Hcl Infosystems Limited · NSE:HCL_INSYS
Hcl Infosystems — Investor Day (2010)
68 slides from Hcl Infosystems's investor day presentation, 2010
Slide 1: Annual Analyst & Investor Meet FY10
Annual Analyst & Investor Meet FY10 Driven by Our People : Pride Passion Performance 1
Slide 2: Disclaimer
Disclaimer This may contain "forward-looking" information including statements concerning the HCL's outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The forward
Slide 3: Growth & Expansion
GROWTH & EXPANSION are the values that you expect a leader to adopt and follow GROWTH & EXPANSION are values central to human identity and existence GROWTH & EXPANSION are the intangible forces that guide the very flow of life EXPANSION of capabilities to take on new frontiers and truly ‘Enabling So
Slide 4: Transformed HCL Infosystems laying foundation for EXPANSION
Transformed HCL Infosystems laying foundation for ‘EXPANSION’ • EXPANSION led by the transformation in the Services and System Integration business • Introduction of NEW PRACTICES: • NEW PRODUCTS: Product IP creation for diverse System Integration solutions • NEW DOMAINS: Expansion into new System I
Slide 5: EXPANSION into Emerging markets
Transformed HCL Infosystems laying foundation for ‘EXPANSION’ EXPANSION into ‘Emerging markets’ and going global with the solutions stack ‘Emerging markets’ including the Middle East, Africa & South East Asia 5
Slide 6: EXPANSION into Emerging Sectors
Transformed HCL Infosystems laying foundation for ‘EXPANSION’ • EXPANSION into ‘Emerging Sectors’ with innovative technology frameworks • Access: Cloud Services with O’zone • Homeland Security: Security framework with Horizon & end-to-end solutions • Education: Vocational trainings with HCL CDC and
Slide 7: Our People - Making it Happen
Our People - Making it Happen Customer First Our people believe that the customer comes first Consumer & Enterprise Expertise into both consumer & enterprise segments Rural and Global Our people reach diverse markets Complete Solutions Our workforce covers diverse competencies Alignment with Busines
Slide 8: Living the Dream: Best Employer HCL Infosystems
Living the Dream : Best Employer ‘HCL Infosystems’ Ranked No.1 Employer in 2009 by IDC- Dataquest - Ranked among TOP 3 for five years consecutively Ranked Ranked among among TOP TOP 33 Best Best Companies Companies to to Work Work For For in in India India Survey Survey 2008 2008 by by TNS, TNS, Mer
Slide 9: Building Brands
Building Brands Career Development Centre 9
Slide 10: Building Brands - Recognition
Building Brands - Recognition 10
Slide 11: System Integration
System Integration Mr. Rajeev Asija EVP 11
Slide 12: SI & Services – Business Portfolio
SI & Services – Business Portfolio Leverages: Industry Vertical Practices Mature Established New Travel, Transport Power & Utilities Manufacturing E-Governance Infrastructure Media & Ent. BFSI & Coop. & Logistics Railways Oil & Gas Telecom Defense Health Discrete to total Outsourcing System Integrat
Slide 13: Product (IP) created for SI Business
:Product (IP) created for SI Business E - GOV POWER TELECOM BFSI ssed pr oce in ly s c es sful rth bid uc Wo wa ys, S 00 Cr. ctions ail ,0 sa In R r Rs. 60 0 Tran Creating differentiation by smarter solutions… ove 15,00 13
Slide 14: Flexible models in Strategic Outsourcing
Flexible models in Strategic Outsourcing People Process JV Application IT Infrastructure SPV up Transform PPP S et (Govt./PSU) Green Field Setup BOOT ield Operate & F Manage wn Bro Transition BOOM Services Growth Propelled by SO Business Models… 14
Slide 15: SI Telecom
SI Telecom Telecom Market Industry Need Solutions • 3G / GSM Infrastructure: : 14% CAGR • Defense Networks • Wimax, Optical Networks Source IDC 2009 spend (INR Cr) Domestic IT • Wireless Broadband • Billing Solutions: (Wimax) • Convergent Billing, OSS/BSS • Number Portability Solutions • IP/MPLS Exp
