Mphasis Limited — Investor Presentation 2024

Apr 26, 2024

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26 April 2024

The Manager, Listing The 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: 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 and year ended 31 March 2024.

The presentation is also being hosted on the website of the Company at www.mphasis.com.

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

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NARAYAN Digitally signed SUBRAMANIA by NARAYAN N SUBRAMANIAN

Subramanian Narayan Senior Vice President and Company Secretary

Encl: As above

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Leading the Tech Forward Future

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www.Mphasis.com

4/26/2024

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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.

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New Spend Pockets Visible in an Ongoing Challenging Macro

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New areas of IT spend
Geo-Politics and interest rates
to push growth
Changing Landscape
IT spend uptrend
Digitization themes Appetite for cost & Green shoots of activity
expected from change
continue to be top of transformation led visible with slow recovery
mind with clients deals is high to normal fatigue of previous year
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Infusing our Tribes and Archetypes with AI

$1,379 M

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2
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				$1,379 M
						AI-driven IT Operations to improve 1			Accelerating claims processing 2			AI security platform based on zero 3
						reliability and uptime, for a top-3 US		efficiency by 85% for a large benefits				trust principles, for a Canadian
						bank			administration provider			healthcare provider
Other	Tribe	Wins		72%
						Gen AI Foundry with AWS			App Dev Specialization			Launched Gen AI Blueprint
						for Financial Services			Level in GCP			on Microsoft Marketplace
					•	Mphasis and AWS signed a Strategic		•	Google recognized Mphasis for		•	Blueprint for implementation of
						Collaborative Agreement (SCA)			our deep engineering capabilities			Azure OpenAI solutions towards
						focused on Gen AI in Financial						generative AI adoption
						Services		•	Mphasis built a hybrid multi-
	AI	Wins		28%	•	Mphasis will setup a Gen AI			cloud operating platform that will leverage AI (Gemini Code Assist)		•	Helps empower enterprises to drive digital transformation, boost
						Foundry to develop PoCs for			to accelerate software			efficiency, and scale operations with
						industry-specific use cases			development lifecycle			tailored plans and personalized
				FY24								support

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Diversification Levers at Work

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TMT+ Healthcare Rev Non-BFS Rev Share %
15%
52%
49%
FY21 FY24 FY21 FY24
Revenues at 1.5X of FY21 levels
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Canada Rev Growth
15%
52% Vertical
49% Geography +42.2%
Healthcare
Middle East
FY21 FY24 FY21 FY24 Transportation Canada
South America
Revenues at 1.5X of FY21 levels Hi-tech
APAC FY23 FY24
Insurance
Targeted NCA
Europe
Customer base NCA Account Banking Leadership/Talent
Mining PE NA
Strategic New Leadership
Clients Revenues: FY21 FY24 Change Geek Cloud Talent
Talent Next nearshore
>$ 200 Mn 0 1 1
Stelligent
>$ 150 Mn 1 3 2
Banking
>$ 100 Mn 2 3 1 SMEs Datalytyx
Tribes
BlinkUX
Tech Council KoreAI
Archetypes Workfusion
Silverline
Hyperscalers
Top 11-30 Non-Top 10 Inorganic Play/Partnerships
Rev Growth Large TCV Wins Mphasis.AI
Increase in TAM ($Bn)
14%
80% Capability Strength +57.5%
Legend FY21 FY24
FY21 FY24 FY21 FY24
FY21 FY24
Large deal wins at 6X of FY21 levels
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*% growth rates in CAGR

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Growth in Pipeline from Archetypes with Diversification in Chosen Areas

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Archetypes Driven Growth Outside
Growth in BFS
Pipeline Top 10 clients
BFS Non-Top 10
4.8% Growth Growth
+19% +10%
15%
Data 14%
15% BFS
Modernization 16%
11% Non Top 10
Value Stream Acceleration 14%
8%
Cyber Security 8%
16%
Next Ops 10%
5%
Platforms & Protocols 13% Non BFS
9%
Experience 5%
T10
15%
21%
Agile IT Ops 19%
18%
Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24
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Healthy TCV Closures in a Challenging Environment

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TCV Won ($M)
+5%
1,428
1,379
1,313
1,112
FY21 FY22 FY23 FY24
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Focused on deal wins (>$20M TCV)
10%
62
17%
47 11%
37 11%
25 6%
# of 13%
cumulative 12%
deal wins
since Q1’18
17%
18%
FY21 FY22 FY23 FY24
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• Continued higher share of proactive deal wins, focused on deal-making

• Broad based TCV wins across verticals, client pyramid, and strategic customers

• Conversion to revenue pace has picked up

• FY24 TCV wins at $ 1.38Bn; 15 large deals; 1 large deal in Q4FY24

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Q4FY24 Performance by Segment: Quarterly View

