Mastek Limited · NSE:MASTEK
Mastek — Equirus Capital Conference (September 2018)
24 slides from Mastek's conference presentation, Sep 18, 2018
Slide 1: Intimation: Institutional Investors/Analyst Group Meeting
Mastek Mastek L1m1ted, /1106/ 107, SDF-IV, Seepz, Andhen (El, Mumbai· .00 096, India. Tel •91 22 6695 2222 / 6722 4200 Fax +91 22 6695 1331 www.mastek.com Date: September 18, 2018 To, Listing Department Listing Department BSE Limited The National Stock Exchange oflodia Limited 25th Floor, Phiroze Je
Slide 2: Investor Presentation September 2018
Mastek�• Investor Presentation September 2018
Slide 3: Disclaimer
• Disclaimer Mastek-• • Th is presentation contains certain forward-looking statements concerning our future growth prospects which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertai
Slide 4: Agenda
• • Mastek-• Agenda • 1 Corporate Overview 2 Financial Performance 3 Way Forward - Vision 2020 Slide 3 © Mastek Ltd. 2018 Conf,dential Investor Presentation www.mastek.com
Slide 5: Corporate Overview
Mastek·• • • Corporate Overview Slide 4 0 Mastek Ltd 2018 - Confidential Investor Presentation www .mastek.com
Slide 6: Mastek at a Glance
• Mastek.-.• Mastek at a Glance Trusted Partner in Complex Digital and Agile Transformation Programmes 1982 US$130Mn 1 Ir:� 6 9% 29% 2% 170 Founded by4 Total Revenue Promoters CAGR: 24%2 '\- ., U K US Others Clients3, 6 +2,000 Headcount:4 � ... �BITDA �AGf f 84%2 US$19Mn 1 We:' !:;7 60% Digital Solu
Slide 7: Corporate Milestones
• Mastek� • Corporate Milestones • • Total revenues US$ 125 Mn+ • Market capitalisation US$ 200 Mn+ • Acquired TAISTech, US based leading digital commerce solution provider • Unveiled revised strategy- "Vision 2020" • Completed de merger; Mastek entrenched as pure play IT services Company • Acquired
Slide 8: End to End Service Offerings for Digital Transformation
Mastek·• • End to End Service Offerings for Digital Transformation • .A... App Development • Delivering robust, scalable & Business Intelligence • Providing competitive edge with [✓�� Assurance & Testing • Providing reliable testing services secure applications quickly under data warehousing, busine
Slide 9: Experienced Management Team
• Mastek� • Experienced Management Team • AbhishekSingh • HirenShah Maninder Kapoor Puri Group CFO CEO Americas SVP - Services Lines Group CPO • 30 years of • 20 years of • 34 years of • 27 years of • 30 years of • 24 years of - experience in experience in IT, experience in IT experience in IT exper
Slide 10: Marquee Clientele
• Mastek� • Marquee Clientele • "We had challenging timescales but the first work pack that has been completed was Select Client Universe 1 'CE ---- f . completed a day ahead of schedule and the defect count was very, very positive, in fact no defects were delivered within the solution" - UK based L
Slide 11: Awards & Recognitions
• Mastek·• Awards & Recognitions • Outstanding Contribution - IT 1 Recognised as an 'Agile Disruptor' in Public Sector 2 The Disrupted & The Disruptors � Top 10: UK PS SITS (!i) laaS:Turnover I 15% ukcto i.. - doub led 10% revenue growth/decline r \ s,i, llb" � I JSSI M.s,u,k Agile k a i n � "'S"' -
Slide 12: Financial Performance
Mastek· •• • Financial Performance Slide 11 Cl Mastek Ltd J018 - Conf1dent1�I Investor Presentation www.mastek.com
Slide 13: Growing Revenue and Profitability
Growing Revenue and Profitability (Figures in Rs Crore) Mastek· •• Total Revenue 1• 2 EBITDA & Margin 1 CAGR: 24%; CC: 32% CAGR: 84% 121 838 573 I 544 61 'l. R ■ ■ ■ 247 36 34 FY16 FY17 FY18 Ql FY19 FY16 FY17 FY18 Ql FY19 PAT & Margin 1 Order Backlog3 (Next 12 Months) CAGR: 126% CAGR: 60% 70 525 504
