igate presentation

7/29/2019 Igate presentation

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Proprietary and ConfidentialJuly 17, 2013 - 0 -

Investor Presentation

iGATE Corporation


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"Some of the statements on this site that are neither reported financial

results nor historical facts are forward-looking statements. Theseforward-looking statements include our financial and growthprojections as well as statements concerning our plans, strategies,intentions and beliefs concerning our business and the markets inwhich we operate. These statements are based on informationcurrently available to us, and we assume no obligation to update these

statements as circumstances change. There are risks anduncertainties that could cause actual events to differ materially fromthese forward-looking statements. These risks include, but are notlimited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, marketconditions that could cause our customers to reduce their spending forour services, our ability to create, acquire and build new businessesand to grow our existing businesses, our ability to attract and retainqualified personnel, currency fluctuations and market conditions inIndia and elsewhere around the world, and other risks not specificallymentioned herein but those that are common to industry.

Safe Harbor Statement


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Full spectrum Technology, Business Process Outsourcing and Consulting Services firmhelping customers achieve business outcomes

Incorporated in June 1987

Headquarters: Fremont, CA

28,000+ employees

Listed on the NASDAQ (IGTE) in 1996

Diversified customer base

315 clients globally including top Fortune 500blue chip clients

Two $100+ million customers, 21 $10+ millioncustomers, 41 $5+ million customers and 125$1m + clients

43 sales offices across the world

Global delivery centers:

Bangalore, Mumbai, Pune, Chennai,Hyderabad, Noida, Gandhinagar

Sterling (VA), Bloomington (IL), Cambridge(MA), EL Paso, Guadalajara

London, Australia, Japan, Singapore, China

Vertical contribution*

Geographical contribution*

NAM

82%

EMEA

12%

APAC

6%

Banking &

Financial Services

21%

Insurance,

Healthcare & Life

Sciences

33%

Manufacturing,

Retail, Distribution

& Logistics

35%

Communications,

Energy & Utilities

5%

Media,

Entertainment,

Leisure & Travel

4%

Public Sector

2%

iGATE - Corporate Overview

*- For Q2, 2013


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Tier1Firms

Tier2

Firms

20172011

1-10 -100

Tier 1.5 company with$1 Bn revenues

Deep expertise in selectindustries (such as BFS,Insurance, Mfg., M&E etc.)

Well diversified client base Prequalified for large

contracts (>$20MM) Execution excellence Solution centric approach

3-30-3-1

Well-established and proven

Tier-1 capabilities Focus on large end-to-endengagements

Established differentiationthrough business outcomesbased model

Leading player by capability in2 verticals and serious player in3-4 verticals

Preferred technology partner tomost Fortune 1000 companies

Move up the value chain (R&D) More efficient sales engine Larger ecosystem of

alliances/partnerships Highly respected brand offering

unique solutions in themarketplace

DiversifiedIndustry &Client base

Establishedcapabilitiesand well-differentiatedofferings

iGATE: Transformational Mission


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iGATE Proposition

Integrates technology and operations

Outcomes based pricing

Takes on the People, Process and TechnologyRisk and Investments

Provides the flexibility to ramp up / ramp down

Client Benefits

Pay for Results, IT spend clearly linked to businessoutcome

Client and iGATE work on the same incentives

Insulated from the technology risk

Fixed costs are variable-ized

Organizations moving towards integrating technology and back-office operations and creating Executive positionsresponsible for technology and operations outsourcing

Acknowledgement of iTOPS-type variable pricing model by large vendors and industry analysts

Emergence of pay-as-you-use models like cloud computing, SaaS, iTOPS

Recession has shown the value of pay-as-you-use models to customers

iGATEs Outcomes Driven Model


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Maturity

Shared, ManagedServices

Business Tech. Mgmt.

Monetisation of

Assets/Platforms

SaaS

Cloud, Mobility Social

Agile Methodology

Verticalised CoEs

Pay-per-use, Risk andReward Models

Verticalisation

Innovation

Transformation

Shared, ManagedServices

SLA-Driven

Agile Methodology

Cloud, PlatformSolutions

Test Labs, CoEs

Pay-per-use

Differentiation

Asset-Lite

Shared, Services

Resources Sharing

Test Labs

Emergence of ManagedServices

Process Excellence

Asset-Heavy

Dedicated/ CaptiveModel

Time and Material

Staff Augmentation

Labour Arbitrage

Shift to ManagedServices Model

Shift to Pay per use

Model

Value

Business Outcome pricing is rare today but is increasingly the model of choice. In Forresters Enterprise IT Services Survey, approximately 25% of firmsstated moving to output-based pricing models as a critical or high priority

Forrrester in Business Outcomes based pricing models drive results in Packaged application Implementations- April 2010

