iGATE Corporation - shareholderfiles.shareholder.com/downloads/IGTE/0x0x578132/6924115B-8430-4A… · Employers list No. 1 in Earnings ... BPO Enterprise Application Solutions Customer

Proprietary and Confidential July 30, 2012 - 0 -

Investor Presentation

iGATE Corporation


Statements contained in this presentation regarding the benefits of the Patni Acquisition, the business outlook, the

demand for the products and services, and all other statements in this presentation other than recitation of historical

facts are forward-looking statements. Words such as “expect,” “potential,” “believes,” “anticipates,” “plans,” “intends”

and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in

this presentation include, without limitation, forecasts of market growth, future revenues, benefits of the proposed

Patni Acquisition, expectations that the Patni Acquisition will be accretive to the results, future expectations

concerning growth of business, cost competitiveness and expansion of global reach following the Patni Acquisition,

and other matters that involve known and unknown risks, uncertainties and other factors that may cause results,

levels of activity, performance or achievements to differ materially from results expressed or implied by this

presentation. Such risk factors include, among others: difficulties encountered in integrating Patni’s business;

uncertainties as to the timing of the Patni Acquisition, including the consummation of the public offer under the

Indian Takeover Regulations and the tender offer under U.S. securities laws; the satisfaction of the closing

conditions to the Transactions, including the receipt of regulatory approvals; whether certain market segments grow

as anticipated; the competitive environment in the information technology services industry and competitive

responses to the Patni Acquisition; and whether the companies can successfully provide services/products and the

degree to which these gain market acceptance. Furthermore, in connection with the Patni Acquisition, we intend to

borrow significant amounts, including by issuing the notes contemplated hereby, and will have to use a significant

portion of our cash flows to service such indebtedness, as a result of which we might not have sufficient funds to

operate our businesses in the manner we intend or have operated in the past. These and other risks are discussed

in the offering memorandum in sections entitled “Risk Factors,” “Management’s Discussion and Analysis of

Financial Condition and Results of Operations of iGATE,” and “Management’s Discussion and Analysis of Financial

Condition and Results of Operations of Patni.” Actual results may differ materially from those contained in the

forward-looking statements. Any forward-looking statements are based on information currently available to us and

we assume no obligation to update these statements as circumstances change.

Safe Harbor Statement


NASDAQ listed (IGTE) since 1996

International operations in

17 countries

Fully-integrated technology and

operations firm

Focused vertical strategy with 80+

enterprise clients

Over 27,000 employees

2011 revenue of $770 million*

Headquarters: Fremont, CA

Founded: 1986

The new iGATE provides fully-integrated technology and operations that transforms global

businesses into virtual enterprises

iGATE Overview

Successfully completed the largest

levered, trans-border acquisition in the IT

Services space; in less than one year

from the acquisition closing date we:

Integrated two companies with zero

customer attrition

Reduced employee attrition rates from sub

30% back to pre-acquisition rates in the

mid-teens

Dramatically improved EBITDA margin

from 16% back up to the targeted rate of

25%

Accretive even with increased tax rates

from expiry of government tax holiday

* Acquisition of Patni Computer Systems closing date of May 15th, 2011


$3 Billion in Revenues

30% of Revenue from

Business Outcomes Contracts

Among the Top 3 in the Preferred

Employers list

No. 1 in Earnings Growth

New Mission Goals to be Achieved by 2017


Mission Targets

Perpetual Account Mining

of Existing Clients

Cross Selling Services to

Existing Clients

New RFP opportunities

from increased scale and

differentiated service model

Market share gain via

improved pricing model

and service bundles

Improved margin profile

through pyramid and

resource optimization

Growth Drivers


Horizontals

Insurance /

Healthcare

Manufacturing,

Retail,

Transportation &

Logistics

Communications,

Media &

Utilities

Life

Sciences

Product

Engineering

Services

Banking

and

Financial

Services

Industry Practices Technology Practices

IT Lifecycle Services

& Solutions

Application Development

& Maintenance

Application Support

Systems Integration

Consulting

CIS

&

BPO IMS

Enterprise Application Solutions

Customer Dynamics & Intelligence (CRM, EAI, BI)

