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ESG Update

Sep 7, 2023

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Hello, and welcome everyone to our second ESG webinar. We are here to talk about and highlight our recently published, actually, as recent as last week, ESG and CSR report for the year 2020 to 2023. I'm Tamar Rapaport-Dagim. I'm CFO and COO of Amdocs, and I will be joined by a few of my colleagues to cover those highlights. We are very proud to be a key enabler of the communication and media industry, and this is an industry, as all of you know, that is the backbone of society, making sure we all can connect and communicate with each other, touching billions of people around the world with our systems and capabilities that we provide to service providers around the world.

As you will hear later from Anthony about our technology, our products, our offering, and how we are making them sustainable for providing this kind of opportunity, as well as from my colleague, Idit, who will talk about the different aspects of our employees and our communities involvement. We are very active all around, making sure that the pledge you see in front of yourself is something that we take daily into action in everything we do, and making sure that we are part of an ecosystem of partners, of employees, of customers, and new shareholders that leave only footprints of amazing around the world. With that, I want to move to you, Matt, to take it forward.

Matthew Smith
Head of Investor Relations, Amdocs

Tamar, thank you for setting the stage for us today, and hi, everyone. I'm Matt Smith, Head of IR for Amdocs. Before we get going, please note that some of our comments today may be forward-looking statements and could include certain estimates and assumptions which are subject to risks and uncertainties as described in Amdocs's filings. Just to introduce our speakers in a little more depth, you've already met Tamar, of course, our joint COO and CFO. Today, we'll also hear from Anthony Goonetilleke, our Group President of Technology, also Head of Strategy, and Idit Duvdevany Aronsohn, Amdocs's Head of Corporate Responsibility, Inclusion, and Wellbeing. Just in terms of the agenda, Tamar will provide a progress update on Amdocs's ESG journey over the past year, and she'll also cover some important developments in the environment and climate strategy.

Then Anthony will address the ways in which Amdocs is driving sustainability and innovation with our portfolio. After which, Idit will discuss Amdocs's commitment to people and society. And we'll finish with a quick summary and a short Q&A session. Questions can be submitted anonymously using the chat function in your browser. With that, Tamar, I'm gonna hand it back to you, and we can get into it.

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Thanks, Matt. So, for those of you less familiar with who we are, I want to talk about Amdocs at a glance in terms of what do we do. We are a leading provider in mission-critical software and services that enables the communications and media companies to actually provide their services, their value to individuals, to businesses around the world, and provide that with an amazing customer experience. And we do that through digitizing and automating their business processes and operations, accelerating the journey of the industry to the cloud, providing them the tools and the ability to monetize different opportunities, such as the major 5G rollout that is happening all over the world. And to ensure all of that through seamless connectivity with the network automation capabilities that we are providing. And we are doing that with hundreds of customers.

Many of them are very familiar names to all of you, people who make sure that the world is connected. Guys like AT&T and Comcast, Vodafone, Singtel, Telefónica, América Móvil, and many other big names out there in the world. We're active in 90 countries, with a people base of 30,000 employees. So you can understand the reach out that we have to different communities around the world and the impact that we can bring through that. We're a public company for over 20 years, since 1998, traded in Nasdaq. So, we have also the capacity and the ability to think about those aspects as a company that has been in existence for some years now.

I can say clearly that what we are going to share today is definitely part of the DNA of the company in many aspects of what we do. So when we think about the role we play in connecting the world and connecting societies all over the world, and creating the billions of people, the ability to talk to each other, to educate themselves, entertain, just be connected with their loved ones, we obviously want to see how we are weaving in the focus areas we wanna have as part of our ESG and CSR framework. And that would be championing ethical and responsible conduct, making sure that we're improving the lives of the people in the different communities. And again, we're talking about billions of people that are influenced with what we do.

Fostering diversity, equity, and inclusion, inbound and outbound. Prioritizing our employees' well-being and their ability to develop their careers and personal capabilities. Protecting the environment and making sure that the climate change is being handled in the best way, and promoting sustainability in the offering we bring through technology, through services we provide to the world. When we are thinking about our ESG journey and how it evolves, we are looking all the time how to govern that and how to take that accountability to something that is sustainable in providing the maximum impact. Starting with the board of directors and their great focus and passion to the topic. Obviously, the executive management, the CEO Shuky Sheffer, and executive management, and how we are putting our focus into this topic.

And then ESG strategy core teams that are dealing with the different topics we are going to cover, as well as more functional corporate functions or other functions within the business units and technology units that are taking forward the things that we are pushing as the focus areas. All of that augmented with a lot of champions we have in the field, which I think is extremely important as we want to make sure that our employees are really participating and really championing those different things that we are doing. On top of this, I would say the top-down approach of making sure the governance and monitoring is there. Obviously, we want to make sure we're involving as many employees as possible to move forward and push forward those initiatives.

I just want to give you a glimpse of one example through cybersecurity and privacy, of how we think about those things. For example, from structural board, board of directors' point of view, obviously, there's a lot of very diligent processes done and engagement of the board in these topics, and periodical sessions that are happening and evaluations of this topic. We have a very seasoned leader, a Chief Information Security Officer, who reports directly to me and leads all of these activities across the company with his team, with his experts. We have a full-time data protection officer that works around the privacy angle, 24 by 7 staffed cybersecurity center, obviously, to handle any breach, any incident that may come along and prioritize according to severity.

