L&t Technology Services Ltd. · NSE:LTTS
L&t Technology Services — Investor Day (September 2021)
94 slides from L&t Technology Services's investor day presentation, Sep 2, 2021
Slide 1: Filing cover letter: Investor Presentations
L&T Technology Services Limited L&T Business Park, TC 2 Tower B, Second floor, North East Wing, Gate no.5, Saki Vihar Road, Powai, Mumbai – 400072 www.ltts.com September 2, 2021 National Stock Exchange of India Limited The BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers, B
Slide 2: Keynote Address
Keynote Address Amit Chadha Chief Executive Officer & Managing Director INVESTOR & ANALYST DAY (IAD) 2021
Slide 3: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 4: Agenda
AGENDA Technology Disruption in Our Day and Age LTTS, a Reflection Vision for Future Strategy and Way Forward In Summary IAD 2021| L&T Technology Services | www.LTTS.com 3
Slide 5: The Hierarchy of Human Needs Is Being Repurposed
THE HIERARCHY OF HUMAN NEEDS IS BEING REPURPOSED Maslow’s Hierarchy of needs In a rapidly Disrupting World… Global IoT 25 Bn Devices 8.7 Bn Self Actualization 0.8 Bn 2010 2020 2030E Esteem Has Created Industrial Robots 20 Mn Belongingness Installed Opportunities to 121 K 465 K Scale with Safety 2010
Slide 6: The World in 2030
THE WORLD IN 2030 Benefits of connected Transportation & Tech. Technology led Healthcare New ways in Factories, Home tech Breakthroughs Revolution Brick & Retail 71% expect use of fully 20 Mn Robots in electric vehicles factories 75% will use remotely monitored devices & voice activated appliances 5
Slide 7: Our Journey: The Thrust to Propel Beyond Orbital Velocity
OUR JOURNEY: THE THRUST TO PROPEL BEYOND ORBITAL VELOCITY… Built on a Strong Foundation FY17 FY18 FY19 FY20 FY21 Listed on Milestones 1st $100 Mn “Best Company for Excellence in Services” 2nd $100 Mn Deal (Hi-Tech) For CSR Deal (O&G) Launched Digital IACC Footprint Auto proximity site, Security prac
Slide 8: Measuring Up Against Our Competition
MEASURING UP AGAINST OUR COMPETITION Scale & Scalability, # of verticals serviced, Client spread ER&D Services Ratings 2020 Expansive Niche Emerging Established Specialization, R&D practice maturity , Innovation & IP, Eco-system linkages, Customer Input IAD 2021| L&T Technology Services | www.LTTS.c
Slide 9: We Are Ready to Pivot to Our Next Growth Trajectory
WE ARE READY TO PIVOT TO OUR NEXT GROWTH TRAJECTORY… Largest Pure-play Engineering Services Company from India Re-affirmed Go-forward Strategy 5 4 Digital 57 of 100 Segments Horizontals @54% of Revenue Top Spenders as Clients Strengthened Operating Model Curated Technology CTO office 719 Innovation
Slide 10: Our Vision: Top 5 Global Pure Play Engineering Services Provider
Our Vision: Be amongst the Top 5 Global Pure Play Engineering Services Provider of choice IAD 2021| L&T Technology Services | www.LTTS.com 9
Slide 11: Our 6 Dimensional Glide Path
OUR “6 DIMENSIONAL” GLIDE PATH People Technology 03 04 Engagement Quotient N Customer Sustainable 02 05 Operating Model Centricity W E Environmental Industry Leading 01 06 Social & Growth S Governance (ESG) Profitable, Sustainable & Inclusive Growth IAD 2021| L&T Technology Services | www.LTTS.com 1
Slide 12: Investing in Six Strategic Growth Areas
