Slide 1: Investor Update Q4 2015
Passionate Employees Investor Update Innovative Services Q4 2015 Delighted Customers Shrink IT. Grow Digital. 4 February 2016 © 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: Industry leading Growth for FY15
Industry leading Growth for FY15 Our primary goal was to establish growth momentum Industry leading 2015 NN TCV at 14.9% growth USD 120 million © Hexaware Technologies. All rights reserved. | www.hexaware.com 4
Slide 5: Key Financials for FY15
Key Financials for FY15 GROWTH FY15 YoY Revenue 485.47 14.9% EBITDA* 86.59 10.9% (before ESOP Cost) EBITDA 83.32 6.7% (after ESOP Cost) PAT 60.65 15.8% EPS Diluted ** 12.94 22.1% © Hexaware Technologies. All rights reserved. | www.hexaware.com ** Amounts in INR Amounts in USD million 5
Slide 6: Key Financials for Q4 2015
Key Financials for Q4 2015 GROWTH GROWTH Q4 2015 Q3 2015 QoQ YoY Revenue 124.11 125.13 -0.8% 8.4% EBITDA* 19.85 24.05 -17.4% -13.0% (before ESOP Cost) EBITDA 19.74 22.34 -11.7% -13.5% (after ESOP Cost) PAT 14.68 17.05 -13.9% 4.5% EPS Diluted ** 3.27 3.67 -10.9% 13.2% * Excludes ESOP Cost of $0.12 M
Slide 7: Performance Highlights
Performance Highlights After ESOP Cost REVENUE EBITDA -0.8% -11.7% 125.1 124.1 121.3 22.8 114.9 110.0 114.5 22.3 102.0 20.4 20.8 20.6 19.7 95.9 18.8 17.9 20% 19% 14% 8% 9% 16% 8% -14% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PAT EPS Diluted (in INR) 3.70 17.1 -13.9% -10.8% 3.27 15.5 14.7 3.28 14.1 14.0 2.77 2.85 2.8
Slide 8: Strategy Proof Points
Strategy Proof Points 2015 NN Deal wins at USD 120 million NEW WINS IN Q4 2015 Multi-million development, ASM support & testing Multi-year deal to develop and support flagship deal for the leading Workday implementation & total health platform for a leading wellness BPaaS service provider compan
Slide 9: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q4 2014 Q4 2015 CLIENT ANNUAL GROWTH CONTRIBUTION TO GROWTH $50+ 1 1 QoQ REVENUE YoY $30 - $50 1 3 Top 5 Clients -1.8% 31.5% $20 - $30 3 0 Top 10 Clients -0.3% 23.5% Top 20 Clients -0.8% 16.2% $10 - $20 3 5 $5 - $10 13 7 $1 - $5 40 53 >$1 61 69 Last twelve mo
Slide 10: Movement of Top 20 Customers
Movement of Top 20 Customers NEW DEFINITION Top 20 Accounts by Revenue for the Quarter (instead of LTM) Two Accounts (existing clients) Top 20 list to be more added to Top 20 in Q4 Dynamic © Hexaware Technologies. All rights reserved. | www.hexaware.com 10
Slide 11: Shareholder Metrics
Shareholder Metrics RETURN ON EQUITY TOTAL SHAREHOLDER RETURNS Stock price as at the end of each quarter 31% 312.6 255.5 247.6 243.5 199.7 28% 27% 25% 25% Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 DIVIDEND PAYOUT Dividend declared for the year 11.10 8.65 6.95 5.