Slide 16: SI Power & Utilities
SI Power & Utilities Power & Utilities Market Industry Need Solutions 18% • Field Automation CAGR : • APDRP (Part-A) spend of Domestic IT spend Rs. 10,000 Cr. in XI plan • Smart Metering IT Infra • Smart Grid Solution Source IDC 2009 (INR Cr) IT Apps, • Self Healing Solution GIS, • Energy Management
Slide 17: SI BFSI
SI BFSI BFSI Market Industry Need & Solutions CAGR : 13% Financial Inclusion Core Insurance Solutions “Banking to the unbanked” Domestic IT spend Source IDC 2009 (INR Rs) Advanced MIS and BI Core Banking - Branch Roll Solution Out, Mobile Banking, Bilingual Solutions Basel II – Operations Risk Autom
Slide 18: SI E-Governance
SI E-Governance E-Governance Market Industry Need Solutions : 14 % Source IDC 2009 CAGR Domestic IT spend (INR Rs) e-Office Land Records e-Municipality / e-District / e-Panchayat SI Opportunity Size (HCL Estimates) INR 11,000 Cr.* Biometric Solns. Citizen ID Cards UID Compliant Soln. Financial Inclu
Slide 19: UID, a catalyst to drive e-governance solutions
UID, a catalyst to drive e-governance solutions: PDS NREGA Sampark Kendras FI Solution Early wins in all these areas Biometric Solutions SMART Cards Hand-held Devices UID Infrastructure Hardware Software Services Growth Driven by UID opportunities… 19
Slide 20: IT Infra, Application & Strategic Outsourcing Services
IT Infra, Application & Strategic Outsourcing Services 10 Year IT Strategic Outsourcing Services – including hosting of application, server, 3PL Logistics Company storage, network, security administration, support and sustenance Healthcare Major 5 Year Total IT Outsourcing Services – HIS, BI, Rollou
Slide 21: SI Order Book Backlog
SI Order Book Backlog – Ranging from Infra Centric to Mix of Infra + Apps. 3500 Cumulative Order Book Position 3000 3000 2500 2000 2095 1950 2000 1813 1500 1327 1000 500 0 1/Jul/09 1/Oct/09 1/Jan/10 1/Apr/10 1/Jul/10 31/Aug/10 Last year Current Different Verticals have different Conversion Ratios 21
Slide 22: Emerging Market Business Outlook
Emerging Market Business Outlook HCLI acquires NTS Group in Middle East: IDC Report Q2 09 IT market forecast (in US $ Mn) 60% stake in Co. for $ 6.5 mn. NTS, a 'total solutions' provider of IT Geo 2010 2011 2012 2013 CAGR Will focus on Middle East and African UAE 4,459 5,197 5,946 6,717 12.84% Marke
Slide 23: Africa – Waiting to Happen
7 Wh broadband not roads will HCL Infosystems at the World Economic Forum for Africa 2010 y ' ' ~ d d rete. The recently concluded, World Economic Forum on Africa 2010 saw r ra| nl S 0 r m rl C a eu participation from 1000 leaders from 85 counties and was Co-chaired Mr. Ajai Chowdhry in an exclusive
Slide 24: Practices, CoEs and Certifications Driving SI & Services Growth
Initial Investments of Rs. 10Cr. & Rs. 22 Cr. Opex p.a. ery eliv er ndd o o v f in tic ea t i on s nt prac i c a es e rt i f rc s tm of c e sou ce e p / re llen Inv ild u ni ng n ai xce Bu r s a i m • n te & tr es f do of E ce ring ourc n o rs tres i o e •H res ntati Cent Cen 0 t 25 gme n of cep n •
Slide 25: IT Products & Services
IT Products & Services Mr. D. Baskar VP 25
Slide 26: IT Products and Related Services
IT Products and Related Services Desktops, Notebooks & Mobile Middleware – Messaging, Computing Enterprise Management System, Products S4N (Servers, Storage, Security, Virtualization, Unified Communication Software & Network) IT Infrastructure Services –AMC Services –FM –Managed Services VPN & Co-ho
Slide 27: Industry Overview: IT Products
Industry Overview: IT Products Domestic IT Market Domestic PC Shipment MM Rs. BN 17 Source: Gartner Report, March 2010 18 1, 20 0 17% 6% CAGR : CAGR : 1 16 15 1, 00 0 Source: IDC, 1Q CY 2010 554 13 14 473 11 800 12 406 10 348 169 10 600 150 8 290 8 132 400 116 104 6 483 549 200 414 4 301 348 2 0 0 2
