Slide 1: HCL Technologies Investor Presentation Second Quarter FY'16
HCL TECHNOLOGIES INVESTOR PRESENTATION | SECOND QUARTER FY‘16 -1- WHERE VALUES DRIVE VELOCITY
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Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statem
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Slide 5: Contents
CONTENTS SLIDE TITLE SLIDE REFERENCE Perspective and Q2 FY’16 Performance 7 – 10 Perspective on Addressable Market 12 – 15 Financial Snapshot Q2 FY’16 17 – 19 Profit & Loss Statement (USD) 18 Strong Business & Operating Metrics 19 Corporate Governance 21 – 23 Key Messages 24 -5- WHERE VALUES DRI
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Slide 7: Perspective and Q2 FY'16 Performance
PERSPECTIVE AND Q2 FY’16 PERFORMANCE -7- WHERE VALUES DRIVE VELOCITY
Slide 8: Performance Trends (Calendar Year Basis)
PERFORMANCE TRENDS (CALENDAR YEAR BASIS) REVENUE EBIT 6,139 1,373 5,692 1,239 5,010 1,104 In USD Mn In USD Mn 2013 2014 2015 2013 2014 2015 NET INCOME Cash Conversion OCF/NI at 94% 1,184 1,184 1,103 1069 1,103 988 868 906 868 In USD Mn In USD Mn 2013 2014 2015 2013 2014 2015 Net Income Operating Cas
Slide 9: Balanced Portfolio Concomitant with Broad Based Growth
BALANCED PORTFOLIO CONCOMITANT WITH BROAD BASED GROWTH QUARTER ENDED DEC’15 GROWTH IN CONSTANT CURRENCY GEOGRAPHY QOQ GROWTH CY-YOY GROWTH HCL 2.1% 13.5% 10% Americas 5.5% 13.8% 31% Europe -2.4% 15.1% 59% RoW -3.4% 7.9% SERVICE LINES 19% Application Services 2.0% 6.4% 41% Infrastructure Services 3.4
Slide 10: Performance Drivers
PERFORMANCE DRIVERS Market Leadership Initiatives Financial Services ■ HCL has been positioned as a leader in IDC MarketScape for ■ Financial Services grew 10.1% CY-YoY Worldwide Application Modernization Services for Digital ■ Adoption of Digital and FinTech innovations, key themes driving New Tran
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Slide 12: Perspective on Addressable Market
PERSPECTIVE ON ADDRESSABLE MARKET - 12 - WHERE VALUES DRIVE VELOCITY
Slide 13: State of the Market
STATE OF THE MARKET Gartner: IT Services Market to Grow 3.8% in 2016 Key Industry Predictions for 2016 and Beyond in Constant Currency IT Services Growth Rates (CY Basis) 2015 2016 2017 1. By 2017, 40% of services managed by IT will be business services oriented to augmented experience and smart pro
Slide 14: HCL – Business and IT Services Strategic Play
HCL – BUSINESS AND IT SERVICES STRATEGIC PLAY 2016 – 2020 Digitalization Next–Gen ITO Internet of Things HCL Outcome – Business Model Transformation DryICE: 3rd Generation Consumer and Industrial IoT Based Models Automation Platform Strategic Front–Office to Back–Office Smart Machine Solutions Play
Slide 15: Rebid Market Continues to Be Strong
REBID MARKET CONTINUES TO BE STRONG ~$146BN OF TCV EXPECTED OVER NEXT THREE YEARS; CHURN RATE HAS INCREASED TO 40% FROM 34% IN LAST 2 YEARS Total Renewal Opportunity in $ bn* 2016-18 Horizontal Split* 51 Applications, 50 15% 46 Infrastructure, 55% Full ITO, 30% CY 16 CY 17 CY 18 2016-18 Vertical Spl
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Slide 17: Financial Snapshot Q2 FY'16
FINANCIAL SNAPSHOT Q2 FY'16 - 17 - WHERE VALUES DRIVE VELOCITY
Slide 18: Profit & Loss Statement (USD)
PROFIT & LOSS STATEMENT (USD) Q2, FY’16 Revenue at US$ 1,566 Mn; up 1.4% QoQ in reported currency Constant currency revenue growth at 2.1% QoQ and 13.5% on CY YoY EBIT at $ 314 Mn, up by 5.0% QoQ Annualized GAAP EPS (Diluted) – INR 54 Income Statement Growth 31-Dec-14 30-Sep-15 31-Dec-15 (US
Slide 19: Strong Business & Operating Metrics (CY Basis)
STRONG BUSINESS & OPERATING METRICS (CY BASIS) Client Business Mix Client Category 96.0% 6 7 7 Number Of Clients 12 16 19 SUPERIOR 95.1% CLIENT MINING 37 42 30 140 121 107 Dec '14 Dec '15 Existing Clients 2013 2014 2015 100 Million Dollar + 50 Million Dollar + 30 Million Dollar + 10 Million Dollar +
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Slide 21: Corporate Governance
CORPORATE GOVERNANCE - 21 - WHERE VALUES DRIVE VELOCITY
Slide 22: Corporate Governance
CORPORATE GOVERNANCE TENETS & PHILOSOPHY AWARDS/ RECOGNITIONS FRAMEWORK FOR TRUST & FAIRNESS HCL Foundation, the CSR arm of HCL TRANSPARENCY & EQUITY CODE OF BUSINESS Technologies, announced launch of HCL Grant with an aim to identify, empower and Code of Business support NGOs and individual social
Slide 23: Board of Directors
BOARD OF DIRECTORS Mr. Shiv Nadar, Chairman and Chief Strategy Officer: Founder of HCL and recipient of Padma Bhushan award. Through Shiv Nadar Foundation, Mr. Nadar has been actively associated with numerous philanthropic initiatives with prime focus on education. Holds iconic global status in IT T
Slide 24: Key Messages
KEY MESSAGES KEY FOCUS AREAS HCL’s strategic play across digitalization, IoT, Next–Gen ITO and Engineering Outsourcing expands our addressable market beyond traditional IT and positions us well to capture both business and technology spending. STRONGLY POSITIONED IN THE MARKET Strengthening its
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