Coforge Limited · NSE:COFORGE
Coforge — NIIT Technologies — Investor Day (May 2018)
41 slides from Coforge's investor day presentation, May 9, 2018
Slide 1: May 09, 2018
May 09, 2018 1 © 2018 NIIT Technologies | www.niit-tech.com
Slide 2: FY2018 Financial Highlights
FY2018 Financial Highlights Consolidated Revenues Up 6.8% YoY at INR 29,914 Mn Constant currency revenue growth of 9.7% Up 3.5% YoY Operating profits at INR Operating Margins at 16.8%, Down 54 bps YoY 5,012 Mn Constant currency operating margins at 17.4% Up 12.1% YoY Net Profits at INR 2
Slide 3: Strong Deal Momentum
Strong Deal Momentum Order Intake ($ Mn) 150 145 140 130 130 122 120 110 110 100 90 80 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Significant increase in new customer additions (from 15 in FY2017 to 31 in FY2018) 7 large deals secured during FY2018 3 © 2018 NIIT Technologies | w
Slide 4: Improved Business Trajectory
Improved Business Trajectory 8000 27.0% 7800 25.0% 7600 23.0% 7400 21.0% 7200 19.0% 7000 17.1% 18.0% 16.2% 17.0% 6800 15.6% 6600 15.0% Q1FY2018 Q2FY2018 Q3FY2018 Q4FY2018 Revenue, Rs mn EBITDA margin Broad-based growth, $Mn clients up YonY from 73 to 80 Digital revenues up 27% during FY2018, contrib
Slide 5: Workforce Re-orientation
Workforce Re-orientation People Data 9,423 9,022 9,081 8,963 Jun'17 Sep'17 Dec'17 Mar'18 Net Additions 110 59 59 342 Attrition% 12.12% 11.36 % 10.57% 10.47% Utilization 81.20% 79.50% 79.00% 79.50% Training hours up 60% YoY 5 © 2018 NIIT Technologies | www.niit-tech.com
Slide 6: Orderly Leadership Transition
Orderly Leadership Transition Sudhir Singh CEO 6 © 2018 NIIT Technologies | www.niit-tech.com
Slide 7: Agenda - Change for Growth
Agenda - Change for Growth WHAT is the change that is being driven to accelerate growth? HOW much of an impact has it created? WHERE are we headed? … The Road Ahead 7 © 2018 NIIT Technologies | www.niit-tech.com
Slide 8: NIIT Technologies – the change agenda (1/4)
NIIT Technologies – the change agenda….(1 /4) Re-structured ! Verticals Banking & Travel & Insurance Financial Transportation Services Infrastructure Management Services BPM Data / Automation Cloud New Large Deals Sales Organization Teams as New Partnerships & Alliances Organization Positioning
Slide 9: NIIT Technologies – the change agenda (2/4)
NIIT Technologies – the change agenda….(2 /4) Leadership Aggressive hiring of Tier-1 talent Anurag Chauhan Gautam Samanta Madan Mohan Vic Gupta Global Head – Insurance Global Head – BFS Global Head – Data & Automation Global Head – Cloud Location – Princeton, NJ Location – London Location – Princeto
Slide 10: NIIT Technologies – the change agenda (3/4)
NIIT Technologies – the change agenda….(3 /4) Rewards, Incentive(s) and compensation structure redone Large deal bonus payouts multiplied by a factor of ~x4 Discontinuous variable increases for revenue and margin upsides instituted Compensation increments : more active differentiation – wider spread
Slide 11: NIIT Technologies – the change agenda (4/4)
NIIT Technologies – the change agenda….(4 /4) Internal processes changed to drive margins and predictability “Eating our own dogfood” – intensive automation and AI (Tron/Arago) injected into own IT infra “Cloudification” – one data center closed last year; another one (to be) closed this year, movin
Slide 12: Agenda – Change for Growth
Agenda – Change for Growth WHAT is the change that is being driven to accelerate growth at NIIT Technologies? HOW much of an impact has it created? Are there “Green shoots”? WHERE are we headed - The Road Ahead 12 © 2018 NIIT Technologies | www.niit-tech.com
Slide 13: Green Shoots
Green Shoots Order Intake – Q1: $110 Mn; Q4 $: 145 Mn Number of $ Mn Clients – Q1: 72; Q4 : 80 Large Deals – H1 : 2; H2 : 5 Digital – Q1 21%; Q4 26% Client concentration (Top 5) – Q1 : 33%; Q4 : 29% 13 © 2018 NIIT Technologies | www.niit-tech.com
Slide 14: Agenda – Change for Growth