WE ARE INVESTING IN SIX STRATEGIC GROWTH AREAS… EACV MedTech 5G 25% of Cars to be EV by 2025E $200 Bn by 2025E $155 Bn by 2025E AI & Digital Products Digital Manufacturing Sustainability $100 Bn by 2025E $475 Bn by 2025E $400 Bn by 2025E IAD 2021| L&T Technology Services | www.LTTS.com Market estima
Slide 13: MedTech: Engineering Healthcare for a Better Tomorrow
MEDTECH: ENGINEERING HEALTHCARE FOR A BETTER TOMORROW MedTech Offerings Next-Gen Solutions Device Engineering Infection • Product Design Services Management • Software Engineering Platform • Value Engineering • Product Testing, Sustenance Support Digital & Decision Support Endotrainer • Digital Plat
Slide 14: 5G: The Next Frontier in Reliable and Fast Connectivity
5G: THE NEXT FRONTIER IN RELIABLE AND FAST CONNECTIVITY LTTS as Engineering Partner in NPD (Device & Chip) Private Networks • 5G Device Design & Integration • Pvt. Network Deployment Services • 5G Chip Design • MEC Applications IoT • Managed Services Network Assurance Lab-as-a-Service • Network Desi
Slide 15: The World Is Embracing Sustainability, and We Are Ready
THE WORLD IS EMBRACING SUSTAINABILITY, AND WE ARE READY… Green Product Compliance UN Sustainable Development Goals Renewables & Energy Light Management Weighting LTTS Offerings For The Circular Economy Zero Liquid Discharge Green & Water Mgmt. Sourcing Sustainability goals with Engineering Footprint
Slide 16: We Continue to Scale Softwarization in Product Engineering
WE CONTINUE TO SCALE SOFTWARIZATION IN PRODUCT ENGINEERING Transition from… To… FY 22 FY 23 FY 24 Digital Twin Digital Twin, Virtual Precision Simulations Cloudification Cloud Native, Microservices, Service Mesh AI Embedded AI and AI enabled HW Accelerators Automation Low Code-No Code Dev, Hyper Aut
Slide 17: Experienced and Proven Global Leadership Team
EXPERIENCED AND PROVEN GLOBAL LEADERSHIP TEAM CEO & MD CSO Americas & Asia Delivery COO & WTD CFO CTO CHRO CMO Strategy Excellence Verticals Sales EU Transportation Industrial Products Hi-Tech Plant Engg. Medical Client centricity India & ME Horizontals Digital Mfg. Digital S/w Prods. Embedded Mecha
Slide 18: Developing Leaders for Tomorrow
DEVELOPING LEADERS FOR TOMORROW A Affiliative Leadership Promote positivity & Celebrate Collaboration with Teamwork B Build & Nurture High Performers C Create Technical Trailblazers Collaborate with leading academia for Technology Leadership IAD 2021| L&T Technology Services | www.LTTS.com 17
Slide 19: Our Commitment to Society
OUR COMMITMENT TO SOCIETY Makeshift Hospital for Covid-19 Building Disaster Resilient Homes 24/7 Free ICU Ambulance Service Revitalizing Parched Lands Preventive Measures for the Empowering Tribal Women through Watershed Management Underprivileged against Cancer through Skill Building IAD 2021| L&T
Slide 20: In Summary
IN SUMMARY… We have Chartered our Journey to Scale with a 6-Dimensional Glide Path… …and aim to reach $1Bn run rate by Q2-Q3 FY23 & $1.5Bn run rate in FY25 with 18% EBIT YOU IAD 2021| L&T Technology Services | www.LTTS.com 19
Slide 21: Engaging Customers for Profitable Growth
Engaging Customers For Profitable Growth Alind Saxena Chief Sales Officer - Americas & Asia INVESTOR & ANALYST DAY (IAD) 2021
Slide 22: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 23: Changing Market Conditions
