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7/29/2019 Igate presentation
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Proprietary and ConfidentialJuly 17, 2013 - 0 -
Investor Presentation
iGATE Corporation
7/29/2019 Igate presentation
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Proprietary and ConfidentialJuly 17, 2013 - 1 -
"Some of the statements on this site that are neither reported financial
results nor historical facts are forward-looking statements. Theseforward-looking statements include our financial and growthprojections as well as statements concerning our plans, strategies,intentions and beliefs concerning our business and the markets inwhich we operate. These statements are based on informationcurrently available to us, and we assume no obligation to update these
statements as circumstances change. There are risks anduncertainties that could cause actual events to differ materially fromthese forward-looking statements. These risks include, but are notlimited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, marketconditions that could cause our customers to reduce their spending forour services, our ability to create, acquire and build new businessesand to grow our existing businesses, our ability to attract and retainqualified personnel, currency fluctuations and market conditions inIndia and elsewhere around the world, and other risks not specificallymentioned herein but those that are common to industry.
Safe Harbor Statement
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Proprietary and ConfidentialJuly 17, 2013 - 2 -
Full spectrum Technology, Business Process Outsourcing and Consulting Services firmhelping customers achieve business outcomes
Incorporated in June 1987
Headquarters: Fremont, CA
28,000+ employees
Listed on the NASDAQ (IGTE) in 1996
Diversified customer base
315 clients globally including top Fortune 500blue chip clients
Two $100+ million customers, 21 $10+ millioncustomers, 41 $5+ million customers and 125$1m + clients
43 sales offices across the world
Global delivery centers:
Bangalore, Mumbai, Pune, Chennai,Hyderabad, Noida, Gandhinagar
Sterling (VA), Bloomington (IL), Cambridge(MA), EL Paso, Guadalajara
London, Australia, Japan, Singapore, China
Vertical contribution*
Geographical contribution*
NAM
82%
EMEA
12%
APAC
6%
Banking &
Financial Services
21%
Insurance,
Healthcare & Life
Sciences
33%
Manufacturing,
Retail, Distribution
& Logistics
35%
Communications,
Energy & Utilities
5%
Media,
Entertainment,
Leisure & Travel
4%
Public Sector
2%
iGATE - Corporate Overview
*- For Q2, 2013
7/29/2019 Igate presentation
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Proprietary and ConfidentialJuly 17, 2013 - 3 -
Tier1Firms
Tier2
Firms
20172011
1-10 -100
Tier 1.5 company with$1 Bn revenues
Deep expertise in selectindustries (such as BFS,Insurance, Mfg., M&E etc.)
Well diversified client base Prequalified for large
contracts (>$20MM) Execution excellence Solution centric approach
3-30-3-1
Well-established and proven
Tier-1 capabilities Focus on large end-to-endengagements
Established differentiationthrough business outcomesbased model
Leading player by capability in2 verticals and serious player in3-4 verticals
Preferred technology partner tomost Fortune 1000 companies
Move up the value chain (R&D) More efficient sales engine Larger ecosystem of
alliances/partnerships Highly respected brand offering
unique solutions in themarketplace
DiversifiedIndustry &Client base
Establishedcapabilitiesand well-differentiatedofferings
iGATE: Transformational Mission
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Proprietary and ConfidentialJuly 17, 2013 - 4 -
iGATE Proposition
Integrates technology and operations
Outcomes based pricing
Takes on the People, Process and TechnologyRisk and Investments
Provides the flexibility to ramp up / ramp down
Client Benefits
Pay for Results, IT spend clearly linked to businessoutcome
Client and iGATE work on the same incentives
Insulated from the technology risk
Fixed costs are variable-ized
Organizations moving towards integrating technology and back-office operations and creating Executive positionsresponsible for technology and operations outsourcing
Acknowledgement of iTOPS-type variable pricing model by large vendors and industry analysts
Emergence of pay-as-you-use models like cloud computing, SaaS, iTOPS
Recession has shown the value of pay-as-you-use models to customers
iGATEs Outcomes Driven Model
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Proprietary and ConfidentialJuly 17, 2013 - 5 -
Maturity
Shared, ManagedServices
Business Tech. Mgmt.
