2017 Investor Day 1-66 FINAL

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Winning in the Digital World

INVESTOR DAY, June 20, 2017

This presentation contains forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company's actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors are discussed in more detail in the Company's filings with the Securities and Exchange Commission, including the Company’s Registration Statement on Form S-3 (containing a prospectus), the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and the Company’s Quarterly Reports on Form 10-Q for the quarters ended June 30, 2016, September 30, 2016 and March 31, 2017. These risks could cause actual results to differ materially from those implied by forward-looking statements in this presentation. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect the Company. The Company has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. This presentation is not a prospectus and any decision to purchase securities in the proposed offering should be made solely on the basis of the information contained or incorporated by reference in the final prospectus supplement and the accompanying prospectus.

8:00 – 8:30 Registration 8:30 – 9:00 Winning in the Digital World Rohit Kapoor, Vice Chairman & Chief Executive Officer 9:00 – 9:20 Next Generation Operations Pavan Bagai, President & Chief Operating Officer 9:20 – 9:40 Expanding our Leadership in Analytics Vivek Jetley, Senior Vice President, Co-Head of Analytics 9:40 – 9:55 Continuing our Dominance in Insurance Vikas Bhalla, Executive Vice President, Head of Insurance 9:55 – 10:10 Break 10:10 – 10:25 Accelerating our Growth in Healthcare Rembert de Villa, Executive Vice President, Head of Healthcare 10:25 – 10:45 Executing on our Go To Market Nagaraja Srivatsan, Executive Vice President & Chief Growth Officer 10:45 – 11:05 Delivering on our Financial Goals Vishal Chhibbar, Executive Vice President, Chief Financial Officer 11:05 – 11:20 Closing Remarks and Q&A Rohit Kapoor, Vice Chairman & Chief Executive Officer 11:30 Tour of the Digital Experience Center 12:30 Lunch

Winning in the Digital World

©Rohit ExlService Kapoor, Holdings, Inc.Vice | Chairman & Chief Executive Officer The market we operate in remains attractive

Operations Management Analytics Global sourcing market will $200B+ Big Data and Analytics be $225B+ by 20201 Spending market by 20202

1 Expected to grow at 6-7% Services related spending to grow at 15%2 Greater acceptance on end to end outsourcing Explosion of data (onshore + offshore)

Increase in first time Sharp decline in cost of outsourcers computing power dollar

1. The IT-BPM Sector in India Strategic Review 2017 by NASSCOM 2. Worldwide Semiannual Big Data and Analytics Spending Guide 2017-20 by IDC

Multi channel touch-points for the end-customer Ultra-customized and personalized service offerings Focus on end Small turning radius with increased speed of market customer experience offerings

Increased adoption of Advanced Automation and Robotics Accelerated use of Advanced Analytics capabilities Leverage Digital (machine learning, artificial intelligence) to drive technologies insights

Changes in geo-political setup Changes in macro- Uncertainty in the regulatory environment environment

We combine EXL is a leading design domain operations thinking expertise management and analytics company that designs and enables agile, customer-centric operating models to to deliver market-leading our improve revenue business proprietary growth and and outcomes Business profitability digital EXLerator of our clients. technologies Framework®

cutting-edge analytics

Tot al O p e rat i on s (Onshore + Offshore) Offshore Revenue Higher value Operations Expansion (Est. Penetration capture in a 20-25%) digital world

Client Optimize costs Improve Revenue Growth Goals Global Delivery Advanced Analytics Advanced End- customer Automation and Experience Robotics Digital

Top 50 Clients1 2013 2016

Revenue contribution to 88% 76% EXL Revenues1

23 32

Penetration of Penetration of Penetration of Operations 25 Analytics in Analytics in Management in Operations Operations 16 Analytics Management Management 89%, 93% 52% 33% 2 2

Operations Operations Management Analytics Management only and Analytics only

1. In 2013, top 50 Clients and the revenue exclude large transitioning client

Lead with Analytics

Digitize operations management

Strengthen Analytics leadership position

Leverage consulting as “Tip of Spear”

Focus on our core domains

Build global talent base with digital expertise

Next Generation Operations Pavan Bagai, President & Chief Operating Officer Operations Management: Accelerated Evolution