CHANGING MARKET CONDITIONS… CEO Survey 2021 “We have decided that we will “We increased our EV and AV invest whatever it takes to win in investments to $27 billion from 5G” 2020 through 2025” - Pekka Lundmark - Mary Barra 97% 71% 95% President and CEO, Nokia Chair and CEO, GM Expect Global Expect Gl
Slide 24: Leading to Changing Customer Needs
…LEADING TO CHANGING CUSTOMER NEEDS… DIGITAL ENGINEERING Our Play Engineer Digital Products • Connected products: Edge | Secure | Integrated • Collaborative products: Smart IoT | DevOps| SecOps • Intuitive products: Embedded AI| High Performance Leverage Digital in Engineering Processes • Asset Reli
Slide 25: Generating Significant Demand in Digital Engineering
…GENERATING SIGNIFICANT DEMAND IN DIGITAL ENGINEERING ER&D Spend All Data in $Bn 90 6% 75 215 20 $1.7 - 1.9 Tn 197 3% 22% Industrial $1.3 Tn Transport 36 11 27 11% 2% 64 70 170 179 2020E 2023E 3% 2020E 2023E 2020E 2023E $459 Bn Western Europe $833 Bn $457 Bn 12% 615 102 North America 9% Healthcare A
Slide 26: Customer Centricity Core to Our Industry Leading Growth
“CUSTOMER CENTRICITY” CORE TO OUR INDUSTRY LEADING GROWTH SUPER-SIZING ACCOUNTS MEGADEALS ADJACENTS GEO STRATEGY IAD 2021| L&T Technology Services | www.LTTS.com 6
Slide 27: Super-sizing Accounts
SUPER-SIZING ACCOUNTS… 01 Solutioning with Partners 10 - 12% + New Client Personas 2 - 4% Carve Outs Products/Labs/Services + Broaden Regions and Divisions 3 - 5% Delivery Led Growth Growth IAD 2021| L&T Technology Services | www.LTTS.com 7
Slide 28: For Our Accelerated Growth
…FOR OUR ACCELERATED GROWTH 01 FY21 A FY24 E 50 + - 1 - 30 - 50 6 3 20 - 30 12 17 10 - 20 20 # of Accounts $ Mn # of Accounts IAD 2021| L&T Technology Services | www.LTTS.com 8
Slide 29: Landing Megadeals
LANDING MEGADEALS 02 The Proven Combination Structured Ideation Process Scale and Velocity Experienced Large Deals Team Digital Transformation Advisor & Analyst Management of Change Relationship Carveouts: Alliances & Labs/Products/Functions Partnerships IAD 2021| L&T Technology Services | www.LTTS.
Slide 30: Art of Working with Adjacents
ART OF WORKING WITH ADJACENTS Disruptive Adaptive Conventional 03 Illustrative companies IAD 2021| L&T Technology Services | www.LTTS.com 10
Slide 31: Geo Strategy
GEO STRATEGY 04 NORTH EUROPE AMERICA JAPAN Strengthen Proximity Centers through Expand Medical & Hi-Tech Leadership, Local SMEs and Ecosystem Partners in Europe IAD 2021| L&T Technology Services | www.LTTS.com 11
Slide 32: Growth in Last 4 Quarters
GROWTH IN LAST 4 QUARTERS… YoY Growth % End User $ Mn LTTS Sub-Vertical Spending Q1 FY21 v/s Q1 FY22 20% TRANSPORT AUTOMOTIVE 19% CONST. & HEAVY M/C 206 198 INDUSTRIAL AEROSPACE 190 21% INDUSTRIAL PRODUCTS 178 PLANT ENG 35% 171 4% HI-TECH OIL & GAS Organic CQGR CPG 18% MEDICAL DEVICES HI-TECH Q1 Q2
Slide 33: Large, Multi-Year Engagements
…LARGE, MULTI-YEAR ENGAGEMENTS… NORTH AMERICA EUROPE ROW 39* Large Deals 72% 21% 8% 19 New Logos 40% 40% 20% $100Mn Contract from Design and Development Partner End-to-end 5G Automation Services Global Oil and Gas Firm For NA EV Automotive OEM Contract from Global Telecom Tier-1 *Last 4 Quarters – 5
Slide 34: And Wins Across Strategic Areas
…AND WINS ACROSS STRATEGIC AREAS Electric, AI & Digital Autonomous, MedTech 5G Sustainability Digital Products Manufacturing Connected Vehicles Wins In Big Bets* 4 1 3 7 8 - Deals Pipeline 16 12 5 6 7 5 *Last 4 Quarters – 5M+ Deals IAD 2021| L&T Technology Services | www.LTTS.com 14
