Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (November 2006)
22 slides from Tata Consultancy Services's investor presentation, November 2006
Slide 1: TATA Consultancy Services Investors Presentation
TATA Consultancy Services Investors Presentation November 2006 © Tata Consultancy Services Ltd. 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation concerning our future growth prospects may constitute forward- looking statements. The Company believes that its expectations are reasonable and are based on reasonable assumptions. However, such forward looking statements by their
Slide 3: TCS Overview
TCS Overview The Leading Indian IT Services Company y Pioneered the Indian IT Services industry y $3 billion revenue in FY2006 y Employer of Choice Comprehensive Presence Across: y 35 countries in 6 continents y 12 industry verticals y 6 service lines Part of the Tata Group y Management excell
Slide 4: Investment Highlights
Investment Highlights Uniquely Positioned for Long-Term Growth Innovation: Essential Catalyst of Growth Unique eco-system across academia, start-ups, alliance partners, customers Investment in R&D, practices, and product development Sustaining and Disruptive innovation to drive value Netwo
Slide 5: Robust IT Services Market
Investment Highlights Robust IT Services Market Indian IT-BPO Exports: Growth Rates and Projections 70.0 CAGR 26.6% 60.0 60.0 50.0 USD Billion 40.0 CAGR 30.4% 23.4 30.0 17.7 12.9 20.0 7.7 9.6 6.2 10.0 0.0 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2010 Source: NASSCOM 5
Slide 6: TCS Revenue Growth
TCS Revenue Growth TCS is the Leading Indian IT Services Company 3.5 2.97 3 USD Billion 2.24 2.5 2 1.56 1.5 1.04 0.88 1 0.69 0.5 0 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 6
Slide 7: Integrated Global Presence
Integrated Global Presence Europe UK & Ireland N. America 18 19 31 8 1 51 10 India 59 67 15 22 ME & Africa Iberoamerica APAC 4 - 7 3 13 3 169 Sales Offices, 35 countries 42 Delivery Centers, 11 countries 7 6
Slide 8: Network Delivery Model
Network Delivery Model™ Global Delivery Centers Low Breadth of Skills High • High scale India Low High • Serves large customers China • High depth & breadth of skills Global Global Solution Labs • Matured processes Delivery Customer Proximity Customer Coverage Centers Regional Delivery Centers • Med
Slide 9: End-to-End IT Consulting and Services Portfolio
End-to-End IT Consulting and Services Portfolio Asset Based Global Solutions Consulting IT Solutions & Services Engineering Enterprise Technology & Solutions Solutions Industrial Services Assurance Business Business Services Process Intelligence Outsourcing IT Infrastructure Services 9
Slide 10: End-to-End Services: BPO
End-to-End Services: BPO 120 100 80 Revenue US$ MM 60 40 20 0 Q2 '06 YTD Q2 '07 YTD Strategic Focus y Technology/Platform based BPO y IT & BPO Solutions 10
Slide 11: End-to-End Services: Infrastructure Services
End-to-End Services: Infrastructure Services 140 120 100 Revenue US$ MM 80 60 40 20 0 Q2 '06 YTD Q2 '07 YTD Strategic Focus y End-to-end services to assess, build, and manage infrastructure y Leverage remote delivery to maximize value y Capitalize on synergies with IT services and BPO 11
Slide 12: End-to-End Services: Consulting
End-to-End Services: Consulting 70 60 50 Revenue US$ MM 40 30 20 10 0 Q2 '06 YTD Q2 '07 YTD Strategic Focus y Leverage insight into client’s business and IT operations to provide end-to-end solutions y Capitalize on Network Delivery Model™ to deliver high value, cost effective services y Provide s
Slide 13: Delivery Excellence
Delivery Excellence Industry Benchmark for Execution & Project Management y On-time deliveries y On-budget deliveries y Deliveries with no severity 1 or 2 defects Sustainable, Repeatable & Continuously Improving Delivery Systems 13
Slide 14: Case Studies
Case Studies TATA CONSULTANCY SERVICES
Slide 15: Case Study 1: Major Financial Services Firm
Case Study 1: Major Financial Services Firm Relationship began 2002: y Basic ADM & software process consulting Current Scope: 80+ projects, $40 – 50 million revenue y Application maintenance & support y Infrastructure services y BI/Data warehousing y Voice technologies TCS Competitive Advantag
Slide 16: Case Study 2: Market Research Firm
Case Study 2: Market Research Firm Current Scope y Support & maintain applications for collecting data, factory processing, data warehousing, reporting y Manage critical client operations TCS Competitive Advantage y End-to-End Services: Integrated IT/BPO model y Innovation: Dedicated innovation
Slide 17: Strength in Human Resources
Strength in Human Resources 17
Slide 18: Strength in Human Resources
Strength in Human Resources Employer of Choice in India y Long-standing recruiting practice at the top universities y Selective process to determine top tier universities y 11,250 offers made on campus to the class graduating in FY2008 Lowest Attrition Rate in Industry: 10.6% 18
Slide 19: Total Associate Base: 78,028
Total Associate Base: 78,028 3,835 3,660 3,736 74,193 67,530 52,575 Q2-06 Q1-07 Q2-07 Associates in TCS Ltd Associates in Indian Subsidiaries Global Workforce: Non-Indian nationals: 8.3% Q2 Metrics y Additions: Gross – 8,919; Net – 6,663 y Utilization Rate excluding trainees: 79.4% 19
Slide 20: Q2 FY2007 Results
Q2 FY2007 Results TATA CONSULTANCY SERVICES
Slide 21: US GAAP Income Statement
US GAAP Income Statement Q2 FY07 Q1 FY07 Q2 FY06 Revenue (Rs. bn.) 44.8 41.4 31.6 Gross Profit (Rs. bn.) 20.3 17.9 14.3 Gross Margin 45.4% 43.1% 45.3% Operating Income (Rs. bn.) 11.3 9.3 8.2 Operating Margin 25.3% 22.4% 25.9% Net Income (Rs. bn.) 9.9 8.6 6.9 Net Margin 22.1% 20.8% 21.9% 21
Slide 22: Investment Highlights
Investment Highlights Uniquely Positioned for Long-Term Growth Innovation: Essential Catalyst of Growth Network Delivery Model™ End-to-End Services Offering 22
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