2017 Investor Day 1-66 FINAL
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Image window size is 10” x 4.82” Winning in the Digital World INVESTOR DAY, June 20, 2017 © ExlService Holdings, Inc. Safe harbor statement 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. June 20, 2017 | © 2017 ExlService Holdings, Inc. | 2 Speakers & Topics 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 3 Image window size is 10” x 4.82” 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 5 Key trends impacting our business 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 6 EXL Value Proposition 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 7 Our addressable market opportunity has increased multi-fold 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 8 Power of Integration of Operations Management and Analytics 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 9 Strategic Digital Transformation Partner 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 10 Client Testimonial: http://info1.exlservice.com/guardian-life- insurance-company-of-america June 20, 2017 | © 2017 ExlService Holdings, Inc. | 11 Image window size is 10” x 4.82” 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 13 Extreme Transformation: Multiple Dimensions LEVERS Benefits Multi Advanced Automation Speed - TM & Robotics Accuracy shoring STRUCTURES erator Advanced Intelligence EXL Analytics Insights FRAMEWORK Redesign Design Thinking Optimization InnovativePricing Customer Experience Partnerships Capability Access Specialization DOMAIN EXPERTISE June 20, 2017 | © 2017 ExlService Holdings, Inc. | 14 Integration of Advanced Analytics 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 15 Leveraging Automation & Robotics 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 June 20, 2017 | © 2017 ExlService Holdings, Inc. | 16 Digital Operations