Slide 1: Technology for the next decade, Today.
Technology for the next decade, Today. HCL Technologies Investor Presentation Q4 FY19 Thursday, May 09, 2019 | 7:30PM
Slide 2: 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 3: HCL Technologies Q4 and Annual FY19 Earnings Conference Call
HCL Technologies Q4 and Annual FY19 Earnings Conference Call
Slide 4: Business Updates
Business Updates C Vijayakumar President & Chief Executive Officer 4 Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 5: Performance Summary
Performance Summary Quarter ended Mar 31, 2019 Fiscal Year 2018-19 QoQ YoY Revenue $2.28B 3.5% Revenue $8.63B 10.1% Growth in CC 3.3% Growth in CC 11.8% EBIT $0.43B 0.1% $1.68B 8.8% EBIT EBIT% 18.9% EBIT% 19.5% Net Income $0.36B 0.1% Net Income $1.44B 5.9% • Posted 3.3% QoQ growth following a 5.6% Q
Slide 6: Performance Trend
Performance Trend Revenues Earnings Before Interest & Tax 8,632 1,683 In USD Mn In USD Mn 7,838 1,548 1,414 6,975 FY'17 FY'18 FY'19 FY'17 FY'18 FY'19 Net Income Cash EPS Diluted In USD Mn 84.9 In INR 1,441 73.7 1,360 66.9 1,262 59.9 62.6 73.6 FY'17 FY'18 FY'19 FY'17 FY'18 FY'19 EPS Cash EPS 6 Copyri
Slide 7: Key Highlights
Key Highlights ▪ We again hit a new record for our bookings this quarter. This is the third time we have set an all time bookings record this fiscal ▪ Q4 saw 17 transformational deals led by Retail & CPG, Manufacturing, Public Services and Financial Services; for the year 78 such deals ▪ Acquired St
Slide 8: Key Wins
Key Wins Large technology manufacturer in USA Managed Services including global administrative and support functions, information and finance functions Leading Danish pharmaceutical giant Technology Services including Digital, Agile & DevOps, Applications Development and Advisory Services Leading in
Slide 9: Mode 1-2-3 Performance
Mode 1-2-3 Performance FY19 CC FY19 Mode FY17 FY18 FY19 Growth Growth Revenue 6,975 7,838 8,632 11.8% 10.1% Mode 1 81.4% 76.6% 71.6% 4.5% 2.9% Mode 2 12.8% 14.7% 17.0% 28.7% 27.3% Mode 3 5.8% 8.7% 11.4% 48.4% 44.3% Total Mode 2 + 3 18.6% 23.4% 28.4% 9 Copyright © 2019 HCL Technologies Limited | www.
Slide 10: Revenue Momentum Continues …
Revenue Momentum Continues … Q4 FY 2019 FY 2019 Particulars (QoQ CC) (LTM CC) Consolidated for the Company 3.3% 11.8% ▪ During Q4 FY’19, Infrastructure Mode 1 2.5% 4.5% services delivered solid growth Mode 1-2-3 Mode 2 14.3% 28.7% of 7.3% QoQ CC on back of robust Mode 3 -7.6% 48.4% 10.4% sequential
Slide 11: Client Trends
Client Trends Category (in $ M) Concentration (in %age) 31-Mar-18 31-Mar-19 31-Mar-18 31-Mar-19 top 10 17.0% 100+ 8 5 14.7% clients 29 50+ 25 top 24.1% 40+ 34 38 10 22.1% clients 10+ 166 153 top 33.4% 5+ 246 283 20 32.9% clients 11 Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 12: Key Analyst Recognitions - Mode 2
Key Analyst Recognitions - Mode 2 56 Mode 2 reports mentions in FY19; 51% increase over FY18 Challengers in Gartner Magic Quadrant for Challengers in Gartner Magic Quadrant for ‘Leader’ in the Forrester Wave™: CRM and CX implementation Services Data and Analytics Global IoT Services Wave for Connect
Slide 13: FY20 Business Trends
FY20 Business Trends Market Opportunities Technology Trends ▪ Digital Transformation to grow 18% to $1.2 T ▪ Every Business is Software Defined at its in 2019 core now - Technology led business models in every vertical ▪ New Technologies to grow at 14.5% CAGR. Traditional Products & Services to grow
Slide 14: FY20 Business Trends
FY20 Business Trends Geopolitical factors Cost Drivers ▪ Delays in visa processing / Increase in ▪ Increase in Industry Attrition – Primarily due rejection rates and Request for Evidence to demand pickup offshore and resource risks/delays demand fulfillment shortage onsite ▪ Shortage of onshore and
Slide 15: Our Core Strategy
Our Core Strategy Scale Growth Opportunities Focused Cost Management Integrated Propositions Localization, Diversity & Inclusiveness 15 Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 16: Financial Updates