Slide 35: Preferred Partner for Future-Driven Organizations
PREFERRED PARTNER FOR FUTURE-DRIVEN ORGANIZATIONS TRANSPORT 8 OF TOP 10 INDUSTRIAL 7 OF TOP 10 57 HI-TECH of Top 8 OF TOP 10 LTTS 100 R&D HEALTHCARE Spenders 3 OF TOP 5 PLANT ENGINEERING 7 OF TOP 10 IAD 2021| L&T Technology Services | www.LTTS.com 15
Slide 36: Thank You
TIn/AINI< YOU
Slide 37: Sustainable Operating Model
SUSTAINABLE OPERATING MODEL Abhishek Sinha Chief Operating Officer & Whole Time Director INVESTOR & ANALYST DAY (IAD) 2021
Slide 38: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 39: Our Operational Excellence Story Over the Years
OUR OPERATIONAL EXCELLENCE STORY OVER THE YEARS*… UTILIZATION OFFSHORING C&B GROSS MARGIN (% of Revenue) 79.2% 58.1% 33.4% 75.1% 50.8% 720 29.1% BASIS POINTS INNOVATION LABS NET PROMOTER PATENTS GENDER DIVERSITY SCORE 69 719 38 254 1810 330 BASIS POINTS BASIS POINTS *From Q1 FY18 to Q1 FY22 LTTS rec
Slide 40: Founded on the Tenets of Engineering the Change
… FOUNDED ON THE 4 TENETS OF “ENGINEERING THE CHANGE” CUSTOMER DELIVERY TECHNOLOGY 02 EXCELLENCE CELEBRATION 01 ENGINEERING THE CHANGE SYSTEMS TALENT COGNITION INVESTMENT 04 03 US-based TITAN Business Awards 2021 recognized LTTS as the IAD 2021| L&T Technology Services | www.LTTS.com Most Innovative
Slide 41: We Believe in Celebrating Technology Everyday
WE BELIEVE IN CELEBRATING TECHNOLOGY EVERYDAY … 01 INNOVATION PROGRAMS EACV MedTech 5G AI & Digital Products Digital Mfg. Sustainability TECHNOLOGY PARTNERSHIPS STRUCTURED INVESTMENTS Futuristic Technology R&D Projects Systems CII recognized LTTS as one of the most innovative Indian companies in the
Slide 42: Creating Customer Value via Crosspoll!nnovation
… AND CREATING CUSTOMER VALUE VIA CROSSPOLL!NNOVATION 01 TRANSPORTATION PLANT INNOVATION BREWING @ LTTS ENGINEERING INDUSTRIAL PRODUCTS HI-TECH MEDICAL 5G TCU Testing from our Hi-Tech Battery operated Autonomous Welding Annotation Technology from Segment for a Transportation Robot from Industrial Pr
Slide 43: We Are Primed for the Next Big Leap
WE ARE PRIMED FOR THE NEXT BIG LEAP … 02 PRACTICE – LED ORGANIZATION • Customer Alignment SUPERSIZED ACCOUNTS • Focused Investments • Right Structure - Customer Technology Officer • LTTS <Customer> Academy LEADERS FOR TOMORROW LARGE DEALS XTREME OFFSHORING • Start Green, Stay Green • Next - Gen Gove
Slide 44: As We Enter the Era of Xtreme Offshoring
… AS WE ENTER THE ERA OF XTREME OFFSHORING 02 PREDICTABLE QUALITY GLOBAL INDUSTRY DIGITAL CONNECT SPECIFIC STANDARDS FOR CUSTOMER DELIVERY LED GROWTH EVOLVING TALENT DEMOGRAPHICS IDC rated LTTS as ‘Leader’ in Worldwide Business and Industrial IoT IAD 2021| L&T Technology Services | www.LTTS.com Engi
Slide 45: Prepared for the Evolving Talent Demographics
WE ARE PREPARED FOR THE EVOLVING TALENT DEMOGRAPHICS … 03 Ph.D./Research Associate Post-graduate Graduate Laterals Diploma Freshers Current State Future State Current State Future State Full time Male Contract Current State Future State Female Current State Future State Gig LTTS’ HR Team recognized
Slide 46: As We Embrace the Paradigm Shift @WFX
