Slide 1: HCL Technologies Earnings Presentation Third Quarter FY'17
HCL TECHNOLOGIES EARNINGS PRESENTATION | THIRD QUARTER FY’17 -1- WHERE VALUES DRIVE VELOCITY
Slide 2: Performance Snapshot
Performance Snapshot C VIJAYAKUMAR -2- WHERE VALUES DRIVE VELOCITY
Slide 3: Performance Trends on LTM Basis
PERFORMANCE TRENDS ON LTM BASIS REVENUE HEADCOUNT 111,092 103,696 Number of Employees 6,746 100,240 6,139 88,332 5,692 5,010 In USD Mn DEC'13 DEC'14 DEC'15 DEC'16 DEC'13 DEC'14 DEC'15 DEC'16 EBIT NET INCOME 1,373 1,380 1,184 1,198 1,239 1,103 1,104 868 In USD Mn In USD Mn DEC'13 DEC'14 DEC'15 DEC'16
Slide 4: Consistent and Broad Based Growth
CONSISTENT AND BROAD BASED GROWTH REVENUE GROWTH (IN CONSTANT CURRENCY) Quarter Ended 12 Months Ended GROWTH ENGINES Segments 31-Dec-16 31-Dec-16 Broad based Growth QoQ LTM YoY Consolidated 3.0% 11.6% Americas 1.7% 15.0% Geo Drivers Americas and Europe Europe 6.8% 10.5% ROW -0.5% -5.0% Application S
Slide 5: State of Market
STATE OF MARKET IT Services Growth Rates are Stabilizing Worldwide IT Services Spending Forecast (in US Dollars) Year 2016 2017 2018 Services Spending Growth Rate 3.9% 4.2% 4.7% Source: Gartner Key Drivers of IT Spending Industry moving towards the fourth industrial revolution where technology is
Slide 6: HCL Mode 1-2-3 Growth Strategy
HCL MODE 1–2–3 GROWTH STRATEGY HCL 21CE Business Type Highlights Application Services Existing Core Services with strong market momentum Autonomics DRYiCE™ Mode 1 Infrastructure Services Large under–serviced market opportunities Agile & Lean + Service Oriented Engineering and R&D Services Continue t
Slide 7: Mode 1 Q3'17 Growth in CC
MODE 1 SERVICE LINES Q3’17 Growth in CC QoQ YoY ■ HCL completed the acquisition of Butler America Aerospace LLC, Engineering and strengthening its position in aerospace & defense engineering 7.1% 12.6% services space R&D Services ■ ERS revenue growth driven by Mode 3 Products & Platforms ■ HCL signe
Slide 8: Mode 2 Digital, Analytics, IoT WoRKS, Cloud and Security
MODE 2 DIGITAL, ANALYTICS, IOT WORKS™, CLOUD AND SECURITY BEYONDigitalTM, Modern Applications, Business Analytics IoT WoRKS™ ■ Engagement with a Global 100 Europe–based financial services ■ HCL positioned as a leader across major analyst studies organization for digital services, driving innovation,
Slide 9: Mode 3 Products & Platforms
MODE 3 PRODUCTS & PLATFORMS ■ HCL continues to explore & enter into strategic and innovative IP–based partnerships, targeting specific next–generation opportunities. ■ HCL has extended its IP partnership with IBM to define the future roadmaps for additional products in the areas of Application secur
Slide 10: Performance Snapshot
Performance Snapshot ANAND BIRJE - 10 - WHERE VALUES DRIVE VELOCITY
Slide 11: Scope & Revenue Potential for HCL Digital
DIGITAL AND ANALYTICS SERVICES DIGITAL BUSINESS App Modernization, API/Micro-services, Analytics, DIGITAL OPERATIONS ■ Digital Business Process PROCESS RE-DESIGN Platform Engineering (DEVOPS) Redesign based on Design Thinking ( DX/UX) is becoming the starting Scope & Revenue Potential for HCL Digita
Slide 12: Digital and Analytics Services
