Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Investor Presentation (December 2018)
111 slides from Hinduja Global Solutions's investor presentation, Dec 6, 2018
Slide 1: Analyst & Investor Meet 2018
ANALYST & INVESTOR MEET 2018 CHGS
Slide 2: Welcome and Introduction
WELCOME AND INTRODUCTION Ravi Ramalingam 2 Driving Results. Consistently.
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties
Slide 4: Agenda
Agenda Topic Speaker HGS Overview -Present and Future Partha DeSarkar Healthcare Business @ HGS Ramesh Gopalan Business Transformation - A Client and Market Perspective Tim Schuh + Adam Foster Transforming Businesses through Innovation Ram Mohan Natarajan Talking Digital Venkatesh Korla + Sachin Kar
Slide 5: HGS – Present & Future
HGS – PRESENT & FUTURE PARTHA DESARKAR, GLOBAL CEO, HGS 5 Driving Results. Consistently.
Slide 6: Macro shifts create opportunities and risks
Macro shifts create opportunities and risks ü New Heads of State and new thinking ü Trade wars ü Protectionism and tighter visa regimes ü Volatility of the Indian Rupee, Philippine peso ü Across the globe increase in minimum wages – gradual in some, sudden in some others ü Brexit – GDPR, Data Protec
Slide 7: Trending now…
Trending now… ü Digital is reinventing the experience that clients deliver to customers ü SMAC creating new frontiers of opportunity ü Accelerated adoption of customer intelligence technology to drive personalized CX ü CX and customer outcomes converge ü Rising use of AI & automation ü New areas for
Slide 8: The BPM perspective
The BPM perspective ü Huge Market opportunity – CAGR of 5.1% to touch US$206.7 Bn by 2022 ü Fragmented, nobody big enough to corner disproportionate market share ü Ongoing market consolidation and PE activity creates opportunity for stable player to nibble away clients from distracted incumbents ü T
Slide 9: Verticalise Focus
HGS’ approach VERTICALISE FOCUS Healthcare on Consumer Solutions 8 Practice areas with deep domain Brilliant at Basics expertise Expansion of digital & clinical Traditional + eCare Solutions transformative capabilities Adding $42M ABR* Adding $53M ABR* 9 * Deals in advanced stages of pipeline Drivin
Slide 10: Offering Orientation
Offering Orientation Largest investment in E-Care Digi, Social, RPA, innovation, largest CAGR Bots, machine M learning a r Target existing users in Classic Care g champion-challenger sales Traditional voice, chat, email i n s Shortest sales cycle (retain or more of Brilliant at Basics NPS, KPIs, gua
Slide 11: HGS Solutions Aligned to Customer Journey Stages
HGS Solutions Aligned to Customer Journey Stages Predicting the Customer Journey Awareness/ Returns/ Buy Service Pay Retention Research Warranty Acquire Support Retain Empowering Clients with Solutions Engage Buy Care Bill Warrant Retain HGS Capabilities Power Our Solutions 11 Driving Results. Consi
Slide 12: Solutions and Industry Focus: E-Care and Classic Care
Solutions and Industry Focus Engage Buy Care Bill Warrant Retain E-Care § Emerging digital buyer § B-C, B-B-C Classic Care § Select deals based on “land & expand” § Travel, hospitality, logistics, § Late adopters, Smaller enterprises retail, selective tech prospects, insurance & large § Traditional
Slide 13: Building Capability CoEs
Building Capability CoEs ANALYTICS DIGITAL AUTOMATION CoE CoE CoE § Interaction Analytics services § Launch of DigiCX services suite § BOTs deployed across clients institutionalized § Partnerships with platforms such § Capability built on multiple § Bringing Right Skill-set for as Liveperson, Sprink
Slide 14: HGS Opens Consumer Logistics CoE
HGS Opens Consumer Logistics CoE ü New Site in Jacksonville, Florida ü Hiring 200+ staff ü State-of-the-art Digital Emergency Roadside CX ü Partnering with largest towing network in the US ü Expect over 650,000 Emergency Roadside Services dispatches in 2019 14 Driving Results. Consistently.
