Hexaware Technologies Limited · NSE:HEXT

Hexaware Technologies — Q1 2019 Earnings Presentation

19 slides from Hexaware Technologies's earnings presentation, Apr 24, 2019

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

    I-'EXAWARE Date: 24th April, 2019 To, To, The Manager Listing, The Manager Listing, Bombay Stock Exchange Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. en, G Block, Fort, Bandra-Kurla Complex Mumbai - 400 023 Bandra (E), Mumbai - 40

  2. Slide 2: Investor Update Q1 2019

    Investor Update Q1 2019 24‘ April 2019 © Hexaware Technologies. All rights reserved. | www.hexawa

  3. Slide 3: Safe Harbor Statement

    Safe Harbor Statement HEXA' Certain statements on this presentation concerning our future growth prospects a forward-looking statements, which involve a number of risks, and uncertainties that co cause actual results to differ materially from those in such forward-looking statements. T risks and unc

  4. Slide 4: Business Update

    Q1 2019 Business Update

  5. Slide 5: Key Highlights

    .,. Key Highlights HEXA1 I~ Q1 Revenue $ 180.0M ~ Q1 EBITDA* 15.0% A Q1 EPS ~ 4.65 • Q/Q growth of 2.2%; 2.0% in CC • Q1 EBITDA of $ 27M • Q/Q EPS growth of 12.0% • YIY growth of 10.9%; 13.0% in CC • Q/Q change of -0.2% NN Wins ., ••, Closing Headcount ? $ 36M , 16,509 I~ Dividend f 2.5 • High growt

  6. Slide 6: Q1 19 Financial Performance

    Q1 19 I Financial Performance .,. HEXAl GROWTH GROWTH Amounts in US$ Mn Q1 2019 Q42018 Q12018 QoQ YoY Revenue I 180.0 I 176.1 2.2% 162.2 10.9% EBITDA (before ESOP cost) I 27.6 I 28.1 -1.8% 26.5 3.9% EBITDA 0/0 - I 15.3% I 15.9% -0.6% I I 16.40/0 I -1.1% EBITDA (after ESOP cost) I 27.0 I 26.8 0.6% 25

  7. Slide 7: Revenue Walk QoQ

    Revenue Walk I QoQ HEXA' + .~ $M 181 2.2 180.0 179 1.2 177 175 I •. A , 176.1 I Iii': 0.5 I 173 171 169 167 165 Q418 Forex Calendar (incl. Volume Q1 19 Furlough) ·I_·r1 •.,~ • I I 1 __ ... ,11 o Increases • Decreases www.hexaware.coml© Hexaware Technologies. All rights reserve

  8. Slide 8: EBITDA Walk QoQ

    EBITDA* Walk I QoQ HEXAtJ +1 % of revenue 15.5 I 15.2 15.0 - 1.0 - 15.0 I lE- I 0.2 14.5 I •. I (0.4) (0.3) b'1· I I. ~ 14.0 I III. : I (0.8) I _.~. I 13.5 13.0 12.5 12.0 0418 Forex H1BVisa Calendar (incl. Other costs SG&A Q1 19 Furlough) ·I1~._II~ ..•• r, o Increases - Decreases www.hexaware.coml©

  9. Slide 9: Improved Depth of Customer Relationships

    Improved Depth of Customer Relationships HEXA\ + Q1 19 vs Q118 Top 20 accounts Q12018 Q12019 CONTRIBUTION dJJd TOP CLIENTS GROWTH QoQ $50+/" CD CD Top 5 Clients -0.3% 1.5% $3O-$~CD CD $20 - $30 ' -. ~.'. CD CD Top 10 Clients -0.5% 1.2% $10 - $20 t' - --_-.~-.....•...... .....• - ~- ---...,..•. CD CD

  10. Slide 10: NN Wins

    NN Wins HEXA\ + USD 36 million NN Deal wins in Q1-19 f) Digital consulting for a management consulting company f) Cloud native development for a shipping services company f) Consulting and creating data lake for a multinational commercial bank f) Application modernization using MuleSoft for an insur

