Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (January 2022)
31 slides from Tata Consultancy Services's investor presentation, January 2022
Slide 1: Investor Presentation
Investor Presentation January 2022 Copyright © 2020 Tata Consultancy Services Limited
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These ri
Slide 3: Tata Consultancy Services We Are…
Tata Consultancy Services We Are… A global IT services, consulting and $22.0 BN 25.9% business solutions leader partnering with the world’s leading Revenue FY 21 Operating Margin FY21 businesses in their transformational journeys 2.1% 1.6% Revenue breakup by Geo 5.1% North America Among the Top 10 5
Slide 4: The Fastest Growing Brand In IT Services
The Fastest Growing Brand In IT Services Ranked amongst the Top 3 brands in IT Services globally by brand value and the fastest growing brand of the decade Ranked Global Ranked #1 in Customer Given the Best of Best Named Outstanding Top Employer by the Satisfaction in Europe in award by the Associat
Slide 5: The Journey So Far
Rev in USD Mn FY05 FY06 FY07 15% FY08 FY09 12% FY10 2% FY21 FY11 FY05 to FY12 The Journey So Far FY13 71% FY14 FY15 FY16 Judicious usage of cash … FY17 Industry-leading topline growth … Capex FY18 FY19 Acquisitions Invested Funds FY20 FY21 Shareholder payout 5 EPS in ₹ Mar-05 FY05 Mar-06 FY06 TCS Ma
Slide 6: Leading Technology Change
Leading Technology Change CCS | TATA CONSULTANCY SERVICES
Slide 7: Pandemic-Induced Acceleration of Core Transformation
Pandemic-Induced Acceleration of Core Transformation Need for Operations Resilience Shift to Digital Channels Accelerated Shift to the Cloud + = All Time High Deal Wins in FY 2021 $31.6 Bn 17.1% TCV of Order Book Growth YoY Mix of Growth & Transformation Deals as well as Large Outsourcing Deals 7
Slide 8: Customers Embarking on Multi-Horizon Transformation Journeys
Customers Embarking on Multi-Horizon Transformation Journeys INNOVATE BUSINESS MODELS • New Systems of Engagement • New Systems of Differentiation BUILD DIGITAL CORE PURPOSE LED ECOSYSTEM INNOVATION • Application, Data & • Collaboration with Adjacent Infrastructure Modernization Enterprises • Busine
Slide 9: Lead in the New Normal with Business 4.0
Lead in the New Normal with Business 4.0™ PURPOSE - DRIVEN. RESILIENT. ADAPTABLE. EMBRACE RISK MASS PERSONALIZE CLOUD INTELLIGENT LEVERAGE C R E AT E ECOSYSTEMS E X P O N E N T I A L VA LU E A U T O M AT E D AGILE 9
Slide 10: Promising Beach Head in the Growth & Transformation Opportunity
Promising Beach Head in the Growth & Transformation Opportunity 10
Slide 11: Strategic Investments
Strategic Investments CCS | TATA CONSULTANCY SERVICES
Slide 12: Industry Leading Talent Retention
Creating a diverse, inclusive and vibrant workplace Annual Attrition: TCS vs Peers 16.7% 17.7% 17.1% Industry 14.8% 14.4% Leading Talent 11.0% 11.3% 12.1% 10.5% Retention 7.2% FY17 FY18 FY19 FY20 FY21 TCS Peers Composite Industry-First Innovations Talent Development TCS NQT Vision 25x25 138k 26k Bes
Slide 13: Doubling Down on Organic Talent Development
Doubling Down on Organic Talent Development Skilling at Scale 43 Mn 496K 417K Trained in New Learning Hours Trained in Agile Technologies Access Anytime, Anyplace, Any device Content Rich & Expanding Delivery Domain-infused, Culture focused, Gamified Infrastructure Cloud based, Immersive and Virtual
Slide 14: Enterprise agility for unmatched speed-to-market
Enterprise agility for unmatched speed-to-market Open Agile Collaborative Workspaces With our thought-leading framework that helps customers adopt agile at scale and gain concrete business benefits: 12,000+ 496,000+ TCS Location Independent AgileTM Active agile Agile-trained #TCSLivingAgile Techniqu
Slide 15: Our Investments: Research, Innovation and Ecosystem
Our Investments: Research, Innovation and Ecosystem 6,000+ 67 240+ 30+ 5 2,400 $259 million Researchers, Academic Publications Innovation Pace Ports Start-up Investment** inventors and Partners Labs partners innovators * Numbers as of 31 March 2021. **Consolidated Investments per TCS Annual Report F
Slide 16: TCS Patent Wall
TCS Patent Wall 6,396 patent applications; 2,201 granted 28 Institutional awards & professional recognitions ▪ Best Patent Portfolio – Large Enterprise (ICT Services) Enterprise Trophy by World IP Organization ▪ National IP Award ▪ Asia IP Elite 16