Advanced Analytics Advanced Automation & Robotics End-to-End Functions Extreme Extreme End Customer Experience Transformation Business Outcomes Point Automation Cloud Analytics Modeling Complex Processes Efficiency and Effectiveness

Incremental Functional Outcomes Transformation Six Sigma Platforms / BPaaS Labor Arbitrage Non-core Processes Cost Reduction

Process Process SLA Delivery

Improvement Technology Agnostic

2004-10 2011-15 2016 & Beyond FTE Pricing Transaction Pricing Outcome Pricing

LEVERS Benefits Multi

Advanced Automation Speed - TM & Robotics Accuracy shoring STRUCTURES STRUCTURES erator Advanced Intelligence EXL Analytics Insights FRAMEWORK Redesign Design Thinking Optimization PricingInnovative Customer Experience

Partnerships Capability Access Specialization

DOMAIN EXPERTISE

Problem Identification Speech Robotics Artificial Natural Language Analytics Intelligence Processing

Effective Utilization of Agents Leaner Organizational Leverage Data and Relationship Managers Structure and Better Control Sets

Modeling & Algorithms Image Deep Robotics Spatial Analytics Learning Analytics Faster Processing and Optimized Supply Chains Embed in Information Summarization and Manufacturing Operations

Efficiency & Effectiveness

Neural Internet of Natural Language Deep Networks Things Processing Learning Superior Richer Customer Insights Insights From Huge Volume Outcomes for Behavioral Marketing of Unstructured Data

Investment Partners/Engagements Outcomes

Team of 90+ Robotics Genesys Cortana Built library of 600+ proprietary professionals; ramping to 200+ and partner bots Nuance Google Cloud Tripling investment in Digital 15 existing client operations; from 2015 to 2017 to 2% of SYSTRAN AntWorks 5 strategic new client wins revenue Xamarin WorkFusion 6 client consulting Digital Experience Centers engagements and Innovation Labs PhoneGap UiPath Functional and industry Built CTO team (200+) and IBM Bluemix Coupa domain solutions expanded CIO development team Blue Prism Automation Solution accelerators and Anywhere cognitive bots BlackLine Systems 80+ point automation tools, solutions and mobile apps

Market Expansion

Margin Growth

New Age Engagement Models Competitive Advantage

Stronger Relationships

Counter Obsolescence

Expanding our Leadership in Analytics Vivek Jetley, Senior Vice President, Co-Head of Analytics Delivering Industry-leading Growth

Average Annual Growth Rate : ~2x of industry average1 over 5 years; ~3X revenue since 2014

Analytics growth: 2012-2017 $200 M +

$165.7M $122.2M Revenue

$65.6M $37.0M $45.5M

2012 2013 2014 2015 2016 2017 F* Over 2/3rd of our revenue is Annuity-based and recurring ~ 62% increase in revenue per FTE (3) ~ 36% Gross Margin in 2016 (2) Key

Metrics + ~ 600+ bps increase in profitability (3)

(1) Worldwide Semiannual Big Data and Analytics Spending Guide from International Data Corporation (IDC), Oct 2016 (2) FY 2016 actuals (3) Compared to FY 2014

Differentiation through our core strengths

Capability End-to-end capability across Data management, data-driven products, Advanced Analytics, Reporting & Visualization

Domain Extensive experience 7 out of Top 10 9 out of Top 15 Expertise in our current domains US Banks US P&C Insurers

Delivery 2500+ Data scientists Preferred Recruiter at Top strength Masters in Quant, Economics, OR ; Top Global Global schools Engineering and Management professionals; PhDs

Go To Market Dedicated Hunters and Account Managers for Analytics Plan

Investments in Product Development, Key Investments in AI, building IP Methodology and R&D Teams Robotics, Big data…

Our offerings span the entire CXO suite

Deep knowledge of structured data sources

Data Solutions Ability to curate relevant datasets for specific client challenges

Enterprise Data Management – Design, architect, implement & operate

Analytical Industrial-strength delivery capability with 2500+ Analytics resources Services Domain experts in our established verticals

Deep knowledge of areas of advanced analytical methodology

IP-enabled Proprietary products leveraging our AI and big data capabilities Products Workflows and knowhow for setting up decision platforms

