Persistent Systems Limited — Investor Presentation 2022

Oct 19, 2022

NSE & BSE / 2022-23 / 116

October 19, 2022

The Manager Corporate Services, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

Ref: Symbol: PERSISTENT

The Manager Corporate Services, BSE Limited 14th Floor, P J Towers, Dalal Street, Mumbai 400 001

Ref: Scrip Code: 533179

Dear Sir/Madam,

• Sub: Resubmission of Fact Sheet Consolidated Financial Data for the quarter and half year ended September 30, 2022\
• Ref: Our earlier submission under reference no. NSE & BSE / 2022-23 / 114 dated October 19,

It was observed that the Analyst presentation and Fact sheet that was uploaded under the above referred submission had some formatting errors. Therefore, we are uploading the same contents of the Analyst Presentation and Factsheet with the revised formatting.

Please note that except for those formatting changes, there are no changes in the information provided in the earlier submission.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Analyst Presentation

Quarter Ended September 30, 2022

October 19, 2022

Forward-looking and cautionary statements

Certain statements in this Presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, our revenues highly dependent on customers located in the United States, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, 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, concentration of major operations of the Company in one city, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The Company may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.

We are Persistent.

A trusted Digital Engineering and Enterprise Modernization partner.

\$255.6M FY23 Q2 Revenue +40.2% YoY	\$1,022.2M Annualized revenue run rate based on Q2FY23	\$913.5M TTM Revenue +41.0% YoY	₹2.2B FY23 Q2 PAT +36.0% YoY
\$368M Total Contract Value (TCV) Booking	₹107.49 TTM EPS +43.7% YoY	\$3.3B Market Cap	22,476 Employees +41.5% YoY

Strong global presence with 22,000+ team members across key geographies

Our core strengths in Digital Engineering fuel the next wave of transformation for our clients

We are helping market leaders transform their industries

We continue to be recognized for our customer excellence and expertise

Our 2021 awards build on our previous recognition from ISG

Persistent was recognized in 2020 as the leader for Customer and Delivery Excellence in BFSI, HCLS, North America and APAC.

Analyst recognition — Gartner

Named as a Niche Player in the 2022 Gartner® Magic Quadrant for Public Cloud IT Transformation Services

We have received this recognition from Gartner for second year in a row. MediaAgility was acquired by Persistent in March 2022 b ' Google Business Unit. As a Google Cloud Premier Partner and a strategic IT Transformation services provider, Persistent is focused on delivering transformational cloud-native solutions that enable businesses to stay relevant and benefit from the public cloud platform capabilities.

The Gartner Magic Quadrant recognizes our strong GCP capabilities, people-first focus, and DevOps delivery style.

We are building on our long-term growth journey

* In USD Million

Delivering consistent growth in revenue and margins

On account of broad-based growth across all industry segments

Quarterly Revenue (\$M), % YoY Growth

* This chart excludes revenue from the top client

Leading to lower client concentration, broad-bas d g owth…

Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23

Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23

…a d s g f ca t sha hold valu c at o

11/ '22 ( 31/ FY22) * Stock performance till September 30, 2022

Performance Highlights

As we cross \$1 billion in annualized revenue run rate and INR 2,000 crore in quarterly revenue, I want to thank all the employees, clients and partners that contributed to our growth journey along the way. We have achieved this milestone through continued passion and persistence.

Dr. Anand Deshpande

Founder, Chairman and Managing Director

We are proud to announce another quarter of strong performance as we surpassed \$1 billion in annualized revenue run rate — delivering 5.8% sequential and 40.2% year-over-year growth. We are also pleased to share that Persistent is included in three indices of the National Stock Exchange in India — the Nifty Midcap 50, Nifty IT, and the Nifty Midcap Liquid 15.

Our sustained momentum would not have been possible without the ongoing trust and support of our clients, partners, and employees.

