn.)| Avg. Rate USDINR ($) 156.94 69.64 EURNR (€) 5.60 76.93 GBPNR (£) 4.20| 106.41 Total ($) 169.27 Note - 1.Hedges outstanding are full-term hedges. 2. EUR conve
Slide 24: Forex Gains/(Losses)
sorecypesenrereeerrrren —EE Forex Gains/(Losses) 0.80 -—— - : = = Total Gain/(Loss) 0.68 0.60 A | fi 0.50 0.50 H i 0.40 - = a Q = 0.20 - Q415 Q116 Q2'16 © Hexaware Technologies. All rights reserved. | www.hexaware.com Forex gain of $0.68 Mn this quarter as against a gain of $1.2 Mn in Q3'15. Forex g
Slide 25: Balance Sheet Updates
Balance Sheet Updates 4 feo CASH & CASH EQUIVALENTS Cash and Cash Equivalents* at US$ 66.93 M (INR 4428 M) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q4 2015 at 49 days; 72 days including unbilled DIVIDEND INR 2.40 per share (120%) Dividend Payout including taxes INR 871.1 mn ($ 13.17 M
Slide 26: Capex 2015
Capex 2015 Overall Likely Capex Spend for 2016 — $ 40 mn ( Rs 268 crs ) Rs. In Crores [Particulars Tf ae20ts | FY-15 SiruSeri Ufee wea fi 19.68 5.2 Pune - Hinjewadi gi aepAl 1533 Computers & Equipment & Others I 20.5 47.5 | Total 53.2 67.9 UsD (Mn) _ Ht 8.04 | 21,26 Hexaware CHNOLOGIES TE YOUR SUCCE
Slide 27: Outlook 2016
Outlook = 2016 Hitexaware TECHNOLOGIES YOUR SUCCESS IS OUR FOCUS « Revenue Aspiration to continue outgrowing industry ¢ Profitability in-line with CY15 full year profitability. Q2 (AMJ) and Q3 (JAS) are expected to deliver the vast majority of the growth, with Q1 and Q4 (JFM and OND) as seasonally s
Slide 28: Passionate Employees, Innovative Services, Delighted Customers
Passionate Employees Innovative _ Services Delighted \ Customers © Hexaware Technologies. All rights reserved. | www hexaware com TECHNOLOGIES YOUR SUCCESS IS OUR FOCUS
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