Slide 1: Outcome of the Board Meeting, October 21, 2019
Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621 Date: October 21, 2019 BSE Limited The National Stock Exchange of India Ltd. Cor
Slide 2: Independent Auditor's Review Report on Consolidated Results
Deloitte Chartered Accountants 706, 'B' Wing, 7"' Floor ICC Trade Tower Haskins & Sells LLP Senapati Bapat Road Pune-411 016 Maharashtra, India Tel: +91 20 6624 4600 Fax: +91 20 6624 4605 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTOR
Slide 3: Statement of Unaudited Consolidated Results
Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharad i, Plot# 4, MIOC, Off Nagar Road, Pune • 411014, India Statement of Unaudited Consolidated Results for the Quarter and Half Year ended 30th September, 2019 (Rs. In Lakhs Ouarb!r Ended Ha If Year Ended Ye.ar Ended Partk::ul
Slide 4: Statement of Assets & Liabilities
Statement of Assets & Liabil (Rs. in Lakhs) A As at 30- Sep-| As at 31- Mar- eoeeuiee 2019 2019 Assets Non-Current Assets (a) Property, Plant and Equipment 10,323 10,267 (b) Right of use assets 25,997 - (c) Capital work-in-progress 861 556 (d) Goodwill 61,154 60,310 (e) Other Intangible assets 22,35
Slide 5: Consolidated Segment wise Revenue & Results
Consolidated Segment wise Revenue & Results for the quarter and half year ended 30th September, 2019 (Rs. in Lakhs)| Quarter Ended Half Year Ended Year Ended Particulars B0-Sep-2019 | 30-Jun-2019 | 30-Sep-2018 | s0-Sep-2019 | 30-Sep-2018 | 31-Mar-2019 Unaudited Unaudited Unaudited Unaudited Unaudite
Slide 6: Notes to Consolidated Results
Notes : 1 These unaudited results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” ("Ind AS 34%), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there
Slide 7: Annexure I: Consolidated Statement of Cash Flows
Annexure I Zensar Technologies Limited Unaudited Consolidated Statement of Cash Flows (Rs. in Lakhs) Half Year Ended Year Ended Particulars 30-Sep-19 | 30-Sep-18 31-Mar-19 Unaudited Unaudited Audited Cash flow from operating activities Profit before taxation 22,151 24,837 44,538 Adjustments for: Dep
Slide 8: Independent Auditor's Review Report on Standalone Results
D | itt Chartered Accountants, 706, ‘B' Wing, 7" Floor e oil e ICC Trade Tewer °° Si if Road Haskins & Sells LLP pune anncie. Maharashtra, India Tel: +91 20 6624 4600 Fax: +91 20 6624 4605 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS
Slide 9: Statement of Unaudited Standalone Results
Zensar Technologies Limited Registered Office : Zensar Knowledge Park, Kharadi, Plot # 4, MIDC, Off Nagar Road, Pune - 411014, India Statement of Unaudited Standalone Results for the Quarter and Half Year ended 30th September, 2019 (Rs. in Lakhs)| Quarter &rdad Tialf Year Ended Year Ended Particular
Slide 10: Statement of Assets & Liabilities (Standalone)
Statement of Assets & Liabilities (Rs. in Lakhs) ‘As at 30- Sep-| As at 31- Mar- Particulars cee pts JAssets INon-Current Assets (a) Property, Plant and Equipment 7,767 8,125 (b) Right of use assets 16,394 - (c) Capital work-in-progress 782 31 (4) Goodwill 8,402 8,402 ((e) Other Intangible assets 3,
Slide 11: Notes to Standalone Results
Notes: 1 These unaudited results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereu
Slide 12: Unaudited Standalone Statement of Cash Flows
Zensar Technologies Limited Unaudited Standalone Statement of Cash Flows Annexure I (Rs. in Lakhs) Half Year Ended Year Ended Particulars 30-Sep-19 30-Sep-18 31-Mar-19 Unaudited Unaudited Audited Cash flow from operating activities Profit before taxation 14,332 18,723 33,351 Adjustments for: Depreci
Slide 13: Press Release
Press Release Zensar reports 12.8% YoY revenue growth in Q2FY20 Digital revenues now at 50.1% of total revenues Pune, India, October 21, 2019: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital tr
