Slide 1: Investor Update Q4 2019
Investor Update Q4 2019 11th February 2020 © 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: Use of Non-GAAP Financials
Use of Non-GAAP Financials Hexaware has included non-GAAP financial measures in this presentation to supplement Hexaware’s consolidated financial statements presented on a GAAP basis. These non- GAAP financial measures may have limitations as analytical tools, and these measures should not be consid
Slide 4: Key Highlights
Key Highlights Q4 Revenue FY 19 Revenue FY 19 EBITDA* $ 214.3M $ 793.3M $ 124.8M, 15.7% • Q/Q 1.8%; 1.3% in CC • Y/Y growth of 17.1%; 18.2% in CC • Y/Y growth of 17.1%, maintained margin • Y/Y 21.7%, 21.8% in CC • Q4 EBITDA: $ 33.6M, 15.7% FY 19 EPS Q4 NN Wins Closing Headcount ₹ 21.52 $ 30M 19,999
Slide 5: Q4 2019 Business Update
Q4 2019 Business Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 5
Slide 6: Q4 19 | Financial Performance
Q4 19 | Financial Performance GROWTH GROWTH Amounts in US$ M Q4 2019 Q3 2019 Q4 2018 QoQ YoY Revenue 214.3 210.5 1.8% 176.1 21.7% EBITDA 31.9 34.7 -8.0% 28.1 13.6% EBITDA % 14.9% 16.5% -1.6% 15.9% -1.1% EBITDA (post RSU) 33.6 33.8 -0.7% 26.8 25.3% EBITDA % 15.7% 16.1% -0.4% 15.2% 0.4% EBIT (post RSU
Slide 7: Revenue Walk | QoQ
Revenue Walk | QoQ $M www.hexaware.com | © Hexaware Technologies. All rights reserved. 7
Slide 8: EBITDA Walk | QoQ
EBITDA Walk | QoQ % of revenue Gross Margin SG&A ESOP * EBIDTA (post ESOP cost) www.hexaware.com | © Hexaware Technologies. All rights reserved. 8
Slide 9: Q4 19 | GAAP to Non-GAAP Reconciliation
Q4 19 | GAAP to Non-GAAP Reconciliation Q4 ’19 Q3 ’19 Q4 ’18 Amounts in $ M PBT Tax PAT EPS* (INR) EPS* (INR) Reported (GAAP numbers) 28.4 4.9 23.5 5.62 6.16 4.15 Q4 ‘19 GAAP EPS Change -0.54 1.48 % Change -8.7% 35.6% Non-GAAP Adjustments Amortization of intangibles 1.6 0.4 1.1 0.27 NPV of deferred
Slide 10: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q4 2018 Q4 2019 $50+ 3 3 Client Contribution for Q4 19 and Q4 18 $30 - $50 0 0 Contribution $20 - $30 Top Clients Q4 19 Q4 18 2 3 Change YoY $10 - $20 4 8 Top 5 Clients 33.4% 42.0% -8.5% Top 10 Clients 43.4% 51.6% -8.2% $5 - $10 18 20 $1 - $5 72 95 >$1 99 129
Slide 11: Key Wins
Key Wins USD 30 million NN Deal wins in Q4-19 EN momentum continues to be robust* Application Upgrade for a major Asian Testing Automation for one of the largest educational institute automobile manufacturer globally Guidewire Consulting for a leading Application Support and Maintenance for a Europe
Slide 12: Employee Metrics
Employee Metrics UTILIZATION EMPLOYEE ATTRITION Utilization at planned levels Attrition stabilizing 80.9% 81.3% 80.7% 18.2% 18.2% 78.2% 79.0% 78.7% 79.0% 79.0% 78.5% 17.0% 17.3% 15.7% 15.8% 14.4% 13.1% 13.4% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2018 2018 2018 2019 2019 201
Slide 13: Q4 | Broad based growth across portfolio
Q4 19 | Broad based growth across portfolio APAC M&C IMS 8.1% 18.2% 15.8% Europe BFS 17.5% 35.5% ES ADM GTT 9.2% 10.3% 40.4% DA North HTPS 15.6% America 15.0% H&I BPS BIBA 74.4% 21.0% 8.4% 10.6% GROWTH GROWTH GROWTH GROWTH GROWTH GROWTH GEOGRAPHY VERTICAL HORIZONTAL QoQ YoY QoQ YoY QoQ YoY North Ame
Slide 14: FY 2019 Business Update
FY 2019 Business Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 14
Slide 15: FY 19 | Financial Performance
FY 19 | Financial Performance Amounts in US$ M FY 2019 FY 2018 GROWTH YoY Revenue 793.3 677.7 17.1% EBITDA 125.3 112.1 11.7% EBITDA % 15.8% 16.5% -0.8% EBITDA (post RSU) 124.8 106.7 17.1% EBITDA % 15.7% 15.7% 0.0% EBIT (post RSU) 110.2 97.1 13.4% EBIT % 13.9% 14.3% -0.4% Transaction Expense (2.4) 0.
