Slide 1: HCL Technologies Investor Presentation First Quarter FY'16
HCL TECHNOLOGIES INVESTOR PRESENTATION | FIRST QUARTER FY‘16 -1- WHERE VALUES DRIVE VELOCITY
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Slide 3: 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 4: Where Values Drive Velocity
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Slide 5: Contents
CONTENTS SLIDE TITLE SLIDE REFERENCE Perspective and Q1 FY’16 Performance 7 – 10 Perspective on Addressable Market 12 – 15 Financial Snapshot Q1 FY’16 17 – 19 Consolidated Income Statement (in US$ mn) 18 Strong Business & Operating Metrics 19 Corporate Governance 21 – 23 Key Messages 24 -5- WHER
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Slide 7: Perspective and Q1 FY'16 Performance
PERSPECTIVE AND Q1 FY’16 PERFORMANCE -7- WHERE VALUES DRIVE VELOCITY
Slide 8: Performance Trends (on LTM Basis)
PERFORMANCE TRENDS (ON LTM BASIS) REVENUE EBIT 1,332 1,280 6,063 5,523 4,843 1,015 In USD Mn In USD Mn SEP '13 SEP '14 SEP '15 SEP '13 SEP '14 SEP '15 NET INCOME CLIENT CATEGORY 6 7 7 15 18 11 1,118 1,120 Number of Clients 19 20 24 43 37 800 29 In USD Mn 75 67 57 133 115 105 SEP’13 SEP’14 SEP’15 100
Slide 9: Balanced Portfolio Concomitant with Broad Based Growth
BALANCED PORTFOLIO CONCOMITANT WITH BROAD BASED GROWTH SEP’15 - IN CONSTANT CURRENCY GEOGRAPHY QOQ GROWTH YOY GROWTH HCL 1.2% 13.5% 11% Americas 0.7% 12.3% 31% Europe 5.6% 18.2% 58% RoW -8.4% 5.8% SERVICE LINES 19% Application Services 0.1% 6.4% 41% Infrastructure Services 0.9% 16.3% 5% Business Ser
Slide 10: Performance Drivers
PERFORMANCE DRIVERS EUROPE DIGITALIZATION SERVICES ■ Europe at 18.2% YoY on a constant currency basis is leading the ■ Digital business is embedded in all the service lines. growth. ■ Focusing on digitizing the whole value chain, rather than only on the ■ Significant momentum gathering in Germany an
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Slide 12: Perspective on Addressable Market
PERSPECTIVE ON ADDRESSABLE MARKET - 12 - WHERE VALUES DRIVE VELOCITY
Slide 13: State of the Market
STATE OF THE MARKET Gartner: IT Services Market to Grow 3.7% in 2015 in Rebid Market: Cloud/IUS will be Key Factors in Renewals Constant Currency 2015–19 CAGR IT Services Growth Rates (CY15) 2014 2015 2016 $150Bn* Worth of Renewals Over 2016, 2017 and 2018 (*Source ISG: Non Government and BPO) Cloud
Slide 14: HCL – Business and IT Services Strategic Play
HCL – BUSINESS AND IT SERVICES STRATEGIC PLAY 2016 – 2020 Digitalization Next–Gen ITO Internet of Things HCL Outcome – Business Model Transformation Hybrid Cloud SIAM Consumer IoT Based Models Strategic Front–Office to Back–Office DryIce: Automation with Industrial IoT Play Orchestration Customer Ex
Slide 15: Rebid Market Continues to be Strong
REBID MARKET CONTINUES TO BE STRONG ~$146BN OF TCV EXPECTED OVER NEXT THREE YEARS; CHURN RATE HAS INCREASED TO 40% FROM 34% IN LAST 2 YEARS Total Renewal Opportunity in $ bn* 2016-18 Horizontal Split* 51 Applications, 50 15% 46 Infrastructure, 55% Full ITO, 30% CY 16 CY 17 CY 18 2016-18 Vertical Spl
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Slide 17: Financial Snapshot Q1 FY'16
FINANCIAL SNAPSHOT Q1 FY'16 - 17 - WHERE VALUES DRIVE VELOCITY
Slide 18: Consolidated Income Statement (in US$ Mn)
CONSOLIDATED INCOME STATEMENT (IN US$ MN) Q1, FY’16 Constant currency revenue growth at 1.2% QoQ and 15.3% on LTM YoY EBIT (Ex Adj.) at $ 317 Mn; Revenue at US$ 1,545 Mn; up 0.5% QoQ in reported currency Annualized GAAP EPS (Diluted) – INR 52 (Ex Adj) Income Statement 30-Sep-15 Ex Adj 30-Sep
Slide 19: Strong Business & Operating Metrics (LTM Basis)
STRONG BUSINESS & OPERATING METRICS (LTM BASIS) Client Business Mix Healthy Cash Conversion 4.3% 77% 68% 50% TRACTION IN 41% 3.8% NEW CLIENTS SEP '14 SEP '15 OCF/ NI FCF/ EBITDA New Clients SEP '14 SEP '15 Managed Services & Fixed Price Projects Key Highlights ■ Increase in New Clients contribution
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Slide 21: Corporate Governance
CORPORATE GOVERNANCE - 21 - WHERE VALUES DRIVE VELOCITY
Slide 22: Corporate Governance
CORPORATE GOVERNANCE TENETS & PHILOSOPHY AWARDS/ RECOGNITIONS FRAMEWORK FOR TRUST & FAIRNESS HCL has been ranked in Forbes TRANSPARENCY & EQUITY CODE OF BUSINESS Asia's prestigious annual listing of the 50 best publicly traded Code of Business companies in Asia-Pacific called STRONG Ethics and Condu
Slide 23: Board of Directors
BOARD OF DIRECTORS Mr. Shiv Nadar, Chairman and Chief Strategy Officer: Founder of HCL and recipient of Padma Bhushan award. Through Shiv Nadar Foundation, Mr. Nadar has been actively associated with numerous philanthropic initiatives with prime focus on education. Holds iconic global status in IT T
Slide 24: Key Messages
KEY MESSAGES KEY FOCUS AREAS Next-Gen ITO, Engineering and R&D Services and Modern Apps & Digitalization gaining traction. STRONGLY POSITIONED IN THE MARKET Rebid market continues to look attractive with churn rate of healthy 40%, up from 34% in last 2 years. Unexecuted order book is at highes
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