![]() 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, as 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 on Form 10-K. These filings are available at www.sec.gov or on the investor relations section of 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 2 © 2015 Copyright Genpact. All Rights Reserved. DESIGN • TRANSFORM • RUN |
![]() Q1 2015 – Key Financial Highlights Strong results driven by continued solid growth in Global Client revenues Q1 ‘15 versus Q1 ‘14 performance: Total Revenue: +11% Revenue from Global Clients: +13% GE Revenue: +3% Notes: 3 © 2015 Copyright Genpact. All Rights Reserved. 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%. 1. DESIGN • TRANSFORM • RUN Q1 2015 Adjusted Income from Operations margin (1) at 14.3%, reflecting planned strategic investments made in 2014 Global Client growth was broad-based across many of 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 We are actively working with clients to deploy our Systems of Engagement TM (SOE) technology; combining advanced technologies with our deep domain and process expertise to 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 4 © 2015 Copyright Genpact. All Rights Reserved. Our differentiated solutions – which combine process, technology and analytics with strong domain and industry expertise – are driving significant value for our clients Continued momentum in 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 |
![]() 5 © 2015 Copyright Genpact. All Rights Reserved. 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 |
![]() 6 © 2015 Copyright Genpact. All Rights Reserved. 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 GE 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) ($ in millions) $528.2 $587.2 $587.2 $528.2 418.0 473.5 110.2 113.6 398.0 461.1 130.2 126.1 |
![]() 7 © 2015 Copyright Genpact. All Rights Reserved. DESIGN • TRANSFORM • RUN Continue to Expand Client Relationships Notes: 81 26 13 3 94 30 17 4 0 10 20 30 40 50 60 70 80 90 100 > $5 MM > $15 MM >$25 MM >$50 MM Q1 14 Q1 15 Relationship size = Clients representing annual revenues based on last four rolling quarters 1. |
![]() 8 © 2015 Copyright Genpact. All Rights Reserved. DESIGN • TRANSFORM • RUN Q1 Results Reflect Investments in Client-Facing Teams and Capabilities Q1‘14 Q1’15 YoY Revenue 528.2 587.2 11.2% Cost of Revenue 324.3 357.5 10.2% Gross Profit 203.9 229.7 12.6% Gross Profit % of Revenue 38.6% 39.1% 50 bps SG&A 122.5 148.7 21.4% SG&A % of Revenue 23.2% 25.3% 210bps Adjusted Income from Operations (1) 86.4 83.9 -2.9% Adjusted Income from Operations Margin 16.4% 14.3% -210 bps ($ millions) Notes: Gross profit margin increase was driven by operating efficiencies and favorable foreign exchange. 1. Adjusted income from operations is a non-GAAP measure. Income from operations was $77.2 million in Q1 ‘14 and $74.1 million in Q1’15. |
![]() 9 © 2015 Copyright Genpact. All Rights Reserved. DESIGN • TRANSFORM • RUN EPS Year-over-Year Bridge Q1 ‘14 Q1 ‘15 Adjusted Net Income ($ millions) 57.3 52.9 Diluted Shares Outstanding (millions) (2) 237.3 222.3 21 -1 Higher FX Re- measurement Loss Q1 ‘14 GAAP EPS 20 (Cents per share) Net Adjustments (1) 24 3 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 24 Higher Financing Costs 2 FY’14 Share repurchases -1 -1 1 Lower Effective Tax Rate Adjustments primarily include amortization of acquired intangible assets, stock-based compensation expenses and acquisition-related expenses. 1. 2. Weighted average number of diluted shares outstanding; diluted shares outstanding includes the impact of 0.6 million shares repurchased in Q1 2015. |
![]() 10 © 2015 Copyright Genpact. All Rights Reserved. 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) 14 24 87 81 567 |
![]() 11 © 2015 Copyright Genpact. All Rights Reserved. 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% |
![]() 12 © 2015 Copyright Genpact. All Rights Reserved. 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 20 (2,223) Less: Net income attributable to noncontrolling interest (240) - Adjusted income from operations $ 86,360 $ 83,855 |
![]() 13 © 2015 Copyright Genpact. All Rights Reserved. DESIGN • TRANSFORM • RUN Annexure 2: Reconciliation of Adjusted Net Income – Q1 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 $ 0.24 |
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