HAPPSTMNDS

Happiest Minds Technologies Limited (formerly known as Happiest Minds Technologies Pvt Ltd) Regd. Office : #53/1-4, Hosur Main Road, Madivala, Bangalore-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 www.happiestminds.com February 10, 2021 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 & nine months for FY’21 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 and nine months ended as on December 31,2020 that will be circulated to the Investors/Analysts for the Earnings Call scheduled on February 11, 2021. 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 21 February 2021 This presentation may contain certain forward-looking statements, which involves risks and uncertainties that could cause our future results to differ materially from those in such forward- looking statements. The COVID-19 pandemic could decrease our customers’ technology spend, delaying prospective customers’ purchasing decisions, and impact our ability to provide services; all of which could adversely affect our future revenue, margin and overall financial performance. Our operations could also be negatively impacted by a range of external factors not within our control including those due to the pandemic. We do not undertake to update any of our forward-looking statements that may be made from time to time by us or on our behalf. 2 www.happiestminds.com Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company IPO Digital Digital Agile Active clients In September 2020 RoCE1 • 100 % digitally 38 Fortune2000 / Forbes200 / executed IPO Billion $ corporations • Heavily 93% of repeat business 2 RoE oversubscribed with healthy listing gains Mission Statement Reflects Happiest • Our growth and • Ranked IT Services Minds • Top India’s Best Workplaces rating profitability for Women • Management Team SMILES Values 7 • Top India’s Best Workplaces on Glassdoor & Corporate Sharing, Mindful, Integrity, across Countries • Top India’s Best Workplaces #2 for Indian IT Services governance Learning, Excellence, Social for IT/IT-BPM Responsibility Promoter Ashok Soota 2019 3 www.happiestminds.com *All logos are properties of their respective owners Note 1: Trailing 12 months Revenue from existing customers; 2: ROCE / ROE is nine months annualized IoT Blockchain DevOps & RPA Cloud Software Defined Networking / NFV BPM & Integration Big Data & Adv. Analytics Security BFSI Edutech Hi-Tech Mfg/Industrial Retail Travel & Hosp. 4 www.happiestminds.com L E earning xcellence I ntegrity S ocial R esponsibility M indful S haring Our Mission Happiest People . Happiest Customers Happiest Minds is the first Indian IT firm to be The Mindful IT Company Achieve a very Be the Happiness Be known as the Be recognized for Be a leader in successful IPO by or Evangelists for each company with highest Thought Leadership in Social Responsibility before FY23 and in the other, our standards of our focused areas of initiatives interim provide a Customers and Corporate technology and monetization event for Society Governance solutions investors/team by FY20 5 www.happiestminds.com Business Agile Transformation Organization Agile Business CREATING MINDFULLY DIGITAL AGILE CAPITAL Platformize and Agile Modernize Delivery Reimagining Engineering & Customer Experience Operational Excellence 6 