Agenda – Change for Growth WHAT is the change that is being driven to accelerate growth at NIIT Technologies? HOW much of an impact has it created? Are there “Green shoots”? WHERE are we headed - The Road Ahead 14 © 2018 NIIT Technologies | www.niit-tech.com
Slide 15: NTL Strategy: Engage with the Emerging
NTL Strategy Engage with the Emerging - Innovate, Incubate, Industrialize 15 © 2018 NIIT Technologies | www.niit-tech.com
Slide 16: Engage with the Emerging
Engage with the Emerging Innovate Leverage industry understanding to drive transformation using emerging technologies Incubate digital @ scale Focus on “Cloud-ification” and “API-fication” to drive superior end-user experience Industrialize Create “real” world business impact through full-spectrum i
Slide 17: Travel and Transportation Industry Leader
Travel and Transportation Industry Leader 17 © 2018 NIIT Technologies | www.niit-tech.com
Slide 18: Deep Domain Expertise
Deep Domain Expertise Airlines Airports Cargo Roads Railways Train Delay Airport Air/House Way Monitoring Reservation Infrastructure Bill Management Fleet Management Operations Inventory (Cabs, Trucks, Buses) Gate Export/Import Production Planning Management Handling & Control Crew Departure Parking
Slide 19: Launched Higher Cloud April 2018
Launched Higher April cloud 2018 WHERE TRADITIONAL… …MEETS DIGITAL
Slide 20: Core Market Commercial Insurance and Reinsurance
CORE MARKET COMMERCIAL INSURANCE and REINSURANCE Focussed on Commercial (Re)Insurance but Digital offerings potentially broaden opportunity Life Non-Life Life & Private Medical Commercial Personal Pensions Insurance (Re)insurance Insurance
Slide 21: Fusing Traditional with Digital
FUSING TRADITIONAL WITH DIGITAL Full lifecycle support for Insurers and Reinsurers plus digital offerings to support new business models Insurance Decision Risk Support Mitigation Policy Claims Billing Underwriting Administration Processing Premium & Ceding Claims Decision Risk Support Mitigation Re
Slide 22: Customer testimonial on Higher cloud
March 2018 Higher cloud “We’ve had over 100 meetings with Insurtech startups and software providers over the past 12 months. None of them could demonstrate capability like yours” Head of Innovation, Large US Insurer and Top 5 Lloyd’s Syndicate
Slide 23: Leader in Asset & Wealth Management
Leader in Asset & Wealth Management 23 © 2018 NIIT Technologies | www.niit-tech.com
Slide 24: AWM: A Differentiated Capability Space for NIIT Tech
AWM: A Differentiated Capability Space for NIIT Tech NIIT Tech identified as Leader in the New Digital Business Models Focus market segment Reflects our ability to meet future client requirements, as well as delivering immediate benefits to AWM BPS clients Specific focus on supporting the deve
Slide 25: Business Drivers and NIIT Tech Offerings
Business Drivers and NIIT Tech Offerings AWM industry outlook… NIIT Tech Offerings… Global volume of net investable assets of Digital: Compelling proposition across all HNWIs will increase by 25% by 2021 channels Holistic wealth management will emerge as Analytics: Customised data and visual
Slide 26: Digital Capabilities @ NIIT Tech
Digital Capabilities @ NIIT Tech
Slide 27: Cornerstone of Our Digital Strategy – Superior Customer Experience
CORNERSTONE OF OUR DIGITAL STRATEGY – SUPERIOR CUTOMER EXPERIENCE The end customer is in charge and will define the next move Feel Special The heart of a great Digital Personalized Experience is that it feels human Empathizing with the end customer is most important strategy or tactic to human
Slide 28: Digital Experience, Data & Analytics, Integration
DIGITAL EXPERIENCE DATA & ANALYTICS (DX) (D & A) DIGITAL INTEGRATION EMERGING (DI)
Slide 29: Execution Leader in Cloud & Automation
Execution Leader in Cloud & Automation 29 © 2018 NIIT Technologies | www.niit-tech.com
Slide 30: What do we do? How do we do it?
