Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Investor Presentation (November 2022)
50 slides from Happiest Minds Technologies's investor presentation, Nov 1, 2022
Slide 1: Exchange filing cover letter
Happiest Minds Technologies Limited Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bengaluru-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investors@happiestminds.com November 01, 2022 Listing Complianc
Slide 2: Project DELiGHT Corporate Presentation
Project DELiGHT Corporate Presentation November 2022
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared for general information purposes in respect of Happiest Minds Technologies Limited (“Company”) together with its subsidiary (together, with the Company, the “Group”) only, without regard to any specific objectives, suitability, financial situations and
Slide 4: Presenters
Presenters ASHOK SOOTA JOSEPH VINOD KUMAR RAJIV SHAH ANANTHARAJU Executive Chairman and Director Executive Vice Chairman President & CEO Digital Business Services (DBS) CHALUVAIYA RAMAMOHAN VENKATRAMAN NARAYANAN SRIDHAR MANTHA President - Infrastructure Management & Managing Director & Chief Executi
Slide 5: Mission, Vision & Values
Mission, Vision & Values Our 2021-31 Vision - DELiGHT Our SMILES Values Design for Perpetuity Sharing ESG Excellence Mindful Our Mission Thought Leadership Integrity Happiest People Happiest Customers Profitable Growth Learning Ambassador for Happiness Excellence Sustainable Team by establishing Soc
Slide 6: About Happiest Minds
About Happiest Minds Focus on delivering a seamless digital experience Company overview1 Industry overview Leading next generation Digital Transformation Company with three business units: Product Engineering, Digital Business, Infrastructure Management & Security Services ✓ Global IT is expected to
Slide 7: Born Digital. Born Agile The Mindful IT Company
Born Digital . Born Agile The Mindful IT Company CREATING MINDFULLY DIGITAL CAPITAL AGILE being doing Business Transformation mindful mindful Agile Organization Perform Present Business Empathetically Agile Insights Business Platformize & Agile Modernize Delivery Optimizing Focus on Engineering & Cu
Slide 8: Our Offerings, Capabilities & Key Alliances
Our Offerings, Capabilities & Key Alliances PES DBS IMSS Solution Accelerators Anomaly Detection Feedback based domain agnostic solution that runs a variety of Platform Engineering Digital Transformation Security algorithms to check data anomalies ▪ Digital Foundry ▪ Digital App Development and ▪ Cy
Slide 9: Product Engineering Services
Product Engineering Services Startup Technology EduTech Hi-Tech Platform Engineering Media & Entertainment Device Engineering Healthcare & Life Sciences CORE EMERGING Quality Engineering TECHNOLOGIES TECHNOLOGIES Industrial • Cloud • Blockchain • Mobile & UI/UX • AI • Hardware & • Edge Computing Emb
Slide 10: Digital Business Services
Digital Business Services Innovate ------ Build ------ Maintain ------ Reengineer ------ Migrate 02 04 06 01 Mindful Digital Product, Digital Factory Digital Experience Cognitive Mindful Bridge Framework Platforms, Applications Led Transformation Led Intelligence & Hyper To The Future Led Strategy T
Slide 11: Infrastructure Management Security Services
Infrastructure Management Security Services DC and Hybrid Cloud Services Cyber & Infra Security Workspace Services Governance, Risk & Compliance ITSM & ITOM Tools and Data Privacy Services & Security INFRA SECURITY Database and Middleware Identity & Access Services Management Threat & SD Network Ser
Slide 12: Acknowledged Consistently By Industry Experts
Acknowledged Consistently By Industry Experts Great India’s Best Recognized Workplaces Best Workplaces Asia’s Best Best Workplaces Place to in Health & for COVID-19 In IT & IT-BPM Workplaces For Women Support Work Wellness 2021 2022 2022 2022 2021 #29 Among India’s Top 15 of India’s Recognized for I
Slide 13: Strong Sales & Marketing Effort
