L&t Technology Services Ltd. · NSE:LTTS
L&t Technology Services — Investor Day (August 2024)
101 slides from L&t Technology Services's investor day presentation, Aug 27, 2024
Slide 1: Exchange filing cover letter
L&T Technology Services Limited A.M. Naik Tower,6th Floor, L&T Campus, Gate No.3, Jogeshwari-Vikhroli Link Road, Powai, Mumbai-400072. www.ltts.com August 27, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers, Bandra (East), Mumb
Slide 2: Strategy & Aspirations
Strategy & #GoDeeperToScale Aspirations Amit Chadha CEO & MD, LTTS Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 1
Slide 3: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 4: Agenda
Agenda 01 Global ER&D Market 02 Technology Landscape LTTS Journey Investor & Analyst Day 03 (IAD) 2024 04 Strategy & Direction 05 Our Aspiration IAD 2024 | www.LTTS.com 3
Slide 5: We Are Witnessing a Transient World
We Are Witnessing a Transient World… 01 People Migration Digital & AI Everything 04 Displacement surged to 110M in AI & Automation investment exceeded 2023; Altering the Global Consumer $150B in 2023[McKinsey] profile [UNHCR] IoT devices reached 15B in 2023 [IDC] 02 Alternate Supply Chains High Inte
Slide 6: Macro-Economic Factors
Macro-Economic Factors World GDP ($T) 139* 109.5 79.6 87.5 10 Yrs. Ago 5 Yrs. Ago Now Next 5 Yrs. Global consumer Spend ($T) 77.2 57.7 44.4 48.8 10 Yrs. Ago 5 Yrs. Ago Now Next 5 Yrs. Global Population (B) 8.5 8.2 7.8 7.4 10 Yrs. Ago 5 Yrs. Ago Now Next 5 Yrs. Source: IMF, World Bank, UN 5 IAD 2024
Slide 7: Creating a Runway for ER&D Growth
Creating a Runway for ER&D Growth…India Outsourcing to Grow 17 - 22% Macro-Economic Factors ER&D Addressable Market: India as a Destination is Sold World GDP ($T) 139* Global ER&D Spend 109.5 $2.5T – $3.3T 87.5 Global ER&D Spend 79.6 ER&D Sourcing $1.5T – $1.8T Global ER&D Spend $600B – $770B ER&D S
Slide 8: Predicated by the Changing Technology Landscape
Predicated by the Changing Technology Landscape h for Manufacturing Responsib Tec ly Embedded Intelligence in AI enabled Robots Industrial Equipment Te Clean Tech Alternate Fuels ch T ha tA Us Software Defined cc Plant Digital Twin ele Machines s Green Hydrogen ove 6G rat Next Gen Motors Green Facil
Slide 9: Our Billion Dollar Journey
Our Billion Dollar Journey… 2009-2011 2012-2014 2015-2017 2018-2020 2021-2023 2024 Competency based growth, Transformed to Embedded We are now a New-Age Digital LTTS Metamorphosis: and Digital business… Technology Company! led by Mechanical Services… Mega Events Financial Crisis Pandemic Survive & b
Slide 10: Our Billion Dollar Journey
Our Billion Dollar Journey… 2009-2011 2012-2014 2015-2017 2018-2020 2021-2023 2024 Competency based growth, Transformed to Embedded We are now a New-Age LTTS led by Mechanical and Digital business… Digital Technology Company! Metamorphosis: Services… Mega Events Financial Crisis Pandemic Survive & b
Slide 11: LTTS 3.0: Pivoting on Our Go Deeper to Scale Strategy
LTTS 3.0: Pivoting on Our “Go Deeper to Scale” Strategy… Go Deeper to Scale IAD 2024 | www.LTTS.com 10
Slide 12: Led by an Experienced and Proven Global Leadership Team
Led by an Experienced and Proven Global Leadership Team CEO & MD Executive Director Executive Director CFO CTO CHRO CMO Strategy Segments Mobility Sustainability: Sustainability: Tech: Tech: Tech: Regions Process Industrial CMT MedTech Smart World Horizontals Digital Mfg. Services AI & S/W Defined E
Slide 13: How Will We Get There
How Will We Get There… GROWTH VECTORS 01 02 03 04 05 Create Billion-dollar Enhance Client Nurture Experience to Grow Co-Create Value Invest in Technologies Segments “Engineers at ” Relationships Through Large Deals Ahead of the Curve for Inclusive Growth Offerings in Digital, Standardize on the Clie
Slide 14: Create Billion-Dollar Segments
