Ltm Limited · NSE:LTM
Ltm — LTIMindtree — Investor Day (November 2024)
98 slides from Ltm's investor day presentation, Nov 26, 2024
Slide 1: Investor Day 2024 - Presentation (exchange cover letter)
LTIM/SE/STAT/2024-25/93 November 26, 2024 National Stock Exchange of India Limited The BSE Limited, Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers, Bandra (E), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 NSE Symbol: LTIM BSE Scrip Code: 540005 Dear Sir(s)/Madam, Subject: Investor
Slide 2: Debashis Chatterjee, November 2024
Debashis Chatterjee November 2024 1
Slide 3: IT Outsourcing, Digital Acceleration, Digital at scale
2001 2008 2020 DOT.COM BUST WALL ST. HITS MAIN ST. PANDEMIC IT Outsourcing Digital Acceleration Digital at scale 2
Slide 4: Escalating geopolitical crisis, AI revolution, paused discretionary spending
Escalating Geopolitical crisis Game changing Exuberance in AI revolution discretionary spending paused 3
Slide 5: No time for incremental thinking, time for disruptive change
Client Technology Deal Competition Priorities Landscape Contours Mix No time for incremental thinking, time for “disruptive” change 4
Slide 6: Generative AI
Sustainability Cloud services Security Infra XaaS Generative AI 5
Slide 7: Roads, Cloud Computing, GPU Computing
Roads Cloud Computing GPU Computing (Mobility) (Digital at Scale) (AI at Scale) 6
Slide 8: We have a bold ambition
We have a bold ambition $10B $4:3B Maintainingiconsistent protitable growth OUTCOMES
Slide 9: Rapid technology disruptions, strategic pivot
Rapid technology disruptions Strong Foundation No easy dollars Strategic Pivot New competition dynamics Turbocharged Portfolio 8
Slide 10: Strong Foundation
Strong Foundation Scaled Marquee Deep Horizontal Top tier Strategic verticals client base capabilities partnerships Pivot BFSI, 100+ Data & Analytics, Hyperscalers, Technology Fortune 500 Experience, Core, Core platforms Turbocharged clients Cloud Portfolio 9
Slide 11: Infuse AI in everything we do
Strong Infuse AI in Foundation everything we do Strategic AI at scale, Pivot engineered together Turbocharged Empowering people, humanizing AI Portfolio 10
Slide 12: Strategic Pivot
Strong Foundation Strategic Pivot Legacy Migration & Marketing designs Faster & more Turbocharged Modernization for High-speed accurate enabled Portfolio @ Scale product launch Fund research 11
Slide 13: Dominate and Accelerate verticals
Strong Dominate Accelerate Foundation BFSI Manufacturing, Resources Technology, Media, Comms Healthcare, Lifesciences Strategic Pivot Consumer Business 2X 3X Turbocharged Portfolio Strategic Acquisitions 12
Slide 14: Horizontal capabilities: Innovation, Core, Disrupt
Strong Dominate Accelerate Foundation Innovation Experience & commerce Data, Digital Engineering, QE, iNxt Interactive, Low code Strategic Core Foundation Pivot SAP, Oracle, Cloud Apps, Industry Core Cloud & Infra, Security Turbocharged Portfolio Disrupt Platform Operations 13
Slide 15: Markets, Capabilities, Future Ready Organization
Elevating Outcomes Catch major Capabilities through AI spend waves Leveraging scale Punch above weight in Markets for growth key verticals Future Ready Holistic Investment Consistent Profitable Organization in talent Growth 14
Slide 16: Getting to the Future, Faster. Together.