Slide 15: Delighting Clients
Delighting Clients Highest ever CSAT for Focus on building partnerships HGS – Ex Index* of 61.6 16% 4% Client Tenure – Client Tenure – Below 5 years Over 20 years Quarterly Revenues Contributions Q4 FY 17 Q4 FY 18 Q2 FY 19 90 75 73 Revenue by Tenure 35 38 28 16 15 20 8 9 11 11 11 13 16% Client Tenur
Slide 16: Analyst Endorsement
Analyst Endorsement We stand out as a Leader in our industry because we strive to continually exceed expectations for our clients and their customers. But don’t just take our word for it . . . Gartner Leader ISG Provider Neat Leader Magic Quadrant for Peak Matrix Blue Print Winner’s Lens™ § CMS in A
Slide 17: FY2019 – The Story behind the Numbers
FY2019 – The Story behind the Numbers 17 Driving Results. Consistently.
Slide 18: Revenue bridge – H1 FY18 to H1 FY19
Revenue bridge – H1 FY 18 to H1 FY 19 22,595 Revenue Bridge between H1 FY 18 and H1 FY 19 without Domestic 20.8% & Acquisitions (in Rs Mn) 1,548 Forex Organic Growth 19,221 1,826 175 17.3% 148 733 10.5% 22,595 1,133 19,221 299 6.8% 349 16,385 16,385 H1 FY 18 India Philippines US UK Canada Others H1
Slide 19: Performance of Key Delivery Geographies
Performance of Key Delivery Geographies H1 FY19 as compared India Philippines Jamaica to H1 FY18 USA Canada UK Offshore Offshore Nearshore Growth 27.1% 38.8% 11.0% 9.4% 8.6% 9.0% Change in 0.3% 1.0% 5.0% 1.9% 5.0% -6.6% Delivery Margins § In H1 FY19 Core business margin improved driven by margin imp
Slide 20: EBITDA Margin as compared to H1 FY18
EBITDA Margin as compared to H1 FY 18 Improvement in margins from the core business 0.4% (1.4%) § The reported EBITDA margin of 6.7% - impacted by impact (3.2%) of minimum wage and AxisPoint acquisition 10.9% 11.3% § Excluding the impact of these the margins have improved by 40 Bps as 6.7% compared
Slide 21: India Domestic business – A Snapshot
India Domestic business – A Snapshot ü Challenge in India CRM business continues due to domestic mobile operators facing pressure ü Focus on reducing dependency on telecom vertical in India – expect to reduce contribution to India revenue from 70% to 50% by Q4 FY2019 ü BFS vertical more than doubled
Slide 22: Healthcare Business @ HGS
HEALTHCARE BUSINESS @ HGS Ramesh Gopalan 22 Driving Results. Consistently.
Slide 23: HGS Healthcare Journey
HGS Healthcare Journey 2016-2018 Acquisition of Colibrium – Sales and Enrollment Platform 2003 2008-2011 Acquisition of APH - Population Health Solutions Product Build Workers Comp Acquisition of Element - Customer Experience Enrolment Payment Integrity Management Solutions Geo expansion (Philippine
Slide 24: Healthcare Business - Growth Trajectory
Healthcare Business - Growth Trajectory Revenue (INR Mn) § 5 delivery geographies 18,932 C AGR 17,036 28 % § Healthcare business at scale 13,881 – 75M claims 9,792 – 120M interactions 6,958 – $836M in Financial Recovery § Continued growth of existing client relationships 2014 2015 2016 2017 2018 • 1
Slide 25: Healthcare Client Feedback - NPS
Healthcare Client Feedback - NPS NPS – Healthcare 350 70 300 60 250 56 50 HGS Healthcare NPS beats industry benchmark (43) for 200 31 46 40 second year consecutively; 150 30 results based on a large number of respondents with 100 20 the response rate in the high 50 10 80s 282 263 298 0 0 2016 2017 2
Slide 26: Bringing in Industry Best Practices
Bringing in Industry Best Practices – Key contributor to Client Satisfaction ↑ Business Domain Knowledge Agility (Speed & 6.25 ↑ Flexibility) 6.00 ↑ Reinforces Brand Image Mean score on a 7 point scale ↑ Productivity / Industry 5.75 Efficiency Best Embedding deep domain knowledge Improving Practices
Slide 27: Realigning Organization to Partner through Innovation
Realigning Organization to Partner through Innovation to impact Outcomes Verticalised business Global Innovation Hub Acquire/Partner for Capabilities Global Operations Digital Innovation Population Health Management Social Media Marketing One HGS- seamless delivery RPA Customer Journey Analytics Hea
Slide 28: Reorganized Healthcare Practice
We have reorganized our Healthcare Practice to focus on solutions that matter to our clients Payer Provider Services Services Provider Data Claim Management Payment Integrity Quality, Risk A/R Services Clinical Coding Healthcare Engagement Solutions 28 Driving Results. Consistently.
