Slide 1: Analyst Meet cover letter to National Stock Exchange of India
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 11 May 2018 Manager-Listing National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), MUMBAI -400 051 Dear Sir, Sub: Analyst Meet Further to our letter dated 9 May 2018 on the captioned subject, please find e
Slide 2: DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 11-05-2018 | © Mphasis 2018 Proprietary and confidential i…
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 11-05-2018 | © Mphasis 2018 Proprietary and confidential information
Slide 3: CEO Presentation
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 CEO Presentation 11-05-2018 | © Mphasis 2018 Proprietary and confidential information
Slide 4: Agenda
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 AGENDA 1. Mphasis Performance 2. Market View 3. Mphasis in Context 4. Financial Metrics 5. Looking Ahead 6. Demystifying Digital 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 3
Slide 5: Mphasis Performance
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 1 Mphasis Performance 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 4
Slide 6: Mphasis Turnaround Story
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Mphasis Turnaround Story Company Revenue in USD $M (gross) 270 265.3 264.1 265 259.7 260 256.0 255 +4.5% 251.6 249.8 -1.4% 250 245 242.3 239.5 240 237.0 234.5 235 230.9 230 228.2 229.0 226.5 225.3 224.5 224.1 225 223.5 221.5 220 215 210 5 Q3
Slide 7: Next Generation Technology Services
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Industry: Next Generation Technology Services Revenue: $ 1.01 Bn RoW Market Cap: ~$2.5 Bn Europe 79% Headcount: ~ 23,000 11% BX Company: since 09/2016 10% North Ownership: Public Company; BX Ownership 60% America Marquee Client Base: - Large
Slide 8: Market View
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 2 Market View 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 7
Slide 9: Yogi Berra
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Yogi Berra 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 8
Slide 10: Linear v/s Exponential thinking
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Linear v/s Exponential thinking Exponential growth is deceptive, than explosive With a 1 meter stride, If your stride is 1 meter, 30 linear 30 exponential steps will take you steps will take you 30 meters 26 times around the world! from the
Slide 11: Devices
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Devices Explosion in computing devices - 15 billion devices incorporate computing Autonomous Devices Virtual Home Automation Reality Devices of the Personal Mobility Cloud & Virtual Wearable Computing future Consumer Electronics Implants Hum
Slide 12: The Pace of Change is extremely fast
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 The Pace of Change is extremely fast Source: Forbes, CBinsights 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 11
Slide 13: 2017 - This is What Happens in an Internet Minute
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 2017 - This is What Happens in an Internet Minute • Incredible scale of content creation that happens on the web, led by e-commerce, social media, email. • In a social media universe there are no barriers to entry and almost infinite amounts
Slide 14: Disruption is an Opportunity
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Disruption is an Opportunity "50% of manufacturers in "DNA scissors can "Peer 2 Peer lending to "Automated driving the CPG, LS will be using edit out genetic material touch $1 Tr. over the next would cut accidents by 3D printing causing canc
Slide 15: 52% of the Fortune 500 companies
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 52% of the Fortune 500 companies have gone bankrupt, been acquired or ceased to exist since 2000 due to digital disruption Source: EY, IMD Switzerland 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 14
Slide 16: Mphasis in Context
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3 Mphasis in Context 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 15
Slide 17: Performance Highlights in context of the Industry
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Performance Highlights in context of the Industry Performance vs Index1 Last Four Quarters Industry Benchmark Total Returns to Shareholders in last 12 months (%)2 4.8% 4.4% +83.8% 3.7% 3.7% 3.9% 3.1% 2.7% 1.9% +40.1% 1.7% 1.6% 1.3% 1.2% +13.
