Amdocs Limited · NASDAQ:DOX
Amdocs — Investor Day (November 2021)
84 slides from Amdocs's investor day presentation, Nov 5, 2021
Slide 1: Enter the Future
November 5th, 2021 Enter the Future Exhibit 99.1
Slide 2: Disclaimer
Disclaimer The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsid
Slide 3: Welcome
Welcome Shuky Sheffer President & Chief Executive Officer Tamar Rapaport-Dagim Chief Financial Officer & Chief Operating Officer Anthony Goonetilleke Group President, Technology & Head of Strategy
Slide 4: Speakers & Agenda
Speakers & Agenda Prepared Remarks: 9:30-11:15 ET Q&A: 11:15-12:00 ET The Amdocs Journey Shuky Sheffer, President & Chief Executive Officer Powering Experiences for a Rapidly Changing World Anthony Goonetilleke, Group President, Technology & Head of Strategy Foundation Built for Accelerated Growth T
Slide 5: The Amdocs Journey
The Amdocs Journey President & Chief Executive Officer Shuky Sheffer
Slide 6: Key messages
Key messages 1 2 3 We are at an inflection point, capturing the global growth opportunity of 5G, Cloud and Digitalization megatrends We’ve built a strong foundation with market-leading technology to drive accelerated growth Delivering double-digit total shareholder returns through continued strategy
Slide 7: Taice)
Taice) —to— Amdocs
Slide 8: Amdocs at a glance
Amdocs at a glance 28,000 Employees Driving a leadership position Unique business model 85 Countries $4.3B FY21 Revenues, 7% YoY1 Industry in society’s backbone 350+ customers Dow Jones Sustainability Index Committed to sustainability In our next-gen cloud platform $1B+ investment Industry’s best te
Slide 9: Who we are and what we do
Who we are and what we do Powering communications service providers* to deliver amazing customer experiences * CSPS We : * CSPS Playing a key role in the industry’s megatrends digitalize and automate operations accelerate migration to the cloud create differentiation in the 5G era ensure ubiquitous
Slide 10: Powering world-leading communications service providers
Powering world-leading communications service providers We support our customers in both consumer & enterprise lines of business North America Multi-Nationals Cable & Satellite Europe & Middle East APAC Caribbean & Latin America
Slide 11: Powering world-leading communications service providers
Powering world-leading communications service providers North America Multi-Nationals Cable & Satellite Europe & Middle East APAC Caribbean & Latin America We support our customers in both consumer & enterprise lines of business
Slide 12: Powering world-leading communications service providers
Powering world-leading communications service providers North America Multi-Nationals Global Cable players Europe & Middle East APAC Caribbean & Latin America We support our customers in both consumer & enterprise lines of business
Slide 13: Powering world-leading communications service providers
Powering world-leading communications service providers North America Multi-Nationals Cable & Satellite Europe & Middle East APAC Caribbean & Latin America We support our customers in both consumer & enterprise lines of business
Slide 14: Powering world-leading communications service providers
Powering world-leading communications service providers North America Multi-Nationals Cable & Satellite Europe & Middle East APAC Caribbean & Latin America We support our customers in both consumer & enterprise lines of business
Slide 15: Powering world-leading communications service providers
Powering world-leading communications service providers North America Multi-Nationals Cable & Satellite Europe & Middle East APAC Caribbean & Latin America We support our customers in both consumer & enterprise lines of business
Slide 16: Powering world-leading communications service providers
Powering world-leading communications service providers North America Multi-Nationals Cable & Satellite Europe & Middle East APAC Caribbean & Latin America We support our customers in both consumer & enterprise lines of business
Slide 17: …via our unique business model
…via our unique business model Rich & modular, integrated, mission-critical suite ‘Design-led thinking’ approach with UI-first state of mind Modern: cloud, open by design Full managed services suite: IT, network, systems operations, product lifecycle management Efficient global workforce management
