Slide 1: Earnings Presentation - Q4 FY18 & Annual Results FY18
Earnings Presentation - Q4 FY 18 & Annual Results FY 18 C Vijayakumar Wednesday, May 02, 2018 Copyright © 2016 HCL Technologies | www.hcltech.com
Slide 2: Financial Summary FY18
FINANCIAL SUMMARY FY18 Particulars Full Year Quarter ended Consistent execution of our business strategy by (Amounts in US meeting our guidance on revenue & margin for the $ Millions) second year in a row FY 18 YoY 31 Mar ‘18 QoQ Revenues 7,838 12.4% 2,038 2.5% Crossed significant milestone of $
Slide 3: Performance Trends
PERFORMANCE TRENDS 12 MONTHS ENDED MARCH ‘18 3 | Copyright © 2018 HCL Technologies Limited | www.hcltech.com
Slide 4: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH 12 Months Quarter Ended Segments 31-Mar-18 31-Mar-18 13.3% Industry leading growth in LTM YoY QoQ Financial Services, enabled by growth Consolidated 10.5% 1.2% in digital services Americas 13.8% -0.7% Secular growth across most other Europe 5.0% 3.6% verticals i
Slide 5: Mode 1-2-3 Growth
MODE 1-2-3 GROWTH FY 17 FY 18 Signed 15 transformational deals in Q4 Mix % FY 16 FY 17 FY 18 Growth Growth representing a well-balanced mix of Mode 1 & Mode 2 services, geos and Mode 1 84.1% 81.4% 76.6% 8.3% 5.7% verticals. 63 transformational deals for the financial year Mode 2 12.3% 12.8% 14.7%
Slide 6: Client Partnership
CLIENT PARTNERSHIP LTM Revenue 31-Mar-17 31-Dec-17 31-Mar-18 Contribution Faster revenue growth in our Client Partner accounts across Geos and Verticals Top 5 Clients 14.7% 15.8% 16.3% Secular trend of increasing revenue share of our Top 5, 10 and 20 customers Continue to increase wallet share
Slide 7: Inorganic Updates – C3i
INORGANIC UPDATES – C3 i Strategic Rationale Financial Outlook A leader in multi-channel customer engagement • Expect revenues to decline 10%-12% in FY 19 services for the life sciences and consumer and start growing from FY 20 packaged goods (CPG) industries • Expect to reach company level margin
Slide 8: Inorganic Updates - Actian
INORGANIC UPDATES - ACTIAN Strategic Rationale Financial Outlook A key player in hybrid data management, cloud • Regulatory approvals in progress. Expect to integration, and analytics solutions owns close by Aug 18. market-leading products such as Actian Vector, Actian DataConnect and Actian X • R
Slide 9: Financial Commentary
FINANCIAL COMMENTARY Anil Chanana Copyright © 2016 HCL Technologies | www.hcltech.com
Slide 10: Financial Commentary
FINANCIAL COMMENTARY • Performance Highlights for the quarter and the year • Shareholders’ returns and pay-out • Effective Tax Rate • Hedging performance • Cash flow generation • Enhanced Disclosures going forward 10 | Copyright © 2018 HCL Technologies Limited | www.hcltech.com
Slide 11: Mode 2 Updates
MODE 2 UPDATES Anand Birje Copyright © 2016 HCL Technologies | www.hcltech.com
Slide 12: Enterprise Digitalization: Reimagining Businesses via HCL Mode 2 Services
ENTERPRISE DIGITALIZATION : REIMAGINING BUSINESSES IN A DIGITAL AGE VIA HCL MODE 2 SERVICES Asset Value User Value Chain Chain Process and UX /CX User Experience & Business Process Re-imagination Enterprise Composable IOT ( integration and Digital Platforms based on API/Microservices + AI, Blockchai
Slide 13: Mode 2
MODE 2 Digital Transformations are enabled by HCL's Mode 2 services Digital & Analytics, IOT, Cloud Native and Cybersecurity services coming together to create business outcomes Mode 2 Services led by Digital and Analytics grew by 29.4% YOY, growth across US, Europe and APAC. In the last year we had
Slide 14: HCL's Next-Generation Labs for Digital, IoT, Cloud, Automation & AI
HCL’S NEXT-GENERATION LABS FOR DIGITAL, IOT, CLOUD, AUTOMATION & AI Imaging & Industrial Scaled Agile Delivery Center Design Lab and Digital Innovation Lab Customer Experience CloudNative Labs Co-innovation Lab (Go Live in July 2018) Digital Workplace Labs DRYiCE iControl Labs (Alpha Insight) Networ
Slide 15: Mode 3 Updates
MODE 3 UPDATES Darren Oberst Copyright © 2016 HCL Technologies | www.hcltech.com
Slide 16: Mode 3 Strategy Overview & Updates
MODE 3 STRATEGY OVERVIEW & UPDATES Strategy Updates / Actions Long-term transformational vision to build “IP Organic Capability building – investing in skills DNA” across HCL, leveraging both internal core across the software product value chain – product competencies, supplemented with wide set
Slide 17: HCL Mode 3: Multi-Dimensional Strategy to Build World-Class IP-Based Capability
HCL MODE 3: MULTI-DIMENSIONAL STRATEGY TO BUILD WORLD-CLASS IP-BASED CAPABILITY Organic IP- DRYiCE Products & Platforms BU Acquisitions & Investments Being HCL-led R&D Dedicated ‘Software BU’ to build end-to-end Innovations & Frameworks organically-developed Multiple Strategies to Deliver New Soluti
Slide 18: Initiatives Across Mode 3 Offerings
INITIATIVES ACROSS MODE3 OFFERINGS Product Packaging Product Packaging 01 Outcome oriented 02 UX/UI Bundles Modernization/Cloudification/SaaSifica Simplified SKUs tion AI embedded 03 Marketing Product Marketing 04 Product Management Market Driven Product Roadmap Bundled Positioning
Slide 19: HR Updates
HR UPDATES Apparao VV Copyright © 2016 HCL Technologies | www.hcltech.com
Slide 20: HR Updates
HR UPDATES Industry leading revenue per Localisation is at 58% Gender diversity employee at $66,406 – 5% in US; Increase from at 24% 52% in FY 17 increase over FY 17 State of the art AI based LTM Attrition is at Upskilled 27,365 Talent lifecycle 15.4% compared to people in Mode Management platform 1
Slide 21: Q&A
Q&A Copyright © 2016 HCL Technologies | www.hcltech.com
Slide 22: $7.8 Billion Enterprise | 120,000 Ideapreneurs | 39 Countries
$7.8 BILLION ENTERPRISE | 120,000 IDEAPRENEURS | 39 COUNTRIES