Nagarro SE (NA9) Earnings Call Transcript & Summary

Welcome, everyone. This is exciting. So many of you here. It's very nice to see you all. On behalf of every Nagarrian, let me formally welcome you. And even those of you who are watching on the live stream, thanks for joining in. My name is Vaibhav and I want to start the session off by just telling you about what the day holds for us. This is our first Capital Markets Day since we got listed and we want to make it stand out. And in [indiscernible] fashion, there are about 20 of us here from all over the world. I think we have traveled from over 9 countries and hope to have a lot of conversations with you during the day. And it's our third year as a public company, and we feel we have a lot of stories to tell ourselves -- about ourselves and talk a little bit more, show a bit more about ourselves and say how fun a company we are to work with, how we are committed to our client success, how we are trying to rewrite the rules on how modern innovative companies work while they scale and that's the kind of company that we want to be. So we'll talk about that a little bit today. So yes, hopefully, you'll find it enjoyable and informative today. And we would have got our work done. All right. So here's what we have planned, right. In the first half, we will talk about our design, our culture, our core values, our frameworks, processes, systems, how these all work together to create a differentiated experience for our clients, for our colleagues, even for companies that join us through acquisitions. So we'll talk a little bit about that. After that, we have a coffee break, during which you'll again hear from us, there are so many of us here. And post the coffee break, we'll talk about the future of the company. We'll talk about some of our financial goals. We'll talk about what we're doing in the ESG space. We'll talk about how we look at partnership ecosystems to provide opportunities for growth. We will even talk about how we see AI as a potential opportunity for us. So you'll hear all of that. And then in the end, we have a Q&A session plan. And the way we will conduct it is we will request you to send your questions via e-mail on ir@nagarro.com. The method for sending questions is the same for all of you who are present here and those who are on the light stream. So please do send your questions and as you have them. Please also mention specifically your name and your affiliation in the question, in the e-mail. And it will help us put together the questions later if you send them in early. We probably, as you can imagine, may not get to all the questions. So if you miss answering your question later, please understand that we maybe are running out of time. I still can't get over how excited as you could probably tell, right? I joined Nagarro when we were less than 100 people. And today, I think we are at 200x at size. So for me, it's been a very transformative journey. And throughout my time here, I've observed that we've always had an eye on the future. We've always had some goal that we are looking at, which is different from what we have to do day to day, right? I mean day-to-day work gets done, but you're always allowing yourself to something big. Until now, until recently, our goal has been to be $1 billion in revenue company. And as you -- some of you may have read, we are projecting to surpass that goal this year. And we will actually have achieved what we said out loud to ourselves in 2014, in our -- when we were much smaller, I think of a tenth the size. I'm sure the people with the figures would confirm that. And these are actually slides from that meeting we had in 2014. We said that we hope to be a $1 billion company someday, but we also had an eye to a smaller, more immediate target, which I think -- I'm sure Vikram will talk about it later. I think we did meet that 2018 target as well, but this was our hope back then. And we are very close to achieving this goal this year, as I said. And so what's our next big hairy audacious goal? And we call it 10-20-30, right? That is $10 billion in revenue, 20% adjusted EBITDA with a 30% year-on-year growth in revenue. This is what we would like to do. It's not a plan. There's no plan for this. We don't have time lines for this. But this is something that now all of us, all the Nagarrians hold in our hearts, in our minds and in our own way, we try to figure out ways on how we can contribute to this goal. How do we design our work, our processes to be a 10x company, right? And there will be twists and turns along the way. Let me move towards it all the time. And -- but I keep referring to Vikram because he likes to be more exact than I am, and he will talk later in the day more about the more immediate things that we can see in field type of goals. But let's talk about 10-20-30 a bit more. How do we even envision moving towards this, something like this. It's quite big. It's far out there. And what we do is we design. We are a company that's obsessed with doing things by designing. We are all techies. We all like to do architectures and design diagrams and things like that. And -- so we take the approach of design, designing for scale, designing for culture, designing for maybe the most important thing, differentiation. We are a company that is quite obsessed with standing out with being fearless, being different from everybody else. And being a company like that while scaling because scaling has been solved before. Scaling has been done. A lot of our competitors, other companies in this space are much bigger than us. So we want to scale while maintaining our differentiation while being the company that we are today. So we design. We design for entrepreneurship. We design for agility. What that means is that all business units in Nagarro call their own shots. They have the freedom to invest for their client strategy, invest for their growth. Take decisions without being in collaboration necessarily with a central team or something like that. On the other hand, our design also incentivizes all of the business units to work with each other. So it becomes a collaboration model rather than a command-and-control model. We designed for being global and on teroartical. And what that results in is a very low importance for a country or legal entities in the way we work. What that results in is not having a CFO instead of having a finance counsel or not having a Chief HR Officer instead of having an HR Council. For that matter, we don't even have a CIO, we have an IT counsel. This is how we work, right? So we design constantly. It's a never-ending thing. For example, I was talking about a differentiated experience for colleagues for Nagarrians. Every Monday, 4 members of the senior management meet and brainstorm ideas on how we can elevate the experience of our colleagues globally, add scale. This is something that -- I mean, I think 3 of them are present here. I think Manas is here. I'm here. Vikram is here. And this is something we do without fail. Also creating a differentiated client experience, we started what we call as the learned socialized program, you'll hear about more later, where every week, several members of the senior management hold live sessions with the entire company, sharing experiences and learnings on how to create value for clients, how to elevate the experience for our clients. It is something that we do without fail. We've been doing it for years now. Later in the presentations of my colleagues, you will see many examples of this thinking network, processes, frameworks, global ways of working. All being put in place with an eye on 10x, again, from the 10-20-30. And we do all this, but one measure of success, aside from the actual growth in the numbers, is what our clients say about us, right? What do the clients think? And we measure that also obsessively. We are a company which runs a client satisfaction survey every quarter instead of, let's say, every year. And I think we did announce that last year, we made some changes to how we do client satisfaction measurement. We made our questions much more actionable, much more sharp. And what we did say is, last year, we also started measuring a more standard and acceptable measure called Net Promoter Score. We haven't published our Net Promoter Score till date. We will do so. But as a quick recap, Net Promoter Score is something where you just ask one question. We say, on a scale of 0 to 10, 0 being very unlikely and 10 being very likely. How much like how likely are you to recommend Nagarro, right? And folks who answer 0 to 6. We call them detractors. They are ideally -- they should have 0 detractors, but everybody has some. And these are all who are maybe going to change partners. They may recommend others to not work with you. So this is not a good thing, right? So it's a very large scale. Part of the scale is for detractors. Those who say 7 or 8 are passives. They like you, they're happy with your work. but they're not enthusiastic. Perhaps if somebody else comes in, offers a better experience, they are likely to switch. Those who ones are 9 or 10 are your promoters. These are the people who will go out of their way to talk about Nagarro, to recommend Nagarro, very happy with your work, very enthusiastic, very loyal. And the way you calculate NPS is you take the percentage of promoters and you subtract from it the percentage of detractors and then you get a score. And anything above 0 is considered good. Everything above 50 is considered excellent. The leaders, companies like Lufthansa or Apple or BMW or Audi, they all have scores in the 40s, 50s, 60s, maybe even 70s for a few companies, right? And what we understand is in our industry, the average is around 30%. It's a good -- well industry that serves his clients well. Our Net Promoter Score for the beginning of this year, this quarter is 61. Some response are still coming in, but this is a pretty good representation of what the score is going to end up to be. We will be publishing this regularly going forward. So that it's a standard way of measuring client satisfaction for us. It's a good score, but I'm sure we are always looking to push this forward. I mean that just means that there is some passives and detractors still in our mix. But with this, let me hand it over to Annette who is going to talk about 1 one the things that we designed for, which is culture. So thanks for your time.