Slide 18: Built foundations for accelerated growth
last 3 years: The Built foundations accelerated growth for
Slide 19: Since 2018, we've doubled-down
Since 2018, we’ve doubled-down Technology x Talents Constant innovation Active portfolio management Culture Accelerated R&D From on-premise to deep cloud capabilities Invested in cutting-edge technology capabilities to support our strategy (5G & Digital) (Cloud) (5G) Expanded employee wellbeing prog
Slide 20: FY21: A year of inflection for accelerated growth
CAGR 2.4% 7%* Revenues FY21: A year of inflection for accelerated growth * * On a pro forma & constant currency basis. Excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from the current fiscal year and comparable fiscal year and assumes exchange rates in the curre
Slide 21: Our path forward
Our path —Forward — rer sieh,
Slide 22: Our industry is reinventing the meaning of connectivity
Our industry is reinventing the meaning of connectivity for society, consumers & enterprises IoT, eSIM Remote education 5G smart industries Communications Innovative technology lies at the heart of this progress Covid-19 accelerated tectonic behavioral shifts across industries and people Green tech
Slide 23: Our strategic framework supports the industry's business needs
Our strategic framework supports the industry’s ever-changing business needs with innovative technology DIGITAL Modernize CSPs IT and transform their operations NETWORK AUTOMATION Enable CSPs to deliver & automate dynamic, optimized, real-time network-based services 5G Enable 5G monetization CLOUD A
Slide 24: Leverage past investments and address pockets of growth
Leverage our past investments and shift focus towards new platforms to address the “pockets of growth”: digitalization, cloud and 5G The move of workloads to the cloud requires network orchestration and cloud-native capabilities 5G roll-out intensifies demand for Business & Operating Support Systems
Slide 25: Well-positioned for accelerated growth
Well-positioned for accelerated growth CAGR 2.4% 7%* 8%** $4,445M $4,625M Revenues * On a pro forma & constant currency basis. Excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from the current fiscal year and comparable fiscal year and assumes exchange rates in t
Slide 26: O- amdocs
O- amdocs make. it. amazing
Slide 27: Powering Experiences for a Rapidly Changing World
Powering Experiences for a Rapidly Changing World Anthony Goonetilleke Group President, Technology & Head of Strategy
Slide 28: Disclaimer
Disclaimer The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsid
Slide 29: The World's Leading Service Providers Rely on Amdocs
The World’s Leading Service Providers Rely on Amdocs *Top CSPs by Revenue *China excluded Sources: Company annual reports, Deadline, Macrotrends, Reuters, Statista, WSJ|Markets 10 OF TOP 10 9 OF TOP 10 8 OF TOP 10 Americas Europe Asia
Slide 30: Our Platforms Enable Global Experiences at Scale
Our Platforms Enable Global Experiences at Scale $38b Subscriptions monetized* 700m Digital & print bills per/mo 300m Successful daily customer service interactions 1.7b Daily digital journeys 3.1B People Impacted by Our Platforms *life to date Amdocs Subscription Amdocs Commerce Amdocs Bill Experie
Slide 31: A World of Expanding Opportunity
A World of Expanding Opportunity
Slide 32: The World is Rapidly Changing
Technology Acceleration Human Behavior Transformation Business Model Disruption The World is Rapidly Changing
Slide 33: That Changing World IS Our Opportunity
Technology Acceleration Human Behavior Transformation Business Model Disruption That Changing World IS Our Opportunity
Slide 34: The Change is Driving Capital Infusion
The Change is Driving Capital Infusion Sources: Analysys Mason, Omdia, Gartner 5G Spend on 5G capabilities including: 5G RAN, services, core, NW automation & orchestration, NW cloud infra., BSS, OSS. 22% Digital Spend on digital strategy and customer & employee experience services across digital cha
Slide 35: 5G is Entering the Next Phase: Monetization
5G is Entering the Next Phase in Its Evolution: Monetization Source: Statista 5G Connections (b) Significant growth of 5G connections will continue, while investments in 6G begin gradually. Connected Devices Security Quality & Latency Experiences Enterprise & Industries 5G Non-standalone 5G Standalo