Slide 14: Awards and Recognitions; Q2 FY20 Revenue and profitability snapshot
Awards and Recognitions in Q2FY20 • Zensar Recognized for Excellence in Leveraging HR Technology and Excellence in HR Analytics at the annual SHRM HR Excellence Awards 2019 • Zensar wins recognition in the category of ‘Best Leadership Development Program’ and ‘Best OD Intervention’ at the L&D World
Slide 15: About Zensar
About Zensar (www.zensar.com) Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credibl
Slide 16: Zensar reports 12.8% YoY revenue growth in Q2FY20
Zensar reports 12.8% YoY revenue growth in Q2FY20 Digital revenues now at 50.1% of total revenues Pune, India, October 21, 2019: Zensar Technologies, a leading digital solutions and technology services company that specialises in partnering with global organisations on their Digital transformation j
Slide 17: Awards and Recognitions in Q2FY20
Awards and Recognitions in Q2FY20 • Zensar Recognized for Excellence in Leveraging HR Technology and Excellence in HR Analytics at the annual SHRM HR Excellence Awards 2019 • Zensar wins recognition in the category of ‘Best Leadership Development Program’ and ‘Best OD Intervention’ at the L&D World
Slide 18: Performance Highlights by Industry
Hitech and Manufacturing 0.6% Hitech 1.1% Mfg. (0.9%) Retail and Consumer Services (7.7%) Industry Financial Services 15.2% Insurance 17.1% Banking 9.4% Emerging (45.5%) Performance Highlights
Slide 19: Income Statement (USD Mn)
Income Statement (USD Mn) Income Statement (USD Mn) Q2 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Operating revenue 135.0 557.2 153.3 152.3 Sequential Growth 2.4% 3.1% -0.7% Year-Over-Year Growth 18.4% 19.5% 16.4% 12.8% Cost of revenue 95.3 394.6 108.2 107.9 Gross profit 39.6 162.6 45.1 44.3 Gross profit % of re
Slide 20: Income Statement (INR Mn)
Income Statement (INR Mn) Income Statement (INR Mn) Q2 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Operating revenue 9,465 38,988 10,661 10,723 Sequential Growth 7.2% 1.8% 0.6% Year-Over-Year Growth 29.2% 29.7% 20.8% 13.3% Cost of revenue 6,686 27,626 7,524 7,600 Gross profit 2,779 11,362 3,137 3,123 Gross profit
Slide 21: Other Metrics: Revenue by Service, Industry, Geography
Other Metrics Q2 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Revenue by Service Offering Digital & Application Services (DAS) 84.9% 84.4% 82.8% 85.6% Digital Services 40.1% 40.3% 41.4% 44.2% Core Application Services 44.8% 44.1% 41.4% 41.3% Cloud and Infrastructure Services (CIS) 15.1% 15.6% 17.2% 14.4% Cloud, Di
Slide 22: Other Metrics: Constant Currency
Other Metrics Q2 FY19 FY 19 Q1 FY 20 Q2 FY 20 Constant Currency Operating revenue (Constant Currency mn) 137.3 561.1 154.0 153.7 Sequential Growth 4.2% 20.3% 3.6% 0.3% Year-Over-Year Growth 19.3% 20.3% 18.8% 14.1% Constant Currency Growth By Service Offering (QoQ %) Digital & Application Services (D
Slide 23: Other Metrics: Client Data and Headcount
Other Metrics Q2 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Client Data Number of million-dollar Clients (LTM Revenue) 1 Million dollar + 94 90 91 93 5 Million dollar + 20 19 20 23 10 Million dollar + 7 9 9 9 20 Million dollar + 2 2 2 2 Revenue from top clients Revenue- top 5 clients 36.8% 36.5% 38.0% 37.6% Reve
Slide 24: Other Metrics: Exchange Rates and Cash
Other Metrics Q2 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Exchange Rates Rupee Dollar Rate Period Closing Rate 72.5 69.2 69.0 70.9 Period Average Rate 70.1 69.9 69.5 70.4 Rupee Euro Rate Period Closing Rate 84.0 77.7 78.2 77.3 Period Average Rate 81.6 80.9 78.5 78.3 Rupee GBP Rate Period Closing Rate 94.6 90.5
Slide 25: Other Metrics: Debt, Hedges, Capex, Shareholding
