Hinduja Global Solutions Limited

Partha Desarkar

Executive Director and Group CEO, HGS

Srinivas Palakodeti

Global CFO, HGS

Natarajan Radhakrishnan

President and Chief Innovation Officer, HGS

rs,

the labor arbitrage business that we traditionally have been in the last two decades. Our partners, as we pivot towards a more technology driven services company, in- clude AWS, Microsoft, Twilio, Sp

100%

in what the TekLink acquisition brings to HGS. We just signed a definitive agreement to acquire 100% stake for US$ 58.8 million, subject to customary and agreed adjustments. There would be earn out

58.8 million

nk acquisition brings to HGS. We just signed a definitive agreement to acquire 100% stake for US$ 58.8 million, subject to customary and agreed adjustments. There would be earn out based payments in the next

100 million

ues, with the acquisition of TekLink, our digital services revenues will end up being close to $100 million of the total revenue base of about $500 million. So that means about 20% of our revenues going fo

500 million

tal services revenues will end up being close to $100 million of the total revenue base of about $500 million. So that means about 20% of our revenues going forward would come from technology services. Which

20%

being close to $100 million of the total revenue base of about $500 million. So that means about 20% of our revenues going forward would come from technology services. Which is a proof point of ou

8.5 million

emember we acquired a com- pany by the name of “Element Solutions” way back in 2018. It had a ~US$ 8.5 million revenue base; over the last four years, we have grown this technology business by a CAGR of 30%

30%

ion revenue base; over the last four years, we have grown this technology business by a CAGR of 30% year on year. We are not a broad-spectrum IT services company and that segment is increasingly be

97%

d by analysts. In fact, the 2022 Gartner Peer Insights rates them 4.6 out of 5 and also carries a 97% ‘Would recommend’ score from the clients. If you look at TekLink’s service offerings, it's a broa

20.1 million

e some color in terms of their financial perfor- mance. TekLink’s global revenues for CY20 were US$20.1 million; it increased to US$21.8 million in 2021 despite COVID and somewhat depressed market cond

21.8 million

rfor- mance. TekLink’s global revenues for CY20 were US$20.1 million; it increased to US$21.8 million in 2021 despite COVID and somewhat depressed market conditions, and for the first nine months in

22.5 million

and for the first nine months in the current calendar year, their revenues are approx- imately US$22.5 million. This is a significant growth over both 2020 and 2021 and de- spite the market conditions. You can

“The industries that we will target are BFSI, Direct-to-consumer retail or e-commerce (We have significant presence in this area); Technology, Media & Telecom - those who have followed our journey over the last 2 ½ decades know our strength in this seg- ment.”

“We have just signed the transaction and we expect to close it in the next two months.”

“There would be some post signing and pre closure activities that we will be working on for the next two months.”

“So that means about 20% of our revenues going forward would come from technology services.”

“It had a ~US$ 8.5 million revenue base; over the last four years, we have grown this technology business by a CAGR of 30% year on year.”

“We expect to take the data and analytics offering and sell it to HGS Digital cli- ents and similarly take our digital customer experience, digital customer engagement, cloud security, contact center transformation offerings to TekLink customers.”

“Secondly, how many years do you expect these synergies to materialize on the cost and revenue front, and thirdly what percentage share do you see in the existing contribution from the US market post this acquisition.”

“Of course, there will be opportunities on the cost side as well, so we'll have additional 210 people com- ing in as HGS employees in India post the acquisition.”

“And obviously there will be scope for synergies on the cost side, and that should happen fairly quickly post closing.”

“we think those synergies would start coming in fairly quickly once the trans- action is complete and we expect about 90 odd days for the integration to get com- pleted.”

Moderator

7

Natarajan Radhakrishnan

3

Jyoti Singh

3

Partha DeSarkar

2

Jay Shah

2

Hina Parekh

2

Rushabh Shah

1

Nayan Gala

1

Rushabh Shah

Thank you Faizan. Good evening everyone and a warm welcome to the business up- date call of Hinduja Global Solutions Limited. Please note that today’s call is being held to discuss TekLink acquisition and questions should be limited to this. Before we begin the Investor call, I would like to mention that some of the statements made during the course of today's call may be forward looking in nature and may involve risks and un- certainties including those related to the future financial and operating performances, benefits and synergies of the company's strategies, future opportunities and growth of the market of the company's services and solutions. I would further like to mention that if there is a call drop during the course of the conference call, please bear with the management. Thank you and over to you, Partha sir.

Partha DeSarkar

Thank you and a very good evening to all of you who have joined us for this investor call today. It's our pleasure to present to you our latest acquisition “TekLink” which we announced a couple of days back. TekLink is in the data and analytics space, a cru- cial service offering towards pivoting HGS into the technology enabled digital CX field. You would recall that we divested out of the healthcare business in January 2022. Since then, we have acquired quite a few businesses, which are different from the businesses that we used to do in the past. We entered Australia and acquired Di- versify; then we acquired the digital media business of NXTDIGITAL that just got over. We have been focusing our M&A activity on capability building on the digital customer experience side and TekLink with its capabilities in data and insights is the next logical step in that direction. This acquisition is focused on helping us drive digital led cus- tomer experience services and solutions, and as we go

Natarajan Radhakrishnan

Thanks Partha, very good evening again. My sincere thanks to all the investors who are attending this call. Partha has already explained our vision of being a digital experience company, a technology led company. In the last 12 months, we have taken a lot of steps towards that. I would also like to recount the journey of digital over the last few years before talking about this particular acquisition. This is slide #8 of the investor presentation. You would remember we acquired a com- pany by the name of “Element Solutions” way back in 2018. It had a ~US$ 8.5 million revenue base; over the last four years, we have grown this technology business by a CAGR of 30% year on year. We are not a broad-spectrum IT services company and that segment is increasingly becoming commoditized and price competitive. We have cho- sen to focus on the 3As in a cloud-first model, i.e., Automation, Analytics, and Artificial Intelligence. We are gradually moving away from a services led business to a business