Hi, everyone, and welcome. My name is Annette Mainka, and by the way, I'm not a techy. Along with other topics, I'm responsible for risk and compliance. However, today, I will talk to you about culture, culture at Nagarro. Why me?? Because from a compliance perspective, I help make sure that our values define us today and tomorrow. But now that my colleague, Vaibhav, talked about our goals. You might ask why culture? Why shouldn't we start with strategy. Why do we care so much about culture and values? And more importantly, why should you care? Well, we live in -- we live in a world where everything is comparable. A product to a product, a service to a service. And the question is what makes you unique? In our view, we believe that our values are a true differentiator. And by the way, we are not the only ones to believe that values are incredibly important. Probably you all know, Peter Drucker's famous quote, "Culture eats strategy for breakfast." And while agree that value-driven culture, of course, cannot be overstated. We still have a more nuanced view of it. In our case, culture, virtually has entered into a last marriage with strategy. The 2 simply belong together. Also, our culture and our compliance framework are not contradictory. They support each other and make sure that we safeguard our company in a human in a value-driven way. So you all know our caring values. But let's just take a short moment to establish them again. Caring is an acronym. What does it stand for? Let's start with the C for client-centric. Our #1 goal is always to help our customers to become future-proof. We help them face the greatest digital challenges and come out as market leaders. Agile. No matter how big we become as an organization, we will always be organized in small, powerful teams, persistently collaborating and purpose inspired. Responsibility is, for us, not only about intrinsic motivation and a very high level of self-responsibility, it's also about empowerment to bring the best out of every Nagarrian. We feel responsible for our clients, for our colleagues and for the world around us. Intelligence has many facets. Beside the classical intelligence, of course, which is important, we are also concerned about emotional intelligence. Meaning the ability to develop in such a fast-growing digital global organization. Non-hierarchical and this is, by the way, one of my favorite ones. What characterizes us? We are not driven by titles. We do not have org charts in the entire organization. You just heard from Vaibhav, we do not have the traditional CXO positions, while -- and this is important, we all adhere to our compliance rules. [indiscernible] global, yes, we work in over 33 countries. However, our definition of global is not being represented in so many countries around the world. We do not focus on cultural biases. We do not care about country borders, but we have a very natural global way of working together that is based on respect and mutual understanding for each other. Actually, we see ourselves as globalists. And I think you will have the opportunity during the day to experience this. And then, of course, caring is in itself a value without which all the other values fade away. To sum it up, caring is our superpower. And you will most likely hear about this super power during the day in other presentations that have other focuses, but still, this is the red line throughout the day. Let's move on to another very interesting couple: culture and structure. Culture and structure form a winning team at Nagarro. We believe that culture without structure is not scalable; and structure without culture is a recipe for disaster. Maybe drastic words, right? But we truly believe that our values are not only a differentiator but also the fundament for freedom that we, meaning all Nagarrians need to foster entrepreneurial spirit and flexibility to build and grow a company that makes an impact for our customers and for the world today and in the future. Maybe you're asking yourself, okay, how can this work? How can more than 18,000 Nagarrians around the world aligned with this special organizational structure. Well, there are 2 major points that I would like to mention here today. The first one is our playbook or you can call it our code of conduct the Nagarro Constitution, which along with our supplier code of conduct, builds the basis of how Nagarrians around the world broke together in a compliant manner, be it with customers, with institutions, with suppliers or with colleagues. Second, structure and processes start with Global Systems, like one single recruiting system, one single HR system, global interview panels, global onboarding processes. One single talent allocation planning system, one data lake in which all corporate data goes, one ERP on which all accounting gets done. And also one global compliance tool and processes that secure what we are doing. These are just examples, but -- while these systems and processes help us scale, they also ensure that from a compliance perspective, compliance targets are not randomly met, but can be monitored through systems and processes around the world. So this is just an illustration to show what central and global structure at Nagarro means. And of course, we also have 18 companies that have joined the Nagarro family over the years. And I think it's an open secret that most acquisitions failed due to the famous nonexisting post-merger integration process. I do not want to get ahead of my colleague, Andre, because he will talk about this in much more detail. But just one note, at this point, the winning team also kicks into play here, culture and structure. So no matter whether we integrate new companies, whether we expand to new geographies, whether we implement global systems on a global scale. We do it with human persistency, persistent collaboration, under compliance rules and not to forget with a lot of fun watching out for compliance, I may say that. So I hope I could give you a small glimpse as an introduction of how our culture is unique, tangible and real. And with this, I hand over to my colleague, Andre. Thank you.

Hello. Andre. Surprise. And a very warm welcome from all of us here. My subject today is mergers, acquisitions and integrations view from the other side. Don't worry, I am from this site very, very much from this site. But why is that? Actually, my Nagarro journey started back in 2019 when 4 members of the Agya Group decided to merge, to Unite, to form a larger and stronger Nagarro. And at that time, I was part of one of the companies, quite a small company. I was part of the executive team, small executive team and a minority shareholder. We were responsible for strategy, vision, mission, operations of that company. So today, I will share with you my personal experience of the journey to become Nagarrian, who I am today, probably. And the experience is a fascinating one because in 2020, when we started with the ambition to get listed later. We were 8,500 people. I was coming from a company of 700 people. And as you know, today, we have just crossed 18,000 people. So that's quite a journey. So I'll share with you a couple of my insights. But before, a couple of words about myself. I am a product of the Soviet Union. This is how I say because my first spoken language was Ukrainian and then because my father was a military engineer, my childhood was spent hoping from military base to another from Ukraine all the way to Vladivostok. Today, I live in Romania in a city called Cluj, also known as Klausenburg. It's known for its status as the capital of Transylvania, Siebenbuergen. Don't worry. These days, we are not dangerous. Clujis also famous because it's quite a unique place. It has 380,000 inhabitants and 100,000 students. It's also known for 2 of its large festivals. One is called UNTOLD and another one is called Electric Castle and more, it's known as the largest location of Nagarro in Eastern Europe. My role in the organization now is leading one of our global business units, which is focused on life sciences and health care. And I am also responsible of facilitating operations of Nagarro in Eastern Europe, which is Romania and Poland. And, Oh my God, these slides help me to understand what does it mean under the spotlight. So my experience. I have 3 very important points. And these points are very unique in my experience of being in this industry because I'm with the company for 20 years. I am a techy. I started as a software engineer, but now I'm more responsible for the leadership side. And when we started our journey, how I can describe it, it actually has 3 main components: preservation, then symbiosis and then full integration. What does it mean? When we started our discussions, of course, we have a dedicated team. We have a structure, we have a framework in place to integrate companies. And I just mentioned, integrating 18 companies, it's not very rocky, right? We have some experience with that. So we have back office integration. We have IT guys, finance, we have ERP, we have infrastructure. We have legal representation. All that works well. What is different in Nagarro? What I felt different is that on top of this framework, which is very important and unique, we put emphasize on preserving what works well because when we acquire a company, we look at something unique in that company. Each company comes with its own team, unique set of experience skills. This is why we are looking at them. And all the discussions we had from very, very beginning was business continuity. Back office works there to support us, but first, make sure that what you do well, you continue doing well. And in our business, working with so many clients and having so much diversity, it's very important to give each entity freedom to customize its own approach so that we are delivering value for that specific case. So preservation meant that when we joined the process. I was leading life sciences business in my company, we also united the practice of bigger Nagarro from the Life Sciences point of view. And on the way, we just united how we work and how Nagarro works, so that at the end of the day, we compound our experience and run for a couple of months, even the first year, just preserving the way we worked before and learning from each other how we can contaminate best things from one party to another. And then it went into a symbiosis. And today, I can say that it became a full integration, but it was driven by the team inside out. We put our own deadlines. We have established our own objectives and how we merge framework so that we work together. And I think that's fascinating because in my discussions, I already had with Manas and I was asking like, okay, what do you want me to do? I'm a senior leader. I decided to become part of Nagarro tell me. And he was like, we have these KPIs. Clients must be successful. We have to provide numbers. U.S. smart guy just come up with the best approach that you believe is there. So what I feel what I see and even today, we do not put any frames or boxes around any integration. We treat people as intelligent people, and we ask them to do their best, and that works very well, again, supported by the important things like compliance, which is invariable. Another part and I've already mentioned, [indiscernible] of course, goes into the personnel and people like we do not look at titles when it comes to communication and collaboration. What I felt is that nonerarchical is also a way of working. So when 2 companies sit together and discuss about merger, it doesn't matter if one company is 700 people and another company is 12,000 people. Bose have equal chance to be heard and to come up with the ideas. There is no [indiscernible] because you are a company who are acquiring and the other company who is getting acquired. Everybody has the possibility to come forward and state its own ideas with the same weight. And I'm not exaggerating. Even today, even when we discuss about different ideas, I think Nagarro -- for me, it reminds me of Ratatouille. You know the movie, Ratatouille, when there is this quote, "No, not everyone will become a great cook, but everyone has a possibility to become a great cook." I think in Nagarro, it's same. Every single person has a possibility to become a leader. If you have a good idea, if you can unite energy around you, nobody puts any structures or [indiscernible] around you to prevent you that. We do have structures. We do have roles. We have roles that have greater spend. You have people who are responsible for other people but every single person in Nagarro can be heard. It's up to you. You can become a leader at the company level if you have energy and you have ideas. And that's something that also functions when we integrate companies. And it leads me to the next value is focused on people. You all know that Nagarro mission, very mission is around people. We want to make distance and differences irrelevant between intelligent people. And again, coming back to my conversation with the leadership from Nagarro when we started discussions, I immediately felt that I am not treated as a resource or not even as a professional. Nagarro internally, we refer to our culture as a family. To me, coming from Eastern Europe and with my background, it sounded a bit weird. I mean, I have work, I have family. How does it work? But I think through this approach of looking at each one of us as an individual, not only what I can do as Andrea as a professional, who I am? Where I'm coming from? What's your -- so there is a lot of focus on our personalities. And I remember many, many interactions around who we are as people. Last autumn, we had conflicts, which is one of our largest yearly gathering from the senior management team. And on that level, there was no problem and not at all strange or awkward for us to talk about personal experience, we were talking about job strategy, but also about personal experience on the stage about our weird hobbies or things that we do with our families, it was absolutely okay and fine to do it. And this gives also an example to all the newcomers to start and integrating and becoming that way where it leads to a lot of trust. But about values and how we approach HR and how we tackle with people because people I was talking with somebody at the beginning, I was saying like people is the only raw material that we have. It's the gray material from here. And so we put a lot of focus on people, and I will ask my colleague, Shruti, to tell you more about what do we do as a car to manage us as a community of Nagarrian, first of all. Thank you very much.