Slide 36: Cloud is a Significant and Growing Spend Driver
Cloud is a Significant and Growing Spend Driver Source: MarketsAndMarkets CLOUD AT SCALE CONSULTING OPERATIONS PRODUCTS MIGRATION DEVELOPMENT “As telcos move to the cloud, they get all the benefits that the cloud has been delivering to the IT world for 10-15 years.” Adolfo Hernandez VP, Telco - AWS
Slide 37: World-Class Products, Platforms & Services
World-Class Products, Platforms & Services
Slide 38: An Industry-Leading Portfolio Positions Us for Continued Acceleration
An Industry-Leading Portfolio Positions Us for Continued Acceleration Enterprise 5G Catalog Commerce & Care Monetization & Subscriptions 5G Network Management Network & Service Automation Charging & Billing IoT Cloud Services Experience Design Delivery Managed Services Systems Integration Quality En
Slide 39: A Cloud Platform That Powers an Industry
A Cloud Platform That Powers an Industry Immersive, omni-spatial experiences Frictionless commerce Ubiquitous global connectivity Hyper-personalized interactions Seamless, flexible payments Automated, proactive care Platform Principles Mission-critical, Carrier-grade
Slide 40: World Class Capabilities Delivered to World Class Customers
World Class Capabilities Delivered to World Class Customers Magic Quadrant for Integrated Revenue and Customer Management for CSPs Magic Quadrant for Operations Support Systems Global BSS Market Share Telecoms IT Application Services Global Service Design & Orchestration Market Share Global Monetiza
Slide 41: Our Portfolio Serves Customers at Every Point on Their Journey
B2C Our Portfolio Serves Customers at Every Point on Their Journey B2B2X Consumer SMB Mid-Market Large Enterprise Scale and optimize operational costs Improve agility and time to market with intelligent next generation network capabilities Accelerate 5G rollout and monetization realization Create ne
Slide 42: Use Case: 5G Monetization
Use Case: 5G Monetization Customer Challenge Customer wanted to increase capacity for real-time business, support converged products and bundles, strengthen governance and drive speed to market of innovative service offerings. Amdocs Solution Part of a broader 5G solution, we provided our catalog an
Slide 43: Use Case: Cloud Transformation
Use Case: Cloud Transformation Customer Challenge Customer wanted to migrate its BSS to the cloud to ensure it could innovate efficiently and scale. Additionally, wanted to reduce cost on data centers and more efficiently introduce changes. Amdocs Solution We migrated the customer’s BSS system to th
Slide 44: Use Case: Digital Revenue Growth
Use Case: Digital Revenue Growth Customer Challenge Customer wanted to expand its services portfolio with OTT offerings, reduce time-to-market, simplify the monetization of partner services, and make adoption easier for its customers. Amdocs Solution We provided our Partner Experience Platform (Mark
Slide 45: We Continue to Innovate to Power Future Customer Experiences
We Continue to Innovate to Power Future Customer Experiences Continued R&D Investment to Power the World’s Leaders Cutting-edge Innovation Autonomous G Intelligent Monetization Multi-access Edge Computing (MEC) Multi-device Network slices Flexible monetization Ubiquitous Connectivity (5G, 6G, Fiber)
Slide 46: ec — ie] cd) —_ O ® °) > Long-term =
ec 2 — ie] cd) —_ O ® 2 °) > Long-term =
Slide 47: We're Well Positioned to Capture a Critical and Growing Market
We’re Well Positioned to Capture a Critical and Growing Market World-leading cloud-native, scalable technology platforms Highly skilled, certified global workforce with local presence Best in class technology, development processes and delivery Deep, proven telecommunications industry expertise Time
Slide 48: O- amdocs
O- amdocs make it amazing
Slide 49: Foundation Built for Accelerated Growth
Foundation Built for Accelerated Growth Tamar Rapaport-Dagim Chief Financial Officer & Chief Operating Officer
Slide 50: Disclaimer
Disclaimer The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsid
Slide 51: Strong foundation: built for accelerated growth
Strong foundation: built for accelerated growth Business consistency: recurring revenue and visibility Capital allocation: robust FCF and disciplined investment process 1 2 4 Key messages Amdocs culture: integral differentiator to future success 5 Key drivers: multiple growth vectors 3
