Slide 1: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward-looking statements regarding our future business expectations and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could ca
Slide 2: Investor Presentation Q2 2020
Investor Presentation Q2 2020 2
Slide 3: 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 4: 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 5: Our Numbers tell the Story: Consistency and Transformation
Our Numbers tell the Story: Consistency and Transformation 310 CQGR +3.2% 305 300 297 CAGR +13.6% 292 290 283 280 276 269 270 264 260 260 256 250 CAGR -4.9% 252 250 242 240 237 240 235 228 229 231 230 227 225 225 224 224 222 220 210 200 20 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Continued growth in Banking and Emerging Verticals
Continued growth in Banking and Emerging Verticals Q2 Y-o-Y CAGR BCM Vertical Split 305 276 Wealth Management & Brokerage 242 82 16% 18% Consumer Banking 71 24.8% 30.1% Emerging Industries 59 49 5% 20% 47 ITCE 34 34 31 11% 5% 23.1% 14.1% Insurance 31 Mortgage 8.0% Corporate Banking Investment Bankin
Slide 7: Direct Core Business has been consistently delivering strong growth
Direct Core Business has been consistently delivering strong growth CAGR 15.4% 16% YoY growth in H1 FY20 CQGR 3.6% 175 166 170 160 151 146 138 142 133 127 119 120 119 121 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 Q2’20 Revenue reported is in USD @ Avg USD INR Ex.
Slide 8: Direct Growth is Powered by Our Three Pillars
Direct Growth is Powered by Our Three Pillars New Gen CAGR +32% 616 650 551 • 8 Handpicked World Class Leading with Next Gen 366 Technology Portfolios 1 Portfolio New Gen 457 483 512 222 Traditional 144 94 133 138 • Bringing the “T” back into IT 2017 2018 2019 H1’20 A * TCV win $ Mn * H1’20 annualiz
Slide 9: New Client Wins have fueled growth in Direct Core
New Client Wins have fueled growth in Direct Core CAGR +135% +87.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ’18 ’18 ’18 ’18 ’19 ’19 ’19 ’19 ’20 ’20 New Clients Added 7 3 4 4 7 5 18 19 12 7 Revenue and Growth numbers in $ © Mphasis 2019 Proprietary and confidential information 11/15/2019 9
Slide 10: DXC Relationship Transformation delivering results
DXC Relationship Transformation delivering results Revenue Trend over last 18 qtrs. in $ Mn CAGR CAGR 19.3% -11.9% 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 Q2-20 Business Shift Geographical Penetration 19% App Services GTM / RoW – 7% 29% S
Slide 11: Strong Earnings Growth and Optimal Cash Strategy to maximize shareholder value
Strong Earnings Growth and Optimal Cash Strategy to maximize shareholder value Improving operating margin Strong growth in EPS 15.5%-17% 16.1% 15.1% 13.3% 14.6% 56.1 12.8% 37.7 42.7 32.1 30.1 FY15 FY16 FY17 FY18 FY19 FY20 G FY15 FY16 FY17 FY18 FY19 YoY % -6.3% 25.3% 13.5% 31.4% * FY20 G – FY20 Guida
Slide 12: Core Investment Thesis : H1 FY20 Execution Update
Core Investment Thesis : H1 FY20 Execution Update 1. Accelerate Direct Core : Consistently outgrow the market Strong growth of 16.0% YoY; • Farming Strategic Accounts NCA grew 80+ % and BX grew 50+ % • New Client Acquisition (NCA) Continued momentum in Deal wins: YTD TCV • Continue momentum in BX ch
Slide 13: Q&A
Q&A © Mphasis 2019 Proprietary and confidential information