Slide 1: Cover letter to stock exchanges
I-'EXAWARE fi Date: 30th January, 2019 To, To, The Manager Listing, The Manager Listing, Bombay Stock Exchange Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/l, G Block, Fort, Bandra-Kurla Complex Mumbai - 400 023 Bandra (E), Mumba
Slide 2: Investor Update Q4 2018
HEXAWARE Investor Update Q4 2018 30% January 2019 © Hexaware Technologies. All rights reserved. | www.hexaware.com
Slide 3: Safe Harbor Statement
Safe Harbor Statement ti. HEXAWARE 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. The
Slide 4: Business Update Q4 2018
Q4 2018 Business Update
Slide 5: Key Highlights
Key Highlights fi HEXAWARE II.?j Q4 Revenue II.?j FY 18 Revenue $ 176.1M • Q/Q growth of 3.0%; 3.4% in • YIY growth of 12.8%; 14.2% in ee ee • YIY growth of 11.6% $ 677.7M I FY 18 EPS f 19.65 • FY EPS growth of 17.0% • EPS of INR 20.33, 21.1% YIY growth at Sept rates*; Beat guidance of 20% YIY EPS g
Slide 6: Q4'18 Financial Performance
fi Q418 I Financial Performance HEXAWARE Amounts in $ M Q42018 Q32018 Q42017 Revenue 176 171 3.0% 156 12.80/0 EBITDA (Before ESOP Cost) 28 30 -6.1% 26 6.90/0 ~! EBITDA (After ESOP Cost) 27 29 -6.2% 25 7.90/0 ,I. PAT 17 24 -29.3%> 19 -8.6% EPS Basic (INR) 4.15 5.80 -28.4% 4.08 1.90/0 li •. :· . a. ,;
Slide 7: Revenue Walk QoQ
Revenue Walk I QoQ fi HEXAWARE In$ Mn - - 10.7 180.0 I IE:.~ (2.7) 176.1 175.0 I 171.1 J~ I (2.3) 170.0 165.0 tl (0.6) 160.0 155.0 150.0 Q318 Forex Volume Calendar Mix 0418 (incl. Furlough) ·I I•.1 1_ -Decreases 0 Increases • ki-:;:.~.:.:?;.·~~~.:-_~-:::, www.hexaware.coml© Hexaware Technologies. Al
Slide 8: Gross Margin Walk QoQ
Gross Margin Walk I QoQ fi HEXAWARE 34.0 - % ojrevenue 33.5 (0.2) 33.0 0.2 E I SG&A t 26 bps QoQ (0.6) 32.3 32.0 (0.6) (0.1 ) rl Rentals for new facilities 24 Other Cost 02 Total 26 31.0 .: ~ , Q318 Forex Volume Calendar Mix Salary Other Q418 (incl. Increments Changes Furlough) • I -Decreases Dlncre
Slide 9: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships fi HEXAWARE Q4 18 vs Q4 17 Top 20 accounts FY 2017 FY 2018 CONTRIBUTION GROWTH TOP CLIENTS GROWTHQoQ QoQ (--3") (i) \ •.",.--~-,.. . <c::: /'o~'} Top 5 Clients -0.1% 2.7% (0') -.." .•...•-~ \, ..... - .• -.~ (1') 2 Top 1 0 Clients -0.6% 1.8% '...".-." 6 4 Top
Slide 10: NN Wins
NN Wins fi HEXAWARE USD 116 million NN Deal wins in Q4-1B f) Operations transformation for a Nordic financial admin outsourcing and software company f) End to End IT outsourcing for a European shipping services company f) OevOps implementation for an American financial market company f) Agile applic
Slide 11: Employee Metrics
Employee Metrics HEXAWARE fi I UTIL.IZATION-- I [--- EMPLOYE-E ATTRm-ON- I Utilization maintained at steady rate Uptick in Attrition 17.0% 14.4% 13.8% 13.7% 13.1% 13.4% 04 01 02 03 04 01 02 03 04 04 01 02 03 04 01 02 03 04 2016 2017 2017 2017 2017 2018 2018 2018 2018 2016 2017 2017 2017 2017 2018 20
Slide 12: Growth by geography and service line
