Slide 1: Exchange filing cover letter: presentation to analysts on Q3 results
• I. I-'EXAWARE Date: 23rd October, 2019 To, To, The Manager Listing, The Manager Listing, Bombay Stock Exchange Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Fort, Bandra-Kurla Complex Mumbai - 400 023 Bandra (E), Mum
Slide 2: Investor Update Q3 2019
Investor Update Q3 2019 234 October 2019 © Hexaware Technologies. All rights reserved. | www.hexawa
Slide 3: Safe Harbor Statement
Safe Harbor Statement Fi Certain statements on this presentation concerning our future growth prospects a forward-looking statements, which involve a number of risks, and uncertainties that coul cause actual results to differ materially from those in such forward-looking statements. Th risks and unc
Slide 4: Use of Non-GAAP Financials
Use of Non-GAAP Financials HEXA Hexaware has included non-GAAP financial measures in this presentation to suppleme Hexaware’s consolidated financial statements presented on a GAAP basis. These no GAAP financial measures may have limitations as analytical tools, and these measure should not be consid
Slide 5: Business Update
Q3 2019 Business Update
Slide 6: Key Highlights
Key Highlights +, HEXA'It I~ Q3 Revenue $ 210.5M • Q/Q 11.7%; 12.3% in CC • YIY growth of 23.1%; 24.4% in CC ~ Q3 EBITDA* 16.1% • Q3 EBITDA of $ 33.8M • Q/Q Growth 10.8%; Y/Y Growth 18.3% A Q3 EPS ~ 6.16 • Q/Q EPS growth of 21.3% • Non-GAAP EPS of ~ 6.46, Q/Q growth of 16.4% NN Wins .,.,. Closing He
Slide 7: Q3 Financial Performance
Q3 19 I Financial Performance HEXA~ +, Amounts in US$ M Q32019 Q22019 Q32018 Revenue * I 210.5 I 188.5 11.7% 171.1 23.1% EBITDA (before ESOP cost) I 34.7 I 31.1 11.5% 29.9 16.0% EBITDA 0/0 I 16.5%. I 16.5% 0.0% I I 17.50/0 -1.0% EBITDA (after ESOP cost) I 33.8 30.5 10.8% 28.6 18.3% I I EBITDA 0/0 I
Slide 8: Revenue Walk QoQ
Revenue Walk I QoQ fi HEXA'A $M 215 21.5 210.5 210 205 200 195 190 185 180 I (;. 188.5 I (1.1 ) 2.8 - ( 2.9) 1.8 175 170 Q219 Forex Calendar Mix Bill Rates Volume Q319 C Increases • Decreases -I". I I I_I.I_ •. I-~ ...-•• www.hexaware.coml© Hexaware Technologies. All rights reserve,
Slide 9: EBITDA Walk QoQ
EBITDA Walk I QoQ HEXAV +~ % a/revenue GM improvement 154 bps SG&A 18.0 decline 0.7 155 bps 17.5 •~ 0.9 I 17.0 I ~ 0.7 ------, ~ ~. I 16.5 ~. Ir 16.2 ( 0.9) 16.1 16.0 ( 1.6) ( 0.3) 15.5 15.0 14.5 0219 Forex Calendar Utilization Salary Mix Bill Rates H1BVisa: SG&A 0319 Increments * EBIDTA (post ESOP
Slide 10: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation HEXA~ +~ Q3 '19 EPS* Amounts in $ M (INR) Reported (GAAP numbers) 31.6 5.5 26.1 . ,I 6.16 5.08 I: 5.80 I l Q3 '19 GAAPEPS Change 1.08 0.36 % Change 21.3% 6.2% Non-GAAP Adjustments Amortization of intangibles 1.6 0.4 1.1 0.27 N PV of deferred payments 0.2 0.0 0.1 0.03
Slide 11: Improved Depth of Customer Relationships