The communication aspects of how to deal with these kind of events, validating that what we think is happening is actually happening through different audits, and different validation points that are including drills and things like that. And continuously making sure that everybody is aware and learning about those topics, because eventually, with all the processes, tools, and governance that we put in place, the human aspect, people, and their awareness of this topic is extremely important. Is this really like a glimpse of many, many activities that are running behind those, a few examples that I just shared? Again, just on cyber and privacy, and of course, there are many, many other topics we can talk about.

When we are thinking about the ecosystem we live in, obviously, we are not in a vacuum, and we have very important stakeholders to consider as we're thinking about the ESG and CSR aspects that we are promoting. Starting with our employees, which I want to spend a bit more about, the customers, you, the shareholders, the partners and supply chain, and the communities we live in, and of course, there are more, regulators, et cetera. So just doing a bit of a deep dive on employees to give you, how we are assessing, effectiveness around the organizational health. We are using one of the leading models, coming from McKinsey, to do an organizational health check, that checks both the effectiveness of our human resources aspect of the business, as well as the managerial practices that we have in place.

And we run this very thorough process already twice. Recent one was in 2022, and we could see continuous improvement, and you can see from this chart that we are in the top decile comparing to benchmark of hundreds of companies. Both are, if we compare to the overall global peer group that has been provided, as well as more specifically into tech and technology, media and telecom, we are appearing in this top 10%. Okay, so we can be obviously very proud about that and happy with that, but it's much more granular than just an overall assessment of the health score and the engagement score. It goes into different aspects and different dimensions, and we focus accordingly on the things we want to improve.

For example, a couple of years ago, when we did it for the first time, we saw that the understanding of direction and purpose is extremely important to our employees, and there needed to be more clarity around that, more connection of the activities to what is the job to be done, what is the purpose behind that, and we've invested a lot in that aspect. We definitely see the improvement two years later, as we said that again. And we do a lot of this analysis and taking it to an executive management discussions and different kind of programs that are continuously improving around those kind of topics.

I want to touch now about the other very important stakeholders, which are customers, and to us, involving in the dialogue with customers, in everything we do with customers, the sustainability aspect is extremely important. So we do that in many ways, of course, and Anthony will cover more later, the technology and the offering we bring to the market and to our customers. Idit will touch about all kind of examples, of joint programs we do with them.

But I, I just want to use this example as I think it emphasize how much we see that as an important part about engagement with customers, that in MWC this year, which is the largest conference of the industry, we took literally a center stage to this topic by having an immersive, huge wall that continuously talked about the activities that we are doing around the ESG and the CSR, which created great dialogue with customers to engage even further with them, enjoy rethinking how we can push forward those kinds of activities. And just as an anecdote, every visitor into our booth also created, in collaboration with unconnected.org, a contribution of internet connectivity for girls in India and their families that needed that kind of help to be digitally included.

So that was a win-win from our point of view. The feedback by the way from customers for this kind of initiative has been excellent, and we've created wonderful discussions and additional collaborations with customers around this topic. Going back to our stakeholders, I also want to touch on the shareholders. As we've been meeting over the years with many of you discussing ESG, thinking about this topic, understanding how you see that, what's important to you in thinking about Amdocs and how we should be actually focusing on ESG. We heard comments around sustainability of product and innovation we can bring to the market, privacy and cyber, climate, diversity, equity, and inclusion, and talent attraction, engagement.

I think you will see as we move to talk about the materiality assessment that we are doing, that this topic is right in the center of how we are thinking about those things. And definitely the inputs we got from those dialogues have been very valuable. So thank you to anyone that is listening right now that has been part of these dialogues. So as we are thinking about the materiality assessment, you know, trying to focus ourselves, how do we reinforce the commitment to sustainable growth and responsible corporate conduct in a way that is more targeted in terms of what are the top issues that are most relevant to us?

We narrowed down to 20 topics, of which we even highlighted 9, that are here, appearing in color in the list, that are the ones we want to focus on more in terms of how we are thinking about strategy around ESG. Definitely something that we are thinking about a lot. It doesn't matter that you know, there are things that we do all day long. I'll give you an example. Like customer experience and satisfaction, that's our bread and butter. We're the customer experience company, so don't get alarmed that in fact, it's not highlighted. That's like our day-to-day focus, so we didn't feel we need to highlight it even more.

But when we're thinking about climate change and how we as a company can influence the environment, we wanted to elevate that and make focus, intentional focus on that in a higher way, as I will show in a minute. Our recently published report is focusing on a variety of topics that covering what we think about in terms of ESG and CSR, our approach to sustainability, the social aspects of people, the communities we're involved in, all the environment and climate aspects, how we create sustainable value, governance, and many, many other topics, including very detailed annexes with a lot of information that is maybe interesting to you to see. So we're trying to really bring there a lot of things that we thought you care about and that people that are reading these kind of reports are showing interest in.