Thank you so much, Andre, and a very warm welcome to all of you. Let's begin with my introduction. I'm Shruti Tandon, and I lead the people enablement team for South Asia, and I'm a part of the Global HR Council. Today, I'm going to talk about our people practices and what we do for our colleagues at Nagarro. So I think we have heard about gearing as a super power in a lot of slides prior to this presentation, and we keep hearing about in the other slides as well. So gearing is primarily our super power and are guiding principles in whatever we do. The way we propagate our programs, design them, we actually live, breathe and execute our core values. And people enablement at Nagarro is all about gearing. It is actually core values is the lens through which you would look at how feedbacks are given to individuals, how performances are discussed, how interactions are done. It is the base of everything that we plan and do. And the way these core values could permeate through the organization is through a global framework that sends out signals of these core values. And then we have programs that propagate these signals and institutionalize the core values for our colleagues. And constant nudges are sent out through this framework, which would ensure that these programs are on track and that people are aligned to them. And Ginger is the business operating model for us that helps us implement this framework. Ginger kind of enables us to run these programs at scale by reaching out to every Nagarrian and delivering the Nagarrian experience we want them to be delivered. So the journey into the Nagarrian experience, it starts right from the onboarding process. The moment an offer is released to a new Nagarrian we start interacting and engaging with our future joiners and creating these touch points throughout their onboarding experience. There are programs that we have institutionalized programs like Nagarro overview, where leaders from within the organization, talk to the future joiners, they answered their questions and they talk about Nagarro. So you're giving an opportunity to these people to give them a window into life at Nagarro. We have unplug sessions which are sessions which would give them a sneak peek into the tech landscape of Nagarro, and there are leaders who would represent the sessions. And one of our key programs post joining is TGI, if we call it Thank God, it's Friday. It's on a month session where the new joiners and leaders, they interact with each other. And the purpose of this session is in form of storytelling, talking about the core values of the organization and telling people who we are and giving them that experience. But we also believe that common systems are important for common culture. And that's where Ginger for us plays a very significant role in orienting our new Nagarrians. So the 30 days Ginger series, which is bite-sized information sent to the new Nagarrians in the organization. It could be topics related to your core values, your processes, your policies, everything that they should know in their period of integration with the organization. But not just that, Ginger also enables us to gather feedback and check on how the experience of these individuals has been throughout their onboarding journey. This brings us to a part where we talk about learning at Nagarro. Nagarro offers a variety of structured and unstructured learning growth plans for Nagarrians. And the way we are structured or our guidelines for learning has been is that we provide people with avenues and opportunities and learning material, but it is the choice and flexibility given to individuals and our colleagues to choose with skill, they want to upgrade themselves in and how they want to chart their own growth path. So they would have avenues available through Nagarro, which is more so a traditional learning platform at Nagarro, which gives you loads of learning catalogs and learning material. It allows you to level up through programs where what people can do is they can upgrade their skills in the areas of their choice, where they want to chart their own growth path. So that's all about the way we run our traditional running platform. But this helps us build the culture of lean agility within the organization. Learn Agility is a learning mindset with the ability to try new things and with quick responsiveness. And this helps us also create Bridge shape personalities within colleagues, Bridge shape skill sets where people have deeper knowledge like vertical pillars of bridge, but layer of horizontal knowledge complementing these verticals of the pillar. The LSD series, we call it: learn, socialize, disrupt. Vaibhav spoke about this in his previous slides. This is an umbrella initiative, which composes of more than half a dozen of different educational and virtual meet-up sessions. And these are mostly led by leaders within the organization and people from all around the globe participate. These are beautiful avenues which are created for folks to learn, but at the same time, socialized, innovate and connect together while the learning happens. And there are Hackathons, there are robo challenge, there are idioms that happen, and there are master classes that senior leaders take for colleagues. There are whole loads of meet-ups that happen and synergies that get generated. This is -- our project is -- this is our global performance management system. Now it has 3 pillars to it. Anytime feedback, C for caring conversation, E for excellence review. This is a tool that helps us build the culture of feedback at Nagarro. And ACE adds to our famous Nagarro culture, the component of friendly, constructive and respectful feedback given to each other. The module A helps give feedback to anybody in the organization at run time, anytime that you feel like, but see is more so structured twice a year kind of twice in a year kind of program and excellence review gives outputs to for important and key decision-making. But all of this globally helps us create that common terminology and common culture of sharing feedback with each other. Now there are programs also which are designed to recognize and reward exceptional performances at Nagarro. We do believe that there is a need of encouraging people, high performers so that they're on track and they're motivated. So some of the programs that we run under our applause segment, which is Cheers board, old is gold, brightest minds. These are more so revenues to recognize the exceptional performances of our people. Nagarro is culturally diverse with offices in more than 33 countries and more than half a dozen of nationalities in senior management. We truly believe that inclusivity at Workplace is totally embedded in line with the way Nagarro's culture is. And we do not want to differentiate our colleagues bases where they belong to bases their differences, but celebrating the differences rather than focusing on them. So there are a lot of programs, and I won't talk about each one of them. A lot of them are already explained in our annual report, programs like glass window, but all of these help us create this diverse culture and inclusive culture within Nagarro colleagues. Now Yammer is truly a reflection of our core value, which is non-hierarchical. This helps us make distance and difference in relevant between people across the globe. People could come, collaborate, learn together, form communities. This is one forum that helps build and connect all of us together. Our program called connections is it's a once-a-week casual, open for all conversation meet up where people around the world could just come talk around any topic that they want to and interact. There are sessions where people jump with music or are they sing or they just want to get a beer and talk to each other about a topic of interest for that group. So this is once a weekly call that happens with colleagues around the world connecting together. Now our aim is to be a great place to work. And for this, we need to build an organization, which is also giving people a sense of purpose, getting them together, creating a fun environment of celebration of camaraderie of joy around. So globally, there are a lot of events that we run through Yammer, through other online platforms where we celebrate live concerts where we do beer days, Halloween nights, family days, we do photography challenges. Anything that would bind people together, creating these experiences for each segment of people and connecting them in ways that we can. But having said that, the concept of hives, which is what we devised as a physical or a virtual place or a space, this allows us to retain the global component, the global flavor of the organization, but at the same time, also bring in local flavors. There are things that keep happening in particular hives like India, in Austria, in U.S. So there are always local flavors that run around the celebrations. There are some of the events in Romania, some parties across the hives. Now the largest regional event of South Asia, which we call Jala was attended by 10,000 ovarian. It was an event that ran through 3 days mornings and evenings mornings, the entire office was converted into a carnival, a lot of stuff happening. And we had people all over South Asia come to this event, but not just that. We introduced another flavor to it for bringing our colleagues from globally through a program that we call global ambassador programs. These are folks who are highly engaged within the organization in terms of interacting with people, attending and doing a lot of meet-ups. And this event was attended then finally over 3 days by 10,000 guardians and was a huge success. But the best part of it is people look at Nagarro, not just a place where they come and go. It's a place where they belong to. It's a family. It's -- the aim is primarily to make Nagarro a part of people's life and not just a company that they work for and build this on to creating a differentiated work experience for every colleague and delivering that Nagarrian experience, which is of paramount importance to us. With that, I would say thank you, and I would like to invite my colleagues Nidhee and Claudiu on to the stage to talk about the robust global processes and systems.

Thank you. Hi, everyone. I'm Claudiu. I'm -- I live in Cluj-Napoca. And I'm in the company since 2002. I have a software engineering background. I cover technical roles in the first part of my career, followed by coverage of project, account management and various leadership responsibilities. Currently, I have talent allocation and planning responsibilities, co-leading this global function in Nagarro. Additional to my work, I am passionate about sports and nature, especially mountains.

Everyone. I'm Nidhee Pathak from Gorgon, India. I've been with Nagarro since 2004. So I complete 19 years next month. I started as a software developer, and I've done many hats, worked in different roles in Nagarro over the years, including technical leadership, account management, presales, central project governance, automation of the talent allocation process. And very recently, since January 2021, I have been involved in scaling up of recruitment for Nagarro globally. Together with Claudiu, we wanted to share about the framework of processes and systems that we have at Nagarro. Now just recap. You heard from our colleagues that Nagarro is an entrepreneurial, agile, global company, which is driven by our system of core values denoted by the word carry. Now to empower our values and culture, but also enable the growth that we envision. We need to have systems in place and processes in place. Let me start by sharing a little bit about why a different kind of process and systems. We are entrepreneurial. We thrive in diversity. We love the uniqueness that each acquisition brings to us, each integration brings to us. But with these diverse styles and different ways of working, what we need is a clear set of processes that we work under clear ways of working that we have and one Nagarro we are working. Now these processes and frameworks are not supposed to be or cannot be rigid detailed bureaucratic processes that cannot adapt. What we require are processes that are flexible, that provide adaptability, easy integration with minimal customization. We are also through and through global. We don't operate under any boundaries or geographies or countries, which means that we need to operate under a single system of processes that is governed by rules, okay? And so we need these processes to have a framework that is an organized system that works with rules that work in the direction of the organization, allows the steering for the organization.

While Nagarro grows, staying agile is of key importance to us. The world around us evolves continuously. And in the IT industry, the speed of change is very high. So we wanted our processes and systems to allow us to quickly adapt to the industry shifts to facilitate fast global steering and easy system replacement within the overall global system landscape whenever the case. Caring is our superpower. It requires appropriate support from our processes and systems in terms of transparency clear view of information, fairness and overall contributing to a great Nagarrian experience. Now in order to achieve all these objectives, our process design took into account some key elements. Loosely coupled, but interconnected processes across different functions enabling global collaboration between different specialized functions like talent allocation and planning, recruitment, people enablement, legal, finance, data protection, IT security so that all aspects are properly covered, including compliance. One global design and set of rules apply to all ensuring fairness and we made our processes configurable so that it is easy to change and adapt and steer fast. We used abstraction for consistency and for handling complexity with a simple approach. For us, Genus is an abstraction we use to express talent demands from projects. Genus, simply put, is a collection of skills. The drivers of existence of Genus are either the volume of demand for a certain combination of skills or a strategic direction. Colleagues across Nagarro, from the project team stood demand fulfillment, to recruitment, they use the concept consistently with no communication gaps and no redundancy on describing what exactly is needed for those positions. Because the drivers of the existence of Genus are directly connected to the business need, it also allows us to very fast adapt to the industry shifts. We can create new Genus and we can deprecate existing genus accordingly.

