Wipro Limited · NSE:WIPRO
Wipro — Q3 FY2009-10 Earnings Presentation
30 slides from Wipro's earnings presentation, December 2009
Slide 1: Wipro Limited Presentation to Investors Oct-Dec 2009
Wipro Limited Presentation to Investors Oct-Dec, 2009 1
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: Agenda
Agenda •What is our track record on performance? •What is the overall Market Opportunity? •What differentiates us today? •What is our strategy to remain differentiated tomorrow? 3
Slide 4: Wipro has grown revenue at a 34% CAGR and Net Income at a 30% CAGR
Wipro Ltd has grown revenue at a 34%* CAGR and Net Income at a 30%* CAGR for the last 5 years 1. Incorporated in 1945 – Businesses include • IT Business; • Consumer Care & Lighting; • Infrastructure Engineering 2. Total Employees 100,000+ 3. IT Services revenue touches $4.3 billion •Wipro Corporatio
Slide 5: Wipro's IT Services Business has grown at a CAGR of 34% in the last 5 years
Wipro’s IT Services Business has grown at a CAGR of 34% in the last 5 years Rev for IT Services IT Services ($M) + Products is 4323 $4.9B in 2008-09 3647 2611 1952 1458 1011 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 § Partner to Industry Leaders § 822 active global clients as of December 31, 2
Slide 6: Highlights of the Quarter ended Dec 31, 2009
Highlights of the Quarter ended Dec 31, 2009 Revenue Highlights • Wipro Limited Revenue grew by 5% YoY to Rs. 69.66Bn • IT Services Reported Revenue at $1,126.8Mn, sequential growth of 5.8%. Constant currency revenue came at $1,117.1Mn, sequential growth of 4.9% • Among verticals, Healthcare & Servi
Slide 7: Agenda
Agenda •What is our track record on performance? •What is the overall Market Opportunity? •What differentiates us today? •What is our strategy to remain differentiated tomorrow? 7
Slide 8: Off-shoring to India Still Remains a Very Small Part of the Overall Spend
Off-shoring to India Still Remains a Very Small Part of the Overall Spend Global Technology Related Spend & India’s Current Exports ($ Billion) 1558 Indian Exports As % of Global Spend 886 ~5% ~11% ~1% ~3% 557 46.3 26.5 115 12.7 7.1 IT Services BPO R&D / Engineering Total 2008 India IT exports FY09
Slide 9: India Off-shoring market is expected to grow at a CAGR of ~13-19% through 2020
India Off-shoring market is expected to grow at a CAGR of ~13-19% through 2020 ~225-310 India’s offshore IT and BPO exports ($B) With Focused CAGR of Initiatives 29% ~175 & Innovation ~60 46.3 25.0 40.3 12.8 31.4 10.9 23.6 8.4 With Current 17.7 6.3 Initiatives 4.6 34.5 35.0 6.2 29.4 23.0 0.9 13.1 17
Slide 10: Agenda
Agenda •What is our track record on performance? •What is the overall Market Opportunity? •What differentiates us today? •What is our strategy to remain differentiated tomorrow? 10
Slide 11: What differentiates Wipro today?
What differentiates Wipro today? 1• Broad based portfolio across Verticals, Geographies, Service Lines and Customers 2• Strong ($1B) and Established (20+ years) presence in some of the key growth markets – India & Middle East 3• A complete, integrated portfolio of services 4• Leadership in R&D – wor
Slide 12: Strength of a broad based portfolio
Strength of a broad based portfolio Revenue contribution of Top customers for Q3’09-10 Customer Concentration (% of revenue) Top customer 2.6% Top 5 10.8% Top 10 19.5% • No customer contributing more than 3% • 398 customers with $1 million revenue on trailing 12 month basis • Diversified Vertical po
Slide 13: India & Middle East – A comprehensive IT Services Portfolio
India & Middle East – A comprehensive IT Services Portfolio 1. Revenue of Rs. 47 billion ($1.1 billion*) ;Yoy Consulting Process, IT Governance, e- revenue growth of 34% and EBIT growth of 35% Governance, Security, Strategic Cost Reduction 2. Leadership position in India, pioneer in Middle Business
Slide 14: Global TOS – A complete, integrated portfolio of services
Global TOS – A complete, integrated portfolio of services TIS – A Complete Portfolio of Services Consulting Technical Enterprise Managed & Managed Managed Main-frame Support Service Security Sys Services Hosting Services Services Mgmt Services Integration • Transformational Outsourcing IFOX § Changi
Slide 15: Leadership in R&D
Leadership in R&D Leadership in R&D business § Revenue of $867 million for 2008-09 § 18000+ talent pool engaged in R&D Services § Largest player based on headcount § World’s largest independent team of Hardware Design Engineers of 1,900 § Leaders in Telecom OEM § Addressing new segments through this
Slide 16: Agenda
Agenda •What is our track record on performance? •What is the overall Market Opportunity? •What differentiates us today? •What is our strategy to remain differentiated tomorrow? 16
Slide 17: How do we see the Market Evolving?