And bringing this kind of disclosure and impact-driven approach to show the transparency and show the story that we are very proud of. Just, interestingly, you know, this picture that you see on the cover page, that's the International Yoga Day. We use that day to do, at the same time, all over the world, in all of our sites, yoga exercises. That, of course, was great for the well-being of our employees, but this specific picture is actually from the recently completed campus in Israel, that is also LEED Gold certified, and we'll talk about that as part of the environmental commentary. So we were actually enjoying both the garden and the green capabilities that we have in this wonderful garden within the new campus, as well as the International Yoga Day.

Thinking about our global and local ESG recognition, I would say first and most of all, we do it because it's the right thing to do, not because we are looking for recognition. And we are doing many, many, many activities. Getting this kind of recognition, I think, is good to give ourselves some kind of an assessment, to understand where we are, what we can improve, and also these dialogues and these kind of feedbacks are really helping us understand how others are thinking about it, and what potentially we can do to generate this kind of continuous improvement, moving along. I can say very proudly that we are already getting very strong scores in different assessment, whether it's a Dow Jones Sustainability Index, whether it's a CDP rating, Sustainalytics, et cetera.

And also in the local level, getting external recognition by many aspects of assessments, whether it's a great place to work at, that we're getting in many of the countries we work in, like, Brazil and Philippines and India and Mexico, and Cyprus, etc. Whether it's around being the best workplace for women in India in 2023, which has been recognized by Economic Times. So we continue to see and assess ourselves through the glasses, I would say, the viewpoint of external bodies, to see where we stand and promote this topic even further. Thinking about the environmental and climate aspect, this is an area that is getting a lot of focus from us, and we are looking forward to see how we are, like, pushing the envelope even farther.

But just to frame it, when we are looking on our climate action and how we can impact the environment, we are looking at it for three different dimensions. One is how we design offering that promotes sustainability, and Anthony will expand about that. Then it's about putting people first and promoting for the communities we're involved in, not just our own employees, different kinds of initiatives that put the environmental topic at a very important place. And then, obviously, our operations, our internal operations, and how we are doing different kind of activities in a different way, whether it's increasing the share of renewable energy, how do we do data center optimization, reducing travel, and many, many other activities that are helping us actually get better in terms of the environmental footprint we are leaving.

I mentioned before already, the August new Israeli campus, that was opened up, with many aspects and very detailed design around how we are making this very environmentally friendly design. And I'm proud to say that as of January 2024, all of the campus will be fully powered by renewable energy, which is definitely a big step up for us, so we're very happy about that. I want to share with you very quickly a glimpse through a video clip of our activities. This video was actually prepared for our a day of the global environmental day, that we wanted to leverage to put the awareness internally in the company around the environment and also outbound vis-à-vis potential talent that share the same value with us. So let's go ahead and watch the video.

Speaker 5

Amdocs made a pledge to keep our planet amazing for future generations. When we set our goal of going green, we made it clear actions would speak louder than words. We're traveling more mindfully, flying less, and planning to have 80% of our vehicle fleet made up of hybrid, plug-in, and electric cars by 2025. We're reducing our electricity consumption and adding renewable energy sources to power our operations. We're cutting down on paper so we can cut down less trees and recycle what we do use. And let's not forget, the cloud-based software and services we deliver are helping millions of global consumers reduce their carbon footprint, too. Thanks to all our efforts, we've reduced a whopping 14,346 tons of direct CO2 emissions, equal to taking 3,192 cars off the road for one year.

This hasn't gone unnoticed. We've been recognized by environmental institutions and listed on Dow Jones Sustainability Index for four years running. Guess what? We didn't stop there. From cleaning up beaches to planting trees and nurturing local ecosystems, we're putting people and environment first by building green teams and launching community-based initiatives. Thanks to our actions, we're ensuring an amazing future for all of us. Amdocs is going green. Come join us.

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Day to day, many of these initiatives that were shared through this video clip are actually coming through ideas of our own employees, and then they are the champions that help us push it forward, so it's wonderful. So forward looking, our new climate action commitment, fresh from the oven. We are committed on top of the science-based targets that we already had for 2024. We are coming out now with a long-term commitment for both carbon neutral by 2024 of our business operations in Scope 1 and 2, and that by 2040, we will also have all of our operations powered with 100% renewable energy. And as a company that is making those long-term targets, obviously, we want to have a very concrete plan of how we're getting there.

So the way we are thinking about it is starting with about 20% carbon neutrality pre this kind of commitment. Now we're going to reach over 50% already with some activities that we have secured, including the new decision to have the renewable energy transformation in the Amdocs Pack in Israel. Later on, we'll reach over 70%, including several actions. One of the important ones there is to have direct purchase in India of this kind of capabilities, and then cover many sites that we have around the world and gradually expanding the renewable electricity by 2040 to 100%. So very excited about this new program. Getting a lot of attention and I would say excitement also internally in the company.

By that, I want to move to you, Anthony, to talk about our portfolio sustainability and innovation and how we are taking it from that aspect.