Not only our processes are designed intelligently, we also support them through the systems that we have in place. We have an extensive library of workflows that are automated by algorithms. Now this ensures that a manual work is reduced and efficiency comes in, of course, Automation also means that the things work in a definitive and predictable way. There's no manual intervention, and that prevents any manipulation of data. Another interesting thing about automation of systems that are interconnected is that the upstream processes become more robust. One process is dependent on data coming in from the other process, and that has to be correct and complete. So process adherence becomes even stronger. At the center of our systems, stands our data lake along with data warehouse and a very special into. Data lake has this vision, we have all data flowing in into the data lake from different systems. And on the data lake, you can actually get customized reports, dashboards, insights, nudges, whatever that you need. This data is transparently readily available to everybody based on their context. Here's -- sorry. Here's the view of the system. What you see here is the data lake is a big enabler for us. We envision this data lake in 2017. And since then, we've brought in more systems, we've replaced systems and all that has been going as we evolve, both in terms of sophistication and scale. Now we've brought in the ERP system, the HR system that have evolved, the allocation system, the global recruitment system and so on. The beauty of this design is actually that none of these systems are connected very closely. They're not even coupled. They all communicate via the lake. And that allows us to plug and play seamlessly, right? So we can actually just move to a different system if that is what is required by our processes, if that is what is required by how we are evolving and bringing any state-of-the-art system without disrupting the rest of the things. So this brings an immense power in terms of us being able to quickly evolve, stay agile as what we always want to be.

We are a global company, and we strongly believe in no borders between people and in the work from anywhere concept. In this context, communicating with our globally distributed colleagues is of paramount importance to us. The vast majority of the communication happens through Ginger, which is our internal intelligent conversation and supporting system, personal nudges and insights, easy access to complex systems, fast and easy access to information and organization steering is all facilitated to Ginger. Just to give you a couple of examples, our colleagues can report their time through Ginger without even needing to log in into the one ERP system. Also, there are several nudges that go through Ginger so that we collect skill information or the input as part of the performance management system. And the role-based access to information is facilitated to ginger KPIs and Power BI dashboard, all being leveraging the data layer. Now the talent allocation and planning is a global function, meaning it operates and it has the responsibility to respond to talent demands across all projects and in connection with colleagues from any country. The main objective is to provide for having the right person, for the right job, in a fair way, in a caring way, making distance irrelevant. Given the global exposure given the very large number of projects we have and the different business domains, diverse opportunities are presented there for Nagarrian. Also, for us, the preferences of our colleagues what excites them while working in a project is very important. So our colleagues can actually express those preferences using the, we call it, what excites you module of the skill system. And then can express it based on criteria like business domains, technology, multinational teams, even colleagues, they prefer to work with. While in between projects, there are trainings organized for the colleagues so that they are better prepared for future work.

So the project talent need fulfillment process at Nagarro is very strong. It crosses through different functions, and it truly uses the global nature of organization. If a project requires talent, they log in their request in the talent allocation portal. The allocation algorithm searches for a suitable and available profile in our system within Nagarro. The suitability actually is mapped using the skills management system. And the data from what excites you, like Claudiu mentioned, trying to keep both the need of the project and also the Nagarrian experience and aspirations and consideration. Now if an internal availability is found, the allocation workflow is initiated. That's -- it just happens, right? The workflow starts. If an availability is not there, the external fulfillment workflow is initiated in which the recruitment is intimated of the need. At Nagarro, we believe in consistency and quality of talent that we bring in. So the scorecards for assessment at hiring at Nagarro are standardized based on the Genus that we have, which we call as our skill profile and the need, which is standardized across Nagarro. So it does not matter where we are hiring. If we have a certain genius to be hired, the standard is consistent irrespective of where and who is interviewing. So that keeps the quality in check. Once a candidate is offered, they're onboarded through the HR system and the allocation workflow picks up and then allocates. So this is how it works. This whole process harnesses the workflows that we have, which are run based on rules that are designed keeping in mind the strategic direction that we are taking, helps us to steer in the way we want to go, helps us to steer how we want to go there.

We are there for our clients to enable their success. So their feedback is of highly importance to us. Our global system framework enables so that on a quarterly basis, we collect their feedback in a structured way, and we use it to improve. While we have seen that the global framework of processes and system helped us internally, it also contributes at the same time to what we call one Nagarro of working. What this also helped us, and Andre mentioned before about the integration, it helped to make the integration easier and successful on one hand. On the other hand, it allows that Energy we have throughout the company in all parts of the company, it is focused in one direction to achieving our common goals. While we have observed that this global framework of processing systems supported as well over the last year and supported Nagarro growth. We are aware we need to further and continuously evolve it so that it further supports Nagarro growth. We see excellence as an attitude of continuously striving to get better. It never stops. It comes with challenges, but challenge challenges bring excitement and growth. Overall, it brings choice into our life in our ambition to reach higher heights.

So all this we do is to provide delight to our customers. And I would like to invite Amit here to help share a case study with you all. Thank you.

Thank you.

Hi. Good morning, everyone. Just to be sure, I'm an Nagarrian. Not a customer yet. So I'm a Nagarrian since 20 years and what a journey it has been. Today, I am part of the travel and logistics vertical at Nagarro, where I'm kind of taking care of different activities within the unit. As part of the unit, we have been working with Lufthansa, which is 1 of our key customers in this unit, and we have been working with them since 2009, supporting them in different digital engineering initiatives across different areas. And today, I would like to show you a video of -- which is recorded with the CEO of Lufthansa Systems, Dr. Thomas Wittman, and he will talk about what it is and how it is to be working with Nagarrian and what are his experience on that side. [Presentation]

Next, I would like to invite Bernd Jurisch. Bernd is heading the flight and navigation solutions for Lufthansa Systems, and we have a very long-standing relationship with them. So he will talk about the product and what we have been doing. Thank you, Bernd.

Thank you very much, Amit. We heard a quote from Peter Drucker today in the morning, a famous one. I would like to start with a quote from Han Solo from the Force Awakens. He's asked by -- I guess, most of you know the movie. He's asked by Ray, the Jedi were real and an answers. I used to wonder about that myself thought it was a bunch of Mumbo Jumbo, a magical power holding together good and evil. The dark side and the light. Crazy thing is, it's true, the force, the Jedi, all of it. It's all true. When I heard the presentation of today in the morning, I can tell you from my experience, it's kind of all true what you heard here. It's really the case. And I don't want to repeat all of this, but I would like to say some words about our joint history, history of Lufthansa Systems and Nagarro. I wanted to tell you some things about our business because this is important. Actually, I'm from Lufthansa Systems, and I'm responsible for an area of the organization called LIDO. LIDO is an abbreviation for Lufthansa integrated flight dispatch. We do products and services for airlines, and I sometimes say what we do is the Google Maps for the pilots. Namely if a pilot wants to fly from A to B, we tell them how to go and where to go and how much fuel to take. And there are 2 major goals in doing this, namely the first one is safety. Safety is utmost goal of aviation industry. Everyone know this. And whenever you enter the plane, you value this very much. And the second one is cost efficiency. It's cost efficiency, it's fuel efficiency. If you know how much money airlines spend for kerosene. You know that this is even saving 1%, 2%, 3% of kerosene. It's a major number for all airlines around the world on the one hand. And of course, more and more important are environmental questions and saving kerosenes means saving CO2. So that's it. We started the business doing LIDO, flight planning, Google Maps for the pilot back in 1995, originally for Lufthansa, but we did this not only for Lufthansa. We did this for airlines all around the world. And in the course of the years, we got a market share of worldwide roughly 25%, more than 50% in Europe, I think, 95% in the Gulf region. So when you came in by aircraft, chance is pretty high that you came in with an aircraft and the pilot used our solutions for route planning, and for Keratin calculation, pretty high chance. As I said before, we started in 1995. In the course of the year, I can say, in the course of the decades, more and more customers joined our family. We heard the word family before today, joined our family, we were growing. And by the way, no customer ever joined our family, LIDO ever went away again. We are very proud of this. And -- but in the course of the year, some things piled up. When you are a bit familiar with IT, you quite often hear about technical debt. I also like the work organization or process debt things of that pile up in the course of the years, and we try to overcome it. And we started projects. Actually, it's already 12 years ago, we tried to start and to run the first project of renewing our software, as I said before, run by airlines all around the world. We're starting to renew it with a, well, good, old waterfall project. After 3 years, I think we had good documentation, but then we stopped. It didn't work out. And it was clear, our product is important for all airlines around the world, but especially for Lufthansa. And so we got the task from the Lufthansa Board to renew, to really start a new project. And it was clear from the very beginning, we couldn't do it ourselves. It's not only because of the topic of manpower. It's because of the topic of know-how because we are excellent aeronautical engineers, very good in this stuff. And we have to be it because of the topic of safety because of the topic of cost efficiency. But I would say, concerning IT knowledge at this point in time, we earned the best ones. And so we were looking for a partner and talk to other companies. We talk to colleagues from Lufthansa, and there were people saying, have you thought about working together with Nagarro. These are cool guys. This might work. And this was the first time we got in contact with Nagarro and talked about, can we work together with running our new project of replacing the old software decades old by a new one. And from the very beginning, it was clear we weren't able to say exactly what we want. This was not possible for us. So we were really looking for somebody working together with us in a partnership, challenging us, yes, we weren't the ones who could say exactly we have to do it this way. It was the other way around. We were looking for somebody who helps us to find out how we want to do things. And this is how we started our specific relationship in I think it's roughly 7 years, 8 years ago or so. This was our LIDO start and then grow. And we work together through all the time. And I would like to emphasize on 2 topics we have seen before. One is non-hierarchical and the other 1 was culture and structure. Nonhierarchical. Once one colleague said to me, the very specific thing about Nagarro is when you have a serious problem, and you call Manas and tell him, please, can you help us here? Later -- 3 years later, you will sit in your office and discuss with you how can we help. And this happened once we were not in a situation where we had really problems how to develop our organization. And this is when we called [manage] Investment. Can you help us here? He said, "Well, of course, I can." And 3 days later, he was sitting in our office, and we started to think about how can we be better there. And the other thing is about structure and culture. Another example, we asked -- or we wanted to invent comprehensive metrics KPI system. And I asked people from Nagarro, what do you have there? And I got a very, very good answer. It was namely, well, we have some very good KPIs, which are important for every single project, and we want every single project to have a look at these KPIs. But we also ask projects to be self responsible and to come up with their own metrics and their own KPIs to measure their success. What's important for these projects. And this is for me, culture and structure and nonhierarchical at the same time. We have been working together and stepwise replacing our old product in the course of the years, we are still doing that. With our first customers or first cutovers with our launch in customer Lufthansa in this case. They are really enthusiastic about what we have jointly developed there. Our collaboration or partnership with Nagarro is going on. And if you ask me, I can't imagine that we ever stop it because what I feel when I think about our customers, namely being not really in a customer provider relationship, but rather in a partnership relationship. We heard this eye level thing before. We heard working on joint goals before. This is what I experienced in everyday cooperation with Nagarro and I can say I am very happy that we, with our product with Lufthansa Systems, are kind of -- well, maybe I can say even a small part of Nagarro family. And I'm proud that Nagarro is also a part of the LIDO family. What I have been talked before -- and what can I say? When I was invited to say some words here, I asked Amit and Manas, what should I say here? What do you want me say? And they said, say whatever you want. This is what I wanted to share with you. If you have any questions, I'm there for the coffee break and for the lunch. Happy to answer all your questions. Thank you very much.