Monetisation of
Assets/Platforms
SaaS
Cloud, Mobility Social
Agile Methodology
Verticalised CoEs
Pay-per-use, Risk andReward Models
Verticalisation
Innovation
Transformation
Shared, ManagedServices
SLA-Driven
Agile Methodology
Cloud, PlatformSolutions
Test Labs, CoEs
Pay-per-use
Differentiation
Asset-Lite
Shared, Services
Resources Sharing
Test Labs
Emergence of ManagedServices
Process Excellence
Asset-Heavy
Dedicated/ CaptiveModel
Time and Material
Staff Augmentation
Labour Arbitrage
Shift to ManagedServices Model
Shift to Pay per use
Model
Value
Business Outcome pricing is rare today but is increasingly the model of choice. In Forresters Enterprise IT Services Survey, approximately 25% of firmsstated moving to output-based pricing models as a critical or high priority
Forrrester in Business Outcomes based pricing models drive results in Packaged application Implementations- April 2010
Industry Moving Towards Business Outcomes
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iTOPS is an integrated business model that combines process outsourcing with underlying technology
iTOPSOverview iTOPS Value Proposition iTOPS Competitive Advantages
Better alignment of business
processes to IT services and
infrastructure
Focus on ROI of IT investmentsand business process
improvement
Results-based payments
Shift from fixed costs to
variable costs
Flexibility to ramp up or
downsize resources
Single point strategic
consulting and integrated
decision support
Difficult to replicate
Requires deep industry
expertise in both IT and BPO
Requires end-to-end
established processes
Requires aligned organization
Most competitors lack one side
of offering
Many competitors operate IT
and BPO in separate silos
Innovative enables
differentiated pricing models and
deeper client relationships
BPO delivery methods differbased on technology used
Traditional BPO providers offerlittle to no technology
Large outsourcing providers mayoffer both IT and BPO, but asseparate services
iGATE differentiates itself withfully-integratedtechnology andBPOsolutions (iTOPS)
OutsourcedTechnology
ClientTechnology
Tradi t ional BPO iTOPS
Differentiated Business Model (iTOPS)
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Life and Annuities
Property andCasualty
Healthcare
Re-Insurance
Life Sciences
WholesaleBanking
Mortgage Banking
Retail Banking
Capital Markets
Automotive
Hi-Tech andElectronic
Consumer Goods
Paper and Pulp
Aerospace and
Defense
Retail
Logistics andTransportation
Telecommunications wire,wireless, cable,broadband
Enterprise Mobility
OSS/BSS
Smart Metering
Energy Analytics
AssetManagement GIS
IndustrialAutomation &Control
Medical Devicesand HealthcareTechnologies
ConsumerElectronics,
Multimedia &Gaming
AutomotiveElectronics
Storage, Networks& Computing
ISVs
Program Planningand Production
Media Asset andContentManagement
ContentDistribution
Gaming, ThemeParks andHospitality
Publishing
Insuranceand Healthcare
Banking andFinancial Services
Manufacturing,Retail, Distribution
and Logistics
Communications,Hi-tech and
Utilities
MediaEntertainment,
Leisure and Travel
ProductEngineering
Translating our understanding of clients value chains into business solutions
Deep Domain Expertise Across Verticals
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Satish Joshi EVP & Head of Product Engineering Services
Joined Patni in 1983 and is responsible for rendering specializedenterprise-wide technology services
Prior to Patni, he worked with the Tata Institute of FundamentalResearch
Sean NarayananEVP & Chief Delivery Officer
Joined iGATE in 2006 as Senior Vice-President; promoted to
Chief Delivery Officer in 2008
Prior to joining, he served as VP and Global Practice Head of
IT Infrastructure Services at Cognizant
Sujit Sircar EVP & Chief Financial Officer
Joined iGATE in 1998 and has served numerous roles at
iGATE; he was promoted to Chief Financial Officer in 2008
Prior financial management roles at Wipro
Gerhard WatzingerPresident and Interim Chief Executive Officer
Vijay Khare EVP & Co-Head of Consulting & Solutions
Joined Patni in 1980 and has held various leadership positions
Responsible for defining and boosting Patnis micro-verticals strategy,structure, systems and skills
Dr. Srinivas KandulaEVP & Head of Human Resources
Joined iGATE in 2007 as Global Head Human Resources
Prior to joining, he held senior human resource positions at
Sasken Communication Technologies and Power Grid
Derek Kemp EVP & Head of Sales, EMEA, Asia & Australia
Joined Patni in 1981 and responsible for business across allIndustry verticals in EMEA
Prior to joining, he worked with LogicaCMG, Charteris, andPolestar Applied Solutions
David KruznerEVP & Co-Head of Consulting & Solutions
Joined iGATE in 2010 as Senior Vice-President of iTOPSand Consulting Solutions
More than 22 years of consulting executive management
experience and business transformation efforts.
Served at iGATE from 1998 to 2003 including as CEO of the iGATE Solutionsbusiness and drove the transition from a US centric operation to aninternational organization and increased the companys market value by over
150%
Worked with Intel/ McAfee, as EVP and Chief Strategy Officer
Previously, served as CEO of both SafeBoot and APT International,Partner and Managing Director at PWC and MD at CapGemini
Sanjay TugnaitEVP & Head of Sales, NA and Global Head ofAlliances
Joined iGATE in 2012
Managing Partner of Accenture's Financial Services (FS)practice in India and prior to his India tenure was a Partner in
Accenture's North America practice.