Closing the Support for business decisions and owning outcomes end-to-end

loop Margin expansion through non-linear revenue growth

Drivers of growth across our portfolio

Larger scope New lines Data-enabled New at Top 10 of business solutions geographies Existing Customers Strategic Increasing need for data and Large Analytics programs Growth analytics at our 20+ regional at 10+ UK and Europe Initiatives banks and credit unions banks and insurers

Ramp-up and 40+ new clients acquired in the last 2 years Expansion Long-term and Annuity contracts; Centers of Excellence New Customers Targeted Top 11-50 Banking and Insurance clients Acquisition Top 25 Healthcare clients Top 25 Retail & Media clients

Cross-sell Increased 20+ selected large Operations Management Wins Penetration customers Data solutions and IP-enabled products

~320 Growth within Cards Risk FTEs

20 FTEs Growth with Other Groups Impact

EXL’s Penetration

Phase I Phase II Phase III Phase IV

Initial Solidifying Credibility Strategic Partner Expansion

MIS / Reporting Analytical Insight Innovation Diversification Competitive pilot : Expand into critical End to end New.. Won BI work from regulatory areas analytics support Business Units: Store Cards, existing vendor Retail Bank

20% efficiency through More pilots for advanced “Strategic partner” Functions: Marketing, automation analytics Finance, Products

Geo: Mexico, Colombia

Establish superiority over Showcase benefits of Diversification into new Taste of high end work existing vendor synergy client groups

Products and R&D Team Sample AI Products

Data Scientists ML Engineers

Big Data Experts App Developers

Areas of Expertise Machine Learning Text Mining & NLP Information Extraction Tool: AI-based solution that automates the manual task of information extraction from unstructured documents

• Extraction Advanced Visualization Speech Analytics • Classification • Entity Recognition Images OCR Info Extraction Tool Output

Market Traction Potential Impact Image Analytics IoT • Currently being deployed at EXL • FTE reduction by 30- customers 50% • 4-5 pilot • Turnaround Time Geospatial Network Analytics implementations reduction by 20-30% being launched • Quality improvement • Discussions with large by 30% Ops mgmt customers

Continuing our Dominance in Insurance

Vikas Bhalla, Executive Vice President, Head of Insurance Recognized as the Leader

Ranked in ‘top-right’ / leader quadrant by multiple industry analysts / research firms

Everest Group PEAK Matrix for P&C Insurance BPO1

75th percentile High LEADERS EXL MAJOR CONTENDERS CSC Cognizant

WNS Genpact TCS

Conduent percentile

Shearwater Health Accenture th

Capita 75 Infosys Sutherland

Market Success Market Mphasis HCL Syntel Leaders Aspirants percentile ASPIRANTS th th Major Star 25 Intelenet NIIT Contenders Performers (Revenue, number of clients, and revenue growth) andrevenue clients, of number (Revenue, Low Capgemini Low 25th percentile High P&C Insurance BPO delivery capability (Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)

1 Marquee list of Fortune 500 and Global 1000 clients with multiple senior relationships 8 of Top 10 US Insurers 2 out of 5 Leading UK Insurers 2 Leading Australian Insurers

2 12,000+ 2,500+ 3,000+ 500+ 70+ Domain Certified Claims + U/W Analytics Actuarial Experts (AICPCU, CII, specialists professionals staff LOMA)

3 Analytics and Technology Platform capabilities across insurance lifecycle

$294M $220Ma 15 16%+ 30 Clients with CAGR New Clients $5M+ in 2016 vs. 8b in 2014 2014 2016

New New Delivery New Market Geographies Capabilities

Increased Addressable Market

a. Excluding disentanglement costs of a large transitioning client b. Excluding a large transitioning client

Gain share at existing Win greater proportion clients of new deals Cross-sell (Operations + Power of ‘One’ EXL Analytics + Consulting + Platforms) UK and APAC

Integrated Offerings ‘Hunting’ capacity

Expand capabilities End-to-end customer across value chain acquisition solution ® (LISS + LifePRO + Onshore delivery RPM + Operations)

