Slide 1: Amdocs Supplemental Investor Presentation
Amdocs Supplemental Investor Presentation This presentation contains supplemental information and background for Amdocs investors on the global business operations and compliance infrastructure built to support Amdocs’ customers April 8, 2021
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, including non-GAAP operating margin, free cash flow, normalized free cash flow and non-GAAP net income. Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Althoug
Slide 4: Agenda
Agenda Recap: Amdocs overview Strong financial foundation Legal entities & auditors Cash position Q&A 4
Slide 5: Recap: Amdocs overview
Recap: Amdocs overview 5
Slide 6: Amdocs Is the Leading Provider of Software and Services to the Global Communications and Media Industry
Amdocs Is the Leading Provider of Software and Services to the Global Communications and Media Industry Supporting the industry’s ever-evolving business needs globally with constant innovation & unrivaled execution capabilities $4.2 billion 3 billion FY20 Revenues People touched by our platforms 26,
Slide 7: Amdocs is a Leading Cloud IP-Based, Software Technology and Services Company
Amdocs is a Leading Cloud IP-Based, Software Technology and Services Company Well positioned to continue to benefit from major secular trends: 5G technology adoption, journey to the cloud and digital transformation Software offering Amdocs’ unique, product-led, ▪ Rich, integrated, modular, mission-c
Slide 8: Amdocs Leverages Internal Global Assets to Support its Customers
Amdocs Leverages Internal Global Assets to Support its Customers Rich portfolio of software products and services is delivered via global supply assets, which is comprised of 155 legal entities in 85 countries1 Software Netherlands offering Canada Russia USA Cyprus Deployments UK Israel services Mex
Slide 9: Industry Analyst Perspectives on Amdocs Leadership
Industry Analyst Perspectives on Amdocs Leadership1 Leader #1 #1 Magic Quadrant for IT Global Monetization Global Service Design Global BSS Telecoms IT Services for CSPs Platforms Market & Orchestration Market Share Application Services Share Market Share Leader #1 Digital Transformation Quality Eng
Slide 10: Long-Lasting & Expanding Relationships Across Major Global Customers
Long-Lasting & Expanding Relationships Across Major Global Customers Expanding our global footprint by entering new regions and winning new customers Canada Amdocs continues to benefit from strong momentum with key customers such as AT&T and T-Mobile USA AT&T T-Mobile USA • AT&T selected Amdocs’ 5G
Slide 11: Strong financial foundation
Strong financial foundation 11
Slide 12: Strong Financial Profile Provides Consistent Margin Performance Over Time
Strong Financial Profile Provides Consistent Margin Performance Over Time Operating Margin Performance (Non-GAAP) Our consistent margin performance over time is a function of: 17.5% 17.5% 17.5% 17.4% • 12-month backlog visibility, 17.2% 17.2% which over the years averages 17.0% 17.0% 17.0% 17.3% 17.
Slide 13: Proven History of Converting Consistent Margin Performance into Strong Free Cash Flow
Amdocs Has a Proven History of Converting Consistent Margin Performance into Strong Free Cash Flow Normalized FCF converts roughly on par with the consolidated non-GAAP net income over the long-term which can serve as a cross-check for Amdocs’ margin profile Normalized FCF of $527M, exceeding initia
Slide 14: Business Performance is Best Represented by Consolidated Group Financials
Business Performance is Best Represented by Consolidated Group Financials Consolidated group financials cannot be established through the aggregation of local statutory reports of specific subsidiaries Illustrative Inter-Company Price Allocation Group consolidated results as filed with the SEC Custo
Slide 15: Legal entities & auditors
Legal entities & auditors 15
Slide 16: Amdocs Optimizes its Legal Entities Structure to Support its Global Business
Amdocs Optimizes its Legal Entities Structure to Support its Global Business ▪ In order to run business or operational activity in a certain country it is typically optimal to Legal establish a legal entity in that country structure supports ▪ We operate in 85 countries business ▪ With M&A many more
Slide 17: Amdocs Group and Subsidiary External Auditors
Amdocs Group and Subsidiary External Auditors Local Subsidiary Audits Group Financials Filed with the SEC • Amdocs engages with local external auditors for local • Amdocs’ consolidated financial statements, as filed with compliance purposes only the SEC, are audited in accordance with US GAAP • None
Slide 18: Cash position
Cash position 18
Slide 19: Strong Balance Sheet and Disciplined Capital Policy Framework
Amdocs Maintains a Strong Balance Sheet and a Disciplined Capital Policy Framework Additional Sources of Liquidity Beyond Guiding Principles Cash Generated by the Business • Maintain a strong balance sheet and investment grade rating • June 2020 10-year bond raised $650M at an • Ensure continued cus
Slide 20: Proven Track Record of Returning Capital to Shareholders
Proven Track Record of Returning Capital to Shareholders Disciplined capital allocation 129% 105% 91% 100% 89% February 2, 2021 Amdocs 1Q’2021 Earnings Call “Regarding our capital allocations plans $553 $546 for the rest of fiscal 2021, we expect to $522 $525 return cash to shareholders in the form
Slide 21: Q&A
Q&A 21
Slide 22: Thank you
Thank you
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Figures in $M FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Revenue 2,984 3,178 3,247 3,346 3,564 3,644 3,718 3,867 3,975 4,087 4,169 GAAP Operating income 410 404 442 482 496 516 483 517 428 570 595 Amortization of purchased intangible assets