Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (October 2019)
27 slides from Tata Consultancy Services's investor presentation, October 2019
Slide 1: Investor Presentation
Investor Presentation TCS October 2019 INVESTS R RELATI NS | Copyright © 2018 Tata Consultancy Services Limited
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These ri
Slide 3: Tata Consultancy Services
Tata Consultancy Services $20.9 BN Revenue FY 19 $6.8 BN Revenue from digital TCS is a global IT services, consulting and Among the Top 5 ... business solutions leader partnering with the Global IT Service Providers world’s leading businesses in their transformational journeys 183 Solution Centers P
Slide 4: The Journey so far
The Journey so far Industry-leading top-line growth… … with superior profitability $20k 200 Rev in USD Mn $15k 150 EPS in ₹ $10k 100 $5k 50 $k 0 FY11 FY17 FY05 FY06 FY07 FY08 FY09 FY10 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY18 FY19 Judic
Slide 5: Leading Technology Change
Leading Technology Change TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 6: Leading through 50 Years of Technology Change
Leading through 50 Years of Technology Change Cyber Sec, Identity, Blockchain IoT, Robotics Drones, Cyber-Physical Security, Privacy Cypto Wearables, Bionics MES, M2M Industry 4.0 BYOD Devices Collaboration, Social, Touch Groupware, Interaction, Design, AR/VR Apps, Smartphone Digital Cognitive Autom
Slide 7: The new era demands a different mindset
The new era demands a different mindset … EMBRACE MASS RISK CUSTOMIZE AGILE CLOUD •··· Intelligent, Agile, Automated, and on the Cloud ABUNDANC AUTOMATED E INTELLIGENT LEVERAGE CREATE ECOSYSTEMS EXPONENTIAL VALUE TCS 7 TATA coNsuLTANCY sERv1cEs I ltiYi\T8~s
Slide 8: Digital Transformation Offerings
Digital Transformation Offerings CONSULTING & SERVICES INTEGRATION Enterprise Agility, M&A / Divestitures, Finance & Shared Services, CX Front Office Transformation, SCM as a Service, Next Gen Transformation TCS Interactive Conversational Experiences Commerce, Channels, Business Platform Content, Ca
Slide 9: Gaining Leadership in Digital
Gaining Leadership in Digital $7 35.0% 28.6% ▪ Digital adoption is $6 30.0% progressing swiftly - project $5 25.0% ticket sizes are going up 21.2% $ Billion $4 16.7% 20.0% ▪ Early adopters are now 13.8% $3 $6.0 15.0% taking up core 9.7% transformation programs $2 $4.0 10.0% $2.9 $1 $2.3 5.0% ▪ Large
Slide 10: Strategic Investments
Strategic Investments TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 11: Scalable Reskilling using the Digital Learning Platform
“There are no legacy people, only legacy technologies” Scalable Reskilling using the Digital Learning Analytics and Insights Cloud Platform Access: Anytime, Qlik (!l . TEZti '@ pentaho· spa~ 1111 ~) Solrt ~--· ~ C~ f Google a ooenstack •• webservices •• on _ . g amcracker. iil.!1-1--.Jl,az_ dock12r
Slide 12: Go Agile at Scale
Go Agile at Scale World’s largest Agile-ready workforce: Time to market US Home Supplies 90% reduction Retailer Product Quality 30% improvement Location - Independent Time to market Agile Australian Bank 65% reduction 391K+ 140K+ 745 Product Quality Agile-trained Agile Agile delivery 80% improvement
Slide 13: Investments in Digital - Products, Platforms & Partnerships
Investments in Digital - Products, Platforms & Partnerships TCS MasterCraft r,lr TCS B NCS jlle ie!>N I 'lf§ ¥WU ego I Customer Intelligence Intelligent Advanced Drug & Insights Urban Exchange Development HOBS TCS Connected Universe Platform Optumera™ ERP on Cloud Omnistore™ TCS B NCS ••• ••• PRODUC
Slide 14: Helping Customers Scale Their Innovation
Helping Customers Scale Their Innovation Foundational Research Computing, Physical Systems, Sciences, New Materials, Sharing of ideas at the Robotics, Sensing of Machines On-Demand TCS Innovation Forum Innovation Industry-Specific Research Early Stage PoCs /PoTs BFSI: Blockchain, Data Marketplace, I