Domain Expertise

Key Client Relationships BPO Analytics Platforms Consulting F&A

Large US Life & Annuities Insurer H L L L

Large UK General Insurer H L L H

Global Multinational Insurer

US Mutual Insurer

American Mutual Insurance Company

Leading US P&C Insurer

Global Life & Annuities Insurer

Large P&C Insurer

Large Personal Lines P&C Insurer

Leading US P&C Insurer

Recent Strategic Win - Client 1

Recent Strategic Win - Client 2

Low Medium High

Need: ~70% Opportunity: $600B+ in annual Life Insurance sales begin online premiums and $6B in agency commissions

Target Engage Convert Retain

Digital Marketing Digital Sales Digital Underwriting Digital Service RPM Database LISS LISS LifePro® RPM Marketing RPM Database Actuarial Analytics Digital-Suite Analytics Analytics Robotics & RPM Database Automation Customer Sales Operations Operations Analytics Contact Center Operations

Why will we win? We are the only service provider with an end-to-end capability set

Accelerating our Growth in Healthcare

Rembert de Villa, Executive Vice President, Head of Healthcare Helping Clients Solve Key Industry Problems

EXL Healthcare Service Offerings — Healthcare Analytics • Payer Analytics • Provider Analytics • Customer Acquisition High Cost Operations Management • Clinical and Pharmacy Process Management • Provider Services Lack of • Member/Patient Engagement • Eligibility and Payments Improvement • Revenue Cycle Management in Outcomes Care Management Platform • Utilization Management • Case Management • Disease Management Poor Access Healthcare Consulting • Medical cost Management • Compliance Cost Management Finance and Accounting

Market Opportunity Revenue (2013-2016) Population Health Management Revenue Cycle Management ~9bn ~4bn

H ~5bn 20+% Payment Integrity Annual ~2bn Revenue ~3bn Growth Optimization Customer Engagement F&A Medical M Coding

Claims Ability to Compete to Ability

L Back Office (Procurement, Provider Product HR, Other Platforms Development 10% 15% Market Growth Rate

Adjacent Market Opportunity EXL Focus Areas

Deep Client Relationships Best People in Industry

> 5 of the top 10 U.S. Insurers > 3,000+ Professionals

> 35 Payers > 1,400+ Clinicians

> 15+ Providers > 600+ Analytics Professionals

> 1 in 6 American lives touched by > Chief Medical Officer our Care Management platform

> Clinical Health Solutions Leader

Clinical Leadership Capability Development Development

Clinical Process Customer Training Experience

1> Platform BPO and Onshore Operations

2> Payment Integrity

3> Population Health Management (Gaps-in-Care Closure)

Can increase CARE RADIUS revenue per CARE MANAGEMENT PLATFORM person by

Utilization Disease Case >5x Management Management Management

Embedded Analytics

Paid by Medicare ~$190 billion $1.2 and Medicaid TRILLION Erroneous payments annually ~11% Paid in error ~$132 B

$1.1 Paid by Private Health Insurers TRILLION

~5.5% Paid in error ~$59 B

Pre-Claim Pre-Payment Post-Payment Utilization Review Pre-Payment Review Post-payment Review Validation and Recovery Litigation Support

Bigger Faster Higher Better Pool of Evaluation Success Use of Ideas Rate Data

Results 10x – 15x Return for Client

$1.2 B+ of bonus payments foregone by 6 large payers on account of lower star ratings due to fewer gap closures

Data Conversion Data Abstraction Provider Outreach

Sample Results 96% 30% $10MM+ Increase in Increased case Worth of potential gap closure processing reimbursement on efficiency account of improved audit measures

> Continue to be relevant in a high-growth market

> Grow core business and capture strong position in Payment Integrity and Population Health (gaps-in-care closure)

> Drive innovation through integrated solutions, leading with analytics

Executing on our Go To Market

Nagaraja Srivatsan, Executive Vice President & Chief Growth Officer How do we drive growth ?

