Slide 1: Presentation to Investors January – March, 2013
Wipro p – Presentation to esto s Investors January – March, 2013 1 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain “forward forward looking looking” statements, which involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These uncertaint
Slide 3: Agenda
Agenda 1 Our track record on performance 2 Overall Market Opportunity 3 Our Strategy gy 4 Demerger Scheme 3 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 4: Track Record on Performance
Track Record on Performance 4 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 5: Overall Revenue at a 20% CAGR and Net Income at a 14% CAGR over the last 6 years
Overall Revenue at a 20% CAGR and Net Income at a 14% CAGR over the last 6 years $ 375 ($7.3 BN) 311 257 272 201 151 39 46 53 56 ($1.1 BN) 29 33 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Revenue (in INR Bn.) Net Income (in INR Bn.) Revenues for 3 quarters of FY13 at $5.9 BN ; Net Income at $90
Slide 6: IT Services Business has grown at a CAGR of 18% in the last 5 years
IT Services Business has grown at a CAGR of 18% in the last 5 years 5,921 IT Revenue $ Mn 5,221 4,323 4,390 3,647 2,611 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Revenues for 3 quarters of FY13 at $4.6 billion Partner to Industry Leaders Global Footprint Diverse Talent Pool Listed on NYSE in
Slide 7: Broad Based Portfolio
Broad Based Portfolio Revenue contribution of Top Vertical customers for Q3’12-13 ENU GMT Customer Concentration (% of 15.1% 14.3% revenue) Diversified Vertical Top customer 3.2% portfolio, with no RCTG Top 5 13.2% vertical contributing 15.1% more than 27% BFSI Top 10 22.4% 26.9% HLS 10 Customers wi
Slide 8: Strategic Partnerships
Strategic Partnerships Accelerate Innovation | Increase RoI | Industry Expertise | Trusted Network | Emerging Technology Strategic Alliance Portfolio Strategic St t i initiatives i iti ti across Cl Cloud, d AAnalytics, l ti M Mobility bilit Emerging E i MMarket k tFFocus – reverse innovation i t
Slide 9: Overall Market Opportunity
Overall Market Opportunity 9 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 10: Significant Market Opportunity
Significant Market Opportunity IT Services S i 1. Global IT Spends at $1.7 trillion 2. R&D spends at $1.15 trillion 3. Indian IT addresses IT Services, BPO and Engineering & R&D spends of customers globally 10 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 11: India Off-shoring market is expected to grow at a CAGR of ~12-21% through 2020
India Off-shoring market is expected to grow at a CAGR of ~12-21% through 2020 India’s offshore IT and BPO exports ($B) ~ 225-310 With Focused ~175 Initiatives & CAGR Innovation 22% 69 59 47.1 49.7 40.3 31 4 31.4 With 23.6 Current 17.7 Initiatives FY11-12 Long Term Fundamentals of the India CAGR of
Slide 12: Our Strategy
Our Strategy 12 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 13: Overarching changes influencing business today
Overarching changes influencing business today KEY TECHNOLOGY ENABLERS OPPORTUNITY IMPERATIVE 1 Innovation to win in a world of Differentiation at the front constraints 1. Industry expertise 2 Business agility through 2. Client Engagement variabilization of IT Standardization at the core 3 Consumeri
Slide 14: 4 key components to our Strategy
4 key components to our Strategy Existing Transformation Prioritized Disruptive Differentiation M&A Investments into Emerging through Domain & 1. Domain Assets Growth Accounts Accounts, Technologies Solution Focus Verticals and 2. Technology 1. Cloud 1. Drive increased Assets Geographies domain cent
Slide 15: Prioritizing Investments into Growth Accounts, Verticals and Markets
Prioritizing Investments into Growth Accounts, Verticals and Markets Right Account Real Estate Momentum Verticals Emerging Geographies 1. 1 Identify , prioritize & pursue 1. Differentiated & Dis- 1. Prioritized focus on markets accounts that will drive proportionate focus & that are driving Global c
Slide 16: Disruptive Emerging Technologies
Disruptive Emerging Technologies Cloud Analytics Mobility 1. Cloud Enablement Services 2 pronged approach focused on 2 Primary Focus market: Enterprise parts of the customer biz Mobility pp a. Application Transformation for Public and Private 1. 1 Existing E i ti 1. Development of productized Clouds
Slide 17: Differentiation through Domain and Solution Focus
Differentiation through Domain and Solution Focus Domain & Differentiated Solutions H2/H3 Program 1. Buildingg Domain capabilities p as p part 1. Investment in areas which can be of the Business Advisory Services future growth drivers for the company team within the vertical 2. Program complements “
Slide 18: Mergers & Acquisitions
Mergers & Acquisitions Domain Technology Geo Focused Focused Focused Assets Assets Assets Targets with deep domain knowledge or Targets with high customer IP/Technical skills in Targets with high concentration in id tifi d areas off identified Focus Geo presence momentum verticals Analytics, Cloud a
Slide 19: In Summary
In Summary ‘4’ Over-arching Global changes ‘4’ Key Components to the Strategy Markets Themes Domains A Account t RE Cl d Cloud Bi advisory Biz d i 4 momentum Analytics services Verticals Mobility Vertical solutions Emerging geos M&A 19 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 20: Demerger Scheme
