Q4 and FY12 Results. People Building Partnerships. 23 April 2012

Transcription

1 People Building Partnerships Q4 and FY12 Results 23 April 2012 Recipient of Frost & Sullivan 2011 Global Enabling Technology Award for Computer-aided Design

2 Global scenario presents Opportunities for Growth Macro-economic pressures and advancements in technology making outsourcing of Engineering IT and Engineering Services necessary and simpler. Last quarter, we saw opportunities: With Existing Customers Deeper penetration with an off-highway major through services in new geographies Cross selling PLM Services to an existing engineering services customer in the aerospace domain Increased traction with a European Aerospace customer In New Areas Growth from emerging verticals like Ship Building, Oil & Gas and Energy Expanded delivery capabilities in France by setting up a delivery center in Toulouse Through New Products and Offerings Glovius : Product has been very well received; customizations in process for a leading Auto OEM Investments in cloud-based offerings People Building Partnerships Geometric Limited 2

3 Engine For Growth Restructured the organization to make it more agile for engineering growth: Sales and Delivery Organizations mirror each other, giving us the Power of Two Focus on providing value-add to customers with a consulting practice Consolidation of all support groups to build a strong backbone for delivery and sales Fostering an environment of collaboration, technical advancements, and creation of offerings with an IP component to meet customer needs Clearer career and growth paths for employees with separate technical and managerial tracks MD & CEO CEO, 3DPLM Head Consulting & Innovation Global Head Business Development Head Global Operations Chief Transformation Officer Global Head HR Group CFO Productivity Services Group Consulting Technology Solutions Emerging Business New Offerings Global Sales Business Response Marketing Sales Operations Global Delivery Global Practices COE Long Term Vision & Transformation Employee Engagement Compensation & Benefits HR Operations, Policies & Processes Finance & Accounting Treasury MIS Legal Secretarial Purchase Admin Internal IT Travel People Building Partnerships Geometric Limited 3

4 Mirror Organizations: Sale & Delivery Automotive Head Industrial Head Emerging Head Head Global Operations Global Practices Head PM COE Quality COE Automotive Sales Head Global Head Business Development Industrial Sales Head Emerging Sales Head Sales Operations Marketing & Business Response Mirror Organizations to leverage the Power of Two Cohesive working and shared goals Sales and Delivery to have common incentive scheme, viz: based on both revenues and contribution margins Resulting in: Faster response time to customers Improvement in revenues from existing customers and faster onboarding of new customers Reduction in resource augmentation deals, and increasing conversion of these deals to project/ solution based projects Impetus to offshore delivery People Building Partnerships Geometric Limited 4

5 FINANCIALS People Building Partnerships Geometric Limited

6 Summary (Q4 FY12) 50 Revenue USD INR 2, QoQ 2.7% Revenues INR 5.17% 10 quarter CQGR INR Net Income 10 5 INR Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Revenue USD Linear (Revenue USD ) *figures in millions EBITDA INR 2.04 EPS People Building Partnerships Geometric Limited

7 Summary (FY12) Revenue USD FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Revenue USD Linear (Revenue USD ) *figures in millions INR 8, Y-o-Y 30.2% Revenues INR 24.32% 10 Year CAGR CAGR INR Y-o-Y 2.7% Net Income INR 1, Y-o-Y 39.8% EBITDA INR 9.45 EPS People Building Partnerships Geometric Limited

8 Summary In USD terms, consolidated operating revenues for the quarter increased by 5.4% sequentially and 18.7% yoy, whereas it increased by 2.7% and 32.3% respectively in INR terms In USD terms, consolidated operating revenues for FY 12 increased by 22.7% compared to FY 11 revenues In USD terms, consolidated (excluding 3D PLM) operating revenues for the quarter increased by 8.1% sequentially and 12.6% yoy, whereas it increased by 5.6% and 25.9% respectively in INR terms EBITDA margin for the quarter is 12.4% against 18.6% in Q3 12 mainly due to Consultant fee (INR mn) and provision for doubtful debts on account of reconciliation of debtors (INR 82 Mn) Effective tax rate for the quarter is 10.2% as against 2098% in Q3 12 due to deferred tax credit of INR 31 mn in Q3 12 PAT before tax on sale of asset and prior period items is INR mn in Q4 12 compared to INR mn in Q3 12 and INR mn in Q4 11 EPS for the quarter is 2.04 as against 3.40 in Q3 12 and 2.87 in Q4 11 Adjusted EPS for the quarter is 2.80 as against 2.95 in Q3 12 and 2.80 in Q4 11 EPS adjusted for foreign exchange gain/(loss) on subsidiary revaluation and consultant fee EPS for FY 12 is 9.45 as against 9.24 in FY 11, Adjusted EPS for FY 12 is INR 9.59 as against 8.72 in FY 11 New contracts amounting to USD Mn awarded during the quarter Total headcount is up from 4447 in Q3 12 to 4567 in Q4 12 The Board of Directors recommended a dividend of 80% on face value of Rs. 2 per share People Building Partnerships Geometric Limited 8

