Slide 1: Investor Update Q4 2018
Investor Update Q4 2018 30th January 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: Q4 2018 Business Update
Q4 2018 Business Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 3
Slide 4: Key Highlights
Key Highlights Q4 Revenue FY 18 Revenue FY 18 EPS $ 176.1M $ 677.7M ₹ 19.65 • Q/Q growth of 3.0%; 3.4% in CC • Y/Y growth of 11.6% • FY EPS growth of 17.0% • Y/Y growth of 12.8%; 14.2% in CC • EPS of INR 20.33, 21.1% Y/Y growth at Sept rates*; Beat guidance of 20% Y/Y EPS growth at Sept rates Key Wi
Slide 5: Q418 | Financial Performance
Q418 | Financial Performance GROWTH GROWTH Amounts in $ M Q4 2018 Q3 2018 Q4 2017 QoQ YoY Revenue 176 171 3.0% 156 12.8% EBITDA (Before ESOP Cost) 28 30 -6.1% 26 6.9% EBITDA % 15.9% 17.5% -1.6% 16.8% -0.9% EBITDA (After ESOP Cost) 27 29 -6.2% 25 7.9% EBITDA % 15.2% 16.7% -1.5% 15.9% -0.7% PAT 17 24
Slide 6: Revenue Walk QoQ
Revenue Walk I QoQ In $ Mn 10.7 180.0 (2.7) 176.1 175.0 (2.3) 171.1 170.0 (0.6) 165.0 160.0 155.0 150.0 Q3 18 Forex Volume Calendar Mix Q4 18 (incl. Furlough) Decreases Increases www.hexaware.com | © Hexaware Technologies. All rights reserved. 6
Slide 7: Gross Margin Walk QoQ
Gross Margin Walk I QoQ 34.0 % of revenue 0.1 33.5 (0.2) 33.0 0.2 SG&A 26 bps QoQ (0.6) 32.3 Impact (0.6) (0.1) Rentals for new facilities 24 32.0 Other Cost 02 Total 26 31.0 Q3 18 Forex Volume Calendar Mix Salary Other Q4 18 (incl. Increments Changes Furlough) Decreases Increases www.hexaware.com |
Slide 8: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships Q4 18 vs Q4 17 Top 20 accounts FY 2017 FY 2018 CONTRIBUTION GROWTH TOP CLIENTS GROWTH QoQ QoQ $50+ 3 3 Top 5 Clients -0.1% 2.7% $30 - $50 0 0 $20 - $30 1 2 Top 10 Clients -0.6% 1.8% $10 - $20 6 4 Top 20 Clients -0.7% 1.8% Other Clients 0.7% 4.8% $5 - $10 7 18
Slide 9: NN Wins
NN Wins USD 116 million NN Deal wins in Q4-18 Operations transformation for a Nordic financial admin outsourcing and software company End to End IT outsourcing for a European shipping services company DevOps implementation for an American financial market company Agile application development & tran
Slide 10: Employee Metrics
Employee Metrics UTILIZATION EMPLOYEE ATTRITION Utilization maintained at steady rate Uptick in Attrition 17.0% 80.8% 80.9% 81.3% 16.1% 15.7% 79.7% 14.9% 14.4% 78.6% 78.9% 79.0% 78.7% 13.8% 13.7% 78.2% 13.1% 13.4% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2018 20
Slide 11: Q4 | Broad based growth across portfolio
Q4 18 | Broad based growth across portfolio APAC, IMS, Europe, 10.1% PS, 13.8% ADM, M&C, 15.2% BFS, 42.1% BPS, 17.5% 13.0% 35.1% 7.3% BIBA, 13.1% North ES, 9.5% America, 76.9% H&I, 19.1% DA, GTT, 9.9% 17.5% GROWTH GROWTH HORIZONTAL QoQ YoY GROWTH GROWTH VERTICAL ADM 0.5% 6.4% GROWTH GROWTH GEOGRAPHY
