HAPPSTMNDS

Happiest Minds Technologies Limited Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bengaluru-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investors@happiestminds.com January 19, 2023 Listing Compliance & Legal Regulatory Listing & Compliance BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai 400 001 Bandra East, Mumbai 400 051 Stock Code: 543227 Stock Code: HAPPSTMNDS Dear Sir/Madam, Sub: Earnings Presentation on the financial results of Q3 for FY’23 Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed a copy of the Earnings Presentation of the financial results of the Company for the quarter ended December 31, 2022 that will be circulated to the Investors/Analysts for the Earnings Call scheduled on January 19, 2023. This is for your information and records. Thanking you, Yours faithfully, For Happiest Minds Technologies Limited Praveen Kumar Darshankar Company Secretary & Compliance Officer Membership No. F6706 Investor Presentation & FACT SHEET: Q3 FY 23 January 2023 About Happiest Minds Next-Gen Digital Transformation, Infrastructure, Security and Product Engineering Services Company Active Clients RoCE1 Digital Agile 55 Fortune2000 / Forbes200 Billion $ Corporations RoE 92% Repeat Business Mission Statement Great Place To Work R Constant Currency  India’s Best Workplaces in IT & IT-BPM Revenue growth of Happiest Minds 2022 YTD across 7 Countries  India's Best Companies to Work for 2022 (FY23 Guidance : 25%) SMILES Values  Asia’s Best Workplaces 2022 Gender Diversity 28% Sharing, Mindful, Integrity, Learning,  Best Workplaces for Women 2022 EBITDA rating on Glassdoor (FY23 Guidance : 22%-24%) Excellence, Social Responsibility Promoter IPO - In September 2020 • Completed 11 years in August 2022 ‘Best • Strong Management Team & Corporate Governance Governed Company’ • 700K+ Investors in Medium Ashok Soota • Robust Growth and Profitability Category Disclaimer: All logos are the property of their respective owners. Note 1 : RoCE1/ RoEis for the nine-month annualized www.happiestminds.com 2 Mission, Vision and Values Our 2021-31 Vision - DELiGHT Our SMILES Values Design for Perpetuity Sharing ESG Excellence Mindful Our Mission Thought Leadership Integrity Happiest People Happiest Customers Profitable Growth Learning Ambassador for Happiness Excellence World Class Team Social Responsibility www.happiestminds.com 3 Our Business IoT Blockchain DevOps & Enterprise Digital Cloud RPA Transformation Next Gen. Product & Platform Engineering Software Defined BPM & Networking / NFV Agile and Secure Integration Infrastructure Big Data & Advanced Security Analytics Hi-Tech EduTech BFSI Mfg. / Industrial Retail / CPG Travel, Media & Health Tech Entertainment (TME) Cownfwidwen.htiaalp –pwiewswt.mhaipnpdiess.tcmoinmds.com 4 Born Digital . Born Agile The Mindful IT Company CREATING MINDFULLY DIGITAL CAPITAL AGILE Business Agile Transformation Organization Business Agile Insights Business Platformize & Agile Modernize Delivery Reimagining Engineering & Operational Customer Experience Excellence Cownfwidwen.htiaalp –pwiewswt.mhaipnpdiess.tcmoinmds.com 5 For one of the largest For a US-based workforce For a global leader in the For a leading US labor and bottlers of beverage development company, design and manufacturing employment law