Slide 1: Cover letter to stock exchanges for investor call presentation
DocuSign Envelope ID: DDAE4015-C4FC-43CD-B763-44A1D0B6D7BF 28 May 2019 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 – 400 051 De
Slide 2: Mphasis Q4 and FY 2019 Earnings Presentation
Mphasis Q4 and FY 2019 Earnings Presentation May 28, 2019
Slide 3: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward-looking statements regarding our future business expectations and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could ca
Slide 4: Consumer Behavior and need for Agility Driving Change
Consumer Behavior and need for Agility Driving Change 1. Cloud App Dev Cloud is fundamentally changing the process for building and delivering business capabilities 2. Cloud Platforms Public Cloud Platform providers along with emergence of the Gig-Economy is accelerating the disruption of service li
Slide 5: Our Numbers tell the Story: Consistency and Transformation
Our Numbers tell the Story: Consistency and Transformation Company Revenue in USD M (gross) 300 292 +3.5% 283 280 276 269 264 260 256 260 -1.3% 252 250 240 242 240 235 237 228 229 231 227 225 225 224 224 222 220 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ’13 ’14* ’15 ’15 ’15 ’
Slide 6: Revenue Growth in FY 2019: Consistency
Revenue Growth in FY 2019: Consistency Gross Revenue Growth (CC) Gross Revenue – Q4’19 USD M CC Growth QoQ - 2.9% & 14.2% YoY 12.6% 292 9.8% 283 264 -2.5% FY-18 FY-19 Q4-18 Q3-18 Q4-19 FY-17 Strong FY19 Revenue: Consecutive year of double digit Continuing Deal Wins momentum. • Gross Revenue Growth o
Slide 7: Consistency: Strong Earnings Growth and Optimal Cash Strategy to Maximize Shareholder Value
Consistency: Strong Earnings Growth and Optimal Cash Strategy to Maximize Shareholder Value Improving Operating Margin Strong EPS Growth – 31.4% in FY19 16.1% 14.6% 15.1% 13.3% 12.8% 56.1 37.7 42.7 32.1 30.1 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 YoY % -6.3% 25.3% 13.5% 31.4% Track Record
Slide 8: DXC-Mphasis Relationship Transformation
DXC-Mphasis Relationship Transformation Predominantly IS, in Americas From Supplier to Partner FY16 FY17 Traditional Outsourcing FY18 Managed Services Apps to Cloud solution partner working with DXC Client Facing teams Strategic Solutions Partner : Apps to Cloud From Traditional Outsourcer to Soluti
Slide 9: DXC Business Transformation
DXC Business Transformation Revenue in USD M* 5.5% 82.3 82.8 77.9 71.4 73.5 67.4 -3.1% 65.5 62.9 63.4 59.6 55.4 54.7 53.5 53.8 54.0 52.5 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Business Shift Geographical Penetration 18% App Services GTM / 32%
Slide 10: FY 2020 & Beyond: We Continue our Journey of Consistency and Transformation
FY 2020 & Beyond: We Continue our Journey of Consistency and Transformation Application Services Vertical Expansion Service Transformation © Mphasis 2019 Proprietary and confidential information May 28, 2019 9
Slide 11: Accelerated Growth in Our Primary Engine: Direct Core Business
Accelerated Growth in Our Primary Engine: Direct Core Business 16.3% in CC 4.0% 159.8 166.0 Strongest YoY growth 151.3 146.0 141.5 137.6 132.8 126.6 118.9 119.6 119.4 121.2 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3FY19 Q4 FY19 CQGR % is in CC. Revenue reporte
Slide 12: Consistency: Direct growth fueled by New Gen Services
Consistency: Direct growth fueled by New Gen Services New Gen Areas Dominate New Wins Significant Revenue Growth in New Gen Services Direct TCV Wins (USD M) Direct Core Revenue (USD M*) % New Gen 36.3% CAGR 47.6% 623 616 539 551 479 45.9% New Gen 32.1% 39.7% 366 483 457 New Gen 222 Traditional 67.9%
Slide 13: Preparing for the Future: Mphasis F2B Transformation
Preparing for the Future… Mphasis ‘F2B’ Transformation™ Drivers Customer / Engagement Intelligence Core Outcomes Stakeholder Layer Layer Systems • Amazonization • Right Sized Transformations Microservices • Fast changing Markets • Shrinking the Core • Need for Personalization and APIs • Reference Ar
Slide 14: ...which is Vastly Different
…which is Vastly Different Past Today / Future • Application IDEs • Cloud Sandbox • Dev ops tools • Auto Code generators 1. Next Gen Portfolio / IP • QA Automation tools • Microservices • Decisions mostly taken by IT • Decision taken by business and IT • RFP driven Sale Process • Outcome based struc
Slide 15: By Bringing the T back into IT
By “Bringing the T back into IT” Next Gen Solutions bring together Deep Domain Expertise and Cutting Edge Technology Verticals Deep Domain Expertise • Long tenured preferred relationship with Wealth Management Consumer Banking marquee customers Healthcare Mortgage Payments Insurance Hi-Tech … Deep T
Slide 16: Operationalizing IT with an Agile GTM
Operationalizing IT with an Agile GTM Go-To-Market Teams, Organized around Tribe/Squad Model, bring Agility and Innovation to Our Clients Modernization Portfolio Dev Deal Squad Delivery Squad Design Thinking Workshops Next Gen App Account Portfolio Dev Deal Squad Delivery Squad Hackathons Chapter De
Slide 17: Making Digital Transformation real for our clients
and Making Digital Transformation real for our clients Accelerated legacy modernization by leveraging cloud & containers for a >>> Fortune 50 company Increase in product Reduction in Reduction in development speed timeline to cloud movement Services Cost Modernization Tribe 30% 50% 35% Building a cl
Slide 18: By Focused Effort in Building IP in Cognitive, Cloud and Service Transformation
By Focused Effort in Building IP in Cognitive, Cloud and Service Transformation Cognitive Cloud Service Transformation Cognitive CoE / DeepInsights Cloud CoE / Cloud Maturity assessment tool: InfraGenie / ADM Virtual Assistant Cognitive Twin / Autocode Stelligent DevOps & DevSecOps Platform BPS Comm
Slide 19: and Transforming Our Talent
and Transforming Our Talent Talent Next Next Gen HR Platform On-Demand Learning Platform Advanced Skill Mapping Effective Communication Hyper Personalized Online & Offline Training Catalogue • Talent Next is the catalyst to up-skilling and cross-skilling our workforce on next-gen skills/technologies
Slide 20: Industry Analysts and Influencers too are Recognizing this
Industry Analysts and Influencers too are Recognizing this… DXC Partner Advisory Council Awards, 2018 Based on 60+ mentions by Analyst firms in there research over the last 15 months © Mphasis 2019 Proprietary and confidential information May 28, 2019 19
Slide 21: 2020 and Beyond
2020 and Beyond… 1. Accelerate Direct Core : Consistently outgrow the market • Farming Strategic Accounts • New Client Acquisition • Continue momentum in BX channel 2. Strategic Partnership with DXC/HP : Continuous transformation in relationship • Applications Partnership Growth • Expand Vertical an
Slide 22: About Mphasis and Important Confidentiality Notice
About Mphasis Mphasis (BSE: 526299; NSE: MPHASIS) applies next-generation technology to help enterprises transform businesses globally. Customer centricity is foundational to Mphasis and is reflected in the Mphasis’ Front2Back™ Transformation approach. Front2Back™ uses the exponential power of cloud