Mastek Limited · NSE:MASTEK
Mastek — Investor Presentation (June 2019)
27 slides from Mastek's investor presentation, June 2019
Slide 1: Investor Presentation
Investor Presentation June 2019 Investor Presentation www.mastek.com
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements concerning our future growth prospects which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include,
Slide 3: Agenda
Agenda 1 Corporate Overview 2 Financial Performance 3 Way Forward – Vision 2020 Slide 3 © Mastek Ltd. 2018 – Confidential Investor Presentation www.mastek.com
Slide 4: Corporate Overview
Corporate Overview Investor Presentation www.mastek.com
Slide 5: Mastek at a Glance
Mastek at a Glance Trusted Partner in Complex Digital and Agile Transformation Programmes 1982 US$ 151 Mn1 76% 22% 2% 157 Founded by 4 Total Revenue Promoters CAGR: 33%2 UK US Others Clients3,6 +2,000 US$ 22 Mn1 84% 29 Headcount4 EBITDA CAGR: 57%2 Digital Solutions5 >$1 Mn Clients6 1FY19 total reven
Slide 6: Corporate Milestones
Corporate Milestones ▪ Total revenues INR 1000 cr+ ▪ Total PAT INR 100 cr+ 2019 ▪ Acquired TAISTech, US based leading digital commerce solution provider ▪ Unveiled revised strategy – “Vision 2020” 2017 ▪ Completed demerger; Mastek entrenched as pure play IT services Company ▪ Acquired UK based Indig
Slide 7: End to End Service Offerings for Digital Transformation
End to End Service Offerings for Digital Transformation Assurance & Testing App Development Business Intelligence • Providing reliable testing services under • Delivering robust, scalable & secure • Providing competitive edge with data automated framework, supported by customised applications quickl
Slide 8: Digital Services and Taskforce
Digital Services and Taskforce Service Line value propositions Application App Support & Assurance BI & Analytics Development Maintenance & Testing Data Management Test Automation Digital Transformation ITIL Services Business Intelligence Performance Testing Robotic Process Automation DevOps Big Dat
Slide 9: Agile Consulting and Digital Commerce
Agile Consulting and Digital Commerce Agile Consulting 500% 500% increase in ROI Award-winning DevOps Industry-leading governance consulting Our pioneering governance framework has Incremental delivery approach, been adopted on a number of the largest dynamic uncertainty management Our expert consul
Slide 10: Experienced Management Team
Experienced Management Team John Owen Abhishek Singh Hiren Shah Prahlad Koti Dennis Badman Maninder Kapoor Puri Raman Sapra Group CEO Group CFO Senior VP, Integration MD UK CBO Group CPO President, Americas • 30 years of • 20 years of • 30 years of • 27 years of • 20 years of • 24 years of • More th
Slide 11: Marquee Clientele
Marquee Clientele “We had challenging timescales but the first work pack that has been completed was completed a day Select Client Universe1 ahead of schedule and the defect count was very, very positive, in fact no defects were delivered within the solution” - UK based Leading Supermarkets Chain “W
Slide 12: Awards & Recognitions
Awards & Recognitions Outstanding Contribution – IT1 Recognised as an ‘Agile Disruptor’ in Public Sector2 IndigoBlue (part of the Mastek Best Test Automation Project – Finance Monthly CEO Award group) won two DevOps Functional category 2018 Industry Awards 1At the 1st edition of the CNBC-AWAAZ CEO A
Slide 13: Awards & Recognitions
Awards & Recognitions • Mastek identified as one of the 25 leading IT service providers of Robotic Process Automation (RPA) and C&SI services by Gartner in their recent Competitive Landscape report, August 2018 • Mastek UK won 2 awards at Dev Ops Industry under its marquee brand IndigoBlue ✓ Best Ov
Slide 14: Recognition
Recognition UK Prime Minister commends Mastek’s contribution to UK tech economy Key highlights from London Tech Week organized on 10th June’19: • John Owen was invited by the Prime Minister, Theresa May to attend the ‘Force for Good’ reception that took place at 10 Downing Street, to celebrate Maste
