AMDOCS Q1 2023 CONFERENCE CALL SCRIPT - FINAL

January 31, 2023

5:00 pm

Matthew Smith, Head of Investor Relations

Slide 2: Disclaimer

Thank you, operator. Before we begin, I need to call your attention to our disclaimer statement on slide 2 of the presentation. It notes that some of our comments today may be forward-looking statements and are subject to risks and uncertainties, including as described in Amdocs' SEC filings, and that we will discuss certain financial information that is not prepared in accordance with GAAP. For more information regarding our use of non-GAAP financial measures, including reconciliations of these measures, we refer you to today's earnings release, which will also be furnished with the SEC on Form 6- K.

Slide 3: Today's Speakers

Participating on the call with me today are Shuky Sheffer, President and Chief Executive Officer of Amdocs Management Limited and Tamar Rapaport-Dagim, Chief Financial and Operating Officer.

Slide 4: Earnings Call Agenda

To support today's earnings call we are providing a presentation which can be found on the Investor Relations section of our website, and, as always, a copy of today's prepared remarks will also be posted immediately following the conclusion of this call.

On today's agenda, Shuky will recap our business and financial achievements for the first quarter fiscal 2023 and will update you on the continued progress we have made executing against our strategic growth framework.

Shuky will finish by commenting on our financial outlook for the full fiscal year 2023, after which Tamar will provide additional details on our first quarter financial performance and forward guidance.

And with that, I'll turn it over to Shuky.

Slide 5: Shuky Sheffer

Shuky Sheffer, Chief Executive Officer

Thanks, Matt, and good afternoon to everyone joining us on the call today.

Slide 6: Strong Start to Fiscal Year 2023

Starting on slide 6, I am pleased to report strong first quarter results, sincere thanks for which go to our incredible people around the world who everyday work to support our

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customers' multi-year journey toward digital modernization, 5G monetization, cloud migration, and network automation.

Slide 7: Positioned to deliver another year of consistent and profitable growth in fiscal 2023

  • Q1 revenue was a record $1.19 billion, up 9.5% year-over-year in constant currency and above the midpoint of guidance
  • Twelve-monthbacklog of $4.09 billion was also a record-high, up approximately 7% from a year ago on continued sales momentum, and
  • We delivered non-GAAP diluted earnings per share of $1.45 which was above the guidance range, primarily due to better profitability on a higher revenue base and a lower-than-expectednon-GAAP effective tax rate

Overall, our financial year is off to a strong start, positioning Amdocs to deliver consistent and profitable growth in fiscal 2023 within a global macroeconomic backdrop that remains challenging and uncertain.

Slide 8: FY2023 Operational Highlights

To provide context to our financial performance, let me review our quarterly operating achievements, as shown on slide 8.

To begin, we saw continued sales momentum and further cultivated strong value- driven partnerships with new and existing customers during Q1.

Notably, we deepened our long-standing relationships with customers like:

  • AT&T, T-Mobile, Verizon, Comcast, Dish and Claro Brazil in the Americas
  • Vodafone and Three Group in Europe,
  • Globe in the Philippines, and
  • a Tier 1 operator in Malaysia

Additionally, we further diversified Amdocs' customer base by winning several new logos, including Colt Technology Services in the UK and Telefónica Móviles El Salvador in Latin America where Amdocs' online charging system will replace the existing vendor.

Amdocs Vubiquity has also continued to execute well on its strategy of servicing leading studios and Direct to Consumer platforms, winning several new projects and extensions over the past year including Disney, Warner Brothers, Discovery, MGM, and Paramount.

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Turning to execution, Q1 was another great quarter which included major project milestone deliveries at AT&T, T-Mobile,Verizon, Bell Canada, XL, and many others.

  • At CLARO Brazil we expanded our Policy platforms to allow for new use cases such as Voice over LTE and 5G standalone, in addition to which I am happy to share that nearly all the Brazilian postpaid customers CLARO acquired from Oi have already been successfully migrated to our monetization platform.
  • I believe Amdocs' high rate of successful project execution is a direct outcome of our highly skilled workforce, unique global delivery model, methodologies, tools and automation, and our regional site strategy which is constantly refined as we optimize our global talent pool.
  • I'd also like to highlight the competency of our managed services business, which this quarter delivered flawless execution for customers over the peak retail volume periods of Black Friday and the holiday season.

In addition to sales and execution, we maintained a high level of R&D investment during Q1 and further extended our technology and product leadership.

