00-Genpact Q1 2010 IR Presentation

8/10/2019 00-Genpact Q1 2010 IR Presentation

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March 2010


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Disclaimer

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 LitigationReform Act of 1995. These statements are based on Genpacts current expectations and beliefs, aswell as a number of assumptions concerning future events. These statements involve a number ofrisks, 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, aslowdown in the economies and sectors in which our clients operate, a slowdown in the BPO and ITServices sectors, the risks and uncertainties arising from our past and future acquisitions, our ability tomanage growth, factors which may impact our cost advantage, wage increases, our ability to attractand retain skilled professionals, risks and uncertainties regarding fluctuations in our earnings, generaleconomic conditions affecting our industry as well as other risks detailed in our reports filed with theU.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K.These filings are available at www.sec.gov. Genpact may from time to time make additional writtenand oral forward-looking statements, including statements contained in our filings with the Securitiesand Exchange Commission and our reports to shareholders. Although the Company believes thatthese forward-looking statements are based on reasonable assumptions, you are cautioned not to pay

undue reliance on these forward-looking statements, which reflect management's current analysis offuture events. The Company does not undertake to update any forward-looking statements that maybe made from time to time by or on behalf of the Company. In addition, you should be advised that ourpast performance is not necessarily indicative of future performance, particularly given the currentglobal economic environment. These statements and other information made available in connectionwith the evaluation of the Company are not all-inclusive and do not contain all of the information that

you may consider material or desirable in evaluating the Company.


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Pramod BhasinChief Executive Officer


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We Have Delivered

Pramod BhasinCEO

13 years at Genpact

Dedicated to best-in-class corporate governance

World-class Board of Directors

11 of 12 directors are independent

Since IPO, we have delivered

Grew revenue 22% annually

Diversified revenue base Global Client revenue

has grown at 100%+ CAGR since 2004

Improved adjusted operating income margin from

15.8% to 17.8%

Continued investment in senior leadership talent

Improved NPS from 39% to 57%

Extended GE contract through 2016 Expanded global footprint

Focus on Execution

Top 20 leaders have 236+ years experience at GE/Genpact

Top 100 leaders have 95% retention in last 3 years

Consistent Sponsorship

Strong Leadership

Tiger TyagarajanCOO

11 years at Genpact

Patrick CognyCEO Europe

5 years at Genpact

Piyush MehtaSVP - Human

Resources

9 years at Genpact

Mohit BhatiaCFO

11 years at Genpact

Mitsuru MaekawaCEO China, Japan

8 years at Genpact

Bob PryorEVP - Sales, Mktg and

Business Development

1 year at Genpact

Note: Net Promoter Score (NPS) signifies the likelihood that a customer would recommend the service in question to others


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Company Highlights

Globalization of Services Driving Growth in Large, Underpenetrated Market

Best in the World at Business Process Management (BPM)

Unique DNA Based on Lean, Six Sigma and Operating Excellence Difficult to Replicate

Global, Diversif ied and Expanding Blue-Chip Client Base Provides Runway for Growth

Bui lding New Science for BPM SEPSM a Huge Competit ive Differentiator

Powerful Combination of High Growth and Predictable, Visible and Resilient FinancialProfile


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Irreversible Trends Driving Global Demand for BPM

IrreversibleTrends

AcceleratingMomentum

Ecosystems ofExpertise

IncreasingClient

Acceptance+ + =

DemographicsGlobalization

ServicesTalent Supply

ChainRedefining Core

vs. Non-Core

Working AgePopulation

Japan 10%

UK 2%

US 7%

Scandinavia 0%

India 23%

Business

Technology

Engineering

R&D

Standardized,consistent, value-

Add

Virtual Supply

Cost Pressures

Partnerships

Social Networks

Domain Knowledge

New economicrealities

Focus on productivity,preservation of cashand working capital

Cost control / marginimprovement

Converting capital tooperating costs


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Globalization of BPM ServicesDrives Attractive, Underpenetrated Market Opportunity