Financial Updates Prateek Aggarwal Chief Financial Officer 16 Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 17: Performance Summary
Performance Summary Fiscal Year 2018-19 Quarter ended Mar 31, 2019 YoY QoQ Revenue $8.63B 10.1% Revenue $2.28B 3.5% Growth in CC 11.8% Growth in CC 3.3% EBIT $1.68B 8.8% EBIT $0.43B 0.1% EBIT% 19.5% EBIT% 18.9% Net Income $1.44B 5.9% Net Income $0.36B 0.1% 17 Copyright © 2019 HCL Technologies Limite
Slide 18: Balanced Portfolio (FY'19)
Balanced Portfolio (FY’19) Mode 1-2-3 Geography Verticals 11% 7% 17% 28% Mode 1 Americas 8% Mode 2 64% Europe 10% 22% 72% Mode 3 RoW 11% 19% 13% 18% Services Financial Services Technology & Services 5% Infrastructure Services Manufacturing 25% 37% Application Services Lifesciences & Healthcare Publi
Slide 19: Strong-Bridge Envision Acquisition
Strong-Bridge Envision Acquisition ▪ Business ▪ Headquarters Digital Transformation Strategy Consulting, Agile Seattle (Washington) and Denver (Colorado) Program Management and Organizational Change Management ▪ Employees ~200 ▪ Revenue (across Seattle, Denver, Atlanta and New York) $45.6 M in CY18
Slide 20: Cash Conversion (OCF & NI)
Cash Conversion (OCF & NI) Profit to Cash Conversion 1441 ▪ Net Income to Operating Cash 1340 Flow conversion healthy at 93%. ▪ Announces dividend of ` 2 per share, 65th consecutive quarter of dividend payout. ▪ Payout ratio for FY’19 stands at $M healthy 52.6%. FY'19 Net Income Operating Cash Flow
Slide 21: Guidance
Guidance Revenue Operating Margin (EBIT) FY’20 Revenues are expected to grow FY’20 expected Operating Margin between 14.0% to 16.0%* in Constant (EBIT) range is from 18.5% to 19.5% Currency *Revenue Guidance is based on FY’19 (April to March) average exchange rates The above constant currency guidan
Slide 22: Q&A
Q&A 22 Technology for the Next Decade, Today. Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 23: HCL Technologies at a Glance
HCL Technologies at a Glance 23 Technology for the Next Decade, Today. Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 24: The Fastest Growing Global Technology Company
The Fastest Growing Global Technology Company Key Differentiators Product Engineering DNA $8.6B REVENUE Digital at Scale 137,000+ Partnership Ecosystem IDEAPRENEURS Innovative Business Constructs 44 140 COUNTRIES NATIONALITIES Relationship Beyond the ContractTM 24 Technology for the Next Decade, Tod
Slide 25: HCL 2030 Platform Launched at World Economic Forum
HCL 2030 Platform Launched at World Economic Forum ▪ HCL 2030 platform was launched to drive thought leadership, executive dialogue, and strategic solutions to key challenges facing business, society, and technology over the next decade – with a focus on implementing practical solutions today. ▪ HCL
Slide 26: Culture of 'Giving Back': Corporate Social Responsibility
Culture of ‘Giving Back’: Corporate Social Responsibility HCL partners with non-profit organizations around the world to strengthen the communities that we work, and live in. 26 Technology for the Next Decade, Today. Copyright © 2019 HCL Technologies Limited | www.hcltech.com
Slide 27: Culture of Ecosystem Experiences: Global to Local Platforms
Culture of Ecosystem Experiences: Global to Local Platforms HCL Concerts at HCL Ecosystem Brand Narrative HCL at MWC’19 Carnegie Hall Experience Week Refresh #Celebrate30withUS – #HCLatDavos – HCL 2030 and Global 2 Local campaigns #FCDavosDialogues at WEF 2019 #UnitedByHCL HCL & VOR Digital Story #M
Slide 28: Diversity and Inclusion
Diversity and Inclusion As one of the two global strategic sponsors, HCL celebrated International Women’s Day HCL runs the Women Lead program to with events across 21 offices globally, designed around its Diversity & Inclusion theme mentor the next generation of women #BalanceforBetter. leaders 28 T
Slide 29: $8.6 Billion Enterprise | 137,000 Ideapreneurs | 44 Countries
$8.6 BILLION ENTERPRISE | 137,000 IDEAPRENEURS | 44 COUNTRIES