Hcl Technologies Limited · NSE:HCLTECH
Hcl Technologies — Q3 FY20 Earnings Presentation
26 slides from Hcl Technologies's earnings presentation, Jan 17, 2020
Slide 1: Technology for the next decade, today. Investor Presentation Q3 FY20
Technology for the next decade, today. HCL Technologies Investor Presentation Q3 FY20 Friday, Jan 17, 2020 7:00 PM © 2020 HCL Technologies Limited | www.hcltech.com 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statem
Slide 3: HCL Technologies Q3 FY20 Earnings Call (CEO)
HCL Technologies Q3 FY20 Earnings Call We continue our stellar performance over the years and have now crossed a revenue run rate of $10 B this quarter. Our revenues have grown 16.4% YoY in constant currency and we have delivered a strong 20.2% EBIT. Within two quarters of its inception, HCL Softwar
Slide 4: HCL Technologies Q3 FY20 Earnings Call (CFO)
HCL Technologies Q3 FY20 Earnings Call We have delivered best-in-class 16.4% revenue growth in constant currency. EBITDA margin at 24.7% expanded 152 bps, and EBIT margin at 20.2% expanded 68 bps on YoY basis. OCF as percentage of Net Income at 109% on YTD basis demonstrates the expected improvement
Slide 5: Business Updates Q3 FY20
Business Updates Q3 FY20 C Vijayakumar President & Chief Executive Officer © 2020 HCL Technologies Limited | www.hcltech.com 5
Slide 6: Performance Summary
Performance Summary 2.3% REVENUE $2.54B 15.5% 2.1% GROWTH in CC 16.4% 3.8% EBIT $0.51B 19.5% 28 bps EBIT% 20.2% 68 bps 100 bps MODE 2 & 3 MIX 34.0% 492bps © 2020 HCL Technologies Limited | www.hcltech.com 6
Slide 7: Business Segment / Mode wise Performance
Business Segment / Mode wise Performance Revenue Revenue EBIT QoQ Growth Quarter Ended 31-Dec-19 (in $ M) Mix Margin (in Constant Currency) IT and Business Services 1,786 70.2% 17.8% 0.1% Engineering and R&D Services 424 16.7% 20.7% 0.7% Products & Platforms 334 13.1% 32.9% 16.8% Total 2,543 100.0%
Slide 8: Revenue Performance by Geo / Vertical
Revenue Performance by Geo / Vertical ACQUISITION IMPACT PER PRIOR METHODOLOGY Particulars Segment Mix QoQ CC YoY CC YoY CC Consolidated 100% 2.1% 16.4% 16.4% Americas 62.8% -0.1% 12.9% 21.2% Geography Europe 29.2% 5.0% 21.4% 9.5% RoW 8.0% 10.6% 27.3% 0.8% Financial Services 21.6% -2.1% 16.8% 4.3% M
Slide 9: Key Highlights
Key Highlights HCL Software continued its operational momentum in Q3 as it on-boarded 4,600 customers. HCL Software continues to invest in products and has released several product releases. The most notable launch in the quarter was Domino v11, representing a milestone in HCL’s commitment to modern
Slide 10: Key Wins
Key Wins US based hi-tech company Chosen as engineering partner for select enterprise products. With this partnership, HCL will form integrated development and support teams to enhance implementation and maintenance capabilities of these product suites across multiple industries and geographies. Fin
Slide 11: Key Awards & Analyst Recognitions
Key Awards & Analyst Recognitions HCL was named one of the best 50 companies globally as per the People Capital Index (PCI), 2019, a study inspired by the Human Capital Index published by the World Economic Forum. • Positioned as a Leader in IDC MarketScape: • Recognized as a Leader in ISG Provider
Slide 12: Products & Platforms
Products & Platforms Darren Oberst Corporate Vice President © 2020 HCL Technologies Limited | www.hcltech.com 12
Slide 13: Products & Platforms Highlights
Products & Platforms Highlights HCL Software continued to build operational momentum in Q3; It is now in second full quarter since the closing of the IBM software products acquisition. ✓ “Open for Business at Global Scale"– transactional momentum. • 5,000+ product sales transactions completed in Q3,
