Tech Mahindra Limited · NSE:TECHM
Tech Mahindra — Investor Presentation (February 2011)
22 slides from Tech Mahindra's investor presentation, Feb 11, 2011
Slide 1: Investor Presentation
Investor Presentation © Tech Mahindra Limited 2009 Tech Mahindra Limited confidential
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to
Slide 3: Agenda
Agenda Company Overview Industry landscape Tech Mahindra – Creating the next wave Mahindra Satyam – A game changing opportunity Strong Financial Track record 2/11/2011 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 3
Slide 4: Tech Mahindra Overview
Tech Mahindra Overview Leadership position in Outsourcing services to the Telecom Industry Revenue India’s one of the leading Telecom 1000 Focused IT Services and Solutions 750 USD Mn Provider for global communication 500 985 977 935 industry 250 328 Presence across Telecom value 251 269 0 chain
Slide 5: Large addressable market still untapped
Opportunity Large addressable market still untapped Global Technology related spend and Indian IT Exports (US$ Bn) India IT exports India IT exports CAGR 14% CAGR 20% India Global IT service market, still very small proportion (~ 3%) to the Global IT spend Global IT spend CAGR 4.1% global IT spend
Slide 6: Favorable IT offshoring scenario for Telecom Vertical
Key IT Offshoring Verticals Favorable IT offshoring scenario for Telecom Vertical Telecom one of the fastest Share of Telecom Vertical in the Overall India IT Exports (US$ Bn) growing vertical in the Global Indian IT space, key growth drivers being: FY2008 20.0% • Deregulation and increasing compe
Slide 7: Telecom Industry Value Chain
Telecom Industry Value Chain Opportunities for a telecom e2e Solutions Provider IT Applications Network Infrastructure Management Service Security Services Testing Services 2/11/2011 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 7
Slide 8: Best positioned to leverage telecom IT outsourcing opportunities
TechM Advantage Best positioned to leverage telecom IT outsourcing opportunities Current Telecom Operators Ubiquitous services Business as usual offerings across telecom Optimization and consolidation of applications value chain Driving efficiencies Transformation initiatives Strategic tec
Slide 9: Strong Parentage
Strong Parentage Spearheading the robust growth and ensuring the best industry practice BT is a leading provider of Mahindra Group is one of the leading communications solutions and services - and reputed business houses of India operating in over 170 countries With a total revenue of USD 7.1 bn,
Slide 10: Comprehensive Coverage of the Telecom Space
Comprehensive Coverage of the Telecom Space Application Development & Management System Integration Program and Delivery Management Telecom Service Providers (TSP) Process Consulting BPO Managed Services (TM having largest TSP practice among offshore Remote Infrastructure Management pu
Slide 11: Growing Maturity in Service Delivery Model
Growing Maturity in Service Delivery Model Depth of technological capabilities resulting in robust Service Delivery Model 2/11/2011 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 11
Slide 12: Strategy imperatives for Tech M
Strategy imperatives for Tech M Catapult to become global leader in Outsourcing Services to Telecom Industry Defend, grow & enhance existing relationships Growth Enhance our Diversify service client base Strategy portfolio Non-organic growth Increase Investment in reusable components and managed p
Slide 13: Six Pillar Growth Mantra
Six Pillar Growth Mantra •Business •Customer •Design Consulting Acquisition Services •System •Customer In- •Deployment Integration life Services •Integrations •Managed •Customer •Testing Services Retention •Operations •Transformatio Services •Performance n •Business Engineering •Application Support
Slide 14: Unique Delivery Model
Unique Delivery Model Collaborating to deliver excellence Improved Reduced Co-locate and Client Right First Time Customer Cycle Time Collaborate Experience Competency Sales & Marketing Enabler Strategic & Solution Client Engagement Market development & Development & Brand Positioning Functions Deliv
Slide 15: Global Delivery Footprint
Global Delivery Footprint Milton Keynes – UK Giga Space – Pune Presence across 25 countries Development Center 16 Regional offices worldwide and 13 delivery centers across the globe Regional Office * indicates TechM BPO facility also present at the centre Strong process and quality culture Deliv
Slide 16: Client Engagement Model
Client Engagement Model TM Manages some of the largest account in the IT Service industry Customers Front ending with client North MEA & Strategic Europe APAC India America SAARC Account Sales Sales Sales Sales Sales Sales Team Team Team Team Team Team External Alliance Proposed Solution Partners SS
Slide 17: Diversified Client Base
Diversified Client Base Client Mix Revenue Contributions 100 90 80 13 14 15 11 FY 08 FY 09 FY10 Q1 Q2 Q3 70 FY11 FY11 FY11 20 21 20 USD Mn 60 6 8 Top client 18 64% 58% 48% 45% 35% 44% 50 13 13 40 Top 5 clients 84% 81% 73% 74% 77% 72% 30 52 52 53 48 44 44 20 Top 10 10 clients 89% 87% 82% 82% 84% 81%
Slide 18: Human Resource
Human Resource Headcount 35,267 35000 34,208 33,524 34,007 32000 30,404 29000 IT Experience Profile 26,515 26000 25,482 23000 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 0-3 years 33% IT Utilization % (Including Trainees) 6+ years 40% 76% 76% 75% 74% 72% 4-6 years 72% 27% 70% 70% 69% 69% 68% 68% 66% 6
Slide 19: Acquisition of Satyam
Acquisition of Satyam Application Development and Application Development and Maintenance Maintenance Infrastructure Management Services Infrastructure Management Services Service IT Enabled Services Offerings IT Enabled Services Business Process Management Consulting and Enterprise
Slide 20: Synergy for Integration
Synergy for Integration Our goal is to be recognized as a specialist Business & IT Services Provider Mahindra Satyam Tech Mahindra Multiple verticals & domains Telecom domain expertise Global delivery footprint Innovative client servicing End-to-end capabilities EBS Combined business & pri
Slide 21: Financial Snapshot
Financial Snapshot Revenue EBITDA 300 1000 200 USD Mn 750 281.9 239.9 USD Mn 100 205.3 500 985 977 935 46.4 60.3 55.4 0 250 2008 2009 2010 Q1 FY11 Q2 FY11 Q3 FY11 328 EBITDA, EBIT and PAT Margin 251 269 0 2008 2009 2010 Q1 FY11 Q2 FY11 Q3 FY11 2008 2009 2010 Q1 FY11 Q2 FY11 Q3 FY11 EBITDA 22% 29% 25
Slide 22: Thank You
Thank You 2/11/2011 CONFIDENTIAL© Copyright 2009 Tech Mahindra Limited 22
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