Getting to the Future, Faster. Together. 15
Slide 17: Nachiket Deshpande, Rohit Kedia, Krishnan Iyer
Nachiket Deshpande Rohit Kedia Krishnan Iyer November 2024 1
Slide 18: Our industry has faced major paradigm shifts before
Our industry has faced major paradigm shifts before. The winners responded by making bold choices. 2
Slide 19: Global delivery model
1.1Mn+ 900K+ Offshore services H1B visas issued workers by 2005 Source: US Immigration council Source: McKinsey Cost Arbitrage GLOBAL DELIVERY MODEL Fundamental Innovation 1995 - 2005 3
Slide 20: Service decomposition and commercial accountability
24 B$ → 144 B$ Indian IT Industry (‘05 & ‘15) Service Source: NASSCOM Arbitrage Cost Arbitrage SERVICE DECOMPOSITION & COMMERCIAL ACCOUNTABILITY Fundamental Innovation 1995 - 2005 2005 - 2015 4
Slide 21: Digital-domain convergence
3x 23% <10% Digital GCC growth Growth of Digital Growth CAGR Arbitrage in India Pure-plays of Indian Tier 1 Service Source: NASSCOM Source: Company financials Source: Company financials Arbitrage Cost Arbitrage DIGITAL-DOMAIN CONVERGENCE Fundamental Innovation 1995 - 2005 2005 - 2015 2015 - 2023 5
Slide 22: AI-driven productivity
Productivity Arbitrage Digital Arbitrage Service Arbitrage AI-DRIVEN PRODUCTIVITY Cost Fundamental Innovation Arbitrage 1995 - 2005 2005 - 2015 2015 - 2023 2023 Onwards 6
Slide 23: AI Productivity Potential
AI Productivity Potential Developer Customer service Content creation productivity gains productivity gains productivity gains 35% to 45 % 30% to 40% 30% to 50% Source: McKinsey Source: BCG Source: Bain 7
Slide 24: Service, Talent and Operating Model Transformation
Service Transformation Talent Transformation Operating Model Transformation 8
Slide 25: What will it take for us to ride this wave?
=ZL=W\TING OUTCOMES What will it take for us to ride this wave? Al GLOBAL- DELIVERY MODEL © trimindtree 9
Slide 26: Infuse AI in everything we do, AI at scale, humanizing AI
Infuse AI in AI at scale, Empowering people, everything we do engineered together humanizing AI 10
Slide 27: Infuse AI in everything we do
© trimindtree Al IN EVERYTHING Infuse Al in everything we do =ZL=WTING OUTCOMES 11
Slide 28: Modernize, Build, Operate
AI in Experience Copilot for UX Design Augmented Creatives AI-Powered Marketing Campaigns AI in Digital Engineering Automated Code Generation AI-Powered Modernization AI-Generated Test Cases AI in Data AI Driven Data Quality AI-Powered Data Migration Conversational Analytics AI in Enterprise Apps AI
Slide 29: Co-pilots, AI Agents and Knowledge Fabric
Modernization Co-pilots Engineering Co-Pilots Operations Co-Pilots AI Agents Task Automation and Agentic Workflows Knowledge Fabric Business and IT Ontology Enterprise Knowledge Graph Small Language Models Knowledge Sources .. 13
Slide 30: Efficiencies committed, opex savings, vendors replaced
>40% ~30% 4 Efficiencies Opex savings Existing vendors committed committed replaced 14
Slide 31: Project documents created and video localization using AI
300 200 Project documents Hours of video created using AI localization using AI 15
Slide 32: Effort reduction and velocity acceleration
55% 30% 200+ Effort Velocity Applications reduction acceleration 16
Slide 33: Effort reduction to create content
75% 40% 30% Effort reduction to Faster time to Reduction in create content market operations cost 17
Slide 34: Requests delivered, higher volume
12,000+ 30% 30% Requests Higher volume Increase in the delivered handled open rate 18
Slide 35: Improvement in throughput and client satisfaction
