Infosys Limited · NSE:INFY
Infosys — Investor Presentation (April 2019)
53 slides from Infosys's investor presentation, April 2019
Slide 1: Investor Presentation April 2019
INVESTOR PRESENTATION April 2019
Slide 2: Safe Harbor
Safe Harbor “Certain statements mentioned in this release concerning our future growth prospects and our future business expectations are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995. Such statements involve a number
Slide 3: Key Milestones
Key Milestones Gets listed on Crosses Incorporated Crosses US$100 BSE/NSE US$2 billion in in Pune million in revenue. Crosses revenue Gets listed on US$1 billion NASDAQ - market in revenue cap US$2.3 billion 1993 2006 1981 1999 2004 2018 2017 2012 2008 2016 Revised Capital Gets listed on Announces N
Slide 4: History of 'Firsts'
History of ‘Firsts’ 1994 1996 1999 ‘First’ Company ‘First’ Indian ‘First’ Indian to introduce Company to Company to publish concept of voluntarily adopt US quarterly audited ESOP’s in India and six other financials countries’ GAAP reporting 1999 2005 2017 2018 ‘First’ Indian ‘First’ Indian ‘First’ I
Slide 5: Key Statistics
Key Statistics REVENUE DIGITAL REVENUE FREE CASH FLOW EMPLOYEES US$11.80 bn/ US$3.68 bn/ US$1.91 bn/ 228.1K with Rs.82,675 cr 31.2% of total revenue Rs. 13,399 cr 36.7% women CASH & CASH MARKET OPERATING EQUIVALENTS CAP PROFIT US$4.44 bn/ US$48 bn/ US$2.70 bn/ Rs. 30,690 cr Rs. 324,448 cr Rs. 18,880
Slide 6: Expanding the Services Footprint
Expanding the Services Footprint ADM, IT outsourcing, Systems Integration, Automation, Renew-New, Software Infrastructure Management, Product Innovation, Design Thinking, Re-engineering Lifecycle Management Artificial Intelligence 1981 1996 2001 2008 2014 2018 Technology Consulting, SaaS, Learning,
Slide 7: Our strategy is informed by the beliefs of our clients
Our strategy is informed by the beliefs of our clients 1 They are witnessing an exponential increase in the adoption of Digital 2 The extent of disruption varies, some are being disrupted, some disrupting 3 Focus has been on re-imagining the experience, been slow to digitize the core 4 Service line
Slide 8: Navigate your Next
We are well positioned to help our clients navigate their digital journey Today Navigate your Next Your Digital Journey The Future 8
Slide 9: Expanding client relevance with four pillars
Expanding client relevance with four pillars Scale Agile Digital Invest in digital capabilities & priority services Energize the Core Infuse AI and automation, leveraging NIA Expand skilling Re-skill talent at scale for us and our clients Drive Localization Hire locally in markets, local delivery &
Slide 10: Our Agile Digital service architecture is comprehensive
Our Agile Digital service architecture is comprehensive Digital AI marketing Advanced Omni-channel Analytics Content Big Data Personalization Digital product Cyber CLIENT engineering security DIGITAL JOURNEY IoT Accelerate Specialized Vertical validation API Platforms Legacy Cloud modernization migr
Slide 11: We have a large and growing Agile Digital portfolio
We have a large and growing Agile Digital portfolio $3.68 Bn 31.2% Digital Revenues of our total FY19 FY19 revenues Digital revenues at 33.8% of total revenues in Q4 FY19 11
Slide 12: We have set a 3-year roadmap to achieve our objectives
We have set a 3-year roadmap to achieve our objectives Accelerate | FY 21 Build Momentum | FY 20 Stabilize | FY 19 12
Slide 13: Scale Agile Digital
SCALE AGILE DIGITAL | Infosys Navigate your next
Slide 14: Scale Agile Digital