Thank you very much, Bernd. Thank you for your nice words about Nagarro and for sharing your experiences how it is to work with us. My name is Vera. I'm Vila Rajimeldek. I've been a Nagarrian for more than a decade now. And today, I'm co-leading the Worldwide Central Marketing team. Thank you very much for being here. We now have a short coffee break. We invite all of you to join us on site here, outside of the coffee break to have some more conversations. For all our guests who are joining in virtually, let me just tell you that we are not gone. We have 30 minutes break, and we will continue at 11:30 a.m. Frankfurt time with our second part. Thank you so much and see you soon again. Thanks. [Break]

Okay. So welcome, everyone. My name is Vikram Sehgal, and I'm one of the Co-Founders of Nagarro. My entrepreneurial journey started about 30 years ago when I bought a couple of computers and put them in my living room, and that was the start of my stream of Nagarro. In the morning session, you heard a lot of my colleagues talk about Nagarro's unique organization design and the culture and processes and how it makes Nagarro an agile, entrepreneurial and a global company. And my -- sorry. So all this leads to the numbers that we see on the screen. In the -- between 2017 and '23, we expect a CAGR of about 30%. And during the same period, we are looking at EBITDA CAGR of about 35%. We have always set big goals for ourselves. Even when we were a $10 million company in the late 2000s, we had set a goal for being a $1 billion company someday, and we expect to reach that number this year. And along the way, we have created huge value for a number of entrepreneurs for Allgeier and now for our investors. The management team has ownership in the company and is fully motivated to keep creating value, and as a byproduct, keep create wealth for themselves. So once we reach this $1 billion goal, what is our next goal. Vaib have talked in the morning about the 10, 20, 30. So that is like $10 billion in revenue with a 20% EBITDA margin and a 30% year-on-year growth rate. And this is our updated long-term target, and no time lines have been defined around this target. And -- but we are developing all the processes and systems so that someday, we reach this number, and we believe we are setting Nagarro up for long-term success. Now I'll try to translate this 10, 20, 30 goal that Vaibhav was speaking about to a more short-term or near-term goal. And at the time of the last CMD in 2020 before the -- before we were spun off from Allgeier, we had talked or indicated a medium-term adjusted EBITDA target of roughly 15%. And subsequently, we indicated that the adjusted EBITDA would be at least 15%. And compared to our peers, we understand we run a bit lower on the margin side. But since the listing and as the Nagarro brand becomes stronger and is associated with speed and reliability, we expect we should be able to charge the customers a little bit more, which should help us inch the EBITDA margin higher. So our new medium-term target for 2026 and beyond is to achieve a sustainable adjusted EBITDA margin of at least 18%. And our 2023 guidance remains unchanged, although the demand environment is challenging for the entire industry. So how do we drive this new target? Nagarro is a very entrepreneurial organization, and we believe in empowering all of our leaders. Our -- having said that, our team in finance is world-class and our organization structure is available to drive these new targets. The members of the Finance Council, in aggregate, have about 200 years of experience in finance and controlling. And the -- see, this is more, like, what we were discussing in the morning sessions, the automation through Ginger. And we believe we can help our leaders drive operating performance by providing unified systems, unified data platforms, trustworthy data, high-frequency insights and actionable nudges. And our automation system and the operating system, Ginger, we are providing daily or weekly reports to all leaders at the company level, at the service region level, at the GBU, global business unit level and at the sales and marketing unit level. And Ginger also provides all our leaders with personalized insights and nudges. And if you see any deviations, they are highlighted or whenever required, they are escalated within the system. So this systematic rational automation-driven structured approach, which you see across the whole company, is something which has helped us grow to $1 billion in sales and about more than 18,000 people. And we see -- you'll see the same structured approach across all the departments in finance, including FP&A, treasury operations, hedging, transfer pricing, due diligence, deal sourcing and group and country audits and several other departments. So coming to capital allocation. Since we joined Allgeier in 2011, we have made 18 acquisitions. And our deal sourcing and due diligence team works like a machine. We believe in operational integration. So when a company is acquired, we merge it into the Nagarro brand, into the Nagarro systems and culture. M&A, for us, it provides us access to great entrepreneurs and great leaders, and it also provides us access to clients and to regions and to capabilities. So most of the acquisitions we do are not big. They are smaller bolt-on acquisitions, which provide us some strategic value. And we have made 7 acquisitions since the spin-off, including 2 that we announced in quarter 1. We also make share buyback as a -- we see it as a legitimate use of our capital. And in September, October, we made a small EUR 10 million share buybacks. And in April 2023, we have announced a bigger share buyback of up to EUR 30 million, which will be executed starting next week. This brings me to the last topic I wanted to cover, which was transparency. We are always listening carefully to what our investors have to say. We are happy to provide more transparency to investors and analysts where it is. It does not have any operational downside for us. We are committed to presenting relevant information to shareholders in easy and accessible form. So since the listing, we have added new data, which has been presented to investors and analysts. We have started giving constant currency revenue growth, which we understand Nagarro operates in many currencies, and it is -- it gives more insights if you are able to -- provide you with a constant currency revenue growth. We are separating now organic versus non -- inorganic growth, and we are giving revenue and expense by currency. We have also recently added day sales outstanding, DSOs, so that you can -- we are providing this more explicitly to give you nuanced insights into how our receivables are in relation to a fast-growing revenue. And going forward, we intend to provide data for our factoring program every quarter so that investors don't need to second guess. And if you have any other ideas, we'll be happy to hear them. And that's all from my side, and thank you all for supporting us. So next, I would like to hand over to Ashish with the presentation on ESG goals. Unfortunately, he couldn't make it here today. So we have a recorded message from him.