Other Metrics Q2 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Summary of Debt Debt (USD mn) Short-term debt 31.2 23.0 26.0 19.3 Long-term debt 20.0 20.0 20.0 21.9 Total 51.2 43.0 46.0 41.2 Outstanding Hedges USD Value 88.7 115.2 108.9 126.0 Avg. Rate/ INR 70.4 72.0 71.6 71.8 GBP Value 12.4 15.8 13.3 19.0 Avg. Rate
Slide 26: About Zensar
About Zensar (www.zensar.com) Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credibl
Slide 27: Analyst Presentation, Q2 FY20
Zensar Technologies Analyst Presentation, Q2 FY20 Quarter Ending Sept 30, 2019 www.zensar.com | © Zensar Technologies 2019
Slide 28: Safe Harbor
Safe Harbor This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures
Slide 29: Company Overview
Company Overview • Part of $3 B RPG Group • Portfolio Company of the $40 B APAX Group Zensar Technologies records • Among 5 global tech companies to be listed $152.3 Mn in Q2FY20 on a major global stock exchange (BSE) for ($596.1 Mn LTM) 55+ years • 50.1% Digital Revenue, (25.2% YoY Growth) www.zens
Slide 30: Zensar Business Update
Zensar Business Update www.zensar.com | © Zensar Technologies 2019 4
Slide 31: Q2 FY20: Brief Snapshot
Q2 FY20 : Brief Snapshot DIGITAL REVENUE TOP 20 CLIENTS QoQ 2.6% l YoY 25.2% 4 Q CQGR 5.7% 95.4 M 4Q CQGR 5.8% REVENUE GM PAT 50.1% $44.3 Million $11.3 Million 93.9M $152.3 Million 48.5% 45.2% 76.4 M QoQ -0.7% QoQ -1.7% QoQ 0.2% YoY 12.8% YoY 11.9% YoY -16.4% Q2 FY 19 Q1 FY 20 Q2 FY 20 Q2 FY 19 Q1 F
Slide 32: Q2 FY20: Key Achievements
Q2 FY20 : Key Achievements Continued New Win Momentum Digital Updates Strengthening of brand ‘Zensar’ Zensar recognised as a Major Multiple deal wins at our largest Contender in Digital Interactive Continued growth in digital client boosting Hitech Growth Services PEAK Matrix™ revenues – 50.1% (grow
Slide 33: Trending in Key Financial Updates
Trending in Key Financial Updates (US $) REVENUE AFRICA REGION 16.2 FINANCIAL SERVICES SECTOR MOVEMENT GROWTH 13.4 GROWTH 41.5 153.3 12.6 12.0 152.3 12.0 36.7 148.7 34.6 141.8 34.2 135.0 31.7 3.1% 6.4% 7.0% CQGR CQGR CQGR Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 Q2 FY 20 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY
Slide 34: Q2 FY20 Financials
Q2 FY20 Financials Q2 FY20 Growth Particulars Q-o-Q Y-o-Y USD Mn INR Cr USD INR CC USD INR CC Revenue $ 152.3 ₹ 1072.3 (0.7%) 0.6% 0.3% 12.8% 13.3% 14.1% EBITDA $ 21.3 ₹ 150.0 (2.3%) (1.0%) 17.2% 17.7% EBIT $ 15.8 ₹ 111.5 (3.1%) (1.8%) 5.7% 6.2% PAT $ 11.3 ₹ 79.9 0.2% 1.5% (16.4%) (16.1%) INR/Share
Slide 35: Scale winning momentum
@ Scale winning momentum Key deal win in a major Oracle Application for luxury retail company in leading US-based medical UK device company $120 Mn+ Application Support for an investment services Application & development for Hi-tech firm global company TCV wins in Q2 FY 20 Multi million dollar deal
Slide 36: Q2 FY20: Key Business Highlights
Q2 FY20: Key Business Highlights ❑ Pipeline quality and Large Deals – Healthy pipeline of more than 1Bn bolstered by a few multi million dollar deals – 25% of the deals being fought are in the later stages of engagement – Large Deals ratio - 52% deals being fought with a TCV over $5m across Zensar ❑
Slide 37: Overall Digital Growth 2.6% QoQ, 25.2% YoY
Q2 FY20 : Overall Digital Growth 2.6% QoQ, 25.2% YoY Lines of Services USD Mn -0.7% QoQ $152.3 • Overall Digital is now 50.1% of the Total 12.8% YoY Business App and Digital Cloud & Infra Services Services • Led by 24.4% YoY growth in Digital Services, ADS Services grew 13.7% 2.6% QoQ -16.5% QoQ YoY
Slide 38: Q2 FY20: Region & Vertical Split
Q2 FY20 : Region & Vertical Split Percentage of Revenue In USD Region Split Vertical Split 10.6% 100.0% Revenue 15.3% 17.2% 52.7% 27.3% 2.8% Retail & Consumer Hi-Tech & Fin. Services Emerging 74.0% Services Manufacturing US Europe Africa Percentage of Revenue In USD 39.7% 13.0% 20.8% 6.4% Hi-Tech Mf
