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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.
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We are a digitally native technology services company, a pure play on emerging technologies. We dream and build digital journeys for millions of users. Globant is the place where design, engineering and innovation meet scale. Global delivery centers, including North America, Latin America and Asia, allowing next-gen software creation with the right talent and skills. Long-term and recurring relationships with blue-chip clients. Strong revenue growth and attractive profitability.
Globant’s Highlights
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● We contributed to the development of EA’s highly successful FIFA franchise.
● A Globant customer for more than 7 years.
Disney
● We helped Disney create their next generation online experience for their parks and resorts.
● A Globant customer for more than 5 years.
● We partnered with Google ATAP in its revolutionary Project ARA
● We are working on the development of a marketplace for Project ARA’s modules and hardware
● A Globant customer for more than 8 years.
Electronics Arts
Innovative Solutions by Globant
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These technology revolutions have unlocked new ways for companies to connect with customers
Emerging technologies create a HUGE opportunity
Big Data | Mobile | Cloud | Internet of things | UX | Wearables | Gamification | Cognitive Computing
The Revolution
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Companies engage with “technology voracious” users, customers, employees and partners
who have high expectations.
Users demand more personalized experiences.
They want to create an emotional tie with brands, which in turn increases loyalty.
Today’s Challenge
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NEEDS TO ADAPT NEEDS TO TRANSFORM ITS BUSINESS NEEDS TO CREATE NEW AND SMART JOURNEYS FOR USERS
The Opportunity
Every company in the world…
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Globant is a digitally native technology services company
We dream and build digital journeys that matter for millions of users, a pure play on emerging technologies. We are the place where innovation, design, and engineering meet scale. We deliver value leveraging global talent from development centers in North America, Latin America, and Asia.
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Engineering focused on emerging technologies, through our unique Studio Model
Our proprietary Agile Pods methodology
Innovation
Design & UX
We create software in a new way.
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Why Globant Captures this Opportunity?
Why Globant Captures this Opportunity?
Digital agencies are focused on creativity, but lack engineering expertise or the ability to scale.
Traditional IT services providers chiefly focus on optimizing corporate processes and productivity.
We provide the optimal blend of engineering, design and innovation capabilities that focus on emerging technologies and trends to meet our clients' business needs.
Traditional players lack the DNA to deliver this vision.
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Companies Pay Attention to These Challenges
Globant’s Addressable Target Market (within marketing budgets)
Fortune 500:
2014 Revenue
$12.5 Trillion
Marketing Budgets
10%: $1.25 Bn
Digital Budgets
25%: ~$300 Bn
Gartner CMO Spend Survey 2015
+5%
+25% Traditional IT
Services Growth
Emerging Technologies Growth
Y0 Y1 Y1 Y0
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Multiple time zones enable us to deliver agile services to our customers and global partners.
We benefit from Cultural similarities and a strong history of innovation. We have an unlimited talent pool of highly educated IT professionals.
Argentina
Colombia
Uruguay
Brazil
United States
Mexico
India
Chile
Peru
UK
Spain
Global Delivery Model
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Strong global presence, with great talent to create digital journeys.
Highlights Signed Google
Select Clients Employees
+4,700 August 2015
Revenue Growth ($M)
2013 2014
$129 $158
$200
2012
CAGR: 24,5%
History
2003 Founded
2006
2008 Riverwood Capital and FTV Capital invested
Studios launch 2009
2012 WPP Invested
Listed on NYSE 2014
2015 Follow on
Globant Today
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Alejandro Scannapieco CFO
PREVIOUS EXPERIENCE Senior Finance Analyst at JPMorgan, CFO at Microsoft South America
Management team
Board of Advisors
Martín Migoya CEO, CO-FOUNDER
PREVIOUS EXPERIENCE Project Coordinator at Repsol-YPF, Consultant at Origin BV Holland. Entrepreneur of the year by Ernst & Young (2013)
Guillermo Marsicoverete COO
PREVIOUS EXPERIENCE Sales VP of United Kingdom & Ireland of Sun Microsystems
Martín Umaran CHIEF OF STAFF, CO-FOUNDER
PREVIOUS EXPERIENCE Former Globant COO and Chief Corporate Business Officer
Guilbert Englebienne CTO, CO-FOUNDER
PREVIOUS EXPERIENCE Researcher at IBM, Head of Technology for CallNow Inc
Guillermo Willi CHIEF PEOPLE OFFICER
PREVIOUS EXPERIENCE Human Resources Director for Microsoft Argentina and Uruguay, Human Resources Director for Pampa Energía
Andrew McLaughlin CEO AT DIGG AND SVP AT BETAWORKS
PREVIOUS EXPERIENCE Deputy CTO of the United States and Director of Global Public Policy for Google
Reid Hoffman PARTNER AT GREYLOCK; EXECUTIVE CHAIRMAN AT LINKEDIN
OTHER EXPERIENCE Board Member of Airbnb, Edmodo, Mozilla, Shopñick, Swipedly and Zynga
Nick Beim PARTNER AT VENROCK
PREVIOUS EXPERIENCE General Partner at Matrix Partners and Associate at Goldman Sachs
Sal Giambanco HUMAN CAPITAL AND OPERATIONS AT OMIDYAR NETWORK
PREVIOUS EXPERIENCE Vice President of Human Resources and Administration for PayPal and eBay
Sir Martin Sorell CEO OF WPP
OTHER EXPERIENCE Non-executive Director of Formula One and Alcoa
Leading This Dream
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Our secret sauce
HOW WE DO IT
They are a combination of smart, relevant and appropriate
interactions that depend on a WHO, WHERE, WHEN, WHY & WHAT.
