Infosys Limited · NSE:INFY
Infosys — Investor Day (May 2022)
87 slides from Infosys's investor day presentation, May 31, 2022
Slide 1: Letter to stock exchanges: analyst meeting presentations
TO ALL STOCK EXCHANGES BSE LIMITED NATIONAL STOCK EXCHANGE OF INDIA LIMITED NEW YORK STOCK EXCHANGE May 31, 2022 Dear Sir/ Madam, Sub: Analyst/Investor meeting - presentations Please find attached the presentations which will be made during the analyst/investor meeting to be held in Mumbai today. Th
Slide 2: Strategic Overview
Strategic Overview Driving growth and value creation Salil Parekh Chief Executive Officer and Managing Director
Slide 3: Safe harbor
Safe harbor Certain statements in this presentation concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securi
Slide 4: Strategy put in place in 2018
Strategy put in place in 2018 Scale agile digital Energize the core Expand skilling Drive localization Focus on client relevance and execution
Slide 5: Results of the strategy since FY18
Results Digital revenue from 25.5% to 59.2% Revenue growth (cc) from 5.8% to 19.7% $100M+ accounts from 20 to 38 54 “Digital Leader” rating across Employees from 204,000 to 310,000 offerings of Digital Pentagon by Significant market share gain industry analysts in FY 22 TSR highest among
Slide 6: Digital technology services market continues to grow
Digital technology services market continues to grow Global technology services market is expected to grow between 5% and 6% over the next 5 years Digital and cloud services leading the growth 830-890 Digital and Cloud 14-16% CAGR 410-450 Market size ($B) 2022 2027E Digital transformation rema
Slide 7: Strategic elements looking ahead
Strategic elements looking ahead Scale cloud business Continue intensity in Digital Next generation seeding Advanced automation, modernization People care and development Continued focus on client relevance and execution
Slide 8: Scale cloud business
Scale cloud business Market leading capabilities IaaS/Public IaaS/Private SaaS PaaS Data on Cloud Cloud Security Advisory, Industry Design and solutions Migration
Slide 9: Continue intensity in Digital
Continue intensity in Digital Digital Data, analytics, Enterprise tech engineering AI services IoT Cybersecurity Experience
Slide 10: Next generation seeding
Next generation seeding New Technologies Digital Natives Europe ( E.g., Metaverse, Sustainability Quantum, Web 3.0, Blockchain)
Slide 11: Advanced automation and modernization
Advanced automation and modernization Next generation BPM Advanced ADM • Bridge between core services and digital/cloud Modernization • Zero Disruption Modernization AI, machine learning, automation • Automated intelligent processes • Low touch, high impact ecosystem
Slide 12: People care and development
People care and development Faster and predictable career progression • Accelerate career growth • Skill based differential compensation • Higher internal fulfilment Enhanced employee Extensive re-skilling engagement for all • Attract with brand as a • Digital and Cloud talent magnet • Full stack •
Slide 13: We have levers to drive high margins
We have levers to drive high margins Manage Optimize Optimize Capture Realize Value pyramid onsite/ sub- value from operating based ratios and offshore contractor automation efficiencies selling delivery mix usage cost/FTE
Slide 14: Conclusion
Conclusion Last 4 years demonstrated a successful strategic blueprint that we executed well Going ahead, we see strong opportunities in digital and cloud Our people engagement is robust and becoming stronger We have several levers to drive high margins We are well-poised to gain market share and del
Slide 15: Thank you
THANK YOU © 2022 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, p
Slide 16: Next in Digital
Next in Digital Ravi Kumar S. President
Slide 17: Safe harbor
Safe harbor Certain statements in this presentation concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securi
Slide 18: Market dynamics are reshaping the future
Market dynamics are reshaping the future Key Shifts Accelerated Digitization Software is the Industry + digitization Dispersion new alchemy transitions Every enterprise will be a software company at the core
Slide 19: Our strategic focus on Digital has yielded significant results
Our Strategic focus on Digital has yielded significant results 59% of our business is now Digital Innovation & Co- Focused Digital Creation through offerings & Partner Living Labs, Hubs ecosystem and Design studios Deliver Value Best in class through a Reskilling Services + Platform Infrastructure &
Slide 20: Next In Digital for Infosys