firm, brands in America, Happiest Minds was selected of advanced analytical, test Happiest Minds is helping Happiest Minds was chosen to build their next- and measurement them automate their to establish Microsoft Power generation mentorship instrumentation, Happiest processes with Microsoft Platform COE for them platform Minds was selected as a Power Platform partner for front-end development and automation For a large consulting For a Danish bank, Happiest For a major telecom For a multi-national BPO company in the US, Minds is digitally operator in the Middle and consultancy company Happiest Minds is providing transforming their trading East, Happiest Minds is headquartered in Europe, managed database services platform using Low-Code providing Security Happiest Minds is providing No-Code (LCNC) platform. Assessment services cloud, security and network management services www.happiestminds.com Happiest Minds is a Happiest Minds is a Happiest Minds is a Zinnov Zones Zinnov Zones Everest Happiest Minds is a Happiest Minds is a Zinnov Zones Zinnov Zones www.happiestminds.com 7 Happiest Minds is recognized among ‘ Priya Kanduriconferred by Great Place To Work® Institute at Internet 2.0 Conference, Dubai Happiest Minds has won GOLD for its 2022 Integrated Annual Report at the Sushilkumar Nahar recognized as a at the Happiest Minds has won CULT.fit www.happiestminds.com Happiest Minds wins multiple awards at the CS Praveen Kumar Darshankar Ashok Soota conferred presented the www.happiestminds.com 9 Operational and Financial Metrics – Q3 FY23 www.happiestminds.com Results Q3 FY 23 All amounts in ₹ Lakhs unless stated otherwise Particulars Q3 FY 23 Q2 FY 23 QoQ Q3 FY 22 YoY 9M FY23 9M FY22 YoY Revenues ($'000) 45,279 44,347 2.1% 37,796 19.8% 131,850 106,758 23.5% Constant Currency Growth - - 2.8% - 22.6% - - 26.0% Revenues 36,688 35,551 3.2% 28,394 29.2% 105,131 79,308 32.6% Other Income 780 382 - 834 - 1,266 2,719 - Total Income 37,468 35,933 4.3% 29,228 28.2% 106,397 82,027 29.7% EBITDA 9,726 9,434 3.1% 7,688 26.5% 27,935 21,258 31.4% % 26.0% 26.3% 26.3% 26.3% 25.9% PBT before Exceptional Item 8,158 8,011 1.8% 6,543 24.7% 23,727 18,206 30.3% % 21.8% 22.3% 22.4% 22.3% 22.2% Exceptional Item* (634) - - (634) (609) PBT 7,524 8,011 (6.1)% 6,543 15.0% 23,093 17,597 31.2% % 20.1% 22.3% 22.4% 21.7% 21.5% Tax 1,766 2,070 - 1,651 - 5,760 4,688 - % 4.7% 5.8% 5.6% 5.4% 5.7% PAT 5,758 5,941 (3.1)% 4,892 17.7% 17,333 12,909 34.3% % 15.4% 16.5% 16.7% 16.3% 15.7% * Loss on Fair Valuation of Warrant Liability www.happiestminds.com 11 Born Digital. Born Agile Digital Agile % of Revenue % of Revenue 96.9% 96.8% 96.5% 96.0% 96.8% 96.6% 96.8% 96.5% 93.9% 93.4% 93.4% 93.4% 93.1% 93.3% 94.0% 87.9% FY20 FY21 FY22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 FY20 FY21 FY22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Split by Client Relationships > 5 yrs 0-5 yrs % of Clients 27.0% 47.0% 50.0% 73.0% 53.0% 50.0% FY20 FY21 FY22 www.happiestminds.com 12 Operational & Financial Metrics Revenue Revenue by BU Total Income (₹ Lakhs) 113,075 2.1% 79,765 21.1% 71,423 46.7% 37,468 35,933 32,996 31,048 29,228 30.1% FY20 FY21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 PES DBS IMSS Oth Inc PES : Product Engineering Services; DBS : Digital Business Solutions; IMSS : Infrastructure Management and Security Services www.happiestminds.com 13 Operational & Financial Metrics EBITDA High FCF Conversion (₹ Lakhs) Margin % (₹Lakhs) 98.6% Eleven successive quarters of delivering 26.1% EBITDA margins > 25% 99.6% 29,477 27.0% 99.6% 21,573 26.3% 26.3% 26.6% 26.3% 26.0% 29,064 95.8% 90.9% 98.5% 15.8% 99.4% 21,476 99.4% 11,312 9,434 9,726 8,775 8,158 7,688 11,266 9,315 7,642 8,106 8,639 8,580 FY 20 FY 21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 FY 20 FY 21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Note: 1. FCF = Free Cash Flow Conversion = FCF/EBITDA and FCF = EBITDA –Capex. (Non-GAAP Measure) www.happiestminds.com 14 Operational & Financial Metrics Happiest Minds & Utilization 79.5% 80.5% 81.0% 79.4% 79.1% 80.6% 80.1% 76.9% 4,581 4,611 4,168 4,021 4,168 4,188 3,228 2,666 FY20 FY21 FY22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 22.7% 22.7% 24.4% 23.5% 21.1% 20.9% 18.7% 12.4% 95.4% 94.9% 95.9% 95.4% 95.9% 95.6% 95.4% 95.1% 4.6% 5.1% 4.1% 4.6% 4.1% 4.4% 4.6% 4.9% FY 20 FY 21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 FY 20 FY 21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Onsite Offshore Note 1: Trailing 12 Months www.happiestminds.com 15 Operational & Financial Metrics Revenue Model Q3 23 Model Geography DigitalRevenue1 Vertical1 7.7% 5.2% 3.5% 8.2% 10.0% 23.2% 12.5% 26.4% 15.4% 9.2% 45.4% 9.4% 13.4% 10.3% 15.7% 67.5% 73.6% 20.1% 13.1% 10.4% Americas Europe India ROW Digital Infra / Cloud SAAS Edu Tech Hitech Retail / CPG T&M FP Security Analytics / AI TME BFSI Industrial IoT Others MFG Others Revenue Concentration3 Million $ Customers2 (% Revenue) (#) 57.9% 40 40 38 38 38 32 42.6% 25 26 29.9% 12.8% FY20 FY21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Top 1 Top 5 Top 10 Top 20 Notes: 1. TME: Travel, Media & Entertainment, 2. Based on quarterly revenues annualized. 3. Top 20 includes Top 1, 5 & 10 www.happiestminds.com 16 Operational & Financial Metrics Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 810 812 794 796 794 774 634 615 77.5% 81.0% 84.5% 85.7% 85.7% 85.7% 84.7% 84.8% 22.5% 19.0% 15.5% 14.3% 14.3% 14.3% 15.3% 15.2% FY 20 FY 21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 FY 20 FY 21 FY 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Onsite Offshore www.happiestminds.com 17 Operational & Financial Metrics FY20 FY21 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 FY23 Q2 FY23 Q3 Customer Industry group Edutech 21.3% 25.6% 22.6% 23.6% 23.2% 23.7% 23.8% 23.2% Hitech 21.0% 18.2% 18.3% 16.7% 15.8% 15.6% 16.6% 15.7% BFSI 17.5% 16.4% 12.5% 13.7% 13.2% 13.7% 14.2% 10.3% Travel, Media and Entertainment (TME) 17.1% 13.6% 12.3% 13.7% 13.2% 12.7% 12.5% 13.1% Retail / CPG 7.5% 5.4% 10.6% 10.1% 10.3% 10.0% 8.9% 10.4% Industrial 7.0% 7.1% 7.3% 6.6% 6.9% 8.2% 7.7% 9.2% Manufacturing 3.7% 6.6% 9.4% 10.1% 8.6% 10.0% 10.4% 10.0% Others 4.9% 7.1% 6.9% 5.4% 8.8% 6.1% 5.8% 8.2% Digital Service Offerings Digital infrastructure/Cloud 31.2% 41.6% 43.6% 45.5% 43.6% 45.7% 45.4% 45.4% SaaS 29.4% 22.7% 19.6% 21.7% 20.3% 21.5% 21.3% 20.1% Security Solutions 14.9% 8.7% 12.2% 11.8% 11.9% 11.7% 12.3% 13.4% Analytics/AI 11.6% 13.3% 11.9% 11.3% 12.1% 11.6% 12.8% 12.5% IoT 9.8% 10.5% 8.5% 6.6% 8.6% 6.2% 5.1% 5.2% Total 96.9% 96.8% 96.0% 96.8% 96.5% 96.6% 96.8% 96.5% Automation