revised - mailers to the analysts [company update]

8/20/2019 Revised - Mailers to the Analysts [Company Update]

1/51


2/51


3/51

Confidential

Index

Points Slide No.

Business Overview 3-4

Financial Performance Summary for Q1’16 5-7

Geometric Consolidated Financial Performance for Q1’16 8-17

Revenue & Client Data Geometric Consolidated for Q1’16 18-24

Business Highlights for Q1’16 25

Key Financial Data 26

Operations and HR Data 27-30

Geometric Excl. 3DPLM Financial Performance for Q1’16 31-35

Revenue & Client Data Geometric Excl. 3DPLM for Q1 16 36-39

Business Analysis Geometric Excl. 3DPLM for Q1’16 40

Key Financial Data GL excl 3D 41

General Information 42-50

2


4/51

Confidential

• Move in engagement models from transactional and

performance based to total solutions, thus increasing the

‘value’ delivered to customer

• Use of Agile methodology - defining and evolution of

project specifications on-the-go; thus demanding stronger

onshore presence while at the same time managing

offshoring

• Move from project management to program management

• Solutions with synergy in design, analysis, manufacturing,

and engineering

• Increase in alliances and technology partnerships to deliver

end-to-end solutions

• Need for building IP along specialized areas or demonstrate

maturity in process to build scale to stay relevant

• Shift in product features will lead to surplus of conventional

skills, resulting in a need for multi-skilling, up-skilling,

retraining and the ability to do something ‘extra’

Market Forces Driving Our Company

3


5/51

Confidential

To combine our expertise across software,engineering and embedded to offer combined or

blended solutions to support the move towards

systems engineering, connected cars, smart

factories, mobility, etc.

Geometric: Strategy 2020

1984

1992

2003

2013

Software Product Dev.

Software Services

Engineering Services

Embedded Solutions

2020

Blended

Solutions

I n v e s t i n

More onsite

presence

Multiskilling

employees

Program

management

4


6/51

Confidential

FINANCIALS

5


7/51Confidential

Summary Q1 FY16

46.4546.26

44.40 44.29

44.96

46.12

46.60

42.92

46.80

47.46

40.00

41.00

42.00

43.00

44.00

45.00

46.00

47.00

48.00

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16

Revenue USD

Revenue USD

*figures in millions

Revenues INR

INR 3,083.52 Mn

Q-o-Q 3.6%

CQGR

0.22%10 quarter

Net Income

INR 230.24 Mn

EPS

INR 3.57

EBITDA

INR 534.83 Mn

6


8/51Confidential

• Consolidated operating revenue in USD terms increased by 1.4% in current quarter, over previous quarter. In INR

terms, consolidated revenues increased by 3.6% over previous quarter . It increased by 3.6 % Y-o-Y, in terms of

USD & increased by 10.3% in INR terms.

• Q1 FY 16 consolidated (excluding 3D PLM) operating revenues for the quarter increased by 1.7% in USD terms and

increased by 3.9% in INR terms. It increased by 1.8% Y-o-Y, in terms of USD & increased by 9.2% in INR terms.

• Effective tax rate for the quarter including the prior period adjustment is 34.6%.

• EPS after adjusting for extraordinary items is INR 3.57 as against INR 2.97 in Q1 16 and INR 2.56 in Q2 15.

• New contracts amounting to USD 12.14 Mn won during the quarter.

• Total headcount optimized from 4866 in Q1 16 to 4773 in Q2 16.

Summary

7


9/51Confidential

GEOMETRIC CONSOLIDATED PERFORMANCE FOR Q2 FY16

8


10/51Confidential

Income Statement Q-o-Q (figures in INR millions)

9

Income Statement Q2 16 Q1 16 Q2 15 Var (QoQ) Var (YoY)

Operating Revenue (in USD millions) 47.46 46.80 46.12 1.4% 2.9%

Exchange Rate 64.98 63.58 60.63

Operating Revenue 3,083.52 2,975.55 2,796.67 3.6% 10.3%

Cost Of Revenue (COR) 2,025.53 2,071.79 1,854.81 -2.2% 9.2%Contribution 1,058.00 903.76 941.86 17.1% 12.3%

