Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q4 FY22 Earnings Presentation
24 slides from Happiest Minds Technologies's earnings presentation, May 2022
Slide 1: Investor Presentation & Fact sheet: Q4 FY 22
Investor Presentation & Fact sheet: Q4 FY 22 May 2022
Slide 2: Forward-looking statements disclaimer
This presentation may contain certain forward-looking statements, which involves risks and uncertainties that could cause our future results to differ materially from those in such forward- looking statements. The COVID-19 pandemic could decrease our customers’ technology spend, delaying prospective
Slide 3: Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company
Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company IPO In September 2020 Digital Agile Active clients RoCE1 Digital 54 Fortune2000 / Forbes200 / • Completed 10 years of Billion $ corporations existence in August 85% of repeat business 2021 RoE •
Slide 4: Technology capabilities and industries served
IoT Blockchain DevOps & RPA Cloud Software Defined Networking / NFV BPM & Integration Big Data & Adv. Analytics Security BFSI Edutech Hi-Tech Mfg/Industrial Retail Travel & Hosp. 4 www.happiestminds.com
Slide 5: Our Mission, 2021-31 Vision and Values
Our 2021-31 Vision - Our Values Design for Perpetuity Sharing ESG Excellence Mindful Thought Leadership Integrity Our Mission Profitable Growth Happiest People . Happiest Customers Learning Ambassador for Happiness Excellence World Class Team Social Responsibility 5 www.happiestminds.com
Slide 6: Creating Digital Capital
Business Agile Transformation Organization Business Agile Insights Business CREATING MINDFULLY DIGITAL AGILE CAPITAL Platformize and Agile Modernize Delivery Reimagining Engineering & Customer Experience Operational Excellence 6 www.happiestminds.com
Slide 7: Customer wins and engagements
For an EU multinational For a large US fashion retailer, For a Fortune 100 American manufacturing company, Happiest Happiest Minds was chosen as their multinational technology Minds has taken ownership of application security services conglomerate, Happiest Minds was building their Test Automation p
Slide 8: Everest Group PEAK Matrix for Digital Engineering
Happiest Minds is recognized as a ‘Major Happiest Minds is featured Contender’ in in NASSCOM’s report on Everest Group PEAK India Cybersecurity Matrix for Digital Industry Services & Engineering Product Growth Story All logos are properties of their respective owners 8 www.happiestminds.com
Slide 9: Ranked among India's Top Best Workplaces in Health and Wellness
Happiest Minds is ranked among India’s Top 15 Best Workplaces in Health and Wellness 2021 by Great Ashok Soota is among India’s 100 Great People Place to Work® Institute. Managers 2021 by Great Manager Institute® Received special recognition for supporting employees and their families during COVID-1
Slide 10: Operational and Financial Metrics — Q4 & FY22
A . . De happiest minds = The Mindful IT Company Born Digital . Born Agile Operational and Financial Metrics — Q4 & FY22 WW. YY —_ a | YY 7 " - Ly —YMM mn MMT TTT TT XS
Slide 11: Q4 FY22 financial summary
A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q4 FY 22 Q3 FY 22 QoQ Q4 FY 21 YoY FY 22 FY 21 YoY Revenues ($'000) 39,876 37,796 5.5% 30,235 31.9% 146,634 104,592 40.2% Revenues 30,057 28,394 5.9% 22,071 36.2% 109,365 77,341 41.4% Other Income 991 834 18.8% 303 226.6% 3,710 2,424 53.0
Slide 12: Digital and Agile % of Revenue
Digital Agile % of Revenue % of Revenue 93.9% 93.4% 94.2% 93.4% 93.2% 93.4% 93.4% 96.9% 96.8% 96.5% 96.6% 96.7% 96.8% 96.2% 96.0% 87.9% FY20 FY21 FY22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 FY20 FY21 FY22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 12 www.happiestminds.com
Slide 13: Revenue and Revenue by BU
