L&t Technology Services Ltd. · NSE:LTTS
L&t Technology Services — Q1 FY2023 Earnings Presentation
29 slides from L&t Technology Services's earnings presentation, July 2022
Slide 1: Engineering the Change – Investor Presentation
#ENGINEERING THE CHANGE INVESTOR PRESENTATION July 2022 L&T Technology Services | www.LTTS.com 1
Slide 2: 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 3: This is L&T Technology Services
This is L&T Technology Services 57 Of Global 100 R&D Spenders as clients 337 89 Global Clients R&D Innovation Labs 21,400+ 90% Employees Repeat Business 913 $960 mn Patents Annualized Revenue #LTTS listed on NSE & BSE #1 Pure Play Engg Services Rated by Zinnov, ISG & Everest Since 2016 L&T Technolog
Slide 4: Our Engineering Heritage and Multi-domain Capabilities
Our Engineering Heritage and Multi-domain Capabilities… Telecom & Hitech Consulting, Domain & Design 45% Transportation Industrial Products Skill 55% Based Plant Engineering Medical Devices L&T Technology Services | www.LTTS.com 4
Slide 5: End-to-End Engineering Partner for our Clients
…Allows us to be the End-End Engineering Partner for our Clients Testing and Manufacturing certification support Inject innovation Improve quality & reliability Design & Product development launch support Optimize cost of development Product Product conceptualization maintenance Accelerate Solutions
Slide 6: Our Playing Field
Our Playing Field Global ER&D Spend Addressed Market India ER&D Market $2.6 Tn $128 Bn $1.5 Tn $71 Bn $86 Bn $35 Bn 2020 2026E 2020 2026E 2020 2026E Zinnov March 2021, NASSCOM, Estimates L&T Technology Services | www.LTTS.com 6
Slide 7: Digital Driving ER&D Spends
Digital Driving ER&D Spends Digital Engineering Spend Legacy ER&D Spend $ Bn Digital Engg. Spend 2,614 56% Of LTTS Revenue FY22 1,504 1,535 1,103 204 545 CAGR 59% Of Global ER&D spend by 2026 889 959 1,079 2013 2020 2026E 2.8X Increase in Digital Engineering Spend by 2026 Source: Zinnov , NASSCOM L&
Slide 8: Our Six Strategic Growth Areas
Our Six Strategic Growth Areas… 6 01 EACV 25% of Cars to be EV by 2025E 02 MedTech $200 Bn by 2025E 03 5G $155 Bn by 2025E 04 AI & Digital Products 05 Digital Manufacturing 06 Sustainability $100 Bn by 2025E $475 Bn by 2025E $400 Bn by 2025E L&T Technology Services | www.LTTS.com 8
Slide 9: With a Six-Dimensional Glide Path
With a Six-Dimensional Glide Path People Technology Engagement Quotient 3 4 Customer Sustainable 2 E 5 Centricity Operating Model S 1 6 Industry Leading Environmental Social & Growth Governance (ESG) Strategy for Profitable, Sustainable & Inclusive Growth L&T Technology Services | www.LTTS.com 9
Slide 10: 89 R&D Innovation Labs
IoT lab Smart manufacturing lab 5G lab 89 R&D IoT solutions come to life- from Focused on engineering Focused on for 5G development, INNOVATION connected workers to predictive analytics and industrial cybersecurity solutions for manufacturing operations management NFV Benchmarking, Validation and De
Slide 11: Enabling Innovation With World Class Solutions
Enabling Innovation With World Class Solutions eVOLTTS Chest rAI™ 5G Enterprise In-house developed end-to-end vehicle AI-based chest X-ray analysis system to Best in-class lab for automation of 5G SA electrification platform enabling faster assist the radiologists in improving speed and NSA System a
Slide 12: Creating Customer Value Via Crosspollinnovation
Creating Customer Value Via Crosspoll!nnovation By bringing transformative ideas from other industries, LTTS’ Innovations helped us reduce lead time to market. 5G TCU Testing from our Hi-Tech Annotation Technology from Segment for a Transportation Customer Transportation being used for Imaging Medic
Slide 13: Our World Class Talent
Our World Class Talent 21,400+ EMPLOYEES ENGINEERING THE CHANGE 1ST CITIZENSHIP Pure-Play CROSSPOLL!NNOVATE Engineering Tech investments Attracting Innovation Labs, Gen-Z engineers Futuristic Technology EXPERIMENT & EXPLORE Innovation generation Next-Gen career Reveries, TechExpression, Multi-Dimens
Slide 14: Expand Relationship With Top R&D Spenders
Helps us Expand Relationship With Top R&D Spenders Transportation 8 OF TOP 10 Hi-tech 8 OF TOP 10 57 of Top 100 7 Plant Engineering R&D Spenders OF TOP 10 Medical & Lifesciences 3 OF TOP 5 Industrial Products 7 OF TOP 10 L&T Technology Services | www.LTTS.com 14
Slide 15: What Sets us Apart
What Sets us Apart Our Key Differentiators 01 03 05 Multi Domain Translating Expertise Innovation to Engineering State-of-art Engineering Marquee DNA Research Customer Base & Test Labs 02 04 L&T Technology Services | www.LTTS.com 15
Slide 16: #1 Pure-Play Engineering Services Provider for two consecutive years
