WHO WE ARE FORWARD LOOKING DISCLOSURE
In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding: the persistence and intensification of competition in the IT industry; the future growth of spending in IT services outsourcing generally, application outsourcing and custom application development and offshore development services; the level of growth of demand for our services from our clients; the level of increase in revenues from our new clients; the resource utilization rates and productivity levels, the level of attrition of our IT professionals; the pricing structures we use for our client contracts; general economic and business conditions in the locations in which we operate; the levels of our concentration of revenues by vertical, geography, by client and by type of contract in the future; the continuity of the tax incentives available for software companies with operations in Argentina; Argentina’s regulations on proceeds from the export of services; our expectation that we will be able to integrate and manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands we expect our rapid growth to place on our management and infrastructure; the sufficiency of our current cash, cash flow from operations, and lines of credit to meet our anticipated cash needs; the high proportion of our cost of services comprised of personnel salaries; and other factors discussed under the heading “Risk Factors” in the final prospectus for our initial public offering and other documents filed with the Securities and Exchange Commission. These forward- looking statements involve various risks and uncertainties. Although the registrant believes that its expectations expressed in these forward- looking statements are reasonable, its expectations may turn out to be incorrect. The registrant’s actual results could be materially different from its expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed might not occur, and the registrant’s future results and its performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward- looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.
02 GLOBANT
We are a digitally native company that leverages the latest digital and cognitive technologies and methodologies to transform organizations in every aspect. We help our customers emotionally connect with their consumers and employees, and improve its efficiency.
We like to say that we are the place where engineering innovation and design meet scale.
We have global delivery centers, We have long-term and recurring including North America, Latin America, relationships with blue-chip clients. Europe and Asia, allowing next-gen software creation with the right talent and skills.
We use some of the latest We have strong revenue growth and technologies in the digital and attractive profitability. cognitive field to empower organizations in every aspect.
03 GLOBANT AT A GLANCE
Key Statistics Global Delivery Model
37 offices in 30 cities throughout 12 countries $444M 27% $75k
LTM Q1 2018 Headcount Distribution (as of March 31, 2018) LTM Q1 2018 2014 – 2017 Revenue per IT Revenue Revenue CAGR Professional 11% Argentina US & Europe 11% 37% 39% 15% 6,900+ Other Latam India
Q1 2018 Q1 2018 Total Employees as 41% Adj. Gross Adj. Profit from of March 31, 2018 Profit Margin Operations Margin Percentage Percentage Revenue by Geography (Q1’18)
348 89 88% 8% North America 14% 79% LTM Q1 2018 LTM Q1 2018 Customers % of 2017 Revenue Latam and Others Total Greater than from Existing Customers $1mm in Annual Customers Europe Served Revenue
Notes: Adjusted Gross Profit Margin Percentage excludes depreciation and amortization and share-based compensation. Adjusted Profit from Operations Margin Percentage excludes share-based compensation, impairment of tax credits and acquisition-related charges. 04 INVESTMENT HIGHLIGHTS
Pure play on the digital and cognitive space
Global presence, leveraging next-gen software and the right talent and skills
Organized by Studios, delivering domain expertise in emerging technologies
Recurring and blue-chip customer base
Substantial customer penetration and international expansion opportunity
Rapid revenue growth and industry leading margins
Experienced and founder led management team 05 ABOUT GLOBANT
Empowering organizations for a digital and cognitive revolution TODAY’S CHALLENGE
We are experiencing two disruptive Artificial Intelligence revolutions at the same time. The digital and cognitive revolutions are The rise of the affecting how companies connect with screenless UX consumers and employees, providing opportunities to make huge gains in Connected ubiquitous efficiency. experiences These revolutions are leveraging new Augmented and technologies that didn’t exist a few years ago. Virtual Reality
07 6
THE OPPORTUNITY
Every company in the world… NEEDS TO ADAPT TO TRANSFORM ITS BUSINESS
There is an abundance of demand for more intelligent and human-like behavior and technology on the market. Users move fast and are keen to interact with their digital ecosystem anywhere and anytime.
08 Large and fast growing addressable markets
As the temporal nature of digital transformation becomes completely foundational to future business, the proportion of "digital related" consulting engagements will increase from about half of all business and IT consulting engagements in 2013–2015 to approximately 70% of all engagements in 2020 or 2021, driving the total market for digital strategy and agency services well over $100 billion in opportunity worldwide by 2021.
