Slide 1: 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 2: Investor Presentation Q4 2020
Investor Presentation Q4 2020 5/14/2020 2
Slide 3: Our Numbers Tell the Story: Consistency and Transformation
Our Numbers Tell the Story: Consistency and Transformation Direct Core revenue +5.0% QoQ; 18.0% YoY in Q4 FY20 on a reported basis and 2.6% QoQ and 13.6% YoY in Constant Currency 320 CQGR +3.1% 318 320 $ Mn Revenue YoY - CC Q4'20 319.9 11.1% 305 CAGR +13.0% 297 300 FY'20 1239.6 11.7% 292 283 280 276
Slide 4: We Continue to Grow in Focus Areas
We Continue to Grow in Focus Areas FY’20 Y-o-Y CAGR BCM Vertical Split 1,240 Wealth Management & Brokerage 1,119 989 339 17% 18% Consumer Banking 291 24.6% 29.4% Emerging Industries 244 3% 17% 196 191 ITCE 144 141 9% 6% Insurance 125 130 25.9% 12.2% 7.8% Corporate Banking 507 563 11% 9% Mortgage BCM
Slide 5: Our Direct Business has been Consistently Delivering Strong Growth
Our Direct Business has been Consistently Delivering Strong Growth Direct International Direct Core (DC) CAGR 15.3% Revenue 763 865 Revenue CQGR 3.6% 183 187 691 175 166 170 15.4% YoY CC growth in FY20 160 151 146 138 142 133 127 119 120 119 121 FY’18 FY’19 FY’20 YoY 7.5% 10.4% 13.3% Accelerated gro
Slide 6: Direct International: Transformation in Client Metrics
Direct International: Transformation in Client Metrics 76 Client Pyramid • Continuous improvement in client pyramid 64 driven by expansion of wallet share in large 61 31 clients & consistent new client wins 27 • Added 1 client in >$100M bucket and 2 25 clients in >$75M bucket FY-18 to FY-20 • Added
Slide 7: DXC Relationship: On Track
DXC Relationship: On Track • Continuous transformation in relationship… • >75% of revenue from Service transformation and DMX in Q4’20 compared to nil in FY-17 • MRC applicable only on DXC revenue • DXC constitutes about 88% of DXC/HP revenue for Q4’20 • Approx. $300Mn. revenue pending to be consume
Slide 8: Strong Earnings Growth and Optimal Cash Strategy to Maximize Shareholder Value
Strong Earnings Growth and Optimal Cash Strategy to Maximize Shareholder Value Operating profit growth CAGR EPS growth CAGR 18.9* 20.3% 29.4% 15.8 14.7 14.0 14.4 14.3 14.2 13.4 12.3 11.1 10.2 9.6 9.9 9.5 8.3 8.5 8.8 8.3 8.8 9.1 7.6 7.7 7.4 7.4 Q1’15 Q2’15 Q3’15Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’
Slide 9: Strategic Choices Impacting Profit Pool & Our Assessment of Progress Made
Strategic Choices Impacting Profit Pool & Our Assessment of Progress Made Business Mix Pricing • Growth primarily driven from • Sustained pricing improvement, Direct Core which has high EBIT esp in Apps. contribution • Increase in BPS realizations Supply Chain and Pyramid • Strong improvement in Pyr
Slide 10: Core Investment Thesis: FY20 Execution Update
Core Investment Thesis: FY20 Execution Update Strong growth of 15.4% YoY in CC 1. Accelerate Direct Core : Consistently outgrow the market NCA revenue grew 73% in FY20 • Farming Strategic Accounts Continued momentum in Deal wins: TCV wins • New Client Acquisition (NCA) of $715M YoY growth of 16% • C
Slide 11: The New Abnormal
The New Abnormal
Slide 12: Shifts Will Happen on Many Fronts
Shifts Will Happen on Many Fronts Macro-economics Geopolitics • Limited access to capital • Protectionism Regulation Shifts will Human Behavior • New Privacy Laws Happen on • Immune Certification Many Fronts Technology Industry Dynamics • Contactless everything • Supply Chain Disruptions Source: boa
Slide 13: What Will Impact IT Industry…
What Will Impact IT Industry… Restructuring of Extended travel Optimized work from Increased focus on Increased Need for intensive client budgets & restrictions, even home setups, hygiene of people governmental and reskilling and Prioritization of within a country beyond typical office and places se
Slide 14: Voice of Customer
Voice of Customer Move with speed on strategic programs; clock fast forwarded The world changed suddenly, we need to change faster – not if or when - now Never waste a Good Crisis Take advantage of current situation to drive change in organizations and push reforms Not all programs have same strateg
Slide 15: How we Responded to the Crisis
How we Responded to the Crisis • 95% % WFH coverage quickly enabled through WFH Business Continuity for Customers and Employee Safety • Crisis Management working group actively engaged in daily activities Listened to the Voice to the Customer • Increased customer communication – security & employee
Slide 16: Fundamentals of our Business Didn't Change…we are Well Positioned to Thrive
Fundamentals of our Business Didn’t Change…we are Well Positioned to Thrive Agility & Speed is the new currency • Size will help maneuver faster Before Corona important, not just After Corona Differentiate, differentiate, differentiate • Strength of capabilities • Accelerate digital investments in c
Slide 17: Q&A
Q&A
Slide 18: Industry Analysts are recognizing our strengths in focus areas
Industry Analysts are recognizing our strengths in focus areas GARTNER FORRESTER MAGIC QUADRANT NICHE PLAYER 2019 NOW Application TECH Modernization, Life Insurance Policy 2019 Administration System FORRESTER WAVE CONTENDER 2019 FORRESTER WAVE CONTENDER 2018 Midsize Agile Software Special API Strate