20% 20% 15% Improvement in Enhancement in New business throughput client satisfaction upliftment 19
Slide 36: Talent, Supply Chain, Obligation Management use cases
Obligation Talent Supply Chain Employee Self Service Management Investor Relations Cybersecurity Software Engineering 20
Slide 37: Everything for AI: AI at scale, engineered together
© trimindtree EVERYTHING FOR Al Al at scale, engineered together =ZL=WTING OUTCOMES 21
Slide 38: Accelerated AI Cloud, Frontier Model Engineering
AI for Accelerated AI Frontier Model Model AI-Native Digital Enterprise Cloud Engineering As-a-Service Products Transformation 22
Slide 39: AI offerings detail
AI for Accelerated AI Frontier Model Model AI-Native Digital Enterprise Cloud Engineering As-a-Service Products Transformation Data engineering, Model serving with Integrated GPU and AI-infused agentic Data foundation, Pretraining, enterprise CPU, AI cloud product Responsible AI, AI Finetuning and g
Slide 40: AI Cloud, AI Platform, Agentic AI, Software
AI for Accelerated AI Frontier Model Model AI-Native Digital Enterprise Cloud Engineering As-a-Service Products Transformation AI Cloud AI Platform Agentic AI Software AI Infrastructure AI Lifecycle Platform Disruptive Agentic-AI GPU-as-a-service capabilities for enterprise AI Cloud Services Low-Cod
Slide 41: Full-stack Generative AI Platform for enterprises
1 Full-stack Generative AI Platform for enterprises LEVEL 4 ACTIONS LEVEL 3 45 LLM’s onboarded onto platform 10M + LLM requests per week 2 75 + 10 Designed for model interoperability, DECISIONING public/private cloud and extensibility Plug & Play Industry with API endpoints LEVEL 2 Services Micro-la
Slide 42: Faster tender management, reduced contract risk prediction time
40% 25% Faster tender Reduction in time for risk management activities prediction in contracts 26
Slide 43: Powered by LTIMindtree AI Platform
Powered by LTIMindtree AI Platform 27
Slide 44: AI for everyone: Empowering people, humanizing AI
© trimindtree Al FOR EVERYONE Empowering people, humanizing Al =ZL=WTING OUTCOMES 28
Slide 45: AI that is humane
AI AI AI THAT IS FOR FOR HUMANE HUMANS HUMANITY HUMAN IN CO-PILOTS TUNED FOR SOLVE FOR A THE LOOP LEARNING EVERY PERSONA BETTER WORLD 29
Slide 46: Co-pilots for every persona
Co-pilots for every persona Customer Claims Agent Software Engineer Marketing Planner Service Agent 50% 25% 30% 40% Reduction in claims Improved operational Improved developer Cost reduction for processing time efficiency productivity content creation 30
Slide 47: Portfolio Re-balancing advisor co-pilot
1 PM Portfolio Re-balancing Run simulation of future scenarios and provide optimized rebalancing 9 AM Portfolio Impact & Meeting 4 PM Priorities Performance Summary Prioritize and schedules meetings Help analyze own vs other with clients based on impact of news advisor performance and portfolio perf
Slide 48: Increased underwriter productivity
50% 10% 5% Increased Improved Improvement in underwriter retention rate loss ratio productivity 32
Slide 49: Increased beneficiary services for refugees
25% 45% Increased beneficiary Helpdesk services for refugees ticket reduction 33
Slide 50: Challenger approach to grow market share and win ratios
Challenger approach to Win in the new AI Frictionless AI adoption grow market share & economy at scale increase win ratios Capture new enterprise Win the talent war Launch new services spend with a disruptive proposition 34
Slide 51: Getting to the Future, Faster. Together.