DIGITAL AND ANALYTICS SERVICES BEYONDigitalTM, Modern Applications, Business Analytics ■ Engagement with a Global 100 Europe–based financial services organization for digital services, driving innovation, agility, customer centricity, experience & cost efficiencies. ■ Engagement with a major global
Slide 13: Performance Snapshot
Performance Snapshot RAHUL SINGH - 13 - WHERE VALUES DRIVE VELOCITY
Slide 14: Performance Snapshot: Financial Services
PERFORMANCE SNAPSHOT FINANCIAL SERVICES Performance Highlights Performance Drivers New Account / Geo strategy Quarter Ended 31st December 2016 Investments in new accounts driving momentum New agreement signed with top European retail bank Revenue Growth Redefined RTB / Mode 1 propositions Qo
Slide 15: Performance Snapshot
Performance Snapshot KARAN PURI - 15 - WHERE VALUES DRIVE VELOCITY
Slide 16: Performance Snapshot: Consumer & Commercial Industries
PERFORMANCE SNAPSHOT CONSUMER & COMMERCIAL INDUSTRIES Performance Highlights Performance Drivers Quarter Ended 31st December 2016 ■ Mode 2 services increasingly commanding higher share of wins in a managed /outcome driven construct Revenue Growth ■ Client spending in discretionary disruptive initiat
Slide 17: Financial Analysis
Financial Analysis SUBRAMANIAN GOPALAKRISHNAN - 17 - WHERE VALUES DRIVE VELOCITY
Slide 18: Consolidated Income Statement (in US$ Million)
CONSOLIDATED INCOME STATEMENT (IN US$ MILLION) Q3, FY’17 Revenue at US$ 1,745 Mn; up 1.3% QoQ in reported currency Constant currency revenue growth at 3.0% QoQ and 11.6% on LTM YoY EBIT at $ 356 Mn, up by 13.4% YoY Annualized GAAP EPS (Diluted) – INR 58.63, up 7.8% YoY Income Statement Growt
Slide 19: FY'17 Guidance
FY’17 GUIDANCE GUIDANCE Revenue: ■ We had guided for FY'17 Revenues to grow between 12.0% to 14.0% using the average exchange rates for FY’16. This translates to 10% to 12% in USD terms based on December 31st, 2016 exchange rates. ■ We expect our FY’17 revenues to be in the middle of this range. ■ T
Slide 20: Cash Conversion
CASH CONVERSION ON LTM BASIS CASH CONVERSION 113% 82% 55% 57% DEC'15 DEC'16 FCF to EBITDA OCF to NI - 20 - WHERE VALUES DRIVE VELOCITY
Slide 21: Hedge Details
HEDGE DETAILS AS ON In US$ Million 30-Sep-16 31-Dec-16 Total Hedges 1,157 1,416 Balance Sheet Hedges 144 207 Cash Flow Hedges 1,013 1,209 Less than or equal to 1 Year 778 817 More than 1 Year 235 392 Rate (USD/INR) Booked Rate (Forward) 68.30 68.97 Less than 1 Year 67.76 68.62 More than 1 Year 70.32
Slide 22: Forex Gain/Loss & OCI
FOREX GAIN/ LOSS & OCI FX Gain/ Loss for the Quarter in US$ Million 31-Dec-16 Cash flow hedge gain (A) 5.2 Net gain on Foreign currency exposure (B) 1.2 TOTAL (A) + (B) 6.4 OCI Position as of 31-Dec-16 in US$ Million 31-Dec-16 OCI (Upto 12 months) 30.4 OCI (Greater than 12 months) 4.3 TOTAL (before
Slide 23: Tax Provision
TAX PROVISION EFFECTIVE TAX RATE ESTIMATED FOR FY’17 IS ~21% Financial Year ended Quarter Ended Particulars (in US$ Mn) 31-Mar-16 31-Dec-16 Total Tax Expense 223 84 Earnings before Tax 1,063 390 Effective Tax Rate 21.0% 21.5% - 23 - WHERE VALUES DRIVE VELOCITY
Slide 24: Q&A
Q&A - 24 - WHERE VALUES DRIVE VELOCITY