Next In Digital for Infosys NEXT IN DIGITAL ► Digital Services have evolved around efficiency stack, growth agendas and smart connected products & services COBALT 2.0 Scale Cloud Digital Engineering Human Experience SaaS | Infra | Data | Product Engineering | 5G | Experience Driven Zero Disruption I
Slide 21: COBALT has evolved to be a key differentiator
COBALT has evolved to be a key differentiator 300+ Industry solutions and 35K cloud assets NEXT IN DIGITAL ► Outcomes | Co-Creation Business Services Industry Solutions Platforms SaaS Consumption AI & Analytics Edge Workplace Data Exchange Layer IT Operations Platform Layer Applications Data Microse
Slide 22: Pivoting to business operations is critical to scale cloud
Pivoting to Business operations is critical to scale cloud NEXT IN DIGITAL ► Large 'in-flight’ transformations and accelerated shift to ‘As A Service’ requires new ways of working Core + Extended Core IT Future Mode Business Operational Business Insights of Operations Insights Operations Operations
Slide 23: Infosys Polycloud platform
Infosys Analyst Meet Infosys Polycloud platform @)
Slide 24: Transforming Digital Experience
Transforming Digital Experience NEXT IN DIGITAL ► Humanizing Experience Network of 16 Strategic Digital Studios Customer User Employee Partnerships Experience Experience Experience Experience Driven Commerce Digital Interactions StudioNEXT Digital Marketing Platforms & Solutions:
Slide 25: Human experience
ics) a Analyst Meet 2022 Human experience @)
Slide 26: Next gen Data & Analytics services
Next gen Data & Analytics services NEXT IN DIGITAL ► Data economy is driving new possibilities, fluid business models and monetization Unlock data from legacy estate and Drive Sentience Create Network effect touchless operations Digitize Data Analytics, AI & Data Algorithms & Digital feedback New Da
Slide 27: Assuring Zero Trust Cyber Resilience at Scale
Assuring Zero Trust Cyber Resilience at Scale NEXT IN DIGITAL ► Secure by design Secure by scale Secure the future Identity & Access Infrastructure Threat Detection Emerging Vulnerability Management Security & Response Technologies Management Data Privacy & Governance, Risk Cyber Advisory Managed Cl
Slide 28: Scaling Applied AI to accelerate business outcomes
Scaling Applied AI to accelerate business outcomes NEXT IN DIGITAL ► Responsible AI Define AI 25+ Assessment Framework | AI Discovery | AI Maturity AI Services on audit and security consulting Assessment | Strategy & Infosys AI Cloud | Workforce Reskilling Roadmap 1000+ Use cases 150+ Show & Tell de
Slide 29: Accelerate Automation for efficiency and productivity
Accelerate Automation for efficiency and productivity NEXT IN DIGITAL ► Repository of 24K bots Manual Tool Assisted Automation Intelligent Automation Specialized AI Self Learning AI Fully manual process Use of regular tools & Handle exceptions Manage exceptions Focus on training bots applications In
Slide 30: IoT - Intersection of Edge, 5G and devices
IoT - Intersection of Edge, 5G and devices NEXT IN DIGITAL ► Industrial IoT Product IoT Smart Spaces SMART CONNECTED SMART CONNECTED SMART CONNECTED PROCESS PRODUCTS INFRASTRUCTURE Digital Manufacturing, Industry 4.0, Connected Vehicle, Connected Asset Efficiency & Sustainability, Smart Mining, Sust
Slide 31: Embedded Software drives the future of engineering
Embedded Software drives the future of engineering NEXT IN DIGITAL ► PRODUCT PLATFORM SERVICES Transforming and modernizing Enterprise Products and Platforms and creating Digital twins 3 Embedding software MECHANICAL & MEDIA Apps & Middleware into the end-to-end ELECTRONIC PRODUCT 2 4 DEVELOPMENT de
Slide 32: Emerging Technology accelerating new offerings
Emerging Technology accelerating new offerings NEXT IN DIGITAL ► Metaverse foundry converges the Astronomical scope of Gaming With more developers in Non-Tech power of our domain and design industry – 3 billion people in the industry, Low Code platforms are expertise, XR platform, digital world are
Slide 33: Co-creating Innovation cycles
Co-creating Innovation cycles NEXT IN DIGITAL ► INFOSYS INNOVATION NETWORK (IIN) LIVING LABS & MARKETPLACE Startups (120+) |Horizon 2 & 3 Trends | Co-Creation | Joint Solutions |Design Listening Post as a Service Studios | Try out THOUGHT LEADERSHIP Innovation PLATFORMS & IP Infosys Knowledge Instit
Slide 34: Thank you
THANK YOU © 2022 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, p
Slide 35: Market Approach and Financial Services Depth
Market Approach and Financial Services Depth Mohit Joshi President
Slide 36: Safe harbor
Safe harbor Certain statements in this presentation concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securi