Contribution as % of Operating Revenue 34.3% 30.4% 33.7%

Sales & Marketing (S&M) Expense 161.34 171.52 164.42 -5.9% -1.9%

General & Administrative (G&A) Expense 472.46 448.66 370.08 5.3% 27.7%

Interest and bank charges 10.14 8.71 7.75 16.4% 30.9%

Depreciation and Lease Rental 102.51 84.93 92.76 20.7% 10.5%

Operating Profit 311.54 189.95 306.86 64.0% 1.5%

Operating Profit as % of Operating Revenue 10.1% 6.4% 11.0%

Other Income 129.15 142.85 19.55 -9.6% 560.5%

Profit Before Tax 440.69 332.79 326.41 32.4% 35.0%

PBT as % of Operating Revenue 14.3% 11.2% 11.7%

EBITDA* 553.34 426.43 432.38 29.8% 28.0%

EBITDA as % of Operating Revenue* 17.9% 14.33% 15.5%

Tax 153.40 83.60 109.36 83.5% 40.3%

Minority Interest 59.79 57.92 54.15 3.2% 10.4%

Profit After Tax (for the period) 227.51 191.27 162.90 18.9% 39.7%

PAT as % of Operating Revenue 7.4% 6.4% 5.8%

Prior Period Adjustments 2.73 0.00 0.00

Adjusted Profit After Tax 230.24 191.27 162.90 20.4% 41.3%PAT as % of Operating Revenue 7.47% 6.43% 5.82%

EPS 3.57 2.97 2.56 20.3% 39.6%

Non-recurring items 0.00

Add : Prior period reconciliation (2.73) 0.00 0.00

Add : Consultant Fees 63.00 40.14 0.00

EPS (adjusted for non-recurring items) 4.50 3.59 2.56 25.4% 76.1%

*There was an error in the earlier version – EBITDA reported was 17.14 % as against the correct EBITDA of 17.9% for Q2; Q1 was reported as 13.98% as

against the correct EBITDA of 14.33%


11/51Confidential

Balance Sheet Summary

Balance sheet position as on period end

(figures in INR millions)

Sources of Funds Q2 16 Q1 16 Q2 15

Shareholder’s Funds

Share Capital 129.34 129.07 127.95

Share Application Money - 3.85 1.44

Reserves & Surplus 4,211.55 4,017.47 3,787.06

Non-Current Liabilities 99.48 101.36 72.29

Current Liabilities 2,289.06 2,601.89 2,148.41

Minority Interest 765.06 913.70 736.70

Total 7,494.49 7,767.33 6,873.85

Applications of Funds Q2 16 Q1 16 Q2 15

Non-Current Assets

Fixed Assets 1,321.85 1,349.50 1,234.18

Goodwill on Conslidation 538.66 519.30 752.90

Other Non-Current Assets 505.97 639.26 385.14

Current Assets

Current Investments 1,204.54 1,209.47 655.74Trade Receivables 1,646.45 1,705.79 1,406.22

Cash and Cash Equivalents 759.76 684.77 674.77

Other Current Assets 1,517.26 1,659.24 1,764.89

Total 7,494.49 7,767.33 6,873.85

10


12/51Confidential

Reconciliation of Consolidated Income statement with Clause 41(figures in INR millions)

As per Clause 41 (Printed in the news papers)

D i f f e r e n c e3,084 2,095 82 575 121 10 444 154 - 60 230

R e v e n u e

f r o m

o p e r a t i o n s

E m p l o y e e

b e n e f i t s

e x p e n s e

D e p r e c i a t i o n

a n d

a m o r t i s a t i o n

e x p e n s e

O t h e r

E x p e n s e s

O t h e r

I n c o m e

F i n a n c e

c o s t s

P r o f i t / ( L o s s )

f r o m

O r d i n a r y

A c t i v i t i e s

b e f o r e t a x

T a x E x p e n s e

T a x E x p e n s e

i n r e s p e c t o f

e a r l i e r y e a r s

M i n o r i t y

I n t e r e s t i n

N e t P r o f i t o f

t h e

S u b s i d i a r y

C o m p a n y

N e t

P r o f i t / ( L o s s )

a f t e r t a x e s

a n d m i n o r i t y

i n t e r e s t

A s p e r I n v e s t o r s p r e s e n t a t i o n

As per Investor Presentation

3,084 Operating Revenue3,084

-

2,026 Cost Of Revenue (COR) 1,881 7 137 -

161 Sales & Marketing (S&M) Expense 133 28 -

472 General & Administrative (G&A) Expense 115 358 -

10 Interest and bank charges 10 -

100 Depreciation and Lease Rental 74 26 -

314 Operating Profit -

129 Other Income 129 -

443 Profit Before Tax 443 -

535 EBITDA -

153 Tax 153 -

60 Minority Interest 60 -

230 Profit After Tax (for the period) 230 -

Difference(0)

(34) 0 25 (8) - - - - - - -

Expnses clubbed in Manpower Cost under COR in

Investor Presentation, however grouped in other

expenses in Clause 41 (Sub contracting charges)