Improved Depth of Customer Relationships HEXA\A +~ Client Contribution for Q3 19 and Q3 18 Q32018 Q32019 Top Clients $50+ " CD CD Top 5 Clients 35.2% 42.1% -6.9% $30 - $50 CV CV Top 10 Clients 44.4% 52.2% -7.8% $20 - $30 CD CD CD CD Client Contribution for Q3 19 and Q2 19 @ Top Clients ® 37.3% -2.1%
Slide 12: NN Wins
NN Wins HEXAVt +, USD 28 million NN Deal wins in Q3-19 f) Application Development for a leading online real estate marketplace f) Infrastructure Transformation for a leading Inflight Catering and Logistics company f) Application Support and Maintenance for a leading Insurance company in the UK f) Qu
Slide 13: Employee Metrics
Em ployee Metrics HEXA~ +~ I UTILIZATION· _m~ C---EMPLOYEE-ATT-RITION mm J Utilization at planned levels Attrition stabilizing 80.9% 81.3% 18.2% 80.7% 13.7% 13.1% 13.4% 14.4% 03 04 01 02 03 04 01 02 03 03 04 01 02 03 04 01 02 03 2017 2017 2018 2018 2018 2018 2019 2019 2019 2017 2017 2018 2018 2018 2
Slide 14: Q3 Broad based growth across portfolio
Q3 19 I Broad based growth across portfolio HEXA~ +~ APAC HTPS 1 BFS M&C 38.6% ADM 17.1% 41.8% BIBA North America H&I 75.4% 19.3% 10.1% 15.7% 9.2% GEOGRAPHY North America Europe ..• - ~ ..... - GROWTH QoQ 9.7% 32.3% - . - GROWTH YoY 20.0% 52.9% .. VERTICAL BFS ~ • JI'I GTT GROWTH QoQ 8.4% 12.4% '" G
Slide 15: Guidance update
Guidance update HEXAVt +~ Full Year FY 19 revenue growth of 17-18%*. Range of outcome dependent upon two primary factors: • Furloughs in 04 • Extent of top 3 client impact * Guidance based on September closing exchange rates. Takes into consideretion r- 50bps headwind from forex vs last guidance . I
Slide 16: Finance Update
Finance Update
Slide 17: Revenue
Revenue ~ HEXA\ US$M Key Highlights o Q3'19 revenue of $ 210.5 M • Q/Qgrowthof11.7%,12.3%inCC 03'18 04'18 01'19 02'19 03'19 • YIY growth of23.1%, 24.4% in CC QoQ 1.6% 3.0% 2.2% 4.7% 11.7% YoY 11.1% 12.8% 10.9% 12.0% 23.1% o Q3'19 revenue of INR 14,813 M • Q/Q growth of 13.2% and YIY growth of 22.5~
Slide 18: Outstanding Hedge Position and Rates
Outstanding Hedge Position and Rates HEXA~ +~ Outstanding Hedge Position I Avg Rate Q3 19 1 i Currency Pair Amount Q4'18 Q1 19 1 Q2 19 1 Q3 19 1 (Mn.) USDINR ($) 71.83 72.93 73.54 74.15 -197.40 I EURNR (€) 88.22 89.08 89.57 89.72 6.00 GBPNR (£) 98.70 99.11 99.27 98.73 ___ 13.0~ Total ($) I ; I 220.0
Slide 19: Forex Gain/(Loss)
Forex Gain/{Loss) HEXA\A +~ [--U5D M ·1 • Q3'19 registered a forex gain of $ 2.8 M 3.3 • Forex Gains expected in next twe quarters basis 03 closing exchange rate of INR 70.88 per USD are: 0.8 0.3 • 04' 19 - $ 0.3 M • 01'20-$0.8M (3.6) 03'18 04'18 Q1'19 02'19 Q3'19 Q4'19 (F) Q1'20 (F) ·I_·1 •.',. • _
Slide 20: Balance Sheet & Other Updates
Balance Sheet & Other Updates Cash Balance ($M) DSO (days) HEXAVt +~ 125.9 --- - 83 81 74 77 76 58 60 54 ------...._:1.___- __ 51 -Billed -Unbillt -Total 25 23 23 25 21 03'18 04'18 01'19 02'19 03'19 03'18 04'18 01'19 02'19 03'19 'Cash balance after payment towards acquisition Dividend (INR per share
Slide 21: Thank you
iz ee FHEXAWARE Innovative Services Passionate Employees “haul you www.hexaware.com Delighted Customers } : |