Slide 29: Payer Practices
Payer Practices Payer Services § Expertise in both US and international claims handling Claims § Point solutions for inventory control, quality and rework reduction § Industry benchmarks established § Proprietary technology led solutions for keeping provider data accurate and current Provider Data §
Slide 30: Practices Across Payer and Provider
Practices Across Payer and Provider Payer § Offshore and nearshore locations, meet and exceed client onshore NPS Services Healthcare § Digital channel engagement mix increased by 10-15% (chat, automated Engagement Solution messaging) § Interaction analytics capability § Deliver 2x ROI through case,
Slide 31: Member Engagement - Leveraging acquisitions
Member Engagement - Leveraging acquisitions and building lifecycle impact Search Google Ads, Social Landing Page - target web destination Open Enrollment General questions Education and Preventative Communication Personalized Communication Medical Cost Management, Care Coordination, Case/Utilization
Slide 32: Case Study - Unlocking the value through Deep Partnership
Case Study - Unlocking the value - through “Deep Partnership” 1-18 months Year 2-3 Year 3-4 Strategic Partnership - Consultative Operational Efficiency Business reengineering- engagement & drive business Key Focus Proprietary tools outcomes Value § Right geo/location – providing § Rule based workflo
Slide 33: AxisPoint Acquisition
AxisPoint Acquisition Expands expertise outside of admin spend (15-20% of premium dollars) to medical spend (80-85% of premium dollars) Full suite of offering in the care management space Onshore clinical delivery capability 33 Driving Results. Consistently.
Slide 34: Population health solutions - Overview
Population health solutions - Overview Market Conditions APH Solutions § 60% of Americans have at least 1 chronic condition and >20% have at least 5 CAREPOINT conditions Condition management and case management solutions to improve health outcomes, increase member satisfaction, and reduce costs § $7
Slide 35: GuidePoint
GUIDEPOINT Clinically led, logic based nurse triage, guidance, navigation and member engagement Services Key features Key benefits Referrals and navigation 400+ symptom based algorithms Repeatable 4 Modules for Adult, Pediatric, Telemedicine referrals Scalable Women’s health and Mental Health Outbou
Slide 36: Delivering Results
Delivering Results average Return on Investment across >2:1 AxisPoint Health’s book of business1 Requirements for real outcomes: Utilization by the right people agreement for each level of care >99% recommendation given by our nurses as compared to on-call physicians3 High redirection rates that ali
Slide 37: CarePoint
CarePoint Transforming condition and case management with predictive intelligence, laser-focused targeting, and pulsed interventions for individuals and their caregivers and support circles, informed by a mobile app 37 Driving Results. Consistently.
Slide 38: FOCUSED Tracks
FOCUSED Tracks Behavioral Social Determinants Addressing the Core Five Advanced Case Care Visit Medication Biometric Admission Care Manage- Coordination Compliance Adherence Monitoring Avoidance Planning/ Going Beyond ment Palliative Pivoting from Precision aim transcending all conditions and hurdle
Slide 39: Expert Guidance Where Needed
§ Health Coach § Social Worker Expert Guidance § Nurse Generalist WHERE NEEDED § Behavioral Health Specialist § Pulsed touches from care manager to drive behavior change § Person + support circle with their medical team at the center § Full spectrum of support addressing physical, behavioral, social
Slide 40: Digitally Guiding the Consumer Experience
Digitally Guiding the Consumer Experience Gathering Ongoing Targeting health Helping Bringing family personal 2-way digital information to guide understand and friends in as preferences communication and support health goals social support Elevating + simplifying Reaching out to begin interaction th
Slide 41: Financial Performance
Financial Performance Concerns Corrective Actions Losses in FY19 were much higher than § Rationalized operational headcount anticipated § Synergy projects under implementation, to be § Exit of a large contract earlier than completed end of Q3 expected – Telephony integrated with HGS § Higher G&A : T
Slide 42: Business Transformation – A Client and Market Perspective
BUSINESS TRANSFORMATION – A CLIENT AND MARKET PERSPECTIVE Tim Schuh and Adam Foster 42 Driving Results. Consistently.