Slide 15: Financial performance
Financial performance Investor Presentation www.mastek.com
Slide 16: Growing Revenue and Profitability (Figures in Rs Crore)
Growing Revenue and Profitability (Figures in Rs Crore) Total Revenue1,2 EBITDA & Margin1 CAGR: 25%; CC: 29% CAGR: 64% 156 1058 838 121 544 573 61 14.8% 36 14.4% 10.7% 6.5% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 PAT & Margin1 Order Backlog3 (Next 12 Months) CAGR: 95% CAGR: 38% 102 545 525 70 9.6% 3
Slide 17: Diversifying Revenue Mix
Diversifying Revenue Mix1 Geography Mix Vertical Mix 4% 5% 2% 2% 12% 13% 9% 7% 13% 29% 24% 19% 19% 20% 24% 14% 20% 37% 36% 96% 82% 74% 69% 55% 43% 34% 38% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 UK US Others Government Retail Financial Services Others Services Mix Contract Type 6% 3% Agile Consultin
Slide 18: Strong Financial Position (Figures in Rs Crore)
Strong Financial Position1 (Figures in Rs Crore) Total Networth Cash Position 245 716 205 153 549 476 469 99 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Return on Equity2 Return on Capital Employed3 17.7% 19.8% 16.0% 13.7% 9.1% 6.9% FY17 FY18 FY19 FY17 FY18 FY19 1Figures as per IndAS; 2Return on Equity
Slide 19: Consistent Client Connect & Productivity Improvement
Consistent Client Connect & Productivity Improvement Active Clients1 (LTM) Revenue per Employee2 (US$) 70,747 70,765 159 170 157 88 62,117 61,176 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Repeat Business3 Billable Utilisation4 98.6% 98.4% 97.9% 82.9% 83.9% 97.5% 80.9% 79.0% FY16 FY17 FY18 FY19 FY16 FY
Slide 20: Maximising Shareholder’s Return
Maximising Shareholder’s Return Total Shareholders’ Return1 (Rebased to 100 – LTM) 120 Mastek 8.9% Nifty 7.5% 100 Nifty IT 0.6% 80 60 Oct/18 Nov/18 Dec/18 Jan/19 Feb/19 Mar/19 Apr/19 May/19 Jun/19 Mastek Nifty NSE IT Dividend Per Share (Rs.) Payout2 170.0% 8.5 120.0% 6.0 70.0% 3.5 50.0% 2.5 FY16 FY1
Slide 21: Peer Review
Peer Review Particulars1 Mastek Hexaware Mindtree NIIT Tech Kainos Currency ₹ ₹ ₹ ₹ £ Financial 2 Operating Revenue (Mn) 10,332 48,627 70,215 36,762 151 Operating EBITDA (Mn) 1,315 7,596 10,645 6,452 21 EBITDA Margin 12.7% 15.6% 15.2% 17.6% 13.9% PAT (Mn) 1,015 5,875 7,541 4,221 17 PAT Margin 9.8% 1
Slide 22: Way Forward – Vision 2020
Way Forward – Vision 2020 Investor Presentation www.mastek.com
Slide 23: Strategic Plan – Vision 2020
Strategic Plan – Vision 2020 ✓ Inducted Professional → Increase in Wallet Share in UK Public Sector Management Team → Digital Transformation Strategy in US ✓ Opened US → Cross Sell (Acquired TAISTech) → Drive Operational Efficiency ✓ Basic Business fix → Tactical M&A - Capacity & Capability driven F
Slide 24: What’s Changing !!!
What’s Changing !!! Business ✓ High focus on Digital and Agile transformation programs ✓ Among top 3 to deliver large complex Agile programs; Help UK Government cut cost & time of delivery ✓ Be a vendor of choice for Digital Transformation projects ✓ Continued investment in building deep domain and
Slide 25: Vision 2020: A Global Leader in Digital Transformation
Vision 2020: A Global Leader in Digital Transformation Be most respected, valued and trusted digital Customers partner; NextGen supplier of choice Be employer of choice for new entrants and have Employees industry leading employee engagement ratings Provide an attractive financial return and be a In
Slide 26: Pillars of Performance Improvement
Pillars of Performance Improvement Continued Digital Pursuit in UK; Wallet Share Increase in UK Public Sector Monetize Non-Core Asset; Digital Transformation Offerings in US; Capability Aggressive Inorganic Initiatives enhancement Continuous Improvement in Quality of Earnings Slide 26 © Mastek Ltd.
Slide 27: END OF PRESENTATION
END OF PRESENTATION About Mastek Mastek is a publicly held (NSE: MASTEK; BSE: 523704) leading IT player with global operations providing enterprise solutions to government and enterprise organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek operates in