Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q2 FY22 Earnings Presentation
24 slides from Happiest Minds Technologies's earnings presentation, Oct 27, 2021
Slide 1: Earnings Presentation filing letter to stock exchanges
Happiest Minds Technologies Limited (formerly known as Happiest Minds Technologies Pvt Ltd) Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bangalore-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investo
Slide 2: Investor Presentation & Fact sheet: Q2 FY 22
Investor Presentation & Fact sheet: Q2 FY 22 October 2021
Slide 3: Forward-looking statements disclaimer
This presentation may contain certain forward-looking statements, which involves risks and uncertainties that could cause our future results to differ materially from those in such forward- looking statements. The COVID-19 pandemic could decrease our customers’ technology spend, delaying prospective
Slide 4: Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company
Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company IPO Digital In September 2020 Digital Agile Active clients RoCE1 • Completed 10 years of 50 Fortune2000 / Forbes200 / existence in August Billion $ corporations 2021 87% of repeat business RoE •
Slide 5: Technology capabilities and industry verticals
IoT Blockchain DevOps & RPA Cloud Software Defined Networking / NFV BPM & Integration Big Data & Adv. Analytics Security BFSI Edutech Hi-Tech Mfg/Industrial Retail Travel & Hosp. 4 www.happiestminds.com
Slide 6: Our Mission
Learning Excellence Integrity Social Responsibility Mindful Sharing Our Mission Happiest People . Happiest Customers Happiest Minds is the first Indian IT firm to be The Mindful IT Company Be Recognized for Design Happiest Accelerate Build & Sustain Be the Thought Leadership in our Be known for our
Slide 7: Creating Digital Capital
Business Agile Transformation Organization Agile Business CREATING MINDFULLY DIGITAL AGILE CAPITAL Platformize and Agile Modernize Delivery Reimagining Engineering & Customer Experience Operational Excellence 6 www.happiestminds.com
Slide 8: Customer wins and engagements
With a Fortune 100 For a multi-billion-dollar For a publicly traded global For one of the world's Healthcare provider, supply chain industry leader in Information largest brokers of fine and Happiest Minds has leader, Happiest Minds is Security company, Happiest decorative art, jewelry and helping t
Slide 9: Awards
AWARDS Ranked Among India’s Top 50 Best Asiamoney Asia’s Outstanding Companies Poll 2021 Workplaces For Women 2021 by • Most Outstanding Company in India under Small / Great Place to Work® Institute Mid-Caps category • Most Outstanding IPO in India www.happiestminds.com 8
Slide 10: Operational and Financial Metrics — Q2 FY22
A . . De happiest minds = The Mindful IT Company Born Digital . Born Agile Operational and Financial Metrics — Q2 FY22 Yy 7 " " Y ~YZMM Ht Pb veaavmmmveeanraman enn XS
Slide 11: Q2 FY22 financial summary
A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q2 FY 22 Q1 FY 22 QoQ Q2 FY 21 YoY H1 FY 22 H1 FY21 YoY Revenues ($'000) 35,809 33,152 8.0% 24,712 44.9% 68,961 48,156 43.2% Revenues 26,453 24,461 8.1% 18,284 44.7% 50,914 35,986 41.5% Other Income 959 926 3.6% 507 89.2% 1,885 1,504 25.3
Slide 12: Digital and Agile % of Revenue
Digital Agile % of Revenue % of Revenue 97.2% 96.9% 97.1% 93.9% 94.2% 96.8% 96.6% 96.6% 96.7% 92.8% 92.8% 93.4% 93.2% 96.3% 96.2% 90.2% 87.9% 71.1% FY 19 FY 20 FY 21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 FY 19 FY 20 FY 21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 11 www.happiestminds.com
Slide 13: Revenue Growth and Revenue Share
Revenue - Growth Revenue Share Total Income (₹ Lakhs) 3.4% 79,765 21.0% 71,423 60,181 46.2% 48,912 27,412 25,387 22,374 18,699 18,791 20,129 29.4% PES DBS IMSS Oth Inc FY18 FY19 FY20 FY21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 12 www.happiestminds.com