Proven Management Team
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10/15Proprietary and ConfidentialJuly 17, 2013 - 9 -
Outsourcing Excellence Award: Royal Bank of Canada
IT Supplier of the Year, 2010: Weyerhaeuser
Strategic Supplier of the Year: Genworth Financial
Best Supplier for FY 2009-10: Toshiba Mitsubishi
Ranked as Leader amongst top outsourcing service
providers and advisors; also among Best 20 in banking,markets & insurance: IAOPs Global Outsourcing-100,2012
Consistently ranked in Leadership Zone as Global R&DService Provider: Zinnov Management Consulting, 2011 &2012
'Major Contender' in the F&A Peak Matrix: Everest FAOResearch Report 2011
Lead ranking in Financial Services: Fintech-100, 2010
BPO & IMS operations assessed at Level 3
against CMMI for Services Model v1.3
Assessed at Level 5 in SEIs PCMM(People Capability Maturity Model)
Second company globally to be listed in PARS asassessed at Level 5 of CMMI-Dev V1.3
Case in Point Platinum Award: Overall Case
Management Excellence in Healthcare, 2011
BPO Excellence Awards: Operational Excellence and
Quality, and Social Change Agent, 2010
iGATE Legal Team Wins LegalEra In-House Team of the Year -Mergers & Acquisitions Award, 2012-13
Ranked No. 2 in the Greater Toronto Areas Small and Medium Best
Employers survey, 2012 Ranked No. 1 in Dataquest-CMR Best Employers Survey 2012;
retains position in Top Three for sixth time in a row
Wins Golden Peacock Innovation Management Award, 2012
iGATE Corporation Annual Report 2011 wins Silver in theprestigious LACP Awards
Asia Pacific Quality Organizations world class winner of the GlobalPerformance Excellence Award, under the Large Service category
Receives M&A Atlas Award 2012, in the Asia-Pacific Deal of theYear category for its successful acquisition of Patni ComputerSystems Limited
Engagement
Excellence
Industry
Leadership
OrganizationalExcellence
ServiceDelivery
Industry Accolades and Recognition
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Steady financial growth with Gross Margins at ~40% and non GAAP EBITDA Margins (1) at ~25%
((1) These are Non GAAP figures and should not be solely for investment decisions. GAAP financials are provided on the company website at www.igate.com
Non GAAP EPS (1)
In $m
$266 $268 $263 $268 $271 $272 $275 $283
37%40% 40%
37%40% 41% 38% 38%
21%25% 26% 24% 25%
26%24% 23%
0%
10%
20%
30%
40%
50%
$250
$255
$260
$265
$270
$275
$280
$285
Q3' 11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13
Revenue Gross Margins EBITDA Margin (Non GAAP)
$0.26 $0.27 $0.38 $0.28 $0.46 $0.45 $0.51 $0.44
Q3' 11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13
Consolidated Financial Overview
Project Type
55% 56% 58% 57% 58% 60% 62% 62%
45% 44% 42% 43% 42% 40% 38% 38%
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13
Fixed Price T&M
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Customer Distribution
Active Clients profile
37% 36% 37% 37% 38% 39% 39% 40%
11% 10% 10% 10% 11% 10% 11% 10%
52% 54% 53% 53% 52% 51% 50% 50%
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13
Top 5 Clients Client 6- 10 Others
344 338
301 304 293 304 312 315
118 122 123 123 118 120 124 125
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13
Number of clients No. of million $ clients
Diversified Revenue and Client Base
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8%
24%21%
8%
30%
0%
5%
10%
15%
20%
25%
30%
35%
-
0.50
1.00
1.50
2.00
2.50
3.00
Infosys Cognizant Syntel Genpact iGATE
2008 2009 2010 2011 2012 EPS CAGR
FullydilutedEPS($)
EPSCAGR(%)
*- List of US listed
Indian IT Companies
One of the highest EPS CAGR amongst peer IT Companies*
17.11
14.85
18.09
15.78
17.4318.5
11.04
16.13
19.16
24.83
16.88
12.58
9.167.42
3.54
0
5
10
15
20
25
30
Jan-09 Jul-09 Feb-10 Aug-10 Mar-11 Sep-11 Apr-12 Nov-12 May-13
Share price Firm Name Analyst
Janney Montgomery Scott Joseph Foresi
Jefferies Jason Kupferberg
Needham & Co. Mayank TandonNoble Financial Capital Markets Vincent Colicchio
Nomura Financial Advisory & Securities Ashwin Mehta
Oppenheimer Securities Glenn Greene
RBC Capital Markets Daniel Perlin
ROTH Capital Partners Jeff Martin
Sidoti & Company Brian Kinstlinger
Wells Fargo Securities Edward Caso
Investor Snapshot
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Long-termrelationships
with Fortune 500
customers
Deep industry
expertise acrossverticals
UniqueBusinessOutcomesstrategy
Strongmargins
One of thehighest EPS
growth amongst
peers
Large player withsignificant scale
Summary of Key Investment Highlights
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THANK YOU!
www.igate.com