41 (41) -

Training Expenses in clause 41 booked under

Manpoer expenses, but in analyst PPT it is

considered under other expenses

15 (15) -

Reimbursement of shared services distributed

over manpower and other expenses in the ration

of 70:30, which is not considered in Analyst PPT

(23) 23 -

Misc. incoeme considered in Other income in

clause 41 , but it is netted off against misc

expenses in Analyst PPT

2 2 -

Provision for doubtful debts written back

considered as income in Clause 41, whereas,

netted off with expenses in Investor Presentation

6 6 -

Net Difference-

- - - - - - - - - - -

11


13/51Confidential

Other Income : Details consolidated


Other Income Q2 16 Q1 16 Q4 15

Investment Income 17.63 14.39 12.87

Sundry balances w/back 0.40 0.74 1.57

Profit on Sale of Assets 0.39 0.31 0.74

Others 4.44 3.07 6.76

Total Income on Investment - (A) 22.87 18.51 21.94

Gain/(Loss) on Subsidiary Revaluation

MTM Gain/ (Loss) (11.56) (10.89) 39.04

Gain/ (Loss) on Realization of Debtors 142.34 163.25 13.89

Gain/ (Loss) on under/ over hedging (24.51) (28.02) (34.25)

Total Gain/(Loss) on Forex - (B) 106.28 124.34 18.68

Total Other Income (A+B) 129.15 142.85 40.62

12


14/51Confidential

Tax Walk

25.1

1.5

6.8

1.1 34.6

15.00

20.00

25.00

30.00

35.00

40.00

Q1 16 One Time tax adjustments One time Deferred tax credit in Q1 on unamortized

goodwill of Teksoft

Increase in losses of subsidiaries in Q2

Q2 16

13


15/51Confidential

Profit Trends

0%

2%

4%

6%

8%

10%

12%14%

16%

18%

20%

Q1 FY

14

Q2 FY

14

Q3 FY

14

Q4 FY

14

Q1 FY

15

Q2 FY

15

Q3 FY

15

Q4 FY

15

Q1 FY

16

Q2 FY

16

EBITDA as % of Revenue

0.00

0.50

1.00

1.50

2.00

2.503.00

3.50

4.00

Q1

FY14

Q2

FY14

Q3

FY14

Q4

FY14

Q1

FY15

Q2

FY15

Q3

FY15

Q4

FY15

Q1

FY16

Q2

FY16

EPS (INR)

0%

5%

10%

15%

20%

25%

30%

35%

Q1

FY14

Q2

FY14

Q3

FY14

Q4

FY14

Q1

FY15

Q2

FY15

Q3

FY15

Q4

FY15

Q1

FY16

Q2

FY16

Return on Net Worth

0%

10%

20%

30%

40%

50%

60%

Q1

FY14

Q2

FY14

Q3

FY14

Q4

FY14

Q1

FY15

Q2

FY15

Q3

FY15

Q4

FY15

Q1

FY16

Q2

FY16

PAT as % of Revenue Tax as % of Profit

14


16/51Confidential

Consolidated Revenue Analysis

*Onsite includes revenues in near shore centers in high cost countries.

Operating Revenues


59.25%

35.60%

5.15%Q1 FY16

LCC HCC IP

59.81%

34.82%

5.37%Q2 FY16

Other Income Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Investment Income 17.63 0.5% 14.40 0.5% 9.93 0.4%

Sale of Assets 0.39 0.0% 0.37 0.0% 3.71 0.1%

FX Gain/(Loss) 106.28 3.3% 124.34 4.0% 5.66 0.2%

Others 4.84 0.2% 3.74 0.1% 0.25 0.0%

Total 129.15 4.0% 142.85 4.6% 19.55 0.7%

15


17/51Confidential

Consolidated Cost Analysis(figures in INR millions)

Cost Of Revenue Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Manpower 1,880.81 61.0% 1,910.68 64.2% 1,696.34 60.7%

Travel 44.07 1.4% 60.39 2.0% 60.02 2.1%Software amortization 7.39 0.2% 8.64 0.3% 25.74 0.9%

Other Software 71.36 2.3% 72.24 2.4% 55.42 2.0%

Staff Welfare 14.25 0.5% 13.80 0.5% 12.56 0.4%

Data Communication 7.65 0.2% 6.04 0.2% 4.75 0.2%

Total 2,025.53 65.7% 2,071.79 69.6% 1,854.81 66.3%

S&M Expense Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Manpower 132.85 4.3% 139.21 4.7% 117.72 4.2%

Travel 13.66 0.4% 17.08 0.6% 17.85 0.6%

Other Business Expenses 14.83 0.5% 15.23 0.5% 28.85 1.0%

Total 161.34 5.2% 171.52 5.8% 164.42 5.9%

16


18/51Confidential

Consolidated Cost Analysis contd….(figures in INR millions)

G&A Expense Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Manpower 114.76 3.7% 138.49 4.7% 123.96 4.4%