Industry Moving Towards Business Outcomes


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iTOPS is an integrated business model that combines process outsourcing with underlying technology

iTOPSOverview iTOPS Value Proposition iTOPS Competitive Advantages

Better alignment of business

processes to IT services and

infrastructure

Focus on ROI of IT investmentsand business process

improvement

Results-based payments

Shift from fixed costs to

variable costs

Flexibility to ramp up or

downsize resources

Single point strategic

consulting and integrated

decision support

Difficult to replicate

Requires deep industry

expertise in both IT and BPO

Requires end-to-end

established processes

Requires aligned organization

Most competitors lack one side

of offering

Many competitors operate IT

and BPO in separate silos

Innovative enables

differentiated pricing models and

deeper client relationships

BPO delivery methods differbased on technology used

Traditional BPO providers offerlittle to no technology

Large outsourcing providers mayoffer both IT and BPO, but asseparate services

iGATE differentiates itself withfully-integratedtechnology andBPOsolutions (iTOPS)

OutsourcedTechnology

ClientTechnology

Tradi t ional BPO iTOPS

Differentiated Business Model (iTOPS)



Life and Annuities

Property andCasualty

Healthcare

Re-Insurance

Life Sciences

WholesaleBanking

Mortgage Banking

Retail Banking

Capital Markets

Automotive

Hi-Tech andElectronic

Consumer Goods

Paper and Pulp

Aerospace and

Defense

Retail

Logistics andTransportation

Telecommunications wire,wireless, cable,broadband

Enterprise Mobility

OSS/BSS

Smart Metering

Energy Analytics

AssetManagement GIS

IndustrialAutomation &Control

Medical Devicesand HealthcareTechnologies

ConsumerElectronics,

Multimedia &Gaming

AutomotiveElectronics

Storage, Networks& Computing

ISVs

Program Planningand Production

Media Asset andContentManagement

ContentDistribution

Gaming, ThemeParks andHospitality

Publishing

Insuranceand Healthcare

Banking andFinancial Services

Manufacturing,Retail, Distribution

and Logistics

Communications,Hi-tech and

Utilities

MediaEntertainment,

Leisure and Travel

ProductEngineering

Translating our understanding of clients value chains into business solutions

Deep Domain Expertise Across Verticals



Satish Joshi EVP & Head of Product Engineering Services

Joined Patni in 1983 and is responsible for rendering specializedenterprise-wide technology services

Prior to Patni, he worked with the Tata Institute of FundamentalResearch

Sean NarayananEVP & Chief Delivery Officer

Joined iGATE in 2006 as Senior Vice-President; promoted to

Chief Delivery Officer in 2008

Prior to joining, he served as VP and Global Practice Head of

IT Infrastructure Services at Cognizant

Sujit Sircar EVP & Chief Financial Officer

Joined iGATE in 1998 and has served numerous roles at

iGATE; he was promoted to Chief Financial Officer in 2008

Prior financial management roles at Wipro

Gerhard WatzingerPresident and Interim Chief Executive Officer

Vijay Khare EVP & Co-Head of Consulting & Solutions

Joined Patni in 1980 and has held various leadership positions

Responsible for defining and boosting Patnis micro-verticals strategy,structure, systems and skills

Dr. Srinivas KandulaEVP & Head of Human Resources

Joined iGATE in 2007 as Global Head Human Resources

Prior to joining, he held senior human resource positions at

Sasken Communication Technologies and Power Grid

Derek Kemp EVP & Head of Sales, EMEA, Asia & Australia

Joined Patni in 1981 and responsible for business across allIndustry verticals in EMEA

Prior to joining, he worked with LogicaCMG, Charteris, andPolestar Applied Solutions

David KruznerEVP & Co-Head of Consulting & Solutions

Joined iGATE in 2010 as Senior Vice-President of iTOPSand Consulting Solutions

More than 22 years of consulting executive management

experience and business transformation efforts.

Served at iGATE from 1998 to 2003 including as CEO of the iGATE Solutionsbusiness and drove the transition from a US centric operation to aninternational organization and increased the companys market value by over

150%

Worked with Intel/ McAfee, as EVP and Chief Strategy Officer

Previously, served as CEO of both SafeBoot and APT International,Partner and Managing Director at PWC and MD at CapGemini

Sanjay TugnaitEVP & Head of Sales, NA and Global Head ofAlliances

Joined iGATE in 2012

Managing Partner of Accenture's Financial Services (FS)practice in India and prior to his India tenure was a Partner in

Accenture's North America practice.

