Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Investor Presentation (February 2010)
23 slides from Tech Mahindra's investor presentation, Feb 2, 2010
Slide 1: Investor Presentation
Investor Presentation © Tech Mahindra Limited 2009 Tech Mahindra Limited confidential
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to
Slide 3: Agenda
Agenda Company Overview Industry landscape Tech Mahindra – Creating the next wave Mahindra Satyam – A game changing opportunity Strong Financial Track record 2/2/2010 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 3
Slide 4: Tech Mahindra Overview
Tech Mahindra Overview Leadership position in Outsourcing services to the Telecom Industry Revenue India’s one of the leading Telecom CAGR: CAGR:23% 23% Focused IT Services and Solutions 1000.0 (USD Mn) 750.0 984.9 Provider for global communication 934.7 500.0 648.0 industry 250.0 227.7 236.5 253.8
Slide 5: Opportunity
Opportunity Large addressable market still untapped Global Technology related spend and Indian IT Exports (US$ Bn) India IT exports India IT exports CAGR 14% CAGR 20% India Global IT service market, still very small proportion (~ 3%) to the Global IT spend Global IT spend CAGR 4.1% global IT spend C
Slide 6: Key IT Offshoring Verticals
Key IT Offshoring Verticals Favorable IT offshoring scenario for Telecom Vertical Telecom one of the fastest Share of Telecom Vertical in the Overall India IT Exports (US$ Bn) growing vertical in the Global Indian IT space, key growth drivers being: FY2008 20.0% • Deregulation and increasing competi
Slide 7: Telecom Industry Value Chain
Telecom Industry Value Chain Opportunities for a telecom e2e Solutions Provider O BP IT Applications Network VA S Infrastructure Management Service Security Services Testing Services 2/2/2010 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 7
Slide 8: TechM Advantage
TechM Advantage Best positioned to leverage telecom IT outsourcing opportunities Current Telecom Operators Ubiquitous services Business Business as as usual usual offerings across telecom Optimization Optimization andand consolidation consolidation of of applications applications value chain Driving
Slide 9: Strong Parentage
Strong Parentage Spearheading the robust growth and ensuring the best industry practice BT is a leading provider of Mahindra Group is one of the leading communications solutions and services - and reputed business houses of India operating in over 170 countries Presence Presence inin key key sectors
Slide 10: Comprehensive Coverage of the Telecom Space
Comprehensive Coverage of the Telecom Space Application Application Development Development && Management Management System Integration System Integration Program Program andand Delivery Delivery Management Management Telecom Telecom Service Service Providers Process Process Consulting Consulting Pr
Slide 11: Growing Maturity in Service Delivery Model
Growing Maturity in Service Delivery Model Depth of technological capabilities resulting in robust Service Delivery Model 2/2/2010 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 11
Slide 12: Strategy imperatives for Tech M
Strategy imperatives for Tech M Catapult to become global leader in Outsourcing Services to Telecom Industry Defend, grow & enhance existing relationships Growth Enhance our Diversify service client base Strategy portfolio Non-organic growth Increase Investment Investment in in reusable reusable com
Slide 13: Six Pillar Growth Mantra
Six Pillar Growth Mantra 2/2/2010 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 13
Slide 14: Unique Delivery Model
Unique Delivery Model Collaborating to deliver excellence Client Client Competency Sales & Marketing Enabler Strategic Strategic & Solution Client Engagement Market development & Development & Brand Positioning Functions Delivery Delivery Unit Unit Units • Line support Network HR/ESG/ functions focu
Slide 15: Global Delivery Footprint
Global Delivery Footprint Milton Keynes – UK Giga Space – Pune Presence across 25 countries Development Center 16 Regional offices worldwide and 13 delivery centers across the globe Regional Office * indicates TechM BPO facility also present at the centre Strong process and quality culture Delivery
Slide 16: Client Engagement Model
Client Engagement Model TM Manages some of the largest account in the IT Service industry Customers Front ending with client North MEA & Strategic Europe APAC India America SAARC Account Sales Sales Sales Sales Sales Sales Team Team Team Team Team Team External Alliance Proposed Solution Partners SS
Slide 17: Diversified Client Base
Diversified Client Base Client Mix Revenue Contributions 100 FY 07 FY 08 FY 09 Q1 Q2 Q3 90 FY10 FY10 FY10 80 Top client 64.1% 63.8% 58.4% 51.9% 49.8% 45.8% 9 70 8 9 8 Top 5 83.5% 84.1% 80.8% 78.2% 75.1% 74.6% USD Mn 60 6 18 15 17 13 13 clients 50 40 6 Top 10 90.0% 88.6% 87.3% 86.1% 84.2% 82.3% 8 cli
Slide 18: Human Resource
Human Resource Headcount IT Attrition % 31000 30,404 25% 21% 21% 30000 19% 19% 20% 18% 29000 17% 15% 28000 15% 27000 26,515 26000 10% 25,429 25,482 25,135 24,972 25000 24,369 5% 24000 23000 0% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 IT Utilization % (Inclu
Slide 19: Management
Management Key Business Leaders - Tech Mahindra Limited In In aa career career spanning spanning over over 40 40 years, years, Vineet Vineet Nayyar Nayyar has has worked worked with with the the Government, Government, international international multilateral multilateralagencies agenciesand andthe
Slide 20: Acquisition of Satyam
Acquisition of Satyam Application Development and Application Development and Maintenance Maintenance Infrastructure Management Services Infrastructure Management Services Service Service IT Enabled Services Offerings IT Enabled Services Offerings Business Process Management Consulting and Enterpris
Slide 21: Immediate Priority: Mahindra Satyam
Immediate Priority : Mahindra Satyam Optimize Optimize resources resourcesto toBusiness Businessneeds needs Financial Financial Rationalize Rationalizecosts costs Stability Stability Review Reviewonsite-offshore onsite-offshoremix mix Introduce Introducestrong strongcorporate corporatebest bestpract
Slide 22: Financial Snapshot
Financial Snapshot Revenue EBITDA CAGR: CAGR:23% 23% 300.0 CAGR: CAGR:31% 31% 1000 281.9 (USD Mn) 984.9 200.0 934.7 205.3 750 163.3 100.0 (USD Mn) 648.0 58.0 60.5 60.3 500 0.0 2007 2008 2009 Q1 FY10 Q2 FY10 Q3 FY10 250 227.7 236.5 253.8 0 EBITDA, EBIT and PAT Margin 2007 2008 2009 Q1 FY10 Q2 FY10 Q3
Slide 23: Thank You
Thank You 2/2/2010 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 23
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