Travel 16.03 0.5% 10.67 0.4% 13.44 0.5%

Facility 106.11 3.4% 106.71 3.6% 91.64 3.3%

Recruitment 6.04 0.2% 9.37 0.3% 17.82 0.6%

Training 10.62 0.3% 10.17 0.3% 7.37 0.3%

Communication & Information System 10.62 0.3% 12.35 0.4% 11.43 0.4%

Insurance 1.25 0.0% 4.08 0.1% 3.19 0.1%

Legal & Professional 140.04 4.5% 85.14 2.9% 46.39 1.7%

Bad Debts 8.22 0.3% 6.97 0.2% 0.40 0.0%

Others 58.77 1.9% 64.72 2.2% 54.44 1.9%

Total 472.46 15.3% 448.66 15.1% 370.08 13.2%

Depreciation & Lease Rentals Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Facility Depreciation 23.92 0.8% 19.76 0.7% 21.78 0.8%

Non-facility Depreciation 52.69 1.7% 46.15 1.6% 50.70 1.8%

Lease Rentals 25.90 0.8% 19.01 0.6% 20.27 0.7%

Total 102.51 3.3% 84.93 2.9% 92.76 3.3%

17


19/51

Confidential

Offshore Leverage

84 84 85 85 86 86 86 85 85 86

16 16 15 15 14 14 14 15 15 14

-

20

40

60

80

100

Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY 16

LCC HCC

By Revenue

By Effort

Revenue Break up above excludes IP.

(in % terms)

61 60 61 58 61 62 60 60 62 63

39 40 39 42 39 38 40 40 38 37

0

10

20

30

40

50

60

70


18


20/51

Confidential

Service Lines – Revenue Distribution

Revenues shown as products in the previous quarters, are now being referred to as IP

(figures in USD millions)

26.7627.40 27.17

25.8026.53

27.2126.38

25.58

28.28 29.01

14.38 13.4412.06

13.19 13.59 14.0915.12

13.5914.90

14.63

2.79 2.80 2.322.29

2.07

1.38 1.38

1.16 1.25 1.25

2.512.61 2.84 3.02 2.77 3.45

3.712.59 2.36 2.55

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00


Software Services Engineering Services Embedded IP

19


21/51

Confidential

Service Lines - Revenue Distribution as % of total

57.63%59.24%

61.21%

58.26%59.00% 58.98%

56.61%

59.61% 60.42%61.14%

30.96%29.06%

27.17%29.77% 30.22% 30.54%

32.45% 31.65% 31.85%

30.84%

6.02% 6.06% 5.23% 5.16% 4.61%

2.99%2.97% 2.70% 2.68% 2.64%

5.40% 5.64%6.40% 6.81% 6.17%

7.48% 7.97%

6.04% 5.05% 5.38%

0%

10%

20%

30%

40%

50%

60%

70%



* Revenues shown as products in the previous quarters, are now being referred to as IP

20


22/51

Confidential

Regions

* previous period figures reinstated wherever classication changes to make it comparable

61.05%59.71%

56.80%55.99%

58.29%57.10% 57.19%

58.42%

61.64%59.85%

31.05%30.68%

32.83% 33.16% 31.93%33.11%

31.26%28.68%

25.93%28.57%

1.54%

3.42% 3.50% 3.89%4.03% 4.84% 4.98%

6.34% 5.80%

6.09%6.37% 6.19% 6.86% 6.96% 5.76%

4.95%

6.57% 6.55% 6.63%

5.49%

0%

10%

20%

30%

40%

50%

60%

70%


USA Europe APAC India

21


23/51

Confidential

Customer Segments

62.79% 61.88% 61.70%62.84% 63.28% 63.63%

64.68% 63.96% 62.86% 62.67%

3.23% 2.93% 2.28% 2.40% 2.12% 2.20% 2.08% 2.50% 2.47% 2.44%

33.98%35.19% 36.02% 34.76% 34.59% 34.17% 33.24% 34.24%

34.68% 34.89%

0%

10%

20%

30%

40%

50%

60%

70%


Direct Industrial Through Partners Software ISVs

22


24/51

Confidential

Customer Analysis

Clients Q2 16 Q1 16 Q2 15

Total number of active clients 56 60 74

Number of new clients added - 1 2

Revenue (%) Q2 16 Q1 16 Q2 15

Top 1 30% 29% 28%

Top 5 59% 58% 52%

Top 10 74% 73% 66%

Number of customers with more than 5%

revenue contribution3 5 4

Clients Q2 16 Q1 16 Q2 15

> $ 10 million 3 4 3

$5 - $10 million 6 4 3

$1 - $5 million 17 16 20

< $1 million 30 36 48

Total number of active Clients refers to number of clients against whom revenue recognition happened during the Quarter

23


25/51

Confidential

Deal Analysis

Order Book (USD million) Q2 16 Q1 16 Q2 15

New deals won 12.14 13.65 9.54

New Deal Analysis – Q2

16 (USD Million)US Europe APAC India Total

Engineering Services 2.85 0.12 0.59 0.31 3.86

Software Services 4.56 2.34 0.78 0.17 7.85

Embedded - 0.36 - 0.08 0.43

Products 0.00 0.00 0.00 0.00 0.00

Total 7.41 2.81 1.36 0.55 12.14

24

hl h


26/51

Confidential

Business Highlights

• Launched a next generation collaboration solution, GeometricEDGE® to enable design

and engineering data exchange between OEMs, partners, and joint ventures for global

engineering

• Alliance with PDTec, a leading provider of software and services for enterprise wide

collaboration in product development

Key Wins

• Signed a multi-million multi-year PLM engagement with a leading Oil & Gas technologycompany