Getting to the Future, Faster. Together. 35
Slide 52: Sudhir Chaturvedi, Harsh Naidu, Vijay Ram
Sudhir Chaturvedi Harsh Naidu Vijay Ram November 2024 1
Slide 53: Markets, Capabilities, Future Ready Organization
Elevating Outcomes Catch major Capabilities through AI spend waves Leveraging scale Punch above weight in Markets for growth key verticals Future Ready Holistic Investment Consistent Profitable Organization in talent Growth 2
Slide 54: Leveraging scale for growth
Leveraging MINECRAFT 2.0 ASPIRE PROJECT EVEREST PROJECT NEO • Maximize growth from • Increase cross-sell & upsell • Proactively shape and • Open and scale quality Focus 100 accounts – service line sales led close large deals new logos • Minecraft accounts • ~15% increase in Cross Sell • 45+ Large De
Slide 55: Large Deals (>$25M) Performance
=L=WTING OUTCOMES Large Deals (>$25M) Performance © Last 18 months © trimindtree 4
Slide 56: Large Deals by business unit
Manufacturing & Resources Banking, 33% Financial Services & Large Deals Insurance 45+ 30% In the last 18 months Consumer TCV Business 4% $2.0B+ Healthcare, Lifesciences & Public Services In the last 18 months Technology, Media & Communications 2% 31% 5
Slide 57: Total TCV $5B+
Total TCV $5B+ $100M+ deals $50M-100M deals 14 Deals, $1.9B 21 Deals, $1.3B 6
Slide 58: Deal mix: Vendor consolidation, empanelment, transformation
Empanelment Vendor Consolidation 10% 17% Transformation 23% GCC 2% Cost Optimization 48% 7
Slide 59: Punching above weight in Key Verticals
7 = , Me = a eo, - zreW Tine 4 P’ “ OUTCOME ya ele ee ms EGS A Punching above weight in Key Verticals © trimindtree
Slide 60: Banking, Financial Services & Insurance
=zL=W\TING OUTCOMES Banking, Financial Services & Insurance © trimindtree
Slide 61: BFSI client positions across segments
Global Banks US Custody Banks US Regional Banks US Asset Managers Payments Data Provider 50% of top 100 4 of top 5 14 of top 20 4 of top 10 3 of top 10 3 of top 5 Private Banks Development Banks PaaS US P&C Re-Insurance Insurer & Broker 20 of top 50 3 of Top 5 1T CAD AUM 10 of Top 15 3 of Top 10 5 o
Slide 62: Driving Revenue, Managing Cost, Helping Govern, Innovate with AI
Driving Revenue Managing Cost Helping Govern Innovate with AI Increase Revenue Improving Expense ratio Reg Tech @scale Advisors of the future Marketing and customer outreach Platform Operations Date strategy, risk, global reg reporting, Payments Modernization Core Transformation Remediation as a Ser
Slide 63: Product to customer centric, consolidation, localization, regulation
LOCALIZATION PRODUCT TO Most of the large institutions are CUSTOMER CENTRIC reducing their global footprint Re-segmenting markets and strengthening local presence COMPLEX REGULATORY CONSOLIDATION Strengthening their positioning REGIME through acquisitions Globally intertwined regulatory regime is be
Slide 64: Helping banks exit markets and merge platforms
Helping a large bank exit 7 markets Helping a mid size US bank in spinning off their insurance business Helping a large bank in reimagining their wealth business by merging 4 platforms that it acquired 13
Slide 65: Remediation and regulatory reporting as a service
Remediation as a service for IT and Ops risks for mid-sized banks Regulatory reporting as a service for EU and Asia regulations for a large global bank 14
Slide 66: Strong capabilities, permission to play at scale
Strong capabilities Permission to Core to experience play at scale Delivering superior client experience Zero distance to decisioning 15
Slide 67: Technology
=zL=W\TING OUTCOMES Technology © utminatree 16
Slide 68: Technology vertical segments and client positions
Semiconductor Computer, Networking & Enterprise Software and Devices Peripherals & Platforms 5 of Top 15 5 of Top 15 7 of Top 15 Semiconductor Hardware & ISVs firms OEMs 17
Slide 69: Software in everything, subscription economy
Software Subscription economy Dynamic pace of in everything fueled by consumption innovation Infinitely flexible Direct to customer, Continuous innovation, and scalable servitization of products faster releases Evolving consumer Continuous engagement Importance of creating expectations vs. one-time
Slide 70: Growing with the leaders
Work with leaders Work on crown jewels / Directly enable customer in each segment revenue centers success & growth Build enduring Drive cutting-edge Lead growth with strategic relationships tech products 360o partnerships .. hence growing with the leaders 19
Slide 71: Technology value chain: campaign impressions and personalization
