Slide 1: Investor Presentation Q1 2020
Investor Presentation Q1 2020
Slide 2: Mphasis at a Glance
Mphasis at a Glance Applied Technology Company • Incorporated in 1998 • 52.3% owned by Blackstone*, a Global Private Equity firm • Integrated services offerings in Application, Infrastructure & BPS UK Netherlands • Global footprint: 60 sales and delivery centers across 19 countries Canada Poland • H
Slide 3: Mphasis Turn Around Story
Mphasis Turn Around Story 300 297 292 290 283 +3.3% 280 276 270 269 264 260 260 256 250 -1.3% 252 250 240 242 240 235 237 228 229 231 230 227 225 225 224 224 222 220 210 200 20 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ’13 ’14* ’15 ’15 ’15 ’15 ’16 ’16 ’16 ’16 ’17 ’17 ’17 ’
Slide 4: Core Investment Thesis
Core Investment Thesis 1. Accelerate Direct Core : Consistently outgrow the market • Farming Strategic Accounts • New Client Acquisition • Continue momentum in BX channel 2. Strategic Partnership with DXC/HP : Continuous transformation in relationship • Applications Partnership Growth • Expand Verti
Slide 5: 1. Direct Core
1. DIRECT CORE
Slide 6: Direct Core Business has been consistently delivering strong growth
Direct Core Business has been consistently delivering strong growth 170 166 +3.8% 160 Strong YoY CC Growth of 17.2% in Q1 FY20 151 146 142 138 133 127 119 120 119 121 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3FY19 Q4 FY19 Q1 FY20 Direct Core Revenue in $ Mn Co
Slide 7: Direct Core growth fueled by New Gen Services
Direct Core growth fueled by New Gen Services New Gen areas dominate new wins Significant revenue growth in New Gen Services Direct TCV wins ($ MN) Direct Core revenue ($ MN) % 36.3% New Gen 47.6% 623 616 CAGR 539 551 479 45.9% New Gen 32.1% 39.7% 366 483 457 New Gen 222 Traditional 67.9% 60.3% 54.1
Slide 8: 2. DXC – Transforming Partnership
2. DXC – TRANSFORMING PARTNERSHIP
Slide 9: DXC-Mphasis relationship transformation
DXC-Mphasis relationship transformation Predominantly IS, in Americas From Supplier to Partner FY16 FY17 Traditional Outsourcing FY18 Managed Services Apps to Cloud solution partner working with DXC Client Facing teams Strategic Solutions Partner : Apps to Cloud Solution Partnership: From Traditiona
Slide 10: Relationship Transformation delivering results
Relationship Transformation delivering results Revenue Trend over last 17 qtrs. in USD M 5.1% 82.3 82.8 84.4 77.9 71.4 73.5 67.4 -3.1% 62.9 63.4 65.5 59.6 55.4 54.7 53.5 53.8 54.0 52.5 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Business Shif
Slide 11: How We Achieve This
HOW WE ACHIEVE THIS
Slide 12: Mphasis is preparing for a vastly different future
Mphasis is preparing for a vastly different future Past Today / Future • Application IDEs • DevOps • Dev ops tools • Cloud Sandbox • QA Automation tools • Containers 1. Next Gen Portfolio / IP • Auto Code generators • Microservices • Decision taken by business and IT • Decisions mostly taken by IT •
Slide 13: Next Gen Portfolio: Bringing the T back into IT
1. Next Gen Portfolio: “Bringing the T back into IT” Next Gen Solutions bring together deep domain expertise and cutting edge technology Deep Domain Expertise Verticals • Wealth Management Long tenured preferred relationship Consumer Banking with marquee customers Healthcare Payments Mortgage Insura
Slide 14: Next Gen Portfolio: Teaming for success – Tribe/Squad Model
1. Next Gen Portfolio: Teaming for success – Tribe/Squad Model Go-To-Market teams, organized around Tribe / Squad Model, bring agility and innovation to our clients Modernization Portfolio Deal Delivery • Design Thinking Workshops Dev Squad Squad Next Gen App Portfolio Deal Delivery Dev Squad Squad
Slide 15: Next Gen Portfolio: Making Digital Transformation Real for Customers
1. Next Gen Portfolio: Making Digital Transformation Real for Customers Accelerated legacy modernization by migrating applications to the cloud for >>> a Fortune 50 company Modernization Tribe 20% 35% 1yr TCO reduced Services Cost Cloud Timeline reduced reduced Building a cloud based high transactio
Slide 16: IP/Capability: Next Gen Offerings powered by NextStep Platform
2. IP/Capability: Next Gen Offerings powered by NextStep™ Platform Focused effort in building IP in Cognitive, Cloud and Service Transformation Cognitive Cloud Service Transformation Cognitive CoE / DeepInsights Cloud CoE / Cloud Maturity assessment tool: Infragenie / ADM Virtual Assistant Cognitive
Slide 17: Transforming our talent
3. Transforming our talent Talent Next Next Gen HR Platform On-Demand Learning Platform Advanced Skill Mapping Effective Communication Hyper Personalized Online & Offline Training Catalogue • Talent Next is the catalyst to up-skilling and cross-skilling our workforce on next-gen skills/technologies.
Slide 18: Value Creation for Shareholders
VALUE CREATION FOR SHAREHOLDERS
Slide 19: Strong Earnings Growth and Optimal Cash Strategy to maximize shareholder value
Strong Earnings Growth and Optimal Cash Strategy to maximize shareholder value Improving operating margin Strong growth in EPS 15.5%- 16.1% 17% 15.1% EPS after exceptional items (INR) 14.2 13.3% 14.6% 56.1 12.8% 37.7 42.7 32.1 30.1 FY15 FY16 FY17 FY18 FY19 FY20 G FY15 FY16 FY17 FY18 FY19 Q1 FY20 YoY
Slide 20: Core Investment Thesis: Q1 FY20 Execution Update
Core Investment Thesis : Q1 FY20 Execution Update 1. Accelerate Direct Core : Consistently outgrow the market Strong growth of 17.2% YoY in Constant • Farming Strategic Accounts Currency; NCA grew 104% and BX grew 55% • New Client Acquisition (NCA) Continued momentum in Deal wins: $151M • Continue m
Slide 21: Appendix
APPENDIX
Slide 22: Strong Leadership Team
Strong Leadership Team Nitin Rakesh CEO Dinesh 10 yrs in Mphasis Sundar Joined in October 12 yrs in Mphasis and in ExCo 2017 Elango R and in ExCo Venugopal Subramanian • President, Mphasis Digital & Direct Core GTM • President, Global Delivery • President, DXC/HP Business Unit 9 yrs in Mphasis Srika
Slide 23: Experienced Board
Experienced Board Davinder Singh Brar Nitin Rakesh N Kumar Chairman, Independent Director CEO and Director Independent Director Vice Chairman of the Sanmar Group, a Promoter of GVK Biosciences CEO and Director at Mphasis multinational conglomerate Formerly Director of the Reserve Bank of Previously
Slide 24: Industry Analysts are recognizing our strengths in focus areas
Industry Analysts are recognizing our strengths in focus areas DXC Partner Advisory Council Awards, 2018 Based on 60+ mentions by Analyst firms in there research over the last 15 months © Mphasis 2019 Proprietary and confidential information 7/31/2019 24