Zensar Technologies Limited · NSE:ZENSARTECH
Zensar Technologies — FY2006 Earnings Presentation
27 slides from Zensar Technologies's earnings presentation, Apr 21, 2006
Slide 1: Success through Innovation
Success through Innovation April 21, 06
Slide 2: What is Zensar
What is Zensar www.zensar.com Zen + Sar The essence of knowledge A software solutions company servicing Fortune 500 clients Listed on the Indian stock exchanges (Bombay Stock Exchange and National Stock Exchange) • SEI CMMI Level 5 • 23 locations across the globe • 3000 employees • 100+ customers •
Slide 3: More About Us
More About Us… www.zensar.com • Among the Top 100 Global Outsourcing Companies International Association of Outsourcing Professionals (IAOP 2006) • Among India’s top 25 software companies -Nasscom 2006 • First in the world to achieve Enterprise-wide SEI-CMM Level-5 (1999) CMMI-Level-5 (2004) • Among
Slide 4: Our Customer Landscape
Our Customer Landscape Financial Services Retail Manufacturing & Logistics Telecom & Utilities Products www.zensar.com Others Zensar 2006
Slide 5: Global Operations Delivery Centres
Global OperationsDelivery Centres www.zensar.com Global Presence India, Corporate HQ & Delivery Centre Shenzhen, China UK Finland Princeton Germany Chicago Global Delivery San Jose Japan Switzerland Centre Cary UAE Irvine Hong Kong Hyderabad Irving Mexico Singapore Hyderabad, Sales Office India Sout
Slide 6: Our Services
Our Services www.zensar.com Application Portfolio Management Enterprise Application Services (APM) (EAS) • Application Development • ERP Services (Oracle, SAP) • Application Support & Maintenance • BI/DW Services • Testing Services • ECCM Services Zensar’s integrated IT • Infrastructure Management S
Slide 7: Our Domain Expertise
Our Domain Expertise www.zensar.com Financial Services Retail Logistics Manufacturing Pharma Utilities Zensar 2006
Slide 8: Major Engagements
Major Engagements www.zensar.com 3-5 yr old accounts Universal Weather Marks & Spencer Danaher group >5 yr old accounts Global Payments EDS mValent Cisco NG Maersk (PONL) 1-3 yr old accounts Fujitsu Ecom Logitech Investec CS Videojet Electronic Arts Nomura Research Institute AskMe Trema Talgentra Te
Slide 9: Walking the Talk
Walking the Talk
Slide 10: The Last Five Years
The Last Five Years Parameter 2001/02 2002/03 2003/04 2004/05* 2005/06 www.zensar.com (Rs Cr) Revenue 187 228 267 345 428.79 EBITDA 21 24 26 35 58.74 PBT 11 16 17 22.5 41.66 Offshore 24.1% 31.7% 38.4% 42.8% 45.9% Business Annuity ODC 6 8 11 14 18 clients % ODC 32% 35% 41% 48% 58% business In Rs Cr *
Slide 11: The Last Five Quarters
The Last Five Quarters www.zensar.com 130 125.23 18 16.88 120 16 109.28 110 14 99.35 100 94.93 12 91.85 10 90 9.29 8 80 6 70 4.4 4 3.93 60 2 50 0 -1.01 40 -2 QIV FY 04-05 QI FY 05-06 QII FY 05-06 QIII FY 05-06 QIV FY 05-06 Revenue PAT (after removing impact of exceptional items) In Rs Cr Zensar 20
Slide 12: Zensar's Strategy – since Jan 2005
Zensar’s Strategy – since Jan 2005 • Drive core business for profit growth and develop new www.zensar.com services for volume growth • Complement organic growth with inorganic growth through acquisitions and alliances • Focus on profitability while sustaining growth • Develop a reputation for Innova
Slide 13: Performance of FY 05-06
Performance of FY 05-06 www.zensar.com % Actual Change Particulars ( Rs lakhs) Year Year Ended Ended Y on Y Mar05 Mar06 Revenue 42879 34489 24.3 Profit before Tax 4166 1954 113.2 PBT% 10% 6% Profit after Tax 3393 1802 88.3 PAT% 8% 5% Excluding land sale In Rs Lakhs Zensar 2006
Slide 14: Business Highlights – FY
Business Highlights – FY 06 www.zensar.com • Best ever profit performance in the history of the company • Signed a 30 mn $ multi-year offshore agreement with Fujitsu and the new center to employ 1000 people over three years • Cisco partnership now 500 person strong • Expanded customer base to includ
