Slide 1: Mphasis Earnings Q2 FY 2023
Leading at the speed of Clients Mphasis Earnings Q2 FY 2023 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2022 Proprietary and confidential information I 10/21/2022 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: Current Client Outlook for 2023
Current Client Outlook for 2023 In spite of macro headwinds, 2/3rd say IT services spend is expected to increase in 2023 Changing deal models to influence outsourcing spends Top priorities: Leveraging data & analytics for decision making and ‘Migration to Cloud’ 65% customers believe Vendor Consolid
Slide 4: Our Track Record Tells the Story
Our Track Record Tells the Story Q2’23 overall revenue grew 16.8% YoY in CC# Accelerated growth with larger scale Direct business grew 19.2% YoY in CC# in Direct 440^ 436 431 YoY # → 13.4% 18.5% 31.6% 19.2% 414 413 385 CQGR +3.2% 363 CAGR +13.3% 354 342 334 CAGR # 327 318 320 305 305 292 297 276 283
Slide 5: Our Strategy in Numbers
Our Strategy in Numbers Revenue in USD Mn YoY* Direct Direct 436 440 436 440 YoY* 436 440 YoY* 16.8% YoY* YoY* 385 385 385 20.4% 21.4% 28.9% 34.0% 288 297 359 362 APPS 235 408 413 Americas 301 Direct 354 19.2% 8.4% 10.6% -8.4% -8.4% BPO 101 97 90 DXC EMEA 46 42 43 -1.3% 9.0% 10.9% 7.6% Others 25 21
Slide 6: Growth Across Verticals
Growth Across Verticals Revenue in USD Mn 436 440 Overall Direct Direct 3-year 385 YoY * YoY * CAGR* 233 239 15.3% 15.7% 23.9% Banking & Financial Services 210 12.2% 12.1% 4.9% 38 37 Insurance 34 21.5% 32.8% 58.4% 58 57 TMT 48 57 56 13.7% 16.5% 19.0% Logistics & Transportation 50 Others 42 50 52 26.
Slide 7: Constituents of Direct Growth Progressing Well; Key Clients Lead Growth
Constituents of Direct Growth Progressing Well; Key Clients Lead Growth Accelerated Growth in Direct Revenue Revenue Growth in Constant Currency YoY* Overall Q2’23 YoY (19.2% CC) growth 408 413 Top 10 accounts grew 28.5% YoY 354 Top 10 Top 6 – 10 accounts grew 29.5% YoY Q2’22 Q1’23 Q2’23 Accounts in
Slide 8: New Client Acquisition: Doubled Revenues in Two Years
New Client Acquisition: Doubled Revenues in Two Years Enterprise 5 Verticals +98% LTM Q2’21 LTM Q2’22 LTM Q2’23 E5 Vertical NCA forms ~24% of overall revenue LTM Q2’21 LTM Q2’22 LTM Q2’23 Built 3 $100M Verticals* +68% +30% +41% *on quarterly annualized basis Hi-tech Insurance HCLS © Mphasis 2022 Pro
Slide 9: Pipeline Continues to Stay Strong with Renewed Tribes Stack
Pipeline Continues to Stay Strong with Renewed Tribes Stack QoQ 13% • Focus on composability to bring in scale, speed and domain Data 9% 17% • Archetype mode of selling Modernization 15% 9% – Building reusable components Value Stream Acceleration (DevOps) 11% 10% – Repeatability & Scale Security 8%
Slide 10: Direct TCV Remains Robust
Direct TCV Remains Robust Direct TCV Wins Direct: Revenue vs TCV – Strong Correlation CAGR 1,800 +29.7 % 1,286 1,239 Direct Revenue (TTM in US$ Mn) 1,600 1,024 1,400 1,200 R² = 0.852 589 Traditional 1,000 New Gen 800 TTM - Q2’20 TTM - Q2’21 TTM - Q2’22 TTM - Q2’23 600 TCV wins : $ Mn 350 500 650 800
Slide 11: Improving Client Mining and Large-deal Metrics: Direct
Improving Client Mining and Large-deal Metrics: Direct Client Pyramid Focus on winning large-deals (>$20M TCV) Client Additions 104 # of cumulative deal wins since Q1’18 Category Y-o-Y Q-o-Q $200M + 1 1 Large Deal wins has accelerated: $150M + 2 - 12 Large deals in the past 1 year compared to 6 in t
Slide 12: Strong Performance in All Financial Metrics
Strong Performance in All Financial Metrics Revenue Growth Operating Profit Growth YoY YoY + 14.3% 440 67 + 14.8 % 385 58 Q2’22 Q2’23 Q2’22 Q2’23 Gross Revenue in $M at average USD/INR rate for respective periods EBIT in $M at average USD/INR rate for respective periods EPS Growth Consistent Operati
Slide 13: The 4 Pillars of our Growth Strategy
The 4 Pillars of our Growth Strategy 1 Capability Expansion 2 Vertical Focus 3 Geo Expansion Repeatability with Deal Archetypes Full stack in core verticals Continued investment in focus geos Accelerate Hyperscaler Strategy Next Set of Verticals Focus Areas 4 Account Specific Playbook: A pillar adde
Slide 14: In Summary …
In Summary … • Direct growth is 19.2% in Q2’23; growth impacted by mortgage slowdown and furlough • Multiple KPIs moving in the right direction with our tribe-based propositions paying off: o Track record in winning large deals sustained with two large deals in Q2’23 (US$110 mn) o Continued share ga
Slide 15: Outlook for FY 2023
Outlook for FY 2023 • Continued growth focus in uncertain macro • Good operating metrics in Q2 (Application centric growth) • Continuing market-share gains with clients across tiers and verticals • Select pockets of weakness; supported by continued strong pipeline across broad set of clients • Expan
Slide 16: Q&A
Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis Proprietary and confidential information I October 21, 2022 © Mphasis 2022 Proprietary and confidential information I 10/21/2022 I 16 I
Slide 17: Awards & Recognitions: Q2 2023
Awards & Recognitions: Q2 2023 MAJOR CONTENDER Financial Crime And Compliance FCC Ranked 4 - HFS Top 10: Capital Ranked 17 – HFS Top Markets Services, 2022— Ranked 13 – HFS Top Operations – Services PEAK Matrix® 10: HCP Service Providers, Formidable Challengers 10: Cybersecurity Service Assessment 2