Customer Service Customer & Operations Acquisition & Sales 2 billion+ Campaign impressions Training & Product for a large ISV Across the Engineering Documentation Technology value chain / Development 80% Infrastructure Personalization match rate Testing & for a software provider provisioning Validat
Slide 72: Availability, TCO reduction and revenue uplift
Customer Service Customer & Operations Acquisition & Sales 99.995% Availability for an ISV Training & Product Across the Engineering 30% Documentation Technology value chain / Development TCO reduction for an American networking major Infrastructure Testing & 2.5x provisioning Validation & deploymen
Slide 73: Cluster buildout cycle reduction
Customer Service Customer & Operations Acquisition & Sales 90% buildout cycle reduction, Training & Across the Product ~4K Documentation Engineering clusters built / year Technology value chain / Development to accelerate revenue flow for Infrastructure a large ISV Testing & provisioning Validation
Slide 74: Cloud migration of 1.48 million cores
Customer Service Customer & Operations Acquisition & Sales Additional cloud revenue via Training & Product at-scale migration of Across the Engineering Documentation 1.48 million cores Technology value chain / Development for a large ISV Infrastructure Testing & provisioning Validation & deployment
Slide 75: Automated testing for faster time-to-market
Customer Service Customer & Operations Acquisition & Sales Training & Product 80% Across the Engineering Automated testing for faster Documentation Technology value chain / Development time-to-market for a leading Tech infra player Infrastructure Testing & provisioning Validation & deployment Cloud
Slide 76: GenAI-enabled training and technical support
Customer Service Customer & Operations Acquisition & Sales 40% Increase in accuracy, 30% Training & Product Across the Engineering Field engineering effort Documentation reduction via GenAI-enabled Technology value chain / Development training & technical support for a leading Semiconductor Infrastr
Slide 77: Support cases per month in 14 languages
Customer Service Customer & Operations Acquisition & Sales Training & Product 55,000+ Across the Engineering Cases per month Documentation Technology value chain / Development for 40+ products & services in 14 languages for a large ISV Infrastructure Testing & provisioning Validation & deployment Cl
Slide 78: Voice of Customer insights for sales and product
Customer Service Customer & Operations Acquisition & Sales Voice of Customer & insights to Field Sales Training & Product for more effective campaigns Across the Engineering Documentation Technology value chain / Development Product backlog and feature prioritization Infrastructure deduced from Voic
Slide 79: Leveraging ecosystem synergies
Grow with the customer (& drive their growth) Disrupt platform engineering & support with Gen AI Ride the Data center / Semiconductor wave ..by leveraging ecosystem synergies 28
Slide 80: Getting to the Future, Faster. Together.
Getting to the Future, Faster. Together. 29
Slide 81: Chetana Patnaik, November 2024
Chetana Patnaik November 2024 1
Slide 82: Headcount, attrition, diversity, nationalities
Headcount Attrition Diversity Nationalities 84,438 14.5% 30.6% 100+ TTM Women 1.1% 70 bps Incl. LGBTQ+ & Across 42 YoY YoY Differently abled countries * Data as of Q2, FY25 2
Slide 83: Attract, Engage, Thrive
Higher flexibility at work Attract Access to cutting-edge technology Engage Faster career progression Inclusive, empathetic culture Thrive 3
Slide 84: Attract, Engage, Thrive: hiring and delivery footprint
Differentiated hiring strategy for niche skills Attract Experience | Leverage referral and Flexibility alumni connect Engage Superior candidate experience and onboarding Thrive Expanding delivery footprint 4
Slide 85: Re-imagining Talent Experience
Re-imagining Attract Talent Experience Enabled by Engage Connect | Collaborate RHYTHM GIGSPACE Vibrant workspace Internal Gig Hi-Touch with Hi-Tech Opportunities Thrive 5
Slide 86: Learn and grow: continuous learning culture
Attract Role-based Proactive Individualized Engage cross-skill Leadership Career up-skill Development journeys Thrive Learn | Grow Continuous learning culture 6
Slide 87: AI for Talent, Talent for AI
AI for Talent Talent for AI Attract & Scale New Sources of Talent AI-infused candidate and Linguistic skills, core sciences, onboarding experience industry expertise Engage Focus on learnability Using AI across moments that matter in Problem solving, algorithmic thinking the entire employee lifecycl
Slide 88: Getting to the Future, Faster. Together.