… AS WE EMBRACE THE PARADIGM SHIFT @WFX 03 WFX WFX Certification Hot-Desking WFO WFH PROJECT MANAGER AT THE CORE IT & HR Investments Talent Development 200+ SECURITY PROJECT MANAGERS CERTIFIED HOME LABS ENGAGEMENT LTTS has been recognized for Best Workplace Practices by Financial Express IAD 2021| L
Slide 47: Continue to Invest in Talent for Tomorrow
… AND CONTINUE TO INVEST IN TALENT FOR TOMORROW 03 Global Engineering Academy (FY21 Highlights) Road Ahead: Enabling Deeper Engagement 200 Certification Programs 1,500 Graduate Trainees Global GEA (Democratized Learning) STEP-IN, GENESIS, GENESIS-PRO Joint Partnership With Universities 2,000 70% Org
Slide 48: Powered by Digital Systems
… POWERED BY DIGITAL SYSTEMS 04 COLLABORATIVE PLATFORM FOR ENTERPRISE (Agility) OPERATIONS ON MOBILE (Flexibility) COGNITIVE AUTOMATION TOOLS/LIBRARY (Productivity) CROWDSOURCING PLATFORM (Creativity) AI DRIVEN OPERATIONS (Predictability) LTTS’ AI-based framework AiKno® recognized with the annual IM
Slide 49: What Is Special About Work @LTTS?
SO, WHAT IS SPECIAL ABOUT WORK @LTTS? LEARNING & NEXT-GEN LEADERSHIP CAREER EMPLOYEES ENGINEERING THE 17,000 CHANGE Multi-Dimensional Technocrats CROSSPOLL!NNOVATE TECH WE CARE INVESTMENTS Innovation Labs, Employee 1ST EXPERIMENT & Wellbeing EXPLORE Futuristic CITIZENSHIP Technology Pure-Play Engine
Slide 50: Our Operational Excellence Journey
OUR OPERATIONAL EXCELLENCE JOURNEY…..AS WE WIN IN THE TURNS CUSTOMER DELIVERY Pyramid Diversity EXCELLENCE Tech Utilization Quotient Digital Offshoring Systems TECHNOLOGY TALENT CELEBRATION INVESTMENT WFX SYSTEMS COGNITION GROSS MARGIN (%) 35% 30% 33.4% 25% 20% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY2
Slide 51: Thank You
TIn/AINI< YOU
Slide 52: Electric Autonomous Connected Vehicles (EACV)
ELECTRIC AUTONOMOUS CONNECTED VEHICLES (EACV) Shailendra Shrivastava Seema Ghanekar Global Delivery Head Global Delivery Head Transportation Industrial Products INVESTOR & ANALYST DAY (IAD) 2021
Slide 53: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 54: Software Driven Car: Future of Mobility
SOFTWARE DRIVEN CAR: FUTURE OF MOBILITY Focus on component development & integration OEM as the integrator working with Tier-1s Interior BIW Powertrain OEMs focusing at owning SW/ Stacks & influencing Semicons SoC designs Exterior Chassis Electronics Autonomous Electrification Connected Shared IAD 2
Slide 55: Our Strategy & Credentials
OUR STRATEGY & CREDENTIALS Electrification Connected Autonomous Market Size $ 129 B 2025 Market Size $ 32 B 2025 Market Size $7B 2025 • End-end component capability • Integrated next-gen • AI/ ML driven perception & digital cockpit vehicle control • Systems engineering • 5G & C-V2X • Data management
Slide 56: Our Electric Vehicle Platform Journey
OUR ELECTRIC VEHICLE PLATFORM JOURNEY EV 1.0 Front wheel drive gear Integrated powertrain box & differential architecture Integrated inverter & converter (IIDD) Grid DC fast Integrated Modular charger (V2G) E-axle battery pack BLDC Motor Industrial Grade EV Reusable Rapid prototyping DAB technology
Slide 57: Investing in Innovation: Electric Vehicle Testing Lab
INVESTING IN INNOVATION: STATE-OF-ART ELECTRIC VEHICLE TESTING LAB Components we test Testing solutions we provide e-Motors E-Chargers Performance Testing Inverters Battery Functional Testing DC-DC Converters Endurance Testing IAD 2021 | L&T Technology Services | www.LTTS.com 6