  • The most advanced version of the Amdocs Customer Experience Suite and service offering will be presented at the fast-approaching Mobile World Congress, where we are planning a significant presence and meetings with many customers and partners. We will also be showcasing innovative solutions and exciting use cases, including those resulting from our collaborations with service providers, enterprises, and partners at our Dallas 5G Experience Lab.
  • To complement our growth pillars, Amdocs remains committed to disciplined M&A as and when opportunities arise. Amdocs is constantly evaluating a broad pipeline of exciting M&A opportunities, and while the previously announced acquisition of MYCOM OSI did not move forward as planned, we continue to look for suitable deals that can accelerate our growth strategies.

Slide 9: Striving for Excellence in Amdocs' Approach to CSR & ESG

Before moving on, I want to proudly recognize our recent achievements in the ESG domain, as shown on slide 9.

  • As previously announced, Amdocs was included in the S&PDow Jones Sustainability Indexfor North America for the fourth consecutive year.
  • Additionally, we are today pleased to announce that Amdocs has been included as a member of the 2023 Bloomberg Gender-EqualityIndex, which we believe is a testament to Amdocs' progress towards achieving the various diversity goals to which we are committed.

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Our commitment to sustainability and corporate responsibility has also earned several other recognitions this quarter.

    • Amdocs India was recognized as one of the 'Most Preferred Workplaces in IT and Information Technology Enabled Services for 2022 - 23
    • We improved our environmental disclosure rating at CDP from B to A-, and
    • Our new state-of-the-art campus in Israel has been LEED Goldcertified for its sustainable design and operations
  • Prestigious ESG recognitions such as these reflect Amdocs' desire to make a positive impact on the environment and the communities in which we operate, and we'd like to thank our global base of talented and committed employees for their essential part in making achievements like these possible.

Slide 10: Progress in Strategic Domains

Now, let me provide a progress update in respect to our multi-pillar growth strategy, the aim of which is to bring market-leading innovation to help service providers:

  • Accelerate migration to the cloud
  • Create seamless digital experiences by transforming IT operations
  • Launch and monetize new 5G services, and
  • Deliver dynamic connected experiences with real-time, automated networks

Starting on slide 10, we see a growing number of service providers embarking on multi-year cloud migration journeys that Amdocs is supporting with our end-to-end suite of cloud platforms and services.

  • I am happy to report that T-Mobile selected Amdocs' cloud-hosted Intelligent Networking Suite, a next generation platform to enable provisioning of advanced 5G services, and
  • Vodafone Ireland recently chose Amdocs to modernize and migrateits Amdocs data and application workloads from on-premises to the cloud to enable greater flexibility and capacity, an improved customer experience and rapid adoption of the latest 5G innovations.
  • Additionally, a leading Tier 1 operator in Southeast Asia has selected Amdocs to smartly migrate its existing Amdocs' BSS suite to a modern cloud infrastructure at two large regional affiliates, thereby enabling improved security and operability while defining the long-term journey towards a full cloud native environment.

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Moving to Digital Transformation on slide 11, more service providers are recognizing the power of data to drive personalized customer experiences.

  • Amdocs is working with Comcast on several new projects, including upgrading to the new Amdocs Data Hub for Mobile and B2B on the cloud.
  • Under a multi-year managed services engagement, Three UK selected Amdocs to migrate to a modern, cloud-based data architecture to serve its customers timely recommendations based on data-driven decision making.
  • Finally, Amdocs is providing AI-drivendata insights to Globe Telecom, a leading operator in the Philippines with nearly 88 million mobile subscribers. Implemented on the public cloud, and delivered under a multi-year managed services agreement, the service will empower Globe to drive business growth, time-to-market agility, and operational efficiencies.

Turning to slide 12 and 5G monetization, fixed wireless access is rapidly emerging as one of 5G's first meaningful success stories and Amdocs is already playing an important part.

  • For instance, a leading Tier 1 operator in North America recently selected
    Amdocs' Home Operating System which utilizes AI technology to simplify internet and device management, automate customer support and introduce enhanced security features for fixed wireless broadband customers.

More broadly, Amdocs is helping service providers to modernize and build agility in the 5G era by enabling the rapid launch and monetization of new 5G products.

  • Amdocs was recently commissioned by CTM, a leading telecom operator in Macau, to modify its online charging and billing infrastructure to support 5G standards
  • We recently extended our managed services relationship with Vodafone Romania, which selected Amdocs to modernize its revenue management systems with a modular platform, enabling it to launch and monetize new products and services at speed.

Additionally:

  • Globe Telecom recently selected Amdocs' next generation charging platform to enable the monetization of new standalone 5G services to consumers and businesses while reducing operating costs, and

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Amdocs Ltd. published this content on 31 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2023 23:17:08 UTC.