Slide 1: Intimation to stock exchanges: presentation for investor/analyst meet
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F 25 August 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: Nitin Rakesh, 25 Aug 2023
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Nitin Rakesh Date: 25th Aug, 2023
Slide 3: Safe Harbor
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F 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: Themes that Played a Role Over past five Years to Advance Tech Dominance
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Themes that Played a Role Over past five Years to Advance Tech Dominance ‘SaaS’ification of Tech Abundance of Data Pandemic Democratization of Tech Global Enterprise IT With Technological Shocked the system to Easy access to technical spend
Slide 5: Despite Macro Uncertainty, the Tech Investing Supercycle is Still Intact
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Despite Macro Uncertainty, the Tech Investing Supercycle is Still Intact Digitization themes Appetite for cost & Green shoots of IT spend uptrend will still continue to be transformation led activity visible with take course as we look top o
Slide 6: Value Migration Inflection Points in the past years in IT services
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Value Migration Inflection Points in the past 25 years in IT services 1 2 3 4 Y2K Enterprise SMAC/ Digital Gen AI Outsourcing 2000 2005 2015 2023 © Mphasis 2023 Proprietary and confidential information I 8/25/2023 I 5 I
Slide 7: Mphasis has always been at the forefront of catching these Tech Mega Trends
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Mphasis has always been at the forefront of catching these Tech Mega Trends Agility with Resilience Customer Centricity Cost Takeout Huge Impact on IT Consumption Customers Driving Disruption Self Funding Transformation Implications CHANGING
Slide 8: We Continue to Differentiate Ourselves
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F We Continue to Differentiate Ourselves … Engineering DNA Geek Culture F2B TM Transformation We lead with Design and Architecture The engagement layer is powered by Our purpose is to be the Driver in the where design thinking and digital the
Slide 9: Our Numbers tell our story: Consistency and Transformation
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Our Numbers tell our story: Consistency and Transformation Overall Growth Growth with larger scale in Direct YoY # → 6.8% 11.0% 13.8% 17.3% 34.7% 12.0% YoY # → 9.8% 14.3% 11.8% 4.9% 21.3% 9.7% YoY # EX DR* → 10.9% 15.9% 14.7% 7.5% 40.4% 19.6
Slide 10: Our Growth Strategy: Expansion and Diversification
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Our Growth Strategy: Expansion and Diversification Continue to mine deep in BFS with Expand into strategic geographies dedicated effort to grow 4 new verticals for GTM & Supply chain Client Centricity n=1 Capability Build capabilities & comp
Slide 11: Focus on Winning with our Capability Ecosystem
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Focus on Winning with our Capability Ecosystem 1 Capability 2 Vertical 3 Geographical Build Buy Partner Strategy Invest in Tribes & Squads model Tuck in M&As to Partner Ecosystem bolster capability using Hyperscalers & Others Capability Ecos
Slide 12: Launched a dedicated AI Business Unit: Leading to TCV Wins and Strong Pipeline
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Launched a dedicated AI Business Unit: Leading to TCV Wins and Strong Pipeline Mphasis Customer End Consumer Super-Power Mphasis Deal Archetypes Engineering & Operations Exoskeleton Various AI Products AI Engineering Squads Mphasis.ai Platfo
Slide 13: BFS continues to be our Anchor vertical
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F BFS continues to be our Anchor vertical 1 Capability 2 Vertical 3 Geographical +17.8% 921 856 673 563 Large Account New Account Anchor for other Client Innovation Wallet Share Mining Geo expansion Center Client Innovation FY20 FY21 FY22 FY23
Slide 14: Account Cohorts helping us to diversify vertical footprint
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Account Cohorts helping us to diversify vertical footprint 1 Capability 2 Vertical 3 Geographical Direct 4Y Extending our performance in BFS to other verticals of CAGR 1,718 choice using repeatable and scalable deal archetypes: 19% 921 • Ins
Slide 15: Expansion in other geographically aligned markets
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Expansion in other geographically aligned markets 1 Capability 2 Vertical 3 Geographical Canad a Expansion of GTM Efforts Expansion of Supply Chain Efforts Canada Canada Estonia Europe Mexico Poland APAC Costa Rica Taiwan © Mphasis 2023 Prop
Slide 16: Growth Strategy resulted in expansion in TAM: 3X increase
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Growth Strategy resulted in expansion in TAM: 3X increase Evolution of Addressable Market for Mphasis (2019-2023) Expanding our capability set with tuck-in acquisitions: Stelligent, 3X Datalytyx & Blink design Expansion into other new vertic
Slide 17: Proven Success Model enables us to expand both wallet & mind share with clients
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Proven Success Model enables us to expand both wallet & mind share with clients • Tribes & Squads • Sparkle Innovation • Mphasis Tech Council Hi-Tech • Executive Sponsorship driven • Delivery excellence/ client mapping Hi-Touch alignment on