• Entered into a contract for next generation CAx solution for a manufacturer of

orthodontic solutions in North America

• Won a manufacturing engineering deal with a key robotics and factory automation tools

manufacturer• Awarded a PLM services project with a leading Aerospace player in Europe

• Signed an engineering services project with a leading North American Automotive OEM

Business Highlights

25


27/51

Confidential

Key Financial Data

Parameter Q2 16 Q1 16 Q2 15

CAPEX (INR million) 224.25 138.08 175.24

DSO 49 53 47

% Tax 34.6% 25.1% 33.50%

Outstanding Loans Q2 16 Q1 16 Q2 15

Working Capital Loan (USD million) 8.16 6.55 5.11

PCFC Loan (USD million) 3.00 3.00 3.00

26


28/51

Confidential

OPERATIONS & HR DATA Q2 FY16

27

O i l P


29/51

Confidential

Operational Parameters

GL Consolidated excluding 3D PLM

GL Consolidated

Project Type (%)

Revenue (%) Q2 16 Q1 16 Q2 15

Time & Material 81.6% 81.6% 82.4%

Fixed Price 18.4% 18.4% 17.6%

Utilization (%)

Q2 16 Q1 16 Q2 15

Hourly Utilization 74.11% 72.70% 71.44%

Formula for utilization has changed as below to be in line with Industry Practices effective July 2015 and had been changed retrospectively

for reporting purpose

• Total billable hours to customer / Planned Hours

• Planned Hours = Total available hours – Unpaid leaves and Company holidays

Project Type (%)

Revenue (%) Q2 16 Q1 16 Q2 15

Time & Material 86.6% 86.7% 86.5%

Fixed Price 13.4% 13.3% 13.5%

28

E l B


30/51

Confidential

Employee Base

40.0%

31.4%

18.6%

10.0%Experience Profile

< 3 years

3 - 6 years

6 - 8 years

> 8 years All numbers as of end of period

-

800

1,600

2,400

3,200

4,000

4,800

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

2,583 2,588 2,678 2,7812,913 2,908 2,851 2,691

16811706 1728

17971828 1899 2015 2,082

4,264 4,2944,406 4,578

4,741 4,807 4,866 4,773

Other subsidiaries Parent + Completely owned subsidiaries

Headcount Q2 16 Q1 16 Q4 15

Delivery 4,377 4,463 4,392

Operations Support 52 59 68

Sales31 32 39

Corporate Functions 313 312 308

Total 4,773 4,866 4,807

29

i d i i l i


31/51

Confidential

Recruitment and Attrition Analysis

Period Attrition (%)

Q2 16 14.4%

Q1 16 10.9%

Q4 15 13.8% 75.6%

20.0%2.6%

1.9%

Recruitment Profile

0-3 years

3-6 years

6-8 years

8+ years

-200

-100

0

100

200

300

400

500

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

161208

303

441354

285 306 270

-131 -129 -168 -174 -142 -168-129

-173

Recruitment Attrition

3079

135

267

212

117 177

97

30


32/51

Confidential

GEOMETRIC EXCL 3D PERFORMANCE FOR Q2 FY16

31

I S Q Q


33/51

Confidential

Income Statement Q-o-Q (figures in INR millions)

32

Income Statement Q2 16 Q1 16 Q2 15 Var (QoQ) Var (YoY)

Operating Revenue (in USD millions) 34.55 33.99 33.94 1.7% 1.8%

Exchange Rate 65.00 63.62 60.58

Operating Revenue 2,245.86 2,162.31 2,056.18 3.9% 9.2%

Cost Of Revenue (COR) 1,501.46 1,561.91 1,423.18 -3.9% 5.5%Contribution 744.40 600.39 633.00 24.0% 17.6%

Contribution as % of Operating Revenue 33.1% 27.8% 30.8%

Sales & Marketing (S&M) Expense 161.34 171.23 164.42 -5.8% -1.9%

General & Administrative (G&A) Expense 353.15 329.24 280.39 7.3% 25.9%

Interest and bank charges 9.85 8.31 7.54 18.6% 30.7%

Depreciation and Lease Rental 44.29 31.66 41.36 39.9% 7.1%

Operating Profit 175.76 59.96 139.30 193.1% 26.2%

Operating Profit as % of Operating Revenue 7.8% 2.8% 6.8%

Other Income 51.39 58.21 (1.81) -11.7% -2947.2%Profit Before Tax 227.15 118.17 137.49 92.2% 65.2%