Slide 15: Business Highlights – FY
Business Highlights – FY 06 www.zensar.com • Celebrated completion of a 12 year partnership with National Grid • Launched a large multi-million Application Modernization project in collaboration with Nomura • Chosen as Credit Suisse’s global service provider • Danaher and M&S partnerships leveraging
Slide 16: Operational Highlights – FY
Operational Highlights – FY 06 www.zensar.com • Embarked on the SBP-enabled VGDC model – a delivery model of the future • Achieved BS7799 certification that establishes new global standards for Information security • Launched new COEs to set higher standards for operational efficiency • Established
Slide 17: Innovation @ Zensar: The underlying strength
www.zensar.com Innovation @ Zensar: The underlying strength Zensar 2006
Slide 18: Success of SBU Strategy
Success of SBU Strategy www.zensar.com • Profit center based empowerment provides enhanced profitability and accountability • Service line based segregation leading to innovative processes • Enhanced service delivery capabilities • Focused customer engagement Zensar 2006
Slide 19: SBU Structure Showing Results
SBU Structure Showing Results www.zensar.com FY 05-06 FY 05-06 Revenue EBIDTA APM 251.72 50.68 ITS 57.86 3.49 BPO 9.85 (5.50) EAS *93.00 *6.27 Prof. Services 16.36 0.23 Total 428.79 41.66 * Incl OBT In Rs Cr Zensar 2006
Slide 20: Solution BluePrint: Our Innovative Framework
Solution BluePrint Our Innovative Framework www.zensar.com Standard Processes and Practices Matrix Guidelines Repository B Vertical Specific BluePrints Foundation U Solution Patterns Library S S I O N L Requirements Design Deployment Platform1 U E Development Testing Study T S S Platform2 I O Modeli
Slide 21: Strategy for Sustained Growth
Strategy for Sustained Growth www.zensar.com Business growth ------ Create a portfolio of services for future growth Develop new business for volume growth Drive core business for profit Specialized growth New Core Timeline ------ Zensar 2006
Slide 22: Future-Proof Services Portfolio
Future-Proof Services Portfolio www.zensar.com Core Services New Services Specialized Services Businesses Businesses currently driving Incubating businesses that drive growth and new customer acquisition and that will provide profitability today expected to drive significant differentiation over the
Slide 23: The Benefits of Innovation
The Benefits of Innovation www.zensar.com • Application Modernization, Product Engineering Services, BI/DW, SAP Templates, Testing and BPO / KPO services identified as areas for Exploration to create 2006-08 revenues. • All other services have reached critical mass and are ready for Exploitation to
Slide 24: Future Growth of Services
Future Growth of Services www.zensar.com in Crores 450 CAGR 20% CAGR 60% 400 350 300 250 200 150 100 50 0 FY08 Exploitation FY07 Exploration FY06 Services Services Zensar 2006
Slide 25: Our Vision Translated to Numbers
Our Vision Translated to Numbers…. www.zensar.com Parameter FY 05-06 FY 06-07E Revenue (Rs cr) 429 550 PBT (Rs cr) 42 60 (9.6%) (10.9%) Revenue Growth 24% 30% Offshore Business 46% 48% Repeat Business 91% 85% Top 10 customers 68% 65% contribution Zensar 2006
Slide 26: Our Focus
Our Focus • Provide our customers and other stakeholders ‘more bang www.zensar.com for the buck’ • Retain flexibility and agility while scaling capabilities and services • Integrate IT and BPO capabilities to offer end-to-end business solutions • Scale our global delivery model to build global diver
Slide 27: Customer Transformation: GPW '06
Customer Transformation : GPW ‘06 www.zensar.com Zensar 2006