Slide 58: Off-Board Charging Infrastructure
OFF-BOARD CHARGING INFRASTRUCTURE PV + Battery + EV Charging 50 kWh Setup in Vadodara Multi-source energy input Optimized hybrid Fast (Solar/Grid/Fuel cell) energy controller charging 1. Solar Energy Cloud Infrastructure 4. Hydrogen Energy DB Payment Gateway 2. Stored Energy CMS (UI) EV-EVSE Communi
Slide 59: Connected & Digital Cockpit Platform
CONNECTED & DIGITAL COCKPIT PLATFORM Key Drivers 5G enabled next gen digital cockpits with multiple displays Voicification for driver and passenger interactions Advanced UI/ UX Over the air ADAS/AD Integrated EV Key features Car applications to manage and monitor all functions Connected Patented Blu
Slide 60: Autonomous Drive Platform
AUTONOMOUS DRIVE PLATFORM Traffic sign recognition Object detection & classification using monocular camera Unified framework for multiple ADAS Driver monitoring systems applications Mechatronics – Precise controls for Automatic emergency braking mechanical components IAD 2021 | L&T Technology Servi
Slide 61: The Drive Ahead
THE DRIVE AHEAD Develop Innovest Engage Competencies Eco-System Redefine Velocity Skillset D R I V E IAD 2021 | L&T Technology Services | www.LTTS.com 10
Slide 62: Thank You
TIAA YOU
Slide 63: Digital Manufacturing Services: Roadmap and Investments
Digital Manufacturing Services Roadmap and Investments Prabhakar Shetty Global Head Digital Manufacturing Services INVESTOR & ANALYST DAY (IAD) 2021
Slide 64: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 65: Digital Manufacturing Transformation: Current State of Adoption
DIGITAL MANUFACTURING TRANSFORMATION Current State of Adoption Scaled and mature I4.0 adoption Early stages of adoption/ 5% across the enterprise 23% exploring the potential of I4.0 Implemented in parts of the Not thinking of adopting any 24% organization (siloed operations) 14% Industry 4.0 initiat
Slide 66: Digital Manufacturing Transformation: Market Opportunity
DIGITAL MANUFACTURING TRANSFORMATION Market Opportunity Global Business Industry 4.0 spend In-house Outsourced 80-85 Billion USD, 2019 Spending Spending ~90-92% ~8-10% 15-16% Forecasted CAGR Operations After-sales Logistic 37% 25% 19% 11% 8% Design & Development Procurement - Everest Group Strategy
Slide 67: Digital Manufacturing Transformation: Physical to Digital
DIGITAL MANUFACTURING TRANSFORMATION Physical to Digital Business/Top floor Customers Engineering (Design and Mfg.Engg) Design Retire Supply Chain Manufacturing Technology (S&OP, MRP, PP, APS) (MES & SCADA) Suppliers Automation/Shop Floor Enabling Technologies Digital Cloud/Edge IIoT AR/VR AI/ML Simu
Slide 68: Servicing the Value Chain
SERVICING THE VALUE CHAIN Manufacturing & Manufacturing Product Design Test & Validation Supply Chain After Market Planning Execution 3D Design Mfg. Process Digital Factory KPI & Decision Content Mgmt. & MES Digital Mock-up Simulation Modelling Support Dashboard Publication SERVICES/SOLUTIONS Proces
Slide 69: Unlocking Value Using New Age Technologies
UNLOCKING VALUE USING NEW AGE TECHNOLOGIES Product & Process Manufacturing & Ideation/Design Services Development Operations Cognitive Product Insights & CAD & PLM Factory Insights EAM Asset Insights Intelligence /EMI & Intelligence Operational Operations Digital work Twin Instructions Engineering –