Create Billion-Dollar Segments… 100+ 160+ 110+ Global Clients Global Clients Global Clients 45+ 30+ 40+ Labs Labs Labs Overview Mobility Sustainability Tech 315+ 500+ 600+ Patents Patents Patents 8/10 6/10 8/10 G-ER&D 100 G-ER&D 100 G-ER&D 100 Growth Rate 19% CAGR 13% CAGR 18% CAGR Projects Engineer
Slide 15: Enhance Client Experience to Grow Relationships
Enhance Client Experience to Grow Relationships G45: Client Lifetime Value Journey Program Leading to Growth Across Account Pyramid Zero Defects quality of engagements 60 Of Our Clientele… Top 100 Transparent QBRs with quality matrices Global ER&D Spenders 2 Multi-Touchpoints across Client personas
Slide 16: Co-Create Value Through Large Deals
Co-Create Value Through Large Deals We have been winning Significant Deals… We have Re-wired our Large Deal Engine for 2X Pipeline infusion $50M - $ 100M Deals Luxury car manufacturer Funnel Mgmt. high end engineering services for suite Governance of infotainment consoles Advisory |SMEs Proposal Mgm
Slide 17: Invest in Technology Areas Ahead of the Curve
Invest in Technology Areas Ahead of the Curve We have gone from filing 50 Patents/Year in FY21 to 50 Patents/Quarter for the last three years Inventory Management Engineering Lifecycle Lifecycle Analysis & Product Redesign Forecasting Inventory Equipment Compliance & Management Maintenance Documenta
Slide 18: Nurture Engineers for Inclusive Growth
Nurture “Engineers at ” for Inclusive Growth Grooming Young Talent-on-Tap Proliferating a Culture of Innovation and providing a GEA: Building Cross-Domain Technocrats for Tomorrow Recruitment Engine Tech-track for Growth Engineers at Scale Innovative Recruitment Model • AI enabled Hiring platform •
Slide 19: Validating our Journey and Progress
Validating our Journey and Progress… Zinnov: Digital Engineering and ER&D Services- Awards and Accolades Overall ER&D Ratings 2023 Innovative Innovation in Company of the Best Edge EV Charging Management Year of the Year, Infrastructure 2024 by ET NOW Framework, EDGYneer, 2023 Winner of the Nasscom
Slide 20: We Continue to Touch Lives in Meaningful Ways
We Continue to Touch Lives in Meaningful Ways … FY24 Impact Education & Sports for Health Water Environment Skill Development Differently Abled 23,700+ 44,100+ 2,300+ 150+ 6,700+ IAD 2024 | www.LTTS.com 19
Slide 21: Our Aspiration LTTS 3.0
Our Aspiration…LTTS 3.0 Medium Term Outlook Top 5 Global ER&D 01 Services Company Revenue $2 B EBIT 17 - 18% 02 3 Billion-dollar segments Revenue $1,164 M EBIT Revenue 17.1% 03 Technology Partner of Choice $737 M EBIT 14.5% 04 2500+ Patents Values Driven, Inclusive, 05 Client Centric Organization FY
Slide 22: Thank You
‘Go Deeper to Scale’ Purposeful. Thank You Agile. Engineering. Investor & Analyst Day (IAD) 2024 IAD 2024 | www.LTTS.com 21
Slide 23: Mobility
#GoDeeperToScale Mobility Alind Saxena Executive Director & President – Mobility & Hi-Tech Shailendra Shrivastava Chief Segment Officer - Mobility IAD 2024 | www.LTTS.com Investor & Analyst Day 20241
Slide 24: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 25: Mobility Segment
Mobility Segment 8000+ 300+ 20 M+ Engineers Patents Vehicles Engineered OMOTIVE AUT 2021 2022 2023 2024 6 of 10 Top Automotive 5 Yr. 5G networks for Empaneled as Hub established Infotainment urban railways SDM Partner in Munich deal with EU with EU Auto OEM OEM 90M+ Auto-Tier- Global Strategic SDM &
Slide 26: Key Market Growth Drivers
Key Market Growth Drivers AUTO T&OH AEROSPACE & RAIL Market Size by 2030 $3 T $2 T $1 T Global ER&D $300 B $540 B $280 B $120 B Spend $160 B $70 B 2023 2030 2023 2030 2023 2030 Key Growth • Software Defined Mobility – • Sustainability – Drive towards • Short Haul Flights - Urban Air Drivers Feature-
Slide 27: Our Strategic Areas
