#1INVESTOR PRESENTATION ● Q1 FY21 JULY 2020 Copyright © 2020 Tech Mahindra. All rights reserved. Tech Mahindra#2Q1'21 Snapshot $ 1.21 Bn Revenue 10.7% PAT margin $ 317 Mn Free Cash flow Copyright ©2020 Tech Mahindra. All rights reserved. 10.1% EBIT Margin $ 290 Mn Net New Deal Wins#3Business Highlights FINANCIAL Revenue 1 6.3% ↑ (cc) EBIT % 10 bps PAT % ↑ 220 bps FCF to PAT % 246% Copyright ©2020 Tech Mahindra. All rights reserved. GEOGRAPHY OPERATIONAL SEGMENT Communications Americas Headcount ↓ 123,416 (1,820) IT LTM attrition ↓17% (2 pp) Utilization (incl trainees) 1 82% (1 pp) Active Customers 8.2% (cc) Enterprise 5.1% (cc) IT Services 6.1% 3.5% Europe ↓ 9.1% ROW ↓ 10.1% BPS 981 (up by 8) 13.0% All trends are QoQ#4Management Commentary CP Gurnani CEO, Tech Mahindra Our customer centric approach and continued focus on keeping our associates safe and connected has helped us to navigate through these challenging times successfully We are witnessing a wave of new age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation. We are well positioned to capture such spends and our endeavor is to be back on the growth path amid increased signs of demand normalization Copyright ©2020 Tech Mahindra. All rights reserved. 4#5COVID-19 Response 95% Work from Home ✓ Partial re-opening of offices, ~5% staff in office ✓ #Wellnessfirst Employees Community ✓ Individual Social Contribution (ISR): #TechM AgainstC OVID 19 ✓ Associates voluntarily conducted food drives, supported frontline workers, delivered medical equipments, donated laptops & desktops to children, donated salary etc ✓ Large scale migration to Cloud ✓ Redefine e-commerce strategy ✓ Secure remote working, while investing in Safe Workplace solutions. ✓ Re-architect global supply chains Customers Operations ✓ Integrated Command Centerto monitor project deliverables, SLAs ✓ Remote connectivity, desktops shipped to ensure connectivity ✓ Secured all end-points, trainings, workshops to ensure data-privacy Copyright ©2020 Tech Mahindra. All rights reserved. 5#6Vertical Performance VERTICALS Communications Manufacturing Technology, media & entertainment 5054894 Banking, financial Retail, transport services & Others & logistics insurance % SHARE 40.0% 16.8% 9.0% 15.7% 7.3% 11.% % QoQ -8.6% -11.1% +13.1% -4.4% -6.2% -9.5% % YoY -7.9% -16.0% +14.2% +19.1% +13.9% -9.6% Copyright ©2020 Tech Mahindra. All rights reserved.#7Net New Deal Wins Enterprise, 185 TCV: $ 290 Mn Communications, 105 ($ Mn) Engaged by one of the largest health care provider in US as a managed service partner for IT operations. Selected by a leading North American security & VPN solution provider to enhance its customer experience globally leveraging AI/ML Won a deal with a new age Electric Vehicle Manufacturer for complete vehicle engineering Engaged by a leading Communications Service Provider in UK to enhance its operational systems leveraging next-gen Data and Analytics Copyright ©2020 Tech Mahindra. All rights reserved.#8Strategic Highlights COLLABORATIONS Collaborated with Champ Trax Technologies, a Canadian sports startup, to develop a solution to create stadium like-experience at home for global sports fans. Partnered with Openet, a leader in the supply of digital billing support system (BSS) solutions, to enable digital transformation for customers globally by leveraging 5G and cloud technologies. Strategic Collaboration with Lucideus, a global leader in cyber risk quantification solutions to conduct annual cybersecurity risk assessment, aimed at bringing the most advanced cyber risk quantification solutions to customers globally. Copyright©2020 Tech Mahindra. All rights reserved. !! SOLUTIONS LAUNCHED Launched mPAC 3.0 (Managed Platform for Adaptive Cloud), next-generation cloud management platform for enterprises globally. Tech Mahindra and IBM to help businesses transform their operations and accelerate their hybrid cloud strategies. Tech Mahindra will help clients migrate core business applications to the IBM public cloud