Digital journeys are not just
flashy mobile or web apps.
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Different UI Different media
Decentralized decisions Different data sources
Leading Company in M&E Industry
One success case: What they had
Staff Offline Stores Restaurants Hotels ERP
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big data
fast data
Leading Company in M&E Industry
Real time Suggestions
Valid references Recommendations
What we created
Digital Journey Platform
Staff Offline Stores Restaurants Hotels ERP
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Telcos Healthcare Banking Retail Travel
In Today’s World
Every Industry is Facing this shift
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How We Deliver This Vision
Ecosystem of 3 stages necessary to fulfill a Digital Evolution Lifecycle.
Stay Relevant
Explore & Discover
Build
1
2 3
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Our thought leaders help our customers stay relevant within their industries by creating and publishing researches, organizing SME gatherings, and participating in conferences. We have
the knowledge necessary to create digital journeys.
1 - Stay Relevant
Sentinel Report Books Whitepapers Researches
Webinars Conferences Customer Visits
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We analyze each business, industry, challenges, stakeholders, and goals in order to understand the lifecycle of products and services, and to define the exact digital journey that will matter to users.
2 - Explore & Discover
Digital Journey Playground
Innovation as a Service
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Once the Digital Journey is defined, we develop and build the experience by leveraging 3 key pillars:
3 - Build
12 Studios Agile Pods Methodology
Services Over Platforms Strategy
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Our Studios: Deep Pockets of Expertise
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PRODUCTIVITY =
Our Agile Pods
Multidisciplinary Teams
. 3 discrete levels of productivity
. Contracted and defined variables
. Incentives aligned to create true partnership
. Multiple pods at large clients
. Some of our largest clients have embraced the model
- Higher growth
- Lower attrition
Pod Metrics Agile Pods methodology
Globant rate
Customer Total Cost of Ownership
Productivity
$
Speed, Quality, Innovation, Autonomy
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Services over Platforms Strategy
Services over Platforms Strategy
Mobile Product Engine Smart Digital Journey Engine Employee Journey Platform
Digital Journey Delivery Platform
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Smart Digital Journey Engine
Store Mobile App Website Wearable Device Ecommerce
big data
fast data
Services over Platforms
Consumer experience Cognitive
computing
Creating a Digital Journey
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Financial Review
129.0
158.0
199.6
144.5
182.2
2012 2013 2014 9M'14 9M'15
Revenue ($M)
4.1 4.6
6.1 5.8
6.2
8.8
2012 2013 2014
Average Revenue by Client ($M)
TOP 20 TOP 10
32
41
46
2012 2013 2014
Clients with Revenues >$1M Client Revenue Contribution (%)
2012 2013 2014 9M’15
Top 1 Client 9 6 9 12
Top 5 Clients 28 25 28 33
Top 10 Clients 45 40 44 47
29 Globant Proprietary | Confidential Information
Significant Revenue Growth
Geography Currency
Industry Contract Type
84%
11%
5%
North America
Latam and Others
Europe
95%
1% 4%
USD
Others
GBP
24%
21%
15%
14%
13%
14%
M&E
T&T
Proff. Svcs
Travel
BFS&I
Others
95%
5%
T&M (includes Agile Pods)
Fixed Price
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Revenue Breakdown (9M’15)
Up to 5 Majority
1 2 3
Up to 3
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Typical Customer Engagement
Adjusted Net Income ($M) Adjusted Gross Profit ($M)
55
62
82
60
71
2012 2013 2014 9M'14 9M'15
Adj. Gross Profit margin % 42.6% 39.2% 41.0% 41.4% 38.8%
10
15
26
18
25
2012 2013 2014 9M'14 9M'15
Adj. Net Income margin % 8.1% 9.2% 13.0% 12.3% 13.9%
Adjusted Gross Profit Margin excludes depreciation and amortization and share-based compensation
Adjusted Net Income excludes share-based compensation and M&A Expenses
32 Globant Proprietary | Confidential Information
Attractive Profitability
5%
86%
9%
US
LatAm
India95%
5%
USD
Others
Yearly Revenue per IT Professional ($K)
Revenues in Hard Currencies with Costs in Local Currencies
SG&A (% of revenues, excluding D&A)
60 60
63 63
2012 2013 2014 LTM
29.3%
31.8%
26.2% 25.7%
2012 2013 2014 9M'15
Revenues 9M’15: $182M Headcount distribution - Sep’15
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Operating Levers
Dec’12 Dec’13 Dec’14 Sept’15
Cash and Investments 9 27 62 74
Current Assets 44 67 116 139
Total Assets 81 112 159 209
Financial Debt 12 12 1 1
Total Liabilities 38 52 35 53
Equity 43 60 125 156 Capex (% of revenues)
Current Ratio Balance Sheet Summary
5.7% 4.6%
6.9%
2012 2013 2014
1.3
1.8
3.7 3.3
Dec'12 Dec'13 Dec'14 Sept'15
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Strong Balance Sheet
• Top 20 accounts have dedicated client teams • Every client has an assigned client partner • More than 400 Globers have revenue and margin quotas • Studio cross-selling
• Highly professional sales team • Key sales offices (Boston, London, New York, San Francisco, Pune, Sao Paulo, Bogota, Mexico DF and Buenos Aires) • Thought leader recognition through Hackathons, Roadshows, Conferences and Referrals • Leverage WPP relationship
• Geography • Capabilities • Verticals • Customers
• Terraforum • Clarice • Nextive • Huddle • Accendra • Openware
35 Globant Proprietary | Confidential Information
Our Growth Strategy
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