Our Strategic Areas 1 2 3 SOFTWARE DEFINED MOBILITY ELECTRIFICATION & HYBRID TECH VEHICLE ENGINEERING Onboard Offboard Powertrain Body Engineering Avionics Energy Function Flight Control, In-Flight EE Architecture & Connected Services Alternate Fuel & Platforms, Interiors & BMS, Packaging Entertainm
Slide 28: Software Defined Mobility
Software Defined Mobility 1 DEVELOPMENT FRAMEWORK | SOLUTIONS | ACCELERATORS | LABS EvQUAL EmbedVIO ONBOARD OFFBOARD Digital Cockpit AV Stack & Algorithms Data Management & OTA App Store & App Engineering IAD 2024 | www.LTTS.com 6
Slide 29: Electrification & Hybrid Tech
Electrification & Hybrid Tech 2 6 OEMs / 10 Tier-1s Globally 50+ Production Programs KEY ENGAGEMENTS Battery Pack & BMS NA Auto Tier-1 - Strategic EV Engineering partner NA construction & mining OEM - High voltage 800V EV platform development eVTOL OEM – e-propulsion design & simulation Onboard Char
Slide 30: Electrification & Hybrid Tech
Electrification & Hybrid Tech 2 LABS Electrification Lab Power Electronics Lab ACCELERATORS Vehicle Control Unit Software Motor Control SOLUTIONS AL-Air Wireless Onboard Vehicle Control Integrated LTTS Fuel Cell Unit Battery BMS Charger Inverter & Motor IAD 2024 | www.LTTS.com 8
Slide 31: Vehicle Engineering
Vehicle Engineering 3 50+ OEMs & Tier-1s Avionics 80+ Production Programs KEY ENGAGEMENTS NA/Japanese OEM - 5+ Model Year program NA powersport OEM - NPD from concept to SOP Global Aero OEM - Simulation CoE & EMES3 partner ALLIANCES & PARTNERSHIPS Body Engineering IAD 2024 | www.LTTS.com 9
Slide 32: Vehicle Engineering
Vehicle Engineering 3 Avionics Body Engineering HuD display SW Flight Control Computer Haptics on Soft Trims Platform Commonization development Digital Manufacturing AI/GenAI Powered Product Development Product Design Assistant Information from internal documentation DVP AI assistant Design Verifica
Slide 33: Multi-Geo Engineering Strategy
Multi-Geo Engineering Strategy Mobility Design Centers Gothenburg, Sweden Munich, Germany Plano, Texas Rockford, Illinois London, UK Krakow, Poland Santa Clara, California North Europe America Dublin, Ohio Tokyo, Japan Detroit, Michigan Row Toulouse, France Peoria, Illinois India Santa Clara Peoria
Slide 34: Large Deals - Strong Momentum
Large Deals - Strong Momentum North America Europe APAC & Japan $180 M $142 M $25 M $347 M 15 x 10M+ deals preceding 5 quarters $195 M $128 M $24 M 8 x 10M+ deals 6 x 10M+ deals 1 x 10M+ deals 4 from Top 10 OEMs & 1 from OEM & Including deals from Top 5 2 from Top 10 Tier-1s 3 from Top 5 Tier-1s OEM
Slide 35: The World has Taken Notice
The World has Taken Notice… Everest: ACES Automotive Engineering Services ─ Electric 2023 ISG: Product Engineering - Autonomous, Connected, Electric & Shared Rated as leaders across Connected, Electric, Autonomous & Aerospace segments IAD 2024 | www.LTTS.com 13
Slide 36: Recognized us as a Trusted ER&D Partner
… and Recognized us as a Trusted ER&D Partner Awards and Accolades Innovation in EV Partner-level Charging Collins Top Supplier of John Deere Supplier Aerospace the Year Infrastructure LTTS in the News BlackBerry Thales Airbus Forvia Collaboration to Revolutionizing Collaboration to Established Stra
Slide 37: Where will the Growth Come from
Where will the Growth Come from Software Defined Electric Vehicle Engineering + Mobility Vehicle Avionics Revenue: $1 B Software Defined Mobility - Hypergrowth $382 M EBITDA: 20% - 22% Revenue • Transformation partner • Differentiated Solutions & frameworks 19.6% EBITDA • Alliances with Hyperscalers
Slide 38: Thank You
Purposeful. Agile. Engineering. Thank You #GoDeeperToScale IAD 2024 | www.LTTS.com Investor & Analyst Day 2024 16
Slide 39: Sustainability
#GoDeeperToScale Sustainability Subrat Tripathy Chief Segment Officer – Process Srinath Nagarur Chief Segment Officer – Industrial Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 1