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412 411
402
Direct Direct
YoY QoQ
0.4% 2.9%
Americas 333 323 333
2.1% -3.1%
EMEA
44 47 45
ROW 35 33 33 -2.8% -0.4%
Q4FY23 Q3FY24 Q4FY24
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412 411
402
Direct Direct
YoY QoQ
APPS 291 284 292 1.2% 2.8%
0.4% 1.8%
BPO 68 67 68
ITO 53 51 50 -5.6% -3.6%
Q4FY23 Q3FY24 Q4FY24
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Direct performance in Q4 FY24

• Return to QoQ growth

• Measured increase seen in conversion of larger deals; pressure on discretionary spend continues

• Stability in mortgage business aided by new deal wins

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Revenue in USD M at average USD/INR rate for the respective periods Revenue growth in constant currency

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Q4FY24 Performance by Vertical: Quarterly View

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412 411
402
YoY QoQ Direct ex DR YoY
-10.1% 2.6% -9.0%
193
Banking & Financial Services 215 188
46 45
Insurance 41 11.7% -1.0% 12.3%
63 66
TMT 58 13.5% 4.5% 17.3%
Logistics & Transportation 57 55 56 -1.2% 2.2% -0.8%
Others 42 51 50 19.5% -0.4% 21.6%
Q4FY23 Q3FY24 Q4FY24
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• TCV to revenue conversion has picked up

• Focus on new engines of Direct growth paying off – Strong double-digit growth in TMT and Others (Healthcare)

• Healthy revenue ramp-up in new customers across segments

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# Revenue in USD M at average USD/INR rate for the respective periods Revenue growth in constant currency

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Client Pyramid Performance: Direct

Client Additions

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134 [135]
Category YoY QoQ 111
-
-
$200M +
-
$100M + (1)
-
$75M + (1)
-
$50M + (1)
-
$20M + (2)
$10M + 5 -
1
$5M + 2
1
$1M + 24
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• Q4FY24 Direct revenues for the quarter grew 2.0% , and 0.4% YoY

Top Client Metrics *

• Top 1-10 declined 10.8% YoY due to BFS related drops in early part of the year

• Top 11-20 grew 10.5% YoY

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46 47
45
29 29
24
Q4FY23
Q3FY24
Q4FY24
12 10
10
6
5 5 5
4 4 4
3 3 3 3 3
1 1 1
>$200 M >$150 M >$100 M >$75 M >$50 M >$20 M >$10 M >$5 M >$1 M
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• Top 21-30 grew 17.3% YoY

• NCA continues to lead growth in Direct; YoY growth of 27.2%

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• All top client metrics based on LTM revenues ex mortgage Revenue growth in Constant currency

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Financial Metrics Quarterly Performance

Revenue trend

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+2.1%
412
411
402
Q4FY23 Q3FY24 Q4FY24
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Operating Margin Trend

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Stable margins, post
acquisition
16.0% 15.7%
15.3%
1.1% 0.8% M&A Impact
Reported
14.9% 14.9%
Q4FY23 Q3FY24 Q4FY24
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Gross Revenue in $M at average USD/INR rate for respective periods # Revenue growth in constant currency

EPS Trend

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+5.1%
21.5
20.8
19.8
Q4FY23 Q3FY24 Q4FY24
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EPS in INR for respective periods

Cash Flow Generation

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Reported OCF/PAT
116%
70
58
47
63
25
55
22
7 3
Q4FY23 Q3FY24 Q4FY24
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Net Operating Cash flow as per MDA disclosures, adjusted for one timers; Converted at average USD/INR for respective periods

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FY24 in Summary: Focused on Micro in a Challenged Macro

• Invested for tech-led, strategically diversified, transformative growth

• Resilient pipeline across TCV archetypes, including in anchor BFS vertical

• Continued strengthening of AI infused capabilities – Build, Buy & Partner

• Diversified revenue and pipeline beyond BFS and Top 10

• Revitalized leadership in core geos, verticals and technologies

• Expanded addressable market with new/enhanced capabilities

• Returned to growth in H2FY24; early signs of TCV to revenue conversion pick-up

• FY24 margin moved closer to upper end of the stated band (ex-M&A impact), with focus on productivity and operating levers

▪ Strong operating cash flow, up 56 % YoY FY24, and continued improvement in DSO

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FY25 Outlook: Cautious Optimism, Poised for Growth

▪ Despite uncertainty in spend and sentiment, FY25 outlook better than previous year ▪ Expect FY25 to be above-industry growth; gaining from tech-led, account focused strategy ▪ Continue to execute in areas of growth and invest across capabilities and verticals

• Target operating (EBIT) margin band of 14.6% - 16%

• Maintain sustainable and steady margins in narrow band while investing for growth

• Focus on productivity, efficiencies and operating leverage

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Analyst Recognitions: FY24

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