9 Income Statement: Consolidated (figures in INR millions) Income Statement Q4 12 Q3 12 Q4 11 Var (QoQ) Var (YoY) Operating Revenue (in USD millions) % 18.7% Exchange Rate % 11.5% Operating Revenue % 32.3% Cost Of Revenue (COR) % 27.9% Contribution % 40.7% Contribution as % of Operating Revenue 36.2% 36.7% 34.1% Sales & Marketing (S&M) Expense % 5.7% General & Administrative (G&A) Expense % 66.9% Interest and bank charges % 248.0% Depreciation and Lease Rental % 6.6% Operating Profit % 30.1% Operating Profit as % of Operating Revenue 8.9% 14.2% 9.0% Other Income (2.97) % % Profit Before Tax % -11.1% PBT as % of Operating Revenue 8.7% 14.8% 13.0% EBITDA % -1.4% EBITDA as % of Operating Revenue 12.4% 18.6% 16.6% Tax % 58.2% Minority Interest % 66.4% Profit After Tax (for the period) % -28.6% PAT as % of Operating Revenue 5.7% 9.7% 10.5% Tax on sale of asset Prior Period Adjustments (0.07) (0.17) (0.53) Adjusted Profit After Tax % -28.4% PAT as % of Operating Revenue 5.7% 9.7% 10.5% EPS Non-recurring items Add:Tax on sale of asset Less:Fx gain/(loss) on subsidiary asset revaluation (20.00) Add:Consultant Fee Less:DTA credit/(expense) EPS (adjusted for non-recurring items) People Building Partnerships Geometric Limited 9

10 Income Statement: Consolidated excluding 3D PLM Income Statement Q4 12 Q3 12 Q4 11 Var (QoQ) Var (YoY) Operating Revenue (in USD millions) % 12.6% Exchange Rate % 11.9% Operating Revenue % 25.9% Cost Of Revenue (COR) % 24.4% Contribution % 29.2% Contribution as % of Operating Revenue 32.9% 31.2% 32.1% Sales, General & Administrative (SG&A) Expense % 52.3% Interest and bank charges % 187.7% Depreciation and Lease Rental % -4.9% Operating Profit % -42.5% Operating Profit as % of Operating Revenue 2.9% 7.0% 6.4% Other Income (5.67) % % Profit Before Tax % -65.5% PBT as % of Operating Revenue 2.6% 11.7% 9.4% EBITDA % -44.5% EBITDA as % of Operating Revenue 5.1% 14.2% 11.6% Tax (17.79) % % Minority Interest Profit After Tax (for the period) % -45.2% PAT as % of Operating Revenue 3.7% 10.1% 8.4% Prior Period Adjustment (0.07) (0.17) (0.53) Adjusted Profit After Tax % -45.0% PAT as % of Operating Revenue 3.6% 10.1% 8.3% (figures in INR millions) EPS Non-recurring items Less:Income on sale of assets (Net of tax) Less:Fx gain/(loss) on subsidiary asset revaluation (20.00) Add:Consultant Fee Less:DTA credit/(expense) EPS (adjusted for non-recurring items) People Building Partnerships Geometric Limited 10

11 Income Statement : Consolidated (figures in INR millions) Income Statement FY 12 FY 11 Var Operating Revenue (in USD millions) % Exchange Rate % Operating Revenue 8, , % Cost Of Revenue (COR) 5, , % Contribution 2, , % Contribution as % of Operating Revenue 34.4% 33.9% Sales & Marketing (S&M) Expense % General & Administrative (G&A) Expense 1, , % Interest % Depreciation and Lease Rental % Operating Profit % Operating Profit as % of Operating Revenue 10.0% 7.8% Other Income % Profit Before Tax 1, % PBT as % of Operating Revenue 12.6% 11.3% EBITDA 1, % EBITDA as % of Operating Revenue 16.3% 15.2% Tax % Minority Interest % Profit After Tax (for the period) % PAT as % of Operating Revenue 8.2% 9.3% Tax on sale of asset (66.00) 0.00 Prior Period Adjustments (3.82) (0.53) Adjusted Profit After Tax % PAT as % of Operating Revenue 7.3% 9.3% EPS Non-recurring items Add:Tax on sale of asset Less:Fx gain/(loss) on subsidiary asset revaluation Add:Consultant Fee Less:DTA credit EPS (adjusted for non-recurring items) % People Building Partnerships Geometric Limited 11

