Persistent Systems Limited — Investor Presentation 2022

Mar 15, 2022

==> picture [108 x 25] intentionally omitted <==

NSE & BSE / 2021-22 / 143

March 15, 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 14[th] Floor, P J Towers, Dalal Street, Mumbai 400 001

Ref: Scrip Code: 533179

Dear Sir/Madam,

Sub: Investors Presentation - Briefing on recent acquisition Ref: Our earlier intimation under reference no. NSE & BSE / 2021-22 / 142 dated March 14, 2022 (‘Intimation’)

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI notification dated May 5, 2021, and our above referred intimation, we wish to inform you that, Persistent Systems Limited (the 'Company') interacted with investors on Tuesday, March 15, 2022.

During such call, the Management shared brief information on recent acquisition. Please find enclosed the presentation placed before the investors during this call for information and record.

Please acknowledge the receipt.

Thanking you,

Yours Sincerely,

For Persistent Systems Limited

Amit Atre Company Secretary ICSI Membership No.: A20507

Encl: As above

Persistent Systems Limited, Bhageerath, 402 Senapati Bapat Road, Pune 411 016, Maharashtra, India CIN - L72300PN1990PLCO56696

Tel: +91 (20) 670 30000 | Fax - +91 (20) 6703 0008 | E-mail - info@persistent.com | Website - www.persistent.com

Investor Briefing on Acquisition of MediaAgility March 15, 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.

Participants

==> picture [191 x 127] intentionally omitted <==

Sandeep Kalra

CEO and Executive Director

Rajesh Abhyankar CEO and Co-Founder, MediaAgility

==> picture [234 x 126] intentionally omitted <==

Sunil Sapre

Executive Director and Chief Financial Officer

Saurabh Dwivedi

Nitha Puthran

Head of Investor Relations

SVP, Cloud, Infrastructure & Security

We are Persistent. A trusted Digital Engineering and Enterprise Modernization partner.

$796.4M

Annualized revenue run rate based on Q3FY22

$701.1M TTM Revenue

+29.8% YoY

₹6,272M TTM PAT

+58.1% YoY

16,989 Employees +36.6%* YoY

$5.0B Market cap**

+223.3% YoY

**1 USD = INR 74.92; market cap as on 11 Feb’ 2022

*Employee count as at Dec 31, 2021

Our M&A strategy

Capture High growth markets

Bolster

Existing capabilities

Expand Geographic / Vertical footprint

Our cloud strategy is tightly aligned to our clients’ transformation journeys

==> picture [52 x 50] intentionally omitted <==

==> picture [74 x 52] intentionally omitted <==

==> picture [141 x 45] intentionally omitted <==

==> picture [62 x 44] intentionally omitted <==

==> picture [142 x 45] intentionally omitted <==

==> picture [142 x 45] intentionally omitted <==

==> picture [174 x 254] intentionally omitted <==

Data Center

Private Cloud

On Premise / Virtualized Colo Data Centers

Hybrid Cloud

Hybrid Cloud Multiple Clouds Hybrid Multi-Cloud Virtualized Virtualized Virtualized / Bare Metal IaaS IaaS IaaS Federation Federation Federation PaaS PaaS Containerized Cloud Native

…and accelerating with hyperscaler’s horizontal, vertical solutions

CXO \ Business Heads

==> picture [906 x 391] intentionally omitted <==

----- Start of picture text -----

Healthcare \ Payer, Provider, Life Sciences BFSI \ Banking, Insurance, Mortgages
Telehealth and Healthcare Genomic data Data analysis Open Risk Regulatory Operational
virtual care analytics and processing and for drug banking simulation reporting resilience
insights analytics development
SaaS
PaaS
IaaS
CIO \ CTO
AI/ML Analytics IoT Mixed Reality Security HPC API
Hybrid Cloud Infrastructure and Modern Workplace Productivity Tools
----- End of picture text -----

This shift is driving significant growth across all cloud players… And we have been investing to capture this market opportunity. Google Microsoft IBM Cloud Azure AWS Cloud Salesforce 45% 46% 37% 20% 26% Revenue Growth Revenue Growth Revenue Growth Revenue Growth Revenue Growth

This shift is driving significant growth across all cloud players…

==> picture [913 x 417] intentionally omitted <==

----- Start of picture text -----

And we have been investing to capture this market opportunity.
Google Microsoft IBM
Cloud Azure AWS Cloud Salesforce
Organic
----- End of picture text -----

Acquisition announcement

==> picture [204 x 74] intentionally omitted <==

MediaAgility is a Gartner recognized Public Cloud Transformation Services provider with specialization in the Google Cloud ecosystem

