MPHASIS

DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 22 July 2022 The Manager, Listing T he Manager, Listing BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. c/1, Dalal Street, G -Block, Bandra-Kurla Complex, Mumbai - 400 001 Mumbai – 400 051 Dear Sirs, Sub: Schedule and Presentation for Investor(s)/Analyst(s) call Please find enclosed a copy of the presentation proposed to be made at the Investor/Analyst call to be held today at 8:30 am (IST) in connection with the results of the Company for the quarter ended 30 June 2022. The presentation is also being hosted on the website of the Company at www.mphasis.com. The schedule of investor/ analyst call is available on the website of the Company at https://www.mphasis.com/home/corporate/investors/earnings-call-new.html. We request you to kindly take the above on record as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Yours faithfully, For Mphasis Limited Subramanian Narayan Senior Vice President and Company Secretary Encl: As above DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Consistency & Transformation Mphasis Earnings Q1 FY 2023 Nitin Rakesh Manish Dugar CEO & Managing Director CFO © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 1 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements (the “Forward Statements”) and are based on reasonable expectations of the management, which involves a number of risks, and uncertainties that could cause actual results to differ materially from those in such Forward Statements. The risks and uncertainties relating to these Forward Statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, fluctuations in foreign exchange rates, revenue and profits, our ability to generate and manage growth, intense competition in IT services, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price and fixed-time frame contracts, restrictions on immigration, industry segment concentration, our ability to manage our international operations, our revenues being highly dependent on clients in the United States of America, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of fiscal governmental incentives, political instability, adverse impact of global pandemics (including COVID-19 impact), war, legal restrictions on raising capital or acquiring companies, unauthorized use of our intellectual property(ies) and general economic conditions affecting our businesses and industry. We may, from time to time, make additional written and oral Forward Statements . We do not undertake to update any Forward Statements that may be made from time to time by us or on our behalf, unless required under the law. © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 2 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 IT Spend Continues to Stay Robust Despite Focus on Cost and Macro Trends IT budgets are stable at elevated levels Driven by tech themes…. Our Customers 90%+ customers have indicated continued % respondents reporting increase in Cloud tech spend. Mortgage LOB impacted by macro total IT Budget* factors April ‘21 May ‘22 Security Pressure to reduce run spend are providing opportunities to explore proactive cost % respondents saying 59% 78% Analytics value propositions like Zero Cost budget will increase and BI Transformation % respondents saying Customer 13% 23% budget will increase 20%+ Experience Higher outsourcing to offshore/nearshore driven by cost advantage, need for faster time to market, and ITes with run spends may see globalization of talent models some downward pressure *Source: Bain Covid-19 B2B IT Software Survey (US N=96, EU N=92, April 26, 2021, US N = 94, EU N = 85, May 20, 2022) © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 3 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Consistency & Transformation Q1-FY23: Overall revenue grew 22.1% YoY in CC# Continued growth outperformance in Direct Direct business grew 28.3% YoY in CC# 436^ 431 YoY → 10.0% 10.2% 34.7% 26.3% 414 408 CQGR +3.3% 385 363 CAGR 342 +13.8% CAGR 334 327 323 318 320 305 305 297 292 283 276 269 264 252 240 250 242 240 235 237229 224 231 217 227228 225225 224222 198 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1’19 Q1’20 Q1’21 Q1’22 Q1’23 ’15 ’15 ’15 ’15 ’16 ’16 ’16 ’16 ’17 ’17 ’17 ’17 ’18 ’18 ’18 ’18 ’19 ’19 ’19 ’19 ’20 ’20 ’20 ’20 ’21 ’21 ’21 ’21 ’22 ’22 ’22 ’22 ’23 Direct Business revenues Revenue in USD $M at average USD/INR rate for the respective periods ^Includes adverse cross-currency impact of $3.5 Mn QoQ and $7.2 Mn YoY © Mphasis 2022 Proprietary and confidential information I 7/22/2022 # Constant Currency I 4 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Continuing Success of Our Strategy in Numbers Revenue in USD Mn Y-o-Y* Y-o-Y* Direct YoY Y-o-Y* Direct YoY 431 436 431 436 431 436 363 22. 