Getting to the Future, Faster. Together. 8
Slide 89: Vipul Chandra, November 2024
Vipul Chandra November 2024 1
Slide 90: Revenue CAGR 13.2%, operating margin band 15%-18%
CAGR 13.2% 4,287 4,106 3,502 2,614 2,747 2020 2021 2022 2023 2024 Operating Margin band: 15%-18% 2
Slide 91: Positive impact of the new scale
=zL=W\TING OUTCOMES Positive impact of the new scale is visible Balanced Business All - Large deal | Participation als Client Wallet Share Capabilities and | Leadership Depth © ttimindtree
Slide 92: Scaled verticals, strong capabilities, growing pyramid, expansion
Scaled Verticals Strong Capabilities Growing pyramid Expansion 1B+ Strength 100+ Fortune Global size areas 500 clients 10+ new countries BFSI Innovation China Taiwan 12 $50M+ Tech, Media & Comm. Core Brazil Greece 42 $20M+ South Czech 500M+ size Accelerate Republic Korea 88 $10M+ Experience & Commer
Slide 93: Utilization, effort mix, revenue per employee, subcon cost
Utilization (excl. trainees) (%) Effort Mix (%) Onsite Offshore 86.4% 88.0% 84.5% 82.9% 84.1% 85.2% 85.1% 84.6% 15.9% 14.8% 14.9% 15.4% FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 H1FY25 Revenue per employee ($ '000s) Subcon cost (%) Subcon cost (% to revenue) 9.0% 8.5% 7.2% 7.2% 48.7 48.0 51.9 53.0 FY22 F
Slide 94: Revenue Maximization and Bending the Cost Curves
Revenue Bending the Cost Productivity Overheads Maximization Curves • Growth • Pyramid & • Revenue Per • Eye on Average Costs Person discretionary • Value based spends Pricing • Right sizing in • Automation & AI Managed • Increase in Services Overheads < Revenue Growth 6
Slide 95: DSO, cash flow, cash and investments, dividends
DSO Cash flow ($M) Billed Unbilled 90 91 80 FCF ($M) FCF % to Net Income 81 105.5% 28 31 23 21 55.6% 49.0% 62 60 57 60 584 295 267 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 Cash and Investments ($M) Dividends (INR Mn) 1,429 1,924 1,382 1,775 1,563 1,045 1,017 FY22 FY23 FY24 H1FY25 FY22 FY23 FY24 Declared
Slide 96: ESG journey so far, accolades, way forward
Journey so far Accolades Way Forward • 43% Renewable Energy Usage • 85% renewable energy use by • 95% Waste Recycling 2030 Environmental • 75% reduction in Scope 1 • 100% waste recycling by 2030 Emissions • Scale up of Green Tech offerings • 40% women in workforce by 2030 • 30.6% Women in workforce
Slide 97: Consolidate, Invest, Champion
CONSOLIDATE INVEST CHAMPION Integration and Super-scale accounts $10B Revenue Stabilization Be the Best @ AI 17-18% EBIT LTIM One execution Strategic Acquisitions Talent of the future 9
Slide 98: Getting to the Future, Faster. Together.
Getting to the Future, Faster. Together. 10