Slide 40: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 41: Sustainability | A Global Phenomena and a Growth Market
Sustainability | A Global Phenomena and a Growth Market “Sustainability is to create and maintain the conditions under which humans and nature can coexist to support present & future generations.” ● Environmental ● Economical ● Social Evolution of Sustainability UN SDG Sustainability Indicators Mode
Slide 42: Trends | Higher Demand Driving Capex & Technology Adoption
Process Trends | Higher Demand Driving Capex & Technology Adoption ~ $1.1 T ~ $460 B ~ $980 B c Global CAPEX in Global CAPEX in Global CAPEX in 2030 - expected to 2030 - expected to 2030 - expected to grow from $800 B grow from $250 B grow from $720 B in 2023 in 2023 in 2023 Oil & Gas Chemicals FMCG
Slide 43: Our Strategic Areas
Process Our Strategic Areas Opportunities Projects Engg. - Green & Brownfield Projects Engineering- Sustainable Increasing Capex inflow in Consumerism & Glocal Green & Brownfield Manufacturing demand for conventional energy customization initiatives EPCm Sustainable Manufacturing Emission Net-Zero –
Slide 44: Our Differentiators and Future Proofing
Process Our Differentiators and Future Proofing Future Proofing Our Leadership Position Nearshore Engine / LEP & Tech Partners One-stop shop for Reusable templates Ability to address Automation for engineering and digital & solutions - inject global demand with Productivity – AI, AR/VR for plants au
Slide 45: Impactful Credentials
Process Impactful Credentials Global $100 Mn Deal Owned & Delivered with Clientele an O&G major in NA Partnership with bp Global O&G engagement | Engineering, IPA Plant | Brownfield Expansion | Scanning | Massive Edible Oil Refinery | Rough terrain, 5 Projects, Operations, Procurement & Site Service
Slide 46: Our Growth Vectors
Process Our Growth Vectors Focus Areas Digital Technology 2-3x Growth in Automation Digital Tech • Predictive Maintenance • Asset Health, Reliability & and Digital Technology 15-20% • Overall Equipment Integrity Effectiveness (OEE) • Digital Twin Solutions • Plant Operational Safety Plant Modernizat
Slide 47: Trends and Customer Focus Areas
Industrial Trends and Customer Focus Areas ~ $300 B ~ $1.9 T ~ $1.2 T Global Electrical Global Machinery Global Green Controls Market Market in 2030 Facilities Market in 2030 in 2033 Electrical Power & Controls Machinery Building Technology Proliferation of Renewable Energy and its Focus on energy e
Slide 48: Our Strategic Areas
Industrial Our Strategic Areas Opportunities Product Energy Transition Alt+Shift to Platform Solutions Engineering Intelligent Digital Engineering IT-OT Digital Edge Platforms Convergence Thread Manufacturing Modernization Robotics & Virtual Plant Apps & Automation Manufacturing Digitalization Analy
Slide 49: Our Differentiators and Future Proofing
Industrial Our Differentiators and Future Proofing Future Proofing Our Leadership Position 1. Assets 2. Solutions 3. Alliances » Power, Optics , ▪ Axial Flux and Coreless Technology HV Electrical, motors Labs Interact IOT Lab ▪ AI Enabled COE for Smart IIT Microsoft PDEU Power Mgmt. Bombay Gandhinag
Slide 50: Credentials Enabling our Strategic Focus
Industrial Credentials Enabling our Strategic Focus 8 6 4 of the Top 10 of the Top 10 of the Top 5 Global Automation Building Tech Leading Wind Major Intelligent Automation Technology leader in Renewable OEMs Conglomerates Organizations Turbine OEM Conglomerate electrification & automation Electrica
Slide 51: Our Growth Vectors
Industrial Our Growth Vectors Focus Areas Alt+Shift to Platform Solutions Alt+Shift to Platform Solns. • Digital Thread Adaption 2x Growth in Digital Products • Digital Platform and Appn. Engg 15-20% • • Embedded Sustenance Programs – Obsolescence Mgmt. Digital Twin and Connected Products Mfg. Moder