Slide 12: FY 2018 Business Update
FY 2018 Business Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 12
Slide 13: FY18 | Financial Performance
FY18 | Financial Performance Amounts in $ M FY 2018 FY 2017 GROWTH YoY Revenue 678 607 11.6% EBITDA (Before ESOP Cost) 112 106 5.4% EBITDA % 16.5% 17.5% -1.0% EBITDA (After ESOP Cost) 107 101 5.6% EBITDA % 15.7% 16.6% -0.9% PAT 85 77 10.2% PAT % 12.5% 12.7% -0.2% Basic EPS (INR) (Note below) 19.65 1
Slide 14: FY 18 | Broad based growth across portfolio
FY 18 | Broad based growth across portfolio APAC, IMS, Europe, 10.4% PS, 13.0% BPS, ADM, M&C, 15.3% 14.9% 12.9% BFS, 42.8% 35.9% BIBA, 7.2% 13.8% North ES, 10.1% America, H&I, 17.8% DA, 76.7% GTT, 11.1% 18.1% HORIZONTAL GROWTH VERTICAL GROWTH ADM 9.6% GEOGRAPHY GROWTH ES -1.3% BFS 9.8% DA 1.2% North
Slide 15: Guidance for 2019
Guidance for 2019 • Revenue: – FY Revenue growth of 12-14% organically – Majority of growth will happen in later part of the year (calendar impact, impact of Q4 deal ramp-up) • EBITDA: – In line with revenue growth • Dividend: – Inline with FY18, subject to M&A activity © Hexaware Technologies. All
Slide 16: Finance Update
Finance Update www.hexaware.com | © Hexaware Technologies. All rights reserved. 16
Slide 17: FY 2018 Performance
FY 2018 Performance USD M 176.1 Key Highlights 171.1 168.3 ❑ Q4 revenue of $ 176.1M 162.2 ▪ Q/Q growth of 3.0%, 3.4% in CC ▪ Y/Y growth of 12.8%, 14.2% in CC Q1'18 Q2'18 Q3'18 Q4'18 ❑ FY Revenue of $ 677.7M Q/Q 3.9% 3.8% 1.6% 3.0% Y/Y 12.1% 10.3% 11.1% 12.8% ▪ Y/Y growth of 11.6%, 11.5% in CC ❑ Q4 r
Slide 18: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates Average Rate Q4'18 Currency Pair Amount ($M) Q1'18 Q2'18 Q3'18 Q4'18 USDINR ($) 70.03 70.14 70.81 71.83 162.1 EURINR (€) 84.51 85.61 86.91 88.22 5.8 GBPINR (£) 94.18 95.37 97.16 98.70 11.3 Total ($M) 183.3 Note - 1. Hedges outstanding are full-term hedges 2. EUR
Slide 19: Forex Gain/(Loss)
Forex Gain/(Loss) USD M 4.3 • Q4’18 registered a forex loss of 3.3 $3.6M 3.0 1.9 • Forex Gains expected in next two quarters basis Q4 closing 0.2 0.4 exchange rate of INR 69.78 per USD are: Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19F Q2’19F ▪ Q1’19 ~ $0.15M ▪ Q2’19 ~ $0.40M (3.6) www.hexaware.com | © Hexaw
Slide 20: Balance Sheet & Other Updates
Balance Sheet & Other Updates Cash Balance ($M) DSO (days) 119.5 74 75 83 81 108.4 71 94.0 100.6 60 86.4 58 49 47 47 Billed 27 28 25 Unbilled 22 21 Total Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Dividend (INR per share) Effective Tax Rate (ETR) 2.5 2.5 2.5 25.2% 22.0% 19.7% 1.0 Q1
Slide 21: Thank you
Innovative Services Passionate Employees Thank you Delighted Customers © Hexaware Technologies. All rights reserved. | www.hexaware.com