Process Consulting

Engineering Design & Embedded Software

Verification & Validation/Testing Services

Offerings – Full Range of IT Services


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

Better alignment of business

processes to IT services and

infrastructure

Focus on ROI of IT investments

and 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 differ

based on technology used

Traditional BPO providers offer

little to no technology

Large outsourcing providers may

offer both IT and BPO, but as

separate services

iGATE differentiates itself with

fully-integrated technology and

BPO solutions (iTOPS)

iTOPS Overview

Outsourced

Technology

Client

Technology

Traditional BPO iTOPS

Differentiated Business Model (iTOPS)

iTOPS Value Proposition iTOPS Competitive Advantages


Deep Domain Expertise Across Verticals

Life and Annuities

Property and

Casualty

Healthcare

Re-Insurance

Life Sciences

Wholesale

Banking

Mortgage Banking

Retail Banking

Capital Markets

Automotive

Hi-Tech and Electronic

Consumer Goods

Paper and Pulp

Aerospace and Defense

Retail

Logistics and Transportation

Telecommunications – wire, wireless, cable, broadband

Enterprise Mobility

OSS/BSS

Smart Metering

Energy Analytics

Asset Management GIS

Industrial Automation & Control

Medical Devices and Healthcare Technologies

Consumer Electronics, Multimedia & Gaming

Automotive Electronics

Storage, Networks & Computing

ISVs

Program Planning and Production

Media Asset and Content Management

Content Distribution

Gaming, Theme Parks and Hospitality

Publishing

Insurance

and Healthcare

Banking and

Financial Services

Manufacturing,

Retail, Distribution

and Logistics

Communications,

Hi-tech and

Utilities

Media

Entertainment,

Leisure and Travel

Product

Engineering

Translating our understanding of clients’ value chains into business solutions


Proven Management Team

Sanjay Tugnait – EVP & Head of Sales, NA and Global Head of Alliances

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.

Satish Joshi – EVP & Head of Product Engineering Services

Joined Patni in 1983 and is responsible for rendering specialized

enterprise-wide technology services

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

Research

Sean Narayanan – EVP & 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

CEO of iGATE Corporation since 2008

Joined from acquisition of Quintant, which he served as founder and principal

Former Board member and Worldwide Head of Sales and Marketing for Infosys

Well-known thought leader in the offshore outsourcing space

Pioneered iGATE's integrated Technology and Operations

(iTOPS) business model

Phaneesh Murthy – President and 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 Patni’s micro-verticals strategy,

structure, systems and skills

Dr. Srinivas Kandula – EVP & 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

Sunil Chitale – EVP & Head of Strategy, Marketing & Planning

Joined Patni in 1985 and has held various leadership positions

Responsible for marketing, strategy, M&A and strategic

planning functions

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

Joined Patni in 1981 and responsible for business across all

Industry verticals in EMEA

Prior to joining, he worked with LogicaCMG, Charteris, and

Polestar Applied Solutions

David Kruzner – EVP & Co-Head of Consulting & Solutions

Joined iGATE in 2010 as Senior Vice-President of iTOPS

and Consulting Solutions

More than 22 years of consulting executive management experience and

business transformation efforts.


36 Sales offices across 15 countries

• San Francisco, CA

• Bloomington, IL

• Cambridge, MA

• El Paso, TX

• Queretaro, Mexico

• Guadalajara, Mexico

GLOBAL DELIVERY CENTRES

• London, UK • Australia

• Singapore

• China

• Bangalore (2)

• Chennai (3)

• Gandhinagar

• Hyderabad (4)

• Mumbai (4)

• Noida (5)

• Pune (3)

Four tier model for balancing risks and improving operational efficiency

Global Delivery Model


Outsourcing Excellence Award : Royal Bank of

Canada

IT Supplier of the Year – 2010 Weyerhaeuser

Strategic Supplier of the year : Genworth Financial

IAOP’s ‘Global Outsourcing 100 - 2010’

Lead rankings :Fintech 100 – 2010

Lead rankings :Black Book of Outsourcing, 2010

Lead rankings :Global Services -100 – 2009

Niche Player’ in the Gartner’s Magic Quadrant for

CRM Service Providers

North America & Europe

Niche Player’ in the Gartner’s Magic Quadrant for

SAP Service Providers’ North America

BPO Excellence Awards : ‘Operational Excellence

and Quality’, and ‘Social Change Agent’

Gartner Dataquest – IDC 2010/11 – iGATE – ranked

3rd in Best Employer category

Fourth Employer branding Awards 2010 : Patni

winner for ‘Innovative retention strategy’ category

Engagement Excellence

Industry Leadership

Employee Practices

Service Delivery

Industry Accolades and Recognition

Reinforcing our commitment to all round excellence


Total Revenue (GAAP) Pro Forma Revenue (1)

Adjusted EBITDA (2)

(1) Assumes the acquisition of Patni closed on Jan 1, 2011.