Slide 37: Market Approach
Market Approach Growth Drivers & Market Share expansion
Slide 38: Two major initiatives have driven our market success
Two major initiatives have driven our market success… 1 Large Deals 2 Account Expansion 3X 38 20 Large deal TCV # of $100 M+ clients FY18 FY22 FY18 FY22 • $40B in large deals in 4 years • Market leading win rate for Net New • 2.5X pipeline expansion Top 10 #1 Fastest-Growing Top 10 IT Services Brand
Slide 39: Digital solutions addressing business problems
…with digital solutions addressing business problems… Transforming Digitizing Increasing access High end R&D Powering e-commerce Enabling sustainable Financial Services Telecom to Healthcare in Aerospace for Retail eco systems Wholesale and Digital Supply Improving member Core Enhancing Building a U
Slide 40: Powered by our intelligent, open platforms
…powered by our intelligent, open platforms Cloud powered AI platform for Live Enterprise enterprise empowering better Infosys Live Enterprise Suite Application Platform transformation Healthcare Policy administration for the Automation, AI and AI driven customer global life insurance and supply cha
Slide 41: Another shift from 'OR' to 'AND'
We are now witnessing another shift…from ‘OR’ to ‘AND’ Efficiency And Transformation & Growth IT And Business Personalisation And Standardisation Outsourcing And Insourcing Wealth Creation And Sustainability Offices And Homes
Slide 42: Infosys is uniquely positioned to address this new reality
Infosys is uniquely positioned to address this new reality… Global Delivery And Localisation Technology And Domain Services And Platforms Digital Transformation And Core IT Optimisation Scale And Agility Leading Talent And Welcome client Infrastructure employees
Slide 43: Addressing this duality in our sales strategy
…and we are addressing this duality in our sales strategy Our strategy for sustainable growth Large • Double down on Cloud, Digital and Tech + Ops Account Special focus to grow Deals • Focus on Tech Natives Expansion high potential accounts ($10 Mn-50 Mn) • Greater penetration into Continental Europ
Slide 44: Continuing to address clients' business problems with digital solutions
Finally, we will continue to address our clients’ business problems with digital solutions… Verticalized digital solutions Differentiated end-user experience Cloud as a foundational layer Emerging technologies: Metaverse Foundry, Quantum Computing Secure technology infrastructure and assure business
Slide 45: Enhancing our focus on Europe
…and to enhance our focus on Europe Our European business is already on a strong trajectory 18k+ Strategic LOCALIZATION FOCUS Sustainability and Green Tech Green IT Investments | Decarbonization #3 Employees Digital Innovation Center Düsseldorf, Germany, Bucharest, Romania Infosys Collaboration with
Slide 46: Financial Services Depth
Financial Services Depth Accelerating FSI Digital Transformation
Slide 47: Digital transformation accelerated across Financial Services & Insurance
Post Pandemic, Digital Transformation accelerated across Financial Services & Insurance… • Ecosystem Banking • Inter-generational Wealth Transfer Mortgage • Embedded Finance Commercial • Digital Assets :Crypto, NFT • Fintechs, Non-Banking Players • ESG investing is mainstream Asset • Millennials, Ge
Slide 48: Strong and profitable growth driven through higher digital business
Infosys is seeing a strong and profitable growth driven through higher digital business Digital Growth ~ 2X of overall Growth FSI Growth Rates 40.1% Infosys works with Top • 8/10 US banks, 4/6 European Banks, 3/4 29.7% Australian Banks 26.8% • 4/5 card issuers, 3/4 acquirers • 3/5 mortgage originato
Slide 49: Financial Services & Insurance Digital Transformation Playbook
Financial Services & Insurance – Digital Transformation Playbook Digital Transformation Playbooks Select Case Studies Designing & Building the Strategic • Be a Digital Attacker Blueprint and Cloud Native Business • Reimagine Customer Journeys Platforms • AI Flywheel Frost returns to Mortgage with Di
Slide 50: Finacle at the forefront of Digital Transformation
Finacle is at the forefront of Digital Transformation for Incumbents, Challengers, NeoBanks and Fintechs… Digital Disruptions Use Cases Select Case Studies Digitization Neo Banks of existing Customer Journeys are operations: transforming to Digital & Challenger Banks Third-party channels Marcus Bank
Slide 51: Infosys Cobalt Cloud for Financial Services
We are Verticalizing Cloud Offerings with Infosys Cobalt Cloud for Financial Services Accelerates business value and innovation in the cloud for FS Clients Secure, vertical cloud platform that enables enterprises to: Accelerate cloud adoption Rapidly build cloud native business platforms Dri