Good day, beautiful people. I am Ashish Agrawal, and I'm here today to talk about Nagarro's ESG efforts. Sorry, I would have loved to be there with you in person, but COVID reached me before I could reach Frankfurt. Sustainability has always been a part of who we are at Nagarro and let me take an example. In one of our largest offices in the world, you will not find single-use plastic anywhere, not in the pantry, not in the laptop boxes, not in the employee welcome kits that we send out whenever a new employee is joining us and not even at the annual festival where more than 10,000 of us come together. And we do not formally mandate sustainable procurement today. So how is it, you may wonder, that our events team, our facilities team, our IT hardware team are all making the same choices? This is driven by the caring culture that you may have already heard about by the speakers who would have spoken before me. Caring extends not only to how we engage with each other, but also to all the decisions each of us makes as a Nagarrian every day. And it's not just about plastic. It is about anything that we put our mind and attention to. So even if I take travel and commute for example, if you don't need to come to office, you don't. If you want to brainstorm together with your global colleagues or clients, you use a Miro board. And if you still must fly, you fly economy. These are some of the choices Nagarrians are making every day, and they are doing it using the caring value compass and by observing and emulating each other. We are on our own continuous learning journey. One of the things we are trying to understand today is how can we be greener with our technology, or how can AI help us do social good. Through such tinkering, we have successfully created technology that can, for example, help unknown colleagues connect with each other over common interests or nudge colleagues to learn new skills relevant for their growth. We have made such technology work wonders within Nagarro and our culture and our employee wellbeing has been phenomenal. And now we are able to take it to our clients and engage the same technology with a world outside of Nagarro. We have learned that if we keep humanity at the center of every decision we make, we will develop sustainable systems, which will outlast us. So while we applied our caring value consistently when making decisions, we did not measure and report quantitatively on the several environmental and social initiatives that we have been involved in. So we may not exactly know how many kilograms of plastic waste we have reduced over the many years we have been operating or how many air miles we may have saved by promoting virtual collaboration. But let me tell you that this is a rapidly changing for us. Today, we are partially measuring our Scope 1 and Scope 2 emissions, such as building energy consumption as well as Scope 3 emissions such as our travel miles. We have begun articulating how we can measure sustainability into our day-to-day operations. We are now starting to align ourselves with international frameworks. Two major areas of immediate intervention that we have identified are communication gaps and data gaps. For example, I mentioned CDP over here. When it comes to CDP, just by closing communication gaps, we were able to move from a D minus to C in one reporting period between 2021 and 2022. We expect to improve further as we expand the reporting boundary in 2023 to provide data on our GHG emissions, which is our greenhouse gas emissions from, not only India, but also China and in Romania. And if I take the science-based targets, so that initiative defines and promotes best practice in emissions reductions and net zero targets in line with the climate science, and many of you may already know about this. We believe the SBTi is one of the most important initiatives of our time and we will share our commitment within this calendar year and will use the SBTi guidelines to align our decarbonization efforts with the Paris agreement. I want to take a moment here to talk about the Nagarro constitution. This is not only a framework that helps all of us at Nagarro in a legally compliant manner. But more importantly, it reflects the value compass that actually defines us. It speaks to all our policies today. And you may find topics such as data privacy and security, business ethics, human rights and working conditions, et cetera, all covered in there in a simple, easy to comprehend banner. And in fact, you may read this document. It's also published on our website. You will not find certain terms verbatim, but you will find them expressed differently. For example, our stand on freedom of association is covered under nondiscriminatory approach towards union affiliation. Every page of the Nagarro constitution is signed by every Nagarrian, but we wonder if that is enough, as we always do. And so we take the help of our in-house digital workplace companion, Ginger, to deliver proactive nudges to all colleagues at regular intervals to help embed the constitution and what is written therein in making our daily decisions. By the way, you may expect to find more information about our sustainable procurement policy, our health and safety policy and environmental policy online later this year. As part of our commitment to transparency and accountability, we have initiated a materiality assessment to identify the most important sustainability topics that are relevant to us and our stakeholders in line with the GRI standard. We have partially completed the engagement exercise with internal stakeholders. We have also conducted desk research to ascertain the materiality from our clients' perspective. And in the coming months, we look forward to engaging with you, all, our investors and our strategic clients to help us add more meaning to our materiality effort. Our nonfinancial statement for reporting period, 2023, will be aligned with the global reporting initiative standard. We remain committed to building a sustainable future for ourselves, our stakeholders and the communities we serve. Thank you so much, ladies and gentlemen, for your time, and I hope you have a wonderful day today and you engage and you meet all the Nagarrians that are there with you in person today. Thank you.

Hello. Hi. My name is Anurag Sahay, and I'm here to talk to you about AI, a very exciting topic, something that gets everybody very excited. It is one of the feelings that comes up amongst many other feelings when we talk about AI. When you're talking about AI, the elephant in the room now is obviously ChatGPT. It's one of those things that has gotten everybody in this world onto a platform and an AI product so quickly. Let me describe briefly some of the background behind ChatGPT and the basis for this excitement. I, by the way, look after the data science and AI business unit at Nagarro, which has grown tremendously over the past few years and all the work that we have been doing in this view. In terms of how we look at a technology like ChatGPT, there are many ways to think about them, right? One of the perspectives around GPT is the work that has been done by several research companies when they were testing GPT. So apparently, GPT 4 technology was ready by August and September of last year, and then they spent about 6 to 7 months solving what is called the alignment problem, which is to look at a technology like GPT and try and understand whether it is aligning with human values. And a lot of our understanding about GPT comes from that research work, which was published in a paper called the Sparks of AGI. Now in that paper, the researchers systematically went through 5 or 6 different qualities of intelligence. This included things like reasoning, planning, thinking abstractly, solving complex problems, having a theory of mind and many other things. And what we found was pretty interesting and sort of an eye-opening situation, right? There were, clearly, very remarkable outcomes that we've seen in some of these tests. The outcomes that GPTs were creating were obviously shattering benchmarks. And these are benchmarks which are called around the state of art, whatever the benchmark was at that point of time, the SOTA standard. So this is really an exciting piece of technology that has suddenly become available to a lot of us at this point. This goes on to bring out this idea that a lot of what is happening around LLM and GPTs have to do with something called emergence. The idea that when you scale models drastically, you start seeing emergent qualities in these models come up. And nobody really knows what these emerging qualities are, but researchers are actively studying them and bringing them out. The other aspect of why AI is so exciting is the speed at which it is growing. So it's not just language models, but you sort of see this behavior in many different areas of AI, whether it's machine vision, whether it's speech processing, it's video generation. It's happening across the board. This is a model that was released by Meta about 2 weeks ago, literally 2 weeks ago. And there's hardly a week that goes by when you don't see something new come in from the AI world. This is something called SAM or a Segment Anything Model. And what it -- what I'm showing you is a picture, which I sort of took from Google. It's a picture of a hair salon with a lot of different objects in that picture. There are shampoo bottles and creams and caps and many different things that are going on. I used the segmentation model to identify every object. And to sort of ask this question, can it even look at all these different perspectives and objects that are present in this image and can it identify all of them? It was a matter of less than even a fraction of a second, it was able to do that. And then you can sort of look at the detail, right? I mean, it's able to even find the cap on the bottle and every pixel is classified correctly. So this quality of AI is really remarkable. There is genuine reason to be excited about a technology like this, which brings me to the third element of excitement, right? Which is around what do we see as the impact of this technology on the economics of our world? This is a paper being published or published by MIT last month. And it sort of measures the impact on economics of AI. There are several numbers there, but the most important number or the most important idea in this paper in my mind was that we haven't seen a technology with this sort of an impact before. And that's remarkable at some level, right? And this is good quality research coming out with detailed data sets, good measurement frameworks to come up with ideas like this. So all said and done, in the end, these are fairly powerful paradigms in tech that are being developed in AI. And it's our feeling that there is hardly going to be any organization, any product or service or any individual who's not going to be touched by a technology like this. So there are genuine reasons to be excited. Now excitement is one thing, but AI is also hard work. Actually, all of tech is really hard work. I mean, there's a lot of it that's going behind the scenes, right? And experience matters. It's -- in our mind, some of the more important things that goes on when we are building tech is how much experience do you have with a technology like this. So at Nagarro, we started very early on in working with AI. And in 2016, when we set this up, very quickly, we started exposing ourselves to several projects, client situations, problems on topics around AI. We learned a lot in those experiences. And as a result of all that, we have, over the last few years, developed good specialization in many topics around AI. These are topics like analytics, big data, data science, IoT, conversational AI and many others. And those last 7 years have been a great learning experience for us in 3 important areas. One is, do we understand this idea called feasibility. And is a project feasible with AI. And that's a very important idea, like, do we get that. The second important thing is, is it valuable. Is that something that will get you ROI in a project. And the third important idea is, is it desirable. And the idea of desirability is that when you have an AI project, is that something that is acceptable to people who are working in those areas. Like, for example, if you go to a doctor and instead of a doctor diagnosing us an AI diagnoses us. That's not a desirable situation. So understanding these 3 ideas, right, are very critical in being able to succeed with AI projects. And that's what we sort of have developed over the last 6 to 7 years of working on a topic like this. So we have excitement, we have experience. But the third important element is that we have to be responsible when it comes to being able to work with our customers. So technology is always exciting. I meet a lot of people who are very excited by AI, and I am so too as well, right? But working with customers is a different deal, right? You have to be responsible. You have to understand their journey, their roadmap. And whether as a company, we are sensitive to the way they would like to approach solving a problem. And this is a very important idea in our mind. So to become a responsible partner, we have to sort of understand a few important strategic things that goes on in an enterprise or in a customer. One important idea is the broad adoption of AI in that company or in that organization. There are several different departments that are working with several different aspects of value creation. We have to be able to work across all of that. So whether we have the capabilities in AI to be able to take some of these topics and work with many different functions in an organization. The second important element is strategic adoption. Not every company is trying to implement as many AI use cases. Some of them are looking at it very strategically. They are looking at 2 or 3 important areas where they can bring AI and make a difference to their value creation. So as a company, are we sensitive to these 2 elements of AI adoption. So this is a task of being responsible, in our minds, and not trying to fit everybody with the same template that we have. The second important idea is that while AI modeling is a very important idea and a lot of conversation and attention is taken over by AI. The engineering work around it is super significant, and it is way bigger than it takes to -- what it takes to implement an AI solution. And proportionately, what I'm trying to show here is the elements of the rest of the ecosystem that has to come around, get an AI solution to work. And it's pretty significant. Again, as an engineering company, we have to be sensitive about the engineering ecosystem of our customers and we are building such a solution. The third important thing is whether the people who are working with these products, are they AI ready at some level. This is another important element. You have to have people with various roles and various responsibilities in an organization to be able to work with solutions like this. It's not a developer-only solution. It requires many different stakeholders to be considered as part of when you're rolling out a solution. So again, these are all important facets or aspects of implementing AI in an organization. The fourth element in all of this is the data that an enterprise really possesses or owns as a part of their own value at some level. One way to think about it is if you think about is if you think about ChatGPT, ChatGPT was trained on what is called the open domain data. Open domain data is data, which is freely and publicly available on the web that you can just get. It hasn't been trained on any of the enterprise data whatsoever, data which is living in what is called closed domains. This is like petrol or fuel or value that an enterprise possesses. And it is fairly significant in quantity, significant in value. As an organization, we see that. We see that an enterprise is sitting, our customers are sitting with really valuable data. And it is our role to really help them identify the critical information that they have, make it all relevant, make it all engineering-wide available and then make it ready for value creation. So this is the fourth responsibility that we sort of have when we are working with our customers. And this is really important from an engineering mindset because we want to bring value across the board when we are working with a customer. Finally, the world of generative AI has unleashed a whole new marketplace of products. This is completely new, and this is now beginning to come out, and we are seeing more and more of this happen. These range from things like copilots, from conversational AI topics, from having virtual assistants and many more. And we are going to see many more of this sort of activity happen. It is our responsibility to bring this latest technology to our customers and make sure that they are succeeding with topics like that. So all of these things together, at some level, is what we -- is how we see ourselves as a strategic partner to our customers who brings AI responsibly to their businesses and helps them create value. And at some level, we are very hopeful about the future. We are looking at the future with great amounts of optimism and hope. And we are hoping that we are able to create a lot of value for our customers. But partnerships are super important. We obviously go into this journey, not by ourselves, but with a whole bunch of people to help support us in this ecosystem. And to help us with that topic, here is Paul to take you further. Thank you.