Source: NASSCOM Perspective 2020 Report

$1,500$380

$230

$190

$200

$500

Significant Growth fromNew Opportunities

Core markets2008

Growth in coremarkets

New verticalsin developed

countries

New cus tomersegments

Newgeographies

Potential 2020market size

$ in billions


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At IPO1 Today 2

Employees 26,100 38,600

Operating Centers / Countries 27 / 7 39 / 13

Clients > $5mm3 7 35

Clients > $25mm3

1 4Total Revenue $613 $1,120

3-yr Trailing Total Revenue CAGR 17% 22%

Global Client Revenue $160 $669

3-yr Trailing Global Client RevenueGrowth NM 61%

Adj. Operating Marg in 16% 18%

Significant Progress Since IPO

Note: $ in millions1As of year-end 2006

2009 BusinessUpdate

Added 52 new logos

Grew revenue and improved margins

Continued to aggressively invest in business (SEPSM

, global team)

GlobalClients

60%

GE40%

GlobalClients

25%GE

75%

Revenue Breakdown

2As of year-end 20093Excludes GE


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Differentiated Financial Performance in the Downturn

Genpact -

Global

Clients

Cognizant Genpact EXL WNS TCS Infosys Wipro IBM GS Accenture2

Source: Public filingsNote: Companies who report in non-USD have been converted to USD based on average exchange rate for the reporting period116% adjusted for GE divestiture2Excludes lighting segment

1

CY 2009 Revenue Growth

21.4%

16.4%

7.6%

(0.2%)

2.7%

(2.0%)

5.1%

(6.6%)

(11.8%)

(1.2%)


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USA

China

IndiaMexico

GuatemalaPhilippines

South Africa

Netherlands

Poland

Romania

Hungary

Morocco

Spain

Country of Operation

38,000+ Employees 13 Countries 25+ Languages

One Operating Culture

A Global Approach to Servicing Clients

2006 2007 2008 2009

Countries ofOperation 7 9 12 13

OperatingCenters 27 30 35 39

72%

8%

10%

10%

Revenue by DeliveryCenter Geography

75%

7%

12%

6%

Headcount byGeography

India

Americas

Asia

Europe


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Unique Culture Difficult to Replicate Commitment to delivering high quality service to clients rewards tied to NPS

Process excellence delivered through >1,400 rotations, global assignments and cross functional exposure Increased employee retention with flexibility through work-from-home, leadership development and merit-based variable compensation

Lean-Six Sigma DNA Differentiates Our Service Offering 10,000+ Six Sigma Green Belt-trained employees and 23,000+ Lean-trained employees

300+ BB/MBBs across all levels including operating leadership

1111

Unique DNA and Culture a Huge Differentiator

Attract, Engage and Retain TalentBuilding Domain Expertise &

Capacity for Growth

Able to attract the best in every market

Employee Satisfaction Survey shows huge

engagement Leaders score 89%+ satisfaction

Customer centricity #1

Top 300 leaders covered by stock options

Hired 50+ VPs in 2009 with deep domainexpertise

Sales and BD

Operations

Vertical Industries

Strong domain leadership developmentprograms

Ops, Finance, IT, HR, Commercial Leadership

Rigorous career and succession planningprocess for 3,000+ managers

1Based on Gallup Employee Survey

People and Culture One of the Top 3 Reasons We Win


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Key 2009 Global Client Wins

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Our Lean Six Sigma DNA

Thought leadership and industry-leading culture of innovation

SEPSM differentiates our service offerings from competitors

Our people and our passion

High win rates up substantially

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Why We Win

We Win Against the Best in The World

$342

$551

$669

$160

$42

$20

60%

53%

41%

26%

26%5%

2004 2005 2006 2007 2008 2009

Global Clients Revenue and % of Total Revenue

Note: $ in millions

Global Clients 20+ 100 155 264 400

> $5mm N/A 7 18 29 35

> $25mm N/A 1 3 4 4

GC 04-09 CAGR: 101%

GC (ex-GE) 04-09 CAGR: 96%

GC (ex-GE / acquisitions) 04-09 CAGR: 91%

We Compete Against Global Leaders


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Large and Expanding Blue-Chip Client BaseProvides Runway for Growth

Banking, FinancialServices & Insurance

Pharma and Healthcare Manufactur ing

CPG/Retail

Business Services

Others

High-Tech

+ 3 of the 10 Largest Pharma Cos.