PBT as % of Operating Revenue 10.1% 5.5% 6.7%

EBITDA * 281.30 158.14 190.88 77.9% 47.4%

EBITDA as % of Operating Revenue* 12.5% 7.3% 9.3%

Tax 82.21 9.10 49.37 803.8% 66.5%

Profit After Tax (for the period) 144.94 109.08 88.12 32.9% 64.5%


Prior Period Adjustments 0.00 0.00 0.00

Adjusted Profit After Tax 144.94 109.08 88.12 32.9% 64.5%


EPS 2.24 1.69 1.38 32.7% 62.4%

Non-recurring items

Add : Consultant Fee 63.00 40.14 0.00

EPS (adjusted for non-recurring items) 3.22 2.31 1.38 39.2% 133.0%

*There was an error in the earlier version – EBITDA reported was 7.8 % as against the correct EBITDA of 12.5% for Q2; Q1 was reported as 6.8% as against

the correct EBITDA of 7.3%

Oth I D t il l di 3D PLM


34/51

Confidential

Other Income : Details excluding 3D PLM


Other Income Q2’ 16 Q1’ 16 Q4‘ 16

Investment Income 10.90 6.32 5.99Sundry balances w/back 0.40 0.74 0.00

Profit on Sale of Assets 0.04 0.06 -

Others 4.00 0.53 5.56

Total Income on Investment - (A) 15.34 7.65 11.55

MTM Gain/ (Loss) (10.80) (0.98) 15.90

Gain/ (Loss) on Realization of Debtors 58.01 57.02 (47.42)

Gain/ (Loss) on under/ over hedging (11.16) (5.45) (25.27)

Total Gain/(Loss) on Forex - (B) 36.05 50.59 (56.79)

Total Other Income (A+B) 51.39 58.24 (45.24)

33

O ti R A l i


35/51

Confidential

Operating Revenue Analysis

Operating Revenues


*Onsite includes revenues in near shore centers in high cost countries

43.90%49.01%

7.09%

Q1 FY16

LCC HCC IP

44.79%47.82%

7.39%

Q2 FY16

Other Income Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Investment Income 10.90 0.5% 6.32 0.3% 4.73 0.2%Sale of Assets 0.04 0.0% 0.05 0.0% 0.22 0.0%

FX Gain/(Loss) 36.05 1.6% 50.59 2.3% -6.82 -0.3%

Others 4.40 0.2% 1.25 0.1% 0.06 0.0%

Dividend Income from 3D PLM 0.00 0.0% 0.00 0.0% 0.00 0.0%

Total 51.39 2.2% 58.21 2.6% (1.81) -0.1%

34

C t A l i


36/51

Confidential

Cost Analysis (figures in INR millions)

Cost Of Revenue Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Manpower 1,376.16 61.3% 1,413.36 65.4% 1,276.49 62.1%

Travel 41.80 1.9% 58.28 2.7% 57.26 2.8%

Software amortization 6.56 0.3% 8.11 0.4% 24.58 1.2%

Other Software 62.55 2.8% 70.38 3.3% 53.88 2.6%Staff Welfare 6.77 0.3% 5.90 0.3% 6.22 0.3%

Data Communication 7.34 0.3% 5.88 0.3% 4.75 0.2%

Total 1,501.18 66.8% 1,561.91 72.2% 1,423.18 69.2%

G&A Expense Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Manpower 93.16 4.1% 118.24 5.5% 105.60 5.1%

Travel 9.16 0.4% 7.89 0.4% 9.77 0.5%

Facility 60.26 2.7% 60.53 2.8% 57.49 2.8%

Recruitment 4.96 0.2% 8.54 0.4% 16.89 0.8%

Training 7.04 0.3% 8.61 0.4% 5.48 0.3%

Communication & Information System 10.12 0.5% 11.32 0.5% 9.62 0.5%

Insurance 0.22 0.0% 3.20 0.1% 2.26 0.1%

Legal & Professional 133.93 6.0% 78.99 3.7% 43.54 2.1%

Bad Debts 8.22 0.4% 6.97 0.3% 0.40 0.0%

Others 26.08 1.2% 24.95 1.2% 29.35 1.4%

Total 353.15 15.7% 329.24 15.2% 280.39 13.6%

Depreciation & Lease Rentals Q2 16 % of OPR Q1 16 % of OPR Q2 15 % of OPR

Facility Depreciation 7.77 0.3% 7.64 0.4% 8.38 0.4%

Non-facility Depreciation 10.87 0.5% 5.00 0.2% 12.89 0.6%

Lease Rentals 25.64 1.1% 19.01 0.9% 20.09 1.0%

Total 44.29 2.0% 31.66 1.5% 41.36 2.0%

35

Off h L


37/51

Confidential

Offshore Leverage

73 73 74 74 75 75 76 74 74 74

27 2726 26 25 25 24

2626 26

0

10

20

30

40

50

60

70

80


LCC HCC

By Revenue

By Effort

Revenue Break up above excludes IP.

(in % terms)

45 42 43 4146 46 45 45 47

48

55 58 5759

54 54 55 55 53 52

0

10

20

30

40

50

60

70


36

Service Lines Revenue Distribution


38/51

Confidential

Service Lines – Revenue Distribution

13.62

13.96

14.40

13.88

14.39 15.02

14.55

14.11

15.46

16.11

14.38

13.44

12.06

13.1913.59

14.09

15.12

13.59

14.9014.63

2.79 2.802.32 2.29 2.07

1.38 1.38 1.16 1.25

1.25

2.51 2.61 2.843.02

2.773.45

2.87

2.59 2.36 2.55

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00



* Revenues shown as products in the previous quarters, are now being referred to as IP

(figures in USD millions)

37

Service Lines Revenue Distribution as % of total


39/51

Confidential

Service Lines - Revenue Distribution as % of total

40.89%

42.54%45.53%

42.88%

43.83%

44.26%

41.84%

44.88%45.50% 46.63%

43.18%

40.96%

38.15%

40.74%

41.39%

41.50%

43.50%

43.19% 43.85%42.35%

8.39%8.55%

7.34%7.07% 6.32%

4.06% 3.98% 3.69% 3.69% 3.63%

7.53%7.95%

8.98%9.31%

8.45%10.17%

10.68%8.24%

6.95% 7.39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%



** Revenues shown as products in the previous quarters, are now being referred to as IP

38

Revenue Breakup by Verticals


40/51

Confidential

46.3%

22.7%

9.5%

14.5%7.1%

Automotive Industrial Aerospace E & S IP

47.2%

22.2%

9.7%

14.0%6.9%

Revenue Breakup by Verticals

Q2 16Q1 16

Vertical break-up excludes 3D Revenue

Vertical (%) Q2 16 Q1 16

Automotive 47.2% 46.3%

Industrial 22.2% 22.7%Aerospace 9.7% 9.5%

E & S 14.0% 14.5%

IP 6.9% 7.1%

39

Business Analysis Q2 FY 16


41/51

Confidential

Business Analysis Q2 FY 16

• Analysis has been done assuming a constant currency & manpower cost has been taken at standard cost

• Software Services includes IP

VerticalsSoftware

Services

Engineering

ServicesEmbedded

Revenue ($ Mn) 17.72 14.76 1.21

CM % 44.2% 20.6% -2.8%

OP % 16.9% -7.2% -32.2%

PBT % 20.4% -3.3% -28.0%

Verticals Automotive Industrial Aerospace E&S IP

Revenue ($ Mn) 15.92 7.57 3.21 4.68 2.45

CM % 28.5% 22.6% 33.2% 48.4% 50.4%

OP % 2.1% -4.9% 0.5% 27.0% 11.5%

PBT % 5.9% -1.3% 4.1% 30.5% 15.2%

40

Key Financial Data


42/51

Confidential

Key Financial Data

Forward Contracts Q2 16 Q1 16 Q4 15

Forward Cover > 90 Days(USD Mn) 22.73 21.49 20.70

Forward cover < 90 Days(USD Mn) 6.18 6.99 5.02

Total (USD Mn) 28.90 28.48 25.72

Forward Cover > 90 Days(EUR Mn) 5.56 2.91 2.64

Forward Cover < 90 Days(EUR Mn) 1.63 1.39 1.26

Total (EUR Mn) 7.19 4.30 3.90

USD

Average Rate 69.37 68.75 68.21

> 90 Days(USD Mn) 22.73 21.49 20.70

Average Rate 67.19 66.13 63.99

< 90 Days(USD Mn) 6.18 6.99 5.02

EUR

Average Rate 76.67 76.51 79.14

> 90 Days(EUR Mn) 5.56 2.91 2.64

Average Rate 77.58 79.07 83.61

< 90 Days(EUR Mn) 1.63 1.39 1.26

MTM on Forward Cover > 90 Days (INR Mn) (2.84) 21.53 31.25

MTM on Forward covers < 90 Days (INR Mn) 5.93 12.49 3.80

Total (INR Mn USD-INR)* 3.08 34.02 35.04

MTM on Forward Cover > 90 Days (INR Mn) (10.74) 5.45 22.04

MTM on Forward covers < 90 Days (INR Mn) 5.38 9.60 19.43

Total (INR Mn EUR-INR)* (5.35) 15.05 41.47

*Closing spot rate for calculating MTM USD-INR 65.73 63.73 62.38

*Closing spot rate for calculating MTM EUR-INR 74.00 71.34 67.39

41


43/51

Confidential

GENERAL INFORMATION

Q2 FY16

42

Conference Call Details


44/51

Confidential

• Q2 FY16 Results Conference Call is scheduled on Tuesday, November 3rd, 2016 at 10:30

hrs IST

•

Geometric will be represented by• Mr. Manu Parpia, MD & CEO

• Mr. Shashank Patkar, CFO

• Mr. Rajiv Salkar, Global Head Sales

• Dial-in details

Conference Call Details

Location Access Number

Primary Access Number + 91.22.39600622

Secondary Access Number + 91.22. 67465822

Non-India Toll Free Numbers

USA + 1.866.7462133

UK 0.808.1011573

Singapore 800.1012045

Hong Kong 800.964448

43

About Geometric


45/51

Confidential

About Geometric

Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global

Engineering services, Product Lifecycle Management (PLM) solutions, Embedded System solutions, and Digital