Thank you. It's exactly good afternoon. Hello, everyone. It's a pleasure for me being here. My name is Paul Haberfellner. As you can probably hear, I'm from Austria, and I'm really sorry about my heavy accent, but I hope it's understandable. I have been with Nagarro more than a decade, worked in multiple roles, always with passion, and I would describe myself as a global citizen. And this was already my elevator pitch about myself, because let us jump into the topic. Today, I want to talk about partnerships and alliances and why we decided to lift it up or lift it to the next level or take the next evolutional step and talking about strategic level. Does this implicit that we never had partners in the past? No, absolutely not. We always worked with partners. We always had our partnerships and strategic alliances. But we changed it a little bit. I'm leading, together with a hand-selected group of Nagarrians, globally, this initiative. And I will tell you later on about the initiative and I will go a little bit more in detail to give you our focus areas and what we are doing. But before I tell you about the initiative. Which, by the way, we started purely to add some growth. And with growth, we do not mean only in an economical sense. As you already know, partner and client centricity is key. It's especially to add value to our clients and to our client engagements. That's exactly our driver and it's the most important one. But I want to start, and I want to tell you a small story. I'm pretty sure you all can remember the beginning of our corona pandemic. Everybody was shocked. Nobody was aware what will show up next. It was hard to get a facial mask because no one had a facial mask at home. All the acronyms, FFP2 was brand new to us and not available. And after the outbreak, you maybe can remember the second wave hit India tremendously hard. It was all day in newsrooms and all day reporting about it. It was crazy. The country was literally running out of oxygen, was running out of oxygen concentrators, no intensive care unit beds were available anymore, even no hospital beds were available. And this was exactly our call. Like a lot of other companies and governments and authorities, everyone globally tried to support India in the second wave and to ship whatever was available on the market. Together with partners and clients, we collected globally hundreds of oxygen concentrators within a week and shipped them to India to relieve the pain of the society as well as from the Nagarrians. And this -- it's a personal note here. It was my proudest moment because most of the people in the room from Nagarro and many, many more were involved to collect the concentrators and ship them to India. I told you, clients, airlines supported us. It was forwarding agents, wholesaler, retailer, name it, carriers everything, customs experts, customs authorities, it was a pretty cool teamwork. And I would like you to take 2 takeaways. Number one, and this is like the green line here. Through all the presentations during the day, it's about caring and the core values, and we discussed it a lot today and presented it a lot. But I want to emphasize, caring is part of our DNA. We are all human beings, and we belong together, and we have to do good things. And then number two, it's more in context with this talk. It's part partnerships, because we have done it with partners. Some of the partners were first-time partners. But if you work towards a common goal, you will rock it, you can do it. This was exactly what happened because we all had the common goal to relieve the pain in India, and we achieved it, altogether within a very short period during lockdowns and curfews and no airplanes in the -- up in the air. This was incredible. And this is exactly how we describe partnerships, how we define and understand is Nagarro, alliances and partnerships. Because stronger together is a pretty old fashion and classical saying. You can also say through thick and thin or, like, my grandma would say, in good times and in bad times. But this is how we define partnerships. But now jumping a little bit more into the story. If we talk, and I have to mention it, if you wait now a slide with hundreds of logos of companies we are partnering with or where we have an alliance, I'm sorry, it won't show up. But if I talk about strategic alliances and partners, we talk about companies like SAP, like Amazon, Atlassian, Microsoft, Google, Salesforce, ServiceNow and many, many, many more. Just I don't know, Anurag, I take you as an example. So my colleague, previous colleague, in the field of AI, we are talking about Databricks and Snowflake. And if I take Jörg, as an example, upcoming speaker, this is a unique partnership with SAP. And we always strive for a global partnership. And that's the reason why we had -- or we started with 3 focus areas, beside the mission of positioning and growth. And I told you, growth is not only -- please don't understand it only in an economical sense. With growth, we understand way more to add value, value for our clients to create new offerings, co-create new offerings, add references, education. There are so many motivations at all if we talk about growth, it's not only figures. It's important, too. We don't discuss this, but it's not the primary motivation. And the focus areas is visibility. It's all about contractual foundation, set up a contractual foundation and establishment. The obvious one is establishment. I don't think I have to talk about establishing an initiative to make it public and tell everybody, hey, now we put it on a strategic level. We want to work with you even closer. Let us understand everything you have. It is all in visibility. Visibility means internally as well as externally. From an external perspective, to be visible with partners or at partners, you have to understand the partner programs. It's easy to believe, okay, I know one program of one partner in every detail. And we all know, in the detail, there is sometimes, sitting, the devil. Because they look similar, but usually, they are different. And they are different in bits and pieces, but you have to understand every single partner program. And I mentioned the companies I told you before, SAPs and Amazons and Microsofts and so and so on. It's always a little bit different, and you have to understand it. That was the reason why we invested a lot of time with this hand-selected group to go into details to understand the existing partner programs and how we can position the second mission, Nagarro in front of their partners and to take the generated value and bring it and deliver it to our clients. And this is our overall mission more or less and contractual foundation. Please believe me, it's sometimes really bureaucratic to go through all the contract. For us, it was necessary to bring all the contracts to one global level. With partner a, it's sometimes easier because they have just one contract, which is immediately value -- which is immediately available globally. But there are contracts where you have to roll out more or less country-by-country or region-by-region or continent-by-continent. And this is what you have to tackle and what you have to know about because you have to be prepared. If you need, for a project in a particular country, a contractual foundation, you should know exactly how to get it and how to drive it. This is it from a 30,000 feet view, and thank you for your attention. I hand over now to my dear colleague, Jörg.

Good afternoon, and thanks for being with us today. Let me introduce myself. I'm Jörg Dietmann. I'm responsible for the global business unit SAP, jointly with my colleague, Michael. And as you can see, there is a separate business unit for SAP. So we do some significant business with SAP, and we have a very strong partnership with SAP. And what can we do as a partner to support SAP, the way it works is that you all know that SAP is transforming into a cloud company, and they do it very well. And what we can do is with a strategy, which is actually SAP cloud-first strategy, to support this growth of SAP and this transformation process. And how do we prove this? I mean we proved this in using the technology by ourselves. So we thought about a very complex implementation of ERP, but we don't want to have a complex ERP implementation. So we went for the SAP public cloud, which is a very simple and standardized solution. And with this, we are our best reference ourselves, so we can sell to the market that we are a cloud partner of SAP. So -- but before I talk a lot about SAP, I ask actually SAP to talk about the partnership and what they expect from us and from the partner landscape. So with this, let me introduce you to Thomas Pickel, who is Vice President of Digital Hub from SAP. And Thomas, thanks very much for coming. I know you came from Munich. And I'm glad we don't have the day tomorrow because there is a train strike.