Slide 28: PC Market Share: April 09-March 10
PC Market Share: April 09-March 10 Total Desktop Market Share Total Laptop Market Share Acer, 16.3% Unbranded, 53.0% HCL, 10.5% Lenovo, 11.9% Dell, 23.9% Toshiba, 3.5% HP, 11.9% Sony, 4.1% HCL, 5.0% Acer, 8.2% Other Branded, 5.8% Other Dell, 6.3% Unbranded, 2.7% Branded, 2.5% Wipro, 3.1% Lenovo, 4.5
Slide 29: Domestic Enterprise IT Market – Growth 2010
Domestic Enterprise IT Market – Growth 2010 IDC view CY 2010 Growth Total in 2010 2010 Desktop 15% 6Mn Laptop 45% 3.5Mn Servers 6% 129K Gartner view CY 2010 IMRB/MAIT View Growth in Total Growth in Total 2010 2010 2010-11 2010-11 Desktop 12% 6Mn Desktop 12% 6.2Mn Laptop 40% 3.5Mn Laptop 26% 3.2Mn Se
Slide 30: HCL's PC Strategy
HCL’s PC Strategy Desktop Laptop •Continued leadership position in •Continue Brand Building “ME” commercial space •Integrated Mobility Team •Strategic Tie-up with ODM’s for ID’s. •Repeat business & creation of new •Singapore factory/assembling unit enterprise and SMB accounts •USP – HCL TOUCH 24x7xL
Slide 31: IT Products & Services Strategy
IT Products & Services Strategy Service Deck- AMC, FM, Managed Services, Application Services Strategic Outsourcing, Cloud Services E-Governance – Focused addressal of 6 states (AP, TN, Karnataka, Maharashtra, W.B, Delhi) EAB (Enterprise Alliance Business) - Partnering with technology OEM’s – Increa
Slide 32: Continued customer focus
Continued customer focus Independent Media/ Analyst IT Services : Place of Pride CSAT Surveys Overall 1.Dataquest CSA Vendors Rank-09 Rank-10 Scores Change 2.Springboard 2010 HCL Infosystems 1 1 90.3 ■ (0) TCS / CMC 3 2 87.9 ▲ (1) HCL Comnet 2 3 87.7 ▼ (-1) External IBM 6 4 87.6 ▲ (2) CSS (IDC) 8.16
Slide 33: Office Automation Products & Services
Office Automation Products & Services Mr. M. Chandrasekaran Sr. VP 33
Slide 34: Wide Range of Offerings
Wide Range of Offerings Products & Solutions - Audio Visual System Integration - Media & Entertainment - Document Management System Integration - Police & Vehicle Tracking - Maintenance - Facility Management - Managed print Services -Design & Consultancy -Advanced Document Management - Secured Commu
Slide 35: Alliances
Alliances Printers Projectors AV System Integration Voice & VC Media & Entertainment Police & Tracking 35
Slide 36: System Integration Portfolio
System Integration Portfolio • Data Capture , Digitization , Storage and Retrieval Solutions for Land Records, Libraries, Courts , Telco etc. • To Become the most preferred solution provider in Integrated Document Management Systems (IDMS) Domain. 36
Slide 37: Recent Wins - Case Studies
Recent Wins - Case Studies Secure Communication Network Census of India Order from Census of India worth • Rs. 100 Cr. Services deal spread Rs 40 Cr over 87 months Scope involves digitization of • First GRN (Govt. Radio Network) in INDIA information for India Census 2010-11, The largest Census opera
Slide 38: Imaging Products & Solutions
Imaging Products & Solutions Multi Functional Devices (MFD) Projectors Addressable Market Addressable Market 25% 10% 660 420 Cr 330 Cr 600 2009-10 2010-11 2009-10 2010-11 • No 1 player in Projectors Market HCL - Market share 20% • HCL - Market share 19.6% Source: Industry Estimates 38
Slide 39: Voice & Video Conferencing
Voice & Video Conferencing Voice Solutions Video Conferencing Addressable Market Addressable Market 8% 650 14% 250 Rs crores 600 Rs Crores 220 2009-10 2010-11 2009-10 2010-11 • HCL - Market share 18 % HCL -Market share 6.5% • No 1 In Video Conferencing Solutions Source: Industry Estimates 39
Slide 40: Distribution & Marketing Services
Distribution & Marketing Services Mr. Hari Baskaran EVP 40
