Wipro Limited · NSE:WIPRO
Wipro — Q2 FY2008-09 Earnings Presentation
30 slides from Wipro's earnings presentation, October 2008
Slide 1: Wipro Limited Presentation to Investors July-Sep 2008
Wipro Limited Presentation to Investors July-Sep 2008
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain “forward 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 uncertainties have been de
Slide 3: Overview of Wipro Corporation Performance
Overview of Wipro Corporation Performance 1. Revenue for the 4,963 corporation at $4.9 billion for 3,325 2007-08 USD MN 2,391 2. Total Employees 1,820 ~100,000 1,273 , 652 816 3. Total IT business 363 465 223 touches $4.3 billion 2003-04 2004-05 2005-06 2006-07 2007-08 4 4. C Consumer Care C Revenue
Slide 4: Offshore Still Small Part of Overall Spend
Offshore Still Small Part of Overall Spend 1,759 1. Despite the growth Global Technology Related Spend & India’s India has seen in Current Exports ($ Bn) Global IT Services market, it is still a very small Indian Exports As 802 % of Global Spend proportion (~2%) of global spend 495 ~5% 462 ~2% ~1% ~
Slide 5: India Story becoming Stronger
India Story becoming Stronger India’s India s offshore IT and BPO exports exports, US $ Bn Bn. 120-180 1. Industry CAGR BPO ~80 40% continues strong momentum – CAGR IT 22% grew 28% in ~60 FY08 CAGR BPO 50% 2. IT-BPO exports 40.3 could reach a CAGR IT 25% 31.4 size of $120- 180 Bn by 2015 ; 23.6 28%
Slide 6: Incentive to Outsource / Offshore
Incentive to Outsource / Offshore • Cost optimization is the top most agenda worldwide • Sti k tto C Stick Core Competence C t – Outsourcer O t to t handle h dl IT ttransformation f ti • Large vendors with Deep Domain / Technology / Global Delivery Model best geared to service customer objectives 6
Slide 7: How do we capitalize on the opportunity?
How do we capitalize on the opportunity? …Through our differentiators - Current and Prospective 7
Slide 8: Wipro Differentiators
Wipro Differentiators 1 Verticals 1. 2. Service Lines 3. R&D 4. India & Middle East 5. Wipro Way 6. Acquisition 8
Slide 9: Wipro Differentiators: Verticals
Wipro Differentiators: 1. Verticals Improved Addressability through Verticalization Verticals Addressed Telecom Banking g Energy & Manufacturing Utilities Securities Technology CMSP Insurance Retail & Healthcare Transportation • Pioneered the Vertical framework in 1999 – first among Tier 1 players •
Slide 10: Wipro Differentiators: Service Lines
Wipro Differentiators: 2. Service Lines Service Lines – Growth Drivers and Differentiators FY07-08 YoY% 54% 38% T e sting i 42% % 27% PES T e sting BP O 40% 15% BP O BP O 49% TIS TIS TIS TIS PI PI PI 36% PI FY01-02 FY03-04 FY 05-06 FY07-08 Incubate Expand Enhance Deliver Value Delivering Comprehensi
Slide 11: Wipro Differentiators: R&D Business
Wipro Differentiators: 3. R&D Business Leaders in R&D Business Industry Verticals Addressed 1064 Fiscal Year 851 25% 672 27% 514 Wireless Net & Printing and Devices Imaging 2004-05 2005-06 2006-07 2007 08 2007-08 18000+ talent pool engaged in R&D Services Largest player based on headcount Comput
Slide 12: Wipro Infotech – Emerging Market Focus
Wipro Differentiators: 4. India & Middle East Wipro Infotech – Emerging Market Focus 1. Leadership position in India, pioneer in Middle East 2. Best of breed partnerships 3. Revenue of $931 million ; 3-year CAGR of Revenue at 39% and EBIT at 44% 4. Transformational customer engagements 5 Incubator o
Slide 13: Wipro Differentiators: Wipro Way
Wipro Differentiators: 5. Wipro Way Driving Innovation • Understanding customer and his customers needs better • Moving from doing what is contracted to being a partner in solution success • Internal partnerships to create value for the customer • Relationship building, building Excellence in govern
Slide 14: Wipro Differentiators: Acquisition Strategy
Wipro Differentiators: 6. Acquisition Acquisition Strategy 1. Enhancing domain and technology competence 2 Expanding 2. d S Service Line portfolio f l 3. New geographies est e t o 4. Investment of $ $1 b billion+ o to towards a ds st strategic ateg c acqu acquisitions sto s Infocrossing ¾ Transforma
Slide 15: Shaping the Future
Shaping the Future 1 Global TOS 1. Business Transformation 2. Global Programs 3. Best Shoring 4. Integrated g Consulting g IT Transformation 5. Mega Partnerships 6. Product Engg as a Service line 15
Slide 16: Shaping the Future: Global TOS
Shaping the Future: 1. Global TOS Total Portfolio of Services TIS Infocrossing Infrastructure Consulting & SI Managed Data Center Services Managed Services – Open Systems Managed Services – Mainframe & Storage Network Management Non-linear delivery model Business Service Management Service Desk Unle
Slide 17: Global Programs – Transformational Outsourcing
Shaping the Future: 2. Global Programs Global Programs – Transformational Outsourcing Program Management Consultative Approach pp Multi-tower IT Rationalization Delivery Assurance engagements Application Rationalization Change Ch Management M Commercial C Implement iand l Re-architect Inst
Slide 18: Best Shoring: Redefining the Delivery Model
Shaping the Future: 3. Best Shoring Redefining the Delivery Model Approach to Optimize Delivery Locations • Design ideal mix of onshore, offshore and best shore based on client’s business needs and value hierarchy. • Provide integrated applications applications, BPO and ITO Service Delivery from Glo
Slide 19: Integrated Consulting: Consulting as an Enabler
Shaping the Future: 4. Integrated Consulting Consulting as an Enabler GEO GO-TO-MARKET Dedicated MEGA / GAMA account alignment BUSINESS PERFORMANCE Single services channel for Verticals/ Accounts/ Analysts VICES SULTING SERV IT PLANNING & GOVERNANCE Comprehensive market-aligned advisory servic
Slide 20: Mega Partnership: Partnership with Technology Leaders
Shaping the Future: 5. Mega Partnership Partnership with Technology Leaders A Winning Combination: Enhanced customer value proposition Improved customer penetration and global go go-to-market to market Co-innovation and Co-creation of Solutions Emerging g g Market Focus Synergistic Partnership ecosy
Slide 21: PES as a Service Line
Shaping the Future: 6. PES as a Service line Cutting Edge Product Engineering Services Product Engineering – a differentiated capability in Wipro Incubated in our Telecom, Computing & Semiconductor business Leaders in VLSI services Addressing new segments through this differentiated capabili
Slide 22: Performance Highlights
P f Performance Highlights Hi hli ht 22
Slide 23: Performance of IT Services
Performance of IT Services Combined IT Services USD Mn 3,647 CAGR of 36% 2 611 2,611 1,952 1,458 2004-05 2005-06 2006-07 2007-08 Our Combined IT Products and Services business at $4.3 billion in 2007-08 Partner to industry leaders Global footprint 743 active global clients Listed on NYSE as on 3
Slide 24: IT Services – Highlights in Q2
IT Services – Highlights in Q2 09 Revenues at $1,110 Mn significantly ahead of guidance of $1089 Mn for the quarter with sequential growth of 4% (constant currency of 5.6%) and yoy growth of 29.4% IT Services added 28 new clients in the quarter. quarter Turbo charged growth in India & Middle E
Slide 25: Strength of De-Risked Business Model
IT Services Business Strength of De-Risked Business Model Verticall d distribution b ffor Q2 2008-09 Service line l d distribution b ffor Q2 2008-09 Technology, 12% TIS Telecom, 10% 19% CMSP, 9% Testing ADM 11% 44% Mfg & HLS, 19% PI 11% BFSI, 26% BPO PES 9% 6% E&U, 8% Retail & Transportation, 17% •
Slide 26: Platform for Sustainable Growth
Performance Highlights IT Services Platform for Sustainable Growth 1. Tightened No. of Active Customers % Revenues from New Service Lines qualification process for new accounts 906 2. High focus on 928 53.1% 54.7% 54.3% 720 existing accounts resulting in increase in million Sept-07 Sept-07 June-08 S
Slide 27: Looking Ahead
Performance Highlights IT Services Looking Ahead For the Quarter ending December 2008, we expect Revenue from our IT Services business to be approximately $1,121 million*. We expect volume led growth for the quarter. *based on closing exchange rates as of 30th Sep 08 Closing rates Sep 08 Average rat
Slide 28: Strength of our Balance Sheet
Performance Highlights Strength of our Balance Sheet 1. Cash balance as on 30th Sep is Rs. 59.6 billion ($1.3 billion). 2. Net cash generated from operating activities in the last 6 months is Rs.17 billion ($370 million), a yoy growth of 48%. 3. CAPEX spend in H1 of Rs.8.5 billion ($180 million). We
Slide 29: Our Non IT business
Our Non IT business Wipro Consumer Care and Lighting (WCCL) For the quarter, Wipro Consumer Care and Lighting (including Unza) recorded Revenues of Rs. 5.27 billion, a growth of 42% YoY and PBIT of Rs. 643 million, a growth of 46% YoY. Our domestic business Grew 22% yoy. Operating Margin Expands
Slide 30: Thank you for your time
Thank you for your time Information contained and transmitted by this presentation is proprietary to Wipro Limited and is intended for use only by the individual or entity to which it is addressed, and contains information that is privileged, confidential or exempt from disclosure under applicable l