How do we see the Market Evolving? The only constant is change 1.Reducing the structural cost of IT will be among the top CIO priorities 2. Move from Information Technology to Business Technology offerings with increased focus on transformation through consulting, system integration Changing 3. IT c
Slide 18: We continue to invest in our people, capabilities and new technologies
We continue to invest in our people, in our capabilities and in new technologies while always keeping the customer first Horizon – 1 Horizon – 2 Horizon – 3 12-18 months 15-36 months 24-48 months Focus on new Business Models/Technologies - Cloud, Automation, etc Build Deliver & Expand Transformation
Slide 19: We will execute on our strategy by driving key tracks
We will execute on our strategy by driving 5 key tracks 1• Delivered by a focused Client Engagement Program. 2• Innovating services & delivery models 3• Robust Services Roadmap • Technology Innovation 4• Globalization • Delivery and Work Force • Markets 5• In-organic Growth 6• Mega Alliances 19
Slide 20: Structured and focused client engagement program
1 Structured and focused client engagement program CEM as CEO of Sales Process the Account Excellence Large Account focus MEGA & GAMMA PROGRAM Advisor Consulting led Relationships engagements 20
Slide 21: Innovating services & delivery models
2 Innovating services & delivery models • Flex Model: • Productized Activity based Solutions • Cigma: Process • Process based based Solutions IPs, • GCC: Element Based Flex Solutions Delivery and Frameworks Differentiated SDLC Services Accelerators • System • Process Integration Accelerators • Speci
Slide 22: Driving a robust Services Roadmap - Technology Innovation
3 Driving a robust Services Roadmap - Technology Innovation Transforming enterprise applications & infrastructure Cloud Environments to operate in hybrid cloud Collaboration Deliver business process efficiency & enhanced user experience for global enterprises Green Technologies Achieve sustainabilit
Slide 23: Globalization – Delivery & Workforce
4a Globalization – Delivery & Workforce Strategic Best in Class Delivery Global Centres Leadership Globalization Workforce localisation Strategic Acquisitions Strengthening Global Presence Continue to globalize our markets, delivery centers, teams and leadership 23
Slide 24: Globalization – Markets
4b Globalization – Markets Medium Term • Strong Presence in India, Australia & • Market Middle East developments & presence in LATAM & China • Scale in LATAM and China Longer Immediate Term Continue to invest to globalize our markets presence 24
Slide 25: 'String of Pearls' Inorganic Growth Strategy
5 ‘String of Pearls’ Inorganic Growth Strategy Key Principles Key Transactions Infocrossing • Pan-US local Hosting capabilities with a Managed Services layer providing a significant competitive advantage in large • Enhancing domain & TOS deals technology competence • Expanding Service Line portfolio
Slide 26: Driving Mega Alliances – Leveraging differentiated channels
6 Driving Mega Alliances – Leveraging differentiated channels to deliver customer needs 1. Enhanced customer value proposition 2. Improved customer penetration and global go-to-market 3. Co-innovation and Co-creation of Solutions 4. Emerging Market Focus 5. Synergistic Partnership ecosystem for the
Slide 27: In Summary
In Summary New Normal 21st Century Corporation Investing to meet the needs of tomorrow Markets Domains Technology India/ Middle Healthcare Cloud East Govt./Defense Collaboration China / Security Green Latam 27
Slide 28: Key Quarter highlights of Other Businesses
Key Quarter highlights of Other Businesses 28
Slide 29: Highlights for the Quarter ended Dec 31, 2009
Highlights for the Quarter ended Dec 31, 2009 IT Products Wipro Consumer Care and Lighting • IT Products business recorded Revenues of Rs. 10.02 • Recorded Revenues of Rs. 6.01 billion, a growth of billion, a growth of 20% YoY 14% YoY and PBIT of Rs. 740 million, a growth of • PBIT grew by 34% YoY t
Slide 30: Thank You
ThankYou WIPRO Applying Thought