Slide 39: Q2 FY20: Top Clients Revenue
Q2 FY20 : Top Clients Revenue Million Dollar+ Clients Q2 FY19 Q1 FY20 Q2 FY20 20 Mn Dollar+ 2 2 2 10 Mn Dollar+ 7 9 9 5 Mn Dollar+ 20 20 23 1 Mn Dollar+ 94 91 93 Revenue Mix QoQ & YoY Growth Q2 FY19 Q1 FY20 Q2 FY20 QoQ YoY Top 5 Clients 36.8% 38.0% 37.6% -1.8% 15.4% Top 10 Clients 45.4% 49.2% 48.0%
Slide 40: Q2 FY20: Headcount Details
Q2 FY20 : Headcount Details HEAD COUNT 10,219 Net Headcount added in YoY: +1081 9748 10,166 457 461 632 +1081 the last year 9456 385 656 1587 9138 359 659 1641 372 668 7539 1585 Highest Ever Women % in 590 1470 1515 7199 7412 30.6% our workforce Zensarians 6914 6706 SA UK Employee Attrition US IND 1
Slide 41: Analyst Coverage & Mentions
Analyst Coverage & Mentions Awards 2019 Future of Learning & Challenger in Digital Masters Avasant Development “Best Learning Strategy RadarView™ 2019 of the Year” Award Zensar mentioned as Niche in Gartner Challenger in the Avasant Blockchain Magic Quadrant for Oracle Cloud 2019 Working Mother & Av
Slide 42: Zensar is now Living AI
Zensar is now Living AI Zensar now enables Business Transformation through Artificial Intelligence In FY 17, we announced our Return on Digital journey by Living Digital. Now, by FY 20, we commit to make 100% of all Zensar’s Digital platforms AI Enabled. We call this “Living AI” Recognitions for our
Slide 43: Stock Price and Shareholding Pattern
Stock Price and Shareholding Pattern Share Price in Rs. Total Volume 350 14,00,000 300 12,00,000 250 10,00,000 200 8,00,000 150 6,00,000 100 4,00,000 50 2,00,000 - - Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Equity Share Information: Shareholding Patt
Slide 44: RPG Group Overview
Analyst Presentation for the quarter ending September 30, 2019 RPG Group Overview www.zensar.com | © Zensar Technologies 2019 18
Slide 45: RPG Group Overview: Financial Performance
Analyst Coverage & Mentions FY15-19 CAGR: Gross Total Income (Rs Cr.) EBITDA PAT FY15-19 EBITDA 9.8% PAT 10.4% CAGR: 5.6% 2,423 23,833 2,218 2,014 2,045 21,766 19,183 19,271 20,052 1,668 1,031 1,099 879 980 739 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Net Worth ROE ROCE Market Cap 9,000.00
Slide 46: Thank You
Thank You Thanks www.zensar.com | © Zensar Technologies 2019
Slide 47: Disclosure Pursuant to Regulation 30(1)
_,, ZenSar Registered Office : Zensar Technologies ltd., Zensar Knowledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India Tel +91(20) 66074000, 27004000 Fax +91 (20) 66057888 CIN: L72200PN1963PLC012621 Disclosure pursuant to Regulation 30(1) of the SEBI (Listing Obligations and Di
Slide 48: Transfer of Business by Slump Sale
_,,,,,, ZenSar Registered Office : Zensar Technologies Ltd., Zensar Knowledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India Tel +91(20) 66074000, 27004000 Fax +91 (20) 66057888 CIN: L72200PN1963PLC012621 Transfer of identified business by Zensar Technologies IM, Inc together wit
Slide 49: Slump Sale Disclosure: Rationale and Consideration
ZenSar Registered Office : Zensar Technologies Ltd., Zensar Knowledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India Tel +91(20) 66074000, 27004000 Fax +91 (20) 66057888 CIN: L72200PN1963PLC012621 on area of business of the entity(ies); TT and ITES industry d. Rationale Simplify
Slide 50: Distribution of Stock of Aquila Technology Corp
_,.,,. ZenSar Registered Office: Zensar Technologies Ltd., Zensar Knowledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India Tel +91(20) 66074000, 27004000 Fax +91 (20) 66057888 CIN: L72200PN1963PLC012621 Distribution of the Stock of Aquila Technology Corp by PSI Holding Group Inc