Slide 43: Market Overview
Market Overview Client demands are shifting in the following ways: Advanced analytics driving CX outcomes Social media is a powerful force Industry consolidation Building CX consulting capabilities Channel shift and digitisation Significant adoption of Robotic Process Automation in key sectors Incre
Slide 44: The Disruptive Power of Customer Experience
The Disruptive Power of Customer Experience 44 Driving Results. Consistently.
Slide 45: Global BPO Spending Macro Market Overview
Global BPO Spending Macro Market Overview Client demands for BPO is growing as the overall volume of interactions grows. Offshore stable. BPO End-User Spending Forecast Distribution of CCO contracts offshore/ (US$ Billion) – By Geography nearshore components US CAGR (2017-2022) – 5.2% Canada CAGR (2
Slide 46: Adoption of Digital vs Traditional
Adoption of Digital vs Traditional Client demand is growing the fastest across digital channels. More businesses are leading with digital. CCO revenue across channels CCO market size split by scale-first CCO and over time (US$ Billion) digital-first CCO Growth rate Growth rate (2015-2017) (2017-2022
Slide 47: HGS Strategy
HGS Strategy Secure Leverage Invest in Rapid onshore specialist third party upmarket & offshore talent in key partnerships – capabilities expansion Sectors sell through Exponential Globalized Lean in expansion of organizational on Social non-voice structure & capabilities optimize SG&A 47 Driving Re
Slide 48: HGS Growth
HGS Growth Client demands for Digital up 48% YTD. Including social media expansions with large global brands. HGS Revenue Channel Digital CRM 48% 5.2% 3.1% 3.5% 3.5% FY 16 FY 17 FY 18 H1 FY 19 48 Driving Results. Consistently.
Slide 49: Automotive Research and Shopping Website
HGS Strategy – Automotive Research and Shopping Website Yes! Exclusive provider of 100% non-voice (text & chat) Can I get the CARFAX? Online lead generation & qualification for used car sales. 49 Driving Results. Consistently.
Slide 50: Automotive Research and Shopping Website - Results
HGS Strategy – Automotive Research and Shopping Website 30% increase in number of dealer appointments 50 Award Winning Driving Results. Consistently.
Slide 51: Global Beauty Products Leader
HGS Strategy – Global Beauty Products Leader Can I get t in pl hat Provide customer care support via 5 um? channels – phone, email, mail, chat, social media – for 32 UK brands 51 Driving Results. Consistently.
Slide 52: Global Beauty Products Leader - Results
HGS Strategy – Global Beauty Products Leader 40% reduction in volume thanks to Here Chatbot implementation i orde s the r link 100% of actionable Social posts . responded OUTPERFORMED all CSAT targets in 2018 52 Driving Results. Consistently.
Slide 53: HGS – EPIC Social Media Approach
HGS – EPIC Social Media Approach Huge Inbound Social Volume Artificial Intelligence Model Engage Protect Engageable Messages Engage with customers to Identifying, escalating and deepen relationships and mitigating issues before they Automated Rules Based Engine answer common questions. become crisis
Slide 54: Fortune Quick Service Restaurant Giant
HGS Strategy – Fortune 200 Quick Service Restaurant Giant 4M Mentions | 15K Restaurant Pages Engage Engage – to answer customers Protect – the brand from a potential crisis Protect Inform Inform – the business with insights Award Winning 54 Driving Results. Consistently.
Slide 55: Fortune Quick Service Restaurant Giant - Results
HGS Strategy – Fortune 200 Quick Service Restaurant Giant $1.2 million cost savings 150K likes, shares, comments Award Winning 55 Driving Results. Consistently.
Slide 56: Fortune Retailer
HGS Strategy – Fortune 10 Retailer 10M Mentions | 5K Store Pages Engage, Protect, Engage Protect Inform Inform… Create + Create – memorable moments 56 Driving Results. Consistently.
Slide 57: Fortune Retailer - Results
HGS Strategy – Fortune 10 Retailer $3.5 million savings 8-10x more posts filtered via AI 51% more customers engaged 57 Driving Results. Consistently.