> Expand our share of wallet • Grow and scale our Top 100 accounts • Cross-sell our service lines • Win and grow new customers • Leverage consulting as the “tip of the spear” to drive all of EXL service offerings

> Increase our brand recognition

Drive more $50M, $25M accounts

Dedicated client executives/ account managers for top accounts

Client 2014 2016 Mix 5 (> $25M) 4 (> $25M)

18 68 24 92 % ($5M-$25M) ($5M-$25M) 46 63 ($1-$5M) ($1-$5M)

Top 100 EXL Clients Top 100 EXL clients 2014 2016 $13.7M $13.2M per client per client 4 8

23 $3.4M $4.5M per client per client $3.5M $1.6M per client per client 29

1 line 2 lines 3+ lines 1 line 2 lines 3+ lines of business of business of business of business of business of business

New Client Wins New logos acquired 40 in 2014 grew by 63%

34 2-year CAGR

26 New logos acquired in 2015 grew by 200% 2014 2015 2016 in 2016

Operations Management 20 25 21 Strong retention rate Analytics 6 9 19

Top 9 of 15 Top 5 of 10 US US P&C Healthcare insurers insurers P&C Healthcare insurers

Client Portfolio Top 3 of 10 Less than truckload players Mix Top 2 of 10 Full TT&L truckload players Top 2 of 5 Travel and Leisure

Top 12 of 15 US L&A Top 7 of 10 US insurers Banks L&A BFS

Bring power of “One EXL” to drive digital transformation at all our 1 clients

Enable our clients to leverage “new delivery models” through 2 extreme transformation playbooks

Become the trusted advisors to the Chief Risk Officer and Chief 3 Financial Officer

Build industry leading Global Advanced Automation & Robotics 4 practice

5 Be Systems Implementation partner for all our proprietary and partner products

6 Deliver program management, change management and strategy assessments service lines to all our clients

Thought Analysts Improved NPS Leadership Recognitions 9% points Thought Earned mentions for innovation and Leadership RPA in Celent, Gartner, IDC and HfS + papers 40 published Increased coverage outside of YTD 2017 traditional BPO research (Aité, KLAS, Gartner, IDC) Downloads 2015 2016 1000+ YTD 2017 Profiled in Celent report on BFSI innovation labs

Winners Circle Leader Leader Leader Leader

“HfS Blueprint “Property and “NelsonHall “Magic Quadrant “Analytics Business Report: 2016 Casualty Insurance Analytics and for Finance and Process Services Population Health BPO – PEAK Reporting BPS Accounting BPO, (BPS) – PEAK and Care Matrix™ NEAT” (2015) 2015” Matrix™ Management Assessment 2017” Assessment 2017” Business Services”

Engage and Experience ONE

SEAMLESS CAPABILITY Insight and Context

Operations and Execution

Delivering on our Financial Goals

Vishal Chhibbar, Executive Vice President, & Chief Financial Officer Proven business model driving growth and profitability

Revenue CAGR $750 17% $686 $628 o Over 80% of recurring/annuity $526 revenues $479 $443 $2.55 o $27,335 of $361 $2.33 revenue/employee $2.03 $1.82 o 30% increase $1.81 over 2012 $253 $1.58 $1.08 $1.39 o 121% of FCF/NI (3) 2010 2011 2012 2013 2014(1) 2015 2016 2017(2)

Revenue (in USD MM) Adjusted EPS

(1) Excluding reimbursement of transition & disentanglement costs Midpoint of guidance, (2) Mid-point of guidance (3) Free cash flow /Net income

Operations Management Analytics $166 USD MM $520 USD MM $506 $122

$460 $66 $433 $46 $406 $37

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Constant currency Constant currency 8.2% CAGR from 2012 46.4% CAGR from 2012

Constant currency 13.2% CAGR

2014 Q1 ‘17 77% BPO 27% 56% Analytics BPO Non-linear revenue Revenue Mix 17% improving realization. BPaaS 12% 11% TBP/OBP revenues BpaaS Analytics contribution ↑ 900 bps

Client concentration Top 1: 8% Top 1: 7% Mitigating risk on revenues Top 3:20% Top 3:17% while continuing to grow Top 5:29% Top 5:24% Top 10: 47% Top 10: 39%

6% 5% Others 24% Others 44% US India Expanded delivery footprint

Geographic 59% reducing dependency 38% diversification 11% India on India geography US 13% Philippines Philippines

USD MM Capex Opex $27

$17 $9 $10 $4

EXLeratorTM Investment Advanced Product & platform Growth & new in Analytics automation & investments geographies robotics investments

of investments in the last $67MM 3 years and growing

Tai lwi nds: Tai lwi nds: FX benefits Operational Better utilization in efficiencies Analytics Improved SG&A leverage acquisition Headwinds: margins Better utilization Acquisitions in consulting Investment in and Analytics new client ramps SG&A leverage Investment in 36.7% geographies 35.1%- Headwinds: Impact of 34.7% 35.4% FX Impact transitioning Investment in clients 14.8% 14.3%- capability Investments in 14.0% 14.5% development capability development 2014 (1) 2016 2017(E)

