Slide 1: Investor Update Q1 2019
Investor Update Q1 2019 24th April 2019 © 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: Q1 2019 Business Update
Q1 2019 Business Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 3
Slide 4: Key Highlights
Key Highlights Q1 Revenue Q1 EBITDA* Q1 EPS $ 180.0M 15.0% ₹ 4.65 • Q/Q growth of 2.2%; 2.0% in CC • Q1 EBITDA of $ 27M • Q/Q EPS growth of 12.0% • Y/Y growth of 10.9%; 13.0% in CC • Q/Q change of -0.2% NN Wins Closing Headcount Dividend $ 36M 16,509 ₹ 2.5 • High growth potential clients added • Q1
Slide 5: Q1 19 | Financial Performance
Q1 19 | Financial Performance GROWTH GROWTH Amounts in US$ Mn Q1 2019 Q4 2018 Q1 2018 QoQ YoY Revenue 180.0 176.1 2.2% 162.2 10.9% EBITDA (before ESOP cost) 27.6 28.1 -1.8% 26.5 3.9% EBITDA % 15.3% 15.9% -0.6% 16.4% -1.1% EBITDA (after ESOP cost) 27.0 26.8 0.6% 25.1 7.4% EBITDA % 15.0% 15.2% -0.2% 1
Slide 6: Revenue Walk QoQ
Revenue Walk I QoQ $M 181 2.2 180.0 179 1.2 177 176.1 0.5 175 173 171 169 167 165 Q4 18 Forex Calendar (incl. Volume Q1 19 Furlough) Increases Decreases www.hexaware.com | © Hexaware Technologies. All rights reserved. 6
Slide 7: EBITDA* Walk QoQ
EBITDA* Walk I QoQ % of revenue 15.5 15.2 1.0 15.0 15.0 0.2 (0.4) 14.5 (0.3) 14.0 (0.8) 13.5 13.0 12.5 12.0 Q4 18 Forex H1B Visa Calendar (incl. Other costs SG&A Q1 19 Furlough) Increases Decreases * EBIDTA (post ESOP cost) www.hexaware.com | © Hexaware Technologies. All rights reserved. 7
Slide 8: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q1 19 vs Q1 18 Top 20 accounts Q1 2018 Q1 2019 CONTRIBUTION GROWTH TOP CLIENTS GROWTH QoQ QoQ $50+ 3 3 Top 5 Clients -0.3% 1.5% $30 - $50 0 0 $20 - $30 1 2 Top 10 Clients -0.5% 1.2% $10 - $20 6 4 Top 20 Clients 0.2% 2.6% Other Clients -0.2% 1.6% $5 - $10 10 1
Slide 9: NN Wins
NN Wins USD 36 million NN Deal wins in Q1-19 Digital consulting for a management consulting company Cloud native development for a shipping services company Consulting and creating data lake for a multinational commercial bank Application modernization using MuleSoft for an insurance and financial s
Slide 10: Employee Metrics
Employee Metrics UTILIZATION EMPLOYEE ATTRITION Utilization maintained at steady rate Uptick in Attrition 18.2% 80.8% 80.9% 81.3% 17.0% 79.7% 79.0% 78.7% 79.0% 78.9% 78.2% 15.7% 14.9% 14.4% 13.8% 13.7% 13.1% 13.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 20
Slide 11: Q1 19 | Broad based growth across portfolio
Q1 19 | Broad based growth across portfolio APAC, IMS, Europe, 11.3% PS, 14.3% ADM, M&C, 17.2% BFS, 40.8% BPS, 17.8% 12.6% 34.5% 7.6% BIBA, 13.1% North ES, 9.5% America, 76.1% H&I, 18.3% DA, GTT, 9.5% 17.5% GROWTH GROWTH HORIZONTAL QoQ YoY GROWTH GROWTH VERTICAL ADM 0.5% 6.6% GROWTH GROWTH QoQ YoY E
Slide 12: Guidance Update
Guidance Update CQGR ask to deliver Amounts in $ M Q1 2019 FY 13% Y/Y Growth Revenue 180.0 4.1% EBITDA* 27.0 7.5% Target as mid-point of guidance EPS growth to be faster than EBITDA* growth, driven by: • Forex hedge gains (assumes exchange rates for Q2-Q4 to be same as Q1 closing rates) • ETR downwa
Slide 13: Finance Update
Finance Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 13
Slide 14: Revenue
Revenue 180.0 USD M Key Highlights 176.1 171.1 168.3 ❑ Q1’19 revenue of $ 180 M ▪ Q/Q growth of 2.2%, 2.0% in CC ▪ Y/Y growth of 10.9%, 13.0% in CC Q2'18 Q3'18 Q4'18 Q1'19 ❑ Q1’19 revenue of INR 12,640 M Q/Q 3.8% 1.6% 3.0% 2.2% Y/Y 10.3% 11.1% 12.8% 10.9% ▪ Q/Q growth of 0.9% and Y/Y growth of 20.5%
Slide 15: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Outstanding Hedge Position Avg. Rate Q1' 19 Currency Pair Q2'18 Q3'18 Q4'18 Q1'19 Amount $M. USDINR ($) 70.14 70.81 71.83 72.93 196.80 EURNR (€) 85.61 86.91 88.22 89.08 6.54 GBPNR (£) 95.37 97.16 98.70 99.11 13.08 Total ($ M ) 221.27 Note - 1. Hedges outstanding
Slide 16: Forex Gain/(Loss)
Forex Gain/(Loss) USD M 4.3 • Q1’19 registered a forex loss of 3.3 $ 1.2 M 3.0 • Forex Gains expected in next 0.92 1.06 two quarters basis Q1 closing exchange rate of INR 69.16 per USD are: Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19F Q3’19F ▪ Q2’19 ~ $ 0.92M ▪ Q3’19 ~ $1.06M (1.2) (3.62) www.hexaware.com |
Slide 17: Balance Sheet & Other Updates
Balance Sheet & Other Updates Cash Balance ($M) DSO (days) 83 81 74 75 74 125.9 119.5 58 60 108.4 100.6 51 47 47 Billed 94.0 Unbilled 27 28 25 21 23 Total Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Dividend (INR per share) Effective Tax Rate (ETR) 2.5 2.5 2.5 2.5 25.2% 22.0% 19.7% 1
Slide 18: Thank you
Innovative Services Passionate Employees Thank you www.hexaware.com Delighted Customers www.hexaware.com | © Hexaware Technologies. All rights reserved. 18