Slide 18: Resulting in a healthy pyramid with continued investment in potential accounts
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Resulting in a healthy pyramid with continued investment in potential accounts Client Pyramid Growth between FY19 & FY23 113 Client Additions Top 5 Client Clients 6-10 Overall Top 20 Growth Growth Growth Category FY19-23 $200M + 1 16% 24% 17
Slide 19: In Summary
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F In Summary 1 2 3 4 Positioned to spot Laser focused on our Investment in Account Strategic tech plays early in capability build up Cohort model to open investments in the cycle and to bolster logos and mine deep Talent upskilling, capitalize
Slide 20: Enterprise Verticals: Diversifying The Portfolio
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Enterprise Verticals: Diversifying The Portfolio Elango R Date: 25th Aug, 2023
Slide 21: Safe Harbor
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F 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 22: Non-BFS Expansion: Verticalizing and Executing Small Number of True Fundamental Movements
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Non-BFS Expansion : Verticalizing and Executing Small Number of True Fundamental Movements Scale • Top #1 or #2 Preferred Partner 03 Inch-Wide • Replicate Value Proposition & Wins across Verticals Mile-Deep • Large Deals & Hyperscalers Accou
Slide 23: The Results: Four Years Hence
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F The Results : Four Years Hence New Logos Existing Logos High –Velocity Growth outside of BFS Stage 3 Stage 4 Stage 5 Strategic Stage 1 Pitching Stage 2 Prospect 1st Meaningful Multiple Active Account Purchase Engagements CAGR +20% 100 M Heal
Slide 24: Win Themes: Successful Challenger Brand Leading to Large Transformation Deals
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Win Themes : Successful Challenger Brand Leading to Large Transformation Deals Deal Archetypes Tribes Leveraged TCV + Accounts Won Zero Cost Transformation Modernization | Next Gen IT Ops | $100M TCV | Logistics Customer 1 DevOps | Data Cust
Slide 25: In Summary: Delivering Outcomes For Our Customers
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F In Summary : Delivering Outcomes For Our Customers 1 2 3 4 4 Verticals with Disruptive Large Deals motion Building the Teams differentiated value Challenger – led by Archetypes & with the Founder’s proposition : preferred Digital Hyperscaler
Slide 26: Enabling Tech Leadership Using AI – Bringing T back in IT
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Enabling Tech Leadership Using AI – Bringing T back in IT Srikumar Ramanathan Date: 25-Aug-2023
Slide 27: Safe Harbor
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F 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 28: Drivers for Change
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Drivers for Change Drivers Implications Solutions Changing tech • End-to-end Solutions - Agility with Resilience consumption trends Impacting Both Business Huge Impact on IT such as… and Technology Consumption • Low Capital • Adopt Disruptiv
Slide 29: Made possible by…
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Made possible by… Council of Elders CEO Mphasis Technology Council: Thought Leadership and Guidance Making it work Applied Research Mphasis Architect Community (MAC & • AI/ML BIGMAC): Sharing and Building • Quantum Computing • Blockchain Mph
Slide 30: Alliances: continuously evolving competency model
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F First of its kind, continuously evolving competency model Tribe 1.0 Tribe 2.0 Tribe 3.0 Promoted Product Thinking Promoted Platform Thinking Promote Composability Thinking FY20 FY21, FY22 FY23 The Power of Eight The Power of Eight The Power
Slide 31: Pivot to Archetypes
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Pivot to Archetypes Tribes Key Archetypes Data 1. Data Modernization Experience 2. Experience Transformation Modernization 3. Legacy Modernization XaaP 4. Platformization Value Stream 5. Zero Cost Transformation Acceleration 6. Engineering P
Slide 32: Composable Archetypes Leading to Large and Repeatable Solutions
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Composable Archetypes Leading to Large and Repeatable Solutions • Focus on composability to bring in scale, speed and domain • Archetype mode of selling – Building reusable components – Solution to delivery framework – Quicker estimation & r
Slide 33: Strategy in Action: Cost Led Transformation
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Strategy in Action: Cost Led Transformation Large Core Banking Fintech • Burdened by legacy • Unable to compete with digital products • Need to Modernize without incurring bubble cost • Reduce run cost by using automation and AI • Modernize
Slide 34: Strategy in Action: Improve Agility Using Modern Engineering Practices
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Strategy in Action: Improve Agility Using Modern Engineering Practices Top 5 Bank • Traditional QA process slowing new releases • High defect leakage despite high cost of QA • Transformation through quality engineering • Increase release vel
Slide 35: Strategy in Action
