Slide 1: Cover letter to stock exchanges for investor call presentation
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B 28 April 2023 The Manager, Listing The Manager, Listing BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. c/1, Dalal Street, G-Block, Bandra-Kurla Complex, Mumbai - 400 001 Mumbai – 400 051
Slide 2: Continued Focus on Micro in an uncertain Macro
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Continued Focus on Micro in an uncertain Macro Mphasis Earnings Q4 and FY 2023 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2023 Proprietary and confidential information I 4/27/2023 I 1 I
Slide 3: Safe Harbor
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B 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 numbe
Slide 4: Strategic Spend Priorities
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Strategic Spend Priorities © Mphasis 2023 Proprietary and confidential information I 4/27/2023 I 3 I
Slide 5: Our Overall Growth: A Snapshot
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Our Overall Growth: A Snapshot FY23 Gross revenue grew 9.7% in Constant Currency Growth with larger scale in Direct FY23 Direct revenue grew 12.0% in Constant Currency 6.8% 13.8% 17.3% 34.7% YoY # → 11.0% 12.0% YoY # → 9.8% 14.3% 11.8% 4.9%
Slide 6: Direct Channel: The Duality of FY23
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Direct Channel: The Duality of FY23 Direct excluding DR (Qtr) Direct excluding DR (FY) Direct including DR (FY) YoY # → 13.1% 43.4% 6.8% YoY # → 7.5% 40.4% 19.6% YoY # → 17.3% 34.7% 12.0% 1,440 1,612 362 342 CAGR # CAGR # CAGR # 1,462 1,226
Slide 7: Growth by Segment: An Annual View
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Growth by Segment: An Annual View Revenue in USD Mn Direct Direct Direct 1,718 1,718 YoY* 1,718 YoY* 1,593 YoY* 1,593 YoY* 1,593 YoY* 1,309 1,309 1,309 11.5% 12.6% 19.3% 23.6% 1,001 1,174 1,261 1,405 1,462 1,612 12.0% APPS 779 Direct 1,084 A
Slide 8: Growth by Segment: A Quarterly View
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Growth by Segment: A Quarterly View Revenue in USD Mn Direct Direct Direct 431 429 431 429 YoY* 431 430 YoY* 412 YoY* 412 YoY* 412 YoY* -5.1% -3.7% 4.6% 6.9% APPS 282 298 Americas 351 351 292 Direct 401 402 333 390 -1.8% 1.1% 2.7% -32.1% -32
Slide 9: Growth by Vertical: An Annual View
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Growth by Vertical: An Annual View 1,718 Direct Direct ex Direct 3Y 1,593 YoY * YoY * DR YoY * CAGR* Revenue in USD Mn 1,309 9.0% 9.2% 24.1% 21.7% 921 856 Banking & Financial Services 673 1.1% 1.0% 1.0% 3.3% 142 144 7.9% 17.4% 17.4% 56.7% In
Slide 10: Sources of Growth
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Sources of Growth Growth in Revenue (Direct ex DR) CAGR* Overall Direct YoY growth of 12% • Direct growth ex DR 19.6% YoY Top 10 Grew 8.6% YoY led by top accounts Accounts despite pockets of weakness in FY21 FY22 FY23 mortgage and BFSI Reven
Slide 11: Direct: TCV Remains Robust
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Direct: TCV Remains Robust Direct TCV Wins Direct Revenue / TCV Correlation CAGR 1,800 Direct Revenue (TTM in US$ Mn) 1,428 1,600 1,313 309 Mn 4% Others 1,112 9% L&T 1,400 15% TMT Insurance 1,200 R2 =0.8042 736 Traditional 1,000 70% BFS 800
Slide 12: Direct: Improving Client Mining and Large-deal Metric
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Direct: Improving Client Mining and Large-deal Metric Client Pyramid Robust large deal wins (>$20M TCV) Client Additions 112 # of cumulative deal • 10 Large deals in the past 1 year wins since Q1’18 • Two deal wins >$100 Mn in FY23 Category
Slide 13: Strong Pipeline Growth Driven by Cloud & Transformation Deals
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Strong Pipeline Growth Driven by Cloud & Transformation Deals Industry Distribution Solution Archetype Distribution YoY QoQ +35% +9% 13% 9% 10% New engines of Data 12% +52% growth kicking in 15% 17% Modernization 16% 64% 11% 15% 11% Value St
Slide 14: Financial Metrics: Reporting a Healthy Growth
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Financial Metrics: Reporting a Healthy Growth Revenue Growth Operating Profit Growth YoY* + 9.7% YoY + 6.7% 1,718 CAGR* +15.4% CAGR +11.4% 1,593 262 245 1,309 211 FY21 FY22 FY23 FY21 FY22 FY23 Gross Revenue in USD Mn at average USD/INR rate
Slide 15: FY23: In Summary
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B FY23: In Summary ▪ Rounded off a mixed FY23 marked by duality in business segments • Strong double-digit growth in Direct (ex DR) at 19.6%; FY23 Direct growth at 12% YoY, despite pronounced mortgage weakness, delayed conversions in H2FY23 ▪
Slide 16: FY24: An Outlook
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B FY24: An Outlook ▪ Focused on Micro in an uncertain Macro ▪ Strong pipeline entering FY24 led by cloud, transformation and consolidation ▪ Q1FY24 softness in BFS segment ▪ Growth in Direct likely to be back-ended with strong sequential growt
Slide 17: Q&A
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis 2023 Proprietary and confidential information I 4/27/2023 I 16 I
Slide 18: Analyst Recognitions: Q4 FY23
DocuSign Envelope ID: E343B612-D5A5-482A-9946-841D87195C7B Analyst Recognitions: Q4 FY23 MAJOR LEADER CONTENDER Healthcare Cloud-based Core Group Life Policy Administration Systems (PAS) Administration Platforms PEAK Matrix® Products PEAK Matrix® Assessment 2023 – Assessment 2023 North America HFS H