as a % of total revenue 20.7% 25.2% 27.1% 26.2% 25.4% 26.0% 25.4% 27.7% www.happiestminds.com 18 Operational & Financial Metrics FY20 FY 21 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 FY23 Q2 FY23 Q3 Revenue by Customer Geo USA 77.6% 73.4% 66.6% 65.7% 66.4% 66.6% 67.9% 67.5% India 11.9% 11.8% 14.6% 16.2% 14.1% 15.8% 16.1% 15.4% Europe 7.1% 10.4% 9.8% 10.4% 10.4% 10.7% 9.3% 9.4% ROW 3.4% 4.4% 9.0% 7.8% 9.0% 6.9% 6.7% 7.7% 1 Million $ Customers $ 10 M + 1 1 1 1 1 2 2 2 $ 5M to $ 10M - 3 4 4 4 4 4 4 $ 3M to $ 5M 9 6 4 8 8 7 7 7 $ 1M to $ 3M 15 16 23 25 25 25 27 27 Total 25 26 32 38 38 38 40 40 Tenure 0 - 5 Years 73.0% 53.0% - - 50.0% - - - > 5 Years 27.0% 47.0% - - 50.0% - - - Revenue Mix Onsite 22.5% 19.0% 14.3% 14.3% 15.5% 14.3% 15.3% 15.2% Offshore 2 77.5% 81.0% 85.7% 85.7% 84.5% 85.7% 84.7% 84.8% Revenue by contracting Model Fixed Price 19.0% 21.7% 25.7% 24.5% 25.1% 24.9% 24.4% 26.4% Time and Material 81.0% 78.3% 74.3% 75.5% 74.9% 75.1% 75.6% 73.6% Active customers # of active customers 157 173 195 206 206 211 226 230 Billion $ corporation # of customers 37 46 53 54 54 56 54 55 Note: 1: Based on quarter revenue annualized 2: Offshore: Revenues from customers served from India; www.happiestminds.com 19 Operational & Financial Metrics FY20 FY21 FY22 Q3 FY22 Q4 FY22 FY23 Q1 FY23 Q2 FY23 Q3 Happiest Minds Onsite 123 166 183 172 172 185 210 228 Offshore 2,543 3,062 3,838 3,996 3,996 4,003 4,371 4,383 Total 2,666 3,228 4,021 4,168 4,168 4,188 4,581 4,611 Happiest Minds % Onsite 4.6% 5.1% 4.6% 4.1% 4.1% 4.4% 4.6% 4.9% Offshore 95.4% 94.9% 95.4% 95.9% 95.9% 95.6% 95.4% 95.1% Utilization % 76.9% 79.5% 81.0% 79.4% 80.5% 79.1% 80.6% 80.1% Diversity Women Happiest Minds 24.0% 24.5% 26.1% 26.4% 26.4% 26.0% 27.6% 27.7% DSO Billed 60 57 61 55 55 58 60 60 Unbilled 23 28 32 35 35 36 31 29 Total 83 85 93 90 90 94 91 90 EPS ₹ Diluted 5.36 11.45 3.38 3.58 12.55 3.88 4.09 3.98 1 Capital Return Ratios RoCE 28.9% 31.2% 32.9% 34.8% 34.8% 39.1% 35.2% 34.9% RoE 27.1% 29.8% 28.2% 27.3% 27.3% 31.5% 31.3% 29.4% Note: 1: Capital Return Ratios are YTD Annualized www.happiestminds.com 20 Operational & Financial Metrics FY20 FY21 FY22 Q3 FY22 Q4 FY22 FY23 Q1 FY23 Q2 FY23 Q3 (All figures in ₹ Lakhs) Revenue by BUs IMSS 15,361 21.5% 16,421 20.6% 6,322 21.6% 6,848 22.1% 24,168 21.4% 7,356 22.3% 7,902 22.0% 7,912 21.1% DBS 19,167 26.8% 21,288 26.7% 8,511 29.1% 8,762 28.2% 32,891 29.1% 9,903 30.0% 10,722 29.8% 11,266 30.1% PES 35,293 49.4% 39,632 49.7% 13,561 46.4% 14,447 46.5% 52,308 46.3% 15,633 47.4% 16,927 47.1% 17,511 46.7% Total Revenue 69,821 97.8% 77,341 97.0% 28,394 97.1% 30,057 96.8% 109,367 96.7% 32,892 99.7% 35,551 98.9% 36,688 97.9% Other income 1,602 2.2% 2,424 3.0% 834 2.9% 991 3.2% 3,708 3.3% 104 0.3% 382 1.1% 780 2.1% Total income 71,423 100% 79,765 100% 29,228 100% 31,048 100% 113,075 100% 32,996 100% 35,933 100% 37,468 100% IMSS: Infrastructure Management & Security Services DBS : Digital Business Services PES: Product Engineering Services 21 www.happiestminds.com Summary Profit & Loss Statement (All figures in ₹ Lakhs) FY 20 FY 21 FY 22 Q3 FY 22 Q4 FY 22 FY 23 Q1 FY 23 Q2 FY 23 Q3 Income Operating revenue 69,821 77,341 28,394 30,057 109,365 32,892 35,551 36,688 Other income 1,602 2,424 834 991 3,710 104 382 780 Total income 71,423 79,765 29,228 31,048 