  11. Slide 11: Employee Metrics

    Employee Metrics HEXA\ + I UTILIZATION I I EMPLOYEE ATTRITION -, Utilization maintained at steady rate Uptick in Attrition 18.2 80.8% 80.9% 81.3% 14.4% 13.8% 13.7% 13.1% 13.4% 01 02 03 04 01 02 03 04 01 01 02 03 04 01 02 03 04 01 2017 2017 2017 2017 2018 2018 2018 2018 2019 2017 2017 2017 2017 2018

  12. Slide 12: Q1 19 Broad based growth across portfolio

    Q1 19 I Broad based growth across portfolio ~ HEXA~ M&C,17.2% .~ .,.__ . PS,14.3% BFS,40.8% IMS, America, 76.1% DA, H&I,18.3% GTT,9.5% 17.5% GROWTH HORIZONTAL QoQ GROWTH VERTICAL ADM 0.5% GROWTH GROWTH -- GEOGRAPHY ES 2.0% -2.91 ~. BFS II -0.9% 3.8% DA 2.5% 1.89 J. - .. _ North America GTT -1.6% -19

  13. Slide 13: Guidance Update

    Guidance Update ~ HEXA\ CQGR ask to deliver Amounts in $ M Q12019 FY 13% YN Growth Revenue 180.0 4.10/0 EBITDA* 27.0 7.5%> Target as mid-point of guidance EPS growth to be faster than EBITDA* growth, driven by: • Forex hedge gains (assumes exchange rates for 02-04 to be same as 01 closing rates) • E

  14. Slide 14: Finance Update

    Finance Update

  15. Slide 15: Revenue

    Revenue HEXA\ +, 180.0 Key Highlights I USDM I o Q1'19 revenue of$180 M • Q/Q growth of 2.2%, 2.0% in CC • YN growth of 10.9%, 13.0% in CC Q2'18 Q3'18 Q4'18 Q1'19 o Q1'19 revenue of INR 12,640 M i-O/Q 1 3.8%- W.6% I 3.0% i --2-~2% I I t YIY I. , 1-0~3% I 11~ 1~/~ ~ 12.8% __ _ 10.9% • Q/Q growth of 0

  16. Slide 16: Outstanding Hedge Position and Rates

    Outstanding Hedge Position and Rates HEXA' + Outstanding Hedge Position Avg. Rate Q1' 19 Currency Pair Q2'18 Q3'18 Q4'18 Q1'19 Amount SM. USDINR ($) 70.14 70.81 71.83 72.93 196.80 EURNR (€) 85.61 86.91 88.22 89.08 6.54 GBPNR (£) 95.37 97.16 98.70 99.11 13.08 Total ($ M) 221.27 Note - 1. Hedges outst

  17. Slide 17: Forex Gain/(Loss)

    Forex Gain/(Loss) HEXA\ + [-usD!i] 4.3 • 01'19 registered a forex loss ( 3.3 $1.2 M 3.0 • Forex Gains expected in nex 0.92 1.06 two quarters basis 0 1 closin; exchange rate of INR 69.16 pe USD are: 01'18 02'18 03'18 02'19F 03'19F • 02'19 - $ O.92M • 03'19 - $1.06M (1.2) (3.62) ·: ' I.1 .•.•. 1._- II

  18. Slide 18: Balance Sheet & Other Updates

    Balance Sheet & Other Updates HEXA~ +~ Cash Balance ($M) DSO (days) 83 81 125.9 74 75 58 60 47 47 -Billed -Unbill, 27 28 25 21 23 -Total 01'18 02'18 03'18 04'18 01'19 01'18 02'18 03'18 04'18 01'19 Dividend (INR per share) Effective Tax Rate (ETR) 2.5 2.5 2.5 2.5 25.2% 18.4% 01'18 02'18 03'18 04'18 0

  19. Slide 19: Hexaware closing slide

    ti FIEXAWARE Innovative Services Passionate Employees Delighted Customers Veale you www.hexaware.com

Hexaware Technologies — Q1 2019 Earnings Presentation on 6ix