www.happiestminds.com Particulars Q3 FY 21 Q2 FY 21 QoQ Q3 FY 20 YoY 9M FY 21 9M FY 20 YoY Revenue ($'000) 26,202 24,712 6.0% 24,085 8.8% 74,358 72,735 2.2% Revenue (₹ lakhs) 1 20,129 18,791 7.1% 17,557 14.6% 57,433 52,402 9.6% EBITDA (₹ lakhs) 5,969 4,939 20.9% 2,811 112.3% 15,690 8,749 79.3% EBITDA % 29.7% 26.3% 337 bps 16.0% 1364 bps 27.3% 16.7% 1062 bps PAT (₹ lakhs) 4,215 3,408 23.7% 2,138 97.1% 12,641 6,641 90.3% PAT % 20.9% 18.1% 280 bps 12.2% 876 bps 22.0% 12.7% 934 bps Note: 1. Total Income 8 www.happiestminds.com Digital Agile % of Revenue % of Revenue 92.8% 92.8% 90.2% 87.9% 97.2% 96.9% 97.1% 96.6% 96.3% 71.1% FY 19 FY20 Q1 21 Q2 21 Q3 21 FY19 FY20 Q1 21 Q2 21 Q3 21 9 www.happiestminds.com Total Revenue EBITDA Total revenue mix (Q3 FY 21)1 (₹ Lakhs) % Margin Total Income (₹ Lakhs) 4.2% 1.6% 11.0% 15.8% 25.6% 26.3% 29.7% 21.5% 71,423 60,181 48,912 11,312 49.5% 24.8% 6,628 5,969 4,782 4,939 18,699 18,791 20,129 762 IMSS DBS PES Oth Inc FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 High FCF2 conversion Utilization & Happiest Minds, offshore/onsite Voluntary Attrition % 3 (₹ Lakhs) % FCF Conversion Utilization % 85.2% 98.8% 99.6% 99.8% 99.8% 99.2% 68.4% 77.3% 76.9% 74.9% 78.7% 81.6% 25.2% 2,253 2,462 2,666 2,658 2,721 2,885 18.7% 11,266 16.0% 14.1% 13.1% 6,549 5,920 4,772 4,931 95.3% 94.6% 95.4% 95.3% 95.1% 95.0% 649 4.7% 5.4% 4.6% 4.7% 4.9% 5.0% FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 FY19 FY20 Q1 21 Q2 21 Q3 21 Onsite Offshore Note: 1. Calculated based on total income split, 2. FCF Conversion = FCF/EBITDA and FCF = EBITDA –Capex. 3. Attrition % for TTMTrailing 12 Months 10 www.happiestminds.com Revenue model Q3 21 Model Geography DigitalRevenue1 Vertical1 7.0% 3.8% 11.0% 3.4% 6.9% 22.2% 13.4% 24.9% 41.0% 7.0% 14.4% 10.6% 17.4% 8.7% 20.2% 72.2% 77.8% 21.6% 14.4% 2.2% Digital Infra / Cloud SAAS T&M FP Americas Europe India ROW Edu Tech Hitech Retail TME Security Analytics / AI BFSI Industrial MFG Others IoT Others Revenue Concentration3 Million $ Customers2 (% Revenue) (#) 66.5% 49.4% 25 23 24 25 21 34.4% 16 14.8% FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 Top 1 Top 5 Top 10 Top 20 1111 www.happiestminds.com Notes: 1. TME: Travel, Media and Entertainment, 2. Based on quarter revenues on an annualized basis. 3. Top 20 includes Top 1, 5& 10 Onsite/Offshore Avg. annual revenue / active customer By Revenue (USD ‘000) 683 659 615 615 502 78.6% 78.0% 77.5% 79.0% 78.1% 81.0% 471 21.4% 22.0% 22.5% 21.0% 21.9% 19.0% FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 FY18 FY19 FY20 Q1 21 Q2 21 Q3 21 Onsite Offshore 1122 www.happiestminds.com 13 www.happiestminds.com C u s t o m e r I n d u s t r y g r o E d u t e c h H it e c h B F S I T r a v e l, M e d ia a n d E n t e r t a in m e n t ( T M E ) R e t a il In d u s t r ia l M a n u fa c t u r in g O t h e r s D i g i t a l S e r v i c e O f f e r i n D ig it a l in fr a s t r u c t u r e / C lo S a a S S e c u r it y s o lu t io n s A n a ly t ic s / A I Io T T o t a l A u t o m a t i o n a s a % o f r e v e n u e u g u t o p s d t a l F Y 1 1 2 1 1 1 8 8 4 7 1 7 6 3 2 . . . . . . . . 0 6 9 0 0 2 2 3 % % % % % % % % - - - - - - F Y 1 9 2 1 2 1 1 8 1 3 6 8 3 6 4 0 2 8 1 0 9 8 9 7 . 3 . 0 . 2 . 8 . 9 . 1 . 8 . 9 . 9 . 6 . 2 . 1 . 4 . 2 % % % % % % % % % % % % % % F Y 2 0 2 1 2 1 1 7 1 7 7 7 3 4 3 1 2 9 1 4 1 1 9 9 6 2 0 . 