Slide 52: We are Noticed
We are Noticed... Awards and Accolades 'Global Alliance Partner of the Year' by AVEVA Leader among 18 Leaders in Industrial providers in the Manufacturing Smart Innovation in EV Ratings by Zinnov Industry Services by Charging Avasant Infrastructure Leaders in Oil and Gas Industry – Services and Lead
Slide 53: Our Aspiration – Sustainability Segment
Our Aspiration – Sustainability Segment 50 - 55% Product Engineering 10 - 15% Mfg. Modernization 20 - 25% Energy Transition Revenue: $1B 10 - 15% EBITDA: 28% – 30% Alt+Shift to Platform Solutions Revenue: $361 M Industrial EBITDA: 28% FY24 Process Plant Sustainable Modernization Manufacturing & Auto
Slide 54: Thank You
Purposeful. Agile. Engineering. Thank You #GoDeeperToScale Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 16
Slide 55: Tech
#GoDeeperToScale Tech Abhishek Sinha Executive Director & President – Medical, SmartWorld & Functions Seema Ghanekar Chief Segment Officer – Comms, Media and Tech IAD 2024 | www.LTTS.com Investor & Analyst Day 20241
Slide 56: Tech Segment: Hi-Tech & Med-Tech
Tech Segment: Hi-Tech & Med-Tech Med-Tech Hi-Tech • Medical Devices • Semiconductors • Hyperscalers • Pharma • Media and Entertainment • ISV • Life Sciences • Consumer Technology • Smart Cities and Utilities • Telecom Silicon Engineering Device Engineering Platform Engineering System Integration Em
Slide 57: Trends in Med-Tech Industry
Trends in Med-Tech Industry Med-Tech industry is Business Trends Technology Trends expected to grow to $559 B • Favorable government policies • Digital Health by • Increase in the adoption of AI/ML in • SaMD & AI-enabled Medical 2027 Healthcare Devices $257 B $175 B • Margins under pressure • Digita
Slide 58: LTTS Strengths & Focus Areas
LTTS Strengths & Focus Areas Top 10 of 10 Med Device Companies @ NPS: 9.5 Device Engineering AI based Med-Tech solutions AiCE | AiCH | AiTest | Chest-rAi | AiViz 2 Digital Health Platform 263+ Patents | LTTS 71 (27 AI) | Clients 192 Digital AI 1 Powered 3 QARA Strong Partnerships Health Technology L
Slide 59: Differentiators
Digital Health Device Engineering Offerings App & Platform AI & Product Design Value Sustenance DevSecOps Engineering Analytics Services Engineering Support Visual Imaging Clinical decision Connected Robotic Wearable support system Partnerships Surgery framework Devices Solutions Robotic Differentia
Slide 60: Differentiators
Digital Manufacturing QARA Offerings Plant transfer/ Supply chain Regulatory QMS Complaints Automation management consolidation Compliance Support Management Data driven Predictive Smart operations CER Complaints Partnership approach maintenance solutions Quality Control Automation Handling Lean pro
Slide 61: The World has Taken Notice and Recognized us as a Trusted Partner
The World has Taken Notice and Recognized us as a Trusted Partner Connected Medical Device Services LTTS in the news LTTS Collaborates with NVIDIA to unveil Gen AI & advanced Software-Defined architecture for Medical Devices Smart Healthcare: AI detects what the image misses Awards & Accolades Chest
Slide 62: LTTS Med-Tech Poised for Accelerated Growth
LTTS Med-Tech Poised for Accelerated Growth Growth measures Digital Health Strengthen sales in US, 28-33% Europe and Japan 21% QARA Delivery led growth 20% for account mining 28-33% Digital SMEs on ground to harness 22% digital opportunities 37% Digital Manufacturing Large deal themes 20-25% 01 02 0
Slide 63: Hi-Tech – Engineering AI Powered Connected Intelligence
Hi-Tech –Engineering AI Powered Connected Intelligence Enabling clients Semcon Consumer & Media Telecom Hyperscalers & ISV deliver at scale Silicon Engineering AI & HPC Systems NPI & Derivative Device Engineering Products Modern, Connected, Platform Engineering Secure Enterprise Scalable, Smart Syst