Anthony Goonetilleke
Group President of Technology and Head of Strategy, Amdocs

Thank you, Tamar. It definitely is an exciting journey, and good morning, good afternoon, good evening from wherever you are joining. It is my pleasure to talk to you today and share a little bit about our exciting journey that we've had since the last time we updated you. Definitely, if you think about it, today, our sustainability effort is more important than it has been ever before. If you think of the world being connected, if you think of technology being driven to all parts and corners of the earth... You know, there was a statistics I recently saw that... There are close to 6.5 billion people around the world with a smartphone. That's almost every person on Earth has some type of phone device.

This essentially means that there is technology needed, there is power needed, there is carbon emissions. So we are just excited to, you know, build software that powers the world, but to do it in a way that drives sustainability, that drives inclusivity, that brings together and tries to close the digital divide, and not have two different worlds that we're building. And so, in the next several minutes, I'd like to share some of the things that we are doing. Definitely, if you look at our customers, our customers in a post-COVID world continue to connect the world. Broadband is reaching levels that has never been reached before.

The data saturation through technologies such as 5G, we're using more data than we ever used as a society before, whether it be streaming video, playing games online, shopping, e-commerce, all sorts of technologies are all powered through the systems that we put together and the systems that we connect. And so, you know, as we kind of look at our portfolio and think of it, we bring sustainability, we start right at the beginning. It's right at the heart. So how do we lower our footprint? How do we bring emissions down? These are not, these are not an afterthought.

This is not something that we build a platform, build a module or a service and say, "Oh, now what do we do about it?" Because we also know that our customers expect that we need to, I would say, inversely reduce the amount of energy we're consuming, even though the data consumption is going in the opposite direction. So both from kind of reducing pollution, providing accessibility and inclusiveness to make sure the technology is available to the broader spectrum of the population that we can do, and like I mentioned before, also around the digital divide. So a few examples that I would like to share with you is, I would say one of the primary focuses is to constantly keep reducing our footprint.

So as you can see here, you know, we work with a provider, where our latest suite basically allowed them to reduce close to 20% in reduction, in terms of how much energy and operating costs is being used, throughout the platform. Now, if you think about this, this is almost directly opposite to the amount of data that's being used, to the amount of services that's being provided, because this is growing, while we're still reducing the footprint. And so we're very, very conscious that this is a challenging job, but it's very, very needed. If you take technologies such as eSIM, for example, we are now reducing...

taking away physical SIM cards, replacing it with a virtual SIM card, and, you know, just this little thing reduces around 45%-46% less CO2 through its entire product life cycle, if you think of creating these, manufacturing these, shipping these out, for example. And, and also with our journey to the cloud, so Tomas spoke about our efforts of moving our customers or helping them build a hybrid cloud strategy. If you think about how we operated in the past, you know, every one of our customers would have their own data centers, which would mean that because they're a mission-critical service, they would need to have high availability across the country. They would have to have geographical redundancy.

They would have to have capacity to cater to events such as Christmas or Black Friday, which are huge sales days, for example, in the US. And so this requires an immense amount of hardware. And so today we can come with a cloud strategy and say, "Hey, you can have a hybrid cloud strategy. We can normalize your hardware footprint and help you reduce." And so, one of our customers in Asia Pacific, we were able to reduce their footprint by around 30%, for example, just by helping them move to a hybrid cloud strategy. If we just continue on, one thing that we are also very, very conscious of is fostering accessibility. So if you think about our customers and think about our systems, you know, at the end of the day, our systems really just need to work for everyone.

And so we are aligning to standards such as WCAG to make sure that, you know, if you're vision impaired, for example, and if you need to use different devices, you still have the ability to be able to use the technology, and it's not something that separates you as an individual. One of the other things that we're doing, we're very, very honored to partner with Herflix. You know, we believe that representation matters. So being able to kind of champion an initiative like this, where it's completely female-led narratives in terms of content and movies being put out on a streaming service, and our Vubiquity, Amdocs Vubiquity platform, was there to kind of support them and help them launch the service.

And we think that initiatives like this are very important, not just from a company strategy perspective, but I think also for all of our employees, overall. As we kind of continue on, one of the things that we also believe that we have a big part to play is closing what we call the Digital Divide. You know, today we are touching, in some shape or form, over 2.5 billion consumers on a daily basis. So customer journeys around the world, in some shape or form, is touching an Amdocs platform. And so we're very conscious that, you know, we are helping society move forward as much as possible and not creating kind of two separate worlds.

So whenever there is a project like this, I know all of our folks really jump on board to make sure that it's delivered in a way that exceeds expectations. So one of the examples here is something we did in Brazil for rural communities, rolling out access, rolling out, for example, broadband connectivity in areas that would have never seen broadband connectivity. You know, if you think about the services that you access on a day-to-day basis, this is not just streaming movies today, right? It's accessing council information, it's renewing car registrations. All these types of services that we take for granted are basically online, you know. Going and setting up an appointment, sometimes the only way you can do it is online.

So we believe that, you know, closing this Digital Divide is more important than ever. Also looking at things such as, the unbanked population around the world, for example. So we have, a financial services arm, really focuses on this area to bring platforms to be able to kind of fill in that gap from a technology perspective, because we know that, you know, at the end of the day, this is a way that you can move a segment of the population to a different place from where they are. And really, banking is a core capability that most of us take for granted. As we kinda move on, you know, I would say that Generative AI is probably something that, you cannot escape. No matter where you go, whenever any company is presenting, we're all talking about Generative AI.

