L&t Technology Services Ltd. · NSE:LTTS
L&t Technology Services — Investor Presentation (February 2025)
16 slides from L&t Technology Services's investor presentation, February 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION February 2025 Restricted Circulation | www.LTTS.com 1
Slide 2: Agenda
Agenda 01 02 03 ER&D Landscape LTTS: Pole LTTS 3.0 & Growth Themes Position in ER&D Restricted Circulation | www.LTTS.com 2
Slide 3: ER&D Growth…India Outsourcing to Grow 17-22%
ER&D Growth…India Outsourcing to Grow 17 - 22% Macro-Economic Factors ER&D Addressable Market: India as a Destination is Sold World GDP ($T) 139* Global ER&D Spend 109.5 $2.5T – $3.3T 79.6 87.5 Global ER&D Spend $1.5T – $1.8T ER&D Sourcing $600B – $770B Global ER&D Spend ER&D Sourcing 17-22% 10 Yrs.
Slide 4: ER&D: Growth Themes Across Segments
ER&D: Growth Themes Across Segments Segment Growth Drivers/Themes Cross Segment Themes Automotive SW Defined Mobility Electrification Smart Cockpits MOBILITY Trucks & Off-Highway Logistics Automation Asset Utilization Urbanization & Infra Al/ Gen Al investment Aero & Rail Urban Air Mobility AI for A
Slide 5: LTTS at CES 2025
LTTS at CES 2025 190+ 10 Client Visits Pods & Demo Car Highlights & Learnings AI: The central theme spanning across from Wearables, Agriculture to Ind. Equipment Health & Wellness Tech, Smart Home Tech dominant themes than just Mobility Robotics: Smaller, more autonomous robots. Industry focus on so
Slide 6: LTTS: Pole Position in ER&D
LTTS: Pole Position in ER&D 378 23,460+ 25+ Top 3 Global Pure-play Digital, Engineering and Global Clients Employees Countries Technology Services Company $ 1.25 B 57 1,448 Q3FY25 Annualized Of Global 100 R&D Revenue Spenders as clients Patents 108 22 90% R&D Innovation Labs Global Design Centers Re
Slide 7: AI/GenAI: Developing Use Cases across Segments
AI/GenAI: Developing Use Cases across Segments 174 Patents filed in AI Segment Specific MOBILITY SUSTAINABILITY TECH • AiAnnot • AHF with Copilot • AiCE • Medical Imaging • GenAI for Driver Exp. • ESM • AiCH Engg. Literature AiKno MTR LTTS OCR Data SDLC GenIQ LLMOps CodeReview Cross PDLC AI @ Digita
Slide 8: SDx
SDx Unified Dev Suite Segment wise Faster time to market High-quality end- by drawing on reusable Applications product through vetting components by around Business impacts 30% LTTSiDriVe - Modular SDV LTTS’ App Studio and API Hub Solution with plug-play are centralized store with a cutting-edge and
Slide 9: Industrial Automation: FactoryNext
Industrial Automation: FactoryNextTM Business Operations / Decision Support – L4 Factory Data Manufacturing IT/OT Infra / Asset Decision Support Remote Command FactoryVU Lakehouse Monitors Center / NOC / SOC Performance Monitors Dashboards & L5 (ERP, PLM, CRM) FactoryManage FactorySecure Production
Slide 10: Building Billion Dollar Segments
Building Billion Dollar Segments 100+ 160+ 110+ Global Clients Global Clients Global Clients 45+ 30+ 40+ Labs Labs Labs Overview Mobility 315+ Sustainability 500+ Tech 600+ Patents Patents Patents 8/10 6/10 8/10 G-ER&D 100 G-ER&D 100 G-ER&D 100 3 Yr Growth 19% CAGR 13% CAGR 18% CAGR Projects Enginee
Slide 11: Powering with Large Deals Engine
Powering with Large Deals Engine Higher Addressable Improve Win Ratio Pipeline and Deal Size Market • Shortening technology cycles • Track record of large deal • 2X growth in pipeline and need for faster speed-to- execution in ER&D • Higher $50M plus deals in the market and optimal cost • End to end
Slide 12: Adding Value through Inorganic Growth
Adding Value through Inorganic Growth Future M&A Areas Strategic Capabilities End-Markets Levers for Value creation Mobility SDV, ADAS, Connected Europe • Reasonable valuation/ multiples Platform Engineering, AI, ML, Data ISV engineering N. America • Potential for higher offshoring Connected Healthc
Slide 13: New Sub-Segment: Software & Platforms
New Sub-Segment : Software & Platforms Intelliswift - Santa Clara, CA Outsourced volume by Software & Internet companies ($22 - $24 B) Competencies Traditional Software : 40-45%* Tech Giants : 25-30%* Revenue $96M and Solutions CY 23 Revenue iCAF Software Product Development & Capability Map 29% Pla
Slide 14: Leading to $1B Segments
Leading to 3 $1 B Segments Potential Revenue Margin CAGR Aspiration Mobility 18.9% 19.4% 19.6% 21.0% 14.7% 1,000 281 342 381 229 20-22% 20-22% FY21 FY22 FY23 FY24 FYXX Mobility Revenue ($Mn) EBITDA Margin % 27.5% 28.5% 28.2% 29.0% Sustainability 24.4% 1,000 250 307 347 361 14-16% 28-30% FY21 FY22 FY
Slide 15: Creating Shareholder Value
Creating Shareholder Value Free Cash Flow Dividend Per Share (as a % of Net income) (₹ ) 41% 41% 101% 39% 50 XX 45 96% 35 94% 89% FY22 FY23 FY24 FY25 YTD FY22 FY23 FY24 FY25 FCF: 101% XX% Annual Dividend Payout Ratio of Net Cash Position* Income Return on Equity (₹ Cr.) 3290 2974 2883 28% 27% 2152 X
Slide 16: About L&T Technology Services
ABOUT L&T TECHNOLOGY SERVICES L&T Technology Services (LTTS) is a global leader in engineering and technology services. A listed subsidiary of Larsen & Toubro (L&T), we offer design, development, testing, and sustenance services across products and processes. Purposeful. Agile. Innovation. is how we
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