Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (May 2022)
31 slides from Tata Consultancy Services's investor presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation May 2022 Copyright © 2020 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 We Are…
Tata Consultancy Services We Are… A global IT services, consulting and $25.7 BN 25.3% business solutions leader partnering with the world’s leading Revenue FY 22 Operating Margin FY22 businesses in their transformational journeys 5.1% 2.0% 1.7% Revenue breakup by Geo North America Among the Top 10 5
Slide 4: The Fastest Growing Brand In IT Services
The Fastest Growing Brand In IT Services Ranked #2 Most Valuable Brand in IT Services Globally by brand value and the fastest growing brand of the decade (Source: Brand Finance) Ranked Global Ranked #1 in Customer Given the Best of Best Named Outstanding Top Employer by the Satisfaction in Europe in
Slide 5: The Journey So Far
Rev in USD Mn FY05 FY06 FY07 FY08 14% FY09 11% FY10 2% FY11 FY22 FY05 to FY12 FY13 The Journey So Far 73% FY14 FY15 FY16 Judicious usage of cash … FY17 Capex Industry-leading topline growth … FY18 FY19 Acquisitions Invested Funds FY20 FY21 FY22 Shareholder distribution 5 EPS in ₹ Mar-05 FY05 Mar-06
Slide 6: Leading Technology Change
Leading Technology Change CCS | TATA CONSULTANCY SERVICES
Slide 7: Three Key Drivers of Growth
Three Key Drivers of Growth Growth & Outsourcing Cloud Adoption Transformation All Time High Deal Wins in FY 2022 $34.6 Bn 1.5 TCV of Order Book Book to Bill Mix of Growth & Transformation Deals as well as Large Outsourcing Deals 7
Slide 8: Customers Embarking on Multi-Horizon Transformation Journeys
Customers Embarking on Multi-Horizon Transformation Journeys INNOVATE & DIFFERENTIATE • Product / Business Model Innovation • Enhanced Customer Experience BUILD DIGITAL CORE LEVERAGE PURPOSE LED ECOSYSTEMS • Application, Data & • Collaboration with Adjacent Infrastructure Modernization Enterprises •
Slide 9: Innovating for Greater Futures at an accelerated pace
Innovating for Greater Futures at an accelerated pace 9
Slide 10: Strategic Investments
Strategic Investments CCS | TATA CONSULTANCY SERVICES
Slide 11: Industry Leading Talent Retention
Creating a diverse, inclusive and vibrant workplace Annual Attrition: TCS vs Peers Industry Leading Talent Retention Industry-First Innovations Talent Diversity and Inclusion TCS NQT Vision 25x25 210k+ 153 Best Talent from across India Defining the Future of Work Women Nationalities Talent Clouds 84
Slide 12: Doubling Down on Organic Talent Development
Doubling Down on Organic Talent Development Skilling at Scale 60+ Mn 3.5 Mn 171K Digital competencies Employees Access Learning Hours acquired deep skilled Anytime, Anyplace, Any device Content Rich & Expanding Delivery Domain-infused, Culture focused, Gamified Infrastructure Cloud based, Immersive
Slide 13: Enterprise agility for unmatched speed-to-market
Enterprise agility for unmatched speed-to-market Our thought-leading frameworks that help enterprises adopt agile at scale and gain concrete Open agile collaborative workspaces Agile delivery business benefits: 1,119 centers • TCS Location-independent AgileTM Active agile • Service Delivery Maturity
Slide 14: Our Investments: Research, Innovation and Ecosystem
Our Investments: Research, Innovation and Ecosystem 6,500+ 58 240+ 40+ 5 2,616 $300 million Researchers, Academic Publications Research and Pace Ports Start-up Investment** inventors and Partners Innovation partners innovators Centers * Numbers as of 31 March 2022. **Consolidated Investments per TCS
Slide 15: TCS Patent Wall
TCS Patent Wall 6,583 patent applications; 2,287 granted 28 Institutional awards & professional recognitions ▪ Best Patent Portfolio – Large Enterprise (ICT Services) Enterprise Trophy by World IP Organization ▪ National IP Award ▪ Asia IP Elite 15
Slide 16: TCS Pace Ports
TCS Pace Ports™ TCS Pace Ports™ are experiential spaces which allow customers to experience the transformational power of TCS’ research, innovation and digital prowess come alive under one roof TCS Pace Ports enable customers to: Summon the best of the start-up ecosystem: TCS COIN Accelerators Engag
Slide 17: TCS Products and Platforms