Scale Agile Digital Staying relevant to help our clients navigate their digital journey CLIENT DIGITAL JOURNEY Accelerate Embrace of AI and Automation across the Organization Design Digital Partner Innovation Accelerator Studios Ecosystems Hubs 14
Slide 15: Experience
Experience Design-led transformation. From brand to experience. Design accelerator partnership with Digital Studios a leading design school Brilliant Basics Strategic design consulting capabilities 4 EMEA studios Wongdoody New, integrated offerings led by digital 2 USA studios experience creation AP
Slide 16: For a world leader in networking, hi-tech products and services
FOR A WORLD LEADER IN NETWORKING, HI-TECH PRODUCTS AND SERVICES WHY REINVENT? HOW WE DID IT WHAT WE ACHIEVED Create world-class Converting back office to Elite 95% of cases processed through online agents in front office focusing customer service portal are resolved customer without human interventi
Slide 17: Insight
Insight Do 100x more. Do it yourself IP led differentiation: Genome, Emerging AI powered solutions e.g. Hawkeye next gen Chatbots Bundled solutions with new age Consulting-led demand generation partners Campaigns across our client base Launch of new offerings Data scientist capabilities Refactoring
Slide 18: For a world leader in sports goods, fashion and lifestyle
FOR A WORLD LEADER IN SPORTS GOODS, FASHION AND LIFESTYLE PRODUCTS WHY REINVENT? HOW WE DID IT WHAT WE ACHIEVED Ambition to quadruple • Conceptualized “Consumer >35% Repeat buyer rate Genome” by bringing their e-commerce revenue in 4 years. together 5000+ consumer 2X market share growth in the attri
Slide 19: Innovate
Innovate Bridge the physical and the digital, with software and platforms Unique collaboration for autonomous Co-creation of IP with clients technology leveraging NIA Industry 4.0 Assessment, Future of Re-skilling for technologies of Production and Infosys Knowledge tomorrow Platform Ecosystem of pa
Slide 20: For one of the fastest growing multi-modal logistics enterprise
FOR ONE OF THE FASTEST GROWING MULTI-MODAL LOGISTICS ENTERPRISE WHY DISRUPT? HOW WE DID IT WHAT WE ACHIEVED Client wanted to We were engaged right from ~20% establish a cloud-based, the concept stage and we jointly improvement digital freight defined the strategy that set in Load Profitability marke
Slide 21: Accelerate
Accelerate Keep your Core. Keep Innovating. Campaigns to increase adoption of Open Source, DevOps and Agile Strong relationships with strategic partners for joint GTM and solutions Differentiation through IP and Solutions Subscription models bundled with Infosys IP Full-stack developer & architect c
Slide 22: Assure
Assure Run the Business. Not the Risks. Cyber Defense Centers 1 Million+ assurance use case repository ICSP - Differentiation based on Campaigns on ‘vulnerability People + Software assessment’ Security architect capabilities New age assurance capabilities 22
Slide 23: From a Telco to a Tech-Co
FROM A TELCO TO A TECH-CO WHY DISRUPT? HOW WE DID IT WHAT WE ACHIEVED To simplify Telstra’s Telstra & Infosys Co-created a ~98% business by providing High Performance Software Requirements to Go seamless digital Engineering (HPSE) model: Live reduced from 2+ months to on demand experiences, launch •
Slide 24: Our scalable software and platforms are part of our portfolio
Our scalable software and platforms are part of our portfolio Automation, AI and 50+ customers business application 10,000+ processes automated with RPA platforms 50,000+ bots are live Industry leading suite 1.3 billion+ bank accounts of digital and core 16.5% of the world’s adult banking population
Slide 25: Ecosystem partnerships are vital to scaling Agile Digital
Ecosystem partnerships are vital to scaling Agile Digital LARGE NEW AGE ENTERPRISE INDUSTRY STARTUP ECOSYSTEMS ECOSYSTEMS PARTNERS GROUPS ECOSYSTEMS 25