Strong Sales & Marketing Effort Focused sales & marketing strategy, seeking to increase revenues from new and existing customers Synergistic Sales & Marketing Team Deep Domain & Technology Expertise1 Are a Key Selling Point Domain Expertise Account Managers Sales Manager Vertical specialist Hi-Tech
Slide 14: Mindful Approach To Culture, Recruitment, Training And Retention Methods
Mindful Approach To Culture, Recruitment, Training And Retention Methods Attract, develop and retain skilled employees to sustain customer experience Values, Philosophy & Culture Recruitment Learning & Development Human Resources Enable customers’ Recruitment of Quality IT Dedicated resources to tra
Slide 15: Happiest Minds – Leading Digital Player Delivering Seamless Digital Experiences
Happiest Minds – Leading Digital Player Delivering Seamless Digital Experiences 01 Operating in expanding industry with high growth runway ahead TAM estimated to be USD 5,926 bn by 2025 with drivers in place for growth in key operating segments Strong brand in digital IT services with leading capabi
Slide 16: Financial Performance
Financial Performance
Slide 17: Strong Track Record of Growth & Profitability
Strong Track Record of Growth & Profitability Annual Metrics Half Yearly Metrics Revenue ($) 1,46,634 68,960 86,571 98,348 1,04,592 Total Income ($ ‘000s) 68,443 Revenue (INR) 50,914 Total Income 1,13,075 (₹ Lakhs) 71,423 79,765 EBITDA 27.0% 26.1% 25.8% 26.4% (₹ Lakhs) & % 15.8% 29,477 18,209 13,631
Slide 18: Optimized Delivery Model
Optimized Delivery Model Annual Metrics Quarterly Metrics Happiest Minds & 79.5% 80.5% 81.6% 82.6% 82.1% 81.0% 80.6% 79.7% 79.4% 79.1% Utilization 76.9% 4,168 4,188 4,581 3,796 4,021 4,168 By No. of Employees 3,228 3,228 3,538 2,666 2,885 Onsite/Offshore By Revenue 77.5% 81.0% 84.5% 81.0% 85.0% 84.0
Slide 19: Diversified Business Model with Robust Client Metrics
Diversified Business Model with Robust Client Metrics Revenue Model (Q2 FY23) Model Geography Digital Revenue Vertical1 6.7% 5.1% 3.2% 5.8% 24.4% 10.4% 23.8% 16.1% 12.8% 45.4% 7.7% 9.3% 12.3% 14.2% 16.6% 67.9% 75.6% 21.3% 12.5% 8.9% Digital / Infra Cloud SAAS Edu Tech Hitech Retail / CPG T&M FP USA
Slide 20: Deep And Entrenched Client Relationships
Deep And Entrenched Client Relationships Focus on building & sustaining long term relationships has contributed to growing revenue from existing customers driven by digital technologies and agile delivery methodology Digital Agile % of Revenue % of Revenue 96.9% 96.8% 96.5% 96.2% 96.7% 96.0% 96.8% 9
Slide 21: Competitive Landscape
Competitive Landscape Happiest Minds leads peers on a Revenue Growth + EBITDA basis 30% Cluster 2 Cluster 1 Infosys 25% Happiest Minds Digital service providers with Mindtree higher revenue EBITDA Margin % (LFY) Globant growth 20% Accenture Cognizant Endava EPAM 15% 10% Grid Dynamics 5% Thoughtworks
Slide 22: Strategic Roadmap
Strategic Roadmap
Slide 23: Key Strategies
Key Strategies Acquire new accounts and deepen key account relationships across Further investments in our CoEs and digital processes geographies Significant increase in clients of high value Identified Focused Technology Areas (#) 38 25 26 Analytics / Artificial Digital Process Intelligence Securit
Slide 24: Well-Executed Inorganic Growth Strategy
Well-Executed Inorganic Growth Strategy PGS Inc Cupola Technologies (d.b.a Pimcore Global Tech4TH Services) • Jan 2021 – Strategic partner for Pimcore • Sep 2021 – Provides digital services to the • May 2017 – IoT business offering IoT Austria, to sell, implement, support and maintain travel and hos
Slide 25: M&A Landscape (1/2)
M&A Landscape (1/2) Acquisitions by Top IT Service Providers & Key Focus Areas (Jan 2018 – July 2022) Acquisition Focus Areas • BPM • Cloud • Digital Engineering • Customer Experience Infosys • Analytics 15+ Acquisitions Acquisition Focus Areas • ER&D • Cloud Acquisition Focus Areas Wipro EPAM • Sof
Slide 26: M&A Landscape (2/2)