Slide 58: Innovation & Transformation
INNOVATION & TRANSFORMATION Ram Mohan Natarajan 58 Driving Results. Consistently.
Slide 59: HGS Innovation and Transformation Framework
HGS Innovation and Transformation Framework Our To be a globally preferred business process AUTOMATION SOLUTIONS transformation partner for our clients, Innovation Focus ‘Bots and Brain’ Integration VISION creating value in their business through innovative outsourcing solutions AI & ANALYTICS SOLUT
Slide 60: Innovation & Transformation – Capability Focus Areas
Innovation & Transformation – Capability Focus Areas Focus on both Horizontal Capabilities and Domain Expertise App Dev Domain Expertise Mobility Offerings System Integration Platforms Automation RDA RPA Cognitive Telecom & Media Analytics Descriptive Analytics Predictive Analytics Prescriptive Anal
Slide 61: HGS Delivery Differentiator – The Automated Enterprise
HGS Delivery Differentiator – The Automated Enterprise™ Prospect profiling Web search POINT OF Hyper Personalization Intelli-form POINT OF Automation MARKETING INTERACTION Digital Marketing Virtual Assist Analytics Smart Processing Optimizing Customer Journey – Insights and Intelligent Research Next
Slide 62: Innovation @ HGS
Innovation @ HGS 62 Driving Results. Consistently.
Slide 63: Innovation @ Play in HGS – Taking quick strides ahead
Innovation @ Play in HGS – Taking quick strides ahead Significant growth in the Automation Centre of Excellence. Saved over $3 million for a US health insurance DIGITAL SOLUTIONS client Improve ‘CX and EX’ Index Multiple new logo wins for RPaaS (RPA as a Service). Automated over 55 process across li
Slide 64: Innovation @ Play in HGS – Taking quick strides ahead
Innovation @ Play in HGS – Taking quick strides ahead Interaction Analytics – Insights from calls, emails, chats, social media interactions DIGITAL SOLUTIONS Improve ‘CX and EX’ Index Improvement in collection by 18 % and productivity by 15% by building Propensity to Collect model AI & ANALYTICS SOL
Slide 65: Innovation @ Play in HGS – Taking quick strides ahead
Innovation @ Play in HGS – Taking quick strides ahead Implemented Mobile Cam solution for a US client that resulted in improving the customer experience and handle time DIGITAL SOLUTIONS significantly Improve ‘CX and EX’ Index Social Media capabilities – Saved $3.5 million for a AI & ANALYTICS SOLUT
Slide 66: Domain Specific Solutions – An Example
Domain Specific Solutions – An Example Cognitive Master Data agent Management Sensitivity around Horizontal Patient Integration Rule-based Engagement chatbots Current Healthcare Landscape Unassisted Establishing RPA Legacy Tech Data Standards Non Digital Flow of RDA/ Information Assisted And Data RP
Slide 67: Domain Specific Solutions – An Example
Domain Specific Solutions – An Example Automation Benefits: § Automated over 30 processes for clients § Savings of over 3 Mn USD for client Analytics Benefits: § Reduction in variance by over $1 Million per month § Improve Collections Days Outstanding 67 Driving Results. Consistently.
Slide 68: Recognition
Recognition Won in transformation Best Use of Self Cultural Transformation category two years Service Technology – Leader of the Year in a row Global/ Americas Business Transformation Leader of the Year Gold Stevie Winner in the American Business Awards for New Product Innovation Business to Busines
Slide 69: Venkatesh Korla, Founder/CEO December 2018
VENKATESH KORLA, FOUNDER/CEO DECEMBER 2018
Slide 70: Our Purpose
OUR PURPOSE Create frictionless digital experiences that solve business problems and improve people’s lives. 70
Slide 71: History
HISTORY 2003 Founded as Element115 with a vision to transform healthcare through digital experience 2005 eHealth Accelerator released to market A healthcare provider focused digital experience solution released in partnership with Fatwire. 2009 Completed over 100 Healthcare provider web implementati
Slide 72: Element Solutions: Revenue Growth
Element Solutions: Revenue Growth 13.6 f 12 % CAGR o 9.5 8.3 8.4 CY 2015 CY 2016 CY 2017 FY 2019 Revenue ($mn) (Annualised) 72 Driving Results. Consistently. 72
Slide 73: Optimizing the Experience is Key
Today’s Customer Experience • Chaotic 89 % • Consists of Micro-Moments Of customers admit they would leave a • Multi-Channel company after a bad experience • Emotional Optimizing the Experience is Key 73 Driving Results. Consistently.