Slide 70: Our Focus
OUR FOCUS… Engineering Digital Twin IIoT Based Enterprise Applications Cloud Mfg. Intelligence (EMI) Contextual Digital Twin: • Design Cloud Engineering, operation and Design, factory & asset insights • Manufacturing Cloud performance: • Manufacturing Service Bus • Services Cloud • Design Twin • Pre
Slide 71: Ready Solutions: Accelerate Industry 4.0 Adoption
READY SOLUTIONS: ACCELERATE INDUSTRY 4.0 ADOPTION Product Lifecycle Asset Reliability Manufacturing Operations & Services Asset Reliability Center DFx - Design For Asset Data Advisory Condition Based Energy & Sustainability iConfigure Paperless Operations Excellence (ADA) Maintenance (CBM) Manager u
Slide 72: Delivering Value
DELIVERING VALUE Cloud Based Plant Asset Management Paperless Factory Platform for an for CPG Major Automotive Giant Digital Twin for Energy and Industrial Products Sustainability Manager Manufacturer for F&B Major IAD 2021 | L&T Technology Services | www.LTTS.com 10
Slide 73: Thank You
UL JAINIIX YOU
Slide 74: DIGICAL is here!
DIGICAL is here! Products = AI + Digital + Physical Nitin Jain Global Head Digital Products & Services INVESTOR & ANALYST DAY (IAD) 2021
Slide 75: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 76: The Multiple Dimensions of DIGICAL
THE MULTIPLE DIMENSIONS OF DIGICAL Connected Collaborative Intuitive Alexa, dim the light Let me set the mood! Today is karaoke night! and while you are at it, play Play Heal The World and dim I will set the temp to 23o C, heat popcorn Heal The World the light to soothing blue! and do a mike test! I
Slide 77: What Does This Mean in Terms of Digital Engineering Spend?
WHAT DOES THIS MEAN IN TERMS OF DIGITAL ENGINEERING SPEND? Connected Collaborative Intuitive • Edge Connectivity • Embedded DevOps • Smart IoT • Cloud Optimization • High Performance Cloud • Multi Cloud • Secure Connections • Digital Identities • AIDevSecOps • Embedded AI • Explainable AI • General
Slide 78: DIGICAL Across Industries
DIGICAL ACROSS INDUSTRIES Connected Collaborative Intuitive Industrial • Connected IoT • Digital Twin • Self-healing machines Transportation • Connected Vehicles (V2C) • Autonomous Level 5 • V2V, V2I, V2P (Vehicle to Vehicle, Infra, Pedestrians) Healthcare • Connected Hospitals & • Autonomous Surgic
Slide 79: Engineering DIGICAL - Chip to Cloud & Back
ENGINEERING DIGICAL - CHIP TO CLOUD & BACK Our Areas of Specialization Chips Devices Networks Enterprise Engineering & Applications Connected Connected User Connected Products Experiences Businesses Complex Embedded Hardware & Networks Product & Software System Integration SoC Design Software Engine
Slide 80: Our Mastery of the 4E's Helps Enable DIGICAL
OUR MASTERY OF THE 4E’S HELPS ENABLE DIGICAL Complex Digital Design Business Engineering Engineering Engineering Engineering Chip, Devices, Edge, Cloud, Strong capabilities in Proven expertise in Deep understanding of Users, Ecosystems and Digital Technologies designing world class business & specif
Slide 81: Frameworks Across Segments
238 FRAMEWORKS - ACROSS SEGMENTS NOW UPCOMING Connected Autonomous Smart Electric Mobility As A Transportation 38+ Transport Driving Vehicle Service Medical & Remote Patient AI in Medical Lifesciences 22+ 3D Printing Monitoring Imaging Digital Telemedicine Industrial Prescriptive Products 23+ Energy
