Slide 1: Continued Focus on Micro in an uncertain Macro
Continued Focus on Micro in an uncertain Macro Mphasis Earnings Q4 and FY 2023 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2023 Proprietary and confidential information I 4/27/2023 I 1 I
Slide 2: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements (the “Forward Statements”) and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could cause actual resul
Slide 3: Strategic Spend Priorities
Strategic Spend Priorities © Mphasis 2023 Proprietary and confidential information I 4/27/2023 I 3 I
Slide 4: Our Overall Growth: A Snapshot
Our Overall Growth: A Snapshot FY23 Gross revenue grew 9.7% in Constant Currency Growth with larger scale in Direct FY23 Direct revenue grew 12.0% in Constant Currency 6.8% 13.8% 17.3% 34.7% YoY # → 11.0% 12.0% YoY # → 9.8% 14.3% 11.8% 4.9% 21.3% 9.7% YoY # EX DR* → 10.9% 15.9% 14.7% 7.5% 40.4% 19.6
Slide 5: Direct Channel: The Duality of FY23
Direct Channel: The Duality of FY23 Direct excluding DR (Qtr) Direct excluding DR (FY) Direct including DR (FY) YoY # → 13.1% 43.4% 6.8% YoY # → 7.5% 40.4% 19.6% YoY # → 17.3% 34.7% 12.0% 1,440 1,612 362 342 CAGR # CAGR # CAGR # 1,462 1,226 1,084 241 872 210 807 920 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 F
Slide 6: Growth by Segment: An Annual View
Growth by Segment: An Annual View Revenue in USD Mn Direct Direct Direct 1,718 1,718 YoY* 1,718 YoY* 1,593 YoY* 1,593 YoY* 1,593 YoY* 1,309 1,309 1,309 11.5% 12.6% 19.3% 23.6% 1,001 1,174 1,261 1,405 1,462 1,612 12.0% APPS 779 Direct 1,084 Americas 1,008 5.2% 7.2% -16.0% -16.0% BPO 339 401 332 DXC E
Slide 7: Growth by Segment: A Quarterly View
Growth by Segment: A Quarterly View Revenue in USD Mn Direct Direct Direct 431 429 431 429 YoY* 431 430 YoY* 412 YoY* 412 YoY* 412 YoY* -5.1% -3.7% 4.6% 6.9% APPS 282 298 Americas 351 351 292 Direct 401 402 333 390 -1.8% 1.1% 2.7% -32.1% -32.1% BPO 100 77 68 DXC EMEA 46 43 44 17.9% 11.5% 18.9% Other
Slide 8: Growth by Vertical: An Annual View
Growth by Vertical: An Annual View 1,718 Direct Direct ex Direct 3Y 1,593 YoY * YoY * DR YoY * CAGR* Revenue in USD Mn 1,309 9.0% 9.2% 24.1% 21.7% 921 856 Banking & Financial Services 673 1.1% 1.0% 1.0% 3.3% 142 144 7.9% 17.4% 17.4% 56.7% Insurance 128 223 211 TMT 175 9.3% 12.0% 12.0% 16.3% 209 224
Slide 9: Sources of Growth
Sources of Growth Growth in Revenue (Direct ex DR) CAGR* Overall Direct YoY growth of 12% • Direct growth ex DR 19.6% YoY Top 10 Grew 8.6% YoY led by top accounts Accounts despite pockets of weakness in FY21 FY22 FY23 mortgage and BFSI Revenue in USD Mn at average USD/INR rate for the respective per
Slide 10: Direct: TCV Remains Robust
Direct: TCV Remains Robust Direct TCV Wins Direct Revenue / TCV Correlation CAGR 1,800 Direct Revenue (TTM in US$ Mn) 1,428 1,600 1,313 309 Mn 4% Others 1,112 9% L&T 1,400 15% TMT Insurance 1,200 R2 =0.8042 736 Traditional 1,000 70% BFS 800 New Gen 600 350 500 650 800 950 1,100 1,250 1,400 FY20 FY21
Slide 11: Direct: Improving Client Mining and Large-deal Metric
Direct: Improving Client Mining and Large-deal Metric Client Pyramid Robust large deal wins (>$20M TCV) Client Additions 112 # of cumulative deal • 10 Large deals in the past 1 year wins since Q1’18 • Two deal wins >$100 Mn in FY23 Category YoY QoQ $200M + 1 - LTM avg 31 29 79 56 61 $150M + 1 - deal
Slide 12: Strong Pipeline Growth Driven by Cloud & Transformation Deals
Strong Pipeline Growth Driven by Cloud & Transformation Deals Industry Distribution Solution Archetype Distribution YoY QoQ +35% +9% 13% 9% 10% New engines of Data 12% +52% growth kicking in 15% 17% Modernization 16% 64% 11% 15% 11% Value Stream Acceleration 13% Non BFSI 57% 6%8% Security 11% 13% 12
Slide 13: Financial Metrics: Reporting a Healthy Growth
Financial Metrics: Reporting a Healthy Growth Revenue Growth Operating Profit Growth YoY* + 9.7% YoY + 6.7% 1,718 CAGR* +15.4% CAGR +11.4% 1,593 262 245 1,309 211 FY21 FY22 FY23 FY21 FY22 FY23 Gross Revenue in USD Mn at average USD/INR rate for respective periods * Revenue growth in constant currenc
Slide 14: FY23: In Summary
FY23: In Summary ▪ Rounded off a mixed FY23 marked by duality in business segments • Strong double-digit growth in Direct (ex DR) at 19.6%; FY23 Direct growth at 12% YoY, despite pronounced mortgage weakness, delayed conversions in H2FY23 ▪ Market-share gains sustained in BFS our anchor vertical whi
Slide 15: FY24: An Outlook
FY24: An Outlook ▪ Focused on Micro in an uncertain Macro ▪ Strong pipeline entering FY24 led by cloud, transformation and consolidation ▪ Q1FY24 softness in BFS segment ▪ Growth in Direct likely to be back-ended with strong sequential growth starting Q2FY24; YoY growth to increase through Q4FY24 •
Slide 16: Q&A
Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis 2023 Proprietary and confidential information I 4/27/2023 I 16 I
Slide 17: Analyst Recognitions: Q4 FY23
Analyst Recognitions: Q4 FY23 MAJOR LEADER CONTENDER Healthcare Cloud-based Core Group Life Policy Administration Systems (PAS) Administration Platforms PEAK Matrix® Products PEAK Matrix® Assessment 2023 – Assessment 2023 North America HFS HORIZON MAJOR CONTENDER HFS Horizons: The Best Service Provi