Hexaware Technologies Limited · NSE:HEXT

Hexaware Technologies — Q2 2018 Earnings Presentation

21 slides from Hexaware Technologies's earnings presentation, Jul 24, 2018

  1. Slide 1: Cover letter to stock exchanges on analyst presentation

    • I. I-'EXAWARE Date: 24th July, 2018 To, To, The Manager Listing, The Manager Listing, Bombay stock Exchange Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Fort, Sandra-Kurla Complex Mumbai - 400 023 Sandra (E), Mumba

  2. Slide 2: Investor Update Q2 2018

    ti. HEXAWARE Investor Update Q2 2018 24th July 2018

  3. Slide 3: Safe Harbor Statement

    Safe Harbor Statement ti. HEXAWARE Certain statements on 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

  4. Slide 4: Our year Journey

    Our 4 year Journey

  5. Slide 5: Fastest organically growing IT services company

    Fastest organically growing IT services company ... fi. HEXAWARE Revenue Growth PAT Growth Market Cap EPS Growth Quarter ending June 14 to Quarter ending June 18 -• Persistent NIiTTech Zensar www.hexaware.coml<C> Hexaware Technologies. All rights reserved. •

  6. Slide 6: Business Update Q2

    Business Update Q2

  7. Slide 7: Key Financials for Q2 2018

    Key Financials for Q2 2018 fl HEXAWARE GROWTH GROWTH Q22018 Q1 2018 QoQ YoY Revenue 168.3 162.2 3.8% 10.3% EBITDA * (before ESOP cost) 27.6 26.5 4.0% 3.6% EBITDA * % 16.4% 16.4% 0.0% -1.1% EBITDA (after ESOP cost) 26.2 25.1 4.3% 5.7% EBITDA % 15.6% 15.5% 0.1% -0.6% PAT 22.7 20.7 9.5% 19.5% PAT % 13.

  8. Slide 8: Revenue Analysis - QoQ

    Revenue Analysis - QoQ fi. HEXAWARE 4.9% Volume Growth j 170 165 162.2 5.06 2.78 0.11 - (1.50) (0.36) 168.3 160 ! C: ~ Cl 155 Vl IJ Increases ~ • Decreases 150 145 ...• 00 E'" ro ~ )( ~'" •..'"'" ...• 00 ...• :::l "0 c:f (5 C b~ '" a: N o > a'" ~c rI.. · • - • - ':::l" C iii 'c" :::l E ':::l" C On;

  9. Slide 9: Gross Margin Analysis - QoQ

    Gross Margin Analysis - QoQ fi HEXAWARE 0.84 - - (0.12) 34.00 33.7 0.52 (0.74) (0.14) 33.00 (0.51) 32.6 (0.97) D Increases 32.00 • Decreases SG&A..v 117 bps QoQ 31.00 Volume Leverage 66 ,.co., ,.., ~ ~ x c 0 '" .10 c 'fij '" J!i 011 u>- co ,.., U c: 46 '0 c .'" > OIl Forex Impact 0 QJ co ,.., x '" a

  10. Slide 10: Movement of Top Customers

    Movement of Top 20 Customers fi. HEXAWARE Top 20 Accounts by LTM Revenue Q2 2018 vs. Q2 2017 In Out f) A Multinational printer company f) Large American Fitness brand f) A large European insurance company f) Global Banking & Financial Services Co. f) A European telecom company f) Human Capital Manag

  11. Slide 11: Improved Depth of Customer Relationships

    Improved Depth of Customer Relationships fi HEXAWARE 022017 022018 TOP CLIENTS Top 5 Clients Top 10 Clients Top 20 Clients CONTRIBUTION GROWTH 0.33% -0.02% -0.01% - 4.6% 3.7% 3.7% II Other Clients 0.01% 3.8% @ ® >$1 TOP CLIENTS P"""' P'-,". Q2 18 Top 20 accounts vs their REVENUE quarter GROWTH QoQ T

  12. Slide 12: NN Wins

    NN Wins fi. HEXAWARE USD 41 million NN Deal wins in Q2-18 e Revenue Cycle Management for an American not for profit healthcare company e Automati on led services for a UK based financial services company e Automation services for a Multinational Swiss bank e company Development and Testing services

  13. Slide 13: Employee Metrics

    Employee Metrics fi HEXAWARE UTILIZATION * EMPLOYEE ATTRITION Planned reduction in Utilization Attrition at low levels 16.6% 16.5% 16.1% 80.8% 80.9% 81.3% 79.7% 14.9% 78.6% 78.9% 78.2% 1 38 ~ 137~ 1~4% . 10 . 10 13.1% 13.4% 74.1% 70.0% Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 2016 2016

  14. Slide 14: NA, M&C and BPS led Growth

    NA, M&C and BPS led Growth ti. HEXAWARE A Europe, 1 “ PS, 12.9% : ADM, zs MBC, 16.1% 8° , 127 ey BFS, 42.8% BIB, ma 36.6% sae 13.5% a ES, 10.5% H&d, 17.1% GTT, 11.1% =—y HORIZONTAL GROWTH GROWTH GROWTH GROWTH i) QoQ YoY VERTICAL a iyo EE sees ES 10 YoY © Hexaware Technologies. All rights reserved. |

  15. Slide 15: Guidance

    Guidance ti. HEXAWARE * Revenue 12% to 13% growth ° EPS 13% to 14% © Hexaware Technologies. All rights reserved.| www.hexaware.com 14 |

  16. Slide 16: Finance Update

    Finance Update

  17. Slide 17: Revenue

    Revenue fi. HEXAWARE Q22018 CC revenue at $169.8 mn; l' 4.7% 000; l' 9.9% YoY $ Revenue at $168.3 mn; l' 3.8% 000; l' 10.3% YoY ~ Revenue at Rs 11,367 mn; l' 8.4% 000; l' 15.6% YoY Revenue ($ Mn) -QoQGrowth 168.3 3.9% 032017 042017 012018 022018 032017 042017 012018 022018 Other Income: $545k in 022

  18. Slide 18: Outstanding Hedge Position and Rates

    Outstanding Hedge Position and Rates fL HEXAWARE Outstanding Hedge Position Currency Pair Amount (Mn.) Avg. Rate USDINR ($) 179.18 70.14 EURNR (€) 6.60 85.61 GBPNR (£) 12.58 95.37 Total ($) 203.41 Note - 1.Hedges outstanding are full-term hedges. 2. fUR converted @ 1.1651/USD & GBPconverted @ 1.3147

  19. Slide 19: Forex Gain/(Loss)

    Forex Gain/(Loss) fi. HEXAWARE 5.00 • Total Gain/(Loss) 4.30 • As compared to the forex gain 4.00 of $ 3.00 Mn in 01'18, the forex gain this quarter was $ 1\ I I 4.30 Mn. I ! 3.00 I I I I • Forex gains expected are e I -$0.76 Mn in 03'18 and :E -$0.59 Mn in 04'18 at o 2.00 (J) exchange rate of INR 6

  20. Slide 20: Balance Sheet Updates

    Balance Sheet Updates fi HEXAWARE CASH & CASH EQUIVALENTS Cash and Cash Equivalents at US$ 108.41 Mn ( ~ 7,423 Mn) DAYS SALES OUTSTANDING Days Sales Outstanding (DSO) for 01 2018 at 47 days; 75 days including unbilled DIVIDEND INR 2.50 per share (125%) Dividend Payout including taxes ~ 894.66 Mn ($

  21. Slide 21: Thank you

    Baa feneees Thank you HEXAWARE a” Hl m ey

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