Sandeep Kalra

Chief Executive Officer and Executive Director

Financial highlights for Q2 FY23

TCV and ACV bookings in Q2 FY23

291.3 Trailing Twelve Month ACV*

*Includes renewal and new bookings

Notable News and Achievements

Key wins for the quarter

Software, Hi-Tech & Emerging Industries

Establishing a professional services Center of Excellence for a leading connected enterprise software company

Launching a dedicated development center to scale software product delivery for a leader in EHS and risk management software solutions

Developing a multi-lingual OTT video streaming mobile application for a leading digital media tech company

Banking, Financial Services & Insurance

Providing industry-specific Salesforce expertise to enhance customer experience for a large fintech company

Designing an integration platform to structure APIs and ensure seamless services for the customers of a pioneer in embedded investing

Forming an extended engineering team to develop an automated data-driven risk and pricing platform for a fintech unicorn

Healthcare & Life Sciences

Leveraging industry and platform expertise to support the automation Center of Excellence of a biopharmaceutical services company

Redesigning applications and building continuous development capabilities to streamline the B2B ecosystem for a health insurance company

Building next-generation data platform through transformative data-driven solutions for a biotechnology company

Recognition for the quarter

Persistent included in 3 indices of the National Stock Exchange of India – Nifty Midcap 50 Index, Nifty IT Index, Nifty Midcap Liquid Index	Identified by Dun & Bradstreet as the Top Performer in the Growth Performance categories in Software and BPM sectors
Learn More	Learn More
w ' w ' TechGig Code Gladiators 2022	' Bhageerath office in Pune receives the Platinum certification for Green Interiors from the Indian Green Building Council
Learn More	Learn More

ESG update

Persistent joined the United Nations Global Compact as part of our commitment to being a responsible organization.

Persistent hosted and kicked off the 2022 IBM Call for Code Global Challenge in India, as a W ' b w w ' Tech for Good initiative since 2018. Learn More Learn More

News highlights for the quarter

Persistent Systems Delivers Persistent Systems Digital-first Banking w ' Infrastructure for New ' Z Challenger GB Bank Preetpal Singh	Persistent & Corestack Bridging the Gap Between Announce Global Business & IT: How Low Partnership to Accelerate Code Helps Accelerate Digital Transformation in Innovation & Cultural Change Multi-Cloud Environments Preetpal Singh	Consumption-Based Pricing The Next Value Driver in IT Services Anand Krishnan	'B , Digital Surgery — The ' Future Has Already Arrived Jaideep Dhok Mukul Tripathi and Parimal Muli
Learn More	Learn More	Learn More	Learn More
Evolving Experience: Transitioning from CX to PX Rajasekar Sukumar	CIO Spotlight A doctor walks into a bar: Tackling image generation R. Venkateswaran bias with Responsible AI	Is a Recession Coming? Recognized as a ' w Disrupter in Salesforce Wisely Services 2022 RadarViewTM	Featured as a Challenger in How the Healthcare & Avasant Applied AI and Pharma Sector can benefit Advanced Analytics from integration low-code Services 2022 RadarView™ technologies
Learn More	Dattaraj Rao Learn More	Nitha Puthran report Learn More	Joe Paxton Learn More