Slide 74: The Effortless Experience
THE EFFORTLESS Convenience EXPERIENCE Empower DESIGN PEOPLE Context Empathy Engage Enable TECHNOLOGY PROCESS Resources Speed Insights DATA BUSINESS PROCESS 74 DIGITAL SERVICES MANAGEMNT
Slide 75: Digital Services
DIGITAL SERVICES DIGITAL AGILITY OPERATIONAL EXCELLENCE • Cloud Enablement & Optimization • Artificial Intelligence • Digital Marketing Production • Social Interactions Management DIGITAL EXPERIENCE UNIFIED AUDIENCE EXPERIENCES ENGAGEMENT • Web Experience Technologies • Mobile Strategy and Apps DATA
Slide 76: A World Leader in Cancer Research & Treatment
A World Leader in Cancer Research & Treatment IMPLEMENTED A MULTI-HOSPITAL SITE INFRASTRUCTURE ON AMAZON WEB SERVICES Engage Design – Web design and content Previous site had daily or Implement – WebCenter Sites weekly down-times Protect Inform Strategize – Optimal cloud solutions 76 Driving Results
Slide 77: A World Leader in Cancer Research & Treatment - Results
A World Leader in Cancer Research & Treatment Intention to Donate 183% 99.999% Guaranteed Site Availability Best-in-Class Digital User Experience Increase Donations 23% Outpatient Visits Web Traffic 17% 10% 77 Driving Results. Consistently.
Slide 78: A $17.6B Semiconductor Company and Market Leader in the U.S.
A $17.6B Semiconductor Company and Market Leader in the U.S. IMPROVED THEIR SPEED TO MARKET WITH CLOUD-BASED CONTENT MANAGEMENT SOLUTION Engage Establish a scalable architecture Protect Integrate cloud & legacy technologies Inform Optimize cloud environment 78 Driving Results. Consistently.
Slide 79: A $17.6B Semiconductor Company - Results
A $17.6B Semiconductor Company and Market Leader in the U.S. 35% Reduction in IT Infrastructure costs, year-on-year § Improved Capabilities § Delivered Better Customer Experiences § Realized Optimal ROI 79 Driving Results. Consistently.
Slide 80: $90B Health Insurance Company in the U.S.
$90B Health Insurance Company in the U.S. LOWER COSTS AND BETTER SECURITY WITH CLOUD MIGRATION Engage Drive IT modernization Protect Reduce total cost of ownership Inform Gain flexibility to scale on demand 80 Driving Results. Consistently.
Slide 81: Semiconductor Company - TCO Reduction
A $17.6B Semiconductor Company and Market Leader in the U.S. 40% Estimated reduction in TCO § New portals § New business ventures § Big data platform migration 81 Driving Results. Consistently.
Slide 82: India's Second Largest Paint Company
India’s Second Largest Paint Company A 360 DEGREE DIGITAL TRANSFORMATION LED BY CONTENT MARKETING STRATEGY Build – a profile for the brand Engage Equate – colours to different human Protect senses Amplify – brand reach with the help of Inform influential guest bloggers 82 Driving Results. Consistent
Slide 83: India's Second Largest Paint Company - Results
India’s Second Largest Paint Company 500% growth in website traffic 15x increase in Facebook fans #1 Twitter handle in Paints industry 83 Driving Results. Consistently.
Slide 84: India's Leading Media House
India’s Leading Media House UNIFIED MARKETING CHANNELS TO IMPROVE CUSTOMER ENGAGEMENT Engage Align – all marketing channels Recruit – a team of content writers Protect Customize – responses and make them Inform interactive 84 Driving Results. Consistently.
Slide 85: India's Leading Media House - Results
India’s Leading Media House 70% cases closed within 5mins 20x improvement in response quality score #1 Media brand in terms of positive sentiment 85 Driving Results. Consistently.
