Slide 1: Financial Analyst Meet
Financial Analyst Meet Nitin Rakesh CEO & Executive Director August 2019
Slide 2: Consumption Patterns are Changing
Consumption Patterns are Changing Agility with Resilience Customer Centricity Cost Takeout Huge Impact on IT Consumption Customers Driving Disruption Self Funding Transformation Implications Changing Tech Consumption Trends Demand for end-to-end solutions that Low CapEx, Quick Need for impact both b
Slide 3: Speed, flexibility, scalability and security are top drivers
Speed, flexibility, scalability and security are top drivers– lowering TCO still a key factor but declining CUSTOMER PERSPECTIVES When thinking about the most important benefits of moving applications to the cloud or building new applications in the cloud, what are the top three drivers of your deci
Slide 4: Deal sizes have decreased in the last 2 years
Deal sizes have decreased in the last 2 years Overall BFS Insurance Communications & Media Driven by 2 large AT&T deals CPG Manufacturing Healthcare Driven by 4 large deals in US Note: TCV of services only considered (No products) Source: IDC Deals database Source : Bain & Company © Mphasis 2019 Pro
Slide 5: Shift in Technology Consumption
Shift in Technology Consumption Global ITS market US$ billion CAGR (2018-22E) 571 582 539 553 561 2018 2019 (E) 2020 (E) 2021 (E) 2022 (E) 20.0% 16.4% 15.0% 10.0% 5.0% 1.7% 1.9% 1.5% 0.0% Global IT services Digital Legacy Applications Infrastructure -3.0% Source: Everest Group (2019) -5.0% © Mphasis
Slide 6: Emerging technologies in early innings of scale deployment
Emerging technologies in early innings of scale deployment by mainstream IT organizations FUTURE OF CLOUD Containers Serverless Computing Physical servers VMs & IaaS & CaaS & FaaS VM Definition • A physical computer • VM technology allows a • Containers virtualize the • Serverless computing (hardwar
Slide 7: These new technologies will reconfigure the IT stack and disrupt profit pools
These new technologies will reconfigure the IT stack and further disrupt profit pools FUTURE OF CLOUD Next Gen stack Commentary Open source Profit pools in infrastructure HW and OS are being hollowed out Hyperscale cloud players are capturing profits from commodity infrastructure and OS layers Code
Slide 8: The Process for Building and Delivering Business Capabilities is Changing
The Process for Building and Delivering Business Capabilities is Changing Traditional Waterfall Methodology DEVOPS Approach • Underlying tech for development is changing • Critical to enhance next-gen dev capabilities – containerization (Docker, • Testing, Maintenance and Monitoring was manual Kuber
Slide 9: Industries are in Different Stages of Digital Adoption
Industries are in Different Stages of Digital Adoption D Laggards Followers Leaders Innovators (Disrupted) Tech Media Telco Retail BFS P&C Travel & Insurance Consumer Logistics Life Construction Mining Energy & Providers Mfg. Payer Insurance Products Utilities Source: Bain & Company © Mphasis 2019 P
Slide 10: Key trends leading to Mphasis Strategy
Key trends leading to Mphasis Strategy Cloud Cognitive Agile • Need for Agility driven by Enterprise Consumption Intelligent • Automation has expanded beyond the use of of Tech on demand & on cloud Automation set tools. DevOps • Trad enterprises have 1-2 releases a year, while • AI/ML+ RPA is enabli
Slide 11: Two Stronghold Pillars of Mphasis Strategy
Two Stronghold Pillars of Mphasis Strategy Mphasis ‘F2B’ Transformation™ Drivers Customer / Engagement Intelligence Core Outcomes Stakeholder Layer Layer Systems • Speed & Agility • Right Sized Transformations Microservices • Customer led Hyper • Shrinking the Core Personalization • Reference Archit