Slide 14: Financial Updates Q3 FY20
Financial Updates Q3 FY20 Prateek Aggarwal Chief Financial Officer © 2020 HCL Technologies Limited | www.hcltech.com 14
Slide 15: Performance Trend
Performance Trend Revenues In USD Mn EBITDA & EBIT In USD Mn 9,670 8,393 2,209 1,949 1,846 7,617 1,512 1,703 1,652 DEC'17 DEC'18 DEC'19 DEC'17 DEC'18 DEC'19 EBIT EBITDA Net Income In USD Mn Earnings Per Share In INR 1,873 1,570 1,623 48.6 1,366 1,420 1,487 40.3 36.2 35.3 38.6 31.5 DEC'17 DEC'18 DEC'
Slide 16: Purchase Price Allocation (Update)
Purchase Price Allocation (Update) (amount in $ M) Particulars Sep'19 Dec'19 Recoverable from IBM (against contract liabilities) 449.9 505.6 Contract liabilities (452.8) (509.6) Deferred tax 1.8 1.4 Property and equipment 0.3 0.3 Customer related intangibles 884.0 919.9 Technology 351.7 351.7 Goodwi
Slide 17: Cash Flow
Cash Flow Particulars Q1 FY20 Q2 FY20 Q3 FY20 YTD FY20 (amount in $ Million) Net Income 321 377 428 1,126 Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities Depreciation and amortization 86 86 112 284 Deferred income taxes (0) 1 20 20 Others (2) 10 9 17 Cash Profits 404
Slide 18: Tax Expense
Tax Expense (amount in $ Million) Tax Expense Q1 FY20 Q2 FY20 Q3 FY20 YTD FY20 As per Ind AS (A) 101 109 106 316 As per US GAAP (B) 101 118 97 316 Difference (A-B) (0) (9) 9 (0) ETR% as per US GAAP 24.0% 23.9% 18.4% 21.9% ETR% as per IND AS 23.9% 22.1% 20.1% 21.9% © 2020 HCL Technologies Limited | w
Slide 19: Guidance
Guidance REVENUE OPERATING MARGIN (EBIT) FY’20 Revenues are expected to grow between FY’20 expected Operating Margin (EBIT) range is 16.5% to 17.0%* in Constant Currency from 19.0% to 19.5% *Revenue Guidance is based on FY’19 (April to March) average exchange rates The above constant currency guidan
Slide 20: Q&A
Q&A © 2020 HCL Technologies Limited | www.hcltech.com 20
Slide 21: HCL Technologies at a Glance
HCL TECHNOLOGIES AT A GLANCE © 2020 HCL Technologies Limited | www.hcltech.com 21
Slide 22: The Fastest Growing Global Technology Company
The Fastest Growing Global Technology Company Key Differentiators Product Engineering DNA $9.7B REVENUE Digital at Scale 149,000 Partnership Ecosystem IDEAPRENEURS Innovative Business Constructs 45 153 COUNTRIES NATIONALITIES Relationship Beyond the ContractTM © 2020 HCL Technologies Limited | www.h
Slide 23: Culture of 'Giving Back': Corporate Social Responsibility
Culture of ‘Giving Back’: Corporate Social Responsibility • Committed $7.25M towards rural development in the areas of Environment, Health and Education. HCLF has already touched the lives of more than 575,000 people through the program. • More than 5,000 NGOs registered for the fifth edition of the
Slide 24: Culture of Ecosystem Experiences: Global to Local Platforms
Culture of Ecosystem Experiences: Global to Local Platforms HCL Concerts at HCL at Dreamforce 2019 Carnegie Hall NY & Levi’s Stadium, SF Accelerate - HCL Analyst Day 2019 #10YearsinFrance – Two technology delivery centers The Digital Forum, Frankfurt Global to Local campaigns in Lithuania © 2020 HCL
Slide 25: Diversity and Inclusion
Diversity and Inclusion Recognized as International Women's Day (IWD) 2019 Best Practice Winner. HCL is one of the HCL runs the Women Lead program to 18 companies across the globe, which has achieved this award in 2019, joining previous mentor the next generation of women winners as members in the I
Slide 26: www.hcltech.com
w w w. h c l t e c h . c o m $9.7 BILLION | 149,000 IDEAPRENEURS | 45 COUNTRIES