Slide 17: TCS Pace Ports
TCS Pace Ports™ TCS Pace Ports™ are experiential spaces which allow customers to experience the transformational power of TCS’ research, innovation and digital prowess come alive under one roof TCS Pace Ports enable customers to: Summon the best of the start-up ecosystem: TCS COIN Accelerators Engag
Slide 18: TCS Products and Platforms
TCS Products and Platforms BFSI DevOps Retail Life Sciences Cognitive AI CMI Agile Tools SMB BlockChain Extensive portfolio of frameworks, accelerators and toolsets across Enterprise Applications, IoT, Data and Analytics, Cloud migration, Cloud management and Cognitive Business Operations 18
Slide 19: Our New Brand Identity
Our New Brand Identity Brand Statement Our Narrative Building on belief Every business is born out of belief. The belief you can make an impact. That you have an idea that matters. Purpose At TCS, we go beyond helping businesses transform through technology. We help Building greater futures them mak
Slide 20: Longer Term Growth Strategy
Longer Term Growth Strategy CCS | TATA CONSULTANCY SERVICES
Slide 21: Customer-centric Strategy: Going Deeper, Casting Wider
Customer-centric Strategy: Going Deeper, Casting Wider AR/VR AI Talent Development Partnership Accountability Research & APIs & Superior Business Outcomes Cloud Ecosystems Innovation Microservices Putting the Highly Satisfied Customers Industry Contextual Customer at Relationship Intellectual Depth
Slide 22: Going Deeper, Casting Wider: Business Outcomes
Going Deeper, Casting Wider: Business Outcomes Large Client Metrics Rev per US$1 Million Client US$ 20 Mn+ US$ 50 Mn+ US$ 100 Mn+ 228 20.2 19.6 190 101 84 35 48 FY17 FY21 $ Mn FY17 FY21 22
Slide 23: Strong Organic Growth, with Market Share Gains
Strong Organic Growth, with Market Share Gains Revenue in US$ Mn 25000 1.4x Global Market for IT & ITeS 20000 3.7x 15000 1.5x 10000 Growth Multiples of closest 1.9x global and India-based peers much more active in M&A 5000 2.9x 0 FY 2009 FY 2021 23
Slide 24: Consistent Profitable Growth for Long Term Value Creation
Consistent Profitable Growth for Long Term Value Creation Resilient, Industry-Leading Profitability Robust Cash Flow EBIT Margin: Cash Conversion Free Cash Flow TCS vs Peers OCF to Net Income USD Mn 126.7% $5,131 25.7% 25.6% 25.9% 24.8% 24.6% $3,824 105.1% 16.1% 15.4% 15.7% 15.5% 15.6% FY17 FY18 FY1
Slide 25: Shareholder-friendly Capital Allocation
Shareholder-friendly Capital Allocation 43% 91% 98% 102% 106% $5,131 $4,540 $4,433 $4,604 $4,233 $4,217 $4,090 $4,070 $3,824 Average Payout FY17 - FY21 : 89% Amt in $ Mn $1,687 FY17 FY18 FY19 FY20 FY21 Free Cash Flow Shareholder Payout 25
Slide 26: Our ethos
Our ethos In a free enterprise, the community is not just another stakeholder in business, but is in fact the very purpose of its existence. -JN Tata 1839-1904 For every $1 returned to shareholders by TCS, $0.47 goes back to the community, giving TCS a unique, purpose-driven worldview 26
Slide 27: Caring for the Community
Caring for the Community Volunteering Overall Impact Youth Employment Program 787,000 69,000 1.8 Mn 15,262 Hours Volunteers Beneficiaries rural youth across 25 Indian states BridgeIT goIT Ignite My Future in School ₹273 Cr 437 54,173 608,310 Contribution to India’s entrepreneurs, 200,000 students ac
Slide 28: In Summary: TCS Strategy Driving Differentiated Outcomes
In Summary: TCS Strategy Driving Differentiated Outcomes Market Trends TCS Approach Outcomes ▪ More and more industries are leveraging ▪ Position as a growth and transformation partner ▪ Industry-defining mega deals technology to differentiate themselves ▪ More investment in research and innovation,
Slide 29: Annexure
Annexure CCS | TATA CONSULTANCY SERVICES
Slide 30: Financial Highlights
Financial Highlights IFRS Amount in USD Mn, unless otherwise stated Yearly Quarterly FY21* FY20 YoY 3Q22 3Q21 YoY Revenue growth – Constant Currency (0.8)% 15.4% Revenue - INR Mn 1,641,770 1,569,490 4.6% 488,850 420,150 16.4% Revenue $22,174 $22,031 0.6% $6,524 $5,702 14.4% Gross Profit $9,056 $9,06
Slide 31: Thank You
Thank You CCS | TATA CONSULTANCY SERVICES
Tata Consultancy Services — Investor Presentation (January 2022) on 6ix