M&A Landscape (2/2) M&A: Top Acquisitions in The Technology Services Market Deal Value Target Acquirer Rationale (USD Million) Infosys • Infosys’ Consulting business acquired Singtel's delivery center in Malaysia to expand on its CMT vertical and customer Singtel 4.4 Consulting experience. Rizing In
Slide 27: Annexures
Annexures
Slide 28: Select Case Studies
Select Case Studies PES DBS IMSS 1 2 3 Client – Global provider of online Client - A industrial supply chain Client – A pharmaceutical company learning software solution company in United States Solution - Provided common platform Solution – Consulting led approach to Solution – Provided offshore se
Slide 29: Q2 Key Project Wins
Q2 Key Project Wins For a global energy For a Fortune 100 For a US-based food For a leading US energy company, Happiest Minds pharmaceutical retailer, Happiest Minds is company, Happiest Minds was chosen to provide digital corporation, Happiest helping them in launching was chosen to build a transfo
Slide 30: Leadership Team
Leadership Team Board of Directors Senior Management Personnel JOSEPH VINOD RAJIV KUMAR SHAH ANANTHARAJU Executive Vice Chairman President & CEO, JOSEPH VINOD KUMAR ASHOK SOOTA ANITHA RAMACHANDRAN Digital Business Services (DBS) ANANTHARAJU Executive Chairman and Independent Director Executive Vice
Slide 31: ESG
ESG Environmental, Social and Corporate Governance (ESG) ▪ Approach to evaluate environment & social goals ▪ Ascertain extent of going beyond maximizing profits ▪ Accomplished by senior members across major functions & chaired by a member of the senior management team ▪ ESG Report (integrated with A
Slide 32: Q2 FY23 – Operational & Financial Metrics
Q2 FY23 – Operational & Financial Metrics
Slide 33: Historical Results
Historical Results All amounts in ₹ Lakhs unless stated otherwise Particulars FY20 FY21 FY 22 Revenues ($'000) 98,348 104,592 146,634 Revenues 69,821 77,341 109,365 EBITDA 11,312 21,573 29,477 % 15.8% 27.0% 26.1% PAT 7,171 16,246 18,120 % 10.0% 20.4% 16.0% © Confidential – www.happiestminds.com 32
Slide 34: Operational & Financial Metrics
Operational & Financial Metrics FY20 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 FY23 Q2 Customer Industry group Edutech 21.3% 25.6% 23.4% 23.2% 22.6% 23.6% 23.2% 23.7% 23.8% Hitech 21.0% 18.2% 14.2% 13.5% 18.3% 16.7% 15.8% 15.6% 16.6% BFSI 17.5% 16.4% 13.4% 13.3% 12.5% 13.7% 13.2% 13.7% 14.2
Slide 35: Operational & Financial Metrics
Operational & Financial Metrics FY20 FY 21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 FY23 Q2 Revenue by Customer Geo USA 77.6% 73.4% 67.8% 65.9% 66.6% 65.7% 66.4% 66.6% 67.9% India 11.9% 11.8% 12.4% 13.0% 14.6% 16.2% 14.1% 15.8% 16.1% Europe 7.1% 10.4% 10.4% 11.1% 9.8% 10.4% 10.4% 10.7% 9.3% ROW
Slide 36: Operational & Financial Metrics
Operational & Financial Metrics FY20 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY23 Q1 FY23 Q2 Happiest Minds Onsite 123 166 180 182 183 172 172 185 210 Offshore 2,543 3,062 3,358 3,614 3,838 3,996 3,996 4,003 4,371 Total 2,666 3,228 3,538 3,796 4,021 4,168 4,168 4,188 4,581 Happiest Minds % Onsite
Slide 37: Operational & Financial Metrics
Operational & Financial Metrics (All figures in ₹ Lakhs) FY20 FY21 FY22 Revenue by BUs IMSS 15,361 21.5% 16,421 20.6% 24,168 21.4% DBS 19,167 26.8% 21,288 26.7% 32,887 29.1% PES 35,293 49.4% 39,632 49.7% 52,310 46.3% Total Revenue 69,821 97.8% 77,341 97.0% 109,365 96.7% IMSS: Infrastructure Manageme
Slide 38: Summary Profit & Loss Statement
Summary Profit & Loss Statement (All figures in ₹ Lakhs) FY 20 FY 21 FY 22 Income Revenue from Contracts with Customers 69,821 77,341 109,365 Other income 1,602 2,424 3,710 Total income 71,423 79,765 113,075 EBITDA 11,312 21,573 29,477 % 15.8% 27.0% 26.1% Depreciation and Amortization 2,023 2,274 3,
Slide 39: Condensed Balance Sheet
Condensed Balance Sheet (All figures in ₹ Lakhs) 31.03.2020 31.03.2021 31.03.2022 Assets Non-current Assets Property, plant and equipment 93 69 78 Goodwill 610 7,644 7,896 Financial & Other Assets 5,598 10,029 11,788 Total non-current assets (A) 6,301 17,742 19,762 Current assets Financial assets i.