12 Income Statement : Consolidated excluding 3D PLM (figures in INR millions) Income Statement FY 12 FY 11 Var Operating Revenue (in USD millions) % Exchange Rate % Operating Revenue % Cost Of Revenue (COR) % Contribution % Contribution as % of Operating Revenue 30.5% 31.2% Sales, General & Administrative (SG&A) Expense % Interest % Depreciation and Lease Rental % Operating Profit % Operating Profit as % of Operating Revenue 4.5% 4.1% Other Income % Profit Before Tax % PBT as % of Operating Revenue 8.2% 6.5% EBITDA % EBITDA as % of Operating Revenue 10.6% 8.5% Tax % Minority Interest Profit After Tax (for the period) % PAT as % of Operating Revenue 7.4% 6.1% Income on Sale of assets (Net of tax) Prior Period Adjustment (3.82) % Adjusted Profit After Tax % PAT as % of Operating Revenue 10.3% 6.1% EPS Non-recurring items Less:Income on sale of assets (Net of tax) Less:Fx gain/(loss) on subsidiary asset revaluation % Add:Consultant Fee Less:DTA credit EPS (adjusted for non-recurring items) % People Building Partnerships Geometric Limited 12

13 Profit Trends EBITDA as % of Revenue EPS 25% % % 10% % % 0.00 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 PAT as % of Revenue Tax as % of Profit Return on Net Worth 30% 25% 20% 15% 10% 5% 0% -5% -10% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 People Building Partnerships Geometric Limited

14 Consolidated Revenue Analysis (figures in INR millions) Operating Revenues 38.41% Q4 FY % 46.13% 38.14% Q3 FY % 50.13% 10.11% 6.55% Offshore Offsite Onsite Products Other Income Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Investment Income % % % Sale of Assets % % % FX Gain/(Loss) (30.19) -1.3% % % Others % % % Total (2.97) -0.1% % % Onsite includes revenues in near shore centers in high cost countries People Building Partnerships Geometric Limited 14

15 Offshore Leverage By Revenue Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY By Effort Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Offshore Onsite People Building Partnerships Geometric Limited

16 Consolidated Revenue Analysis (excluding 3DPLM) (figures in INR millions) Operating Revenues Q4 FY % Q3 FY % 27.27% 31.47% 51.83% 13.66% 52.28% 9.06% Offshore Offsite Onsite Products Other Income Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Investment Income % % % Sale of Assets % (2.30) -0.1% % FX Gain/(Loss) (27.39) -1.6% % % Others % (0.15) 0.0% % Total (5.67) -0.3% % % Onsite includes revenues in near shore centers in high cost countries People Building Partnerships Geometric Limited 16

17 Offshore Leverage (Excluding 3DPLM) By Revenue Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 By Effort Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Offshore Onsite People Building Partnerships Geometric Limited

18 Consolidated Cost Analysis (figures in INR millions) Cost Of Revenue Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Manpower 1, % 1, % 1, % Travel % % % Software amortization % % % Other Software % % % Staff Welfare % % % Data Communication % % % Total 1, % 1, % 1, % S&M Expense Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Manpower % % % Travel % % % Other Business Expenses % % % Total % % % People Building Partnerships Geometric Limited 18

19 Consolidated Cost Analysis contd. (figures in INR millions) G&A Expense Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Manpower % % % Travel % % % Facility % % % Recruitment % % % Training % % % Communication & Information System % % % Insurance % % % Legal & Professional % % % Bad Debts % % (9.43) -1% Others % % % Total % % % Depreciation & Lease Rentals Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Facility Depreciation % % % Non-facility Depreciation % % % Lease Rentals % % % Total % % % People Building Partnerships Geometric Limited 19

