Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (July 2022)
28 slides from Tata Consultancy Services's investor presentation, July 2022
Slide 1: Investor Presentation
Investor Presentation Jul 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 $25.7 BN 25.3% business solutions leader partnering with the world’s leading Revenue FY 2022 Operating Margin FY 2022 businesses in their transformational journeys 5.1% 2.0% 1.7% Revenue breakup by Geo North America Among the Top
Slide 4: The TCS Advantage
The TCS Advantage Unmatched Cutting-edge Unique Holistic Transformative contextual technology customer- solutions for partnership knowledge and talent centricity enterprise value Optimize Transform Grow and scale Industrialized frameworks, Reimagine processes, New business models for cognitive techn
Slide 5: Our Services Portfolio
Our Services Portfolio Consulting and Services Integration IoT and Digital Engineering Microsoft BU Cybersecurity AWS BU Interactive Digital Cloud Transformation Platform Services TCS Cloud Services Analytics and Insights Google BU Enterprise Applications Quality Engineering Cognitive Business Opera
Slide 6: The Journey So Far
Rev in USD Mn FY05 FY06 FY07 FY08 14% FY09 11% FY10 2% FY11 FY22 FY05 to FY12 FY13 The Journey So Far 73% FY14 FY15 FY16 Judicious usage of cash … FY17 Capex Industry-leading topline growth … FY18 FY19 Acquisitions Invested Funds FY20 FY21 FY22 Shareholder distribution 6 EPS in ₹ Mar-05 FY05 Mar-06
Slide 7: Key Demand Drivers of Growth in FY 2022
Key Demand Drivers of Growth in FY 2022 Growth & Transformation ▪ M&A, new ways of working ▪ Product innovation, business model innovation including Horizon Two and Three programs ▪ Customer experience transformation All Time High Cloud Migration Deal Wins ▪ Cloud strategy definition, assessment, bu
Slide 8: Gaining Share in the G&T Opportunity
Gaining Share in the G&T Opportunity 8
Slide 9: Strategic Investments
TATA CONSULTANCY [CS Investor SERVICES Relations Strategic Investments
Slide 10: Industry-Leading HR Outcomes
Industry-Leading HR Outcomes Workforce Talent Pool Expansion Talent Retention Globally Distributed, Highly Localized To Mitigate Supplyside Challenges Best in the Industry 592,195 103,546 100,000+ 17.4% Employees Net Addition – Highest Ever Fresh Graduates Trained and Onboarded LTM Attrition in IT S
Slide 11: Fostering a G&T Workforce
Fostering a G&T Workforce Purpose-Centric Contextual Masters TCS Elevate Training for Anyone to learn Anytime, Talent with potential to be Linking learning to career growth Anywhere, accessing Any content on Any device tomorrow’s G&T leaders 60.3 mn 50,000+ 24% 13,000 Learning hours logged in FY 202
Slide 12: Helping Clients Innovate at Scale
Helping Clients Innovate at Scale $308 million 1.2% Total R&I Spend of Revenue ▪ 1,350+ clients ▪ 7 regions 6,500+ ▪ 65+ client / partner 240+ 6,583 2,287 speakers Researchers, Inventors Publications Patents Filed Patents Granted and Innovators ▪ First in-person (hybrid) event in the UK COIN CodeVit
Slide 13: Accelerators, Products and Platforms: Competitive Differentiators
Accelerators, Products and Platforms: Competitive Differentiators Accelerate transformational outcomes, drive high quality revenues and deepen the competitive moat around TCS’ services business Solution Accelerators Customizable assets that deliver speed to market and more certain BFSI DevOps busine
Slide 14: Marketing and Brand Building
Marketing and Brand Building Engaging with clients and prospects to strengthen TCS’ Outcomes brand positioning as the preferred G&T partner to the world’s most successful corporations. 92 $16.8 Bn Leader rankings by Brand Value assigned to research firms TCS by Brand Finance 139,000+ 2,500 100+ 42 U
Slide 15: Longer Term Growth Strategy
Longer Term Growth Strategy 15
Slide 16: Customer-centricity at the Core of Our Strategy