Yes. Thank you. My wife said, okay, Thomas, you need to come back today because tomorrow is the train strike, so I will travel back to Munich, of course, today. So thank you, Jörg Dietmann, and also Michael in Freiburg, if you are seeing us on the screen, for the kind invitation and of course, to the entire Nagarro team, for this Nagarro experience. I see more -- I'm not an analyst, I see it more as an experience for -- also for me. And perhaps you would have expected, based on the announcements, that there will be a guy from the SAP partner management, somebody responsible for the partners. To be honest, I have been responsible for the partners. And I was also part of the first steps of Nagarro in the cloud, in the ERP cloud, but it's quite a while ago. I have been starting with SAP in '98, so I'm an old SAP-er, but I've been doing different jobs in SAP also internationally. And currently, I'm managing the youngest team in SAP. If you're looking on me, you cannot imagine, but that's a lot of -- those people could be my kids. But it's true, I have the youngest team. And the youngest team is exactly this team of the digital hub. We have been creating a cross-functional team per region. I'm representing the ME region, Middle and Eastern Europe. And in this cross-functional team, we have been bringing all the digital natives, the digital talents together to create a unique customer experience, only digital for our customers. And this has been creating even before the COVID. But of course, during COVID, this has been developed very fast and also boosted very, very fast. And in this team, we have people who are able to create unique experience, which we never saw before. We have the talent for the social media. We have the talent exactly for the area where we are creating the early sales cycles, the demand management with the customers in a way which we have never seen also before in the traditional sales approach. And we are inviting also partners to be part of this experience. This means that this is something SAP not doing for themselves, we are also doing it with our partners. And I think this is one of our approach in SAP that we are also starting initiatives, which we are experimenting our own. And once we have reached the level of experience, we are immediately inviting our partners to be part of this movement, of this experience. And in this case, I've been inviting also Nagarro to be part of this experience because Nagarro gave me a relatively clear commitment about their cloud-first strategy, about their transformation abilities and also about their interest and appetite to work with us in these early sales cycles and also to find new customers outside to also implement our public cloud solutions. And as outlined from Jörg, Nagarro is a partner who has experienced this implementation of a public cloud globally in their own operations, though. This means that they are their own best reference to go out and say, "Look, we know exactly what we are talking about." And therefore, I think we would be also a potential good partner for you for this journey. Let's look a little bit outside-in. If you're going on the SAP homepage. If you look on our official materials, you'll see the -- something about our -- the most important customer imperatives. It's about business transformation, including digital transformation, of course, also becoming an intelligent sustainable enterprise and also the entire cloud adoption. Thirdly, the supply chain resilience and a very important topic, which we also saw today on the screen is the sustainability outcomes. And we have, of course, a lot of partners. We have a lot of specialized partners, but the interesting is if we also find partners who are able to serve this on a broader basis, okay, are able to go to a customer and say, "Look, we can really work with you end-to-end. We are not only specialized on one topic. We can drive the transformation, really, across the entire landscape. You might need to drive your transformation sustainably for the future." And I think, from my perspective, Nagarro is a partner who is able to do this. We have more partners in this kind. But I see in the movement and also in the strong vision and everything what I saw today in terms of the development so far of your company and also the visions, the possibility to take more and more responsibilities also of our line of business portfolio and bring it into offering, which is bringing this end-to-end responsibility across for -- also for our joint customers. Let me summarize a little bit. SAP and partners are one team. This is also the mindset which we are driving in the partner organization but also in the digital hub organization. We are joining our forces, SAP with our partners. And what is also important for someone who is also so long standing in SAP and also has created a lot of joint businesses with the partners, we have created a long-standing trust. And we are also sharing joint values and visions with the partners. We are investing a lot of SAP to work on this trust building and also, on this vision and also, value journey. An important topic is that we are driving innovations together with the partners in the cloud. And also, in digital, this is my task. And we have a huge opportunity together, because SAP, together with the partners is sitting in a pull position to drive the transformations within the companies, exactly to drive this kind of business transformation. There is nobody better equipped like SAP in this kind, also our committed partners to tackle this and to make this a big business. At the same time, we have, through the digital hub and the volume capabilities, the possibility to acquire new customers for SAP, together with our partners, which we never addressed before. We have this S/4HANA public cloud product now in our hand. It's called, "Grow with SAP," in order to show that we are inviting customers who have been just starting as start-ups or smaller companies to grow the entire business and scale them up into being very big enterprises based on a very quick and also small implementation, best practice implementation of S/4HANA Public Cloud, which, in this case, Nagarro is able to do. And then, I think, grow with this, I think, according the growth of the company. SAP and partners are delivering integrated experience across customer journeys from offering to value delivery. This means that we are integrating our partners, and in this case, also, Nagarro, in the entire value chain, so that we are creating both growth for customers and also for the partners and the customer lifetime value. This is something I would like to bring here on the table, not as a representative of a partner organization, but someone who knows SAP, I think, from different angles and especially working now in an area which is strategic for SAP acceleration of digital and the possibility to immediately invite our partners, in this case, this partner to be part of a very strong journey to drive growth and also to drive an experience which we have never had before and then celebrate together. Thank you very much, and thank you for listening.

Thank you, Thomas. Hello, everyone, and a very warm welcome to all of you who joined us virtually and who are here in person. I am Gagan Bakshi. I take care of Investor Relations. I've had the privilege of speaking with many of you in person and also in one-on-one calls over the last couple of years. We will now hold the Q&A session, the most interesting part. Many thanks for sending in the questions. They're streaming in. Where I would request you to please hand over the questions to Andreas. It gives me a lot of pleasure to welcome Andreas Wolf from Warburg Research, who will help moderate this Q&A session. Andreas. And I would also, like, to invite Annette and Manas onto the stage, and we'll set up a couple of chairs. We will get comfortable, and then we'll roll out the questions. Thank you. I'll go old school with the mic because the headset doesn't fit my turban, sorry.

Please ask all the tough questions to Annette.

Basically, you can see that Nagarro organizes its event very lean when I came in. Manas was standing at the reception. And I was asked to moderate this front. I'm not good at cooking, so I'm happy I got the questions. So let's start with the first question, which is for Manas. We kind of had already referenced to this, but what will be the impact of AI on your business in the short term and the medium term? Maybe you could elaborate on that, Manas.

Thanks, Andreas, and thanks for agreeing to read out these questions. And thank you, everyone, for being here. And before I just answer that question, I just want to say that I hope you got a sense of the amazing people we have at Nagarro, and you saw many of them today, but it's only a small fraction, because we have many more senior leaders who could not come or who did not really want to crowd this venue with them. But it's just an amazing set of people, amazing diversity in the topics that they are addressing, in the way they're addressing them, in the content, even in the slides, but it all hangs together. And that's kind of, I think, what makes us special. But coming to your point, Andreas. I think this is one of the biggest questions of this age of our time. And I feel the urge to say I told you so, because I think that at the Capital Markets Day, the first Capital Markets Day. And before that, in the run-up to the spinoff, when people were talking about competition and how things will evolve, we were always saying that AI is the big thing, right? And people would ask AI and blockchain, and I say, blockchain is relatively -- it's like AI is 100x of blockchain, right? And that's what it is now proving to be. And we have been paranoid about this topic. And Anurag said earlier, that we started in 2016 with a COE around this topic, and we were able to rope Anurag in to help build it out. But it turns just that our whole strategy of lean, small teams, because imagine that your job is to lift and shift a huge ton of software and from one language to another language is that's the kind of work you do, and AI comes in, it gets totally disrupted. But if your work is to create value in lean, small teams and across hundreds of customers and thousands of teams, that is much more resilient to disruption. And that has been our idea, right? And similarly, a lot of people asked us the question, why are you in different industries? Why are you in such a broad set of industries? Why don't you specialize? Because we believe that with AI, it's like everybody having super powers. And you can reinvent the world. And a lot of the reinvention will happen at the intersection of different industries. The typical traditional boundaries will not be that important any longer. So in a large number of small and big ways, including our change of our tagline from enterprise agile to thinking breakthroughs and pushing new innovation, training through our organization, trying to have everyone more sensitized that writing code is good. I mean, literally, there's a program that we've done every week or every other week, which says the introduction video says writing code is good, but maybe you won't have a job when AI comes. And now this is, like -- it seems like just a long time ago, but it's happening now. The productivity improvements are a massive change, right? But I think there are 3 or 4 areas where we feel there is a lot of stuff that can be done. So the first is that we are all going to do more with software, right? I mean if you take this particular event, right? How much of this is different from what it would have been 10 years ago? Nothing, maybe the streaming or something, minor. It could be done 20 years ago also, right? So we will see completely different experiences, right? So we will do a lot more with software. We will do better and better stuff with software, because it makes us much stronger. So if we felt that we were not very good at consulting, for example, now we are good at consulting also, right? So we have -- suddenly also, we're human, and we can do a lot of different things. We can bring a lot of ideas to our clients, and that's what we are trying to drive throughout our organizations, client organizations. And I think this friction that exists in human beings, right? I mean the frictions of regulation, the frictions of departments, of companies or ecosystems, they are not going away anytime soon. And to help overcome them. a lot of consulting is required. And I think that's the future for us. So it's a long answer. But in brief, we have been watching this with a sense of preparedness and trying to be the best positioned technology services company to emerge out of it in terms of agility; culture, because culture is a very big part of creative teams; and trying to move away from, "We write code," to, "We are open-minded thinkers," and that will be our big bet for the future.

And maybe, Manas, you could also share your thoughts on the developments in the economy. We see that Accenture is cutting jobs by 19,000, other IT service names are reporting low attrition, which appears to be an indicator of less demand, I would say. What does this say about your business if there's overcapacity in the industry?

It's a very interesting time, right? And you probably know more about it being in the finance side than I do. But for the last 1.5 years now, a year and as quarter now, there's been this sense of dread of impending recession, right? And the more tends to go up and down every few months. I think in Q4 -- at the beginning of Q4, there was this huge stress about whether you would actually have any kind of growth the next year. And then by the time Q4 went by, then there was again some positive sort of feeling. And now again, there's a bit of sense of dread. So it's very difficult to say. I think that we do see that in certain areas, like we mentioned in the last call, like horizontal tech and then a little bit with banking, the kinds of things that were being projected are not coming through or there is a weakness. People still stay on track with their long-term programs. They stay on track with their long-term programs, but it is a challenging environment, right? And it is also impacting us. As Vikram said, we are holding on to our guidance, but it is a difficult environment. And we don't know what next month brings. So I think that historically, we have been -- got off our guidance and we had to keep revising it upwards, upwards, upwards. And so people sometimes think that we will keep doing it this year as well. I think it's a little bit -- it's a bit tricky. It's a tricky time. So we wait and watch. We are holding on to our guidance for now, but we wait and watch.

Okay. Thank you, Manas. Next question is for Annette. Could you please comment on the whistleblower policy of Nagarro?

Sure. Thank you for the question. So we have had a whistleblower channel in place already prior to the spinoff. So -- and this is an internal process. However, we are, of course, monitoring the European guidelines that are coming up and are prepared what is coming next. And we will also work with an external law firm to optimize this process and yes, going forward.

Okay. Have there already been issues that you had to follow?

Very minor issues, but I think not worth being reported.