And of course, we're very excited about it, and we're doing many things around it. But there are also some aspects that we really need to take a step back and think about, right? How is Generative AI deployed in a non-biased way? At the end of the day, we are training systems with large amounts of data, so any type of even a small-scale human bias or a subconscious bias can very easily, unintentionally, be exaggerated throughout technology. How do we provide things like observability? I'm sure many of you have used kind of all different types of GPT services around the place. Where is this data coming from? What is the source of this data? This is very, very important.

At the end of the day, we work with customers that focus on providing a mission-critical service, and so providing a non-biased service with observability and guardrails is super, super critical for us. Of course, employee education and upskilling. As the world moves on, it is imperative that we train our employees. We're just about to launch into a what we call Generative AI Days, where we're having a month-long program to kinda launch education to upskill our employees. One of the other tools that we've started to deploy with our customers is the way to be able to model the types of emissions that we are releasing. So for example, if you're deploying one of our systems, you can go and say, "Okay, hey, I'm deploying this. Here are the amount of subscribers I have.

This is how I'm gonna deploy it." And you can start to get a rough idea of the carbon emissions that you're going to release. This is really, really important when you start to kinda plan out where you're going in the future. And I think this is something that really helps our customers, and at the end of the day, you know, really generates value, I believe.

So just to kinda bring it all together, you know, everything we do from an ESG perspective, we believe is also vital and critical imperative for business success, whether it's reducing your energy consumption, your, your carbon footprint, whether it's making sure that you're deploying your systems to the widest, broadest possible population on the planet at the end of the day, when it comes to accessibility, providing non-biased services through Generative AI and providing the governance that's needed for it. So these are some imperatives and principles that very, very intentionally we build in right at the start of our platform in all of our products and services offerings. At the end of the day, I, I think, you know, it serves a multipurpose.

It's great for business, I think it's great for society, and of course, our employees love being involved in initiatives like this. With that, I think I'm gonna hand it back to Idit.

Idit Duvdevany Aronsohn
Head of Corporate Responsibility, Inclusion, and Wellbeing, Amdocs

Hi, everyone. Good morning, good afternoon. So, you know, as a company that has 30,000 employees operating in 90 countries and generating billions of digital transactions every day, this is a great privilege. With that also comes a very big responsibility and commitment. And as you've heard from Tamar and Anthony, we're translating this commitment into a few areas of operation. The next few minutes, I'm going to devote into going deeper into how we look at it from a people and social impact. So starting with our never-ending people centricity journey, it's a journey that we've embarked on a few years ago, and represent really, you know, how we put our employees or our people in the center of everything that we do.

With flexibility serving a very, very strong design principle in the last few years, and even more so, you know, since COVID, taking us into the future as well. I will maybe just to go into a few of the highlights, starting with internal mobility. We really transformed and redesigned our entire internal mobility practice, allowing our employees full flexibility in managing their career within Amdocs. We're very proud of the results. Between 36%-40% of our internal positions are filled internally. This is way above the benchmark. The external benchmark looks at between 15%-20%. Vacation with no limit.

Last year, in last year's webinar, we announced our new program for vacation with no limit, and as we said last year, we were very intentional about it. We want people to take more vacation, so we're proudly sharing today that in the past year, in the past year, our employees took 30% more time off, thanks to this policy. Speaking of flexibility, last January, we announced that going back to office after COVID time and working from home. And again, in the last eight months, we've done a lot of work globally. Our policy looks at spending time at the office at least three days. Very, very proud to share that our employees are back in the office.

We've done extensive work to really make the office back the place where we collaborate, where we work together when we meet up with each other and make the most out of spending time together. Maybe last, I would refer to our newest platform, InternalOne. Speaking of Anthony's AI conversation, it's an AI-powered skill system that really looks at how we proactively match our employees with their skills and aspirations and capabilities into career opportunities. It's a very robust program, super promising, that really enables our employees to plan their career and maybe connects to my first point about internal mobility. I want to spend a few minutes to talk about our DEI, our diversity, equity, and inclusion ecosystem.

We have a robust framework that looks on how we consistently and intentionally promote representation, equity, and then belonging and, and inclusion. We're doing it through different programs, from internal leadership or managerial development program for women, all the way to external boot camps that we do for people with disabilities or other ethnic minorities. We have a strong employee community based ENGs or ERGs, depending on how you know the term. BPENG or Black Professional ENG is one example for it. So, for example, when we're looking at Black History Month or Martin Luther King's Day, these are the things that we work hand in hand together with our employee community groups and really do the cultural transformation, the constant cultural transformation and adaptation of our global, workforce. I wanna say a word about, and it's maybe not a coincidence.

Both Tamar and Anthony are serving as our executive sponsors for two important domains, and we have more. Tamar is our executive sponsor for gender diversity. Anthony is our executive sponsor for ethnic diversity, mostly in North America. This is a concept that we've seen, that when we're taking our top leaders to sponsor it, whether they're part of the community or as allies, this is something that drives a very, very strong message top-down on what is the workplace that we want to create for one another. Here you can see a few I mentioned, our Black Professional ENG.