+ Leading Devices & Generics Co.+ 2 Leading Healthcare Information Cos.

+ 2 Leading Fortune 500 Insurers+ Leading Global Reinsurer+ Leading Personal Insurer in US

+ Leading US Retail Bank+ Leading Indian Private Bank

+ 2 Leading Global Conglomerates+ Top Global Automaker+ Leading Manufacturers of Doors

+ Global Publishing Co.+ Leading Package Delivery Co.

+ Leading Internet Services Co.+ Leading Supply Chain BPM Co. + Leading Data Management Co.


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$31.2

$18.8 $18.3 $17.9

Genpact EXL WNS Wipro

(BPO)

End-to-End Service OfferingsRanging From Simple to Complex

Enterprise

G

&A

Services

High Value-Add Reflectedin Revenue / Employee

IT

Services

Note: $ in thousands, based on CY 2009

Risk Management Services

Procurement &

Supply Chain

Collections &

Customer Service

Internal Audit

SOX Advisory

Regulatory Compliance

Enterprise & IT Risk Management

Fraud Risk Services

Indirect/Direct Sourcing &Procurement

Demand Forecasting

Inventory Optimization

Fleet & Logistics Services

Service Operations

Early & Late Stage Collections

Analytics/Skip Tracing

Bankruptcy Originations

Customer Care

Technical/Product Support

Customer Acquisition & Sales

Consumer & Commercial Banking

and Lending Operations Application Processing

Underwriting

Claims Management

Mortgage Orientation and Servicing

Payment, Booking and Funding of Loans and Leases

Finance &

Accounting Accounts Payable

Order to Cash

General Accounting

Closing & Reporting

Treasury & Tax

Financial Planning/Analysis

Enterprise Application Services

Enterprise Applications Solutions (Oracle, SAP,Siebel)

Business Intelligence/Data Warehousing

Technology Integration (ADM, BPM, Testing)

IT Infrastructure Management Services

End User Computing/Help-Desk Services

Enterprise Computing

Database & Middleware

Network, Voice & Security Services

Reengineering: Procure to Pay, Record to Close, Inquiry to Order, Order to Cash, Collections, Treasury & Tax

Analyti cs: Marketing, Pricing, Inventory Optimization, Customer Loyalty/Surveys, Contract ManagementPro

cess

Foun

dation

Industry

Expertise

Manufacturing(40%)

(Auto, CPG, Retail, Pharma)

Other(16%)

(Healthcare,Hospitality,

Media, Tech.)

BFSI(44%)


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Operating Excellence Ecosystem

Up-Stream Process 1Focus ImpactProcess 2Down-Stream

$10 $100mm

Smart Enterprise Processes (SEPSM)

+ +

Increasing

ValuetoCli

ent/Genpac

t

Re-engineering (On-shore) / Black Belt Projects (Off-Shore)

$2 $20mm

LEAN / Green Belt Projects

$50k $2mm

Improve

EnterpriseBusinessOutcome

End-to-EndProcess

Improvements

Sub-ProcessImprovements

Operational

Stability

SDF(1) / BPMS(2) / CMP(3) / Alerts

$1 $2mm

InsightsBenchmarks

1Service Delivery Fundamentals (Daily Status Tracker)2Business Process Management System (Genpacts Benchmark for Self Evaluation)3Common Minimum Practices (Performed During Transitions)


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Accelerating Business ImpactSmart Enterprise Processes (SEPSM)

