Luxoft Holding Investor Presentation — November 2018

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Luxoft Holding, Inc| Q2 FY2019 Call | November 15, 2018

Dmitry Loschinin, CEO & President

Evgeny Fetisov, CFOwww. luxoft .com

Non -GAAP Financial Measures

To supplement our financial results presented in accordance with US GAAP, this presentation includes the

following measures defined by the Securities and Exchange Commission as non -GAAP financial measures:

earnings before interest, tax, depreciation and amortization (EBITDA); adjusted EBITDA; non -GAAP net

income; non -GAAP diluted Earnings per share (EPS) and Free Cash Flow (FCF). EBITDA is calculated as earnings

before interest, tax, depreciation and amortization, where interest includes unwinding of the discount rate

for contingent liabilities. Prior year amounts were amended accordingly. Non -GAAP net income and non -

GAAP EPS exclude stock -based compensation expense, amortization of fair value adjustments to intangible

assets and impairment thereof and other acquisitions related costs that may include changes in the fair value

of contingent consideration liabilities. Non -GAAP diluted EPS are calculated as non -GAAP net income divided

by weighted average number of diluted shares. Free Cash Flow is calculated as operating cash flow less

capital expenditure which consists of purchases of property, plant and equipment and intangible assets as

defined in the cash flow statement.

We adjust our non -GAAP financial measures to exclude stock based compensation, because it is a non -cash

expense. We also adjust our non -GAAP financial measures to exclude the change in fair value of contingent

consideration, because we believe these expenses are not indicative of what we consider to be normal

course of operations. Our non -GAAP financial measures are adjusted to exclude amortization of purchased

intangible assets in order to allow management and investors to evaluate our results from operating activities

as if these assets have been developed internally rather than acquired in a business combination. Finally, we

adjust our non -GAAP financial measures to exclude acquisition -related costs, which comprise payments to

consulting firms as well as fees paid upon successful completion of acquisition; as well as certain incentive

payments for members of management of the acquired companies as provided for in the acquisition

agreements. These payments are based on performance of the acquired businesses and are classified as part

of management compensation rather than part of purchase consideration. These costs vary with the size and

complexity of each acquisition and are generally inconsistent in amount and frequency, and therefore, we