Slide 41: Distribution Alliances – Power Brands
Distribution Alliances – Power Brands • Non-mobile phone revenue growth of ~38% over FY’09 • HCL becomes No. 1 partner for Nokia Mobile Accessories worldwide • HCL becomes largest partner in India for Western Digital hard disks, Kingston memory products as well as SanDisk memory products 41
Slide 42: Distribution Organization
Distribution Organization Distribution Verticals Telecom IT Components Consumer Electronics • Towns Covered – 200+ • Towns Covered – 12000+ • Towns Covered – 63 • Partners Covered – 1150 • Outlets Covered – 112000 • Outlets Covered –2050 • No. of distributors – 425 Products • No. of distributors – 1
Slide 43: Nokia Business
Nokia Business Business Dynamics & Market Potential Key Growth Strategies Net Subscriber Additions expected to be Aggressive product portfolio 112 Million in 2010-11 Dual-SIM phone Entry-level QWERTY phone Nokia expected to storm the market with new array Entry Touch phones of phones Entry-level exp
Slide 44: Telecom Business
Telecom Business Business Dynamics Market Potential Category Market Size (Rs) (Cr.) HCL Market Share Nokia Gears Nokia Gears 3000 13.00% Flash Memory 1551 19.00% Expansion of distribution network Grey market still exists for categories like chargers, bluetooth headsets and even batteries Key Growth
Slide 45: IT Components Business
IT Components Business Market Potential Category Market Size (Rs) (Cr.) HCL Share IT Components 4353 6% Business Dynamics Demand from assembled market segment Key Growth Strategies Become a supplier of choice to dealers Distribution environment is multi-brand at by providing a wide bouquet of produc
Slide 46: Consumer Electronics Business
Consumer Electronics Business Key Growth Strategies Consolidation of HCL gaming Market Potential business through product introduction Category Market Size (Rs) (Cr.) HCL Market Share MP3 Player 600 15% Gaming 500 3% Leverage relationships with large Digital Camera 1050 15% format Retail stores Aggr
Slide 47: HCL Security
HCL Security Mr. Rothin Bhattacharya CEO, HCL Security 47
Slide 48: HCL Security laying foundation for EXPANSION
HCL Security laying foundation for ‘EXPANSION’ EXPANSION through delivering best-in-class research, development & systems integration of Security Solutions powered by R&D initiatives and global alliances. HCL Security leverages various alliances to offer the best in integrated technologies ensuring
Slide 49: Industry Overview
Industry Overview ) 9-2014 % (200 A GR 29 C ) 4) -2014 01 (200 9 9 -2 % (200 A GR 25 49 % C GR CA • Highly fragmented homogeneous market with approx. 100 players • On supply side estimates market size is Rs. 2137 Cr approx All figures in Rs. Crs. • Approx growing by 29% annual growth • HCLS already
Slide 50: HCL Security Ecosystem
HCL Security Ecosystem HOMELAND SECURITY CRITICAL ENTERPRISE INFRASTRCTURE Airports Corporate MHA Seaports Hotels Railways & Metros Police Banks Power Plants Defense Refineries Hospitals Inorganic Play Para-military Nuclear Campus Oil And Gas Religious Spots Strategic Installations Factories Customi
Slide 51: 2009-10 Key Achievements
2009-10 Key Achievements Customer Financial Financial Financial ••Achieved •Achieved •Achieved 512% Key wins 512% •Achieved 512% Year-on-Year for: Airport 512% Command Year-on-Year Year-on-Year Year-on-Year growth growth growth growth in & Control in in in •Achieved Revenues 512% Year-on-Year growth
Slide 52: Key Opportunities
Key Opportunities Growing Forge strategic partnerships Profitability Focus on in-house product development & sales 52
Slide 53: HCL Learning
HCL Learning Mr. Anand Ekambaram Head – Training & Education Business 53
Slide 54: Key Highlights