Gross margin Adjusted operating margin

Note: The above reasoning is for adjusted operating margin (1) 2014 Gross margin is "Excluding Reimbursement of transition and disentanglement costs"

USD MM

$131

$274 $79 $36 $227 $45 (1)

$154 $182 Cash & short Cash from Acquisitions Capex Share Cash & short term operations buy back term investments investments 2013 2016

Adding shareholder value through share buyback and acquisitions

(1) Draw down of revolver

Revenue USD MM

$740-$760

$686

2016 2017 guidance

Cents Adjusted EPS

3 250-260 6-9 (8)-(6)

16-21 233

2016 Revenue Margin Investments in Share 2017 Growth improvement Frontend & Buyback guidance Capability

(1) The guidance is at INR/USD FX of 66

Double-digit revenue growth

Drive sustainable margin expansion

Enhancing Shareholder Value Invest in innovation and capability development

Acquisitions to add capability in digital, analytics and enhance geographic footprints

Focus on shareholder value creation through effective capital allocation

Closing Remarks and Q&A

Rohit Kapoor, Vice Chairman & Chief Executive Officer Image window size is 10” x 4.82”

Tour of the Digital Experience Center Image window size is 10” x 4.82”

APPENDIX

EXLSERVICE HOLDINGS, INC. Reconciliation of Adjusted Financial Measures to GAAP Measures In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures (adjusted operating income, adjusted operating income margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted earnings per share and information on a constant currency basis) that the Securities and Exchange Commission defines as “non-GAAP financial measures.” The non-GAAP financial measures disclosed by EXL should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. EXL believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP for a number of reasons, including, without limitation, EXL’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with further acquisitions and the currency fluctuations. EXL also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

The information provided on a constant currency basis reflects a comparison of current period results translated at the prior period currency rates. EXL’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine peso. The average exchange rate of the U.S. Dollar against the Indian rupee decreased from 67.51 during the quarter ended March 31, 2016 to 66.46 during the quarter ended March 31, 2017, representing an appreciation of 1.6%. The average exchange rate of the U.S. Dollar against the Philippine peso increased from 47.09 during the quarter ended March 31, 2016 to 50.05 during the quarter ended March 31, 2017, representing a depreciation of 5.9%. The average exchange rate of the British Pound against the U.S. Dollar decreased from 1.42 during the quarter ended March 31, 2016 to 1.24 during the quarter ended March 31, 2017, representing a depreciation of 13.9%. This information is provided because EXL believes that it provides useful comparative incremental information to investors regarding EXL’s operating performance.

The following table shows the reconciliation of these non-GAAP financial measures from GAAP measures for the three months ended March 31, 2017 and 2016 and the three months ended December 31, 2016.

(in USD MM) 2014 2015 2016 Revenue $499 $628 $686 Add: Reimbursement of transition and disentanglement costs $26 Adjusted Revenue $526 $628 $686

Income from operations $34 $67 $64 Add: Stock Compensation $11 $16 $20 Add: Amortization and impairment $7 $10 $12 Add: Reimbursement of transition and disentanglement costs $26

Adjusted Income from Operations $78 $94 $96 Adjusted Income from Operations margins 14.8% 14.9% 14.0%

(USD per share data) 2014 2015 2016 Diluted EPS $0.96 $1.51 $1.79

Add: Stock Compensation $0.33 $0.47 $0.57 Add: Amortization and impairment $0.20 $0.30 $0.34 Add: Reimbursement of transition and disentanglement costs $0.78 Subtract: Tax impact on stock compensation expense ($0.13) ($0.18) ($0.21) Subtract: Tax impact on amortization of intangibles ($0.03) ($0.07) ($0.09) Subtract: Tax impact on reimbursement of transition and disentanglement costs ($0.30) Subtract: Changes in fair value of Earn-out consideration, net of tax ($0.07)

Adjusted Diluted EPS $1.82 $2.03 $2.33