Slide 64: Chipping in for Semcon Clients
Chipping in for Semcon Clients Trends Case Study Market Major Semcon Player $850 B+ $100 B+ investment in High Performance GAMM players are exponentially Explosive demand in new markets is • Support in AI chip designs by 2028 Compute (AI driven) increasing silicon necessitating • Working across all
Slide 65: Engaging with Media and Consumer Technology
Engaging with Media and Consumer Technology Trends Case Study Market Leading Smart phone manufacturer $3.5 T+ Cloudification, AI, DevOps for an evolving M&E products becoming more digital, leading to decline in cost • Support in key embedded areas, certification/ verification by 2028 of production a
Slide 66: Connecting the Telecom World
Connecting the Telecom World Trends Case Study Market Bharat Net Programs Increasing focus on Ever-expanding Virtualization $2.5 T+ network optimization & monetization through AI connectivity, XRAN adaptation, edge and operational improvement • Digital infrastructure (scalable, robust & secure) by 2
Slide 67: Growing with Hyperscalers and ISV
Growing with Hyperscalers and ISV Trends Case Study Market Large Cybersecurity ISV $1 T+ Pervasive expansion to devices – Meta, Accelerated adoption AI and analytics Cybersecurity measures • Developed an industry leading OT security by 2028 Google, Amazon product – mentioned in Forrester report • Pr
Slide 68: Focusing on Large Deals
Focusing on Large Deals Strategic wins Market trends & Large deal themes Media platform carve-out 50M+ 5Yrs Platform sustenance & support for global clients Product Vendor Platform Next-Gen Major Semcon major 25M+ carve-outs consolidation & support for product 3Yrs 3 new ODCs for silicon development
Slide 69: Hi-Tech: Credentials and Growth Trajectory
Hi-Tech: Credentials and Growth Trajectory Embedded Engineering - 2024 20-25% System Integration Telecom, Media Platform Engineering 30-35% Hyperscalers, ISV, Media Awards & LTTS in news Device Engineering 30% 20-25% Telecom, Consumer 15% 40% Silicon Engineering In AI, we are L&T Technology 20-25% S
Slide 70: Tech: Marching Towards a Billion
Tech: Marching Towards a Billion 28-33% Digital Health 20-25% Digital 28-33% QARA Manufacturing Revenue: $1 B 20-25% EBITDA : 16% – 18% Device Engineering Revenue: $422 M Med-Tech EBITDA : 15% Hi-Tech FY24 Device Engineering Silicon 15-20% FY XX Engineering System Integration 20-25% Platform Enginee
Slide 71: Thank You
Purposeful. Agile. Engineering. Thank You #GoDeeperToScale IAD 2024 | www.LTTS.com Investor & Analyst Day 202417
Slide 72: Technology – Staying Ahead of the Curve
Technology – Staying Ahead of the Curve #GoDeeperToScale Ashish Khushu Chief Technology Officer Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 1
Slide 73: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 74: A Culture of Innovation to Future Proof LTTS
A Culture of Innovation to Future Proof LTTS 1348 Total 189 Patents in 108 45+ Solutions in 14 R&D Projects Patents Filed LTTS Solutions R&D Labs Production Projects with Academia Sustainability Tech Mobility Innovation, Platforms and Solutions • Overall Investments and Governance of Innovation Prog
Slide 75: Foundation Engineering: Our Journey So Far
Our Journey So Far… FY18 FY21 FY24 LTTS Own Patents 27 28 100 572 Innovators Engineering Value Co-Authored Patents 48 120 106 Tech Publication 36 61 198 Joint Project with Academia 1 8 15 IIT Bombay Coventry University Early Access Tech Partners 1 2 8 Foundation Strong Employee Participation 600 140
Slide 76: Future Proofing LTTS