113,075 32,996 35,933 37,468 Cost of revenue 42,927 44,382 16,591 17,289 64,404 18,499 20,592 21,394 Gross margin 26,894 32,959 11,804 12,768 44,961 14,393 14,959 15,294 % 38.5% 42.6% 41.6% 42.5% 41.1% 43.8% 42.1% 41.7% SG&A 17,184 13,810 4,949 5,601 19,193 5,722 5,907 6,348 % 24.6% 17.9% 17.4% 18.6% 17.5% 17.4% 16.6% 17.3% EBITDA 11,312 21,573 7,688 8,158 29,477 8,775 9,434 9,726 % 15.8% 27.0% 26.3% 26.3% 26.1% 26.6% 26.3% 26.0% Depreciation 2,023 2,274 847 884 3,288 934 971 992 % 2.9% 2.9% 3.0% 2.9% 3.0% 2.8% 2.7% 2.7% EBIT 9,289 19,299 6,841 7,274 26,189 7,841 8,463 8,734 % 13.0% 24.2% 23.4% 23.4% 23.2% 23.8% 23.6% 23.3% Finance cost 802 697 298 286 995 283 452 576 PBT before exceptional 8,487 18,602 6,543 6,988 25,194 7,558 8,011 8,158 item* % 11.9% 23.3% 22.3% 22.4% 22.2% 22.9% 22.3% 21.8% Exceptional Items+ 1,126 - - - 609 - - 634 PBT * 7,361 18,602 6,543 6,988 24,585 7,558 8,011 7,524 % 10.3% 23.3% 22.4% 22.5% 21.7% 22.9% 22.3% 20.1% Current tax 190 3,527 1,466 1,737 6,310 2,325 1,638 2,335 Deferred tax - (1,171) 185 40 155 (401) 432 (569) Total Tax 190 2,356 1,651 1,777 6,465 1,924 2,070 1,766 % 0.3% 3.0% 5.6% 5.7% 5.7% 5.8% 5.8% 4.7% PAT * 7,171 16,246 4,892 5,211 18,120 5,634 5,941 5,758 % 10.0% 20.4% 16.7% 16.8% 16.0% 17.1% 16.5% 15.4% +Exceptional items for FY20 refer to Impairment of Goodwill, for FY22 & Q3 FY23 refers to Loss on Fair Valuation of Warrant Liability www.happiestminds.com 22 (All figures in ₹ Lakhs) 31.03.2020 31.03.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.09.2022 31.12.2022 Assets Non-current Assets Property, plant and equipment 93 69 86 77 78 89 12,894 12,899 Goodwill 610 7,644 7,742 7,772 7,896 8,202 8,430 8,562 Financial & Other assets 5,598 10,029 11,604 20,609 11,788 24,594 34,347 77,536 Total non-current assets (A) 6,301 17,742 19,432 28,458 19,762 32,885 55,671 98,997 Current assets Financial & Other assets i. Trade receivable 11,487 12,192 16,064 18,212 16,738 20,937 22,408 23,250 ii. Cash & Cash equivalents, Investments & Other financial assets 31,967 60,928 63,790 59,928 72,609 65,503 55,746 17,061 iii. Other assets 1,060 1,333 2,367 2,655 3,392 1,782 3,420 2,811 Total current assets (B) 44,514 74,453 82,221 80,795 92,739 88,222 81,574 43,122 Total assets (A + B) 50,815 92,195 101,653 109,253 112,501 121,107 137,245 142,119 Equity and Liabilities Total equity (A) 26,531 54,599 58,498 61,035 66,580 71,907 74,591 77,791 Non-current liabilities Financial liabilities 1,863 7,339 9,431 12,907 7,134 8,761 18,759 18,678 Provisions & Deferred tax liability 1,255 2,378 2,334 2,340 2,086 1,966 2,205 2,344 Total non-current liabilities (B) 3,118 9,717 11,765 15,247 9,220 10,727 20,964 21,022 Current liabilities Financial & Contract liabilities i. Trade payable 3,442 4,101 6,670 5,775 6,072 6,967 6,907 5,779 ii. Others 15,947 20,340 20,711 23,340 26,266 27,230 30,697 33,767 Provisions & Other current liabilities 1,777 3,438 4,009 3,856 4,363 4,276 4,086 3,760 Total current liabilities (C) 21,166 27,879 31,390 32,971 36,701 38,473 41,690 43,306 Total liabilities (D = B + C) 24,284 37,596 43,155 48,218 45,921 49,200 62,654 64,328 Total equity and liabilities (A + D) 50,815 92,195 101,653 109,253 112,501 121,107 137,245 142,119 23 www.happiestminds.com investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com