Slide 86: $3.2B Donut and Ice Cream Global Brand with 19K stores
$3.2B Donut and Ice Cream Global Brand with 19K stores UI/UX PORTAL TRANSFORMATION FOR 20K FRANCHISEES AND EMPLOYEES Engage New digital experience design Protect Framework for multi-brands Inform Better tool/content access 86 Driving Results. Consistently.
Slide 87: $3.2B Donut and Ice Cream Global Brand - Results
$3.2B Donut and Ice Cream Global Brand with 19K stores ★★★★★ § Design work rated “Very successful” § High-satisfaction from executive committee § Top ratings from users and stakeholders 87 Driving Results. Consistently.
Slide 88: A Data-Driven Experience Demo
A DATA-DRIVEN EXPERIENCE DEMO
Slide 89: Omni-Channel Data Unification Drives Personalization in Context
OMNI-CHANNEL DATA UNIFICATION DRIVES PERSONALIZATION IN CONTEXT With Call Center Rep Empowered With This Product & Marketing Can Gain Insights, Implement Consumer Data, The Consumer Interaction Can Be Consumer Feedback & Segment Consumers to Run --- --- --- --- Lot More Effective! Personalized Campa
Slide 90: Less Artificial. More Intelligence.
LESS ARTIFICIAL. MORE INTELLIGENCE. Together, HGS can humanize this data-driven CX world.
Slide 91: Financial Overview
FINANCIAL OVERVIEW SRINIVAS PALAKODETI, GLOBAL CFO, HGS
Slide 92: Category wise Growth Summary
Category wise Growth Summary Growth Summary Volume Growth FX Impact Impact of Acquistions 20.8% 18.6% 8.3% 7.1% 11.5% 3.7% 3.2% 2.1% 5.9% 0.3% -2.9% 8.3% 9.1% 6.6% 6.6% FY 16 FY 17 FY 18 H1 FY 19 92 Driving Results. Consistently.
Slide 93: HGS Revenue Growth Trendline
HGS Revenue Growth Trendline Revenue Rs Million 45,189 37,110 38,494 f 18.9% 33,279 GR o C A 28,076 Acquired 25,048 part of Acquired 19,834 Mphasis AxisPoint Health Acquired India BPO & Element 15,543 Colibrium businessIndia Solutions 10,732 7,976 8,923 Acquired Acquired EBOS Acquired Business in Bu
Slide 94: Last 10 years – Headcount CAGR of 12%
Last 10 years – Headcount CAGR of 12% Headcounts 44,237 44,265 44,528 f 11.9% 39,834 CA GR o 28,435 26,036 23,899 23,100 19,442 14,500 15,600 FY 9 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 H1 FY 19 94 Driving Results. Consistently.
Slide 95: QE Mar 17 to QE Sept 18: Revenue Growth on flat head count
QE Mar 17 to QE Sept 18: 23 % Revenue Growth on flat head count ! 1,376 908 183 1,059 ( 5,465 ) 248 1,229 44,809 44,237 1,034 QE Mar'17 India India Philippines US* Jamaica UK Canada Others** QE Sept'18 International Domestic * US –Headcount includes USA, Colibrium, Axis Point, Element Solutions ** O
Slide 96: More Seats On Opex Model
More Seats On Opex Model, Philippines has made a beginning Owned Seats Seat for Opex % of Opex Seats 21.2% 23.0% 19.8% 53,750 16.4% 16.9% 18.0% 16.0% 43,750 6,837 6,856 7,243 8,817 9,507 13.0% 33,750 8.0% 23,750 35,979 34,956 35,637 35,690 35,372 13,750 3.0% 3,750 -2.0% Sept 17 Dec 17 Mar 18 June 18
Slide 97: Free Cash Flow to EBITDA Analysis
Free Cash Flow to EBITDA Analysis FREE CASH FLOW to EBITDA Ratio EBITDA FCF/EBITDA (%) 5,000 70% 4,500 47% 4,000 33% 50% 3,500 48% 16% 30% Fig in INR (Mn) 3,000 10% 2,500 -10% -26% 2,000 -30% 1,500 -50% 1,000 500 -70% 3,130 4,424 4,061 2,081 1,507 - -90% FY 16 FY 17 FY 18 H1 FY 19 without H1 FY 19 w
Slide 98: Free Cash Flow to PAT Analysis
Free Cash Flow to PAT Analysis FREE CASH FLOW to PAT Ratio PAT FCF/PAT (%) 2,500 170% 119% 2,000 99% 120% 51% 70% Fig in INR (Mn) 1,500 28% 20% 1,000 -30% -80% -80% 500 -130% 1,010 1,792 1,921 1,410 851 - -180% FY 16 FY 17 FY 18 H1 FY 19 without H1 FY 19 with Acquisition Acquisition 98 Driving Resul
Slide 99: Debt Movement
Debt Movement Debt Movement (In INR Mn) Gross Debt, Net Debt & Cash movement Working Capital Term Loan (In INR Mn) Gross Debt Net Debt Cash & Cash equivalent 6,616 6,616 5,714 5,854 5,714 5,854 5,546 5,546 5,687 2,240 1,637 5,057 1,881 1,705 4,576 4,253 2,040 4,376 4,217 1,293 3,832 3,841 656 167 Ma
Slide 100: Leverage Ratio
Leverage Ratio Leverage ratio Gross Debt/TTM EBITDA Net Debt/TTM EBITDA 2.7 1.5 1.4 1.6 1.2 0.5 0.4 0.04 FY 16 FY 17 FY 18 H1 FY 19 100 Driving Results. Consistently.