Slide 26: Energize the Core
ENERGIZE THE CORE | Infosys Navigate your next
Slide 27: Using lean, automation and AI we are energizing our core
Using lean, automation and AI we are energizing our “core” 1 Standardized toolsets & CoE 1 Incentives for automation Bottom-up automation 2 2 Lean & Automation Academy opportunities 3 Integrated, modular platforms 3 Individual productivity 4 Service Line R&D teams 5 Focus on large programs 27
Slide 28: Our AI & automation service energizes our client's core
Our AI & automation service energizes our client’s “core” Conversational Bots AI & automation AI & automation Consulting COE execution Robotic Process Automation Cognitive Solutions AI & automation Cognitive Automation Managed Projects Machine Learning, Analytics In-house Solutions 3rd Party Solutio
Slide 29: Expand Skilling
EXPAND SKILLING | Infosys Navigate your next
Slide 30: The cornerstones of re-skilling our talent at scale
The cornerstones of re-skilling our talent at scale Learning Ecosystem Infosys Research Immersive and experiential Center for Emerging Technology learning Solutions Anytime-anywhere learning Incubation of new offerings platforms Redesigned training curriculum Academia Partnerships & Collaboration Pa
Slide 31: Our learning ecosystem makes high quality training available easily
Our learning ecosystem makes high quality training available easily Make it Convenient Make MakeititRelevant Relevant Make it Fun Make it Matter Accessibility Content Engagement Assessment Role-based 24x7 Guidance Domain-specific Lab on cloud CONTENT Right-sized Cohort learning Gamification Best-in-
Slide 32: Anytime, Anywhere Learning
Anytime, Anywhere Learning 32
Slide 33: Drive Localization
DRIVE LOCALIZATION | Infosys Navigate your next
Slide 34: We are building local innovation & tech hubs, closer to our clients
We are building local innovation & tech hubs, closer to our clients ONSITE | NEAR SHORE | OFFSHORE Opened 5 innovation and technology hubs in the US and 2 in Europe Access local talent Studios for agile and pools rapid prototyping Talent refactoring Lend our value chain to infrastructure clients Acc
Slide 35: Financial Performance Q4 and FY19
FINANCIAL PERFORMANCE Q4 and FY19
Slide 36: Highlights for Q4 and FY19
Highlights for Q4 and FY19 41.1% YoY 11.7% YoY 21.5% Q4 2.1% CC $1.57Bn Q4 33.8% FY 9.0% FY 22.8% FY 2.4% Reported $6.28Bn FY Digital CC growth CC growth Operating margin QoQ growth Large deal signings Guidance FY 20 revenue guidance in the range of 7.5% - 9.5% in constant currency FY 20 Operating m
Slide 37: Strong revenue growth, robust FCF and RoE in FY19
Strong revenue growth, robust FCF and RoE in FY19 • Free Cash Flow (FCF) has been robust in FY19; – Effectively managed currency volatility FCF Revenue RoE – Efficient capital management up 9% YoY1 $1,913 mn 22.7% • Competitive cost structure through productivity & automation – Strong Revenue growth
Slide 38: Steady Revenue growth and Operating Margins
Steady Revenue growth and Operating Margins 12.0% 30.0% 11.0% 24.7% 23.7% 23.7% 25.0% 10.0% 22.6% 21.5% 9.0% 9.2% 9.1% 20.0% 8.0% 8.4% 7.0% 15.0% 6.8% 7.1% 6.0% 10.0% 5.0% Revenue growth YoY % 4.0% 5.0% Operating margin % 3.0% 2.0% 0.0% Q4 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 11.7% in constant
Slide 39: US$100 Mn+ and US$1 Mn+ clients uptick
US$ 100 Mn+ and US$ 1 Mn+ clients – Uptick in the last two years US$ 100 Mn+ clients US$ 1 Mn+ clients Q4 FY19 : 25 Q4 FY19 : 662 +6 +64 Q4 FY17 : 19 Q4 FY17 : 598 39
Slide 40: Key operational efficiency parameters in FY19