20 Cost Analysis : Consolidated excluding 3D PLM (figures in INR millions) Cost Of Revenue Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Manpower % % % Travel % % % Software amortization % % % Other Software % % % Staff Welfare % % % Data Communication % % % Total 1, % 1, % % G&A Expense Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Manpower % % % Travel % % % Facility % % % Recruitment % % % Training % % % Communication & Information System % % % Insurance % % % Legal & Professional % % % Bad Debts % % (9.43) -1% Others % % % Total % % % Depreciation & Lease Rentals Q4 12 % of OPR Q3 12 % of OPR Q4 11 % of OPR Facility Depreciation % % % Non-facility Depreciation % % % Lease Rentals % % % Total % % % People Building Partnerships Geometric Limited 20

21 REVENUE & CLIENT DATA Q4 FY12 People Building Partnerships Geometric Limited 21

22 Service Lines Revenues Across Service Lines Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Software Services Engineering Services Products People Building Partnerships Geometric Limited 22

23 Service Lines Percentage of Revenue Contribution 70% 60% 65.30% 61.80% 59.90% 57.10% 56.30% 54.90% 54.10% 57.40% 55.40% 54.00% 50% 40% 30% 27.90% 30% 33.80% 36.80% 36.90% 38.90% 40.40% 37.60% 39.40% 40.60% 20% 10% 6.80% 8.10% 6.30% 7% 6.80% 6.20% 5.50% 5% 5.20% 5.40% 0% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Software Services Engineering Services Products People Building Partnerships Geometric Limited 23

24 Regions 80% 70% 63.30% 63.60% 66.60% 66.40% 67.50% 67.40% 68.90% 71.60% 72.00% 72.20% 60% 50% 40% 30% 26% 25.60% 20% 22.60% 21.90% 21.20% 21.20% 20.80% 18.90% 17.10% 17.20% 10% 6.80% 7.30% 6.10% 6.10% 5.50% 6.10% 6.10% 5.90% 6.40% 5.90% 0% 3.90% 3.50% 4.60% 5.50% 5.70% 5.30% 4.20% 3.70% 4.40% 4.70% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 USA Europe APAC India * previous period figures reinstated wherever classication changes to make it comparable People Building Partnerships Geometric Limited 24

25 Customer Segments 70% 60% 53.70% 55.00% 59.50% 60.50% 61.90% 62.30% 62.50% 59.30% 59.50% 61.60% 50% 40% 37.90% 37.80% 34.60% 31.10% 30.40% 29.70% 31.10% 34% 33.50% 31.60% 30% 20% 10% 8.40% 7.20% 5.90% 8.40% 7.70% 8% 6.40% 6.70% 7% 6.80% 0% Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Direct Industrial Strategic Partners Software ISVs People Building Partnerships Geometric Limited 25

26 Verticals Q4 12 Q % 2.90% 4.20% 2.90% 15.50% 43.70% 15.10% 39.80% 33.90% 38.10% Industrial Automotive USA Europe APAC Vertical (%) Q4 12 Q3 12 Q4 11 Industrial 43.7% 39.8% 36.8% Automotive 33.9% 38.1% 38.8% USA 15.5% 15.1% 15.6% Europe 4.1% 4.2% 4.3% APAC 2.9% 2.9% 4.5% Vertical break-up excludes product and 3D PLM revenue People Building Partnerships Geometric Limited 26

27 Customer Analysis Revenue (%) Q4 12 Q3 12 Q4 11 Top 1 28% 30% 24% Top 5 58% 55% 54% Top 10 70% 70% 70% Number of customers with more than 5% revenue contribution Clients Q4 12 Q3 12 Q4 11 > $ 10 million $5 - $10 million $1 - $5 million < $1 million Clients Q4 12 Q3 12 Q4 11 Total number of active clients Number of new clients added New Clients Q4 12 US Europe APAC Total Industrial Automotive 2 2 Other emerging verticals 0 Total People Building Partnerships Geometric Limited 27

28 Deal Analysis Order Book (USD million) Q4 12 Q3 12 Q4 11 New deals won New Deal Analysis Q4 12 (USD million) US Europe APAC India Total Engineering Services Software Services Products Total People Building Partnerships Geometric Limited 28