Slide 101: Business ROCE & ROE Trend
HGS - Business ROCE & ROE Trend Business ROCE & ROE Trend Business ROCE (%) ROE (%) excl Treasury Cash 20.9% 18.4% 16.2% 12.2% 11.3% 22.4% 17.2% 17.0% 14.6% 11.9% FY 16 FY 17 FY 18 H1 FY 19 without H1 FY 19 with Acquisition Acquisition 101 Driving Results. Consistently.
Slide 102: Revenue Hedging & Forex Sensitivity
Revenue Hedging & Forex Sensitivity INDIA FC rate Spot rate Quantum (In USD Mn) 80.00 45.00 45.00 50.00 42.00 42.00 76.00 40.00 76.06 33.25 72.00 30.00 70.69 70.12 68.00 69.40 69.06 20.00 67.37 67.29 64.00 24.00 64.51 64.47 60.00 10.00 56.00 - H1 FY 18 H2 FY 18 H1 FY 19 H2 FY 19 H1 FY 20 H2 FY 20 10
Slide 103: Book Value & EPS in INR
Book Value & EPS in INR Book Value per share EPS 800 93.18 100 86.58 700 82.6 90 80 600 70 500 60 48.67 400 50 300 40 30 200 20 100 10 573 751 0 0 FY 16 FY 17 FY 18 H1 FY 19 Annualized 103 Driving Results. Consistently.
Slide 104: SG&A as a % of Revenue
SG&A as a % of Revenue Expense as a % of Revenue Sales G&A Overall SG&A 20% 20% 18% 18% 15% 14% 14% 13% 5% 5% 4% 4% FY 16 FY 17 FY 18 H1 FY 19 104 Driving Results. Consistently.
Slide 105: Thank You
THANK YOU 105 Driving Results. Consistently.
Slide 106: Wrap Up
WRAP UP PARTHA DESARKAR, GLOBAL CEO, HGS 106 Driving Results. Consistently.
Slide 107: Success Mantras
HGS – A Future of Promise Success Mantras ü A BPM market that shows no sign of slowdown ü HGS is a pure-play BPM player… An award-winning leader with deep domain knowledge ü Tenured relationships with clients ü Recognized for our superior digital transformation expertise ü Key partnerships with tech
Slide 108: To Sum Up
To Sum Up ü Core business is strong and profitable ü Digital revenues growing at a rapid pace ü Building CoEs for new solutions and verticals ü APH pulled down profitability in H1; Significant cost synergies completed ü Improvement in APH profitability expected in Q4 onwards ü Trend of better H2 tha
Slide 109: Driving Results. Consistently.
109 Driving Results. Consistently.
Slide 110: Driving Results. Consistently.
110 Driving Results. Consistently.
Slide 111: CSR program touches over 1,53,000 lives in India
Impacting local communities every day through corporate CSR programs and employee volunteering HGS’ CSR Program directly touches over 1,53,000 lives in India 111 Driving Results. Consistently.
Hinduja Global Solutions — Investor Presentation (December 2018) on 6ix