Slide 12: Our Numbers tell the Story: Consistency and Transformation
Our Numbers tell the Story: Consistency and Transformation Company Revenue in USD M (gross) 300 297 292 290 283 +3.3% 280 276 270 269 264 260 260 256 250 -1.3% 252 250 240 242 240 235 237 228 229 231 230 227 225 225 224 224 222 220 210 200 20 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 13: Accelerated Growth in Our Primary Engine: Direct Core Business
Accelerated Growth in Our Primary Engine: Direct Core Business 170 166 17.2% in CC +3.8% 160 Strongest YoY growth in Q1 FY20 151 146 142 138 133 127 119 120 119 121 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3FY19 Q4 FY19 Q1 FY20 CQGR % is in CC. Revenue reporte
Slide 14: Consistency: Direct growth fueled by New Gen Services
Consistency: Direct growth fueled by New Gen Services New Gen Areas Dominate New Wins Significant Revenue Growth in New Gen Services Direct TCV Wins (USD M) Direct Core Revenue (USD M*) % New Gen 36.3% CAGR 47.6% 623 616 539 551 479 45.9% New Gen 32.1% 39.7% 366 483 457 New Gen 222 Traditional 67.9%
Slide 15: Optimal Corporate Strategy – Focused on Bringing 'T' back into IT
Optimal Corporate Strategy – Focused on Bringing ‘T’ back into IT Hyper personalized Next Gen Solutions bring together Deep Domain Expertise and Cutting-Edge Technology Deep Domain Expertise Verticals • Long tenured preferred relationship with Wealth Management marquee customers Consumer Banking Lif
Slide 16: We are preparing for a vastly different future
We are preparing for a vastly different future Past Today / Future • Application IDEs • Cloud Sandbox • Dev ops tools • Auto Code generators 1. Next Gen Portfolio / IP • QA Automation tools • Microservices • Decisions mostly taken by IT • Decision taken by business and IT • RFP driven Sale Process •
Slide 17: Continue to Invest in Next Gen Capabilities
Continue to Invest in Next Gen Capabilities Next Labs – Cognitive & AI NextSTEP™ Platform Mphasis Technology Council • DeepInsights™ • Integrated Tool Chains • CEO – Strategic Guidance • HyperGraf™ (Customer 360 Analytics) • Delivery Accelerators • Mphasis Technology Council (MTC) – • InfraGraf® (Pr
Slide 18: New Client Wins have fueled growth in Direct Core
New Client Wins have fueled growth in Direct Core +105.3% YoY (%) Revenue Growth Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ’17 ’18 ’18 ’18 ’18 ’19 ’19 ’19 ’19 ’20 New Clients Added 7 3 4 4 7 5 18 19 12 • There are no mature markets... • Offerings the real HERO – Differentiation is Key © Mphasis 2019 Proprietary
Slide 19: FY19 New Gen TCV Wins – By Tribes – DC
FY19 New Gen TCV Wins – By Tribes – DC (In $M) 300 250 200 150 100 50 0 Next Gen App Dev / AMS Automation Legacy Others Multiple DEV Ops (App maintenance & Modernization / Data support) © Mphasis 2019 Proprietary and confidential information August 9, 2019 19
Slide 20: DXC-Mphasis Relationship Transformation
DXC-Mphasis Relationship Transformation Predominantly IS, in Americas From Supplier to Partner FY16 FY17 Traditional Outsourcing FY18 Managed Services Apps to Cloud solution partner working with DXC Client Facing teams Strategic Solutions Partner : Apps to Cloud From Traditional Outsourcer to Soluti
Slide 21: DXC-HP Channel Business Transformation
DXC-HP Channel Business Transformation Revenue Trend over last 17 qtrs. in USD M 82.3 82.8 84.4 5.1% 77.9 71.4 73.5 67.4 -3.1% 63.4 65.5 62.9 59.6 55.4 54.7 53.5 53.8 54.0 52.5 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Business Shift Geogra
Slide 22: Industry Analysts and Influencers too are Recognizing this
Industry Analysts and Influencers too are Recognizing this… DXC Partner Advisory Council Awards, 2018 Based on 60+ mentions by Analyst firms in there research over the last 15 months © Mphasis 2019 Proprietary and confidential information August 9, 2019 22