Slide 52: Digital Shifts of the Future
Digital Shifts of the Future… Metaverse Blockchain & Crypto Banking, Virtual Bank Payments, Clearance and Branches, Gamified Settlement Systems, financial literacy, Virtual Fundraising, Securities Lounges… tokenization, Efficient Loans and Credit, Trade Finance, Customer KYC and Fraud NFT : Beeple’s
Slide 53: Thank you
THANK YOU © 2022 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, p
Slide 54: People Engagement
People Engagement Krishnamurthy Shankar Group Head – Human Resources and ILI
Slide 55: Safe harbor
Safe harbor Certain statements in this presentation concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securi
Slide 56: Headcount growing consistently over the last 3 years
Headcount growing consistently over the last 3 years Total Headcount (figures in ‘000) 314 260 242 FY20 FY21 FY22 YoY Growth% 6.2% 7.1% 21.0% 3 Figures as on 31st March of each year
Slide 57: Hiring numbers growing impressively
Hiring numbers growing impressively New Hires (figures in ‘000) 142 2.2 X 65 increase in hiring 52 over FY20 FY20 FY21 FY22 4
Slide 58: Accelerated hiring at scale to strengthen our pyramid
Accelerated hiring at scale to strengthen our pyramid 85K+ (3X over FY21 ) 57K (2.4X over FY21 ) Fresher intake in FY22 Laterals hired in FY22 Coding assessments Multi-level selection Fresher hiring Professional hiring Country wide coding Hiring the best talent Skill, learnability & Focused on skill
Slide 59: Attrition is tapering down
Attrition is tapering down Q4 attrition was 27.7% LTM* Q4 annualized attrition down by 5% from Q3 Key Interventions: Compensation Faster career Skill development Greater corrections growth programs engagement *Only for IT Services 6
Slide 60: Compensation a key lever
Compensation a key lever 3 compensation increases rolled out in last 15 months Now rolled out January 2021 July 2021 effective April 2022 • Special skill based compensation correction • Significant geo based retention budgets • Rolled out retention bonus, higher promotions, higher stock grants 7
Slide 61: Reimagining Work, Workplace & Workforce
Reimagining Work, Workplace & Workforce to address the future needs Workplace (Purpose | Culture | Wellbeing ) HYBRID Work Workforce (Hybrid Work Design | Hub & (Careers | Learning ) Spoke | Tech ecosystem ) 8
Slide 62: Work: Enabling the future hybrid work model
Work: Enabling the future hybrid work model Key Considerations Will evolve to a Future work model Permanently Permanently Remote WFO Flexible WFO Hybrid Work Design Hub & Spoke Tech Ecosystem • Toggle seamlessly across work modes • New centers in Noida, Vizag, • Communication & – Home / Office Kolka
Slide 63: Scaling distributed talent and work
Scaling distributed talent and work Nearshore Focus Areas: Bulgaria, Romania, Poland, Slovakia, Croatia, Lithuania, Europe Mexico, Canada, Philippines Americas China India Locations: India Coimbatore, Kolkata, Vishakhapatnam, Noida Our current localization Latam efforts created a Lending Human Capit
Slide 64: Workplace: Led by our Purpose, Values and Culture
Workplace: Led by our Purpose, Values and Culture With a greater focus on flexibility, wellbeing & diversity in a hybrid work model 11
Slide 65: Continued focus on employee wellness
Continued focus on employee wellness Four pillars of employee wellness at Infosys Covid Support Supporting Mental Health Work-Life Balance • Vaccination center in Infosys campuses • 24*7 Wellness coaches for distress • Leisure events counselling • Hospital tie-ups • Virtual communities • Samaritan –
Slide 66: Diversity a key priority in line with our ESG vision
Diversity has been a key priority in line with our ESG vision Significant programs to improve diversity Gender diversity % • Return to work after maternity 39.6% • ‘Restart’ with Infosys 38.6% • Orbit Next- to build our pipeline into managers 37.8% • Diverse hiring at leadership • Strong LGBTQ netwo
Slide 67: Deep emphasis on lifelong learning leveraging Lex
Workforce: Deep emphasis on Lifelong learning leveraging Lex 300K + 295K + • Anytime, Anywhere Learning Learning Infoscions on Lex with Lex Resources on Lex • Enables reskilling employees faster at scale 22K + 34 + mins • Focusing on building depth & Learners access Lex Average Learning time breadth
Slide 68: Agile careers with increased internal fulfillment
Agile careers with increased internal fulfillment 3.4X Accelerated careers for top talent Promotions in FY22 Predictable growth upto over FY21 Faster and middle management predictable career growth Internal marketplace AGILE, SKILL DRIVEN 1.4X BRIDGE* for career shifts CAREERS Manage talent with ski