3 . 0 . 5 . 1 . 5 . 0 . 7 . 9 . 2 . 4 . 9 . 6 . 8 . 9 . 7 % % % % % % % % % % % % % % % F Y 2 1 Q 2 2 1 1 4 2 1 9 2 7 0 7 2 5 6 5 4 3 3 7 2 9 6 4 1 . 0 . 5 . 4 . 9 . 7 . 4 . 6 . 6 . 7 . 6 . 6 . 1 . 3 . 3 . 2 % % % % % % % % % % % % % % % F Y 2 1 Q 2 1 1 1 4 2 1 1 9 2 7 9 6 3 4 6 6 6 1 4 7 3 0 7 4 2 . 0 . 5 . 3 . 0 . 5 . 9 . 8 . 0 . 1 . 6 . 4 . 5 . 5 . 1 . 3 % % % % % % % % % % % % % % % F Y 2 1 Q 2 4 2 0 1 7 1 4 2 7 6 7 4 1 2 1 8 1 4 1 1 9 6 2 7 3 . 9 . 2 . 4 . 4 . 2 . 0 . 9 . 0 . 0 . 6 . 7 . 4 . 0 . 6 . 8 % % % % % % % % % % % % % % % F Y 2 1 9 M 2 6 . 3 2 0 . 1 1 7 . 0 1 3 . 5 4 . 1 6 . 8 6 . 5 5 . 9 4 1 . 6 2 3 . 4 7 . 6 1 3 . 4 1 0 . 9 9 6 . 8 2 5 . 5 % % % % % % % % % % % % % % % FY18 FY19 FY20 FY21Q1 FY21Q2 FY21 Q3 FY21 9M Location of external customer USA 73.5% 75.5% 77.5% 77.3% 77.3% 72.2% 75.5% India 11.7% 11.9% 11.9% 10.9% 10.9% 13.4% 11.8% Europe 11.4% 9.5% 7.2% 9.8% 9.2% 10.6% 9.9% ROW 3.4% 3.1% 3.4% 2.0% 2.6% 3.8% 2.9% Number of customers based on quarter revenues on an annualized basis (#) $ 10 M + 1 1 1 1 1 1 $ 5M to $ 10M 2 2 - 1 - 2 2 $ 3M to $ 5M 2 1 9 4 6 5 5 $ 1M to $ 3M 12 17 15 17 17 17 17 Total 16 21 25 23 24 25 25 Revenue mix by delivery Onsite 21.4% 22.0% 22.5% 21.0% 21.9% 19.0% 20.6% Offshore 1 78.6% 78.0% 77.5% 79.0% 78.1% 81.0% 79.3% Revenue by Contract type Fixed Price 18.4% 16.8% 19.0% 18.8% 19.3% 22.2% 20.7% Time and Material 81.6% 83.2% 81.0% 81.2% 80.7% 77.8% 79.3% Active customers # of active customers 173 163 157 148 152 155 155 Fortune2000 / Forbes200 / Billion $ corporations # of customers 37 36 39 38 38 14 www.happiestminds.com Note: 1. Offshore: Revenues from customers served from India FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21 9M Happiest Minds Onsite 105 132 123 124 133 145 145 Offshore 2,148 2,330 2,543 2,534 2,588 2,740 2,740 Total 2,253 2,462 2,666 2,658 2,721 2,885 2,885 Happiest Minds by delivery centres Onsite 4.7% 5.4% 4.6% 4.7% 4.9% 5.0% 5.0% Offshore 1 95.3% 94.6% 95.4% 95.3% 95.1% 95.0% 95.0% Diversity Women Happiest Minds 22.0% 23.0% 24.0% 23.4% 23.3% 24.0% 24.0% Utilization Utilization % 68.4% 77.3% 76.9% 74.9% 78.7% 81.6% 78.5% Days Sales Outstanding Billed 74 80 60 51 51 46 48 Unbilled 6 11 23 32 26 31 32 Total DSO (Days) 80 91 83 83 77 77 80 EPS (₹ Per Share) Year / Nine Months 5.36 8.91 Capital Return Ratios % Return on Capital Employed (Year / 28.9% 36.2% Nine Months) Return on Equity (Year / Nine 27.1% 33.2% Months) 15 www.happiestminds.com Note: 1. Offshore: Revenues from customers served from India (All figures in ₹ Lakhs) FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21 9M Revenue by Business Units Infrastructure Management & Security Services 9,862 20.2% 12,943 21.5% 15,361 21.5% 3,641 19.5% 3,959 21.1% 4,334 21.5% 11,934 20.8% Digital Business Solutions 15,403 31.5% 18,090 30.1% 19,167 26.8% 4,598 24.6% 4,710 25.1% 4,985 24.8% 14,293 24.9% Product Engineering Services 21,024 43.0% 28,003 46.5% 35,293 49.4% 9,463 50.6% 9,615 51.2% 9,965 49.5% 29,043 50.6% Total Revenue 46,289 94.6% 59,036 98.1% 69,821 97.8% 17,702 94.7% 18,284 97.3% 19,284 95.8% 55,270 96.2% Other income 2,623 5.4% 1,145 1.9% 1,602 2.2% 997 5.3% 507 2.7% 845 4.2% 2,163 3.8% Total income 48,912 100.0% 60,181 100.0% 71,423 100.0% 18,699 100.0% 18,791 100.0% 20,129 