Slide 23: Mphasis – an end to end Applied Tech Company
Mphasis – an end to end Applied Tech Company Front2Back™ (F2B) Transformation ENGAGEMENT INTELLIGENCE CORE LAYER LAYER SYSTEMS APPIFICATION PROCESS & ENTERPRISE CONTEXT MICROSERVICES ANY DEVICE DATA & ANALYTICS Digital NLP IT Services IT and Operations CUSTOMERS/ BUSINESS Traditional IT Providers Ne
Slide 24: 2020 and Beyond…
2020 and Beyond… 1. Accelerate Direct Core : Consistently outgrow the market • Farming Strategic Accounts • New Client Acquisition • Continue momentum in BX channel 2. Strategic Partnership with DXC/HP : Continuous transformation in relationship • Applications Partnership Growth • Expand Vertical an
Slide 25: Strategy in Action
Strategy in Action Dinesh Venugopal President Digital and Direct
Slide 26: Direct Growth: Powered by Our Three Pillars
Direct Growth: Powered by Our Three Pillars 47.6% 616 551 366 Leading with Next Gen • Bringing ‘T’ back into IT 1 Portfolio Next Gen 457 483 222 Traditional 144 94 133 TCV win $ Mn Proactive Reactive • Institutionalized early Catching deals upstream, TCV Won 84% 16% 616 Mn engagement sales process 2
Slide 27: Our Next Gen Portfolios is driving Digital Transformation for Clients
Our Next Gen Portfolios is driving Digital Transformation for Clients DevOps: Ushering Speed, Extreme reliability, Security Next Gen App Dev: Enabling enterprises to become digital natives through “platformization” - delivering and TCO optimization through DevSecOps. Stelligent business capabilities
Slide 28: Our Next Gen Engagement Model is Bringing Agility and Innovation to Clients
Our Next Gen Engagement Model is Bringing Agility and Innovation to Clients Modernization Tribe Portfolio Deal Delivery Design Thinking Workshops Dev Squad Squad Next Gen App Tribe Hackathons Portfolio Deal Delivery Account Dev Squad Squad Chapter POC led Co-Innovation DevOps Tribe Account Portfolio
Slide 29: DevOps: The Process for Building and Delivering Business Capabilities is Changing
DevOps: The Process for Building and Delivering Business Capabilities is Changing Traditional Waterfall Methodology DEVOPS Approach Trad enterprises have 1-2 releases a year, DEVOPS High while company like Netflix release code Performer Impact* multiple times a day *State of DevOps report-Puppet © M
Slide 30: How we engage with our Clients
How we engage with our Clients We embed with client We aim for one-click We strive to make our We are driven by a teams, attend standups, deployment to give clients self-sufficient, desire for automation, interface with them clients the ability to through collaborative a culture of constant daily co
Slide 31: Mphasis XRAE – DevSecOps Solution on a Page
Mphasis XRAETM – DevSecOps Solution on a Page Value The High Speed Extreme Reliability Security at Speed TCO Optimization SDLC Plan Develop Build Test Deploy Monitor/Optimize End-to-End DevSecOps services Packages Service DevSecOps Value Stream Insights & Consulting A (Diagnostic and Solution consul
Slide 32: Client Story: Impact Metrics from a Leading Manufacturing Company
Client Story: Impact Metrics from a Leading Manufacturing Company Getting Environments: Deployment Time: Process Workload Time: Decreased from a Reduced by 97% Accelerated from month to 30 mins 6 hours to 7 minutes Cost of Processing Files: Product Deployments: Reduced by Surged from once a quarter
Slide 33: Design Thinking/ Hackathons To Kickstart Transformation
Design Thinking/ Hackathons To Kickstart Transformation © Mphasis 2019 Proprietary and confidential information August 9, 2019 33
Slide 34: Sparkle Eco-system: Powering our Next Gen Engagement Model
