Genpact LTD - FORM 8-K - EX-99.2

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8-K - FORM 8-K - Genpact LTD	d919276d8k.htm
EX-99.1 - EX-99.1 - Genpact LTD	d919276dex991.htm

April 30, 2015

Ticker (NYSE: G)

Genpact

Q1 2015 Earnings Presentation

Exhibit 99.2

These

materials

contain

certain

statements

concerning

our

future

growth

prospects

and

forward-looking

statements,

defined

in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on

Genpact’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements

involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in such

forward-looking statements. These risks and uncertainties include but are not limited to a slowdown in the economies and

sectors in which our clients operate, a slowdown in the BPO and IT Services sectors, the risks and uncertainties arising from

our past and future acquisitions, our ability to convert bookings to revenues, our ability to manage growth, factors which may

impact our cost advantage, wage increases, our ability to attract and retain skilled professionals, risks and uncertainties

regarding fluctuations in our earnings, dependence on tax legislation, general economic conditions affecting our industry as well

as other risks detailed in our reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including the

Company's

Annual

Report

Form

10-K.

These

filings

are

available

www.sec.gov

the

investor

relations

section

our

website, www.genpact.com. Genpact may from time to time make additional written and oral forward-looking statements,

including statements contained in our filings with the SEC. The Company undertakes no obligation to update any forward-

looking statements that may be made from time to time by or on behalf of the Company.

These materials also include measures defined by the SEC as non-GAAP financial measures. Genpact believes that these non-

GAAP measures can provide useful supplemental information to investors regarding financial and business trends relating to its

financial condition and results of operations when read in conjunction with the Company’s reported results. Reconciliations of

these non-GAAP measures from GAAP are available in this presentation and in our earnings release dated April 30, 2015.

Forward-Looking Statements

Non-GAAP Financial Measures

DESIGN • TRANSFORM • RUN

Q1 2015 –

Key Financial Highlights

Strong

results

driven

continued

solid

growth

Global

Client

revenues

Q1 ‘15 versus Q1 ‘14 performance:

Total Revenue:

+11%

Revenue from Global Clients:

+13%

GE Revenue:

+3%

Notes:

Finance & Accounting Services, Core Vertical Services, and Consulting and Risk Services

led growth

Adjusted income from operations is a non-GAAP measure. Q1 ‘15 GAAP income from operations margin was 12.6%.

DESIGN • TRANSFORM • RUN

2015

Adjusted

Income

from

Operations

margin

(1)

14.3%,

reflecting

planned strategic

investments made in 2014

Global

Client

growth

was

broad-based

across

many

our

target

verticals

–

CPG, Insurance,

Life Sciences, High Tech, and Banking

Q1 2015 –

Good Start, In Line With Stated Full Year Expectations

Key events and accomplishments:

Our design and transformation services are resonating in the marketplace; delivering

more upfront, design and transform consulting engagements than ever before

are

actively

working

with

clients

deploy

our

Systems

Engagement

(SOE)

technology;

combining

advanced

technologies

with

our

deep

domain

and

process

expertise

provide

differentiated

client

insights

and

business

impact

Our Analytics business is focused on re-imagining end-to-end processes in the context of

data and technology to bring transformative change to our clients

Our differentiated solutions –

which combine process, technology and analytics with strong

domain

and

industry

expertise

–

are

driving

significant

value

for

our

clients

Continued

momentum

converting

and

winning

large

deals;

signed

two

large

transformational engagements, one each in the Life Sciences and CPG verticals

Gained significant momentum on our Know Your Customer (KYC) offering with Markit; we

will continue to invest in 2015 in this area with the expectation of revenue and operating

income contribution over subsequent years

DESIGN • TRANSFORM • RUN

DESIGN • TRANSFORM • RUN

Healthy Pipeline

Our pipeline continues to be healthy across our key target industry verticals,

service lines and geographies

We are pleased with the capability investments we have made and continue to

make in advanced technologies and automation as well as consulting services

Momentum in our pipeline is driven by investment in our front-end teams

Year to date pipeline inflows are strong

Win rates continue to hold well

DESIGN • TRANSFORM • RUN

Q1 2015 Revenue Summary

Total growth on a constant currency basis was 13%; excluding Pharmalink, total revenue growth was 9%,

or 11% on a constant currency basis

Q1 2015 Global Clients

BPO revenues increased 19% and ITO revenues declined 4%

Global

Clients

BPO

ITO

11.2%

YoY

Growth%

13.3%

3.1%

11.2%

(3.2%)

15.9%

YoY

Growth%

Q1 ‘14

Q1 ‘15

Q1 ‘14

Q1 ‘15

($ in millions)

