#1TECH mahindra Earnings Presentation Q1 FY24 June 2023 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 1#2Q1 FY24 Snapshot $1,601 Mn Revenue 5.3% PAT Margin 6.8% EBIT Margin $ 359 Mn Net New Deal Wins Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. $ 106 Mn Free Cash flow 2#3Q1 FY24 Snapshot FINANCIAL OPERATIONAL SEGMENT Headcount 148,297 (-4,103) ↓ CME -9.4% ↑ Revenue -4.0% (-4.2% cc) EBIT % -440 bps PAT % -290 bps FCF to PAT % 126% Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. IT LTM attrition 12.8% (down 200 bps) Utilization (inc trainees) 87.2% (up 70 bps) Active Customers 1,255 (down by 42) GEOGRAPHY Americas -0.5% Enterprise -0.4% Europe -6.7% IT ROW -4.9% -8.2% BPS ↑ +1.4% All trends are QoQ, except where specified 3.#4Management Commentary CP Gurnani CEO, Tech Mahindra Our results this quarter reflect the uncertainty in the global economy and the IT sector. We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and shareholders Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 4#5Vertical Performance Q1 FY24 Дн VERTICALS Communications, Media & Entertainment 日日日 Manufacturing Banking, Financial Services & Insurance Technology Retail, Transport & Logistics Others % SHARE 37.8% 16.9% 16.1% 10.7% 7.9% 10.6% % QoQ -9.4% +1.8% -3.2% +0.1% -0.3% -0.1% % YoY -8.2% +8.6% -5.4% +8.0% -2.0% +3.3% Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. LO 5 .#6Deal-Win Performance Total TCV Q1 FY24: $ 359 Mn Select Deals: Selected as a strategic partner by a large telecom operator in the US to implement Cloud migration of their Machine Learning platform; implement predictive analysis program to generate personalized sales retention recommendations by leveraging big data analytics and microservices development Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. Chosen by one of the largest tyre manufacturers in the world for its end-to- end enterprise process transformation. Tech Mahindra will be revamping core processes from Lead to Cash to Foreign Trade in what will be one of the largest strategic transformations in Europe Won a multiyear strategic deal from a leading Networking OEM in America for managing their public cloud operations, including various workloads for its fast-growing Al-based SaaS offerings, and for its upcoming Data & Cloud- based offerings of its Engineering and IT units 6#7Strategic Highlights COLLABORATIONS GEN AI HIGHLIGHTS OTHER HIGHLIGHTS Tech Mahindra and IndoSat launched a Center of Excellence (COE) lab powered by Google Cloud in Jakarta to accelerate Indonesia's digital transformation. This will harness advanced next-gen capabilities like 5G, Edge computing, Data analytics, Internet of Things, Augmented Reality and Virtual Reality. Lab seeks to provide intelligent analytics to CSPs through hyper-personalized offerings throughout customer journey Tech Mahindra unveiled Generative Al studio under its amplifAIO->∞ suite of Al offerings and solutions. The studio will be a one-stop-central providing customers with both structured and customized aspects of Al, bringing all six aspects of content generation - code, document/text, image, video, audio, and data - under one roof. The studio is also scalable, making it suitable for businesses of all sizes Global Chess League, a joint venture between FIDE and Tech Mahindra, will be the world's largest and first- ever league-style chess tournament. The inaugural edition which took place in Dubai from 21st June to 2nd July'23, featured six teams with six players each including a minimum of two female players and one Icon player per team. World Champions like Viswanathan Anand, Magnus Carlsen, Ding Liren and Hou Yifen were part of the tournament. Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 7#8ESG & People Highlights STRENGTH & ATTRITION AWARDS Our employee strength is at 148,297 "Champions' for Leading Practices in Diversity & Inclusion Initiatives & for Best POSH strategy - People First HR Excellence Awards LTM attrition reduced to 12.8% from 14.8% last quarter. Ranked Number 1 amongst the top 25 IT companies in the country at the Business World Sustainability Conclave 2023 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 8#9Management Commentary Rohit Anand CFO, Tech Mahindra This quarter was a challenging one for us as revenue growth faced strong headwinds and that had an impact on the profitability. We have taken swift and decisive actions to address these issues and improve our execution Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 9#10Financial Snapshot Q1 FY24 REVENUE ($ Mn) GROSS PROFIT ($ Mn) 1,632 1,668 1,601 459 482 EBIT ($ Mn) 177 186 411 108 PAT ($ Mn) 143 136 84 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 DILUTED EPS (Rs) 12.8 12.6 7.8 72 12 FCF ($ Mn) CASH & EQUIVALENTS ($ Mn) ROCE % 142 106 1,114 939 905 22% 21% 15% Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 10#11Operational Snapshot Q1 FY24 UTILIZATION (including trainees) HEADCOUNT 158,035 152,400 148,297 86.5% 82.8% IT ATTRITION (LTM) HEADCOUNT MIX (Onsite) 27.2% 87.2% 22.2% 14.8% 12.8% 27.3% 26.9% III Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 ACTIVE CLIENTS TOP 10 CLIENTS 50 Mn+ CLIENTS DSO 1,262 1,297 30% 1,255 100 96 98 27% 26 26% 24 23 Q1'23 Q4'23 Q1'24 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 11#12Other Financial Highlights CASH CONVERSION TREASURY OTHERS Free cash flow at $ 106 Mn, FCF to PAT conversion: Q1 FY24: 126%, Hedge book at $ 2,702 Mn compared to $ 2,335 Mn in Q4 FY23 USD/INR Q1 FY24 average exchange rate at 82.20 Tax rate at 27.6 % in Q1 FY24, compared to 26.2% in Q4 FY23 DSO @ 98 days Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 12#13Financial Summary Q1 FY24 in $ Mn Revenue EBIT Q1'24 1,601 QoQ YOY -4.0% -1.9% -41.7% -38.9% 108 EBIT % 6.8% Other Income 23 -37.2% 48.8% Miscellaneous + Interest 18 Income Exchange Gain/(Loss) 5 Profit Before Tax 118 -36.2% -37.1% Provision for tax 33 Profit After Tax 84 -38.0% -41.1% PAT % 5.3% EPS (Basic) in Rs 7.84 EPS (Diluted) in Rs. 7.82 Company Confidential | Copyright © 2023 Tech Mahindra. All rights reserved. 13#14TECH mahindra