Source: IDC Worldwide and U.S. Digital Strategy and Agency Services Forecast, 2017–2021
Worldwide Digital Strategy and Agency Services Spending by Foundation Use Case, 2015-2021 ($B)
Digital Services market expected to be a $138B market by 2021 and to grow at 21.5% per year.
09 Large and fast growing addressable markets
Artificial Intelligence Revenue is Mobile AR to drive $108 billion expected to grow at a 60% CAGR VR/AR market by 2021. through 2025.
700 $70
600 $60 500 $50
CAGR: 60% Millions $40 400
$Billions $30 300 $20 200 $10 100 $- $- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021
Installed base (M) Source: Tractica Source: Digi-Capital
10 DIGITAL LEADERSHIP
IDC MarketScape Worldwide Digital Strategy Consulting 2016
LEADERS
Major Players
Globant recognized as a Worldwide Leader of Digital
Strategy Consulting Services
by IDC MarketScape report in
2016 and 2017 Capabilities
Strategies
11 GLOBANT TODAY
SELECTED CLIENTS EMPLOYEES REVENUE GROWTH ($M) CAGR: 27,1% 413 +6,900 323 254 200 158
2013 2014 2015 2016 2017
HIGHLIGHTS
GLOBANT’S HISTORY
2003 2006 2008 2009 2012 2014 2015 2016
Founded Signed Google Riverwood Capital Studios WPP Listed on Follow SoP launched and FTV Capital launch invested NYSE on invested offerings 12 LEADING THIS DREAM OUR MANAGEMENT TEAM
MARTÍN MIGOYA GUILLERMO ALEJANDRO CEO, CO-FOUNDER MARSICOVETERE SCANNAPIECO Previous Experience: Project CHIEF STRATEGY OFFICER CFO Coordinator at Repsol YPF, Previous Experience: Sales VP of Previous Experience: Senior Consultant at Origin BV United Kingdom & Ireland of Finance Analyst at JPMorgan, Holland, Entrepreneur of the Sun Microsystems. CFO Microsoft South America. year by Emst & Young (2013).
GUIBERT MARTÍN UMARAN GUILLERMO WILLI ENGLEBIENNE CHIEF OF STAFF CHIEF PEOPLE OFFICER CTO, CO-FOUNDER CO-FOUNDER Previous Experience: Human Previous Experience: Research Previous Experience: Former Resources Director for Microsoft at IBM, Head of Technology for Globant COO and Chief Argentina and Uruguay, CallNow Inc. Corporate Business Officer. Human Resources Director for Pampa Energía.
PATRICIA POMIES CHIEF DELIVERY OFFICER Previous Experience: Director of Educ.ar Portal, responsible for content production and tracking of “Equality Connect“.
13 WHAT WE DO INNOVATIVE SOLUTIONS BY GLOBANT
Z Z
• We provided Big Data • We contributed to the • We contributed to • We helped the MET solutions for BBVA. development of EA’s highly NatGeo’s goal of become a global example • Globant helped the successful FIFA franchise. improving the customer of a digitally-connected bank innovate in • A Globant customer for journey of kids. police force. financial information more than 10 years. • Leveraging latest trends • Over 70% of traffic analysis. (UX, Visual Design), we collision reporting switched • A Globant customer for developed websites for from phone to online. more than 6 years. kids that are fun, smart • An 18-month program. and engaging. • A Globant customer for more than 6 years.
