Slide 1: Mphasis Q3 FY 2021 Earnings Presentation
Mphasis Q3 FY 2021 Earnings Presentation 22nd January 2021 Nitin Rakesh Chief Executive Officer And Executive Director Manish Dugar Chief Financial Officer © Mphasis 2020 Proprietary and confidential information I 1/22/2021 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: Top Ten Strategic Predictions for 2021 and Beyond
Top Ten Strategic Predictions for 2021 and Beyond By 2025, traditional computing technologies will hit a digital wall forcing the shift to new computing paradigms © Mphasis 2020 Proprietary and confidential information I 1/22/2021 Source: https://www.gartner.com/smarterwithgartner/gartner-top-10-str
Slide 4: Creating higher-value, larger, integrated deals
Creating higher-value, larger, integrated deals GTM Deal Archetypes Mphasis Tribes Leveraged Larger Deals Zero Cost Transformation Modernization | Next Gen IT Ops | DevOps | Data 1 Channeling run cost optimization to power Engaging in >$25 Mn modernization and transformation Pursuits consistently Pl
Slide 5: Our Tribe led Pipeline has increased over the past year
Our Tribe led Pipeline has increased over the past year Tribes-led increased inflow of pipeline and Large deal wins 49% • The Specialty division of Ardonagh Group, UK's Data 8.7% largest independent insurance broker has signed up Mphasis for a Digital Transformation engagement Modernization 15.4% Da
Slide 6: Direct Business has been Consistently Delivering Strong Growth
Direct Business has been Consistently Delivering Strong Growth Accelerated Growth in Direct Revenue $1Bn+ revenue for Direct on LTM basis CAGR 283 Strong QoQ (5.3% CC) and YoY +19.7% 268 Overall (19% CC) growth; Broad based growth across all units 241 240 236 Top 10 accounts in Direct continue Q3’20
Slide 7: Growth has been broad based growth across verticals
Growth has been broad based growth across verticals Q3’21 Direct Direct Q-o-Q Q-o-Q Y-o-Y US$ M Revenue by Segment 145 178 2% 2% 30% 124 BCM 120 36 34 32 4% 7% -1% Insurance 32 50 11% 57% 67% 48 43 ITCE 36 33 44 42 5% 8% -1% Logistics & Transportation 27 Others 36 44 43 38 -10% -4% 3% Q3’18 Q3’19 Q3
Slide 8: Hyper-growth Sub-Vertical: Hi-Tech
Hyper-growth Sub-Vertical: Hi-Tech Direct Hi-Tech Revenue $ MM CAGR 86 +47% • Our domain-centric Product Engineering Services Expertise has helped us in becoming a strategic, innovative and reliable partner to enterprises across industries- Compute 51 Systems, Enterprise Software, Medical Devices, C
Slide 9: Strong deal win momentum in Direct
Strong deal win momentum in Direct Direct TCV Wins^ Direct: Revenue vs TCV – Strong Correlation YoY CAGR +22% +25% 247 197 138 174 110 164 New Gen 108 84 73 Traditional 30 26 33 Q3’18 Q3’19 Q3’20 Q3’21 ^ TCV wins : $ Mn • Q3’21 Direct TCV wins of $247M – 71% of Q3’21 deal wins came from New-Gen area
Slide 10: Direct: Progression in Client Mining and Large-deal Metrics
Direct: Progression in Client Mining and Large-deal Metrics Client Pyramid Focus on winning large-deals (>$20M TCV) # of cumulative deal wins since Q1’18 81 • Continuous improvement in client 77 60 pyramid driven by expansion of wallet 35 share in large clients and consistent new LTM avg deal size 3
Slide 11: Strong Operating Performance driving EPS Growth and Cash generation
Strong Operating Performance driving EPS Growth and Cash generation Revenue growth Operating Profit growth 967 155 CAGR +10.1% CAGR +12.8% 920 147 133 827 725 108 9M FY’18 9M FY’19 9M FY’20 9M FY’21 9M FY’18 9M FY’19 9M FY’20 9M FY’21 Gross Revenue in $M at average USD/INR rate for respective period
Slide 12: Summary
Summary 1. Revenue growth helped by sustained performance in Direct (CC growth of 19% Y/Y in Dec-20, 16.2% YTDFY21) • Growth supported by robust TCV win trend (+64% FYTD) 2 KPIs moving in the right direction • Track record in winning large deals consistently improving marked by increasing-sized and
Slide 13: Mphasis Q&A
5 Mphasis The Next Applied Q&A
Slide 14: Transformation in Times of Crisis
Transformation in Times of Crisis Eight Principles to Create Opportunities and Value in the Post-Pandemic World • Challenge your Mental Models and Always Stay Ahead • Reimagine and Reinvent Your Approach to Customers and Stakeholders • Speed up Digital Transformation and Design for Personalization a