Customer-centricity at the Core of Our Strategy Client Metrics Rev per US$ 1 Million+ Client ($ Mn) 268 228 190 21.7 101 120 20.2 20.2 19.6 84 48 58 35 FY 2017 FY 2021 FY 2022 FY 2017 FY 2021 FY 2022 US$ 20Mn+ US$ 50Mn+ US$ 100Mn+ Growth 11% 16
Slide 17: Strong Organic Growth, with Market Share Gains
Strong Organic Growth, with Market Share Gains 1.4x Global Market for IT & ITeS 2.5x 1.6x $25,707 20.2 2.1x Growth Multiples of closest $10,171 global and India-based peers much more active in M&A 2.3x FY 2012 FY 2022 17
Slide 18: An Industry-First Operating Model to Power our Journey Ahead
An Industry-First Operating Model to Power our Journey Ahead Business Acquire Transform Transformation Group Market Elevate positioning Increase market through business penetration with transformation and geography alignment multi stakeholder play to create new vista for growth Incubate Grow Relatio
Slide 19: Consistent Profitable Growth for Long Term Value Creation
Consistent Profitable Growth for Long Term Value Creation Resilient, Industry-Leading Profitability Robust Cash Flow Cash Conversion Free Cash Flow EBIT Margin: TCS vs Peers USD Mn OCF to Net Income CAGR: 6.6% 21.7 21.7 110.0% $5,257 20.2 109.1% $4,090 FY 2018 FY 2022 FY 2018 FY 2022 19
Slide 20: Shareholder-friendly Capital Allocation
Shareholder-friendly Capital Allocation 106% 91% 98% 102% 98% 99% Average Payout FY 2018 – FY 2022 $5,023 $4,604 $5,257 $5,131 $4,433 $4,540 $4,233 $4,217 $4,070 $4,090 668 112 358 471 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Free Cash Flow Shareholder Payout (as % of Net Income) 20
Slide 21: Making Progress in our Net Zero Journey
Making Progress in our Net Zero Journey* Target Next Milestone Achieved in FY 2022 Water Waste Net Zero 70% 66% 84% 100% By 2030 Reduction in Scope 1+2 Reduction in Scope 1+2 Recycling of sewage Recycling of regulated wastes, emissions by 2025 vs emissions vs base year 2016 generated (India) e-easte
Slide 22: And Helping Clients in Their Sustainability Journeys
And Helping Clients in Their Sustainability Journeys • TCS Clever Energy • TCS Envirozone and TCS Net Zero • TCS IP2 and InTwin • Climate Risk Assessment • Green IT Portfolio Services and more 100+ Climate Change 2 • • • Health, Safety & security Wellness analytics and insights • Sustainable Banking
Slide 23: Giving back to the Community
Giving back to the Community Adult Literacy Program Volunteering Overall Impact goIT 7,400+ 162 700,000+ 58,900 1.7 Mn 30,000+ learners districts Hours Volunteers Beneficiaries students across 37 countries BridgeIT Youth Employment Program Jal Jeevan Mission Ignite My Future 321 19,700+ 75,000 14 43
Slide 24: TCS Strategic Responses to Opportunities and Threats
TCS Strategic Responses to Opportunities and Threats Opportunity / Threat TCS Approach Outcomes ▪ Greater interest in using ▪ Focused on developing contextual knowledge and applying that for ▪ Expansion of addressable market. technology to drive business inside-out transformations. ▪ Growing share o
Slide 25: TCS Strategic Responses to Opportunities and Threats
TCS Strategic Responses to Opportunities and Threats Opportunity / Threat TCS Approach Outcomes ▪ Greater acceptance of as-a-Service ▪ Strengthened alliances and launched new offerings around the ▪ Stronger win-win partnerships. platforms popular and new SaaS products. ▪ Expansion of addressable mar
Slide 26: Annexure
TATA CONSULTANCY Investor SERVICES Relations Annexure
Slide 27: Financial Highlights
Financial Highlights IFRS Amount in USD Mn, unless otherwise stated Yearly Quarterly FY 2022 FY 2021* YoY 1Q 2023 1Q 2022 YoY Revenue growth – Constant Currency 15.4% 15.5% Revenue - INR Mn 1,917,540 1,641,770 16.8% 527,580 454,110 16.2% Revenue $25,707 $22,174 15.9% $6,780 $6,154 10.2% Gross Profit
Slide 28: Thank You
TATA CONSULTANCY Investor SERVICES Relations Thank You
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