EX-99.2 3 d766600dex992.htm EX-99.2 EX-99.2
July 31, 2014
Ticker (NYSE: G)
Genpact
Q2 2014 Earnings Presentation
Exhibit 99.2

2
PROCESS • ANALYTICS • TECHNOLOGY
Forward-Looking Statements
These
materials
contain
certain
statements
concerning
our
future
growth
prospects
and
forward-looking
statements,
as
defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are
based on Genpact’s current expectations and beliefs, as well as a number of assumptions concerning future events. These
statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from
those in such forward-looking statements. These risks and uncertainties include but are not limited to a slowdown in the
economies and sectors in which our clients operate, a slowdown in the BPO and IT Services sectors, the risks and
uncertainties
arising
from
our
past
and
future
acquisitions,
our
ability
to
manage
growth,
factors
which
may
impact
our
cost
advantage,
wage
increases,
our
ability
to
attract
and
retain
skilled
professionals,
risks
and
uncertainties
regarding
fluctuations in our earnings, general economic conditions affecting our industry as well as other risks detailed in our reports
filed with the U.S. Securities and Exchange Commission (the “SEC”), including the Company's Annual Report on Form 10-K.
These
filings
are
available
at
www.sec.gov
or
on
the
investor
relations
section
of
our
website,
www.genpact.com.
Genpact
may from time to time make additional written and oral forward-looking statements, including statements contained in our
filings with the SEC. The Company undertakes no obligation to update any forward-looking statements that may be made
from time to time by or on behalf of the Company.
These materials also include measures defined by the SEC as non-GAAP financial measures. Genpact believes that these
non-GAAP measures can provide useful supplemental information to investors regarding financial and business trends
relating to its financial condition and results of operations when read in conjunction with the company’s reported results.
Reconciliations of these non-GAAP measures from GAAP are available in this presentation and in our earnings release
dated July 31, 2014.
Non-GAAP Financial Measures

3
PROCESS • ANALYTICS • TECHNOLOGY
Q2 2014 –
Continued Growth & Disciplined Strategy Execution
Revenue growth, adjusted operating income and net income meet our
expectations
Made solid progress in our strategy execution journey
Key events and accomplishments:
Won two large transformational engagements in our chosen verticals
Made
solid
progress
in
ramping
up
our
Q1
win
in
CPG
vertical;
building
unique
CPG
core
operations capabilities
Continued to add depth to our client facing teams; well positioned to meet our objective of
investing at least 6% of our revenue in sales & marketing for the full year
Ed Fitzpatrick joins as the new CFO; added new leaders into the Healthcare and Analytics
businesses, bringing deep industry and leadership capabilities to our team
Completed announced acquisition; adds domain capabilities in life sciences regulatory
affairs space

4
PROCESS • ANALYTICS • TECHNOLOGY
Q2 2014 –
Key Financial Highlights
Growth and margins in line with our stated full year expectations
Q2 ‘14 versus Q2 ‘13 performance:
Total Revenue: 
+5%
Revenue from Global Clients:
+7%
GE Revenue:
-1%
Adjusted Income from Operations:
-2%
Q2 2014  Adjusted Income from Operations margin at 15.6%
Notes:
Growth led by four of our target verticals, namely CPG, Life Sciences, Insurance and Capital
Markets
Margins reflecting solid progress on planned strategic investments in client facing teams and
capabilities
1.
Adjusted Income from Operations is a Non-GAAP Measure. Q2 ‘14 GAAP income from operations decreased 6.3% and GAAP Operating Margin was 13.0%.
From a service line perspective, Finance and Accounting and consulting services led growth

5
PROCESS • ANALYTICS • TECHNOLOGY
Investments on Track
Driving good inflows of larger, complex deals
Focused investments in client-facing teams and domain experts are driving 
increased involvement in more strategic and transformative engagements
We
are
bolstering
our
transformative
capabilities
by
adding
consulting
services,
particularly in the Finance & Accounting and Risk Services spaces
Strong pipeline inflows, win rates improving
Decision cycles continue to be long on larger deals; longer conversion time to
revenues
Our investments are clearly resonating with our clients and in the
marketplace

6
PROCESS • ANALYTICS • TECHNOLOGY
Four Key Pillars of Our Growth Strategy
Concentrate
Investments
Concentrating our investments on specific market
leadership opportunities in select key industry verticals,
service lines and geographies to drive faster growth
Enhance Domain
Expertise
Expanding our team of subject-matter experts and lead
solutions architects who can bring extensive knowledge
and domain expertise to clients
Further
Differentiate
Solutions
Further differentiating our solutions by building capabilities
and combining core operations, IT and analytics
Deepen Client
Relationships
Strengthening client relationships by adding a new set of
senior client-facing leaders and expanding onshore
capabilities to enhance proximity to clients

7
PROCESS • ANALYTICS • TECHNOLOGY
Q2 Revenue Growth of 5% Driven by Global Clients
Q2 2014 Global Clients
Business Process Outsourcing revenues increased 8.7% and ITO revenues increased 1.6%
Q2 2014 GE
Growth in short cycle IT and consulting projects partially offsetting expected declines in other parts of the business
Notes:
Global
Clients
(1)
GE
(1)
BPO
ITO
5.0%
YoY
Growth%
6.8%
(1.2%)
5.0%
2.9%
5.7%
YoY
Growth%
$534.8
$561.6
Q2 ‘13
Q2 ‘14
Q2 ‘13
Q2 ‘14
($ in millions)
($ in millions)
$534.8
$561.6
121.3
413.5
441.8
119.8
133.0
401.8
424.8
136.8
1.
Data adjusted for dispositions by GE of businesses that Genpact continues to serve as Global Clients

8
PROCESS • ANALYTICS • TECHNOLOGY
Continue to Expand Client Relationships
Notes:
81
26
12
85
27
14
0
10
20
30
40
50
60
70
80
90
> $5 MM
> $15 MM
>$25 MM
Q2 13
Q2 14
Relationship Size
(1)
Relationship size = Clients representing annual revenues based on rolling four quarters
1.