29 Business Highlights Business Highlights Launch of our new customizable, multi-platform 3D visualization tool, Glovius, which runs on Windows and is available as an app for ipad /iphone and Android systems Establishment of our twelfth delivery center in Toulouse, France Strategic partnership with PROSTEP AG, a leading solution provider for PLM integration, product data exchange and migration, to provide first line of technical support to PROSTEP s customers using the company s OpenDXM suite of products in the APAC region Customer wins A multi-million dollar deal to develop a next generation design and analysis application for a ship classification services company in North America Added a leading Asian automotive OEM to our customer list through plant digitization and ENOVIA upgrade solutions Plant simulation project for a global energy company in APAC Won a project for handling engineering data from the enterprise Teamcenter PLM system with a leading European auto maker Should costing engagement for a leading off-highway company in India An application support engagement with world s leading earthmoving equipment company for managing their process planning applications An off-shore finite element analysis (FEA) engagement for a global mining equipment manufacturer Application management and support for a European auto OEM for their PLM landscape KBE and automation project with a Aerospace Tier 1 supplier in North America CAD enhancement project for a European fashion house Reinforced our Windchill footprint through a Windchill implementation and PLM migration program for a leading aerospace Tier 1 supplier People Building Partnerships Geometric Limited 29

30 OPERATIONS & HR DATA Q4 FY12 People Building Partnerships Geometric Limited 30

31 Operational Parameters GL Consolidated Project Type (%) Revenue (%) Q4 12 Q3 12 Q4 11 Time & Material 80.2% 81.3% 79.6% Fixed Price 19.8% 18.7% 20.4% Utilization (%) Q4 12 Q3 12 Q4 11 Including Trainees 89.3% 88.0% 86.0% Excluding Trainees 90.3% 90.9% 86.9% GL Consolidated excluding 3D PLM Project Type (%) Revenue (%) Q4 12 Q3 12 Q4 11 Time & Material 72.8% 74.6% 76.3% Fixed Price 27.2% 25.4% 23.7% Utilization (%) Q4 12 Q3 12 Q4 11 Including Trainees 84.9% 83.2% 80.7% Excluding Trainees 86.5% 87.6% 82.9% People Building Partnerships Geometric Limited 31

32 Employee Base ,969 4,271 4,447 4, , , ,105 2,366 2,505 2,710 2,702 2,797 2,921 3, Q3 10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Other subsidiaries Headcount Q4 12 Q3 12 Q4 11 Parent + Completely owned subsidiaries Experience Profile Billed % Unbilled + Trainee Operations Support % 41.6% < 3 years Sales years Corporate Functions % 6-8 years Total > 8 years All numbers as of end of period People Building Partnerships Geometric Limited 32

33 Recruitment and Attrition Analysis Q2 10 Q3 10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Recruitment Attrition Recruitment Profile Attrition (%) Q4 12 Q3 12 Q4 11 FY12 Software Services 15.1% 12.8% 14.4% 15.8% Engineering Services 12.4% 18.3% 15.1% 17.0% Products 0.0% 4.8% 4.7% 4.3% Overall 15.7% 16.5% 14.2% 16.7% 32.4% 6.9% 2.9% 57.8% 0-3 years 3-6 years 6-8 years 8+ years All numbers as of end of period People Building Partnerships Geometric Limited 33

34 INDIAN GAAP BALANCE SHEET & KEY FINANCIAL PARAMETERS Q4 FY12 People Building Partnerships Geometric Limited 34

35 Balance Sheet Summary (figures in INR millions) Sources of Funds Q4 12 Q3 12 Q4 11 Shareholder s Funds Share Capital Share Application Money Reserves & Surplus Non-Current Liabilities Current Liabilities Minority Interest Total Applications of Funds Q4 12 Q3 12 Q4 11 Non-Current Assets Fixed Assets Other Non-Current Assets Current Assets Current Investments Trade Receivables Cash and Cash Equivalents Other Current Assets Total Balance sheet position as on period end People Building Partnerships Geometric Limited 35

36 Key Financial Data Parameter Q4 12 Q3 12 Q4 11 CAPEX (INR million) DSO % Tax 11.6% 20.9% 5.7% Outstanding Loans Q4 12 Q3 12 Q4 11 Term Loan (USD million) Working Capital Loan (USD million) PCFC Loan (USD million) Forward Contracts (Data for USD/INR only) Q4 12 Q3 12 Q4 11 Cash Flow Hedges (USD million) Other Contracts (USD million) Total (USD million) Average Rate > 12 M maturity (USD million) MTM on Cash Flow Hedges (INR million) (705.24) (1,087.71) MTM on Other Contracts (INR million) (36.19) (73.38) 0.00 Total (INR million) (741.44) (1,161.09) Loans & Hedging position as on period end People Building Partnerships Geometric Limited 36