Financial Details

Sequential Q2 FY23 vs Q1 FY23

				Expenses / Sales %	Expenses / Sales %
Particulars	Q2FY23	Q1FY23	Change QoQ	Q2FY23	Q1FY23
Revenue (\$ M)
Services	235.58	224.60	4.9%
IP Led	19.98	16.92	18.1%
Revenue (\$ M)	255.56	241.52	5.8%
₹ / \$	80.16	77.76	3.1%
R v u (₹ M)	20,486.41	18,781.11	9.1%
Cost of Revenue	₹	₹
Employee Related Expenses	13,245.12	11,962.11	10.7%	64.7%	63.7%
Purchase / Royalty	249.88	276.93	-9.8%	1.2%	1.5%
Project Related Travel Expenses	133.38	194.10	-31.3%	0.7%	1.0%
Total Direct Costs	13,628.38	12,433.14	9.6%	66.5%	66.2%
Gross Profit	6,858.03	6,347.97	8.0%	33.5%	33.8%
Sales & Marketing Expenses	1,575.02	1,533.65	2.7%	7.7%	8.2%
Admin. & Other Expenses	1,536.52	1,468.12	4.7%	7.5%	7.8%
Doubtful Debt Provision	35.49	(5.76)	-716.1%	0.2%	0.0%
CSR Activities	31.36	19.04	64.7%	0.2%	0.1%
Total SGA	3,178.39	3,015.05	5.4%	15.5%	16.1%
EBITDA	3,679.64	3,332.92	10.4%	18.0%	17.7%
Depreciation	243.95	222.08	9.8%	1.2%	1.2%
Amortization	449.12	423.04	6.2%	2.2%	2.3%
EBIT	2,986.57	2,687.80	11.1%	14.6%	14.3%
Other Income / (Loss)	60.79	89.15	-31.8%	0.3%	0.5%
Exchange Gain / (Loss)	(91.32)	41.80	-318.5%	-0.4%	0.2%
PBT	2,956.04	2,818.75	4.9%	14.4%	15.0%
Tax	755.90	702.63	7.6%	3.7%	3.7%
PAT	2,200.14	2,116.12	4.0%	10.7%	11.3%
EPS (₹)	29.61*	28.50*	3.9%

* For EPS calculation, shares held by ESOP Trust are excluded

YoY Comparison Q2 FY23 vs Q2 FY22

				Expenses / Sales %	Expenses / Sales %
Particulars	Q2FY23	Q2FY22	Change YoY	Q2FY23	Q2FY22
Revenue (\$ M)
Services	235.58	159.51	47.7%
IP Led	19.98	22.81	-12.4%
Revenue (\$ M)	255.56	182.32	40.2%
₹ / \$	80.16	74.11	8.2%
R v u (₹ M)	20,486.41	13,512.49	51.6%
Cost of Revenue	₹	₹
Employee Related Expenses	13,245.12	8,783.68	50.8%	64.7%	65.0%
Purchase / Royalty	249.88	171.45	45.7%	1.2%	1.3%
Project Related Travel Expenses	133.38	26.90	395.8%	0.7%	0.2%
Total Direct Costs	13,628.38	8,982.03	51.7%	66.5%	66.5%
Gross Profit	6,858.03	4,530.46	51.4%	33.5%	33.5%
Sales & Marketing Expenses	1,575.02	1,167.88	34.9%	7.7%	8.6%
Admin. & Other Expenses	1,536.52	1,105.21	39.0%	7.5%	8.2%
Doubtful Debt Provision	35.49	(6.67)	-632.1%	0.2%	0.0%
CSR Activities	31.36	20.10	56.0%	0.2%	0.1%
Total SGA	3,178.39	2,286.52	39.0%	15.5%	16.9%
EBITDA	3,679.64	2,243.94	64.0%	18.0%	16.6%
Depreciation	243.95	168.12	45.1%	1.2%	1.2%
Amortization	449.12	202.71	121.6%	2.2%	1.5%
EBIT	2,986.57	1,873.11	59.4%	14.6%	13.9%
Other Income / (Loss)	60.79	292.88	-79.2%	0.3%	2.2%
Exchange Gain / (Loss)	(91.32)	10.33	-984.0%	-0.4%	0.1%
PBT	2,956.04	2,176.32	35.8%	14.4%	16.1%
Tax	755.90	558.79	35.3%	3.7%	4.1%
PAT	2,200.14	1,617.53	36.0%	10.7%	12.0%
EPS (₹)	29.61*	21.16	39.9%

* For EPS calculation, shares held by ESOP Trust are excluded

YoY Comparison H1 FY23 vs H1 FY22

				Expenses / Sales %	Expenses / Sales %
Particulars	H1FY23	H1FY22	Change YoY	H1FY23	H1FY22
Revenue (\$ M)
Services	460.18	304.44	51.2%
IP Led	36.90	44.70	-17.4%
Revenue (\$ M)	497.08	349.14	42.4%
₹ / \$	79.00	73.93	6.9%
R v u (₹ M)	39,267.52	25,811.75	52.1%
Cost of Revenue	₹	₹
Employee Related Expenses	25,207.23	16,704.50	50.9%	64.2%	64.7%
Purchase / Royalty	526.81	315.80	66.8%	1.3%	1.2%
Project Related Travel Expenses	327.48	134.81	142.9%	0.8%	0.5%
Total Direct Costs	26,061.52	17,155.11	51.9%	66.4%	66.5%
Gross Profit	13,206.00	8,656.64	52.6%	33.6%	33.5%
Sales & Marketing Expenses	3,108.67	2,269.19	37.0%	7.9%	8.8%
Admin. & Other Expenses	3,004.64	2,100.57	43.0%	7.7%	8.1%
Doubtful Debt Provision	29.73	(27.36)	-208.7%	0.1%	-0.1%
CSR Activities	50.40	55.10	-8.5%	0.1%	0.2%
Total SGA	6,193.44	4,397.50	40.8%	15.8%	17.0%
EBITDA	7,012.56	4,259.14	64.6%	17.9%	16.5%
Depreciation	466.03	301.52	54.6%	1.2%	1.2%
Amortization	872.16	419.40	108.0%	2.2%	1.6%
EBIT	5,674.37	3,538.22	60.4%	14.5%	13.7%
Other Income / (Loss)	149.94	549.26	-72.7%	0.4%	2.1%
Exchange Gain / (Loss)	(49.52)	119.36	-141.5%	-0.1%	0.5%
PBT	5,774.79	4,206.84	37.3%	14.7%	16.3%
Tax	1,458.53	1,076.83	35.4%	3.7%	4.2%
PAT	4,316.26	3,130.01	37.9%	11.0%	12.1%
EPS (₹)	58.15*	40.96	42.0%

* For EPS calculation, shares held by ESOP Trust are excluded

Balance Sheet (₹ M)

Particulars	As on September 30, 2022	As on March 31, 2022	As on September 30, 2021
Assets
PPE and Intangible Assets	22,825.84	16,406.93	5,149.15
Non-Current Assets	2,854.65	5,413.30	4,642.75
Cash and Investments	15,718.98	17,472.98	18,704.34
Other Current Assets	20,722.62	14,847.76	11,864.52
Total	62,122.09	54,140.97	40,360.76
Equity and Liabilities
Equity	35,245.28	33,682.20	30,934.43
Non-Current Liabilities	7,428.71	6,249.22	1,209.51
Current Liabilities	19,448.10	14,209.55	8,216.82
Total	62,122.09	54,140.97	40,360.76

	Nos. / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	Revenue from Operations, USD M	255.6	241.5	217.3	199.1	182.3	765.6	566.0
	% Q-o-Q growth	5.8%	11.1%	9.1%	9.2%	9.3%
	% Q-o-Q growth (constant currency)	6.6%	12.0%	9.3%	9.6%	9.5%
Revenue	% Y-o-Y growth	40.2%	44.8%	42.2%	36.2%	34.0%	35.2%	12.9%
	Revenue from Operations, INR M	20,486	18,781	16,379	14,917	13,512	57,107	41,879
	% Q-o-Q growth	9.1%	14.7%	9.8%	10.4%	9.9%
	% Y-o-Y growth	51.6%	52.7%	47.1%	38.7%	34.1%	36.4%	17.4%
	Description / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
Business Offerings	Services	92.2%	93.0%	91.1%	86.7%	87.5%	88.2%	83.4%
Revenue Mix	IP Led	7.8%	7.0%	8.9%	13.3%	12.5%	11.8%	16.6%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
	Description / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	BFSI	32.8%	33.7%	32.4%	32.2%	30.7%	31.6%	30.8%
Segment Revenue Mix	Healthcare & Life Sciences	19.7%	19.9%	20.7%	20.7%	21.2%	20.8%	19.3%
	Software, Hi-Tech & Emerging Industries	47.5%	46.4%	46.9%	47.1%	48.1%	47.6%	49.9%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

	Description / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	North America	78.6%	78.4%	78.6%	79.2%	78.7%	78.8%	80.8%
Geography	Europe	8.3%	8.5%	8.4%	8.3%	8.8%	8.7%	9.2%
Revenue Mix	India	11.5%	11.3%	11.0%	10.9%	10.5%	10.6%	8.4%
	ROW	1.6%	1.8%	2.0%	1.6%	2.0%	1.9%	1.6%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
	Description / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	Top 1	8.7%	11.7%	14.0%	17.5%	16.9%	16.2%	18.4%
Client Contribution	Top 5	26.9%	30.8%	32.5%	36.1%	35.8%	35.1%	38.7%
	Top 10	36.7%	40.7%	42.1%	45.0%	45.4%	44.6%	47.7%
	Top 20	48.4%	51.2%	52.1%	54.1%	55.3%	53.7%	58.1%
	Description / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	Global Development Centers	34.8%	36.5%	34.5%	31.4%	30.4%	32.1%	31.8%
Revenue by Delivery	India	57.4%	56.5%	56.6%	55.3%	57.1%	56.1%	51.6%
Centers	IP Led	7.8%	7.0%	8.9%	13.3%	12.5%	11.8%	16.6%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

	Nos.	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
Clients Billed	Services	767	735	678	625	596	845	722
	IP Led	134	129	125	122	130	237	239
	Nos.	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	\$30M+	3	3	2	2	2	2	2
Client	\$20M – \$30M	3	1	2	2	2	2	1
Engagement Size	\$10M – \$20M	6	7	6	6	5	6	4
	\$5M – \$10M	18	15	15	14	13	15	10
	\$1M – \$5M	116	104	93	90	84	93	66
	Nos.	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	Technical	20,941	20,144	17,283	15,721	14,657	17,283	12,706
People Numbers	Sales and Business Development	387	367	317	294	296	317	273
	Others	1,148	1,127	999	974	926	999	701
	Total	22,476	21,638	18,599	16,989	15,879	18,599	13,680

	USD / Per Person Month	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
Linear Revenue Per Billed PM*	Global Delivery Centers	16,181	16,423	16,383	16,043	16,544	16,459	16,851
	India	4,498	4,387	4,317	4,252	4,307	4,291	4,250
Attrition Rate	%	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	TTM Basis	23.7%	24.8%	26.6%	26.9%	23.6%	26.6%	11.7%
IP Led	Nos.	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	IP Led Person Months	3,036	3,278	3,225	3,911	4,000	15,055	15,076
DSO	Nos.	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	Days	60	60	59	58	55	59	55

	Description / Nos. / %	Q2FY23	Q1FY23	Q4FY22	Q3FY22	Q2FY22	FY22	FY21
	Billable Person Months	47,704	45,900	41,025	35,938	33,212	140,982	99,264
	Global Delivery Centers	6,438	6,336	5,260	4,519	3,840	17,099	12,595
	India	41,266	39,564	35,766	31,419	29,372	123,883	86,669
	Billed Person Months	38,098	36,487	33,050	29,819	27,503	115,048	79,357
Efforts and Utilization Mix — Linear	Global Delivery Centers	5,495	5,364	4,578	3,891	3,354	14,903	10,687
	India	32,603	31,123	28,472	25,928	24,149	100,145	68,670
	Linear Utilization
	Blended	79.9%	79.5%	80.6%	83.0%	82.8%	81.6%	79.9%
	Global Delivery Centers	85.4%	84.6%	87.0%	86.1%	87.3%	87.2%	84.8%
	India	79.0%	78.7%	79.6%	82.5%	82.2%	80.8%	79.2%