Technology solutions enables companies to formulate, implement, and execute global engineering andmanufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle.

Listed on the Bombay and National stock exchanges in India, the company recorded consolidated revenues of Rupees

11.05 billion (US Dollars 180.61 million) for the year ended March 2015. It employs over 4800 people across 13 global

delivery locations in the US, France, Germany, Romania, India, and China. Geometric has been assessed at Maturity

Level 3 for CMMI 1.3- Development and CMMI 1.3-Services for its Software and Engineering Services business units

and is ISO 9001:2008 certified for engineering operations. The company’s operations are also ISO 27001:2005certified.

The copyright/ trademarks of all products referenced herein are held by their respective companies.

For more information, please contact: [email protected]

About Geometric

44

mailto:[email protected]:[email protected]


46/51

Confidential

END OF PRESENTATION

45


47/51

Confidential

INTERPRETATION GUIDE FOR REPORTED DATA

46

Guide 1


48/51

Confidential

Guide 1

Slide # Item Explanation

10,33 Income Statement Income statement provided is in the MIS format.

MIS format is different from the income statement published as part of financial results in

terms of grouping of cost elements.Key differences to be noted are as follows:

1. MIS format breaks-up operating costs as COR, S&M and G&A

2. Depreciation line item in MIS format also includes the lease rentals for computing

hardware (CAPEX equivalent) and excludes software depreciation which is clubbed

under software expenses in COR

3. FX gain/(loss) is grouped under Other Income in MIS format as against operating cost

in financials.

For EBITDA calculation, amortization software has been added and lease rentals

have been reduced in depreciation

19,37 HCC & LCC HCC: Delivery from high cost country

LCC: Delivery from low cost country

13,34 Investment Income Investment income includes dividend from mutual funds, interest earned on bank deposits

and profit on sale of mutual fund investments.

17,18,36 Manpower Manpower costs in MIS exclude staff welfare, but include mediclaim and group insurance

cost and Subcontracting vis-à-vis personnel costs in financials

47

Guide 2


49/51

Confidential

Guide 2


17,18,36 Travel Reimbursement of travel expenses are grouped under travel expenses while the same has

been grouped under other expenses in financial result advertisement

18,36 Facility Facility costs include rent and service charges, electricity charges, repairs and maintenance

excluding that of EPABX and UPS

18,36 Facility Depreciation Includes depreciation on leasehold land, building, electrical installations, office equipments

and furniture and fixtures

18,36 Non-facility

Depreciation

Primarily consists of depreciation on computing hardware

18,36 Lease Rentals Includes lease rent paid for computing hardware

20,21,22,23,24,38,

39,40

Revenue Analysis Analysis reported is for USD operating revenue

48

Guide 3


50/51

Confidential

Guide 3


23 Customer Segments Software ISV segment consists of S/W product companies giving us OPD business. Strategic

Partner segment consists of S/W product and consulting companies engaging in PLMSolutions and Engineering Services business. Direct Industrial segment consists of industrial

companies sourcing all types of services from Geometric.

24 Customer Revenue

Analysis

Analysis reported is for USD operating revenue. Distribution is on the basis of annualized

figures (i.e. quarterly revenue x 4).

25 Order Book New deals won refers to new business wins with existing or new customers. This excludes

ramp-up in or extension of existing contracts.

29 Project Type Revenue

Analysis

Analysis reported is for USD operating revenue excluding Products and H/W reimbursement

revenue.

49

Guide 4


51/51

Guide 4


30 Employee Base Employee headcount reported includes all permanent employees and non-permanent

employees working on billed positions.

30 Experience Profile Distribution reported is for all employees including sales and corporate support functions

31 Attrition Only undesired attrition data is reported. Difference in the net addition reported on slide 34

and difference in headcount reported in slide 33 is on account of desired attrition.

% Attrition reported is on an annualized basis.

27 DSO DSO reported is on a quarterly basis

27 % Tax Includes impact of FBT and deferred tax

27 CAPEX Includes normal CAPEX and purchase value of leased computing hardware

27 Outstanding Loans All FX loans are revalued at the end of the quarter based on the closing exchange rate

revised - mailers to the analysts [company update]

Documents