Future Proofing LTTS Segment Investment Priorities Mobility Sustainability TOP 3 CTO Innovation Priorities • Software Defined Mobility • Sustainable Mfg. • Electrification & Hybrid Tech • Plant Modernization & Automation 01 AI/ Gen AI • Vehicle Engineering • Transition to Product + Services Tech 02
Slide 77: Pioneering AI/GenAI in Engineering & Manufacturing
1. Pioneering AI/GenAI in Engineering & Manufacturing Engineering Industry Firsts LTTS Focus and Expertise Solutions Year AI AiKno 2017 Applicability AiCE 2020 Manufacturing Enterprise eAI Framework 2021 AiTest 2022 LLM Benchmarking 2023 45 in Machine 35 in Image 55 in Natural Complexity Learning Pr
Slide 78: SDx & Next Gen SW: Journey Toward Software Defined Everything
2. SDx & Next Gen SW: The Journey Toward Software Defined Everything… Our Advantage Domain Specialization and Embedded Engineering User Interactions UX, HMI, Authentication Cyber Security API First APIs , Applications Services, Applications Software Layers/Components specific to SDV, Software Produc
Slide 79: Powered by Next-Gen Software Technologies
…Will be Powered by Next-Gen Software Technologies. GenAI/AI Augmented Serverless Computing, SW Dev Microservcies Emerging AI Progressive Web Technologies apps API’fication Self-Healing Code Edge Inferencing Distributed Intelligent computing Platform Engineering IAD 2024 | www.LTTS.com 8
Slide 80: Factories of Future: Digital Manufacturing Solutions Framework
3. Factories of Future: Enabling the Core of Manufacturing Transformation… Digital Manufacturing Solutions Framework FactoryVU Centralized real-time Factory Analytics and Insights Siloed, visibility with deeper ERP, PLM, CRM Decision Distributed insights and analytics Remote Command & Control Tower
Slide 81: Leveraging LTTS' FactoryNext Reference Framework
…Leveraging LTTS’ FactoryNext Reference Framework and Solutions Realtime Central Realtime Material & Command Digital Twins of Planning Resource Center Product & & Scheduling Allocation Operations RM Warehouse w ASRS / AMRs FG Warehouse w ASRS / AGVs FactoryNext Powering Factories of the Future Smart
Slide 82: Innovation Impact
Innovation Impact 01 Strengthening LTTS as a Thought Leader in chosen areas. Build Deep Technical Mastery in focus and growth areas to further 02 consolidate our position as a dominant technology player into the future. Strengthen long term Strategic Positioning by incubating new 03 practices and co
Slide 83: Thank You
Purposeful. Agile. Engineering. Thank You #GoDeeperToScale Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 12
Slide 84: Delivering Profitable Growth & Value to Shareholders
Delivering Profitable Growth & Value to Shareholders #GoDeeperToScale Rajeev Gupta CFO, LTTS Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 1
Slide 85: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 86: Agenda
Agenda 01 Macro Environment 02 A Recap of LTTS performance Investor & Analyst Day 03 Pivoting for Growth (IAD) 2024 04 Improving Margins 05 Value to Shareholders IAD 2024 | www.LTTS.com 3
Slide 87: Macro Environment
Macro Environment Global Real GDP Growth Rates (%) ER&D Outsourcing Market Trends 6.5 2030 3.5 3.8 2.8 3.2 3.2 3.1 3.1 2023 2014 -2.7 17-22 % 2015 2017 2019 2021 2023 2025E 2027E 2029E CAGR India India India Sourcing Share Sourcing Sourcing $130B – $180B Global Inflation % $11.4B $44B – $45B 8.7 6.8
Slide 88: A Recap of LTTS performance – Poised for Long Term Compounding
A Recap of LTTS performance – Poised for Long Term Compounding Revenue ($M) PAT (INR Mn) 3 Yr CAGR 3 Yr CAGR 16% 1,257-1,280 25% 1,164 13,037 1,089 12,121 880 9,570 737 6,633 FY21 FY22 FY23 FY24 FY25E FY21 FY22 FY23 FY24 Key Milestones Key Milestones • Achieved annual run rate $1B revenue in Q2FY23
Slide 89: Our Approach To Deliver Profitable Growth
Our Approach To Deliver Profitable Growth Pivoting for Growth Improving Margins IAD 2024 | www.LTTS.com 6