1% 363 29. 7% 31.7 % 363 30.2 % 40. 8 % 282 288 351 359 APPS 225 401 408 Americas 277 Direct 323 8. 1% 11. 2% 0. 8 % 0. 8 % 100 97 BPO 97 DXC 28. 5% EMEA 44 46 42 13.6% 19.5% 28 % 35.3 % Others 34 22 21 ROW 42 34 35 ITO 41 49 51 Q1’22 Q4’22 Q1’23 Q1’22 Q4’22 Q1’23 Q1’22 Q4’22 Q1’23 Direct performance in Q1-23 • YoY growth of 28.3% in CC • Strong and Consistent YoY growth across core vectors – Significant growth led by offshore-centric Applications segment # Revenue in USD $M at average USD/INR rate for the respective periods * Revenue growth in constant currency © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 5 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Broad-based Growth Across Verticals Overall Direct Direct Revenue in USD Mn 431 436 YoY YoY CAGR* 363 26.6 % 27. 8 % 24. 9 % 231 233 Banking & Financial Services 186 19.1 % 17.7 % 5.5 % 41 38 Insurance 33 15.6 % 49.5 % 59.9 % 57 58 TMT 52 14.0 % 19.6 % 22.4 % 55 57 Logistics & Transportation 51 Others 41 46 50 22.5 % 32.8 % 17.8 % Q1’22 Q4’22 Q1’23 • BFS : Delivered growth of 20% + YoY growth in past 8 quarters • With our tech-led positioning, we are replicating BFS performance in other verticals • TMT/Healthcare: Growth driven by large deal wins © Mphasis 2022 Proprietary and confidential information I 7/22/2022 # CAGR for the past 3-year period * Revenue growth in constant currency I 6 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Leading at the Speed of Clients Accelerated Growth in Direct Revenue YoY Strong Q1-23 YoY (28.3% CC) broad- Overall based growth 408 401 Top 10 accounts grew 32% YoY; 323 Top 10 Top 6 – 10 accounts grew 39% YoY Q1’22 Q4’22 Q1’23 Accounts in Top 11-20 category Top 20 Revenue in $M at average USD/INR rate for the respective quarters grew 24% YoY Top Accounts Leading Growth in Direct LTM revenue ($ Mn) for top 10 accounts in Direct ( as per MDA disclosures) Revenue grew at 11.2% YoY on CC Europe YoY Q1-23 YoY basis 39 % NCA continues to contribute to Top 6 -10 NCA growth in Direct; YoY growth of 30 % 68% Top 1 -5 Q1’22 Q4’22 Q1’23 NCA: New Client Acquisitions © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 7 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Strong TCV Trend Continues Direct TCV Wins Direct: Revenue vs TCV – Strong Correlation 1,600 CAGR 1,500 ) n +24.9 % M 1,400 1,358 $ S 1,225 U 1,300 n i M 1,200 R² = 0.8734 T 839 L ( 1,100 e u n 1,000 629 e v e 900 Traditional R t c e 800 r iD New Gen 700 600 350 500 650 800 950 1,100 1,250 1,400 LTM - Q1’20 LTM - Q1’21 LTM - Q1’22 LTM - Q1’23 TCV wins : $ Mn TCV of Direct (LTM in US$ Mn) • TCV wins of $302M for Q1-23; Consistently maintaining average of > $300M+ TCV wins in the past eight quarters • ~84% of Q1-23 deal wins in New Gen areas • Further, won a large $60M+ cloud transformation deal in Q2-23 © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 8 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 New Gen Pipeline Continues to Stay Strong with Renewed Tribes QoQ +6 % 9% • Focus on composability to bring in scale, speed and domain Data 10% 16% • Archetype mode of selling Modernization 17% 11% – Building reusable components Value Stream Acceleration (DevOps) 11% 7% Security 6% – Solution to delivery framework 13% Next Ops 12% – Quicker estimation & risk models 17% Platforms & Protocols(XaaP) 18% – Transformation program office 15% Experience 15% • Shortening response time increases deal velocity keeping pipeline robust despite large win closures Agile IT Ops 12% 13% Q4’22 Q1’23 Revitalized Tech Stack © Mphasis 2022 Proprietary and confidential information I 7/22/2022 Figures in Spot USD Mn I 9 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Improving Client Mining and Large-deal Metrics Client Pyramid Focus on winning large-deals (>$20M TCV) Client Additions 105 11 large deals in last twelve months 84 64 Category Y-o-Y Q-o-Q compared to 6 in the previous period. $150M + 3 1 $100M + - - $75M + 1 - 38 $50M + - - $20M + 2 1 $10M + 6 2 44 $5M + 5 2 39 27 $1M + 21 1 Healthy conversion of 60%-70% clients at 21 each stage to the next 26 24 Q1’19 18 16 Q1’22 11 Q1’23 11 9 7 7 7 7 6 5 5 4 4 3 1 1 0 0 >$150 M >$100 M >$75 M >$50 M >$20 M >$10 M >$5 M >$1 M Q1’19 Q1’20 Q1’21 Q1’22 Q1’23 Note: All metrics based on LTM revenues # of cumulative deal wins since Q1’18 © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 10 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Strong