Key operational efficiency parameters in FY19 Employee cost Onsite effort mix as % of revenue FY19 54.5% 28.6% FY18 54.9% 29.3% Revenue per FTE ($) Utilization FY19 54,038 84.3% FY18 54,602 84.6% 40 All numbers are based on IFRS USD consolidated financial statements
Slide 41: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE
Slide 42: Infosys Growth Story
Infosys Growth Story 11.8 1.1 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Revenue in US$ billion 42
Slide 43: Steady Revenue growth and Operating Margins
Steady Revenue growth and Operating Margins 15.0% 25.9% 25.0% 24.7% 24.3% 22.8% 25.0% 13.0% 13.3% 20.0% 11.0% 15.0% Constant currency 9.0% 9.0% Revenue growth YoY % 8.3% 10.0% 7.0% Operating margin % 7.1% 5.0% 5.8% 5.0% 3.0% 0.0% FY 15 FY 16 FY 17 FY 18 FY 19 Digital revenue is 31.2% of total revenu
Slide 44: Strong Cash Generation
Strong Cash Generation 2,257 2,262 2,099 1,947 1,913 1,862 1,756 1,688 1,389 1,449 FY15 FY16 FY17 FY18 FY19 Operating cash flow Free cash flow Amount in US$ million Free Cash Flow = Net cash generated from operations – Capital expenditure 44
Slide 45: Capital Allocation
CAPITAL ALLOCATION | Infosys Navigate your next
Slide 46: Evolution of Capital Allocation Policy
Evolution of Capital Allocation Policy 70% of FCF 50% of NP 40% of NP 30% The current policy: of NP To return up to 70% of free cash flow (FCF) 1 by way of dividend and/or share buyback Prior to FY14 Apr-14 Apr-15 Apr-17 1 Free Cash Flow = Net cash generated from operations – Capital expenditure 46
Slide 47: Capital allocation policy – Implemented
Capital allocation policy – Implemented Regular Special Buyback dividend dividend Total Dividend1 Regular Dividend1 Capital return1 to $ Mn as % of FCF shareholders $ Mn Excludes special dividend FY19FY19 1,293 295 FY19 69% FY19 1,293 295 1,184 Includes proposed final dividend 2 Buyback is ongoing F
Slide 48: Review of capital allocation policy
Review of capital allocation policy The Board, in January 2019, approved the following for the implementation of Capital Allocation Policy: A. Buyback of Equity Shares, from the open market route through the Indian stock exchanges, amounting to ₹8,260 crore (Maximum Buyback Size) (approximately $1,1
Slide 49: Consistent Dividend Payouts
Consistent Dividend Payouts Dividend history (` per share) 21.8 21.5 5.0 4.0 Declared Final Dividend 12.9 12.1 of `10.50 per share 11.1 10.5 10.3 (approximately $0.15* 7.9 7.1 7.4 per ADS) 7.4 5.3 5.4 3.4 6.5 7.0 5.0 5.5 3.8 1.9 2.5 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Interim Dividend Final Dividend
Slide 50: We have a structured approach to creating investor value
We have a structured approach to creating investor value 01 02 03 Growth with strategic Programmatic Disciplined capital investments inorganic moves allocation Scale Agile Digital with key Invest in inorganic moves Given high RoE, return up investments: to expand client to 70% of free cash flows rel
Slide 51: Key parameters
Key parameters FY17 FY19 Market Cap to 3.5 4.0 Revenue Market Cap to Free Cash Flow 21.4 24.5 Free Cash Flow1 Yield % 4.7% 4.1% Dividend Yield % 2.5% 2.9%2 All numbers are based on IFRS USD consolidated financial statements Market Cap / share price as on Mar 31, 2019 and Mar 31, 2017 on NSE. Convert
Slide 52: Analyst Ratings, Awards and Recognition
Analyst Ratings Awards and Recognition Institutional Investor Best CFO, Best Investor Relations and Best Positioned as leader in Positioned as leader in IDC ESG SRI Metrics NelsonHall 2018 Digital MarketScape: Worldwide SAP Banking Services NEAT Implementation Services Ecosystem 2018 Vendor Assessme
Slide 53: Thank You
Thank You © 2018 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, p