(2) 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

75,798 246,215

511,939

779,646

0

200,000

400,000

600,000

800,000

1,000,000

3 MonthsEnded 2011

6 MonthsEnded 2011

9 MonthsEnded 2011

12 MonthsEnded 2011

266,112 525,972

791,696 1,059,403

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

3 MonthsEnded 2011

6 MonthsEnded 2011

9 MonthsEnded 2011

12 MonthsEnded 2011

20,566 49,170

104,930

173,457

0

50,000

100,000

150,000

200,000

3 MonthsEnded 2011

6 MonthsEnded 2011

9 MonthsEnded 2011

12 MonthsEnded 2011

Consolidated Financial Overview FY2011


$74,845 $81,013 $75,798 $170,417 $265,724 $267,707 $263,265 $267,993 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 Q1 12 Q2 12

Revenue Gross Margin ADJ. EBITDA Margin

* Numbers in Thousands USD

Margin Development


35% 35% 38%

12% 12% 12% 12% 13%

36% 36%

38%

35%

26% 26% 24% 24%

11% 13%

12%

12%

11% 11% 10% 10%

18% 16% 12%

41%

52% 51% 54% 53%

3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 Q1 12 Q2 12

Top Client Clients 2-5 Clients 6-10 Others

Customer Distribution(1)

(1) Pre Q2’11 figures are iGATE Corporation standalone figures.

(2) 291 Clients Acquired in Q2’11 from Acquisition of Patni Computer Systems

80 81

363

344 338

301 304

0

5

10

15

20

25

30

4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 Q1 12 Q2 12

Active Clients

Active Clients and Client Wins (2)

Diversified Revenue and Client Base


7,745 7,819 8,244 26,395 26,002 26,523 27,100 27,417 0.0

2.0

4.0

6.0

8.0

10.0

12.0

3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 Q1 12 Q2 12

Rev

/Head

co

un

t n

o.'s in

Th

ou

san

ds U

SD

Total Headcount Revenue/Headcount

21.0% 20.1% 20.0% 23.3% 23.4% 22.1% 21.50% 21.70%

79.0% 79.9% 80.0% 76.7% 76.6% 77.9% 78.50% 78.30%

81.8% 83.1% 80.0% 79.1%

80.9% 77.4%

75.4% 77.0%

3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 Q1 12 Q2 12

Onsite Effort Offshore Effort Utilization

Headcount Effort and Utilization

(1) Pre Q2’11 Figures are iGATE Corporation standalone figures

Employee Metrics(1)


(1) BFS(Banking and Financial Services); I&H(Insurance and Healthcare); MRDL(Manufacturing, Retail, Distribution and Logistics); CEU(Communications, Energy &

Utilities); MELT(Media, Entertainment, Leisure and Travel); PS(Public Sector)

Americas 80%

EMEA 13%

APAC 7%

BFS 23%

I&H 30%

MRDL 35%

CEU 6%

MELT 4%

PS 2%

Vertical Distribution Geographic Distribution

Diversified Revenue


29.40% 28.40%

45.70% 44.70% 44.30% 41.90% 43.10%

70.60% 71.60%

54.30% 55.30% 55.70% 58.10% 56.90%

4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12

Time and Material Fixed

49.20% 49.70% 51.60% 51.20% 52.50% 53.70% 52.40% 51.60%

50.80% 50.30% 48.40% 48.80% 47.50% 46.30% 47.60% 48.40%

0

10

20

30

40

50

60

70

80

90

3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12

Offshore Revenue Onsite Revenue

Realized Rate Onsite Realized Rate Offshore

Project Type Onsite/Offshore Revenue and Realized Rate

(1) Pre Q2’11 Figures are iGATE Corporation standalone figures

Project Type & Revenue Mix(1)


Long-term

Relationships

with Blue Chip

Customers

Diversified

Client Mix

Across Verticals

Differentiated

Solution Set

Significant Free

Cash Flow

Generation

Strong Liquidity

Profile

Top “Tier 1”

Player

Summary of Key Investment Highlights


THANK YOU!

www.igate.com

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iGATE Corporation - shareholderfiles.shareholder.com/downloads/IGTE/0x0x578132/6924115B-8430-4A… · Employers list No. 1 in Earnings ... BPO Enterprise Application Solutions Customer