Has Led Us To Where We Are #1 Pure-Play Engineering Services Provider for two consecutive years Digital Engineering Aerospace Among Top 5 ESPs Among Top 5 ER&D players ADAS Auto Among Top 3 ESPs Among Top 4 in competency Leading Edge Leading Edge Digital Thread Medical in Emerging Among Top 3 ESPs A
Slide 17: Transportation: Co-creating The Next-generation Of Mobility
Transportation: Co-creating The Revenue: USD310mn+ (Q1FY23 annualized) Next-generation Of Mobility An automotive engineering service Powertrain & Alternate Body Engineering and provider with strong expertise across Propulsion Systems Safety Restraints the value chain, strong innovation credentials a
Slide 18: Telecom & Hi-Tech: Strengthening Connectivity
Telecom & Hi-Tech: Revenue: USD190mn+ (Q1FY23 annualized) Strengthening Connectivity LTTS stood out for clients’ very positive impressions of its operations and service delivery. Reference clients have praised LTTS’s capability for design to manufacturing solutions -HfS Research, Embedded & Semicon
Slide 19: Industrial Products: Infusing Technologies
Revenue: USD180mn+ (Q1FY23 annualized) Industrial Products: Infusing Technologies L&T Technology Services’ deep multi- Imagineering Engineering Ancillary services vertical expertise, rich IP portfolio such as UBIQWeise™, iBEMS, W.A.G.E.S and Building Energy innovation focused multi-domain labs Light
Slide 20: Plant Engineering: Extending Industry 4.0
Revenue: USD150mn+ (Q1FY23 annualized) Plant Engineering: Extending Industry 4.0 Consumer Packaged Goods Speciality Chemicals Energy & Utilities L&T Technology Services’ deep Industry 4.0 Enablers Monitoring and Control Data Acquisition understanding of Plant Engineering ▪ IoT and M2M Consulting ▪ S
Slide 21: Medical Devices: Touching Lives
Revenue: USD110mn+ (Q1FY23 annualized) Medical Devices: Touching Lives The ability to pro-actively build and demonstrate proof-of-concepts, take risks, and explore new ways of doing things has created stellar results for our partnership with LTTS. - Leading American Medical Devices Patient Surgical
Slide 22: Diversified Business Mix
Diversified Business Mix By Vertical Onsite vs. Offshore Split 12% Transportation 33% 16% Telecom and Hi-tech 44% Onsite Industrial Products 56% Offshore 19% Plant Engineering 20% Medical Devices By Geography Fixed Price vs. T&M 7% North America 13% 27% Europe Fixed Price 17% India T&M 63% 73% Rest
Slide 23: Diversified Customer Base
Diversified Customer Base Top Clients Contribution Scale-up of million dollar clients 60% % of Revenue (LTM) 54% Customer Revenue FY20 FY21 FY22 Q1 FY23 (USD Mn) 50% 43% 30 Million + 2 0 2 2 40% 20 Million + 8 3 6 7 30% 28% 10 Million + 21 20 22 23 20% 5 Million+ 43 39 48 51 10% 0% 1 Million + 113 1
Slide 24: Performance Highlights
Performance Highlights FY17 FY18 FY19 FY20 FY21 FY22 Parameters Q1 FY23 484 580 723 786 737 880 Revenue from Operations (USD mn) 239.5 32,483 37,471 50,783 56,191 54,497 65,697 Revenue from Operations (INR mn) 18,737 16.1% 13.0% 16.0% 16.5% 14.5% 18.3% EBIT Margin 18.3% 4,249 5,060 7,656 8,186 6,633
Slide 25: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 Amount in ₹ million Income Statement Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Revenue 15,184 17,561 18,737 6.7% 23.4% Cost of sales 10,118 11,765 12,560 Gross Profit 5,066 5,796 6,177 6.6% 21.9% Selling, General & Administration Expenses 1,889 1,992 2,167 EBITDA 3,177 3,804 4,
Slide 26: Financial Performance – Q1 FY23
Financial Performance – Q1 FY23 Amount in ₹ million Amount in ₹ million Balance Sheet FY22 Q1 FY23 Cash Flow Summary FY22 YTD FY23 Assets Net cash provided by operating activities 10,062 1,417 Property and equipment 6,496 6,549 Capex -1,555 -503 Intangible Assets and Goodwill 6,430 6,453 Free Cash F
Slide 27: Remote Health Monitoring Application
Remote Health Monitoring Application WHAT WE ENABLED • Design, development, testing and validation (formal & informal) of secure Class II medical solution for Remote Home Monitoring of Medication dosage and patient health • Custom algorithm to identify trends and support HCPs in prescribing future p
Slide 28: Next-gen connected cybersecure Surge Protection Monitoring Device
Next-gen connected cybersecure Surge Protection Monitoring Device WHAT WE ENABLED • End-to-end design and development of next-gen connected cyber-secured industrial surge protector with advanced features such as touchscreen-based GUI, multi-connectivity options • Implemented innovative FPGA based de
Slide 29: Machine Health Monitoring through Embedded AI
Machine Health Monitoring through Embedded AI WHAT WE ENABLED • End to end use-case creation, design, development, testing of a portable multi-test machine health monitoring device used by service technician in pharma industry • Development of custom Embedded AI application to analyze machine health
L&T Technology Services — Q1 FY2023 Earnings Presentation on 6ix