Sparkle™ Eco-system: Powering our Next Gen Engagement Model Sparkle™ Eco-system Sparkle Sparkle Sparkle Solutions Innovation Delivery Sparkle Research Labs Foundry Centers Showcase Sparkle™ powered engagement model - Success with a large financial service organization Idea Funnel Idea Solutioning Sp
Slide 35: Client Stories
Client Stories
Slide 36: Digital Transformation For A Fortune 50 Player
Digital Transformation For A Fortune 50 Player Client Need: Move out of mainframe onto a cloud environment in 1 year with no modernization budget Mainframe Systems Run business Stifled Innovation Business slowing time consuming - Inability to leverage Constraints to market bulk of the spend Next gen
Slide 37: Bringing Our Offerings Together To Help Clients Transform
Bringing Our Offerings Together To Help Clients Transform Focus for today Modernization Next Gen App Dev/Cloud • Business Capability vs. Accelerate • Maximize Renewal Application based approach mainframe Enables Accelerate • Tribes and squads Move, Legacy business • Delivering in chunks of business
Slide 38: Modernization for Large Scale Transformation for UK's Largest Independent Broker
Modernization for Large Scale Transformation for UKs Largest Independent Broker Client Need: Drive efficiency & effectiveness across Operations, enable Growth Multiple acquisitions never High current cost of run Long “time to quote”, Business fully integrated, across tech and ops low customer 80+ br
Slide 39: Modernize A Leading Freight Player Into A Platform Enterprise
Modernize A Leading Freight Player Into A Platform Enterprise Client Need: Build a Business of the Future by embracing Digital Disruptions / Accelerating Innovation Business System Reliability / Dependency on monolith Run cost to maintain Availability & low Core – lack of speed, Constraints technolo
Slide 40: Talent Transformation
Talent Transformation Srikanth Karra CHRO
Slide 41: Re-Skilling the Workforce: Traditional Systems Development Life Cycle
Re-Skilling the Workforce: Traditional Systems Development Life Cycle (SDLC) Application Development Application Maintenance Timeline 3 years 5 years Requirement Collection and Design Implementation Testing Deployment Maintenance Stage Analysis Resource Structure Business Analyst Architect Programme
Slide 42: Re-Skilling the Workforce: Agile Development
Re-Skilling the Workforce: Agile Development Roll-out a Minimum Viable Product (MVP) Release Upgrades with New Functionality Timeline in 3 to 6 months only (Ongoing) Multi-functional Scrum Teams of Agile Developers Scrum Master Scrum Master Scrum Master Product Owner Product Owner Product Owner Skil
Slide 43: Our Talent Transformation program is the catalyst to leap frog
Our Talent Transformation program is the catalyst to leap frog… On Demand Industrial or Hyper Code driven Solution driven Mass factory personalize approach Uni-dimensional Traditional New Gen multi skill channel skilling Learning Design Tech talent Hierarchical ecosystem Thinking driven Tenure based
Slide 44: Linking Digital Transformation to Talent Transformation
Linking Digital Transformation to Talent Transformation • 5x increase in the # of training programs (>78% are Gen-Next skills) • Technical trainings cover the following competencies Technical Competencies .NET Data Science Linux Administration Artificial Intelligence / Machine Learning UI /UX Mobile
Slide 45: Talent Next learning platform screenshot
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Slide 46: Talent Next learning platform screenshot
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Slide 47: Creating a Next Gen Talent Pool
Creating a Next Gen Talent Pool Lesser dependence on lateral hires Skill based compensation 09-08-2019 | © Mphasis 2018 Proprietary and confidential information 47
Slide 48: Thanks
Thanks 48