Slide 90: $1Bn Aspiration for each Segment
$1Bn Aspiration for each Segment Pivoting for Growth Improving Margins Mobility ($M) 3 Yr CAGR 1 Bn Focus Areas & Investments Potential CAGR 19% • Software Defined Mobility 342 381 229 281 • Electrification & Hybrid Tech 20-22% • Vehicle Engineering & Avionics FY21 FY22 FY23 FY24 FYXX Sustainability
Slide 91: Powering up the Large Deal Engine
Powering up the Large Deal Engine Pivoting for Growth Improving Margins Higher Addressable Market Improve Win Ratio Pipeline and Deal Size • Shortening technology cycles • Track record of large deal • 2X growth in pipeline and need for faster speed-to- execution in ER&D market and optimal cost • Hig
Slide 92: GEA Offerings: World-Class Talent Pool
World-Class Talent Pool Pivoting for Growth Improving Margins GENESIS • Capacity to hire and train 2-3K plus freshers per year Training for University graduates NOTCH UP • 80% of workforce upskilled or cross-skilled annually • Building skills in new age digital technologies – AI, SDV, Upskilling & c
Slide 93: Capacity to Springboard Growth
Capacity to Springboard Growth Pivoting for Growth Improving Margins 108 R&D Innovation Labs 22 Global Design Centres NA Europe India Peoria Munich Mysore Baroda Chennai IT-on-Demand Infrastructure # # # # Dallas Gothenburg Mumbai Bangalore ROW • 99.95% IT Infra Availability Japan • 24x7 AIOPS monit
Slide 94: Inorganic Growth Strategy
Inorganic Growth Strategy Pivoting for Growth Improving Margins Strategic M&A since IPO 2017 2018 2020 2023 • VLSI/ASIC Competencies • Chip Design and Verification • 5G Network Engineering Capability • Next-Gen Comm • Marquee Client Addition Competencies • Telecom Service Provider Exposure • Sustain
Slide 95: Strengthening Operational Playbook
Strengthening Operational Playbook Pivoting for Growth Improving Margins Increase Delivery Increase Higher Maintain SG&A as % Customer Mining Led Growth Fresher Mix Offshoring of Revenue • Large deals to drive • Higher quality of • Hire and Nurture • Run strategic initiatives • Strategically invest
Slide 96: AI & Digital Technologies to enhance Productivity
AI & Digital Technologies to enhance Productivity Pivoting for Growth Improving Margins • AI tools for enhancing productivity AI for Delivery • Enhanced Collaboration • Enterprise Search Excellence • Virtual Assistant “Leverage AI as competitive Intelligent • • Project and Account Profitability AI B
Slide 97: Segment Margins - Trends & Aspiration
Segment Margins - Trends & Aspiration Pivoting for Growth Improving Margins 18.9% 19.4% 19.6% Aspiration 14.7% MOBILITY 20-22% FY21 FY22 FY23 FY24 27.5% 28.5% 28.2% 24.4% SUSTAINABILITY 28-30% FY21 FY22 FY23 FY24 18.9% 19.7% 16.4% * 15.5% TECH 16-18% FY21 FY22 FY23 FY24 FYXX *Note: Restated for SWC.
Slide 98: ESG - Journey & Aspirations
ESG - Journey & Aspirations Journey so far Roadmap way forward • Sustainability offerings for customers supporting transition to a • Target to achieve ~50% renewable energy net-zero future sourcing by FY27 • Environment & Water are key themes for CSR activities • Align with industry best practices f
Slide 99: Shareholder Value Creation
Shareholder Value Creation Free Cash Flow (as a % of Net income) Return on Equity 189% 28% 27% 25% 21% 89% 94% 96% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Dividend Per Share Market Cap (INR Cr) 41% 41% 50 57,981 39% 45 53,877 35% 35 35,678 22 27,877 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Dividend P
Slide 100: Going Deeper to Scale
Going Deeper to Scale Aspiration to be a $2B company To be among Top 5 ER&D services companies globally Drive EBIT Margin towards 17-18% IAD 2024 | www.LTTS.com 17
Slide 101: Thank You
Purposeful. Agile. Engineering. Thank You #GoDeeperToScale Investor & Analyst Day 2024 IAD 2024 | www.LTTS.com 18