Epam Systems, Inc. · NYSE:EPAM
Epam Systems — Investor Presentation (November 2024)
36 slides from Epam Systems's investor presentation, November 2024
Slide 1: Presentation November 2024
Presentation NOVEMBER 2024 EPAM Proprietary & Confidential.
Slide 2: Forward-looking statements
These materials contain forward-looking statements. You should not place undue reliance on these statements because they are subject to numerous uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond
Slide 3: Agenda
01 Who We Are 4 02 The EPAM Story 7 03 Our Positioning 10 04 Market Trends 12 05 Who We Serve 14 06 How We Do It 16 07 Artificial Intelligence 19 08 Corporate Responsibility & Recognitions 29 09 Investment Highlights 32 EPAM Proprietary & Confidential. 3
Slide 4: Who We Are
01 Who We Are EPAM Proprietary & Confidential. 4
Slide 5: We are consultants, designers, engineers, architects and trainers
We are consultants, designers, engineers, architects and trainers who enable our clients to be competitive and disruptive in the marketplace through innovative technology solutions, while helping them to successfully navigate through multiple waves of technology and social change. We help our client
Slide 6: EPAM Fast Facts – Q3 2024
EPAM Fast Facts – Q3 2024 REVENUES G A A P D I LU T E D E P S ( Yo Y ) N O N - G A A P D I LU T E D E P S ( Yo Y ) 2023 REVENUES 5 -Y E A R R E V E N U E G R O W T H (2018-2023) E PA M E R S ENGINEERS, DESIGNERS C O U N T R I E S & R EG I O N S FOUNDED IN U. S . H E A D Q UA R T E R E D & C O N S U
Slide 7: The EPAM Story
02 The EPAM Story EPAM Proprietary & Confidential. 7
Slide 8: Growing, Global Presence in 55+ Countries & Regions
Growing, Global Presence in 55+ Countries & Regions1 Belgium Cyprus France Germany Ireland Italy Armenia Malta Georgia Netherlands Canada Portugal Kazakhstan Spain Kyrgyzstan China Sweden Uzbekistan Hong Kong SAR United States Switzerland United Kingdom Japan Israel Qatar Mexico Lebanon Saudi Arabia
Slide 9: The EPAM Advantage – 30+ Years of Software & Digital Platform Expertise
The EPAM Advantage – 30+ Years of Software & Digital Platform Expertise EPAM turns 30, expands to 55 countries, and is recognized as a leader in the IDC EPAM completes its first In the midst of a historic EPAM extends its EPAM records its first billion- MarketScapes for Worldwide decade having built
Slide 10: Our Positioning
03 Our Positioning EPAM Proprietary & Confidential. 10
Slide 11: The Enterprise IT Services Market - a $2.1 Trillion+ TAM for 2027
The Enterprise IT Services Market - a $2.1 Trillion+ Total Addressable Market for 20273 EPAM is positioned in the Consult & Build Services Market Segment (which includes Cloud, Consulting & Security) “BUILD” “MAINTAIN” Consulting Hardware Support $457B $71B Infrastructure Implementation & Managed Se
Slide 12: Market Trends
04 Market Trends EPAM Proprietary & Confidential. 12
Slide 13: The Enterprise Landscape is Increasingly More Competitive, Complex
The Enterprise Landscape is Increasingly More Competitive, Complex and in Need of Change Market Technology Enterprise • New competitors running on nimble • Generative AI • Adaptiveness technologies • Mobile devices • Agile IT • The customer-centric experience • IoT platforms • Application modernizat
Slide 14: Who We Serve
05 Who We Serve EPAM Proprietary & Confidential. 14
Slide 15: Who We Serve
Who We Serve Among our clients, are some of the world's foremost brands across all major industries. Of our top 100 clients, 67 are in the Fortune 500 or Forbes Global 2000. Through its big data, platform Enabled Wolters Kluwer to deliver a Our Digital Learning program was Created a deeper level of
Slide 16: How We Do It
06 How We Do It EPAM Proprietary & Confidential. 16
Slide 17: How We Do It
OUR SERVICES How We Do It We enable our clients’ business transformation by engaging multidisciplinary teams who combine deep business expertise with design thinking, world-class engineering, modern operations practices and leading tools and frameworks for optimizing performance. We are Digital Orch
Slide 18: EPAM Continuum
EPAM Continuum The integrated business, experience and technology consulting service brand of EPAM Systems, applies a Systems Thinking mindset to help solve our clients’ most complex problems, develop their agility to adapt and empower them to compete. We believe the right solutions are the ones tha
Slide 19: Artificial Intelligence
07 Artificial Intelligence EPAM Proprietary & Confidential. 19
Slide 20: Gartner Magic Quadrant on GenAI focus
ARTIFICIAL INTELLIGENCE “Continued strong focus on GenAI: GenAI is central to EPAM’s custom software development process, with its delivery, engineering, testing, and DevOps teams assessing performance and integration with existing tools. Its R&D team refines use cases and develops proprietary solut
