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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.1 1 SOFTWARE ENGINEERING TECHNOLOGY AUTOMOTIVE TRAVEL AND AVIATION ENERGYTELECOM FINANCIAL SERVICES Results for Three Months and Nine Months Ended December 31, 2013
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.2 Luxoft Holding, Inc (the “Company”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.www.sec.gov This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. All statements in this report attributable to third party industry experts represent the Company's interpretation of data, research opinion or viewpoints published by such industry experts, and have not been reviewed by them. Each publication of such industry experts speaks as of its original publication date and not as of the date of this presentation. The opinions expressed in these publications are not representations of fact, and are subject to change without notice. This presentation also contains market statistics and industry data that are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. Certain statements in this presentation and responses to various questions may constitute forward-looking statements, including statements regarding the persistence and intensification of competition in the IT industry; the future growth of spending in IT services outsourcing generally and in each of the Company’s industry verticals, application outsourcing and custom application development and offshore R&D services; the level of growth of demand for the Company’s services from the Company’s clients; the level of increase in revenues from the Company’s new clients; the levels of the Company’s concentration of revenues by vertical, geography, by client and by type of contract in the future; the expected timing of the increase in the Company’s corporate tax rate; the Company’s expectations with respect to the proportion of the Company’s fixed price contracts; the Company’s expectation that the Company’s FOSS acquisition will help the Company develop new practice expertise; the demands the Company expects the Company’s rapid growth to place on the Company’s management and infrastructure; the sufficiency of the Company’s current cash, cash flow from operations, and lines of credit to meet the Company’s anticipated cash needs; the high proportion of the Company’s cost of services comprised of personnel salaries; the Company’s plans to introduce new products for commercial resale and licensing in addition to providing services; the Company’s anticipated joint venture with one of the Company’s clients; IBS Group’s consideration of further divesting all or a portion of its ownership interest in the Company; and the Company’s continued financial relationship with IBS Group including expectations for the provision and purchase of services and purchase and lease of equipment. These statements, which contain words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the Company and are subject to risks and uncertainties, including those described under “Risk Factors” in the registration statement, that may cause actual results to differ materially. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of Luxoft Holding, Inc or this offering. Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. The information and opinions contained in this document are provided as of the date of this presentation and are subject to change without notice. This document has not been approved by any competent regulatory or supervisory authority. This document will not be left behind after this presentation and by accepting this document and attending the presentation you agree to be bound by the foregoing limitations. Unless otherwise stated, all data in this presentation is as of December 31, 2013. DISCLAIMER
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.3
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4 4 UNINTERRUPTED GROWTH 7200+ PERSONNEL 20 OFFICES 130+ CLIENTS 1 HIGH RETENTION REVENUE CAGR 26% FY 2011 TO FY 2013 20002013 (1) As of March 31, 2013