Proven Management Team



Outsourcing Excellence Award: Royal Bank of Canada

IT Supplier of the Year, 2010: Weyerhaeuser

Strategic Supplier of the Year: Genworth Financial

Best Supplier for FY 2009-10: Toshiba Mitsubishi

Ranked as Leader amongst top outsourcing service

providers and advisors; also among Best 20 in banking,markets & insurance: IAOPs Global Outsourcing-100,2012

Consistently ranked in Leadership Zone as Global R&DService Provider: Zinnov Management Consulting, 2011 &2012

'Major Contender' in the F&A Peak Matrix: Everest FAOResearch Report 2011

Lead ranking in Financial Services: Fintech-100, 2010

BPO & IMS operations assessed at Level 3

against CMMI for Services Model v1.3

Assessed at Level 5 in SEIs PCMM(People Capability Maturity Model)

Second company globally to be listed in PARS asassessed at Level 5 of CMMI-Dev V1.3

Case in Point Platinum Award: Overall Case

Management Excellence in Healthcare, 2011

BPO Excellence Awards: Operational Excellence and

Quality, and Social Change Agent, 2010

iGATE Legal Team Wins LegalEra In-House Team of the Year -Mergers & Acquisitions Award, 2012-13

Ranked No. 2 in the Greater Toronto Areas Small and Medium Best

Employers survey, 2012 Ranked No. 1 in Dataquest-CMR Best Employers Survey 2012;

retains position in Top Three for sixth time in a row

Wins Golden Peacock Innovation Management Award, 2012

iGATE Corporation Annual Report 2011 wins Silver in theprestigious LACP Awards

Asia Pacific Quality Organizations world class winner of the GlobalPerformance Excellence Award, under the Large Service category

Receives M&A Atlas Award 2012, in the Asia-Pacific Deal of theYear category for its successful acquisition of Patni ComputerSystems Limited

Engagement

Excellence

Industry

Leadership

OrganizationalExcellence

ServiceDelivery

Industry Accolades and Recognition



Steady financial growth with Gross Margins at ~40% and non GAAP EBITDA Margins (1) at ~25%

((1) These are Non GAAP figures and should not be solely for investment decisions. GAAP financials are provided on the company website at www.igate.com

Non GAAP EPS (1)

In $m

$266 $268 $263 $268 $271 $272 $275 $283

37%40% 40%

37%40% 41% 38% 38%

21%25% 26% 24% 25%

26%24% 23%

0%

10%

20%

30%

40%

50%

$250

$255

$260

$265

$270

$275

$280

$285

Q3' 11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13

Revenue Gross Margins EBITDA Margin (Non GAAP)

$0.26 $0.27 $0.38 $0.28 $0.46 $0.45 $0.51 $0.44

Q3' 11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13

Consolidated Financial Overview

Project Type

55% 56% 58% 57% 58% 60% 62% 62%

45% 44% 42% 43% 42% 40% 38% 38%

Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13

Fixed Price T&M



Customer Distribution

Active Clients profile

37% 36% 37% 37% 38% 39% 39% 40%

11% 10% 10% 10% 11% 10% 11% 10%

52% 54% 53% 53% 52% 51% 50% 50%

Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13

Top 5 Clients Client 6- 10 Others

344 338

301 304 293 304 312 315

118 122 123 123 118 120 124 125

Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3' 12 Q4 '12 Q1 '13 Q2 '13

Number of clients No. of million $ clients

Diversified Revenue and Client Base



8%

24%21%

8%

30%

0%

5%

10%

15%

20%

25%

30%

35%

-

0.50

1.00

1.50

2.00

2.50

3.00

Infosys Cognizant Syntel Genpact iGATE

2008 2009 2010 2011 2012 EPS CAGR

FullydilutedEPS($)

EPSCAGR(%)

*- List of US listed

Indian IT Companies

One of the highest EPS CAGR amongst peer IT Companies*

17.11

14.85

18.09

15.78

17.4318.5

11.04

16.13

19.16

24.83

16.88

12.58

9.167.42

3.54

0

5

10

15

20

25

30

Jan-09 Jul-09 Feb-10 Aug-10 Mar-11 Sep-11 Apr-12 Nov-12 May-13

Share price Firm Name Analyst

Janney Montgomery Scott Joseph Foresi

Jefferies Jason Kupferberg

Needham & Co. Mayank TandonNoble Financial Capital Markets Vincent Colicchio

Nomura Financial Advisory & Securities Ashwin Mehta

Oppenheimer Securities Glenn Greene

RBC Capital Markets Daniel Perlin

ROTH Capital Partners Jeff Martin

Sidoti & Company Brian Kinstlinger

Wells Fargo Securities Edward Caso

Investor Snapshot



Long-termrelationships

with Fortune 500

customers

Deep industry

expertise acrossverticals

UniqueBusinessOutcomesstrategy

Strongmargins

One of thehighest EPS

growth amongst

peers

Large player withsignificant scale

Summary of Key Investment Highlights


15/15Proprietary and ConfidentialJuly 17 2013 - 14 -

THANK YOU!

www.igate.com

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