Revenue Revenue by BU Total Income (₹ Lakhs) 113,075 3.2% 79,765 21.4% 71,423 46.3% 31,048 27,412 29,228 25,387 22,374 29.1% FY20 FY21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 PES DBS IMSS Oth Inc PES : Product Engineering Services; DBS : Digital Business Solutions; IMSS : Infrastructure Management and S
Slide 14: EBITDA and High FCF conversion
EBITDA High FCF1 conversion (₹ Lakhs) Margin % (₹ Lakhs) % 98.6% 26.1% 29,477 99.5% 27.0% 99.6% 21,525 29,064 99.4% 26.3% 99.4% 96.2% 15.8% 26.3% 99.3% 21,428 99.5% 25.7% 11,312 26.0% 26.2% 7,688 8,158 6,597 7,034 11,266 5,867 7,462 8,106 5,837 6,551 6,765 FY 20 FY 21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q
Slide 15: Happiest Minds headcount, utilization and attrition
Happiest Minds & Utilization 82.6% 82.1% 81.0% 79.5% 80.5% 79.7% 79.4% 76.9% 4,168 3,796 4,021 4,168 3,228 3,228 3,538 2,666 FY20 FY21 FY22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 22.7% 22.7% 21.1% 18.7% 18.5% 14.7% 12.4% 12.4% 95.4% 94.9% 95.9%
Slide 16: Revenue model and revenue concentration
Revenue Model Q4 22 Model Geography Digital Revenue1 Vertical1 7.8% 3.2% 5.4% 6.6% 10.1% 23.6% 16.2% 11.3% 24.5% 6.6% 45.5% 10.4% 11.8% 13.7% 16.7% 65.7% 75.5% 21.7% 13.7% 10.1% Americas Europe India ROW Digital Infra / Cloud SAAS T&M FP Edu Tech Hitech Retail / CPG Security Analytics / AI TME BFSI
Slide 17: Onsite/Offshore and average annual revenue per active customer
Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 783 794 796 774 737 751 634 615 77.5% 81.0% 84.0% 83.9% 84.5% 85.0% 85.7% 85.7% 22.5% 19.0% 16.0% 16.1% 15.5% 15.0% 14.3% 14.3% FY 20 FY 21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 20 FY 21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4
Slide 18: Revenue by customer industry group and service offerings
FY20 FY21 FY 22 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 Customer Industry group Edutech 21.3% 25.6% 23.2% 24.1% 23.4% 23.2% 22.6% 23.6% Hitech 21.0% 18.2% 15.8% 13.5% 14.2% 13.5% 18.3% 16.7% BFSI 17.5% 16.4% 13.2% 14.8% 13.4% 13.3% 12.5% 13.7% Travel, Media and Entertainment (TME) 17.1% 13.6% 13.2% 14.0%
Slide 19: Revenue by geography, customer size and contract model
FY20 FY 21 FY 22 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 Revenue by Customer Geo USA 77.5% 73.4% 66.4% 68.4% 67.8% 65.9% 66.6% 65.7% India 11.9% 11.8% 14.1% 11.7% 12.4% 13.0% 14.6% 16.2% Europe 7.2% 10.4% 10.4% 11.6% 10.4% 11.1% 9.8% 10.4% ROW 3.4% 4.4% 9.0% 8.4% 9.4% 10.0% 9.0% 7.8% 1 Million $ Cus
Slide 20: EPS, RoCE and RoE
FY20 FY21 FY22 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 Happiest Minds Onsite 123 166 172 166 180 182 183 172 Offshore 2,543 3,062 3,996 3,062 3,358 3,614 3,838 3,996 Total 2,666 3,228 4,168 3,228 3,538 3,796 4,021 4,168 Happiest Minds % Onsite 4.6% 5.1% 4.1% 5.1% 5.1% 4.8% 4.6% 4.1% Offshore 95.4% 94.9%
Slide 21: Revenue by business units
(All figures in ₹ Lakhs) FY20 FY21 FY22 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 Revenue by BUs IMSS 15,361 21.5% 16,421 20.6% 24,168 21.4% 4,487 20.1% 5,251 20.7% 5,747 21.0% 6,322 21.6% 6,848 22.1% DBS 19,167 26.8% 21,288 26.7% 32,891 29.1% 6,995 31.3% 7,570 29.8% 8,046 29.4% 8,511 29.1% 8,762 28.2% PES
Slide 22: Summary Profit & Loss statement
Summary Profit & Loss statement (All figures in ₹ Lak hs) FY 20 FY 21 FY 22 FY 21 Q4 FY 22 Q1 FY 22 Q2 FY 22 Q3 FY 22 Q4 Income Operating revenue 69,821 77,341 109,365 22,071 24,461 26,453 28,394 30,057 Other income 1,602 2,424 3,710 303 926 959 834 991 Tota l income 71,423 79,765 113,075 22,374 25,
Slide 23: Condensed Balance Sheet
Condensed Balance Sheet (All figures in ₹ Lak hs ) 31.03.2020 31.03.2021 30.06.2021 30.09.2021 31.12.2021 31.03.2022 Assets Non-current Assets Property, plant and equipment 93 69 83 86 77 78 Goodwill 610 7,644 7,756 7,742 7,772 7,896 Financial & Other assets 5,598 10,029 18,033 11,604 20,609 11,788
Slide 24: investors@happiestminds.com
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Happiest Minds Technologies — Q4 FY22 Earnings Presentation on 6ix