We can see here some of the things that happened in the past year, from Black History Month to International Women's Day, the International Day for People with Disabilities, Pride Month, and other activities that we're doing. For us, part of looking at inclusion and belonging is also looking from a broad perspective into our physical and mental health of our employees. As you can see here, from the Breast Cancer Awareness Month, all the way to Yoga Day that Tamar mentioned earlier. Maybe an example coming all the way from India. As part of our robust framework on how to close the gender gap, which is one of our number one focus areas when it comes to our diversity, inclusion, measurements and direction.

We took India as an example, where this is where we have a large base of our employees. In terms of women representation, we're very much aligned with the industry in India, so we're at about 30%, and we felt that we need to do something to accelerate and to move the needle even faster. So we created a program called W-Factor, and this is a program that looks at India as a whole versus the different business units that are comprised in India, and looking how we are giving responsibility, ownership, and accountability to the... all the leaders that we have in India as a whole, as a group. So we kicked it off in 2022.

We are now, by the way, already kicking off the 2023 one, and we will have one, you know, obviously every year. This is a multi-year plan. We dedicated a lot of our efforts and the intentional work that was driven by the local leadership, looking to work as a group through the talent acquisition processes that we have, leadership development programs, and additional tailor-made programs that were made. We've seen the impact tremendous. The conversation changed. Everything was connected throughout the year, and the results didn't wait to come. So we already see, and this is a great achievement, an increase of 33% year-over-year in the leadership, in women in leadership positions in our Amdocs technology unit.

This is one of our biggest struggles, to see how we don't have the classic pyramid and how we're not losing women as we go up the ladder. So this is just an example of the work that we're doing, and this is taking us year-over-year and obviously expanding globally. And in the next few months, we're going to also announce our new gender target, focusing on women in leadership programs and the places where we see the biggest shortage, which is around technology and customer-facing. Ending this part with this part around the DEI, I want to mention again our strong commitment to pay equity.

For almost a decade, we've been monitoring, closing the gaps that we have through data tools, prevention, consistent work that we do in calibration, in moments of truth, but also on the ongoing looking to train our teams and our managers to make decisions and to eliminate unconscious bias whenever it kind of raises its head. With that, I want to move to the very last part of our digital inclusion and social impact. Anthony mentioned that earlier in the presentation, how we look at the digital inclusion from our product portfolio point of view. I want to take us into a slightly different direction here.

When we're looking at digital inclusion, we're looking at the broad spectrum, and our responsibility and commitment to drive connectivity, accessibility, literacy of those populations who are not that tech-savvy, driving future employability, and of course, how we promote it through technology. One of the concepts that we created, we call it Tech for Good, is a partnership model that looks at creating technological solutions that are scalable and sustainable for different social, environmental challenges. We do it together with different social organizations, NGOs, academia, municipalities, and other social organizations, as well as with our partners, CSPs, our customers, and other companies in our ecosystem. We have many examples. I want to maybe give two. Here, I have one example coming from Israel.

You know, the Internet could be a very dangerous place, unfortunately, even more so for people with disabilities. What we've done here is to actually create an application that was created together with people with disabilities and organizations that are dedicated to working with these populations. It's a tutorial that really teaches them, and you can see even in the colors and how it looks like. It's something that really addresses the ability of people with disabilities to consume this and to really use it in the moments of truth, and to see how we get them to avoid any danger in the... that can come from browsing out there. The next example, which will take us to even a broader topic, Tamar mentioned earlier how we work with our customers.

So one angle is, of course, we will look into it in a second, is how we do it in the day-to-day operation with them. But we're looking at it from a broader perspective, seeing how, you know, being their partner means also to be in the, you know, in times of need of different people, and also in creating opportunities to advance society and to progress the communities in which we live and work. Here is an example together with Globe, our partners, and the Ayala Foundation in the Philippines. We created a marketplace for farmers in rural areas that enables them to sell their produce directly to consumers.

By that, enabling them to have financial stability, but also promoting very much sustainable value through different data processes that behind the scene that help the, helps these farmers to better plan their yields and to avoid future waste. So Globe is one end of the partnership. By the way, we do with them a lot of things along the year. I want to take us now to a video that we created that looks at how really the devastating typhoon that occurred at the end of 2021 and how well we partnered together to restore the ability of people to connect with each other and also to be in touch, unfortunately, with emergency teams. So let's go ahead to see the video.

Speaker 5

It was a regular morning.

I was getting ready to go out to work.

Typhoon Odette is turning into a super typhoon and expected to hit central and south Philippines in two hours.

Suddenly, my work chat group started to get very busy. I was very worried, especially because my family and friends live where the storm is passing through.

Globe serves around 90 million customers, which is a huge responsibility we take very seriously, especially in times of need.

The Super Typhoon Odette is hitting the island of Bohol, described as one of the most powerful typhoons to hit the Philippines.

The first thing that we had to do was make sure that all the teams are ready and make sure that all the information reaches the senior management.

Typhoons cause enormous damage to infrastructure, which takes a long time to repair. When seeing this damage, you understand the need of a backup to keep the network working.