Slide 14: Diversifying Revenue Mix
• Mastek-• Diversifying Revenue Mix 1 • Geography Mix Vertical Mix I I Im nm ISM IMit I I •• II FY16 FY17 FY18 Ql FY19 FY16 IFY17 El I FY18 ■ II Ql FY19 ■ UK ■ US ■ Others ■ Government ■ Financial Services Retail ■ Others Services Mix (FYlS) Contract Type ■ App Development ■ Digital Commerce ■ Appli
Slide 15: Strong Financial Position
• Mastek� • Strong Financial Position 1 (FiguresinRsCrore) • Total Networth Cash Position 205 200 623 549 153 476 469 99 FY16 FY17 FY18 Ql FY19 FY16 FY17 FY18 Ql FY19 Return on Equity2A Return on Capital Employed3,4 17.7% 18.5% 15.3% 13.7% 9.1% 6.9% FY17 FY18 Ql FY19 FY17 FY18 Ql FY19 1Figures as pe
Slide 16: Consistent Client Connect & Productivity Improvement
Mastek�• • Consistent Client Connect & Productivity Improvement • Active Clients 1 (LTM) Revenue per Employee2 (US$) 70,747 70,141 159 170 166 88 I 61,176 62,117 FY16 FY17 FY18 Ql FY19 FY16 FY17 FY18 Ql FY19 Repeat Business3 Billable Utilisation4 -- 99.3% -- 98.6% 97.5% ----� 97� .. 80.9% ...- -----
Slide 17: Maximising Shareholder's Return
• Mastek· • Maximising Shareholder's Return • Total Shareholders' Return 1 (Rebased to 100 - LTM) --=- ------ 88% 55% C 13% -Mastek -Nifty -Nifty IT Index Dividend Per Share (Rs.) Payout2 120.0% 6.0 70.0% ., 3.5 40.� 2.5 FY16 FY17 FY18 FY16 FY17 FY18 1Share Prices from NSE, As of 11 September, 2018;
Slide 18: Peer Review
• Mastek-• Peer Review • 1 Particulars Mastek Hexaware Mindtree NIITTech Kaines Syntel Currency £ $ 2 Financials Total Revenue (Mn) 8,974 42,677 59,655 31,592 97 970 Total EBITDA (Mn) 1,299 7,570 9,807 5,757 15 272 Total EB/TOA Margin 14.5% 17.7% 16.4% 18.2% 15.7% 28.1% PAT (Mn) 778 5,510 6,066 3,43
Slide 19: Way Forward - Vision 2020
• Mastek�• • Way Forward - Vision 2020 Slide 18 © Mastek Ltd. 2018- Confidential l11vestor Pr esentatio11 www .rnastek.com
Slide 20: Strategic Plan - Vision 2020
-------------------------------------------- Strategic Plan - Vision 2020 . Mastek�• ✓ Inducted Professional ➔ Increase in Wallet Share in UK Pubic Sector Management Team ➔ Digital Transformation Strategy in US ✓ Opened US ➔ Cross Sell (Acquired TAISTech) ➔ Drive Operational Efficiency ✓ Basic Busin
Slide 21: What's Changing
Mastek· •• • What's Changing ! ! ! Business ✓ High focus on Digital and Agile transformation programs ✓ Among top 3 to deliver large complex Agile programs; Help UK Government cut cost & time of delivery ✓ Be a vendor of choice for Digital Transformation projects ✓ Continued investment in building d
Slide 22: Vision 2020: A Global Leader in Digital Transformation
• Mastek-• Vision 2020: A Global Leader in Digital Transformation • Be most respected, valued and trusted digital Customers partner; NextGen supplier of choice Be employer of choice for new entrants and have Employees industry leading employee engagement ratings Provide an attractive financial retur
Slide 23: Pillars of Performance Improvement
♦ Pillars of Performance Improvement Mastek�• • ,- - - ---------------- Continued Digital Pursuit in UK; Wallet Share Increase in UK Public Sector �----------------------------' ,- ----------- --------�- ' Monetize Non-Core Asset; I Digital Transformation : Offerings in US; Capability : Aggressive I
Slide 24: End of Presentation / About Mastek
• Mastek�� END OF PRESENTATION About Mastek Mastek is a publicly held (NSE: MASTEK; BSE: 523704) leading IT player with global operations providing enterprise solutions to government and enterprise organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek