Persistent Systems Limited — Investor Presentation 2022

Jul 21, 2022

NSE & BSE / 2022-23 / 75 July 21, 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: Fact Sheet – Consolidated Financial Data – for the quarter ended June 30, 2022

Please find enclosed the fact sheet of the Consolidated Financial Data for the quarter ended June 30, 2022.

The Company has scheduled an investor/analyst call on Friday, July 22, 2022, at 6.00 PM IST. During such call, the Management will comment on the financial results for the quarter ended June 30, 2022, as well as on the business outlook. The details of the said investor call are available on the website of the Company.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely, For Persistent Systems Limited

AMIT MURARI ATRE Digitally signed by AMIT MURARI ATRE Date: 2022.07.21 23:36:48 +05'30'

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Analyst Presentation

Quarter Ended June 30, 2022

July 21, 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.

\$241.5M FY23 Q1 Revenue +44.8% YoY	\$966.1M Annualized revenue run rate based on Q1FY23	\$840.3M TTM Revenue +39.6% YoY	₹2.1B FY23 Q1 PAT +39.9% YoY
\$394M Total Contract Value (TCV) Booking	₹99.04 TTM EPS +47.9% YoY	\$3.3B Market Cap +6.7% YoY	21,638 Employees +45.2% YoY

* 1 USD = INR 78.95; ** Market cap as on June 30, 2022

Strong global presence with 21,500+ 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.

We are building on our long-term growth journey

16.1%

Revenue CAGR from IPO to FY22

766

Delivering consistent growth in revenue and margins

Quarterly Revenue (\$M), % QoQ and % YoY Growth EBIT and PAT Margin %

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-based growth

Client Concentration Large Client Count

Top 10 clients as % of total revenue >\$5M Annual Revenue

Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23

Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23

And significant shareholder value creation…

* Declared final dividend of INR 11/share in Apr'22 (total INR 31/share in FY22) * Stock performance till June 30, 2022

Performance Highlights

We are delighted to start the new fiscal year with an exceptional performance — delivering 11.1% sequential and 44.8% year-overyear growth as well as our highest ever TCV booking of \$394M. We strengthened our team by adding over 3,000 colleagues, pushing us beyond the 20,000-employee mark.

Our differentiated Digital Engineering expertise, trusted delivery model, robust client relationships and strong partner ecosystem continue to fuel our growth. In addition, we are confidently working with our clients to help them navigate and thrive in the evolving economic environment.

We received multiple accolades this quarter, including recognition as an 'Honored Company' in Institutional Investor's 2022 Asia Executive Team rankings — an acknowledgement by sell-side analysts for our robust corporate governance practices and strong executive leadership.

Sandeep Kalra

Chief Executive Officer and Executive Director

Financial highlights for Q1 FY23

TCV and ACV bookings in Q1 FY23

Notable News and Achievements

Retiring Board Members — Thank You

"We would like to thank Pradeep Bhargava, Guy Eiferman and Thomas Kendra for their guidance and encouragement during their tenure as Board members."

Anand Deshpande — Founder, Chairman and Managing Director, Persistent

Welcoming New Board Members

"We are pleased to welcome Arvind Goel, Dr. Ambuj Goyal and Dan'l Lewin as Directors to the Board of Persistent Systems Ltd. Their vast expertise and experience add significant value as we embark on the next phase of our growth journey."

Anand Deshpande — Founder, Chairman and Managing Director, Persistent

Key wins for the quarter

Software, Hi-Tech & Emerging Industries

Accelerating data, application and mainframe product modernization for a connected enterprise software and technology company

Improving user experience, scaling automation, and strengthening nearshore presence as a unified service partner for world's leading technology and cloud services provider

Building and managing R&D capabilities to improve the extended product portfolio of an IT and security operations solutions company

Banking, Financial Services & Insurance

Creating robust tech platform to scale operational efficiency and enable omnichannel experience for a premier wealth management firm

Implementing data center modernization and infrastructure transformation to enhance customer experience and business outcomes for one of the largest third-party claim administrators

Providing product engineering and domain expertise through an offshore development center to modernize platforms for a leading finance mortgage broker

Healthcare & Life Sciences

Offering comprehensive software services to support the digital transformation of leading managed healthcare and insurance provider

Leveraging deep technology and industry expertise to modernize key platforms and improve scalability for a health-tech organization

Implementing functional data marts on a data lake using Snowflake on AWS platform to reduce the total cost of operations for a multinational medical equipment's manufacturing company

Persistent Among Top Companies in Institutional Investor's 2022 Asia Executive Team Awards

"Advancing our stakeholder engagement and communication with our shareholders and the investor community has been a priority for Persistent, right alongside our focus on clients, employees, partners, and communities. Our strong performance across various categories is a testament to our robust IR practices that we continually work to improve on and enhance."

Sandeep Kalra

Chief Executive Officer and Executive Director

#1 Investor Relations Team

#1 Best IR Professional Saurabh Dwivedi

2 Best CEO Sandeep Kalra

#3 Investor Relations Program

Persistent entered the Top 100 most valuable brands in India for the first time and ranked as 3rd fastest growing brand across all sectors with 79% brand value increase.

Learn More

Other highlights for the quarter

Persistent Systems Delivers Persistent Systems Delivers Digital-first Banking Digital-first Banking Infrastructure for New Infrastructure for New Challenger GB Bank Challenger GB Bank	Persistent & Corestack Persistent & Corestack Announce Global Announce Global Partnership to Accelerate Partnership to Accelerate Digital Transformation in Digital Transformation in Multi-Cloud Environments Multi-Cloud Environments	Featured as a Challenger in Applied AI and Advanced Analytics Services 2022 RadarView™ report	Recognized as a Digital Surgery — The Disruptor in Salesforce Future Has Already Arrived Services 2022 RadarView™ Mukul Tripathi and Parimal report Muli
Learn More	Learn More		Learn More
6 things you can do with agile right now	CIO Spotlight 10 Key Roles For AI Success	CIO Spotlight Recognized as a	Featured as a Challenger in Digital Surgery — The Avasant Applied AI and Future Has Already Arrived
Vikas Gupta	R. Venkateswaran Dattaraj Rao	Disrupter in Salesforce R. Venkateswaran Services 2022 RadarViewTM report	Advanced Analytics Mukul Tripathi & Parimal Muli Services 2022 RadarView™

Our ESG Progress

Appointment of Chitra Byregowda

as Head of Environmental, Social and Governance (ESG)

Established ESG as a dedicated function Published our first ESG report persistent.com/ESGReportFY22

Published Short, Medium and Long-term ESG goals

Environmental Social Governance

• \ Climate Action

• \ Water Stewardship

• \ Inclusive Workforce

• \ Employee Health & Safety
• \ Supply Chain Sustainability

\ Sustainable Livelihood \ Attract & Nurture Talent

• \ Ethical Conduct \ Risk & Compliance
• \ Human Rights

Financial Details

Sequential Q1 FY23 vs Q4 FY22

				Expenses / Sales %	Expenses / Sales %
Particulars	Q1FY23	Q4FY22	Change QoQ	Q1FY23	Q4FY22
Revenue (\$ M)
Services	224.60	197.91	13.5%
IP Led	16.92	19.41	-12.8%
Revenue (\$ M)	241.52	217.32	11.1%
Avg. Exchange Rate ₹ / US\$	77.76	75.37	3.2%
Revenue (₹ M)	18,781.11	16,378.54	14.7%
Cost of Revenue	₹ M	₹ M
Employee Related Expenses	11,962.11	10,629.69	12.5%	63.7%	64.9%
Purchase / Royalty	276.93	153.06	80.9%	1.5%	0.9%
Project Related Travel Expenses	194.10	76.74	152.9%	1.0%	0.5%
Total Direct Costs	12,433.14	10,859.49	14.5%	66.2%	66.3%
Gross Profit	6,347.97	5,519.05	15.0%	33.8%	33.7%
Sales & Marketing Expenses	1,533.65	1,337.72	14.6%	8.2%	8.2%
Admin. & Other Expenses	1,468.12	1,349.60	8.8%	7.8%	8.2%
Doubtful Debt Provision	(5.76)	(25.69)	-77.6%	0.0%	-0.2%
CSR Activities	19.04	45.68	-58.3%	0.1%	0.3%
Total SGA	3,015.05	2,707.31	11.4%	16.1%	16.5%
EBITDA	3,332.92	2,811.74	18.5%	17.7%	17.2%
Depreciation	222.08	231.18	-3.9%	1.2%	1.4%
Amortization	423.04	280.17	51.0%	2.3%	1.7%
EBIT	2,687.80	2,300.39	16.8%	14.3%	14.0%
Other Income / (Loss)	89.15	251.28	-64.5%	0.5%	1.5%
Exchange Gain / (Loss)	41.80	120.16	-65.2%	0.2%	0.7%
PBT	2,818.75	2,671.83	5.5%	15.0%	16.3%
Tax	702.63	661.93	6.1%	3.7%	4.0%
PAT	2,116.12	2,009.90	5.3%	11.3%	12.3%

YoY Comparison Q1 FY23 vs Q1 FY22

				Expenses / Sales %	Expenses / Sales %
Particulars	Q1FY23	Q1FY22	Change YoY	Q1FY23	Q1FY22
Revenue (\$ M)
Services	224.60	144.93	55.0%
IP Led	16.92	21.89	-22.7%
Revenue (\$ M)	241.52	166.82	44.8%
Avg. Exchange Rate ₹ / US\$	77.76	73.73	5.5%
Revenue (₹ M)	18,781.11	12,299.26	52.7%
Cost of Revenue	₹ M	₹ M
Employee Related Expenses	11,962.11	7,920.82	51.0%	63.7%	64.4%
Purchase / Royalty	276.93	144.35	91.8%	1.5%	1.2%
Project Related Travel Expenses	194.10	107.91	79.9%	1.0%	0.9%
Total Direct Costs	12,433.14	8,173.08	52.1%	66.2%	66.5%
Gross Profit	6,347.97	4,126.18	53.8%	33.8%	33.5%
Sales & Marketing Expenses	1,533.65	1,101.31	39.3%	8.2%	9.0%
Admin. & Other Expenses	1,468.12	995.36	47.5%	7.8%	8.1%
Doubtful Debt Provision	(5.76)	(20.69)	-72.2%	0.0%	-0.2%
CSR Activities	19.04	35.00	-45.6%	0.1%	0.3%
Total SGA	3,015.05	2,110.98	42.8%	16.1%	17.2%
EBITDA	3,332.92	2,015.20	65.4%	17.7%	16.4%
Depreciation	222.08	133.40	66.5%	1.2%	1.1%
Amortization	423.04	216.69	95.2%	2.3%	1.8%
EBIT	2,687.80	1,665.11	61.4%	14.3%	13.5%
Other Income / (Loss)	89.15	256.38	-65.2%	0.5%	2.1%
Exchange Gain / (Loss)	41.80	109.03	-61.7%	0.2%	0.9%
PBT	2,818.75	2,030.52	38.8%	15.0%	16.5%
Tax	702.63	518.04	35.6%	3.7%	4.2%
PAT	2,116.12	1,512.48	39.9%	11.3%	12.3%

Balance Sheet

Particulars	As on June 30, 2022	As on March 31, 2022	As on June 30, 2021
Assets
PPE and Intangible Assets	22,137.23	16,406.93	5,043.54
Non-Current Assets	2,737.20	5,413.30	1,868.74
Cash and Investments	14,791.90	17,472.98	19,954.87
Other Current Assets	18,927.17	14,847.76	11,497.78
Total	58,593.50	54,140.97	38,364.93
Equity and Liabilities
Equity	33,181.78**	33,682.20	29,616.40
Non-Current Liabilities	8,188.64	6,249.22	1,316.88
Current Liabilities	17,223.08	14,209.55	7,431.65
Total	58,593.50	54,140.97	38,364.93

* All figures in ₹ millions; ** Net of cost of investment of ₹ 2,949.6 M. in treasury shares held by ESOP Trust which is consolidated from this quarter.

	Nos. / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	Revenue from Operations, USD M	241.5	217.3	199.1	182.3	166.8	765.6	566.0
	% Q-o-Q growth	11.1%	9.1%	9.2%	9.3%	9.2%
Revenue	% Y-o-Y growth	44.8%	42.2%	36.2%	34.0%	27.3%	35.2%	12.9%
	Revenue from Operations, INR M	18,781	16,379	14,917	13,512	12,299	57,107	41,879
	% Q-o-Q growth	14.7%	9.8%	10.4%	9.9%	10.5%
	% Y-o-Y growth	52.7%	47.1%	38.7%	34.1%	24.1%	36.4%	17.4%
	Description / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
Business	Services	93.0%	91.1%	86.7%	87.5%	86.9%	88.2%	83.4%
Offerings Revenue Mix	IP Led	7.0%	8.9%	13.3%	12.5%	13.1%	11.8%	16.6%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
	Description / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	BFSI	33.7%	32.4%	32.2%	30.7%	30.8%	31.6%	30.8%
Segment Revenue Mix	Healthcare & Life Sciences	19.9%	20.7%	20.7%	21.2%	20.5%	20.8%	19.3%
	Software, Hi-Tech & Emerging Industries	46.4%	46.9%	47.1%	48.1%	48.7%	47.6%	49.9%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

	Description / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	North America	78.4%	78.6%	79.2%	78.7%	78.9%	78.8%	80.8%
Geography	Europe	8.5%	8.4%	8.3%	8.8%	9.5%	8.7%	9.2%
Revenue Mix	India	11.3%	11.0%	10.9%	10.5%	9.8%	10.6%	8.4%
	ROW	1.8%	2.0%	1.6%	2.0%	1.8%	1.9%	1.6%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
	Description / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	Top 1	11.7%	14.0%	17.5%	16.9%	17.0%	16.2%	18.4%
Client Contribution	Top 5	30.8%	32.5%	36.1%	35.8%	36.5%	35.1%	38.7%
	Top 10	40.7%	42.1%	45.0%	45.4%	46.7%	44.6%	47.7%
	Top 20	51.2%	52.1%	54.1%	55.3%	56.7%	53.7%	58.1%
	Description / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	Global Development Centers	36.5%	34.5%	31.4%	30.4%	31.4%	32.1%	31.8%
Revenue by Delivery	India	56.5%	56.6%	55.3%	57.1%	55.5%	56.1%	51.6%
Centers	IP Led	7.0%	8.9%	13.3%	12.5%	13.1%	11.8%	16.6%
	Total	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%

	Nos.	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
Clients Billed	Services	735	678	625	596	568	845	722
	IP Led	129	125	122	130	132	237	239

Includes one-time clients with overlap across business offerings

	Nos.	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	\$30M+	3	2	2	2	2	2	2
Client Engagement Size	\$20M – \$30M	1	2	2	2	2	2	1
	\$10M – \$20M	7	6	6	5	5	6	4
	\$5M – \$10M	15	15	14	13	12	15	10
	\$1M – \$5M	104	93	90	84	76	93	66

	Total	21,638	18,599	16,989	15,879	14,904	18,599	13,680
	Others	1,127	999	974	926	763	999	701
People Numbers	Sales and Business Development	367	317	294	296	308	317	273
	Technical	20,144	17,283	15,721	14,657	13,833	17,283	12,706
	Nos.	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21

	USD / Per Person Month	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
Linear Revenue Per Billed PM*	Global Delivery Centers	16,423	16,383	16,043	16,544	17,004	16,459	16,851
	India	4,387	4,317	4,252	4,307	4,286	4,291	4,250
	%	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
Attrition Rate	TTM Basis	24.8%*	26.6%	26.9%	23.6%	16.6%	26.6%	11.7%
	Nos.	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
IP Led	IP Led Person Months	3,278	3,225	3,911	4,000	3,918	15,055	15,076
DSO	Nos.	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	Days	60	59	58	55	54	59	55

	Description / Nos. / %	Q1FY23	Q4FY22	Q3FY22	Q2FY22	Q1FY22	FY22	FY21
	Billable Person Months	45,900	41,025	35,938	33,212	30,807	140,982	99,264
	Global Delivery Centers	6,336	5,260	4,519	3,840	3,480	17,099	12,595
	India	39,564	35,766	31,419	29,372	27,327	123,883	86,669
	Billed Person Months	36,487	33.050	29,819	27,503	24,676	115,048	79,357
Efforts and Utilization Mix — Linear	Global Delivery Centers	5,364	4,578	3,891	3,354	3,080	14,903	10,687
	India	31,123	28,472	25,928	24,149	21,596	100,145	68,670
	Linear Utilization
	Blended	79.5%	80.6%	83.0%	82.8%	80.1%	81.6%	79.9%
	Global Delivery Centers	84.6%	87.0%	86.1%	87.3%	88.5%	87.2%	84.8%
	India	78.7%	79.6%	82.5%	82.2%	79.0%	80.8%	79.2%