Slide 1: Cover letter to stock exchanges: presentation for investor/analyst call
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 21 January 2022 The Manager, Listing The Manager, Listing BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. c/1, Dalal Street, G-Block, Bandra-Kurla Complex, MUMBAI - 400 001 MUMBAI – 400 05
Slide 2: Mphasis Earnings Q3 FY 2022: Continuity and Acceleration
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Mphasis Earnings Q3 FY 2022 Continuity and Acceleration 21st January 2022 Nitin Rakesh Chief Executive Officer and Managing Director Manish Dugar Chief Financial Officer © Mphasis 2022 Proprietary and confidential information I 1/21/2022 I 1
Slide 3: Safe Harbor
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 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 numbe
Slide 4: Key Themes Shaping Our Business
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Key Themes Shaping Our Business “HYBRID FIRST” WORKPLACE INCLUSION & SUSTAINABILITY WEB 3.0 • Work from Anywhere, Collaborate in • S&P Global Sustainability Index – 37 • Blockchain based opportunities Office percentile to 69 percentile • Env
Slide 5: Our Track Record Tells the Story: Decade-high Growth
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Our Track Record Tells the Story: Decade-high Growth Q3-FY22 Overall revenue grew 24.2% YoY in CC#; Decade-high growth Accelerated growth with larger scale Direct business grew 36.1% YoY#; Highest growth on record in Direct; Achieves $1.5B r
Slide 6: Continuing Success of Our Strategy in Numbers
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Continuing Success of Our Strategy in Numbers Revenue in USD Mn Y-o-Y 24% Direct Direct 414 414 Y-o-Y 414 Y-o-Y 385 385 Y-o-Y 385 Y-o-Y 334 334 334 259 39% 55% 28% 36% 235 36% 301 333 APPS 187 354 384 Direct 283 Americas 260 BPO 98 101 103 4
Slide 7: Sustained Broad-based Growth Across Verticals
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Sustained Broad-based Growth Across Verticals Revenue in USD Mn 414 Overall Direct Direct Direct 385 Q-o-Q Q-o-Q Y-o-Y CAGR* 334 229 8.9% 8.9% 31.6% 19.5% 210 Banking & Financial Services 178 36 7.7% 7.4% 13.4% 3.4% 34 Insurance 32 48 55 13.
Slide 8: All Constituents of Direct Growth Progressing Well; Key Clients Lead Growth
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 All Constituents of Direct Growth Progressing Well; Key Clients Lead Growth Accelerated Growth in Direct Revenue Strong Q3’22 YoY (32.4% CC) organic Q3’22: Highest YoY growth on record;3rd consecutive Quarter of 30%+ YoY organic growth Overa
Slide 9: Direct TCV Trends Stable
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Direct TCV Trends Stable Direct TCV Wins Direct: Revenue vs TCV – Strong Correlation CAGR 1,400 +43.1% 1,300 1,081 Direct Revenue (TTM in US$ Mn) 1,200 867 1,100 528 1,000 R² = 0.9283 Traditional 900 800 New Gen 700 9M FY’20 9M FY’21 9M FY’2
Slide 10: Improving Client Mining and Large-deal Metrics: Direct
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Improving Client Mining and Large-deal Metrics: Direct Client Pyramid Focus on winning large-deals (>$20M TCV) # of cumulative deal wins since Q1’18 97 Client Additions LTM avg deal size (large deals) Category Y-o-Y Q-o-Q 27 31 67 71 36 $100
Slide 11: Healthy Pipeline Growth in Chosen Areas to Boost Momentum
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Healthy Pipeline Growth in Chosen Areas to Boost Momentum New Gen Pipeline Key Highlights +10% +7% • New pipeline creation across client segments 9% has been robust with 7% growth Q-o-Q 11% 15% • Consistent focus with hyper-scaler channels D
Slide 12: Supply Chain Initiatives to Provide Operating Leverage
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Supply Chain Initiatives to Provide Operating Leverage 1 2 3 Supply Chain Levers Talent Reskilling & Deployment Expanding Talent Pool • Sourcing from Tier 3 & Tier 4 cities • >50% of Q3 hiring was freshers • >12.7k reskilled through TalentNe
Slide 13: Strong Performance in All Financial Metrics
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Strong Performance in All Financial Metrics Revenue growth Operating Profit growth* YoY 414 YoY 66 +24.0% +20.6% 385 3 61 3 M&A Charges adj 63 334 55 Reported 58 Q3’21 Q2’22 Q3’22 Q3’21 Q2’22 Q3’22 Gross Revenue in $M at average USD/INR rate
Slide 14: Summary
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Summary • Strong Direct performance sustained – FYTD 33%+ Y/Y Constant Currency Direct growth; third straight quarter of 30%+ Y/Y organic growth • KPIs moving in the right direction with our tribe-based propositions paying off o Broad-based
Slide 15: Summary
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Summary • Sustained investments align with our “Continuity and Acceleration” theme – geography footprint expansion, greater leadership breadth and depth, build-up of digital competencies, NCA o Industry-leading growth in Direct o Target orga
Slide 16: Q&A
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis 2022 Proprietary and confidential information I 1/21/2022 I 15 I
Slide 17: Analysts/Advisor Recognitions: Q3 FY '22
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 Analysts/Advisor Recognitions: Q3 FY ‘22 FORRESTER NOW Midsize RPA POLICY ADMINISTRATION SYSTEMS: EMEA LIFE MAJOR TECH Service Vendor , INSURANCE EDITION CONTENDER Q4 Robotic Process 2021 Automation CELENT | 2021 Digital Experience Platforms
Slide 18: Thank You
DocuSign Envelope ID: 490AD087-CAC8-4220-B8FD-3D293A2AD587 THANK YOU Mphasis’ purpose is to be the “Driver in Driverless Car” for Global Enterprises by applying next-generation design, architecture, and engineering services, to deliver scalable and sustainable software and technology solutions. Cust