Slide 12: Employee Metrics
Employee Metrics UTILIZATION EMPLOYEE ATTRITION Range Bound Significant efforts taken to contain attrition 73.6% 17.1% 17.4% 72.9% 73.0% 16.6% 16.9% 72.1% 70.8% 14.1% 70.3% 70.4% 13.0% 69.7% 12.8% 12.7% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q
Slide 13: Geography Split
Geography Split ANNUAL Europe, GROWTH APAC, 6% GEOGRAPHY GROWTH 13% QoQ YoY North America -0.2% 18.4% Europe -5.6% 6.1% North APAC 1.8% -5.9% America, 81% TOTAL -0.8% 14.9% © Hexaware Technologies. All rights reserved. | www.hexaware.com 13
Slide 14: Broad based Growth across Verticals
Broad based Growth across Verticals ANNUAL GROWTH VERTICAL GROWTH Manufacturing & Banking & Financial QoQ YoY Consumer, 30% Services, 37% Banking & Financial -1.1% 23.2% Services Global Travel & -1.5% 13.9% Transportation Healthcare & Insurance 4.9% 14.5% Healthcare & Insurance, 16% Global Travel &
Slide 15: Broad based Growth across Service Lines
Broad based Growth across Service Lines ANNUAL GROWTH HORIZONTAL GROWTH QoQ YoY Application Development & BPS, 5% IMS, 7% 1.4% 18.0% Maintenance (ADM) ADM, 38% BIBA, 15% Enterprise Solutions (ES) -2.7% -4.1% Quality Assurance & Testing -1.8% 16.1% Services (QATS) Business Intelligence & Analytics -5
Slide 16: Awards & Recognition
Awards & Recognition • Hexaware has been mentioned as one of the major contenders in the Everest Report titled “Multi-Process Human Resource Outsourcing (MPHRO) – Service Providers’ Assessment”, by analysts Rajesh Ranjan, Arkadev Basak and Harsh K. • Hexaware’s revenue has been mentioned to have rec
Slide 17: Financial Update
Financial Update © Hexaware Technologies. All rights reserved. | www.hexaware.com 17
Slide 18: Revenue
Revenue Q4 2015 constant currency revenue at $124.5 mn; down 0.5% QoQ; up 10.1% YoY Q4 Revenue at $124.1 mn; down 0.8% QoQ; up 8.4% YoY FY 2015 constant currency revenue at $496.8 mn; up 17.6% YoY FY 2015 revenue at $485.5 mn; up 14.9% YoY © Hexaware Technologies. All rights reserved. | www.hexaware
Slide 19: Revenue
Revenue Q4 Revenue at ` 8,195 mn; up 0.1% QoQ; up 15.1% YoY FY 2015 revenue at `31,235 mn; up 21% YoY © Hexaware Technologies. All rights reserved. | www.hexaware.com 19
Slide 20: Revenue Analysis - QoQ
Revenue Analysis - QoQ -0.1% Volume Growth 127.00 0.93 126.00 125.1 0.70 1.38 125.00 124.1 USD Mn---------------> 124.00 (0.39) (1.19) 123.00 (2.46) Increases 122.00 Decreases 121.00 120.00 119.00 118.00 Chennai floods/ Volume Bill Rates Revenue Q4 15 Revenue Q3 15 Mix Calendar FX - (estimate) furlo
Slide 21: EBITDA Margin Walk - QoQ
EBITDA Margin Walk - QoQ • EBITDA* margin for the quarter was 16.0%( Excludes ESOP cost), 320 bps lower than last quarter • Gross margin for Q4 2015 at 34.8%; lower by 180 bps mainly due to following reasons bps Calendar -106 Higher Onsite Utilisation 60 Increments at offshore & onsite -71 Forex Gai
Slide 22: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates © Hexaware Technologies. All rights reserved. | www.hexaware.com 22
Slide 23: Forex Gains/(Losses)
Forex Gains/(Losses) 0.80 Total Gain/(Loss) 0.68 • Forex gain of $0.68 Mn this quarter as against a gain of 0.60 $1.2 Mn in Q3’15. USD Mn-----------> 0.50 0.50 • Forex gain expected ~ $ 0.50 0.40 Mn in Q1’16 and ~$ 0.50 Mn Q2’16 at exchange rate of INR 67.00/USD. 0.20 - Q4'15 Q1'16 Q2'16 © Hexaware
Slide 24: Balance Sheet Updates
Balance Sheet Updates CASH & CASH EQUIVALENTS Cash and Cash Equivalents* at US$ 66.93 M (INR 4428 M) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for Q4 2015 at 49 days; 72 days including unbilled DIVIDEND INR 2.40 per share (120%) Dividend Payout including taxes INR 871.1 mn ($ 13.17 Mn) Div
Slide 25: Capex 2015
Capex 2015 Rs. In Crores Particulars Q4-2015 FY-15 SiruSeri 19.68 5.2 Pune - Hinjewadi 13.1 15.3 Computers & Equipment & Others 20.5 47.5 Total 53.2 67.9 USD (Mn) 8.04 21.26 Overall Likely Capex Spend for 2016 – $ 40 mn ( Rs 268 crs ) © Hexaware Technologies. All rights reserved. | www.hexaware.com
Slide 26: Outlook - 2016
Outlook - 2016 • Revenue Aspiration to continue outgrowing industry • Profitability in-line with CY15 full year profitability. • Q2 (AMJ) and Q3 (JAS) are expected to deliver the vast majority of the growth, with Q1 and Q4 (JFM and OND) as seasonally soft quarters. • Dividend Payout likely to be sim
Slide 27: Thank you
Passionate Employees Innovative Thank you Services Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com