100.0% 57,433 100.0% EBITDA 762 1.6% 6,628 11.0% 11,312 15.8% 4,782 25.6% 4,939 26.3% 5,969 29.7% 15,690 27.3% PAT -2,247 -4.6% 1,421 2.4% 7,171 10.0% 5,018 26.8% 3,408 18.1% 4,215 20.9% 12,641 22.0% 16 www.happiestminds.com Note: EBITDA % and PAT % are calculated as a % of total income Summary Profit & Loss statement (All figures in ₹ Lakhs) FY18 FY19 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 9M Income Operating revenue 46,289 59,036 69,821 17,702 18,284 19,284 55,270 Other income 2,623 1,145 1,602 997 507 845 2,163 Total income 48,912 60,181 71,423 18,699 18,791 20,129 57,433 Cost of revenue 32,652 36,987 42,927 9,978 10,401 11,155 31,534 Gross margin 13,637 22,049 26,894 7,724 7,884 8,129 23,737 % 29.5% 37.3% 38.5% 43.6% 43.1% 42.2% 42.9% SG&A cost 15,498 16,566 17,184 3,939 3,452 3,005 10,210 EBITDA 762 6,628 11,312 4,782 4,939 5,969 15,690 % 1.6% 11.0% 15.8% 25.6% 26.3% 29.7% 27.3% Depreciation 2,075 2,478 2,023 512 512 516 1,540 EBIT (1,313) 4,150 9,289 4,270 4,427 5,453 14,150 % -2.7% 6.9% 13.0% 22.8% 23.6% 27.1% 24.6% Finance cost 995 1,594 802 186 160 126 472 PBT before exceptional items * (2,308) 2,556 8,487 4,084 4,267 5,327 13,678 % -4.7% 4.2% 11.9% 21.8% 22.7% 26.5% 23.8% Exceptional Items + - 1,258 1,126 - - - - PBT * (2,308) 1,298 7,361 4,084 4,267 5,327 13,678 % -4.7% 2.2% 10.3% 21.8% 22.7% 26.5% 23.8% Income tax expense (61) (123) 190 (934) 859 1,112 1,037 PAT * (2,247) 1,421 7,171 5,018 3,408 4,215 12,641 % -4.6% 2.4% 10.0% 26.8% 18.1% 20.9% 22.0% * PBT before exceptional items, PBT and PAT " for FY18 & FY19 are restated as per IndAs, forming part of our offer documents. + Exceptional items for FY19 & FY20 refer to Impairment of Goodwill. 17 www.happiestminds.com Condensed Balance Sheet (All figures in ₹ Lakhs) 31.03.2018 31.03.2019 31.03.2020 30.06.2020 30.09.2020 31.12.2020 Assets Non-current Assets Property, plant and equipment 264 214 93 77 60 72 Goodwill 2,961 1,736 610 610 611 611 Financial & Other assets 7,685 6,003 5,598 6,266 5,788 5,040 Total non-current assets (A) 10,910 7,953 6,301 6,953 6,459 5,723 Current assets Financial & Other assets i. Trade receivable 9,437 12,927 11,487 9,851 10,302 9,765 ii. Cash & Cash equivalents, Investments & Other financial 16,928 19,610 31,967 39,196 52,387 54,286 assets iii. Other assets 1,424 862 1,060 1,308 1,721 1,531 Total current assets (B) 27,789 33,399 44,514 50,355 64,410 65,582 Total assets (A + B) 38,699 41,352 50,815 57,308 70,869 71,305 Equity and Liabilities Total equity (A) (10,888) (6,605) 26,531 31,901 46,380 50,836 Non-current liabilities Financial liabilities 5,797 3,814 1,863 1,674 1,518 1,248 Provisions & Deferred tax liability 935 940 1,255 1,508 1,513 1,662 Total non-current liabilities (B) 6,732 4,754 3,118 3,182 3,031 2,910 Current liabilities Financial & Contract liabilities i. Trade payable 2,498 2,878 3,442 3,600 6,307 3,781 ii. Others 38,866 38,591 15,947 15,907 12,402 10,931 Provisions & Other current liabilities 1,491 1,734 1,777 2,718 2,749 2,847 Total current liabilities (C) 42,855 43,203 21,166 22,225 21,458 17,559 Total liabilities (D = B + C) 49,587 47,957 24,284 25,407 24,489 20,469 Total equity and liabilities (A + D) 38,699 41,352 50,815 57,308 70,869 71,305 18 www.happiestminds.com investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com