Demerger Scheme 20 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 21: Wipro – A Combination
Wipro – A Combination IT Business Diversified Businesses 1. Tier 1 IT Service providers from India Consumer Care Consumer Care Lighting, Furniture 2. No. 2 in the Indian Domestic IT Services market (India) (Overseas) & Switches Wipro Wipro GE Medical 3. Strong presence in IT Infrastructure Managemen
Slide 22: Profile of Diversified Businesses
Profile of Diversified Businesses Lighting, Wipro Medical Diagnostic C Consumer C Care – C Consumer C Care – Furniture & Infrastructure & Product & Services India Overseas Switches Others through Strategic JV 1. Products 1. South East 1. Primarily in 1. Hydraulic cylinder 1. One of the leading playe
Slide 23: Distinct Business Models
Distinct Business Models IT Business Diversified Businesses Service Oriented Manufacturing & Marketing Oriented Steady to High Growth Volatile Growth Trajectory Global Focus Emerging Market Focus Project Based Volume Based Corporate Clientele Largely Consumer Higher Margin Lower Margin Wipro Enterpr
Slide 24: Proposed Restructuring
Proposed Restructuring Current Structure Post Demerger & Exchange(1) Promoter & Public Promoter & Public Promoter ADRs (excluding Promoter ADRs (excluding Group ADRs) Group ADRs) Wi Wipro Li Limited) it d) (IT Business) Wipro Limited Wipro Enterprise Limited IT Diversified ((Diversified Businesses))
Slide 25: Restructuring Rationale
Restructuring Rationale 1. Demerger will facilitate in creating a simple structure with two separate entities Simplified a. A listed pure-play IT company – Wipro Limited similar to the peers in the industry Corporate Structure b. An unlisted independent platform for Wipro Enterprise Limited comprisi
Slide 26: A Win-Win proposition for all Stakeholders (1/2)
A Win-Win proposition for all Stakeholders (1/2) 1. Stand-alone evolution for both entities characterized by different client base and market dynamics Company// C 2. WL: Full focus f on its core operations and determined execution off the business Business transformation plan 3. WEL: Have full comma
Slide 27: A Win-Win proposition for all Stakeholders (2/2)
A Win-Win proposition for all Stakeholders (2/2) 1. Potential value unlocking of the Diversified businesses, currently not captured in the value of WL Shareholders 2 Multiple options provided to the shareholders to select the route which suits their 2. requirement 3. Higher free-float in WL with lim
Slide 28: Other Key Elements
Other Key Elements 1. Mother brands & IPs including the “Wipro” name to be co-owned between WL and WEL 2. Brands & IPs specifically pertaining to Diversified businesses to be demerged to WEL 3. Brand sharing agreements to be adopted by both WL and WEL Brand & IP 1. WL and WEL to benefit from shared
Slide 29: Scheme Highlights
Scheme Highlights 1.Swap Ratio: 1 equity share / 1 Redeemable Preference Shares (RPS) in WEL for every 5 equity share in WL Swap and g Ratio: Every 2.Exchange y 1.65 equity q y shares in WEL to be exchanged g for 1 equity q y Exchange shares in WL of promoter Ratio 3.Preference share issued with fac
Slide 30: Options for the Public Shareholders
Options for the Public Shareholders Non-resident Shareholders of Resident Shareholders of WL ADR Holders WL (excluding ADR holders) Options: Options: ADR holders acting through their depositor shall compulsorily depository comp lsoril 1. Receive equity shares in WEL; or 1. To receive equity shares i
Slide 31: Redeemable Preference Shares (RPS) – Key Terms
Redeemable Preference Shares (RPS) – Key Terms Swap Ratio 1 RPS in WEL for every 5] Equity Share in WL Face Value Rs.50 Rs 50 per RPS Maturity 1 year Coupon 7% Redemption Rs.235.2 Pi Price Listed / Unlisted Unlisted 31 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 32: Transaction Advisors
Transaction Advisors Financial Advisor p Implementation under the oversight of Committee of Independent Directors consisting Legal counsel of: Mr. Narayanan Vaghul (Chairman) Report On Share N.M. RAIJI & Co. Mr. M. K. Entitlement Sharma Ratio Mr. William Arthur Owens F i Fairness Opinions on D
Slide 33: Annexure - Key Highlights of IT and Other Businesses
Annexure - Key Highlights of IT and Other Businesses 33 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
Slide 34: Highlights of the Quarter ended December 31, 2012
Highlights of the Quarter ended December 31, 2012 R Revenue Hi Highlights hli ht 1. Wipro Limited Revenue grew by 10% YoY to Rs. 110.25 Bn. 2. IT Services Revenue at $1,577 Mn, sequential growth of 2.0%. 3. IT Services Revenue Guidance for Q4’13 in the range of $1,585* Mn to $1,625* Mn 4. 100 custom
Slide 35: Non IT Business Highlights
Non IT Business Highlights Wipro Consumer Care and Lighting (WCCL) 1. Consumer Care and Lighting Business continue to see good momentum with Revenue growth of 17% yoy and EBIT growth of 34%, contributed by Top brands of Santoor, Yardley, Enchanteur and Romano 2. Flag ship Toilet soap brand Santoor c
Slide 36: Thank You
Thank You 36 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL