Tech Mahindra Limited · NSE:TECHM

Tech Mahindra — Investor Presentation (2024)

41 slides from Tech Mahindra's investor presentation, Jun 2, 2024

Slide 1: Safe harbor
Safe harbor Certain statements in this presentation may contain ‘forward-looking statements’ identified by the use of forward-looking words or phrases and statements relating to our future performance and prospects for growth in FY2025 and beyond, our ability to achieve our financial, strategic and
Slide 4: The way large enterprises approach technology and operations has changed
The way large enterprises approach technology and operations has fundamentally changed Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 3
Slide 6: AI, consumerization of tech, demographics and geopolitics are driving the shift
AI, consumerization of tech, demographics and geopolitics are driving the shift Need for Need for Telecom Network Client Channels and Consumer Margin Speed of technology complexity segments jurisdictions behavior compression change Manufacturing Global supply Economies Products consumed as Consumer
Slide 7: But when it comes to tech partners
But when it comes to tech partners The biggest aren’t fast enough Communication barriers Lack of agility No Customization Hierarchy dependent Distance from decision makers … and the boutiques can’t reliably scale No full-spectrum capabilities Dependency risk Shallow talent pools Limited global prese
Slide 8: The TechM promise
The TechM promise $6.3Bn from 1000+ clients 145k employees in 90 countries Rich heritage of Mahindra Group Accessible & engaged leadership Full stack services Empowered front-end team Extensive partnership network Mahindra university Entrepreneurial approach Relationship warmth Company Confidential
Slide 9: Client feedback validates this unique strength
Client feedback validates this unique strength Everybody can claim Two of the sustainable I think TechM has good scale scale and speed, but Speed & scale differentiators of TechM are with presence across you bring them are important TechM is a good speed & scale. They give you locations, & a broad r
Slide 12: The world's best companies are turning to Tech Mahindra for
The world’s best companies are turning to Tech Mahindra for Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 11
Slide 14: What I have learnt about TechM so far
What I have learnt about TechM so far Comprehensive set of offerings Marquee clients with deep relationships Deep engineering roots Scaling top accounts Entrepreneurial energy Multi tower large deals ESG leadership Synergies from acquisitions Cost structure improvement Predictable and profitable gro
Slide 15: 3-year roadmap
3-year roadmap Q4 FY24 FY25 FY26 FY27 The beginning Turnaround phase Stabilization phase Reaping returns Structure and Anchor the new org Continue above normal Improved long term strategy definition investments structural mix Investment in accounts, key markets, service lines Full integration of Con
Slide 16: The TechM flywheel
The TechM flywheel Balanced industry mix High growth services focus Focus on prioritized market Turbocharge program Large deal focus Vision FY27 Topline growth > Peer avg Industry standard margins High predictability Productivity gains M&M synergy Synergy with portfolio cos talent management Operati
Slide 18: Portfolio prioritization
Portfolio prioritization Focus geos / markets Focus verticals Focus service lines Priority ▪ Americas ▪ Telco ▪ Next Gen Services segments ▪ Europe ▪ Manufacturing ▪ Cloud & Infrastructure Services ▪ Prioritized countries in ROW ▪ BFSI ▪ Engineering Services ▪ Hi-Tech ▪ Digital Enterprise Applicatio
Slide 19: Telco
Telco Extend our leadership further Differentiation Strategy to grow Strong presence Be the dominant service provider in major tier 1 telcos & new age telcos for fiber, 5G services in horizon 1/2 30+ years of domain expertise. Largest Early investment in DOCSIS 4, domain agnostic IOP system integrat
Slide 20: Manufacturing
Manufacturing Deep synergies with M&M Differentiation Strategy to grow Strong presence across auto OEMs, T1, Integrated Service offerings industrial, process manufacturing and A&D IT + BORN + Engg Services + BPS for innovation & efficiency 3000+ domain experts with years of rich Rapid growth, indust
Slide 21: BFSI
BFSI Capitalizing on late mover advantage Differentiation Strategy to grow $1Bn+ business with multiple Target high potential sub-verticals tier1 BFSI clients wealth mgt, asset mgt, core banking, payments Focused client acquisition 6 Industry Differentiated offerings for BFS universal banks, tier 1
Slide 22: Artificial Intelligence
Artificial Intelligence Staying ahead of the curve Differentiation Strategy to grow 50+ prebuilt use cases Focusing on reskilling the talent base and AmplifAI suite of offerings Dedicated team to drive efficiencies 100+ Qualified opportunities in HR, Finance, and CIO teams Launch of Indus LLM in Ind
Slide 23: Turbocharge program fueling growth
Turbocharge program fueling growth Laser-sharp focus on Top 80 accounts Developing account-centric strategy to drive healthy Peak growth along with improvement in profitability Achieving high growth and infusing pipeline by rigorous account planning, 360-degree account health-check, people capabilit
Slide 24: Achieving healthy bookings
Achieving healthy bookings Strategic solutioning and transformation Advisor Private relations equity Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 23
Slide 26: Operations Strategy
Operations Strategy Operational Productivity High margin Delivery Synergy with parameters gains services focus excellence portfolio cos ▪ Pyramid ▪ Lean ▪ Digital Enterprise ▪ Large deal review ▪ Culture alignment Applications ▪ Offshore mix ▪ Automation ▪ Quality process and ▪ Technology ▪ Engineer
Slide 28: Cultivating a high-performance culture
Cultivating a high-performance culture Simplify Clarify Innovate Performance driven Making processes more Leave no room for Need to drive a sense of Building opportunities for agile and simpler, ambiguity, impact innovation that could be all to deepen capabilities reducing complications measurement
Slide 29: Talent management
Talent management Revamp Empower Global Agile and employee experience frontline leaders organization responsive Better work and Enable policy-based Culture transformation, React quickly to people workplace experience decisions at zero distance diversity & inclusion and business needs L&D - We’re dri
Slide 30: M&M Synergy
M&M Synergy Partner for the Leverage group Co-creation and transformation relationships to co-innovation of Mahindra expand into its with ecosystem Group network partners #TogetherWeRise Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 29
Slide 31: KPI driven global marketing team
KPI driven global marketing team Branding Demand Facilitating Enabling and positioning generation account growth large deals Recognition as a Establish the Formulate a targeted Strengthen advisor and top global demand center account-based analyst relationships to technology brand by to deliver multi
Slide 32: Commitment to ESG leadership
Commitment to ESG leadership Parameters Target FY26 Climate Resilience Carbon Neutral by 2030 | Net Zero by 2035 Terra Carta seal S&P Global sustainability First Indian company yearbook 2024 Renewable Energy 50% by FY26 & 90% by FY30 to be awarded the Only Indian IT company sustainable markets inclu
Slide 34: FY27 goals
FY27 goals Revenue growth EBIT Margin % ROCE % Capital return Topline 15% >30% >85% of FCF growth > Peer average Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 33
Slide 35: Project Fortius
Project Fortius Reduction in average Offshoring G&A optimization Revenue productivity resource cost Subcon optimization Sales productivity Revenue from high Freshers hiring and re-alignment yield geographies Automation Higher internal fulfilment Large deal productivity Leadership span Value based pr
Slide 36: Above normal investments
Above normal investments Driving long-term, profitable growth Service line capabilities Ecosystem Productivity Engineering Services Hyperscalers Internal Digital Enterprise Apps Niche domain specific platforms Next Gen (Cloud, D&A, AI) Industry analysts People supply Consulting Capabilities chain Ta
Slide 37: EBIT expansion roadmap
EBIT expansion roadmap Portfolio mix Wage hikes Investments Cost savings 15% 6% FY24 Reported FY27FY Reported 27 FY 24 Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 36
Slide 38: Capital allocation policy
Capital allocation policy Current Proposed Distribute cumulative excess cash Endeavor to distribute at least (defined as FCF less investments for 85% of FCF generated over 5 acquisitions and internal initiatives) years to shareholders in form through a combination of dividends of dividends or buybac
Slide 39: Metrics to measure
Metrics to measure Strategic actions Key initiatives Metric ▪ Top accounts ▪ Growth in accounts > $20M Growth ▪ Growth in focus markets ▪ Contribution from NA, Europe, prioritized pockets in APJ ▪ Increasing book of business ▪ Net new deals ($Bn) ▪ Industry mix ▪ Pyramid correction ▪ Entry level wor
Slide 40: The TechM Edge
The TechM Edge Rich heritage Passionate leadership team Full stack offerings High client satisfaction Speed to innovate Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved. 39