At 11:00 A.M., we got news that the Visayas site was severely damaged. 23 million people were disconnected.

Especially during a disaster, communication is the utmost basic need for families, communities, and especially rescue forces during a crisis like this. It is imperative that we restore the service as quickly as possible. That's why we built the disaster recovery plan with Amdocs. We built a resilient infrastructure where we were able to put up multiple redundancies in different geographic-

... We knew that we were prepared for any situation, but this was definitely an extreme one, and the clock was ticking. We understood that the restoration of the site would take months. It was a stressful situation because the disaster recovery plan would undergo its first test in the most challenging scenario.

Such a site consists of many systems that must be uploaded and supported in a certain order.

The swing and activation of the backup site is very complex, and there is a risk of data loss. From this point, Amdocs managed services and delivery teams took over.

We immediately assembled a task force of Amdocs experts from around the world.

We trusted Amdocs that they can provide the support that we need during that time.

I lost contact with all my loved ones, and I was very worried, but I still had to focus on my job. It was a difficult and memorable moment as I could feel my work and my private life mixing.

It was a race against time. The result was amazing. It took us 4 hours to restore from our DR site, and it took us 8 hours to enable back our services up and running. I can say that this was a great success on the part of the disaster recovery. There's no doubt that the plan has proven itself under extreme pressure.

The end-of-the-day results showed that the strategy we built with Amdocs for dealing with disasters proved it works in real time. I view Amdocs as a strategic partner. Together, we help millions of people in their everyday lives, especially in times of need, which make collaborations such as this one even more invaluable for our teams.

After four hours, I was able to talk to my family. It was a big relief. I was happy. I was also proud of my small role in connecting people with their loved ones at such a time. It was quite amazing.

Idit Duvdevany Aronsohn
Head of Corporate Responsibility, Inclusion, and Wellbeing, Amdocs

We talk about, you know, digital inclusion in so many ways, but this is really digital in, inclusion in actions. And, you know, I remember, you know, when it happened, we heard the feedback from people saying, "You know, connectivity is really now, like, the bottom of the Maslow, right? Like, we without connectivity, we can't do anything these days." And this is really a huge privilege to be able to to serve our partners in such a way. So I want to conclude this chapter by kind of looking forward. In our...

When we're looking at our commitment to people, the journey of people centricity will continue with strong focus on flexibility, DEI, employee well-being, and really connecting everything to our purpose, and of course, maintaining our commitment, our strong commitment to bridge the digital divide and to really advance our society forward as much as we can. With that, I want to move to Tamar to conclude our session before moving to the Q&A.

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Thank you, Idit. So I want to quickly wrap up to leave time for questions. Just saying that we are definitely committed, as you see, through those examples and sharing some of the ways in which we think about the different focus areas that we are targeting, whether it's the digital inclusion that Idit mentioned, and how we are well, helping people around the world be connected, how we are thinking about the business we do in an ethical way throughout our operations and supply chain.

Thinking about our employees' well-being and how we are dedicated to making sure they have an environment in which they can develop themselves and their career, and making sure that we are providing the industry innovation that is providing the best functionality and capabilities, but also the sustainability and the environmental friendly aspects that are required. Last but not least, I would say that everything around the diversity, equity, and inclusion as a people-centric organization, we are very committed to that, both internally with our employees as well as making an impact on the so many communities we touched around the world through our presence, geographically in 90 countries, which is definitely a privilege to be able to do so.

So, I want to take the opportunity, before we move to Q&A, to say thank you to all of you and to many of our partners in this doing, our customers, our employees, our partners, our shareholders, our board, that is very supportive of all of that, as we move along and continue to do good for the world. So let's open it up for questions.

Matthew Smith
Head of Investor Relations, Amdocs

Great. Thanks a lot, Tamar, and everybody, Anthony, and Idit. We'll take a few questions. We do have a few minutes. Anthony, I wanna start with you. Generative AI. You touched on it in your presentation, where you referenced the need to educate and upskill employees in, in readiness for Gen AI. Can you talk a little bit more about our strategy around that, how we're managing the process, the way in which we're preparing different teams, and so on? Just to give us some color. It's obviously a, a major focus for investors, Generative AI.

Anthony Goonetilleke
Group President of Technology and Head of Strategy, Amdocs

Yeah. Yeah, sure. Look, I think there is a lot... I would say a lot of noise and a lot of fear sometimes around, you know, is it gonna displace, you know, a whole bunch of people from their roles. We are kind of maybe taking a little bit of a different approach. We think it's a very, very necessary life skill in terms of upskilling our employees. You know, if you're not already doing it today, you will be using generative AI in some shape or form, whether it be a standard Microsoft application that's rolling out, whether it be ChatGPT or Bing GPT or Google Bard or anything like that, you will be using some type of basic prompt engineering all the way to kind of the advanced generative AI things such as training large language models. So we think that-

... skill sets at different levels are very, very important, no matter what your job is. So this is why, you know, as a company, we are investing heavily in terms of upskilling and training our employees at every level. What we're doing in the next couple of months is we've opened it up to all of our 30,000-odd employees globally. We have sessions where we're training them on consumer applications, enterprise applications, how to use the Amdocs tools within it, how to use it safely, securely, what you can do with it, what you can't do with it, what the guidelines are. So I think, you know, it's very, very important for a company to have a very clear and intentional strategy on how they roll this out through the organization, because it's one of these things that are here and here to stay.

