Persistent Systems Limited — Regulatory Filings 2022

Feb 15, 2022

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NSE & BSE / 2021-22 / 135

February 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 / 131 dated February 10, 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 Friday, February 11, 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

Digitally signed by AMIT MURARI AMIT MURARI ATRE ATRE Date: 2022.02.15 18:26:15 +05'30' 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 Data Glove February 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.

Persistent Participants

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Sandeep Kalra CEO and Executive Director

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Nitha Puthran

SVP, Cloud, Infrastructure & Security

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Sunil Sapre

Executive Director and Chief Financial Officer

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Saurabh Dwivedi

Head of Investor Relations

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 strategy is tightly aligned to our clients’ cloud transformation journeys

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Data Center On Premise / Colo Data Centers

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

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Data Center On Premise / Colo Data Centers

Private Cloud Virtualized

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

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Data Center On Premise/ Colo Data Centers

Private Cloud Hybrid Cloud Virtualized Virtualized IaaS Federation

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

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Data Center

On Premise / Colo Data Centers

Private Cloud Hybrid Cloud Multiple Clouds Virtualized Virtualized Virtualized IaaS IaaS Federation Federation PaaS

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

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Data Center Private Cloud Hybrid Cloud Multiple Clouds Hybrid Multi-Cloud On Premise / Virtualized Virtualized Virtualized Virtualized / Bare Metal Colo Data Centers IaaS IaaS IaaS Federation Federation Federation PaaS PaaS Containerized Cloud Native

…and accelerating with hyperscaler’s verticalized solutions

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Healthcare | Payer, Provider, Lifesciences BFSI | Banking, Insurance, Mortgages
\ Continuous Patient Monitoring \ Personalized banking
\ Clinical analytics \ Modernized Payments
\ Genomics \ Fraud Detection
CXO/
Business Heads
\ Resilient Supply Chains \ Insurance Systems on Cloud
SaaS
PaaS
IaaS
CIO/CTO
AI/ML Analytics IoT Mixed Reality Security HPC API
Hybrid Cloud Infrastructure and Modern Workplace Productivity Tools
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This shift is driving significant growth across all cloud players…

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IBM Cloud Azure AWS Google Cloud 20% 46% 37% 45% Revenue Growth Revenue Growth Revenue Growth Revenue Growth

This shift is driving significant growth across all cloud players… And we have been investing to capture this market opportunity.

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IBM Cloud Azure AWS Google Cloud 20% 46% 37% 45% Revenue Growth Revenue Growth Revenue Growth Revenue Growth (Hybrid Cloud)

This shift is driving significant growth across all cloud players… And we have been investing to capture this market opportunity.

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Google
IBM Cloud Azure AWS Cloud Salesforce
20% 46% 37% 45% 26%
Revenue Growth Revenue Growth Revenue Growth Revenue Growth Revenue Growth
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Announcing an Acquisition

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Established in 2010, Data Glove specializes in digital transformation using Microsoft technologies

Expertise

\ Application and Data Modernization, Cloud Advisory Services, Business Application Innovation, Modern Work, Intelligent Automation

• \ $48.96M for Trailing Twelve Months ended December 2021

Revenue

• \ 84.66% of revenue from cloud transformation projects \ Premier consulting services partner to Microsoft Consulting delivering cutting edge cloud transformation programs

Client Base

• \ Global clients across: Americas, Europe, India and Australia \ Global clients across verticals: Software & High Tech, BFSI, and Public Sector \ 100+ cloud transformation engagements

• \ 90% of revenue driven from clients with a relationship of 5+ years

• \ 700+ employees

Employees

• \ 33% of workforce across Americas (Including 75 employees in Costa Rica ) \ Global right-shoring delivery model, including Costa Rica as a nearshore delivery center coupled with off-shore centers in Bengaluru, Hyderabad and Noida

Strategic Rationale

Accelerate and deepen Microsoft partnership

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

• accelerate joint go to market, enhancing sales, delivery, marketing, and overall partnership footprint

• \ Strengthen Azure competencies and enable higher Azure consumption as Microsoft Gold, OCP & CSP partner

• \ Bolster our Vertical / Industry capabilities within Microsoft’s entire portfolio and ecosystem

Create value with new and expanded offerings

• \ Enhance Industry and Service ~~-~~

• lines current offering line up with ~~-~~

• Azure cloud consulting, Azure enabled modernization, and Microsoft business applications and modern workplace solutions

• \ Expand value proposition in AI / ML and advanced computer vision in Persistent verticals and solution areas

• \ Augment existing portfolio of IP and accelerators as part of Persistent’s Cloud Automation Stack

Expand geographic footprint and talent pool

• \ Introduce nearshore delivery location in Costa Rica with 70+ engineers, architects and consultants to offer increased 24x7 support capacity

• \ Develop the current base of 700+ ~~-~~

• multi discipline software engineering talent with Persistent Learning and Development

• \ Leverage new locations , relationships in Noida and Hyderabad to meet increasing talent needs

Partner and analyst reactions

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Businesses and governments are seeking reliable technology partners to help them navigate the rapid digital proliferation. By establishing a business unit focusing on Microsoft Azure, Persistent builds on our longstanding relationship to develop competencies and solutions to serve customers with their Azure and Microsoft technology needs.