• • GROWTH GROWTH ADM 0.5% 6.4% GROWTH GROWTH GEOGRAPHY QoQ YoY ES 1.3% -0.4% QoQ YoY 1.9% II ,, 6.9% DA 2.0% 1.4% I North America I : iiiiiiiiiiiiiiiiiiiiiiiiiiiii '!!!!!!!!!!!!!!!!!!!!!!!!!! 2.3% I,' ,;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;, 11.7% -3.5% !' -7.3% BIBA -6.8% 7.3% I, , 21.5% I,
Slide 13: Business Update FY 2018
FY 2018 Business Update
Slide 14: FY18 Financial Performance
fi FY18 I Financial Performance HEXAWARE ,'" Amounts in $ M FY 2018 FY 2017 r:' ~. Revenue 678 607 11.6% EBITDA (Before ESOP Cost) 112 106 5.4%) EBITDA (After ESOP Cost) 107 101 5.6% PAT 85 77 10.2% Basic EPS (INR) (Note below) 19.65 16.79 17.0% Note: • FY EPS of INR 20.33 (3 quarter of actuals plus
Slide 15: FY | Broad based growth across portfolio
FY 18 | Broad based growth across portfolio ti. HEXAWARE APAC. PS, 13.0% 10.4% 9 oo 59% A M&C, 18.3% BFS, 42.8% : 35.9% North 76.7% H&l, 17.8% ES, 10.1% GIT, 14.1% “SS HORIZONTAL GROWTH GROWTH GEOGRAPHY GROWTH North America 7.2% Europe 26.0% APAC 32.1% TOTAL 11.8% [ ighisignewed.| www.héxewarecom 14
Slide 16: Guidance for 2019
Guidance for 2019 ti. HEXAWARE Revenue: FY Revenue growth of 12-14% organically Majority of growth will happen in later part of the year (calendar impact, impact of Q4 deal ramp-up) EBITDA: In line with revenue growth Dividend: Inline with FY18, subject to M&A activity All rights reserved | wae. hex
Slide 17: Finance Update
Finance Update
Slide 18: FY 2018 Performance
FY 2018 Performance fi HEXAWARE [USD"MI 176.1 K.~yHighUghts 171.1 168.3 o 04 revenue of $ 176.1M II 162.2 ?'······7··~;·r"."··'·,...·"'"'·· L • • Q/Q growth of 3.0%, 3.4% in CC ~'".. " ~ • YIY growth of 12.8%, 14.2% in CC 01'18 02'18 03'18 04'18 o FY Revenue of $ 677. 7M Q/Q 3.9% 3.8% 3.0% YIY 12.1%
Slide 19: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates fi HEXAWARE Average Rate Q4'18 Currency Pair Amount ($M) Q1'18 Q2'18 Q3'18 Q4'18 USDINR ($) 70.03 70.14 70.81 71.83 162.1 EURINR (€) 84.51 85.61 86.91 88.22 5.8 GBPINR (£) 94.18 95.37 97.16 98.70 11.3 Total ($M) 183.3 g g g 2. EUR converted @ 1.1464 per USD & GBP
Slide 20: Forex Gain/(Loss)
Forex Gain/{Loss) fi HEXAWARE __________ M_'__ ~_'___ _ _.h.__.._ .. •..•_..... • • ...••.•••• _ _ _ _ -- IlUSDM I - J 4.3 • Q4' 18 registered a forex loss of 3.3 $3.6M 3.0 1.9 • Forex Gains expected in next two quarters basis Q4 closing 0.4 exchange rate of INR 69.78 per 04'17 01'18 02'18 03'18 0.2
Slide 21: Balance Sheet & Other Updates
Balance Sheet & Other Updates fi HEXAWARE Cash Balance ($M) DSO (days) 119.5 83 81 108.4 71 100.6 94.0 86.4 49 t~.-~~· -"~':~ 47 47 Billed I , . /::~:~ ·\·;;:-~'J'~ 27 28 Unbilled 25 II 22 21 " , 04'17 01'18 02'18 Q3'18 Q4'18 04'17 Q1'18 Q2'18 Q3'18 Q4'18 Dividend (INR per share) 2.5 ~~","Y~-~, R~:-
Slide 22: Thank you
Innovative Services : ti. . Passionate HEXAWARE-. Employees T h rs | n k yo U _/ Hexeware Technologies. All rights reserved. | www. hexaware. com