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Strategy in Action 80% of TCV attributed to tribes and archetypes 70% of Mphasis pipeline growth in the last four years has been from large archetype deals Higher pro-active deal ratio Better sales leverage Repeatable deals Speed to market d
Slide 36: And Then Came Generative AI
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F And Then Came Generative AI © Mphasis 2023 Proprietary and confidential information I 8/25/2023 I 11 I
Slide 37: AI Offers Opportunity to Increase the TAM
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F AI Offers Opportunity to Increase the TAM 10 Archetypes 9 BA Coding Data Migration Deployment Developer Experience 8 Testing QA to QE 7 ETL Development Design and Architecture Data Transformation Market Size Growth 6 Enhancements 5 Contact C
Slide 38: Evolution Continues: Mphasis.ai
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Evolution Continues…. Tribe 3.0 Mphasis.ai Promoted Composability Thinking Promote Generative Thinking FY23 FY24 The Power of Eight XaaP (Platforms & AI Powered Experiences Modernization Protocols) Track 1 : AI Supercharge Archetypes IT Valu
Slide 39: Mphasis.ai Is One-Of-A-Kind Business Unit
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Mphasis.ai Is One-Of-A-Kind Business Unit Consumers Mphasis Customer End Customer Super-Power The Archetypes Engineering & Operations Exoskeleton Various AI Products Internal Producers Team Managing Mphasis.ai Platform Mphasis.ai AI Engineer
Slide 40: The Three Tracks
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F The Three Tracks Track 1 Track 2 Track 3 Super charge our Archetypes Disruptive Plays increasing TAM Operate Better with AI High Potential Archetypes Some areas that we are focusing on Deploy GenAI-based apps for internal 1. App Modernizatio
Slide 41: AI Propellers
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F AI Propellers Well Positioned to Win • Mphasis is an AWS Premier Tier Partner Language models Synth Studio Deep Insights™ • Mphasis is the largest provider of Machine MEP Learning Product Solutions • 250+ prebuilt machine learning models Con
Slide 42: Retain, Hire, Train: Talent development
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Powered by strong Talent development Retain: Hire: Geek Cloud Best Talent, Freshers Train: Talent Next
Slide 43: Thank You!
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Thank You!
Slide 44: Resilience in a Transformative Journey
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Resilience in a Transformative Journey Manish Dugar Date: 25th Aug, 2023
Slide 45: Safe Harbor
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F 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 46: Strategic Choices
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Strategic Choices Inch-wide, mile-deep- Leading with client-centric design Bringing T back into IT Front to Back TM transformation, enabled by Cloud/Cognitive/AI Composable archetypes for repeatability: new accounts, deal constructs, new geo
Slide 47: Enabled by Investment in Capability Building
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Enabled by Investment in Capability Building Build Buy Partner • Leaders in Tribes and squads • Public Cloud • Talent Next • Data Sciences • NCA channel • Product engineering • New Geographies • Experience design • New Accounts & Verticals •
Slide 48: Helped in Accelerating Direct Vertical with Strong Double-Digit Growth
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Helped in Accelerating Direct Vertical with Strong Double-Digit Growth Average large deal TCV ($ Mn) Direct revenues Direct % share size ($ Mn) ($Mn) in revenues 94% 95% 75 1,313 1,612 61 73% 616 707 685 813 31 FY19 FY23 Q1FY24 FY19 FY23 Q1F
Slide 49: Led to delivering overall transformative growth
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Led to delivering overall transformative growth 113 Client Pyramid Additions Category FY19-23 14.2% 11.7% 4.9% 21.2% 9.7% $200M + 1 YoY # → $100M + 3 Q4 FY19 Direct YoY # → 11.0% 13.8% 17.2% 34.4% 12.0% $75M + 3 Q1 FY24 $20M + 6 Revenues In
Slide 50: Margin Resilience
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Margin Resilience Margin Headwinds Investments in the period Utilization % • Utilization & • Everything Macro 97% 85% 5Y Peak Pyramid actions 5 – Pandemic, 89% Y 75% – Economic environment – Geopolitics – Business environment Onsite Offshore
Slide 51: Margin Resilience
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Margin Resilience … Maintained sustainable and steady margins in narrow band while investing for growth 18% 17% 16% 15% Reported EBIT % 14% Adjusted EBIT % 13% Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
Slide 52: Prudent Capital Allocation Strategy, Accreting Shareholder Value
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F Prudent Capital Allocation Strategy, Accreting Shareholder Value OCF (as % of PAT) Payout * % 104% 106% Average- >90% 100% 91% Average- 66% 81% 75% 58% 55% 60% 57% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • Average 70% of cash gener
Slide 53: 2024 and Beyond...
DocuSign Envelope ID: 3172037A-77DE-468F-8B33-90544B7CCD3F 2024 and Beyond... 1 Continue to take forward leaning stance on Tech- led positioning 2 Continue to invest in Zero to 1 and Scale thru 1 to n 3 Continue to grow above market, at stable margin having an upward bias 4 4Gs of Growth- competitiv