Hcl Technologies Limited · NSE:HCLTECH
Hcl Technologies — Q4 FY2015 Earnings Presentation
27 slides from Hcl Technologies's earnings presentation, June 2015
Slide 1: HCL Technologies Investor Presentation Fourth Quarter and Annual FY'15
HCL TECHNOLOGIES INVESTOR PRESENTATION | FOURTH QUARTER AND ANNUAL FY‘15 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: 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
Slide 4: Where Values Drive Velocity
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Slide 5: Contents
CONTENTS SLIDE TITLE SLIDE REFERENCE Perspective & Q4 and Annual FY’15 Performance 7 – 10 Perspective on Addressable Market 13 – 17 Financial Snapshot Q4 & Annual FY’15 19 – 21 Consolidated Income Statement (in US$ mn) 20 Strong Business & Operating Metrics 21 Corporate Governance 23 – 25 Key Me
Slide 6: Where Values Drive Velocity
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Slide 7: Perspective & Q4 and Annual FY'15 Performance
PERSPECTIVE & Q4 AND ANNUAL FY’15 PERFORMANCE -7- WHERE VALUES DRIVE VELOCITY
Slide 8: Performance Trends (Full Year Basis)
PERFORMANCE TRENDS (FULL YEAR BASIS) REVENUE EBIT 1,292 1,324 5,952 5,360 4,686 925 in US$ mn in US$ mn FY '13 FY '14 FY '15 FY '13 FY '14 FY '15 Constant currency revenue growth in FY’15 is 15.1% YoY NET INCOME CASH CONVERSION Average OCF/NI ~ 100% 1,164 1,164 1,037 1,037 1,087 974 834 in US$ mn in
Slide 9: Balanced Portfolio Concomitant with Broad Based Growth
BALANCED PORTFOLIO CONCOMITANT WITH BROAD BASED GROWTH IN CONSTANT CURRENCY Jun’15 FY’15 – GEOGRAPHY QOQ GROWTH YOY GROWTH HCL 2.9% 15.1% 11% Americas 5.1% 14.1% 31% Europe 0.1% 18.7% 58% RoW -0.1% 10.3% SERVICE LINES 18% Application Services 1.4% 7.7% Infrastructure Services 5.2% 18.3% 5% 42% Busin
Slide 10: Performance Drivers
PERFORMANCE DRIVERS EUROPE BUSINESS SERVICES ■ The Core business opportunities remain robust in Europe ■ Focused business strategy around Domain, Digitization & irrespective of the currency environment Automation: ■ Outlook is positive led by wins and traction across UK, − Vertical Business Service
Slide 11: Where Values Drive Velocity
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Slide 13: Perspective on Addressable Market
PERSPECTIVE ON ADDRESSABLE MARKET - 13 - WHERE VALUES DRIVE VELOCITY
Slide 14: Rebid Market Continues to Be Strong
REBID MARKET CONTINUES TO BE STRONG ~$146bn of TCV expected over next three years; potential in Consumer Services and Financial Services Market 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
Slide 15: Our Strategic Plays
OUR STRATEGIC PLAYS DIGITALIZATION Emerging Digitalization Opportunity for Business Model Transformation Customer Experience Management Front Office Technologies Outcome-based Models “HCL is making significant strides with first of its kind digital IT platform deal with a financial services major an
Slide 16: From Gen 2.0 Outsourcing to 21st Century Enterprise
FROM GEN 2.0 OUTSOURCING TO 21ST CENTURY ENTERPRISE BUSINESS COST TO BUSINESS OUTCOMES Client 21st Century Demands Gen 1 Gen 2 Enterprise Building Leveraging Capabilities: Service Line Capabilities to Innovation Deliver: Product ESO Monetization Business Outcomes EFaaS / Process BPO ZCMO Through ALT
Slide 17: IDC MarketScape: Digital Transformation Consulting and Systems Integration
IDC MARKETSCAPE: WORLDWIDE DIGITAL TRANSFORMATION CONSULTING AND SYSTEMS INTEGRATION SERVICES 2015 VENDOR ASSESSMENT IDC MarketScape Digital Transformation Consulting and Systems Integration Services Market Leaders Cognizant Accenture IBM ACCORDING TO THE REPORT EY PwC ■ Buyers rate HCL very highly
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Slide 19: Financial Snapshot Q4 and Annual FY'15
FINANCIAL SNAPSHOT Q4 AND ANNUAL FY'15 - 19 - WHERE VALUES DRIVE VELOCITY
Slide 20: Consolidated Income Statement (in US$ mn)
CONSOLIDATED INCOME STATEMENT (IN US$ MN) Q4, FY’15 Annual, FY’15 Revenue at US$ 1,538 Mn; up 3.2% QoQ Revenue at US$ 5,952 Mn. It is up 15.1% YoY for Full Year EBIT at $ 309 Mn; FY’15 in constant currency Annualized GAAP EPS (Diluted) – INR 50 EBIT at $ 1,324 Mn; GAAP EPS (Diluted) – IN
Slide 21: Strong Business & Operating Metrics (Full Year Basis)
STRONG BUSINESS & OPERATING METRICS (FULL YEAR BASIS) Client Business Mix Client Category 7.1% YoY Jun ’15 Change $100mn+ 7 1 3.6% $50mn+ 2 TRACTION IN 17 NEW CLIENTS $20mn+ 73 6 $5mn+ 211 24 FY '14 FY '15 Managed Services & Fixed Price Projects Key Highlights ■ News Clients contribution to revenue
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Slide 23: Corporate Governance
CORPORATE GOVERNANCE - 23 - WHERE VALUES DRIVE VELOCITY
Slide 24: Corporate Governance
CORPORATE GOVERNANCE Tenets & Philosophy AWARDS/ RECOGNITIONS FRAMEWORK FOR TRUST & FAIRNESS HCL has been ranked in Forbes Asia's TRANSPARENCY & EQUITY CODE OF BUSINESS prestigious annual listing of the 50 best Code of Business publicly traded companies in Asia- STRONG Ethics and Conduct Pacific cal
Slide 25: Board of Directors
BOARD OF DIRECTORS Mr. Shiv Nadar, Chairman and Chief Strategy Officer: Founder of HCL and recipient of Padma Bhushan award. Through Shiv Nadar Foundation, Mr. Nadar has been actively associated with numerous philanthropic initiatives with prime focus on education. Holds iconic global status in IT T
Slide 26: Key Messages
KEY MESSAGES KEY FOCUS AREAS Next-Gen ITO, Engineering and R&D Services and Modern Apps & Digitalization gaining traction KEY MILESTONES Infrastructure Revenue exceed USD 2bn milestone Engineering and R&D Services Revenue exceed USD 1bn milestone Financial Services revenue exceed US$ 1.5bn C
Slide 27: Where Values Drive Velocity
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