Slide 1: Mphasis Earnings Q3 FY 2022: Continuity and Acceleration
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 I
Slide 2: 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 3: Key Themes Shaping Our Business
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 • Environment (60th percentile) • Decentralized Finance & NFTs •
Slide 4: Our Track Record Tells the Story: Decade-high Growth
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 run-rate^ 414 YoY → 8.0% 16.4% 19.7% 36.0% 385 384 363 CQGR
Slide 5: Continuing Success of Our Strategy in Numbers
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% 4% 17% 26% DXC EMEA 46 47 40 Others 44 25 22 ROW 38 2% 56
Slide 6: Sustained Broad-based Growth Across Verticals
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 13.2% 24.2% 112% 49.8% TMT 43 Logistics & Transportation 42 50
Slide 7: All Constituents of Direct Growth Progressing Well; Key Clients Lead Growth
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 Overall growth; Broad based growth across Achieves $1.5Bn revenu
Slide 8: Direct TCV Trends Stable
Direct TCV Trends Stable Direct TCV Wins Direct: Revenue vs TCV – Strong Correlation CAGR 1,400 +43.1% 1,300 1,081 Direct Revenue (TTM in US$ 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’22 600 TCV wins : $ Mn 350 550 750 950 1,150 1,350 TCV of Di
Slide 9: Improving Client Mining and Large-deal Metrics: Direct
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 $100M + 2 - $75M + 2 1 32 $50M + 2 - 81 4 large deal wins in Q3
Slide 10: Healthy Pipeline Growth in Chosen Areas to Boost Momentum
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 Data 14% 15% 16% • 4 large deals won this quarter: 1 in NCA
Slide 11: Supply Chain Initiatives to Provide Operating Leverage
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 TalentNext in Q3 • Set up of low-cost nearshore centers • Projected
Slide 12: Strong Performance in All Financial Metrics
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 for respective periods EBIT in $M at average USD/INR rate
Slide 13: Summary
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 nature of growth o Diversification of growth; Continued sha
Slide 14: Summary
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 organic operating (EBIT) margin band of 15.5%-17% • Continued c
Slide 15: Q&A
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 16: Analysts/Advisor Recognitions: Q3 FY '22
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 (DXP) in Services Insurance Industry Products , 2022 MAJOR
Slide 17: Thank You
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. Customer centricity is foundational to Mphasis, and is reflecte