Slide 52: At an inflection point, built for accelerated growth
At an inflection point, built for accelerated growth Strong foundation:
Slide 53: Major development, support and operation centers serving 85 countries
Major development, support and intelligent operation centers serving 85 countries worldwide 24x7 service delivery for mission-critical systems Multiple centers worldwide, one unified operation Global knowledge management Dozens of sites: customer facing or key competency centers Israel India Mexico
Slide 54: Unique Business Model Enabled by Industry-leading Talent
Reskilling DevSecOps Cloud platform certifications Unique Business Model Enabled by Industry-leading Talent …which is constantly fueled by investing in employee talent and nurturing a culture of continuous learning Technical Certifications Awarded Among Amdocs Employees Internal career mobility Leve
Slide 55: Record number of annual project milestones deployed in FY2021
Record number of annual project milestones deployed in FY2021 Track record of delivering value is reflected in record numbers of project milestones achieved in fiscal 2021 and the sophisticated mission critical IT services we provide every day IT Operations – our global scale ~96% Project implementa
Slide 56: Revenue growth inflection in FY2021, continuing in FY2022E
Pro forma metrics exclude the financial impact of OpenMarket (which was divested on December 31, 2020) from the current fiscal year 2022, fiscal year 2021 and comparable fiscal year 2020 Revenue growth inflection in FY2021, built on our strong business foundation, continuing in FY2022E Percentage nu
Slide 57: Business consistency
Financial strength and confidence based on record 12-month backlog, recurring revenue and continued managed services adoption Business consistency:
Slide 58: Our unique business model provides strong visibility and recurring revenues
Our unique business model provides strong visibility and recurring revenues averaging roughly 75%* of total point of entry – initial project modernization award product implementation/ delivery production go-live recurring revenue - ongoing maintenance & support Our initial point of entry to a custo
Slide 59: Managed Services are a spearhead to expand customer relationships
Managed Services are a spearhead to expand and extend existing customer relationships and to penetrate new logos Only a few dozen customers generate our Managed Services revenue, leaving ample room for expansion within our customer base Leader in CSP prof. services Leader in BSS MGS Winner’s Circle
Slide 60: Multi-year engagements, near 100% renewal rates
Multi-year engagements Near 100% renewal rates over last decade Multi-year managed services agreements create valuable long-standing customer relationships which underpin our resilient business model Managed transformations: the best demonstration of the end-to-end accountability model, validated by
Slide 61: Customers are recognizing the value of Cloud Operations
Customers are recognizing the value proposition of Cloud Operations, our next-gen managed services Cloud Ops Value Proposition Zero-touch Operations End-to-end Accountability Proven Experience – in the hybrid environment Technology-driven operations Enhanced customer experience Pre-emptive, self-hea
Slide 62: 12-Month Backlog ~$3.7B record level
(1) Pro forma 12-month backlog YoY% growth: excludes the financial impact of OpenMarket (divested on December 31, 2020) from the current fiscal year and comparable fiscal year (1) (1) 12-Month Backlog ~$3.7B record level as of September 30, 2021 Leading Indicator ~80% 12-month backlog typically cove
Slide 63: Margin consistency: FY2022E guidance range 17.2% to 17.8%
Margins expected to track around the midpoint of a new guidance range of 17.2% to 17.8% in FY2022E High visibility entering the year Highly recurring revenue streams Scalable global resource allocation model Constant operating efficiency improvement Innovative tools and automation Margin consistency
Slide 64: Key drivers: Generating growth on multiple vectors
Generating growth on multiple vectors Key drivers:
Slide 65: Multiple Growth Vectors