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.5 5 REVENUE BY VERTICAL (9M FY2014) TOTAL US 292M REVENUE BY GEOGRAPHY (9M FY2014) TOTAL US $292M <1% OTHERS 5% RoE 4% CANADA 10% RUSSIA 10% GERMANY 29% UK 42% US 1% OTHERS 2% ENERGY 8% TELECOM 12% AUTO & TRANSPORT 9% TECH 58% FINANCIAL SERVICES 10% TRAVEL & AVIATION OUR FINANCIALS: STRONG AND DIVERSIFIED 5 $71 1Q FY2013 $98 2Q FY2014 $84 1Q FY2014 REVENUE (US $M) $71 1Q FY2013 $98 2Q FY2014 $84 1Q FY2014 REVENUE (US $M) $84 3Q FY2013 $98 2Q FY2014 $111 3Q FY2014 +33% YoY +13% QoQ $229 9M FY2013 $292 9M FY2014 +28% YoY REVENUE
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.6 6 ADJ. EBITDA¹ AND ADJ. EBITDA MARGIN ( US$M ) 21.2% 20.5% OUR FINANCIALS: HIGHLY PROFITABLE (1) Adjusted EBITDA is calculated as GAAP net income from continuing operations including minority interests and excluding share based compensation, net interest, income tax and D&A 19.9% ADJ. EBITDA¹ AND ADJ. EBITDA MARGIN ( US$M ) $19.5 2Q FY2014 $17.7 3Q FY2013 $22.7 3Q FY2014 +28% YoY +17% QoQ 19.3%18.1% $41.3 9M FY2013 $56.5 9M FY2014 +37% YoY % = Adj. EBITDA margin ADJ. EBITDA AND ADJ. EBITDA MARGIN
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.7 7 OUR FINANCIALS: HIGHLY PROFITABLE GAAP OPERATING INCOME MARGIN NON-GAAP OPERATING INCOME MARGIN 15.6% 2Q FY2014 17.0% 3Q FY2013 18.2% 3Q FY2014 17.9% 2Q FY2014 18.9% 3Q FY2013 18.2% 3Q FY2014 13.7% 9M FY2013 15.9% 9M FY2014 15.9% 9M FY2013 17.0% 9M FY2014 +5% YoY +17% QoQ (4)% YoY +2% QoQ +16% YoY +7% YoY OPERATING INCOME MARGIN
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.8 8 OUR FINANCIALS: HIGHLY PROFITABLE GAAP NET INCOME AND NET INCOME MARGINS ( US$M) % = Adj. EBITDA margin NON-GAAP NET INCOME AND NON-GAAP NET INCOME MARGINS (US$M) % = Adj. EBITDA margin $13.3 2Q FY2014 $12.5 3Q FY2013 $17.7 3Q FY2014 $15.5 2Q FY2014 $14.1 3Q FY2013 $17.7 3Q FY2014 +25% YoY +14% QoQ $31.9 9M FY2013 $44.4 9M FY2014 $26.7 9M FY2013 $40.8 9M FY2014 +53% YoY +39% YoY 13.6% 16.0%15.0% 11.7%14.0% 16.0% 16.9% 15.9% 14.0% 15.2% +41% YoY +33% YoY NET INCOME AND NET INCOME MARGINS
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.9 9 DILUTED EPS ON US GAAP BASIS (US$) OUR FINANCIALS: HIGHLY PROFITABLE 9 DILUTED EPS ON A NON-GAAP BASIS (US$) DILUTED EPS +29% YoY +35% QoQ +15% YoY +15% QoQ $0.42 3Q FY2013 $0.40 2Q FY2014 $0.54 3Q FY2014 $0.47 3Q FY2013 $0.47 2Q FY2014 $0.54 3Q FY2014 $0.88 9M FY2013 $1.27 9M FY2014 $1.05 9M FY2013 $1.38 9M FY2014 +44% YoY +31% YoY
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.102013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.10 HEALTHY CASH FLOW AND STRONG BALANCE SHEET BALANCE SHEET SUMMARY (US$M) (US$M) Cash 1 Receivables Total assets Total liabilities AS OF DECEMBER 31, 2013 4.5 77,6 155.2 59.9 AS OF MARCH 31, 2013 42.3 86.9 206.2 67.7 (1) Including IPO Proceeds
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.112013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.11
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2013 LUXOFT AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.12 APPENDIX: RECONCILIATION OF KEY FINANCIAL ITEMS Reconciliation of earnings before interest, tax, depreciation and amortization 2012201320122013 Net Income $12,535$17,710$26,729$40,828 Adjusted for: Interest Expense 2783929411,199 Income tax 1,3221,8092,9263,516 Depreciation and Amortization 2,3073,4576,5009,392 EBITDA Adjusted for Stock based compensation $16,442 $1,254 $23,368 $(838) $37,096 4,225 $54,935 702 Loss from revaluation of contingent liability -181-909 Adjusted EBITDA $17,696$22,711$41,321$56,546 Nine Months Ended December 31,Three Months Ended December 31, Nine Months Ended December 31, Adjustments to GAAP net income2012201320122013 Stock-based compensation expense$1 254$(838)$4,225$702 Amortization of purchased Intangible assets3226419661,923 Loss from revaluation of contingent liability-181-909 Total Adjustments to GAAP net income$1,576$(16)$5,191$3,534
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