15 To create solutions for a true digital and cognitive transformation, technology isn’t enough.
At Globant we are committed to helping our customers in their whole organizational fitness lifecycle
16 ORGANIZATIONAL FITNESS LIFECYCLE
ORGANIZATIONAL FITNESS STRATEGY
CONSUMER / EMPLOYEE
MAKE IT FAMOUS BUILD & EVOLVE PUSH IT AI / PROCESS LIVE AUTOMATION
17 OUR STUDIOS Deep Pockets of Expertise
STRATEGIC SPECIALTY FOUNDATION
18 2 OUR AGILE PODS 3
WHAT IS A POD? WHY PODs? MATURITY
Agile team with blended skills. Organic ecosystem to foster, Sized at 8-10. realize and sustain digital F [ ] innovation. Fully responsible for creating Impact - Velocity - Quality - solutions, building and Designed to SCALE. Autonomy - Relationship sustaining features, products or platforms. Measured, gamified and motivated to evolve per our Self organized to meet client’s goals. creative and production goals, make tech decisions and DE reduce risk. DEV Mitosis V DE TL TL DE V V DE DE CORE PM POD 1 PM POD 2 V DE V V UX UI TL TL UX UI VD VD PM POD 3 TL
Extended UX UI Team Mitosis VD
19 SERVICES OVER PLATFORMS STRATEGY
GLOBANT MINDS OS
20 GLOBAL DELIVERY MODEL
Along our journey, we have diversified our talent base to build a strong global presence Total headcount geodispersion (%)
Country Dec-14 Dec-15 Dec-16 Dec-17 Mar-18 Multiple time zones enable us to deliver agile services to our customers and global partners. Argentina 69 57 49 39 37 We benefit from cultural similarities and a strong history of Colombia 8 11 15 21 22 innovation. India - 9 8 10 11 We have an abundant talent pool of highly educated IT USA 5 5 8 9 9 professionals. Mexico 4 6 7 9 9
Uruguay 11 8 8 6 6 UK United States Luxembourg Chile - 1 2 2 2 Spain
Peru 2 1 1 1 1 Mexico India Spain - - 1 1 1 Colombia Peru UK - - 1 1 1 Brazil
Brazil 2 1 1 1 0 Chile Uruguay 37 offices in 30 cities Argentina throughout 12 countries.
21 FINANCIAL REVIEW Significant Revenue Growth
Revenue ($M) Average Revenue by Client ($M)
CAGR: 25.5% CAGR: 27.5% Top 10
Top 20 CAGR: 23.4%
34.9%
Client Revenue Contribution (%) Clients with Revenues >$1M
Clients 2014 2015 2016 2017 Q1 2018
Top 1 9 12 10 10 11
Top 5 28 33 34 29 31
Top 10 44 47 47 42 45
23 Revenue Breakdown (Q1 2018)
Geography Currency
North America USD
Latam and Others Others
Europe
Industry Contract type
Media & Entertainment Fixed Price Time & Materials Travel
Banks & Financial Ss.
Tech. & Telecomm.
Professional Services
Consumer, Retail & Manufacturing
Others
24 Strong ability to develop accounts
Increasing # of multimillion $ accounts
2013 2014 2015 2016 2017 • 502 strategy +$20M 0 0 1 2 3 • Dedicated onsite teams +$10M 1 2 5 6 9 • Studio cross-selling +$5M 6 10 10 11 18 • Strategic partner +$1M 42 46 51 60 82
Annual revenues of selective top 20 customers with revenues <1M in 2014 • Studio cross-selling 2014 2015 2016 2017
Customer A 0 1 10 21 • POD model penetration Customer B 0 1 3 11 • Increasing number of Customer C 1 5 5 6 projects Customer D 0 1 4 8
Customer E 0 1 2 5
Customer F 0 1 4 6
Customer G 0 1 2 5 25 Attractive Profitability
Adjusted Gross Profit Adjusted Profit from Adjusted Net Income ($M) Operations ($M) ($M)
% of revs % of revs % of revs
41.0 38.9 42.3 38.8 39.0 39.1 10.6 9.7 16.9 13.7 12.3 14.7 12.2 12.8 12.0 11.1 10.0 11.6
Notes: Adjusted Gross Profit excludes depreciation and amortization and share-based compensation. Adjusted Profit from Operations excludes share-based compensation, impairment of tax credits and acquisition-related charges. Adjusted Net Income excludes share-based compensation, impairment of tax credits, US settlement agreement, net and acquisition-related charges.
26 Operating Levers
Yearly Revenue per IT Professional ($K) Adjusted SG&A (% of revenues)
CAGR: 4.4% Dilution 480 bps
Revenues in Hard Currencies with Costs in Local Currencies Revenues Q1 2018 Headcount distribution as of Q1 2018
By Currency By Geography 11% 15% 11% USD Latin America
Others US & Europe 85% 78% India
Notes: Adjusted SG&A excludes depreciation and amortization, share-based compensation and acquisition-related charges. 27 Our growth strategy
Focus on 502 accounts with potential revenues of $50M
Dedicated Key people and team for each account • PointSource (US) Long term relationship and value added • Ratio (US)
Studio cross-selling • L4 (US)
Key sales offices (Boston, London, New York, • WAE (US & UK)
Dallas, San Francisco, Seattle, Pune, Sao • Clarice (India) Paulo, Bogota, Mexico City, Madrid and Buenos Aires)
28 WE HELP Tap into the potential YOU of technology STAY for your industry RELEVANT