Slide 18: Key to success
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Key to success 1▪ Strong Management team backed by an experienced Board 2▪ Optimal Corporate Strategy for market and clear path to targeted future positioning 3▪ Focus on Execution Excellence across all levels 11-05-2018 | © Mphasis 2018 Pro
Slide 19: 1. Strong Management
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 1. Strong Management 1• Infused new talent across levels ▪ Executive Committee ▪ Senior Leader positions ▪ Regional Sr Leaders in Focus Markets 2• Strong Board 3• Support from BX Ecosystem 11-05-2018 | © Mphasis 2018 Proprietary and confiden
Slide 20: 2. Corporate Strategy - Bring the T back into IT
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 2. Corporate Strategy - Bring the “T” back into IT ‘Inverted T’ GTM Plays Customer Segments Vertical Play Front 2 Back Transformation (F2B) 1. Strategic Customers Wealth Management Emerging Verticals… Health Insurance Retail Banking Service
Slide 21: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution ▪ HP-DXC Transformation ▪ Strong TCV Growth DECLINING REVENUE ▪ Blackstone Portfolio Execution ▪ Strategic Account Planning ▪ Europe Growth Focus ▪ Margins Expansion Program 11-05-2018 | © Mphasis 2018 Prop
Slide 22: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution Quarterly Revenue ($ Mn) ▪ HP-DXC Transformation ▪ Strong TCV Growth ▪ Blackstone Portfolio Execution ▪ Strategic Account Planning Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '15 '15 '15 '16 '16 '16 '16 '1
Slide 23: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution ▪ HP-DXC Transformation ▪ Strong TCV Growth ▪ Blackstone Portfolio Execution ▪ Strategic Account Planning ▪ Europe Growth Focus 1. Proactive sales approach ▪ Margins Expansion Program 11-05-2018 | © Mphasis
Slide 24: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution TCV Wins in Direct International ($M) ▪ HP-DXC Transformation +51.0% ▪ Strong TCV Growth 551 ▪ Blackstone Portfolio Execution 365 ▪ Strategic Account Planning ▪ Europe Growth Focus FY17 FY17 FY18 FY18 1. Pr
Slide 25: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution 4 Engines-of-Growth ▪ HP-DXC Transformation ▪ Strong TCV Growth ▪ Blackstone Portfolio Execution ▪ Strategic Account Planning ▪ Europe Growth Focus Win-Win partnership allowing significant cost reduction or
Slide 26: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution Direct Core - % NewGen vs Traditional Revenue ▪ HP-DXC Transformation HIGH END SERVICES 57% ▪ Strong TCV Growth Trad. 70% ▪ Blackstone Portfolio Execution 43% NewGen 30% ▪ Strategic Account Planning Q1 Q2 Q
Slide 27: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution Direct Core - NewGen Revenue Growth ▪ HP-DXC Transformation HIGH % Compounded Quarterly Growth Rate END SERVICES +8.2% 61.4 ▪ Strong TCV Growth 51.2 56.6 40.5 40.7 44.4 35.3 37.5 ▪ Blackstone Portfolio Exec
Slide 28: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution ▪ HP-DXC Transformation ▪ Strong TCV Growth ▪ Blackstone Portfolio Execution ▪ Strategic Account Planning ▪ Europe Growth Focus 1. Restructured Regional Leadership 2. Increased focus on New Client Acquisiti
Slide 29: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution Europe Revenue Growth ▪ HP-DXC Transformation YoY+34% QoQ +18% ▪ Strong TCV Growth 1,873 1,586 ▪ Blackstone Portfolio Execution 1,402 ▪ Strategic Account Planning Q4 FY17 Q3 FY18 Q4 FY18 ▪ Europe Growth Foc
Slide 30: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution ▪ HP-DXC Transformation Here are the improved margins you have asked for, Tom. ▪ Strong TCV Growth ▪ Blackstone Portfolio Execution ▪ Strategic Account Planning ▪ Europe Growth Focus ▪ Margins Expansion Pro
Slide 31: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution EBIT Highest EBIT in 20 Qs ▪ HP-DXC Transformation 16.8% 15.1% ▪ Strong TCV Growth 14.6% 13.3% 13.5% ▪ Blackstone Portfolio Execution FY15 FY16 FY17 FY18 Q4 FY18 ▪ Strategic Account Planning 1. Restructure
Slide 32: 3. Execution, Execution, Execution
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 3. Execution, Execution, Execution % of Fixed Price Projects ▪ HP-DXC Transformation 26% 25% 23% ▪ Strong TCV Growth 21% 21% 20% 20% 19% ▪ Blackstone Portfolio Execution Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ▪ Strategic Account Planning FY17 FY17 FY17 FY1
Slide 33: Financial Metrics
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 4 Financial Metrics 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 32
Slide 34: Strong Cash generation and Optimal cash utilization strategy
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Strong Cash generation and Optimal cash utilization strategy 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 33
Slide 35: Road Ahead
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 5 Road Ahead 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 34
Slide 36: Road ahead
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Road ahead 11. Direct Channel • Investments in large deal wins, capability build-up, sales and marketing efforts • Focus on “one Mphasis” approach • Expanding our European footprint • Build on momentum in Blackstone Channel 21. DXC/HP channe
Slide 37: Demystifying Digital
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 6 Demystifying Digital 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 36
Slide 38: Demystifying Digital (Story Board)
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Demystifying Digital (Story Board) 11-05-2018 | © Mphasis 2018 Proprietary and confidential information 37
Slide 39: Applied Tech: F2B and Service Transformation in Action
DocuSign Envelope ID: 50B21C17-2EF8-494E-9628-349AB41A4407 Applied Tech: F2B™ and Service Transformation in Action Engagement Layer Intelligence Layer Core Systems UX Cognitive Social Data & Microservices Core Analytics Systems Appification Business & Policy Knowledge Customers/ Any Device and APIs