Slide 1: Continuing Focus on Execution & Expanding AI adoption
Continuing Focus on Execution & Expanding AI adoption Nitin Rakesh Aravind Viswanathan CEO & Managing Director CFO October 2024 www.mphasis.com © Mphasis 2024 Proprietary and confidential information I 10/17/2024 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: There is a lot happening…
There is a lot happening… European Fed cut Some stability in client spends Up to 26% AI isn’t replacing Central Bank interest rate with sentiments showing a slight boost in GDP jobs of someone too eases who understands by 50 bps uptick from AI by another 25 bps AI 2030 Increasing consensus of econom
Slide 4: Value Creation
Tech Disrupting Tech… Savings-led TransformationTM enabled by our platforms and partnerships is powering… The IT and Business Services Industry is The Technology Arbitrage Era at an inflection point of jumping to a (AI Driven) Smarter Operations new S-curve of value creation Generative AI InfraGenie
Slide 5: Expanding AI Adoption: 35% of our Pipeline is AI-led
Expanding AI Adoption: 35% of our Pipeline is AI-led Archetypes Driven Pipeline +23% 11% +43% 15% Data 13% Modernization 13% 17% BFS Value Stream Acceleration 17% 5% (DevOps) +11% Security 10% 17% Next Ops 15% 11% Platforms & Protocols (XaaP) 7% Non-BFS 10% Experience 8% Agile IT Ops 18% 13% Q2FY24
Slide 6: Execution Focused Amidst Stable Deal Activity
Execution Focused Amidst Stable Deal Activity TCV Won ($M) Focused on Large Deal Wins (>$20M TCV) 10% 17% 68 11% 11% 57 6% 319 # of 13% cumulative 12% 241 deal wins 40 207 177 since Q1’18 28 17% 18% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY22 Q2FY23 Q2FY24 Q2FY25 15% • TCV for the quarter at $ 207 M • H1 TCV
Slide 7: Q2FY25 Performance by Segment: Quarterly View
Q2FY25 Performance by Segment: Quarterly View 410 421 410 421 398 398 Direct Direct Direct Direct YoY YoY QoQ QoQ APPS 281 293 300 7.5% 2.2% Americas 332 340 8.4% 2.4% 316 BPO 67 67 69 2.6% 3.5% EMEA 48 45 46 -5.9% -1.3% ROW 35 33 35 ITO 51 51 52 3.2% 1.3% 1.9% 8.6% Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q
Slide 8: Q2 FY25 Performance by Vertical
Q2 FY25 Performance by Vertical 410 421 398 YoY QoQ Direct YoY Direct QoQ 7.2% 3.0% 8.0% 3.3% 195 202 Banking & Financial Services 188 Insurance 43 46 47 9.5% 1.1% 9.9% 1.1% TMT 69 66 69 0.8% 5.4% 2.2% 4.8% Logistics & Transportation 53 56 55 3.7% -1.8% 4.0% -1.9% Others 46 46 47 3.2% 1.6% 3.4% 1.6%
Slide 9: Client Pyramid Performance: Direct
Client Pyramid Performance: Direct Client Additions 140 Category YoY QoQ 135 115 Top Client Metrics QoQ $200M + - - $100M + - - • Top 1-10 grew 2.1% $150M + (1) (1) $75M + - - • Top 11-30 grew 11.2% $50M + (1) - $20M + (2) - $10M + 1 (3) Top Client Metrics LTM $5M + 5 3 • Top 1-10 declined 7.9% YoY
Slide 10: Financial Metrics Quarterly Performance
Financial Metrics Quarterly Performance Revenue trend Operating Margin Trend +2.4% 421 410 398 15.5% 15.0% 15.4% Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Gross Revenue in $M at average USD/INR rate for respective periods Pre- acquisition # Revenue growth in constant currency EPS Trend Cash Flow Gen
Slide 11: Q2FY25 in Summary: Executing to Steady and Sustainable Growth
Q2FY25 in Summary: Executing to Steady and Sustainable Growth • Executing with focus on micro amidst a busy macro environment • Continuing to gain from our Tech-led, Account-focused strategy • Stability in all key verticals and geos, continuing trend of green shoots across our client portfolio • Str
Slide 12: Outlook: Continuing Focus on Execution
Outlook: Continuing Focus on Execution • Continue to execute in an environment steadily moving in the right direction - Focus on the micro as gradual improvement plays out • Continue to see recovery in BFS - Signs of uptick visible in mortgage • Expect to be above industry growth, gaining from tech-
Slide 13: Link to financial data for the past three years
Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html www.mphasis.com © Mphasis 2024 Proprietary and confidential information I 10/17/2024 I 13 I
Slide 14: Analyst Recognition: Q2 FY25
Analyst Recognition: Q2 FY25 Mphasis wins Global Workforce LD Award by HRAI for outstanding performance in empowering its workforce with Learning Development initiatives Mphasis Silverline’s CalendarAnything won Demo Jam Sessionat Southeast Dreamin’ Conference 2024 Mphasis wins Global Workforce Mpha