Slide 15: TCS Co-Innovation Network (COIN)
TCS Co-Innovation Network (COIN™) Startups & Accelerators Alliance Partners , flrs timwJ.mJI 3500+ ., h ive Startups •I II I 300+ c, .-, -=01 Glassbox U lnfrrd 50+ OPE TEXT EIRs Venture 0 JI~ .~rt~,~~ n 50+ Capitalists ffllllBJJ Academic Institutions TCS CLIENTS 150+ -w-obot Academic Partners 70+ Fa
Slide 16: Longer Term Growth Strategy
Longer Term Growth Strategy TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 17: Customer-centric Strategy: Going Deeper, Casting Wider
Customer-centric Strategy: Going Deeper, Casting Wider Agile AI Partnership Accountability Ecosystems Research & Innovation Superior Business Outcomes Cloud MFDM Talent Relationship Development Focus Highly Satisfied Customers Putting the Customer at Contextual the centre Full Knowledge Stakeholder
Slide 18: Going Deeper, Casting Wider: Business Outcomes
Going Deeper, Casting Wider: Business Outcomes Large Client Metrics Rev per US$1 Million Client ■ US$ 20 Mn+ ,,,,,11 ,, ■ US$ 50 Mn+ ,,,,,, ■ US$ 100 Mn+ ,,,,,, ,,,, ,,,,,, ,,, 215 20.8 ,, ,,,,,, 136 ,,,, 18.8 ,.,, ,, 99 53 24 ------------- 44 FY14 FY19 $ Mn FY14 FY19 TCS 18 TATA coNSULTANcv SERVICE
Slide 19: Going Deeper, Casting Wider: Financial Outcomes
Going Deeper, Casting Wider: Financial Outcomes Revenue per capita ($cc) Net Income per capita ($) $70,875 $10,945 $44,738 $10,446 FY14 FY14 - FY19 FY14 FY14 - FY19 TCS 19 TATA coNSULTANcv SERVICES I lfilitl8~s
Slide 20: Cash Flow
Cash Flow Cash Conversion Free Cash Flow Free Cash Flow/ OCF to Net Income USD Mn Enterprise Value 100.6% $4,217 ...... ...... ...... 4.1% 83.2% ...... ...... ...... .,., 3.2% $2,101 FY14 FY19 FY14 FY19 FY14 FY19 TCS 20 TATA coNSULTANcv SERVICES I lfilitl8~s
Slide 21: Strong Capital Allocation
Strong Capital Allocation - - - - - 100% 53% 44% $3,824 104% $4,090 $4,233 97% $4,217 $4,077 $2,929 $2,939 $2,886 Average Payout FY15-FY19 : 81% •- ------ $1,687 Amt in $ Mn $1,540 FY15 - FY16 Free Cash Flow - FY17 FY18 Shareholder Payout FY19 TCS Shareholder Payout as % of Free Cash Flow 21 TATA co
Slide 22: Unique, Purpose-Driven
Unique, Purpose-Driven '' In a free enterprise, the community is not just another stakeholder in business, but is in fact the very purpose of its existence. '' - J N Tata 1839-1904 For every $1 returned to shareholders by TCS, $0.47 goes back to the community, giving TCS a unique, purpose-driven wor
Slide 23: TCS In The Community
TCS In The Community Wellness T~S Digital I Explorej I TCS promotes health and wellness in all the communities it works in. We are title sponsors of leading Marathons across the globe, and continuously applying innovations to healthcare practices and awareness STEM Education Skills development In co
Slide 24: In Summary: TCS Strategy Driving Differentiated Outcomes
In Summary: TCS Strategy Driving Differentiated Outcomes MARKET TRENDS TCS APPROACH OUTCOMES ▪ More and more industries are ▪ Ramping up Research & ▪ Industry-defining mega deals leveraging technology to Innovation, co-innovation and ▪ Thinner competitive set differentiate themselves collaboration ▪
Slide 25: Annexure
Annexure TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 26: Latest Earnings' Financial Highlights
Latest Earnings’ Financial Highlights IFRS USD Mn Yearly Quarterly FY19 FY18 YoY 2Q20 2Q19 YoY Revenue - CC $21,265 $19,089 11.4% $5,653 $5,215 8.4% Revenue - ` Bn 1,465 1,231 19.0% 390 369 5.8% Revenue - USD $20,913 $19,089 9.6% $5,517 $5,215 5.8% Gross Profit $8,753 $8,035 8.9% $2,220 $2,215 0.2%
Slide 27: Thank You
ThankYou Thank You TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Tata Consultancy Services — Investor Presentation (October 2019) on 6ix