Anant Maheshwari President, Microsoft India

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With this acquisition and the announcement of a newly formed Microsoft business unit, Persistent continues to further its leadership position in enterprise IT transformation. Persistent's expertise in Digital Engineering, combined with Data Glove's experience in Microsoft technologies, will help meet the client’s modernization requirements, as well as address different buying centers across CEO, CIO, Line of Business's resulting in new opportunities for Persistent.

Pari Natarajan CEO

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The acceleration of digital adoption during the pandemic has led to increased demand for cloud and workplace solutions. Persistent’s acquisition of Data Glove and the launch of a new Microsoft business unit will help capture market share by taking advantage of the growing Azure and Microsoft-led opportunities. Microsoft-related implementation services is one of the highest spending growth segments of the global implementation services market, in particular, in the areas of cloud, analytics, and CRM.

Ali Zaidi

Research Vice President

Welcoming the Leadership of Data Glove

Rajiv Korpal Executive Vice President Global Sales & Services Global sales and delivery leader with partner management and strategy experience. Prior: Microsoft / NY Life / Guardian LinkedIn

Steven Laino SVP Global Sales 20+ years cloud infrastructure experience. Prior: CSFB / NY Life / Guardian LinkedIn

Rahul Bajaj Executive Vice President Global Revenue & New Growth Initiatives Two decades of industry experience across global operations and services. Prior: HSBC / Barnes & Noble / IBM LinkedIn

Pritam Parvatkar David Driftmier SVP Global Strategy SVP Business Applications 25+ years experience in Accomplished business digital transformation and development & new-markets business development. growth executive with 25-year career at Microsoft. Prior: Tech Mahindra / TATA Teleservices Prior: Microsoft LinkedIn LinkedIn

Transaction summary and financials

Total purchase consideration for Data Glove is US$90.5M

$50.2M upfront and the balance in earnouts / retention

Based on TTM Dec 2021 revenues of $48.96M, the total purchase consideration implies an EV / revenue multiple of 1.95x

Expected impact in FY23 of 75 bps at EBIT level

Announcing the new Microsoft business unit

Capability Summary

30+ OCP & CSP 8 Years of Partner Gold & Silver Experience Program Competencies

250+ 50+ 100,000+ Microsoft & Azure Assets and Workloads Migrated Certifications Accelerators

Offerings (Across Industry Verticals)

Azure Cloud Digital and Cloud and Data and AI Intelligent Business Modern Workplace and Infrastructure Application Enterprise Security Applications Services Transformation Innovation Focus Areas Capture Bolster Expand High growth cloud market Existing capabilities Geographic/Vertical footprint

Focus Areas

Synergies to accelerate market momentum

Key Trends to Capitalize on

Respond to Enterprise Modernization Trends

1 2 3 4 5 Expand technical Capture Azure Bolster Strengthen Scale intelligent advisory Cloud opportunity Dynamics 365 modern work automation capability offerings solutions

Synergy Levers

Leveraging synergy and continually building

Deepen and broaden Microsoft partnership, Industry Vertical Solutions

Create value with new & Expand geographic expanded service footprint & talent pool offerings

Persistent’s Existing Footprint

Persistent’s Core Expertise

Enterprise IT Modernization Hybrid Infra Management Containerization Cloud Native Applications Workplace Modernization 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

Data Glove Representative Engagements

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Revenue growth with new sales channel for one of the largest American Insurance Companies

Design digital process workflow and new sales channel for annuity products to enhance CX, despite the complexity of integration and technical debt

• \ Revenue growth from new sales channel with enhanced CX

• \ Straight-through processing (STP) on Azure with bespoke integration-as-a-service

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Achieve enterprise-wide, cloud-first strategy for a leading North American Telco

Accelerate a cloud-first strategy to deliver cost optimization and business agility through automation and flexible engagement models

• \ Accelerate transformation with pre-build cloud migration IP and solutions

• \ Future proof with containers, serverless, and microservices

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Assist Federal Health Inspection Agency to enhance quality of life for families through Azure & D365

Discover insights to improve program benefits for women, children, and infants from big data. Enhance CX and ensure effective program management

• \ Enhance citizen experience, operations, and management

• \ Manage environment for maximum uptime and lower cost of operations

Thank you!

www.persistent.com