Slide 21: Forrester Wave on AI and testing services
ARTIFICIAL INTELLIGENCE “EPAM has taken a bold stance by acknowledging the disruptive impact of AI, particularly GenAI, on the testing and development services market. It believes that future testing services will heavily rely on AI accelerators, enabling greater utilization of less senior professio
Slide 22: EPAM Is Making GenAI Real
ARTIFICIAL INTELLIGENCE EPAM Is Making GenAI Real EPAM’s world-class GenAI platforms and methodologies help our clients accelerate the software development lifecycle with improved speed and productivity at scale. EPAM DIAL EPAM AI/RUN™ EPAM EliteA™ A Unified Generative AI Orchestration Platform Revo
Slide 23: JenAii Digital Assistants Powered by LLMs
ARTIFICIAL INTELLIGENCE JenAii™ (Joint EPAM Natural AI Interface) Digital Assistants Powered by LLMs & Conversational Interfaces We envision a not-so-distant future where we interact conversationally with digital systems. You can see the beginnings of this with consumer use of ChatGPT. Taking a step
Slide 24: Reckitt
CPG & RETAIL Reckitt A global CPG leader in hygiene, nutrition & healthcare Reckitt partnered with EPAM to establish a Responsible AI governance process to ensure the safe and controlled use of AI/ML technologies across the business. With 50+ existing AI/ML-powered solutions in need of manual oversi
Slide 25: International Monetary Fund
FINANCIAL SERVICES International Monetary Fund A multilateral organization that works to achieve sustainable growth and prosperity for all of its 191 member countries With the support of the International Monetary Fund, EPAM released the StatGPT v2.0 GenAI powered platform for evaluating and testing
Slide 26: Xbox
GAMING Xbox A global leader in the gaming industry Xbox Game Studios’ World’s Edge, the developer of the legendary Age of Empires franchise, wanted to improve its game and network performance by modernizing its network operations center (NOC). World’s Edge partnered with EPAM for the transformation
Slide 27: Altera Digital Health
LIFE SCIENCES & HEALTHCARE Altera Digital Health A global healthcare IT leader Altera Digital Health, owner of 200+ healthcare companies, wanted to leverage the power of Generative AI to increase efficiency and optimize costs by building custom assistants, simplifying daily tasks and developing besp
Slide 28: Baker Hughes
ENERGY Baker Hughes A global energy technology company Baker Hughes, a global energy technology company, partnered with EPAM to develop Leucipa™, a cloud-based AI application to automate field production and manage oil and gas assets. Initially facing development challenges, EPAM was brought in to r
Slide 29: Corporate Responsibility & Recognitions
08 Corporate Responsibility & Recognitions EPAM Proprietary & Confidential. 29
Slide 30: Our approach to sustainability is guided by three principles
SUSTAINABILITY Our approach to sustainability is guided by three principles: We care about our Planet We Support Our People and Communities We Conduct Business with Integrity We recognize the need to act with Our commitment to social impact is Corporate governance is a set of urgency to conserve and
Slide 31: Industry Leading Recognitions
AWARDS & RECOGNITIONS Industry Leading Recognitions Ranked the Top 100 Best Places to Listed Among the Top 25 World’s Named a Top 100 Most Loved Named an Inc. Power Partner Work (2023 - 2024) Largest Agency Companies by Ad Age Workplace by Newsweek (2023) (2020 - 2023) (2021 - 2024) Ranked as a Top
Slide 32: Investment Highlights
09 Investment Highlights EPAM Proprietary & Confidential. 32
Slide 33: Historical Annual Financial Performance
Historical Annual Financial Performance Revenue Growth ($B) Non-GAAP Operating Margins 4 Non-GAAP Diluted EPS Growth 5 $5 .0 $1 1.0 19 % CAGR CAGR $4 .0 3-Year – 21% 18 % $9 .0 3-Year – 19% 5-Year – 21% 5-Year – 19% 17 % $3 .0 $7 .0 16 % $2 .0 $5 .0 15 % $1 .0 14 % $3 .0 20 18 20 19 20 20 20 21 20 2
Slide 34: Investment Highlights
Investment Highlights Market Revenue Profitability Cash Flow Positioning & Balance Sheet • Well positioned in a large $700B+ • Industry leading 3- and 5-Year • Stable operating margins • $600M of cash flow from market revenue CAGR of 21% for operations for the last 12 months1 • Demonstrated ability
Slide 35: EPAM Proprietary & Confidential.
EPAM Proprietary & Confidential. 35
Slide 36: Footnotes
1. As of September 30, 2024 2. Forrester Wave™: Digital Platform Engineering Services, Q2 2016 3. Gartner Market Opportunity Map: IT Services, Worldwide. March 2024 - ID G00806430 4. Non-GAAP Operating Margin excludes stock-based compensation expenses, acquisition-related costs including amortizatio