Slide 14: EBITDA and High FCF conversion
EBITDA High FCF1 conversion 99.6 (₹ Lakhs) Margin % (₹ Lakhs) % % 27.0% 21,476 21,573 99.6 % 15.8% 11,266 11,312 25.6 26.1 % 26.3 % 98.8 99.3 96.2 11.0% 29.7 % % 99.5 % % % 99.2 % 25.6 26.3 99.8 % % 7,012 6,549 99.8 % 6,569 6,743 6,628 % 6,615 % 5,969 5,883 5,920 5,853 4,782 4,939 4,772 4,931 1.6% 8
Slide 15: Headcount, Utilization and Voluntary Attrition
Happiest Minds & Utilization 79.5% 81.6% 82.6% 82.1% 79.7% 76.9% 78.7% 77.3% 74.9% 68.4% 3,538 3,796 3,228 2,885 3,228 2,462 2,666 2,658 2,721 2,253 FY18 FY19 FY20 FY21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 25.2% 18.7% 18.5% 16.2% 95.3%
Slide 16: Revenue Model, Concentration and Million Dollar Customers
Revenue Model Q2 22 Model Geography Digital Revenue1 Vertical1 3.3% 11.6% 24.4% 10.0% 9.8% 23.2% 8.3% 13.0% 12.5% 42.8% 6.6% 13.5% 11.1% 12.2% 13.3% 65.9% 75.6% 10.6% 19.6% 13.0% T&M FP Digital Infra / Cloud SAAS Edu Tech Hitech Retail / CPG Americas Europe India ROW Security Analytics / AI TME BFSI
Slide 17: Onsite/Offshore and Average Annual Revenue per Customer
Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 783 737 751 683 659 634 615 615 502 471 78.6% 78.0% 77.5% 79.0% 78.1% 81.0% 81.0% 83.9% 85.0% 84.0% 21.4% 22.0% 22.5% 21.0% 21.9% 19.0% 19.0% 16.1% 15.0% 16.0% FY18 FY19 FY20 FY21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 FY18
Slide 18: Customer industry group and digital service offerings
FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY21 FY22Q1 FY22Q2 Customer Industry group Edutech 18.0% 21.3% 21.3% 27.0% 27.0% 24.9% 24.1% 25.6% 23.4% 23.2% Hitech 24.6% 21.0% 21.0% 20.5% 19.5% 20.2% 13.5% 18.2% 14.2% 13.5% BFSI 17.9% 18.2% 17.5% 17.4% 16.3% 17.4% 14.8% 16.4% 13.4% 13.3% Travel, Media
Slide 19: Customer location, million dollar customers and revenue mix
FY18 FY19 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY 21 FY22 Q1 FY22 Q2 Location of external customer USA 73.5% 75.5% 77.5% 77.3% 77.3% 72.2% 68.4% 73.4% 67.8% 65.9% India 11.7% 11.9% 11.9% 10.9% 10.9% 13.4% 11.7% 11.8% 12.4% 13.0% Europe 11.4% 9.5% 7.2% 9.8% 9.2% 10.6% 11.6% 10.4% 10.4% 11.1% ROW 3.4%
Slide 20: Headcount, utilization, DSO, EPS and return ratios
FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY21 FY22Q1 FY22Q2 Happiest Minds Onsite 105 132 123 124 133 145 166 166 180 182 Offshore 2,148 2,330 2,543 2,534 2,588 2,740 3,062 3,062 3,358 3,614 Total 2,253 2,462 2,666 2,658 2,721 2,885 3,228 3,228 3,538 3,796 Happiest Minds by delivery centres Onsite
Slide 21: Revenue by Business Units
(All figures in ₹ Lakhs) FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY21 FY22Q1 FY22Q2 Revenue by Business Units Infrastructure Management & Security Services 9,862 20.2% 12,943 21.5% 15,361 21.5% 3,641 19.5% 3,959 21.1% 4,334 21.5% 4,487 20.1% 16,421 20.6% 5,251 20.7% 5,747 21.0% Digital Business S
Slide 22: Summary Profit & Loss statement
Summary Profit & Loss statement (All figures in ₹ Lak hs) FY 18 FY 19 FY 20 FY 21 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 FY 22 Q1 FY 22 Q2 Income Operating revenue 46,289 59,036 69,821 17,702 18,284 19,284 22,071 77,341 24,461 26,453 Other income 2,623 1,145 1,602 997 507 845 303 2,424 926 959 Total in
Slide 23: Condensed Balance Sheet
Condensed Balance Sheet (All figures in ₹ Lak hs ) 31.03.2018 31.03.2019 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 Assets Non-current Assets Property, plant and equipment 264 214 93 77 60 72 69 83 86 Goodwill 2,961 1,736 610 610 611 611 7,644 7,756 7,742 Financial
Slide 24: investors@happiestminds.com
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Happiest Minds Technologies — Q2 FY22 Earnings Presentation on 6ix