Slide 1: Leading the Tech Forward Future
Leading the Tech Forward Future Nitin Rakesh Manish Dugar • CEO & Managing Director • CFO April 2024 www.Mphasis.com © Mphasis 2024 Proprietary and confidential information I 4/26/2024 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: New Spend Pockets Visible in an Ongoing Challenging Macro
New Spend Pockets Visible in an Ongoing Challenging Macro New areas of IT spend Geo-Politics and interest rates to push growth Changing Landscape Green shoots of activity IT spend uptrend Digitization themes Appetite for cost & visible with slow recovery expected from change continue to be top of tr
Slide 4: Infusing our Tribes and Archetypes with AI
Infusing our Tribes and Archetypes with AI $1,379 M 1 2 3 AI-driven IT Operations to improve Accelerating claims processing AI security platform based on zero reliability and uptime, for a top-3 US efficiency by 85% for a large benefits trust principles, for a Canadian bank administration provider h
Slide 5: Diversification Levers at Work
Diversification Levers at Work TMT+ Healthcare Rev* Non-BFS Rev Share % Canada Rev Growth 15% 52% Vertical Geography +42.2% 49% Healthcare Middle East Transportation Canada FY21 FY24 FY21 FY24 Hi-tech South America Revenues at 1.5X of FY21 levels APAC FY23 FY24 Insurance Targeted NCA Europe Account
Slide 6: Growth in Pipeline from Archetypes with Diversification in Chosen Areas
Growth in Pipeline from Archetypes with Diversification in Chosen Areas Archetypes Driven Growth Outside Growth in BFS Pipeline Top 10 clients BFS Non-Top 10 4.8% Growth Growth +19% +10% 15% Data 14% 15% BFS Modernization 16% 11% Non Top 10 Value Stream Acceleration 14% 8% Cyber Security 8% 16% Next
Slide 7: Healthy TCV Closures in a Challenging Environment
Healthy TCV Closures in a Challenging Environment TCV Won ($M) Focused on deal wins (>$20M TCV) 10% +5% 62 17% 47 11% 37 11% 1,428 1,379 1,313 25 6% 1,112 # of 13% cumulative 12% deal wins since Q1’18 17% 18% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 15% • Continued higher share of proactive deal wins
Slide 8: Q4FY24 Performance by Segment: Quarterly View
Q4FY24 Performance by Segment: Quarterly View 412 402 411 412 402 411 Direct Direct Direct Direct YoY QoQ YoY QoQ 0.4% 2.9% APPS 291 284 292 1.2% 2.8% Americas 333 323 333 2.1% -3.1% BPO 68 67 68 0.4% 1.8% EMEA 44 47 45 ROW 35 -2.8% -0.4% ITO -5.6% -3.6% 33 33 53 51 50 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3
Slide 9: Q4FY24 Performance by Vertical: Quarterly View
Q4FY24 Performance by Vertical: Quarterly View 412 402 411 YoY QoQ Direct ex DR YoY 193 -10.1% 2.6% -9.0% Banking & Financial Services 215 188 46 45 11.7% -1.0% 12.3% Insurance 41 TMT 58 63 66 13.5% 4.5% 17.3% Logistics & Transportation 57 55 56 -1.2% 2.2% -0.8% Others 42 51 50 19.5% -0.4% 21.6% Q4F
Slide 10: Client Pyramid Performance: Direct
Client Pyramid Performance: Direct Client Additions 134 135 • Q4FY24 Direct revenues for the quarter grew 2.0%, Category YoY QoQ 111 $200M + - - and 0.4% YoY $100M + (1) - $75M + (1) - $50M + (1) - Top Client Metrics * $20M + (2) - $10M + 5 - • Top 1-10 declined 10.8% YoY due to BFS related $5M + 2
Slide 11: Financial Metrics Quarterly Performance
Financial Metrics Quarterly Performance Revenue trend Operating Margin Trend +2.1% Stable margins, post 412 411 acquisition 402 15.3% 16.0% 15.7% 1.1% 0.8% M&A Impact Reported 14.9% 14.9% Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Gross Revenue in $M at average USD/INR rate for respective periods # R
Slide 12: FY24 in Summary: Focused on Micro in a Challenged Macro
FY24 in Summary: Focused on Micro in a Challenged Macro ▪ Invested for tech-led, strategically diversified, transformative growth ▪ Resilient pipeline across TCV archetypes, including in anchor BFS vertical ▪ Continued strengthening of AI infused capabilities – Build, Buy & Partner ▪ Diversified rev
Slide 13: FY25 Outlook: Cautious Optimism, Poised for Growth
FY25 Outlook: Cautious Optimism, Poised for Growth ▪ Despite uncertainty in spend and sentiment, FY25 outlook better than previous year ▪ Expect FY25 to be above-industry growth; gaining from tech-led, account focused strategy ▪ Continue to execute in areas of growth and invest across capabilities a
Slide 14: Link to financial data for the past three years
Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html www.Mphasis.com © Mphasis 2024 Proprietary and confidential information I 4/26/2024 I 14 I
Slide 15: Analyst Recognitions: FY24
Analyst Recognitions: FY24 © Mphasis 2024 Proprietary and confidential information I 4/26/2024 I 15 I