Slide 1: Investor Update Q1 2017
Passionate Employees Investor Update Innovative Services Q1 2017 Delighted Customers 24 Apr 2017 © Hexaware Technologies. All rights reserved. www.hexaware.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 risks and un
Slide 3: Business Update
Business Update © Hexaware Technologies. All rights reserved. | www.hexaware.com 3
Slide 4: Key Financials for Q1 2017
Key Financials for Q1 2017 GROWTH GROWTH Q1 2017 Q4 2016 QoQ YoY Revenue 144.75 138.95 4.2% 19.0% EBITDA* 25.35 24.99 1.5% 34.7% (before ESOP Cost) EBITDA 24.54 24.17 1.5% 38.4% (after ESOP Cost) PAT 17.23 18.15 -5.1% 37.8% EPS Diluted (in INR) 3.77 4.04 -6.8% 36.6% * Excludes ESOP Cost of $ 0.81 M
Slide 5: Revenue Analysis - QoQ
Revenue Analysis - QoQ 4.3% Volume Growth 1.07 0.19 144.7 145 1.16 3.80 (0.43) USD Mn---------------> 140 138.9 135 Increases Decreases 130 125 Bill Rates Volume Mix Calendar Revenue Q4 16 Revenue Q1 17 FX © Hexaware Technologies. All rights reserved. | www.hexaware.com 5
Slide 6: Gross Margin Analysis - QoQ
Gross Margin Analysis - QoQ 35.50 0.31 0.51 35.30 35.2 35.10 (0.21) 34.90 (0.19) (0.19) %---------------------> (0.41) 0.12 34.7 34.70 (0.16) SG&A 10 bps QoQ 34.50 (0.28) SG&A at $ 24.8 mn in Q1 17 vs $23.9 34.30 mn in Q4 16 Increases 34.10 • Investment in Sales & (37) bps Decreases Provision for
Slide 7: Movement of Top Customers
Movement of Top 20 Customers Top 20 Accounts by Revenue for the Quarter Q1 2017 vs. Q4 2016 In Out • Specialized Payment products • European telecommunications and services Provider operator • Premier Chain of Fitness • American investment Centers management firm • World’s leading Airline • Leading
Slide 8: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q1 2016 Q1 2017 Clients remain unchanged CONTRIBUTION GROWTH $50+ 1 3 TOP CLIENTS GROWTH QoQ $30 - $50 3 0 Top 5 Clients -0.7% 2.6% $20 - $30 0 2 Top 10 Clients -0.6% 3.0% Top 20 Clients -0.5% 3.5% $10 - $20 5 3 Other Clients 0.5% 5.6% $5 - $10 6 6 $1 - $5 58
Slide 9: Strategy Proof Points
Strategy Proof Points USD 25 million NN Deal wins in Q1-17 Second Gen Application Modernization, Support and Product Engineering for a global GRC software company >Shrink IT< Won from top 3 IOP Grow Digital>> Managing Customer Experience in the Digital Channel for a leading ecommerce firm in India W
Slide 10: Employee Metrics
Employee Metrics UTILIZATION * EMPLOYEE ATTRITION Utilization maintained at high levels Attrition back to low levels 78.6% 78.9% 17.4% 17.1% 74.1% 16.9% 73.6% 16.6% 16.6% 16.5% 72.1% 16.0% 16.1% 70.4% 69.7% 69.6% 70.0% 14.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2015 2015 2015 2
Slide 11: APAC led Growth
APAC led Growth APAC, GROWTH GROWTH Europe, GEOGRAPHY 7% 11% QoQ YoY North America 3.1% 19.3% Europe 3.4% 9.0% North APAC 19.7% 33.5% America, 82% TOTAL 4.2% 19.0% © Hexaware Technologies. All rights reserved. | www.hexaware.com 11
Slide 12: Travel & Transportation led Growth
Travel & Transportation led Growth Manufacturing & Consumer, and GROWTH GROWTH Banking & Financial VERTICAL Others, 28% Services, 43% QoQ YoY Banking & Financial 5.6% 29.4% Services Travel & Transportation 7.5% 5.8% Healthcare & Insurance -0.9% 6.4% Healthcare & Manufacturing & Insurance, 16% 3.3% 1
Slide 13: IMS led Growth
IMS led Growth GROWTH GROWTH HORIZONTAL (1) QoQ YoY Application Development & 3.3% 13.9% Maintenance (ADM) BPS, 6% IMS, 11% ADM, 36% Enterprise Solutions (ES) -0.1% 4.9% BIBA, 14% Digital Assurance/ Testing 4.1% 22.9% (DA) Business Intelligence & 2.1% 7.8% Analytics (BIBA) Business Process Services
Slide 14: Financial Update
Financial Update © Hexaware Technologies. All rights reserved. | www.hexaware.com 14
Slide 15: Revenue
Revenue Q1 2017 constant currency revenue at $144.6 mn; 4.0% QoQ; 19.9% YoY Q1 17 $ Revenue at $144.7 mn; 4.2% QoQ; 19.0% YoY Q1 17 INR Revenue at Rs 9,605 mn; 2.1% QoQ; 17.1% YoY © Hexaware Technologies. All rights reserved. | www.hexaware.com 15
Slide 16: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate USDINR ($) 141.66 72.77 EURNR (€) 4.10 81.36 GBPNR (£) 4.20 99.08 Total ($) 151.28 Note - 1.Hedges outstanding are full-term hedges. 2. EUR converted @ 1.0685/USD & GBP converted @ 1.2475/USD. 3. Avg
Slide 17: Forex Gain/(Loss)
Forex Gain/(Loss) Total Gain/(Loss) 2.23 • As compared to the forex gain of $1.85 Mn in Q4’16, the forex gain 1.96 this quarter was $0.23 Mn. • Forex gains expected are ~$ 2.23 USD Mn-----------> Mn in Q2’17 and ~$ 1.96 Mn in Q3’17 at exchange rate of INR 64.85 / USD. 0.23 Q1'17 Q2'17 Q3'17 © Hexawa
Slide 18: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents* at US$ 50 Mn (INR 3,231 Mn) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q1 2017 at 46 days; 74 days including unbilled DIVIDEND INR 1.00 per share (50%) Dividend Payout including taxes INR 356.7 Mn ($ 5.5 Mn) Tax: E
Slide 19: Thank You
Passionate Employees Innovative Thank You Services Delighted Customers © Hexaware Technologies. All rights reserved. www.hexaware.com