9
PROCESS • ANALYTICS • TECHNOLOGY
Accelerated investments in Client facing teams and Capabilities
Q2 2014 Adjusted Income from Operations margin:
Impact of investments
Partially offset by higher operating efficiencies and favorable foreign exchange rates
Q2‘13
Q2‘14
YoY
Revenue
$534.8
$561.6
5.0%
Cost Of Revenue
332.7
340.1
2.2%
Gross Profit
202.1
221.5
9.6%
Gross Profit % of Revenue
37.8%
39.4%
160bps
Selling, general and administrative expenses
118.4
142.7
20.5%
SG&A % of Revenue
22.1%
25.4%
330bps
Adjusted Income From Operations
(1)
89.2
87.6
-1.8%
Adjusted Income From Operations Margin %
16.7%
15.6%
-110 bps
($ millions)
Notes:
1.
Adjusted Income from Operations is a Non-GAAP Measure. Income from Operations was $78.0 million in Q2 ‘13 and $73.1 million in Q2’14

10
PROCESS • ANALYTICS • TECHNOLOGY
EPS Year-over-Year Bridge
Q2 ‘13
Q2 ‘14
Adjusted Net Income ($ millions)
74.7
59.4
Diluted Shares Outstanding (millions)
(2)
235
222
27
-7
FX Re-
measurement
Loss
Q2 ‘13
GAAP
EPS
1
22
(Cents per share)
Net
Adjustments
(1)
32
27
5
Net
Adjustments
(1)
Q2 ‘13
Adjusted
EPS
Q2 ‘14
Adjusted
EPS
Q2 ‘14
GAAP
EPS
1
Share Count/
Buyback
-5
Others
Increase       Decrease
Notes:
-
The above bridge reflects only significant variance items year over year and is illustrative and subject to rounding.
-
EPS = Diluted earnings per share
      Adjustments primarily include  amortization of intangibles relating to acquisitions, acquisition related expenses and share-based compensation expenses.
      Weighted average number of diluted shares outstanding
1.
2.

11
PROCESS • ANALYTICS • TECHNOLOGY
Cash From Operations
Q2 2014 cash from operations up $3 MM 
Cash from operations grew 4% YoY, in line with revenue growth.
Q2 ‘13
Q2 ‘14
4%
Q2 ‘13
Q2 ‘14
Days Sales Outstanding
80
84
Cash
and
Liquid
Assets
($
millions)
(1)
536
377
Notes:
1) Cash and Liquid Assets = Cash and cash equivalents and short-term deposits
(14%)
YTD ‘13
YTD ‘14
YoY
Growth%
YoY
Growth%
($ in millions)
($ in millions)
76
79
108
93

12
PROCESS • ANALYTICS • TECHNOLOGY
FY 2014
Revenues ($B)
2.24 -
2.28
Adjusted Income from Operations -
Margin
15.0% -
15.5%
Other Metrics
Cash Flow From Operations
Decline ~15 -
20% YoY
Effective Tax Rate
24% -
26%
Capital Expenditure (% of revenue)
2.5% -
3.0%
Updated Full Year 2014 Outlook
(1) Adjusted for the Regulatory Affairs acquisition
(1)

13
PROCESS • ANALYTICS • TECHNOLOGY
Annexure 1: Reconciliation of Adjusted Income from
Operations
(USD, In Thousands)
Three months
ended June 30,
2013
2014
Income from operations per GAAP
$
77,988
$
73,051
Add: Amortization of acquired intangible assets resulting from
Formation Accounting and acquisitions
4,854
5,010
Add: Acquisition related expenses
-
1,977
Add: Stock-based compensation
10,093
6,906
Add: Other income (expense)
709
517
Less: Provision for loss on Divestitures
(2,945)
-
Add: Gain (Loss) on Equity-method investment activity, net
63
34
Less/Add: Net (income) loss attributable to noncontrolling interest
(1,586)
84
Adjusted income from operations
$
89,176 
$
87,579 

Annexure 2: Reconciliation of Adjusted Net Income
(USD, In Thousands, except per share data)
Three months
ended June 30,
2013
2014
Net income per GAAP
$
63,876
$
48,984 
Add: Amortization of acquired intangible assets resulting from
Formation Accounting and acquisitions
4,854
5,010
Add: Acquisition related expenses
-
1,977
Add: Stock-based compensation
10,093
6,906
Less: Tax impact on amortization of acquired intangibles resulting
from Formation Accounting and acquisitions
(1,552)
(1,631)
Less: Tax Impact on acquisition related expenses
-
(53)
Less: Tax Impact on stock-based compensation
(2,605)
(1,751)
Adjusted net income
$
74,666
$
59,442
Adjusted diluted earnings per share
$
0.32
$
0.27
14
PROCESS • ANALYTICS • TECHNOLOGY

Thank you
Thank You