37 GENERAL INFORMATION Q4 FY12 People Building Partnerships Geometric Limited 37

38 Conference Call Details Q4 FY12 Results Conference Call on Monday, Apr 23, 2012 at 17:15 hrs IST Geometric will be represented by Mr. Manu Parpia, MD & CEO Mr. Arvind Kakar, Chief Financial Officer Dial-in details Location Access Number Mumbai Local access number for other cities in India India Toll Free USA Singapore International Direct Toll Access Number People Building Partnerships Geometric Limited 38

39 About Geometric Geometric ( is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle Management (PLM) enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle. Headquartered in Mumbai, India, Geometric was incorporated in 1994 and is listed on the Bombay and National Stock Exchanges. The company recorded consolidated revenues of Rupees 8.08 billion (US Dollars million) for the year ended March It employs 4500 people across 12 global delivery locations in the US, France, Romania, India, and China. Geometric was assessed as CMMI 1.1 Level 5 for its software services and is ISO 9001:2008 certified for engineering operations. The company s operations are also ISO 27001:2005 certified. For more information, please contact: Media Contact Kavita Karnani kavita.karnani@geometricglobal.com Investor Relations Santosh Gambhire santosh.gambhire@geometricglobal.com People Building Partnerships Geometric Limited 39

40 END OF PRESENTATION People Building Partnerships Geometric Limited 40

41 INTERPRETATION GUIDE FOR REPORTED DATA People Building Partnerships Geometric Limited 41

42 Guide 1 Slide # Item Explanation 9,10,11,1 2 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. 4. MIS Format provides only interest expenses whereas financial results clubs interest and bank charges in one line item. 14,16 Onsite, Offshore and Offsite For EBITDA calculation, amortization software has been added and lease rentals have been reduced in depreciation Onsite: Delivery from high cost country Offshore: Delivery from low cost country, but in company premises Offsite: Delivery from low cost country, but in customer premises 14,16 Investment Income Investment income includes dividend from mutual funds, interest earned on bank deposits and profit on sale of mutual fund investments. 18,19,20 Manpower Manpower costs in MIS exclude staff welfare, but include mediclaim and group insurance costs vis-à-vis personnel costs in financials People Building Partnerships Geometric Limited 42

43 Guide 2 Slide # Item Explanation 18,19,20 Travel Reimbursement of travel expenses are grouped under travel expenses while the same has been grouped under other expenses in financial result advertisement 19,20 Facility Facility costs include rent and service charges, electricity charges, repairs and maintenance excluding that of EPABX and UPS 19,20 Facility Depreciation Includes depreciation on leasehold land, building, electrical installations, office equipments and furniture and fixtures 19,20 Non-facility Depreciation Primarily consists of depreciation on computing hardware 19,20 Lease Rentals Includes lease rent paid for computing hardware Revenue Analysis Analysis reported is for USD operating revenue 23 Service Lines Software Services - PLM Solutions + OPD business People Building Partnerships Geometric Limited 43

44 Guide 3 Slide # Item Explanation 25 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 PLM Solutions and Engineering Services business. Direct Industrial segment consists of industrial companies sourcing all types of services from Geometric. 31 Project Type Revenue Analysis 27 Customer Revenue Analysis Analysis reported is for USD operating revenue excluding Products and H/W reimbursement revenue. Analysis reported is for USD operating revenue. Distribution is on the basis of annualized figures (i.e. quarterly revenue x 4). 27 Client data Customers for product service line are counted only if revenues are more than $5000/quarter. 28 Order Book New deals won refers to new business wins with existing or new customers. This excludes rampup in or extension of existing contracts. People Building Partnerships Geometric Limited 44

45 Guide 4 Slide # Item Explanation 32 Employee Base Employee headcount reported includes all permanent employees and non-permanent employees working on billed positions. 32 Experience Profile Distribution reported is for all employees including sales and corporate support functions 33 Attrition Only undesired attrition data is reported. Difference in the net addition reported on slide 24 and difference in headcount reported in slide 23 is on account of desired attrition. % Attrition reported is on an annualized basis. Change in Q1 12 Attrition % compared to last quarter for like to like comparison 36 DSO DSO reported is on a quarterly basis 36 % Tax Includes impact of FBT and deferred tax 36 CAPEX Includes normal CAPEX and purchase value of leased computing hardware 36 Outstanding Loans All FX loans are revalued at the end of the quarter based on the closing exchange rate 36 Cash Flow Hedges Forward contracts that classify for hedge accounting under AS30. MTM impact of these contracts is taken to the balance sheet under Cash Flow Hedging Reserve. MTM impact of other contracts hits the P&L as part of FX Gain/(Loss) People Building Partnerships Geometric Limited 45