Key Highlights DigiSchool pilots in 50 schools successfully completed CDC enabled technology driven learning solutions for Retail, Enterprise, Government CDC present in 75 locations through 128 centre network; HCL K-2 Academies present in 82 Engineering colleges CDC focused on K-12, IT Training & Sk
Slide 55: Key Achievements
Key Achievements DigiSchool wins: Aditya Vidyashram; La Chateliene; GRD; Air Force Schools 11 new CDCs made operational in AMJ . Total 128 CDCs till date 82 Active Sign-ups in Institutional Alliances as on date under HCL CDC Wins: Chennai Corporation, INS Valsara, DIT Air Force, CRIS, KVT, Dept. of
Slide 56: School Educational Services
School Educational Services Market Overview Market Size and Growth • Educational service market is estimated to be $2.5 bn • Text Books market is estimated to be ~$1.7 b • Market of Multimedia in school ~$200m and a potential to be ~$1.7b by 2015 . High entry barrier, because of BOOT model. English
Slide 57: Vocational Training
Vocational Training Market Overview Market Size and Growth • Relatively new business CAGR 25% • Highly fragmented • Acute need of employable graduates • Addressable market of 2 million graduates annually • Placements is a big pain point for BA, B.Sc and B.Com students • Retail and Finance are the gr
Slide 58: Strategy
Strategy Continued focus on K-12, Vocational Training & Skill Development K-12 focus to cover multimedia in schools, labs and skill enhancement Develop strategic partnerships to target the Corporate & Government Segments 58
Slide 59: Financials
Financials Mr. Sandeep Kanwar CFO 59
Slide 60: Current Financial Trends
Current Financial Trends sien
Slide 61: Q4 & FY10 Results Highlights
Q4 & FY 10 Results Highlights Quarterly Results Consolidated Revenue 3234 Revenue at Rs. 3234 crores. 3027 3054 2842 PBT at Rs. 96 crores. Rs. crores PAT at Rs. 67 crores. 100% dividend declared. 28thconsecutive quarterly dividend. Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Profit before Tax Annual Results Rev
Slide 62: Segment Highlights: Computer Systems
Segment Highlights Computer Systems Quarterly Results Revenues 1,143 Revenue at Rs. 1143 crores, 960 817 up 18% Y-o-Y. 722 up 19% Q-o-Q. Rs. crores PBIT at Rs. 61 crores. up 17% Y-o-Y. up 16% Q-o-Q. Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 PBIT Annual Results 61 53 48 Revenue at Rs. 3643 crores. Rs. crores 2
Slide 63: Segment Highlights: Telecommunication & Office Automation
Segment Highlights Telecommunication & Office Automation Revenue Quarterly Results s 2329 2222 2094 Revenue at Rs. 2094 crores, 1885 up 11% Q-o-Q. Rs. crores PBIT at Rs. 50 crores. Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 PBIT Annual Results 56 57 54 50 Revenue at Rs. 8529 crores. Rs. crores PBIT at Rs. 216
Slide 64: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. crores Consolidated As at June 30, Particulars 2010 2009 (Audited) (Audited) FY 10 highlights Shareholder's funds Share Capital 44 34 Share Warrant Application Money 18 •Investments and Cash Balances stands Reserves and Surplus 1,831 1,088 at over Rs. 1150 crores. Loan
Slide 65: Historical Financial Trends
Historical Financial Trends 65
Slide 66: Financial Trends
Financial Trends Consolidated Revenue Services Revenue 11,855 12,403 12,378 12,159 11,455 722 648 458 Rs. crores 360 Rs. crores 274 FY 06 FY 07 FY 08 FY 09 FY 10 FY 06 FY 07 FY 08 FY 09 FY 10 Consolidated Profit before tax Dividend 429 430 400% 400% 400% 385 375% 351 346 325% % of FV of share Rs. cr
Slide 67: Segment Trends
Segment Trends Computer Systems Telecom & OA 9,050 9,049 9,020 8,874 8,529 3,540 3,643 3,389 2 785 2,785 EVENUE Rs crores 2,381 Rs crores RE FY 06 FY 07 FY 08 FY 09 FY 10 FY 06 FY 07 FY 08 FY 09 FY 10 285 200 190 267 174 177 244 246 216 126 ores es PBIT T Rs crore Rs cro FY 06 FY 07 FY 08 FY 09 FY 1
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