Slide 69: Augmented by a strong focus on skills
Augmented by a strong focus on skills Transformation specialists Unique new age skill identifier 16
Slide 70: Leadership development and succession planning a key priority
Leadership development and succession planning a key priority Stable, energized ‘One-Infosys’ leadership Seamlessly managed transition of COO Succession Leadership Women in Planning Development Leadership • Strong succession bench • Partnership with Stanford • Over 350 Women Leaders strength and Har
Slide 71: Our Employee Value Proposition
Our Employee Value Proposition sums it all…. Move Forward, Take the world with you! Inspiring you to Making sure your career Navigating further, build what’s next never stands still together 18
Slide 72: Global recognition for our Talent practices
Global recognition for our Talent practices ATD Excellence in Practice Award 2022 - for Leadership & Managerial Development Brandon Hall Group’s HCM Excellence 2021-22 - Best-in-class Talent Acquisition & New-hire Onboarding Program SHRM HR Excellence Awards 2021 – Excellence in HR Analytics, D&I, W
Slide 73: In conclusion
In conclusion • Increase in headcount • All time high recruitment • Strong training and reskilling • Diversity in focus • High Employee Engagement 20
Slide 74: Thank you
THANK YOU © 2022 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, p
Slide 75: Fuelling growth and delivering margins
Fuelling growth and delivering margins Nilanjan Roy Chief Financial Officer
Slide 76: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securi
Slide 77: FY22 highlights
FY22 highlights Industry leading Robust Digital growth of Revenue growth at Operating >40% in CC; share of ~20% in CC margin at 23% digital at 57% 94 Large deals FCF conversion at TSR in top signed with TCV of 103%, ROE at record quartile among $9.5 billion 29.1% peer group
Slide 78: Fuelling Growth and Driving Margins
Fuelling Growth and Driving Margins Supply side fulfilment ESG Margin Drivers Growth Programmatic M&A Pricing Building Strategic Capability
Slide 79: Supply Side Fulfilment
Supply Side Fulfilment Large demand opportunity Talent shortage (Industry attrition) Increased Compensation (fresh Investment Higher Subcon hires + own teams) in talent • 3 compensation hikes in last 6 quarters • Additional comp interventions to retain talent - skill-based, retentions bonus, Increas
Slide 80: Margin Drivers
Margin Drivers • Onsite and Offshore • Subcon to Hire/ • Lean and • Internal rotation and Subcon to Replace Automation promotion • Margin to Rate card Pyramid • Higher fresher intake Subcon • Vendor consolidation Automation • Bot Factory • Work from Anywhere (WFA) • Subsidiaries opportunity • SG&A O
Slide 81: Pricing – From Cost Based to Value Selling
Pricing – From Cost Based to Value Selling • Focused pricing initiative for digital talent • COLA MSA clauses (Old and new) • Client outcome linkages • Pricing ongoing engagements • Incremental pricing for scaled and proven • Discounts on renewals/adhoc capabilities Inflation Digital value • Acquire
Slide 82: Building Strategic Capability
Building Strategic Capability • Strategic partner of choice Building GTM to address for digital transformation untapped emerging segment Further focus on • Full stack and verticalized Tech natives digital and cloud solutions for cloud migration capability • Digital career streams • Predictable caree
Slide 83: Programmatic & Disciplined M&A
Programmatic & Disciplined M&A Digital Cloud capabilities (Horizontal and Vertical) Geographic Synergy Footprint
Slide 84: ESG – Good Business is Good for Business
ESG – Good Business is Good for Business Vision : Shape and share solutions that serve the development of businesses and communities Environment Social Governance • Climate change • Enabling digital talent at scale • Corporate Governance • Engaging with clients on climate • Tech for good • Data priv
Slide 85: Value Creation for Shareholders
Value Creation for Shareholders Strong FCF conversion (as % of Net profit) Increasing Return on Equity (in %) 113 103 29.1 92 27.4 25.8 FY20 FY21 FY22 FY20 FY21 FY22 Superior capital returns (in ‘000 crore) Continued Industry Leading TSR (in %) 11.1 INFY 141% 13.0 11.5 8.2 FY20 FY21 FY22* Buyback**
Slide 86: Summary
Summary Support client needs Relentless focus on cost via margin drivers Scaling up strategic capabilities in current year Driving pricing improvements Leveraging Infosys Sustainability credentials
Slide 87: Thank you
THANK YOU © 2022 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, p