using IBM Cloud Paks. 00 8#9People Updates Great Place To WorkⓇ Certified FEB 2020-JAN 2021 INDIA Tech Mahindra was recognized by the Great Place to WorkⓇ Institute in the following categories •India's Best Companies to Work For - 2020 Ranked 21 - • Best in Mega Employer (Organizations with more than 50,000 Employees) • Best Companies in Career Management Best Companies To Work For Great Place To INDIA Work. 2020 Best WorkplacesT among Organizations with more than 50,000 Employees Best Workplaces™ in Career Management Great THE ECONOMIC TIMES Great Place To INDIA To INDIA Work. 2020 Work. 2020 Place Copyright ©2020 Tech Mahindra. All rights reserved.#10ESG Focus: Sustainability Recognised as a Leader on ESG issues by Sustainalytics, with an ESG rating of 99 percentile, and ranked 3rd out of 244 Software and service companies of the world. Signatory to the 1.5°C Commitment Letter to set science- based emissions reduction targets in line to hold the global temperature increase below 1.5°C above pre-industrial levels. Signed a joint declaration with UN Global Compact on aligning COVID-19 recovery efforts with the latest climate science. Externally audited all ESG aspects of the organization. Copyright ©2020 Tech Mahindra. All rights reserved. ↑ 10 10#11ESG Focus: Social COVID-19 RELIEF EMPLOYABILITY GLOBAL PROGRAMS • Food and essentials to 62,288 individuals. 44,600 cooked meals. Over 5,154 PPE Kits supplied to Hospitals & Security Forces. . • E-Learning continues for more than 3,600 student beneficiaries across all locations. More than 15,000 hours of virtual interaction has happened across all locations. ● Contributed to UNICEF'S "Flush the Virus", with a sanitization drive. Over 250,000 people have already benefitted from this program. Copyright ©2020 Tech Mahindra. All rights reserved. Tech Mahindra FOUNDATION#12Management Commentary Manoj Bhat CFO, Tech Mahindra Despite demand uncertainty and volume reduction, we have been able to demonstrate operational resilience through cost optimization. Cash conversion has been strong, while we aim to improve profitability margins as demand normalizes. Copyright ©2020 Tech Mahindra. All rights reserved. 12#13Financial Snapshot REVENUE ($ Mn) 1,247 1,295 GROSS PROFIT ($ Mn) 380.4 359.1 1,207 344.1 EBITDA ($ Mn) 190.0 182.7 172.4 138.7 PAT ($ Mn) 128.8 109.0 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 EPS (Rs) 10.9 11.0 9.1 FCF ($ Mn) CASH & EQUIVALENTS ($ Mn) ROCE % 316.7 1378.4 1216.0 1164.3 23.4% 21.7% 16.8% 174.6 86.1 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Copyright 2020 Tech Mahindra. All rights re se rved.#14Operational Snapshot HEADCOUNT 125,773 125,236 UTILIZATION (including trainees) ATTRITION 21% 83% 82% 19% 80% 123,416 17% REVENUE MIX (Onsite) 65.3% 65.2% 64.1% Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 941 ACTIVE CLIENTS 981 973 TOP 10% CLIENTS 50 Mn+ CLIENTS 31.1% 31.0% 22 30.7% 21 DSO 112 110 21 21 107 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Q1'20 Q4'20 Q1'21 Copyright 2020 Tech Mahindra. All rights re se rved.#15Other financial highlights CASH CONVERSION ✓ Free cash flow to PAT conversion at 246 %. ✓ Highest quarterly FCF generated till date, aided by strong collections and tax refund. ✓ Lower DSO @ 107 days compared to 112 days in Q4 FY20. TREASURY ✓ Hedge book at $ 2.3 Bn compared to $ 2.5 Bn in Q4 FY20. ✓ USD / INR average exchange rate at 75.41, depreciation of 3.2% QoQ and 8.6% YoY. OTHERS ✓ Tax rate at 25.5% in Q1 FY21 vs 24.8% in Q4 FY20. Copyright © 2020 Tech Mahindra. All rights reserved. 17#16Financial Summary in $ Mn Revenue EBIT Q1 FY 21 QoQ YOY 1,207.5 -6.7% -3.2% 121.6 -5.2% -15.4% EBIT % 10.1% Other Income 55.1 44.0% 11.8% Miscellaneous + Interest Income 43.7 Exchange Gain/Loss 11.3 Profit Before Tax 170.0 30.1% -8.2% Provision for tax 43.4 Profit After Tax 128.8 18.2% -7.1% PAT % 10.7% EPS (Basic) in Rs 11.13 20.9% 1.4% EPS (Diluted) in Rs 11.07 21.1% 1.6% Copyright 2020 Tech Mahindra. All rights re se rved.#17Tech Mahindra