Slide 1: 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 2: Quarterly Investor Update Q1 FY-21
Quarterly Investor Update Q1 FY-21 07/24/20
Slide 3: Consumer Behavior Accelerating Migration to Digital
Consumer Behavior Accelerating Migration to Digital Source: BDO (COVID-19 Is accelerating the rise of the Digital Economy) © Mphasis 2020 Proprietary and confidential information 07/24/20 3
Slide 4: Post Cost-Takeout, Demand shifts to Strategic Priorities
Post Cost-Takeout, Demand shifts to Strategic Priorities X% Survey respondents claim that spend will increase in respective areas Source: Bain Covid-19 B2B IT Services Survey (N=105, May 12, 2020) © Mphasis 2020 Proprietary and confidential information 07/24/20 4
Slide 5: Budget cuts across Sectors driven by impact on Demand post-COVID
Budget cuts across Sectors driven by impact on Demand post-COVID Source: Bain & Company © Mphasis 2020 Proprietary and confidential information 07/24/20 5
Slide 6: Mphasis' Accelerators Bringing '(T)ransformation' back in 'IT'
Mphasis’ Accelerators Bringing ‘(T)ransformation’ back in ‘IT’ ‘Inverted T’ Vertical Play The Mphasis Way N Wealth Management Consumer Banking Healthcare Insurance Payments Mortgage Hi-Tech Powered by X2C2 TM Technology Tribes Modernization Next Gen App Dev Next-Gen Data DevOps Enterprise Automation
Slide 7: Our Numbers Tell the Story: Consistency and Transformation
Our Numbers Tell the Story: Consistency and Transformation Direct Core revenue grew 15.5% YoY in Q1 FY21 on a reported basis and 6.9% YoY in Constant Currency 1,240 $ Mn Revenue YoY - CC Q1’21 305.4 3.8% +11.5% 1,119 -2.7% 989 944 926 894 FY’15 FY’16 FY’17 FY’18 FY’19 FY’20 Overall Gross Revenue in
Slide 8: We Continue to Grow in Focus Areas
We Continue to Grow in Focus Areas Q1’21 3Yr Revenue by Segment 297 305 Y-o-Y CAGR 269 231 133 149 12% 10% 126 BCM 113 35 30 -12% -1% 30 Insurance 31 49 43 -12% 14% 46 ITCE 29 12% 24% 38 43 Logistics & Transportation 23 31 Others 35 35 42 40 -5% 4% Q1’18 Q1’19 Q1’20 Q1’21 • BCM: Consistent track rec
Slide 9: Strong Deal Win Momentum in Direct International
Strong Deal Win Momentum in Direct International Direct International TCV Wins^ Direct International: Revenue vs TCV – Strong Correlation CAGR 1,000 DI Revenue (TTM in US$ Million) 950 +12% 900 +66% 259 850 R² = 0.8335 800 185 157 156 750 206 700 New Gen 162 120 124 650 600 Traditional 38 53 24 33 3
Slide 10: Direct International: Transformation in Client Metrics
Direct International: Transformation in Client Metrics 79 • Continuous improvement in client pyramid 72 64 driven by expansion of wallet share in large Client Pyramid clients and consistent new client wins 59 • Improvement in most of the client metrics from 32 28 Q4’20. In this quarter we added 26 2
Slide 11: Direct Core has been Consistently Delivering Strong Growth
Direct Core has been Consistently Delivering Strong Growth Direct Core (DC) Revenue consistently outgrowing Market 6.9% YoY CC growth in Q1’21 CAGR +12.3% • Q1’21: Strong YoY growth in Strategic Accounts Q1’18 Q1’19 Q1’20 Q1’21 • New Clients revenue including Blackstone Revenue in USD $M at average
Slide 12: Strong Earnings Growth and Optimal Cash Strategy to Maximize Shareholder Value
Strong Earnings Growth and Optimal Cash Strategy to Maximize Shareholder Value Improving operating margin Strong growth in EPS 63.6 * 16.0% 56.1 15.1% 16.1% 14.6% 42.7 12.8% 37.7 30.1 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Q1’21 EBIT at 15.7% YoY increase of 20bps; FY’21 G: 15.5% - 16.5%
Slide 13: Core Investment Thesis: Q1'21 Execution Update
Core Investment Thesis: Q1’21 Execution Update 1. Accelerate Direct International : across all segments of DI Strong growth of 6.9% YoY in CC ;NCA revenue grew 40% YoY in Q1’21 • Farming Strategic Accounts • New Client Acquisition (NCA) Continued momentum in Deal wins: TCV wins of $259M • Continue m
Slide 14: Summary
Summary • Growth has bottomed in Q1-21; we see growth rates improving sequentially Q2 onwards • Direct International (DI) growth will continue to be supported by robust TCV • Q1-21 TCV at all time high - 40% higher than quarterly average in FY20 (excluding US$216 Mn deal in July) • Track record in w
Slide 15: Q&A
Q&A 07/24/20
Slide 16: Industry Analysts recognizing our strengths in focus areas
Industry Analysts recognizing our strengths in focus areas STAR PERFORMER FORRESTER Digital Property & Casualty Insurance NOW Transformation BPO, 2020 TECH Services – Q2, 2020 STAR PERFORMER & MAJOR CONTENDER MAJOR Banking BPS, 2020 CONTENDER BFS Risk & Compliance IT MAJOR Services, 2020 CONTENDER W
Slide 17: Accelerated Transformation… #StayAhead
Accelerated Transformation… #StayAhead © Mphasis 2020 Proprietary and confidential information 07/24/20 17