Matthew Smith
Head of Investor Relations, Amdocs

Absolutely. Absolutely. And I'm very much looking forward to those sessions myself, just to learn more about it all. Gender diversity. I want to switch now to gender diversity, and Tamar, perhaps you're best positioned to just comment on this, but could you elaborate a little bit on our strategy for increasing women as a share of total workforce across different levels of management, whether it be junior management, top-level management, and ultimately the board of directors, even? Maybe you could just comment on some of those things.

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Thank you, Matt. So, so I always say that beyond making sure that gender diversity is a topic because it's socially such an important topic, even just looking on pure numbers, you know, as a CFO, I have to look on things through the numbers. 50% of the world potential talent is female. So, clearly, if we want to make sure that we unleash this amazing potential, we need to focus on gender diversity, starting from early stage of working with different schools and different youth around STEM studies, all the way to the top of the pyramid, that it is talked about in terms of how do we make sure that it comes across through all the leadership, levels in the company. And we are very focused around that.

Just to give you some example of how we're thinking about it, you know, so obviously it's, it's first of all, tackling things that are around unconscious bias, because a lot of diversity aspects in general, not just gender-related, are about unconscious bias. So we structure the workshop that we take through all managers in the company that make them understand their unconscious bias, and how it comes to play, and then they're now much more conscious about it.

Then it gets to how we're thinking about strategizing the different programs we have in the company and taking that into consideration, and putting data in front of managers in all people-related processes, giving them a mirror for their own decisions before they finalize these decisions, or different moments of truth when you need as a manager to decide how you allocate your salary revision budget, giving you back the data by gender to understand whether you had some unconscious bias through the process. Then it goes, by the way, all the way up to head of the People organization, and myself, and the management, to make sure we, as the governance process, look on those kind of things.

A lot of exercises and programs that are focusing on educating and providing tools to females to promote themselves through the organization, whether it's networking, whether it's about presenting and making a point, many, many other things that are really effective. See, in fact, I'll give you an example, and I'll end with that because I can talk about this topic for hours. We understood that the first level of managerial position in the company is very critical as we are thinking about starting to close the gap within representation in the employee level to managerial level. So we focused on what we call the team leader function, which is the first managerial level in the company.

Just by deciding and being intentional about it and obviously doing a lot of activities there, we managed to improve by 20% the female representation in the team leader. Okay, that's the first level in the pyramid moving up from there. I think it's extremely important that these programs are intentional. It's coming as something with a lot of support from the top management, and with a lot of exciting results. We will keep doing more.

Matthew Smith
Head of Investor Relations, Amdocs

Very good.

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Thank you.

Matthew Smith
Head of Investor Relations, Amdocs

Thank you very much for the answer. I know we're right on time, but I'm just gonna squeeze one more in, and again, this one's for you, Tamar, unfortunately. Amdocs Park, I mean, it's obviously an amazing new campus that we've taken several years to build. It's obviously a very important part of our 2040 carbon neutral goal and reduction of emissions across scopes and so on. Can you just talk a little bit about that? And also, what does it mean for our employees? You know, what is the sense of, you know, you know, the employee satisfaction, how people sort of enjoy the campus on a day-by-day basis, and what have you noticed about the workforce there in Israel as they get to enjoy that?

Tamar Rapaport-Dagim
CFO and COO, Amdocs

So when we started thinking, you know, years ago about how do we want to see the facility of Amdocs in Israel, and bear in mind, it's one of our key R&D functions of the company. It's the R&D center in Israel. A lot of innovation is coming out of these teams, and we wanted a facility and an environment, a work environment that really fits those kinds of needs, but promotes collaboration, promotes innovation, openness, transparency, different kind of concepts, a lot of opportunity to meet up informally or within meeting rooms. So we had a vision of how we want to do that, and it's an amazing feeling to see that in reality today. And I invite all of you to come and visit, if you can, because you really feel that energy.

You really kind of see that change in spirit and excitement of people working together and leveraging the opportunity. And again, I can go to statistics, et cetera, but you can go into the report and just look into different aspects of why we eventually are achieving LEED Gold. If you want more information, you can get that. But I think the real impact of the campus is the excitement in which employees are coming into the office and the work environment that is really there to promote the innovation and the collaboration that we wanted to achieve. So by all means, just come and visit.

Matthew Smith
Head of Investor Relations, Amdocs

I'm sure, I'm sure people will be very happy to take you up on that invitation. We are over time. Very sorry if we didn't get to your questions, but I would like to thank Tamar, Anthony, and Idit for today's very rich, colorful presentations and for everyone who joined the call. We hope you found this to be a great reflection of our commitment to ESG, and please don't hesitate to reach out to us here in the Amdocs IR department if you have any further questions. So thanks, and with that, have a great day.

Tamar Rapaport-Dagim
CFO and COO, Amdocs

Thank you.

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