What do we do? How do we do it? Assessment and Roadmap Implementation & Integration Operate & Manage Evaluate AI readiness and Implement and integrate relevant Continuously add KI and monitor automation potential using components of Tron Smart AI engine performance to better Automation Maturit
Slide 31: CloudPixy - Cloud Management Platform
CloudPixy - Cloud Management Platform is the new automation foundation Self Service Product & Service Catalog Robust provisioning & de-provisioning via blueprints Billing for showback and chargeback Next Step – Engage in specific use case Cloud Orchestration Platform Business demands, Techno
Slide 32: Tron smart automation is now AI led Intelligent Automation Platform
Tron smart automation is now AI led Intelligent Automation Platform Futuristic Knowledge Application Development IT Operations Business Processes Based AI Platform Deliver cognitive capabilities Intelligent Development Intelligent based on organizational Automation Service Desk Business Operations
Slide 33: Digital Process Transformation @ NIIT Tech
Digital Process Transformation @ NIIT Tech 33 © 2018 NIIT Technologies | www.niit-tech.com
Slide 34: Digital Process Transformation
NIIT Technologies Digital Process Transformation “Industrialization Through Intelligent Automation” 34 © 2018 NIIT Technologies © 2018 |Incessant www.niit-tech.com Technologies
Slide 35: Digital Process Transformation – Partnerships
Digital Process Transformation – Partnerships Digital Customer Engagement Process Automation 35 © 2018 NIIT Technologies | www.niit-tech.com 35
Slide 36: Strategic Acquisition in June 2017
• Strategic Acquisition in June 2017 • Focussed on Pega • Near-shore Delivery Centre Boise Idaho • Approximately 100 employees • Co-founders Mark Covrig and Korby Wright, Pega veterans of over 10 years • More than doubling Incessant’s revenue and customer based in North America 36 © 2018 NIIT Techno
Slide 37: What's the Secret Sauce?
What’s the Secret Sauce ? • Industry Specialization – Being the Experts, driving an industry reputation • Strong on the ground - Partner Relationships • Certifications and Messaging “Most Certified Partner” • Small enough to care, large enough to matter, ability to engage as specialists • Laser focu
Slide 38: Insurance Overview
At the Heart of Modernizing Insurance Insurance Overview NTL differentiators - May 9th 2018 38 © 2018 NIIT Technologies | www.niit-tech.com
Slide 39: Demos
Insurance Client Insights Innovation and Key Business Areas Demos Outcome Facts 39 © 2018 NIIT Technologies | www.niit-tech.com
Slide 40: Incubate Digital @ scale – Illustrations
Incubate Digital @ scale – Illustrations IoT for Claims Avoidance NLP based Fund Assistant Applied Intelligence for Loss Prediction Device Assessment using Machine Vision Deep Personalization - Broker Experience Platform 40 © 2018 NIIT Technologies | www.niit-tech.com
Slide 41: Thank You
Thank You Investor/Analyst contact: abhinandan.singh@niit-tech.com | Ph: +91 22 4010-3212 Note: Any of the statements made herein may be construed as opinions only and as of the date. We expressly disclaim any obligation or undertaking to release any update or revision to any of the views contained