Performance in All Financial Metrics Revenue growth Operating Profit growth* YoY YoY + 20.1 % + 20 % 436 431 69.3 69.5 2.6 3.3 363 M&A Charges adj 57.9 66.0 66.9 Reported Q1’22 Q4’22 Q1’23 Q1’22 Q4’22 Q1’23 Gross Revenue in $M at average USD/INR rate for respective periods EBIT in $M at average USD/INR rate for respective periods EPS growth* YoY Consistent Operating Cash flow generation OCF/PAT + 23.4 % > 100 % 22.4 22.1 1.0 57 1.2 53 M&A Charges adj Reported 18.2 20.9 21.4 48 Q1’22 Q4’22 Q1’23 Q1’22 Q4’22 Q1’23 Basic EPS in INR for respective periods Net Operating Cash flow as per MDA disclosures; Converted at average USD/INR for respective periods * Adjusted for M&A related charges © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 11 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 In Summary … • Direct growth well above industry at 28%+ in Q1-23 • KPIs moving in the right direction with our tribe-based propositions paying off • Track record in winning large deals sustained with 1 large US$50 million + TCV deal in Q1-23; this follows the 11 large deals wins in last 12 months • Continued share gains with key clients; Strong Top-5/Top-10/Top-20 client LTM growth, Diversification of growth with client mining metrics across revenue buckets: Added 1 client over $150M LTM revenue • Operating cash flow consistently at 100%+ of PAT • Ongoing utilization & capacity management (using the pyramid) aligns with demand visibility and in line with our strategy of continued supply side transformation • Growth-accretive margin stance ensures predictable margin performance in the stated band while enabling essential investments and managing supply headwinds • Healthy YoY Gross Margin improvement of 160 bps © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 12 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Outlook for FY23 • Continued growth momentum while watching for macro • Continuing market-share gains with clients across tiers and verticals, • Robust spending plans of high-quality client base, • Expansion of the addressable market with competency build-up (including M&A) and market expansion • Strength of pipeline and track-record of converting pipeline into TCV and TCV into revenue • Increasing convergence of overall revenue growth with Direct growth going forward • Target operating (EBIT) margin band of 15.25-17% through all four quarters of FY23 © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 13 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Q&A Link to financial data for the past three years: https://www.mphasis.com/home/corporate/investors.html © Mphasis Proprietary and confidential information I July 22, 2022 © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 14 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Analysts/Advisor Recognitions G A R T N E R MAJOR EMEA LIFE POLICY CONTENDER ADMINISTRATION SYSTEM DEAL TRENDS Mentioned as one of the vendors in the Property and Casualty (P&C) Insurance report -Cool Vendors in Quantum BPS –Service Provider Landscape with Computing CELENT | 2022 Services PEAK Matrix® Assessment 2022 F ASPIRANT ORRESTER Recognized in Neo Group ESG Cloud Migration And NOW Sustainability Enablement Technology Services Managed Service Partners In Adoption Survey TECH PEAK Matrix® Asia Pacific, Q2 2022 Assessment 2022 Q2 2022 NEO GROUP| 2022 15 © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 15 I DocuSign Envelope ID: D4D8F015-E315-440A-8FC5-CF9F044DCCA3 Awards and Recognitions • Exclusive member of VMware’s Tanzu Partner Advisory Council, a by-invite- only peer-exchange platform for select partners to engage and define Tanzu’s product roadmap/news releases • Preferred solution partner status of Azure Quantum Network; Quantum Recognized in Neo assessment, consultancy, and solution development services on the Azure Group ESG Adoption marketplace Survey NEO GROUP| 2022 • Ranked ‘high’ in the twin-track assessment model – ‘Operational-Performative Alignment and Cultural-Attitudinal Alignment’ by Neo Group in their ESG Adoption Survey Report • Awarded Gold Stevie for ‘Most Exemplary Employer’ under the COVID-19 Response category by The 2022 American Business Awards • Recognized as ‘The Employer of the Future’ in the 2022 Fortune India-Work Universe Annual Employers of the Future Study • ‘Engineering is in our DNA’ campaign won MUSE Creative Award – Silver in the ‘Integrated Marketing Campaign’ category | Vega Digital Award - Centauri in the ‘Social Presence’ and ‘Best Overall Social presence’ categories. © Mphasis 2022 Proprietary and confidential information I 7/22/2022 I 16 I