$528.2

$587.2

$528.2

418.0

473.5

110.2

113.6

398.0

461.1

130.2

126.1

DESIGN • TRANSFORM • RUN

Continue to Expand Client Relationships

Notes:

100

> $5 MM

> $15 MM

>$25 MM

>$50 MM

Q1 14

Q1 15

Relationship size = Clients representing annual revenues based on last four rolling quarters

DESIGN • TRANSFORM • RUN

Q1 Results Reflect Investments in Client-Facing Teams

and Capabilities

Q1‘14

Q1’15

YoY

Revenue

528.2

587.2

11.2%

Cost of Revenue

324.3

357.5

10.2%

Gross Profit

203.9

229.7

12.6%

Gross Profit % of Revenue

38.6%

39.1%

50 bps

SG&A

122.5

148.7

21.4%

SG&A % of Revenue

23.2%

25.3%

210bps

Adjusted Income from Operations

(1)

86.4

83.9

-2.9%

Adjusted Income from Operations Margin

16.4%

14.3%

-210 bps

($ millions)

Notes:

Gross profit margin increase was driven by operating efficiencies and favorable foreign

exchange.

Adjusted income from operations is a non-GAAP measure. Income from operations was $77.2 million in Q1 ‘14 and $74.1 million in Q1’15.

DESIGN • TRANSFORM • RUN

EPS Year-over-Year Bridge

Q1 ‘14

Q1 ‘15

Adjusted Net Income ($ millions)

57.3

52.9

Diluted

Outstanding

(millions)

(2)

237.3

222.3

-1

Higher FX Re-

measurement

Loss

Q1 ‘14

GAAP

EPS

(Cents per share)

Net

Adjustments

(1)

Net

Adjustments

(1)

Q1 ‘14

Adjusted

EPS

Q1 ‘15

Adjusted

EPS

Q1 ‘15

GAAP

EPS

Lower

Adjusted

Income from

Operations

-4

Increase Decrease

Notes:

The above bridge reflects only significant variance items year over year and is illustrative and subject to rounding.

EPS = Diluted earnings per share

Higher

Financing

Costs

FY’14 Share

repurchases

-1

Lower

Effective

Tax Rate

Adjustments primarily include amortization of acquired intangible assets, stock-based compensation expenses and acquisition-related expenses.

Weighted average number of diluted shares outstanding; diluted shares outstanding includes the impact of 0.6 million shares repurchased in Q1 2015.

DESIGN • TRANSFORM • RUN

Cash from Operations

Q1 2015 cash from operations up $10 million

Cash from operations is in line with our expectations

Q1 cash flows are typically lower due to the payment of annual performance bonuses to employees

Q1 ‘14

Q1 ‘15

Q1 ’14

Q1 ‘15

Days Sales Outstanding

Cash

and

Liquid

Assets

millions)

(1)

434

Notes:

1) Cash and Liquid Assets = Cash and cash equivalents and short-term deposits

($ in millions)

567

Full Year 2015 Outlook

DESIGN • TRANSFORM • RUN

FY 2015

Revenues ($B)

2.46 -

2.50

Adjusted Income from Operations -

Margin

~15.0%

Other Metrics

Cash Flow From Operations

2% -

5% > 2014

Effective Tax Rate

23% -

24%

Capital Expenditure (% of revenue)

~3.0%

DESIGN • TRANSFORM • RUN

Annexure 1: Reconciliation of Adjusted Income From

Operations –

Q1 2015

(USD, in thousands)

Quarter ended March 31,

2014

2015

Income from operations per GAAP

77,247

74,050

Add: Stock-based compensation

4,973

4,660

Add: Amortization of acquired intangible assets

4,491

6,112

Add: Acquisition related expenses

798

Add/Less: Other Income (Expense), net excluding net interest

(131)

458

Add/Less: Gain (Loss) on Equity-method investment activity, net

(2,223)

Less: Net income attributable to noncontrolling interest

(240)

Adjusted income from operations

86,360

83,855

DESIGN • TRANSFORM • RUN

Annexure 2: Reconciliation of Adjusted Net Income –

2015

(USD, in thousands, except per share data)

Quarter ended March 31,

2014

2015

Net income attributable to Genpact Limited shareholders per GAAP

50,613

44,653

Add: Stock-based compensation

4,973

4,660

Add: Amortization of acquired intangible assets

4,491

6,112

Add: Acquisition related expenses

798

Less: Tax impact on stock-based compensation

(1,305)

(1,153)

Less: Tax impact on amortization of acquired intangibles

(1,476)

(1,910)

Less: Tax impact on acquisition related expenses

(229)

Adjusted net income

57,296

52,931

Adjusted diluted earnings per share

0.24

Thank You

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