Slide 40: Others
Others
Slide 41: Expanding Industry with High-Growth Runway (1/2)
Expanding Industry with High-Growth Runway (1/2) Rapidly growing IT – BPM services sector in India Digital spends outpacing growth in legacy IT spends Total India IT-BPM market expenditure, FY2019-2025 (USD Billions) India Digital and legacy split; FY2019-2025 (USD Billion) 381 205 335 295 85.0 180
Slide 42: Expanding Industry with High-Growth Runway (2/2)
Expanding Industry with High-Growth Runway (2/2) Technology expected to gain momentum US, UK-oriented play with strong use cases driving growth Sector-wise Breakup of Indian IT Services Export Revenues, FY2019-2025 (USD Billion) Geographic Breakup of Indian IT Services Export Revenues, FY2019-2025 (
Slide 43: Our Business
Our Business PES DBS IMSS Platform Engineering Digital Transformation Infrastructure ▪ DC & Hybrid Cloud Services ▪ Digital Foundry ▪ Digital App Development and ▪ Workspace Services ▪ Startup Technology Modernization ▪ ITSM & ITOM Acceleration ▪ Development and ▪ Platform Engineering Implementation
Slide 44: CoE: Analytics/AI
CoE: Analytics/AI Consulting Implementation Implementation Operations services services-Data services-AI &BI and Governance Data Strategy Data Architecture Services Data Science/ML/AI Services • DataOps (Data Operations) Strategy formulation, maturity • Cloud Native Data Platform • Operationalize AI
Slide 45: CoE: Internet of Things
CoE: Internet of Things Solutions Focus Areas Smart Industries Connected Factory Manufacturing, Renewable 40+ 300+ Energy and Utilities Employee Tracking Customers SMEs Smart Enterprises Field Force Management Smart Homes/Buildings/Offices, Retail, Telecom Anomaly Detection 50+ Partners Smart Living
Slide 46: CoE: Digital Process Automation
CoE: Digital Process Automation Domain Experiences Intelligence End to End Centric Focused Enabled Offerings Natural User Agile DPA in Retail /CPG Consulting Interaction DevOps mode Cognitive BFS Personalization Digital Automation Intelligent Assessment Automation Automation CoE Consulting Set up Ed
Slide 47: CoE: Cyber Security
CoE: Cyber Security 400+ 60+ 20+ 16 8 Vendor Our IP And Packaged Solutions Smart minds Customers Partners Cities Countries Agnostic CRPP ( MDR Platform) IdentityVigil Identity and Access Governance for SOC 2.0 Platform and Services and from cloud Governance, Risk Identity & Access & Compliance manag
Slide 48: Our Key Alliances & Partnerships
Our Key Alliances & Partnerships Microsoft AWS Pimcore Outsystems Talend Cloud Platform & Productivity, IOT, Security, Cloud & DC Gold Partner Low Code Application Gold Partner Business Apps, IoT, Data & Analytics, Transformation Platform Security, Collaboration & Messaging, DevOps IBM Paloalto Goog
Slide 49: Glossary
Glossary Term Description Term Description Agile Agile software development methodology Infra Infrastructure AI Artificial Intelligence IoT Internet of Things AWS Amazon Web Services ISVs Independent Software Vendors BCP Business Continuity Plan IT Information Technology BFSI Banking, Financial Serv
Slide 50: investors@happiestminds.com
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai © Confidential – www.happiestminds.com 49
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