Slide 82: Rated as a Leader Across Next-Gen Technologies
RATED AS A LEADER ACROSS NEXT-GEN TECHNOLOGIES Digital Thread Internet AI of Things Engineering Digital Cybersecurity Engineering THANK YOU IAD 2021 | L&T Technology Services | www.LTTS.com 9
Slide 83: Thank You
TIn/AINI< YOU
Slide 84: Accelerating Growth and Building Resilience
Accelerating Growth and Building Resilience Rajeev Gupta Chief Financial Officer INVESTOR & ANALYST DAY (IAD) 2021
Slide 85: Disclaimer
DISCLAIMER This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offe
Slide 86: Revenue Performance
REVENUE PERFORMANCE 4Yr CAGR 11% 3Yr CAGR 17.5% 847 - 862 (15% - 17%) 723 786 737 580 484 $ Mn FY 17 FY 18 FY 19 FY 20 FY 21 FY 22E CQGR of 4.7% 197 206 190 178 171 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 IAD 2021| L&T Technology Services | www.LTTS.com 3
Slide 87: Operational Performance
OPERATIONAL PERFORMANCE EBIT margin 16.6% 17.3% 16.1% 16.0% 16.5% 15.2% 14.5% 13.7% 13.0% 12.1% FY 17 FY 18 FY 19 FY 20 FY 21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 PAT margin 14.2% 12.6% 13.3% 13.5% 15.1% 14.6% 13.1% 13.5% 12.2% 9.1% FY 17 FY 18 FY 19 FY 20 FY 21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1
Slide 88: 4-Pronged Strategy
4-PRONGED STRATEGY Shareholder Growth Profitability Governance Returns • Broad based growth & • Segmental Margin • Strategic M&A • Consistent Dividend Diversified exposure consistency • Finance Transformation distribution • Focused Investments to • Cost efficiencies • ESG • ROE focus drive growth in
Slide 89: Growth
GROWTH Broad Based Growth 4.5% CQGR 64 54 4.3% 4.8% CQGR 45 CQGR 7.8% 2.4% 38 40 CQGR CQGR 33 32 $ Mn 24 22 24 Transportation Telecom & Hi-Tech Industrial Products Plant Engineering Medical Devices Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Diversified Revenue mix Consistent Growth in Digital Share 12%
Slide 90: Profitability
PROFITABILITY Segmental Margin Trend Building resilience in 31% 27% the operating model 24% 21% 22% 19% • Leadership and governance 15% 17% structure to support faster growth 14% 12% • Labs and tech quotient to democratize innovation • Continuous learning and upskilling for talent scale-up Transport
Slide 91: Governance
GOVERNANCE Strategic M&A Focus Areas 2017 2018 2020 Auto New Tech ISV • VLSI/ASIC Competencies • Chip Design and Verification • 5G Network Engineering Capability • Marquee Client Addition Competencies • Telecom Service Provider Exposure Digital • India and Asia Client Presence Healthcare Finance Tra
Slide 92: Shareholder Returns
SHAREHOLDER RETURNS Dividend Payout Trend ROE Trend 78.6 35% 74.1 30% 31% 63.3 49.6 21% INR/share 42.1 16.0 21.0 21.0 22.0 7.0 FY 17 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 EPS DPS FY 18 FY 19 FY 20 FY 21 Market Cap. (INR Cr) Returns Since LTTS IPO# 41,178 351% 27,878 233% 12,659 16,353 12,1
Slide 93: Differentiators
DIFFERENTIATORS Engineering DNA We aim to reach $1Bn run rate by Multi-Domain Expertise Enabling Crosspoll!nnovation Q2-Q3 FY23 & $1.5Bn run rate in FY25 Engineering Scale Marquee Customer Base & Strategic Partnerships with 18% EBIT Large Deal Track Record YOU Strong Balance Sheet for Strategic Inve
Slide 94: Thank You
TAZAINIIS YOU
L&T Technology Services — Investor Day (September 2021) on 6ix