TCS Products and Platforms BFSI DevOps Retail Life Sciences Cognitive AI CMI Agile Tools SMB BlockChain Extensive portfolio of frameworks, accelerators and toolsets across Enterprise Applications, IoT, Data and Analytics, Cloud migration, Cloud management and Cognitive Business Operations 17
Slide 18: Our New Brand Identity
Our New Brand Identity Brand Statement Our Narrative Building on belief Every business is born out of belief. The belief you can make an impact. That you have an idea that matters. Purpose At TCS, we go beyond helping businesses transform through technology. We help Building greater futures them mak
Slide 19: Longer Term Growth Strategy
Longer Term Growth Strategy CCS | TATA CONSULTANCY SERVICES
Slide 20: Customer-centric Strategy: Going Deeper, Casting Wider
Customer-centric Strategy: Going Deeper, Casting Wider AR/VR AI Talent Development Partnership Accountability Research & APIs & Superior Business Outcomes Cloud Ecosystems Innovation Microservices Putting the Highly Satisfied Customers Industry Contextual Customer at Relationship Intellectual Depth
Slide 21: Going Deeper, Casting Wider: Business Outcomes
Going Deeper, Casting Wider: Business Outcomes Large Client Metrics Rev per US$1 Million Client US$ 20 Mn+ US$ 50 Mn+ US$ 100 Mn+ 268 21.7 19.8 207 120 97 38 58 FY 2018 FY 2022 $ Mn FY 2018 FY 2022 21
Slide 22: Strong Organic Growth, with Market Share Gains
Strong Organic Growth, with Market Share Gains Revenue in US$ Mn 30000 1.4x Global Market for IT & ITeS 25000 2.5x 20000 1.6x 15000 Growth Multiples of closest 10000 2.1x global and India-based peers much more active in M&A 5000 2.3x 0 FY 2012 FY 2022 22
Slide 23: Consistent Profitable Growth for Long Term Value Creation
Consistent Profitable Growth for Long Term Value Creation Resilient, Industry-Leading Profitability Robust Cash Flow EBIT Margin: TCS vs Peers Cash Conversion Free Cash Flow OCF to Net Income USD Mn $5,257 110.0% $4,090 109.1% FY 2018 FY 2022 FY 2018 FY 2022 23
Slide 24: Shareholder-friendly Capital Allocation
Shareholder-friendly Capital Allocation 106% 91% 98% 105% 99% $5,131 $5,257 $5,094 $4,540 $4,433 $4,604 $4,233 $4,217 $4,090 $4,070 99% Average Payout FY 2018 – FY 2022 Amt in $ Mn FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Free Cash Flow Shareholder Payout (as % of Net Income) 24
Slide 25: Caring for the Community
Caring for the Community Volunteering Overall Impact Youth Employment Program 700,000 58,900 1.7 Mn 19,700 Hours Volunteers Beneficiaries rural youth across 35 Indian states BridgeIT goIT Ignite My Future $634 Mn 321 30,000+ 435,000 Invested since 2015 in entrepreneurs, across students across Empowe
Slide 26: Natural Capital
Natural Capital Energy Management and GHG Emissions Reduction Water Conservation Target: 70% reduction of Scope 1 + 2 emissions by 2025 (vs base Target: 3% YoY reduction in freshwater year 2016) and Net Zero by 2030 consumption across owned campuses Waste Reduction and Reuse Target: Reduction in was
Slide 27: TCS Strategic Responses to Opportunities and Threats
TCS Strategic Responses to Opportunities and Threats Opportunity / Threat TCS Approach Outcomes ▪ Greater interest in using ▪ Focused on developing contextual knowledge and applying that for ▪ Expansion of addressable market. technology to drive business inside-out transformations. ▪ Growing share o
Slide 28: TCS Strategic Responses to Opportunities and Threats
TCS Strategic Responses to Opportunities and Threats Opportunity / Threat TCS Approach Outcomes ▪ Greater acceptance of as-a-Service ▪ Strengthened alliances and launched new offerings around the ▪ Stronger win-win partnerships. platforms popular and new SaaS products. ▪ Expansion of addressable mar
Slide 29: Annexure
Annexure CCS | TATA CONSULTANCY SERVICES
Slide 30: Financial Highlights
Financial Highlights IFRS Amount in USD Mn, unless otherwise stated Yearly Quarterly FY 2022 FY 2021* YoY 4Q 2022 4Q 2021* YoY Revenue growth – Constant Currency 15.4% 15.9% Revenue - INR Mn 1,917,540 1,641,770 16.8% 505,910 437,050 15.8% Revenue $25,707 $22,174 15.9% $6,696 $5,989 11.8% Gross Profi
Slide 31: Thank You
Thank You CCS | TATA CONSULTANCY SERVICES
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