Tech Mahindra — Investor Presentation (2024) on 6ix

Tech Mahindra — Investor Presentation (2024)

Slide 1: Safe harbor

Slide 2: Agenda

Slide 3: We live in the new era of…

Slide 4: The way large enterprises approach technology and operations has changed

Slide 5: Winners across industries are embracing a new mindset

Slide 6: AI, consumerization of tech, demographics and geopolitics are driving the shift

Slide 7: But when it comes to tech partners

Slide 8: The TechM promise

Slide 9: Client feedback validates this unique strength

Slide 10: qqqq

Slide 11: North American Tier 1 Telco Leader

Slide 12: The world's best companies are turning to Tech Mahindra for

Slide 13: Vision FY27

Slide 14: What I have learnt about TechM so far

Slide 15: 3-year roadmap

Slide 16: The TechM flywheel

Slide 17: Growth Strategy

Slide 18: Portfolio prioritization

Slide 19: Telco

Slide 20: Manufacturing

Slide 21: BFSI

Slide 22: Artificial Intelligence

Slide 23: Turbocharge program fueling growth

Slide 24: Achieving healthy bookings

Slide 25: Operations Strategy

Slide 26: Operations Strategy

Slide 27: Organization Strategy

Slide 28: Cultivating a high-performance culture

Slide 29: Talent management

Slide 30: M&M Synergy

Slide 31: KPI driven global marketing team

Slide 32: Commitment to ESG leadership

Slide 33: Delivering profitable growth

Slide 34: FY27 goals

Slide 35: Project Fortius

Slide 36: Above normal investments

Slide 37: EBIT expansion roadmap

Slide 38: Capital allocation policy

Slide 39: Metrics to measure

Slide 40: The TechM Edge

Slide 41: Company Confidential | Copyright © 2024 Tech Mahindra. All rights reserved.