Expertise

\

\ Cloud-native application development, analytics and AI, cloud engineering, migrations and managed services \ Google Cloud Premier Partner delivering cloud-native engineering services

\ Niche player in the Gartner Magic Quadrant 2021 for Public Cloud IT Transformation Services \ Google Partner of the Year 2019 for Marketing Analytics

• \ $25.50M net revenue for TTM as of December 31, 2021

Revenue Client Base Employees

• \ $20.59M from services and $4.91M net from reselling

• \ 80% of revenue from long-term clients with more than 3-year relationship

• \ 35+ enterprise service clients across US, India, UK, Mexico, and Singapore \ Key verticals include Financial Services and Insurance, Healthcare and Life Sciences, and Media, Entertainment and Gaming \ 500+ employees \ Deep Google Cloud expertise with 7 partner specializations and 31 Google Cloud partner expertise designations \ 330+ Google Cloud certifications along with other key certifications from Azure, AWS, and Terraform \ Global delivery model with offices in Princeton, San Jose, Gurgaon, Pune, Mexico City, and London

MediaAgility Google Cloud expertise

==> picture [34 x 33] intentionally omitted <==

==> picture [35 x 35] intentionally omitted <==

==> picture [34 x 35] intentionally omitted <==

Google Cloud Premier Partner

500+ Employees

9 Nationalities

• 7 Partner Specializations

31 Google Cloud Partner Expertise Designations

330+ Google Cloud Certifications

35+ Enterprise Service Clients across HCLS, BFSI, Media, Entertainment & Gaming verticals

==> picture [654 x 439] intentionally omitted <==

MediaAgilityrecognized as a Niche Player in 2021 Gartner Magic Quadrant for Public Cloud IT Transformation Services

==> picture [429 x 458] intentionally omitted <==

Representative MediaAgility client engagements across industries

==> picture [58 x 57] intentionally omitted <==

Healthcare & Life Sciences

==> picture [72 x 73] intentionally omitted <==

Banking, Financial Media, Entertainment Services & Insurance & Gaming

Biotech leader moves their ML models and genomic workflow to high availability infrastructure to improve R&D productivity

Leading bank reduces cost and accelerates time to market with cloud-native application and API platform

Entertainment giant leverages patent pending solution to measure audience sentiment

\ Provided real-time experiment status to improve researcher productivity and reduced cost per experiment by 60%

\ Reduced cost and time of the DNA sequencing; No hardware limitations with Google Cloud

\ Infrastructure migration to Google Cloud improved analytics and CX of the Lab Workflow Management Tool

\ API design, development and integration with complex workflow and bank’s internal systems -- 1500+ APIs supporting 100 million calls per day

• \ Average latency of 800ms resulted in improved customer experience

• \ Reduced costs, faster product time-tomarket and improved CX resulted in competitive advantage

• \ Developed product leveraging MediaAgility’s patent pending facial recognition solution on Google Cloud

• \ Using Google Vision APIs and Deep Learning enabled fast MVP deployment in under 3 weeks

Strategic rationale

Strengthen Google Cloud partnership

• \ Launch Google business unit to ~~-~~

• accelerate cloud led digital transformation with scalable capabilities across open cloud, data cloud, collaboration, and ML

• \ Use Google Cloud competencies to build and modernize solutions that drive optimal platform usage

• \ Introduce our vertical and industry solutions to Google Cloud marketplace

Bolster offerings and industry expertise

• ~~-~~

• \ Enhance end to end service line offerings with Google Cloud specializations across migration, cloud native development, modernization, security, analytics, AI and managed services

\ Augment existing IP and accelerators to support open cloud ~~-~~ adoption & the cloud native journey

\ Bolster existing vertical expertise in BFSI, HCLS & add new expertise in Media, Entertainment & Gaming

Expand client footprint and talent pool

• \ Expand footprint within 35+ new enterprise service clients, bringing full portfolio of Persistent offerings and solutions

• \ Strengthen talent with 220+ Google Cloud certified architects and cloud engineers in US, Mexico, UK, and India.

We are aspiring to develop an all-encompassing set of cloud capabilities for our clients

Our Existing Cloud Capabilities

==> picture [56 x 33] intentionally omitted <==

==> picture [177 x 27] intentionally omitted <==

==> picture [181 x 96] intentionally omitted <==

==> picture [471 x 29] intentionally omitted <==

----- Start of picture text -----

Our Acquisitions
----- End of picture text -----

==> picture [125 x 46] intentionally omitted <==

==> picture [111 x 55] intentionally omitted <==

==> picture [165 x 38] intentionally omitted <==

==> picture [375 x 398] intentionally omitted <==

----- Start of picture text -----

Challengers Leaders
Our Aspiration
MediaAgility
Niche Players Visionaires
Public Cloud Transformation Services
----- End of picture text -----