Slide 16: FY 19 | GAAP to Non-GAAP Reconciliation
FY 19 | GAAP to Non-GAAP Reconciliation 2019 2018 Amounts in $ M PBT Tax PAT EPS* (INR) EPS* (INR) Reported (GAAP numbers) 110.7 19.6 91.1 21.52 19.65 2019 GAAP EPS Change 1.87 % Change 9.5% Non-GAAP Adjustments Transaction Cost 2.4 0.7 1.8 0.42 Amortization of intangibles 3.4 0.9 2.5 0.59 NPV of de
Slide 17: FY | Broad based growth across portfolio
FY 19 | Broad based growth across portfolio APAC HTPS IMS 9.1% 14.8% 15.7% Europe 15.3% BFS BPS ADM M&C 38.6% 8.1% 38.7% 17.1% BIBA 11.7% North H&I America GTT DA ES 19.5% 10.0% 75.6% 16.6% 9.3% GROWTH GROWTH GROWTH GEOGRAPHY VERTICAL HORIZONTAL YoY YoY YoY North America 15.5% BFS 5.5% ADM 26.1% Eur
Slide 18: Guidance for 2020
Guidance for 2020 Revenue: • FY Revenue growth of 15% - 17% • Majority of growth will happen from Q2 (calendar impact, deal ramp up) EBITDA (post ESOP cost): • EBITDA% at 15% - 16% Dividend: • Dividend of ₹ 8 for FY 2020 www.hexaware.com | © Hexaware Technologies. All rights reserved. 18
Slide 19: Finance Update
Finance Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 19
Slide 20: Q4 19 & FY 19 Performance
Q4 19 & FY 19 Performance US$ M 214.3 210.5 Key Highlights 188.5 ❑ Q4’19 revenue of $ 214.3 M 180.0 176.1 ▪ Q/Q growth of 1.8%, 1.3% in CC ▪ Y/Y growth of 21.7%, 21.8% in CC Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 ❑ Q4’19 revenue of INR 15,288 M QoQ 3.0% 2.2% 4.7% 11.7% 1.8% YoY 12.8% 10.9% 12.0% 23.1% 21.7%
Slide 21: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Q4'19 Avg. Rate (Previous Qtrs.) Currency Pair Amount (Mn.) Avg. Rate Q3'19 Q2'19 Q1'19 USDINR ($) 212.02 74.85 74.15 73.54 72.93 EURINR (€) 6.60 89.02 89.72 89.57 89.08 GBPINR (£) 13.60 99.14 98.73 99.27 99.11 Total ($) 237.37 Note - 1.Hedges outstanding are ful
Slide 22: Forex Gain/(Loss)
Forex Gain/(Loss) USD M 2.8 • Q4’19 registered a forex gain of $ 0.1 M 1.0 1.1 • Forex Gains expected in next two 0.5 quarters basis Q4 closing exchange rate 0.1 of INR 71.38 per USD are: • Q1’20 ~ $0.5 M (1.2) • Q2’20 ~ $1.1 M (3.6) Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 (F) Q2'20 (F) www.hexaware.com
Slide 23: Balance Sheet & Other Updates
Balance Sheet & Other Updates Cash Balance ($M) DSO (days) 125.9 Total Billed Unbilled 119.5 81 77 80 74 76 60 59 51 54 51 29.9 35.4 25 * 21 23 23 25 21 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 *Cash balance after payment towards acquisition Dividend (INR per share) Effective Tax
Slide 24: Thank you
Innovative Services Passionate Employees Thank you www.hexaware.com Delighted Customers www.hexaware.com | © Hexaware Technologies. All rights reserved. 24