Multiple Growth Vectors Significant room for long-term growth by servicing our large installed base of 350+ customers, and adding new logos 1 Retain and grow by building next-gen platforms for our large, long-standing customers 2 Expand footprint within underpenetrated Tier 1 customers 3 Add new log
Slide 66: Capital allocation: robust FCF and disciplined investment
Robust FCF and disciplined investment process will continue to enable our growth and returns to shareholders Capital allocation:
Slide 67: Maintain a strong balance sheet and investment grade rating
Maintain a strong balance sheet and investment grade rating Ensure continued customer confidence Retain sufficient cash for working capital purposes Reserve debt capacity, primarily for M&A Guiding Principles Committed to M&A as a strategic growth lever Long history of successful M&A M&A to accelera
Slide 68: Strong free cash flow and returns to shareholders
(Guidance) % Normalized FCF(1)/ Non-GAAP Net Income(2) Strong free cash flow(1) and committed to driving 100% earnings to cash conversion over time, with a history of returning the majority to shareholders to support value creation Normalized FCF(1)(3) ($M) % of Normalized FCF Returned to Shareholde
Slide 69: Amdocs Culture: Integral differentiator to future success
Integral differentiator to future success Amdocs Culture:
Slide 70: Promoting sustainability with our technologies
Promoting sustainability with our technologies The Enriching lives, progressing societies & driving sustainability Protecting the environment Prioritizing diversity & inclusion Digital inclusion Improving the lives of people in our communities Certified Ratings 2019 & 2020 rated as top 10% in North
Slide 71: Diversity and Inclusion
Real-time Gender data In every compensation and evaluation process Best Workplaces for Women 2021 Amdocs India 44% Women in Amdocs Israel 27% Women in top management positions ~40% Percent of total Amdocs P&L managed by women 31% Women in total Amdocs workforce PROMOTING Employability of people with
Slide 72: Digital Inclusion
Digital Inclusion Connectivity Bridging the Digital Divide Driving future employability Accessibility Digital literacy Digital skills for career in Tech We enrich lives and progress society with creativity and technology for a better-connected world. We touch billions worldwide by providing the vita
Slide 73: Protecting the environment
the environment and Protecting New Israel Campus Designed in accordance with LEED's strict green building requirements Committed to Science Based Targets By 2024: Scope 1 & 2: 24% Scope 3: 13% promoting sustainability with our technologies Encourage use of cleaner cars in London with software to mon
Slide 74: Tying it all together
Tying it all together 3:| ies
Slide 75: Revenue and earnings growth acceleration continuing in FY2022
Revenue and earnings growth acceleration is continuing in FY2022 Expect to deliver double-digit shareholder returns for the second consecutive year Total Shareholder Return(3) Diluted Non-GAAP(2)(3) EPS Growth YoY % + Dividend Yield FY21 and FY22E non-GAAP EPS growth is presented pro forma(1) (1) (1
Slide 76: O- amdocs
O- amdocs make it amazing
Slide 77: Harnessing Our Edge to Deliver Shareholder Value
Harnessing Our Edge to Deliver Shareholder Value President & Chief Executive Officer Shuky Sheffer
Slide 78: Disclaimer
Disclaimer The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsid
Slide 79: We're positioned for accelerated growth
We’re positioned for accelerated growth Best customers in an industry that is society’s backbone Highly talented employees, continuously upskilling Unparalleled tech and offerings in the industry Unique business model Innovative mindset Experienced leadership team Systematic M&A approach Focused R&D
Slide 80: Investment thesis
Investment thesis Intensified demand for our platforms CSPs look for new 5G monetization paths End-to-end solutions required to support industry’s journey to cloud Increased demand for connectivity, everywhere 5G roll-out acceleration Move of workloads to the cloud Network “cloudification” Increasin
Slide 81: i Vy ; © amdocs
i Vy ; © amdocs
Slide 82: Q&A
Q&A
Slide 83: Thank You
Thank You
Slide 84: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) Please refer to the explanation of Non-GAAP Financial Measures in Exhibit 99.1 to our Form 6-K filed with the SEC on November 2, 2021