Welcoming the leadership of MediaAgility

Rajesh Abhyankar Chief Executive Officer and Co-Founder Thought leader, technology evangelist and an entrepreneur. Built a global 500+ employee company with a people-first approach, strong technical foundation, a thriving Google Cloud partnership and focus on exceptional services

==> picture [23 x 23] intentionally omitted <==

==> picture [178 x 178] intentionally omitted <==

Swarraj Kulkarni

==> picture [230 x 178] intentionally omitted <==

Chief Technology Officer

Business leader with 30+ years of industry experience as a digital engineering and technology innovator and advisor to global enterprises

==> picture [22 x 23] intentionally omitted <==

Nirdesh Chahal

Asheesh Sharma

Ashok Khurana

Partner – Cloud Engineering Services 20+ years of experience providing transformative cloud engineering and managed services

Partner – Analytics

20+ years of experience in managing complex data warehousing projects, application integration, software development and agile delivery with global teams

Senior Vice President – Global Sales

30+ years of experience in leading enterprise sales and business development teams for cloud offerings and services

==> picture [23 x 22] intentionally omitted <==

==> picture [22 x 22] intentionally omitted <==

==> picture [22 x 22] intentionally omitted <==

Partner and analyst reactions

==> picture [142 x 47] intentionally omitted <==

“Google Cloud partners have a significant opportunity to support businesses' digital transformations and to deliver critical services to help customers thrive in a digital world. Persistent and MediaAgility offer deep expertise in business transformation across multiple industries, and hundreds of Google Cloud certified professionals in key transformation areas like collaboration and machine learning. We look forward to working together to help customers succeed.”

Thomas Kurian CEO at Google Cloud

Partner and analyst reactions

==> picture [114 x 38] intentionally omitted <==

“Google Cloud partners have a significant opportunity to support businesses' digital transformations and to deliver critical services to help customers thrive in a digital world. Persistent and MediaAgility offer deep expertise in business transformation across multiple industries, and hundreds of Google Cloud certified professionals in key transformation areas like collaboration and machine learning. We look forward to working together to help customers succeed.”

Thomas Kurian CEO at Google Cloud

==> picture [145 x 30] intentionally omitted <==

“The demand for cloud modernization and migration will continue to accelerate as clients increase their digital adoption and move along their transformation journeys. The addition of a Google business unit builds on Persistent’s 30+ years of Digital Engineering experience with MediaAgility’s deep domain expertise in Google Cloud.

With this acquisition, Persistent will be well-positioned to provide exceptional value to their clients as they advance their digital agendas.”

Pari Natarajan Co-Founder & CEO at Zinnov

Transaction summary and financials

Total purchase consideration for MediaAgility is US$71.7M with US$53.25M as upfront and the balance in earnout/retention

Based on TTM Dec 2021 Revenue of US$25.50 M, the total purchase consideration implies an EV/Revenue multiple of 2.8x

~~-~~ Expected impact in FY23 of 45 50 bps at EBIT level

Announcing the new Google business unit

Capability Summary

Google Cloud Premier Partner

31 Google Cloud Partner Expertise

7 380+ 550+ Partner Google Cloud Google Cloud Client Specializations Certifications Engagements

Offerings & Managed Services (across Industry Verticals)

Hybrid Multi-Cloud AI and Machine Container Security and Data Analytics API Management Transformation Learning Orchestration Identity

Persistent Intelligent Cyber Recovery (PiCR) to help our customers recover from ransomware attacks

360-degree Partnership

Sell-To, Sell-with Google ~~-~~ Sell To Product Engineering, Customer Service

Sell through Professional Services, GDC

~~-~~ Sell With (GTM) PiCR, SUREedge Migrator, Vertical specific solutions

Synergies to accelerate market momentum

Key Trends to Capitalize on 1 2 3 4 5 Respond to Enterprise Capture Scale application Strengthen Enhance data, Drive insights acceleration to modernization, security services analytics and from locationModernization Trends multi-cloud vertical-specific solutions AI/ML capabilities based services offerings Synergy Levers Leveraging synergy and Strengthen Google Bolster offerings and Expand client footprint continually building Cloud partnership industry expertise & talent pool Persistent’s Existing Footprint Enterprise IT Modernization Persistent’s Core Hybrid Infra Management Containerization Cloud Native Applications Workplace Modernization Expertise Hybrid / Multi-Cloud Observability & Reliability Hybrid / Multi Cloud DevOps Legacy Modernization Governance Migrate Workload, Service Catalog, Cloud Security

Leveraging Core Incremental Synergy Accelerate Revenue Presence Benefits Growth

Thank you!

www.persistent.com