Key Observations About ManagingBusiness Processes

Holistic and granular framework for managingbusiness processes

Highly scientific, enterprise-wide view of processes

Proprietary IP based on analysis of 200 million+transactions across 3,000+ managed processes

Maps client performance at every step of a processand measures against best-in-class standards

Offers solutions including process, analyticsreengineering and focused IT based on achievingbusiness impact

Smart Enterprise Processes (SEPSM) A New Science

Core enterprise level processes cut across functionalsilos

Typical focus is on process efficiency vs.effectiveness

Driving effectiveness delivers 3x 5x benefits overdriving efficiency

Companies lack benchmarks to know how good theycould be

Technology is often not the answer 5070% ofbenefits from process and insights

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SEPSM is a unique proprietary methodology that can deliver 2 5xs the impact on

improved cash flow, margins, revenue growth or other metrics.

CFO Suites Insurance Suites Healthcare Suites Enterprise SuitesFinancial Services

SuitesLodging Suites

Source to PayOrder to CashRecord to Report

Application to In-forceP & C Claims

Customer ServiceRequest to RepairHire to RetireEnterprise Risk

CollectionsApplication to DisbursalCommercial lending

Check in to Check outVisit to CashPay to Recover


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Level 1SEPSM

Indirect source to payBusiness Outcomes

Level 2

Keyperformance

measures% spend visible accurately % preferred vendor spend

Spend

analysis

Planning

& PO issue

45% 100%93% 0% 100%67%

Key Insights/

Practices

1% 5%2%

Reduction in Operating Costs

Sourcing Procurement

~3-4 pp deflation can be achieved with 30-40 pp

increase in spend visibility.

30-40% of contracted savings lost due to non

compliance. 100% Cataloguing and no-PO-no paypolicy can reduce maverick spend by 20-40%

Unique Proprietary Framework

End-to-EndProcess

Efficiency Effectiveness

Source to Pay Invoice cycle time Payment accuracy

Total spend reduction

Collections Contact rate Accounts per collector

Gross loss

Application to

In-force

Cost and cycle time of

application processing

Increase placement rate

Revenue growth

Laggard

Leader

Median

18


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Case Studies: SEPSM

A Key Differentiator

* Worldwide Conventions and Business Forums

SEPSM Spearheads Entry Intoa New Vertical

Healthcare Processes

SEPSM Drives Growthwith an Existing Client Global Pharma Company

SEPSM Leads toCustomer Win

Global CPG Company

Deconstructed hospital into

different work flows each

individually optimized to give E2E

impact across:

Patients

Materials

Revenue

Re-engineered all non patient

facing processes to drive impact

Optimize 140 core processes

in < 1 year & Impact 80%of all patient experiences(for Miami Childrens Hospital)

Target of $415 mil lion of

Savings through Source toPay (S2P)

Identified value leakage in

Operating Costs by measuring

variation across geographies within

the company and by benchmarkingversus industry best in class

Created a 3 year roadmap based

on the most significant opportunities

for standardization across short,

medium and long term

Applied Best-in-class

process design to maximizebenefit of ERP investment

Client in process of implementing

global, shared-service, back-office

SAP platform

Genpact leveraged SEPSM process

blueprint to review global design

template and design for best-in-

class processing

Identified metric gaps and linkages

to allow maximum impact to

outcome

15% Increase in MCHs NetOperating Margin

Potential 2010 Impact of$10-15 mill ion

Roadmap to $415 mill ion

Identif ied Working CapitalImprovement of$100-200 mill ion

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Growing Our Pipeline

Strong Trends in Our Business

Growth across all geographies, services,

customer segments and verticals

Win rates at all-time high - newinitiatives (such as SEPSM) drivingpipeline growth

Investment in high caliber, experiencedsales team across the globe with ~20years experience

Doubled European sales team, many with strongindustry and deep domain expertise

Many with senior leadership positions at firmssuch as Accenture and HP

Stable pricing environment

Total contract value of pipeline

up 29% y/y European pipeline up 75% y/y

India-to-India pipeline up 100% y/y

Number of deals also up by 9% QoQ

Sales cycle is steady, deal scopebetter and deal mix strengthening

Avg. deal size increased to ~$10mm,

and about 1/3 are 100 FTE deals

Drive Performance


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Strategies for Growth

Sustained GrowthEngines

M&AMultiple New Entry Points

With Clients

Mining

Marketing, global brand

SEPSM

Re-engineering Consultative selling

Big-ticket, high-volume

Smaller-ticket, high-volume

Customized solutions andprojects

New geographies

India-to-India

China-to-China

Fill the gaps

New verticals andgeographies

Captives

Recent deals: Creditek,ICE, Axis, SymphonyMarketing

Poised for Continued Growth

Innovation Driving Growth Through Cycles


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Mohit BhatiaChief Financial Officer


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Resilient and Durable Business ModelDriving Strong Performance Through the Cycle

481 490 451453

160

342551 669

$1,120$1,041

$823$613

2006 2007 2008 2009

6% 2%(8)%

114%

61%

21%

GEGC1

$199$178

$134

$97

2006 2007 2008 2009

38%

33%

12%

15.8%16.3%

17.1% 17.8%

2009 In Review

Strong organic growth in despite economic headwinds

Growth engine driven by Global Clients GE relationship provides significant stability and

predictability

Diversified model

35 clients over $5mm vs. 29 prior year

Strong and expanding margin profile

Multiple financial levers for margin expansion

Recurring revenue base (80%) and high visibility

Strong balance sheet and cash flows, including

approximately $430mm of liquidity

Note: $ in millions1Global client revenue includes GE divested businesses and acquisitions (GAAP)2Adjusted Income from Operations excludes amortization of intangibles, stock option expense and FMV adjustments

Revenue Mix

Adjusted Income from Operations2

CAGR22%

CAGR27%


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We Manage Our Business for the Long-Term

$235

$254

$271$282

$266 $273 $284

$297

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Q/Q GrowthRevenue

Note: $ in millions1Adjusted Income from Operations excludes amortization of intangibles, stock option expense and FMV adjustments

$28

$42

$50

$59

$42$48

$54 $55

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009

% MarginAdjusted Incomefrom Operations1

2008 2009

Quarterly Revenue and Q/Q Growth Adjusted Operating Income and % Margin

18.3%

20.8%

18.4%18.9%

17.7%

15.9%

16.5%

12.1%2.6%4.2% 4.4%

8.1%

1.3%

(5.7%)

4.1%6.8%


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Flexible Operating ModelDriving Leverage and Capital Efficiencies

$134

$178

$199

2007 2008 2009

% MarginAdjusted Incomefrom Operations 1

SG&A as % of Revenue

Note: $ in millions1Adjusted Income from Operations excludes amortization of intangibles, stock option expense and FMV adjustments2Denotes capital expenditures incurred

Demonstrable Margin ImprovementDriven By Cost Rationalization

Free Cash Flow BeforeCash Interest and Taxes

16.3%17.1%

17.8%

26.5%

24.5%

23.7%

$117

$186$181

2007 2008 2009

CAGR24.4%


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Long Term Target Model

Revenue Growth 20 25%

Organic 15 17%

Vertical Expansion 2 3%

M&A 3 5%

Annual Margin Improvement 50bps

Long-term Targets


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Company Highlights

Globalization of Services Driving Growth in Large, Underpenetrated Market

Best in the World at Business Process Management (BPM)

Unique DNA Based on Lean, Six Sigma and Operating Excellence Difficult to Replicate

Global, Diversif ied and Expanding Blue-Chip Client Base Provides Runway for Growth

Bui lding New Science for BPM SEPSM a Huge Competit ive Differentiator

Powerful Combination of High Growth and Predictable, Visible and Resilient FinancialProfile


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March 2010

Documents

00-Genpact Q1 2010 IR Presentation