Slide 1: Wipro – Presentation to Investors
Wipro – Presentation to Investors October 22, 2010 © 2009 Wipro Ltd - Confidential
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain “forward looking” statements, which involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These uncertainties have been de
Slide 3: Agenda
Agenda 1 Our Vision? 2 Our track record on performance 3 Overall Market Opportunity 4 Our differentiation today 5 Strategy to remain differentiated tomorrow 3 © 2009 Wipro Ltd - Confidential
Slide 4: Our Vision
Our Vision VISION STATEMENT To be among the Top 10 Global IT & Business Process Outsourcing Services OBJECTIVES STATEMENT 1. Be a Trusted Partner to our clients by providing Transformation and SI Services. 2. Achieve Thought Leadership in emerging Technology areas. 3. Be perceived as a leader by rel
Slide 5: Track Record on Performance
Track Record on Performance 5 © 2009 Wipro Ltd - Confidential
Slide 6: Wipro Ltd has grown revenue at a 29% CAGR and Net Income at a 28% CAGR
Wipro Ltd has grown revenue at a 29% CAGR and Net Income at a 28% CAGR for the last 6 years 1. Incorporated in 1945 5,881 5,762 – Businesses include 4,963 • IT Business; 3,325 • Consumer 2,391 Care & 1,820 1,270 Lighting; 652 816 880 996 363 465 223 • Infrastructure 2003-04 2004-05 2005-06 2006-07 2
Slide 7: Wipro's IT Services Business has grown at a CAGR of 28% in the last 6 years
Wipro‟s IT Services Business has grown at a CAGR of 28% in the last 6 years Revenue For IT Services + 4,323 4,390 Products is $5.2 billion 3,647 2,611 1,952 1,458 1,011 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Partner to Industry Leaders 890 active global clients as of September 3
Slide 8: Highlights of the Quarter ended September 30, 2010
Highlights of the Quarter ended September 30, 2010 Revenue Highlights • Wipro Limited Revenue grew by 12% YoY to Rs. 77.31Bn • IT Services Revenue at $1,273 Mn, sequential growth of 5.7%. Constant Currency IT Services Revenue was $1,261 Mn, within our guidance range of $1,253 Mn and $1,277 Mn • Stro
Slide 9: Overall Market Opportunity
Overall Market Opportunity 9 © 2009 Wipro Ltd - Confidential
Slide 10: Indian IT Industry Today
Indian IT Industry Today Indian IT-BPO Sector1: Revenue Aggregate and Share of GDP • Indian IT Industry – $60 Bn; exports at ~$ 50 Bn up from $150 Mn in 1990 60 6.10% 7.00% 6% 5.50% 6.00% 50 5.20% 47.5 50.1 4.60% 40.9 5.00% • India => Most preferred offshore destination 40 4.10% 3.60% 31.7 4.00% 30
Slide 11: India Off-shoring market is expected to grow at a CAGR of ~13-20% through 2020
India Off-shoring market is expected to grow at a CAGR of ~13-20% through 2020 India‟s offshore IT and BPO exports ($B) ~225-310 With ~175 Focused CAGR of Initiatives & 22% Innovation ~56-57 47.1 49.7* 40.3 12.4 11.7 31.4 10.9 23.6 8.4 57.0 17.7 6.3 37.3 35.4 With Current 4.6 29.4 23.0 Initiatives 1
Slide 12: Our Differentiation Today
Our Differentiation Today 12 © 2009 Wipro Ltd - Confidential
Slide 13: What differentiates Wipro today?
What differentiates Wipro today? 1• Broad based portfolio across Verticals, Geographies, Service Lines and Customers 2• Strong ($1B) and Established (20+ years) presence in some of the key growth markets – India & Middle East 3• A complete, integrated portfolio of services 4• Leadership in R&D – wor
Slide 14: Strength of a broad based portfolio
Strength of a broad based portfolio Revenue contribution of Top Vertical Distribution customers for Q2‟10-11 9% Technology, Media & 25% 15% Telecom Customer Concentration (% of revenue) Financial Services Top customer 2.9% Manufacturing 9% Top 5 10.7% Healthcare & Top 10 19.2% Services Retail & • Ne
Slide 15: India & Middle East – A comprehensive IT Services Portfolio
India & Middle East – A comprehensive IT Services Portfolio 1. Revenue upwards of a billion dollars Consulting Process, IT Governance, e- Governance, Security, Strategic Cost 2. Leadership position in India, pioneer in Reduction Middle East Business Package Application, Business 3. Best of breed par
Slide 16: Global TOS – A complete, integrated portfolio of services
Global TOS – A complete, integrated portfolio of services TIS – A Complete Portfolio of Services Consulting Technical Enterprise Managed & Managed Managed Main-frame Support Service Security Sys Services Hosting Services Services Mgmt Services Integration • Transformational Outsourcing IFOX Changi
Slide 17: Leadership in R&D
Leadership in R&D Leadership in R&D business 15000+ talent pool engaged in R&D Services Largest player based on headcount World‟s largest independent team of Hardware Design Engineers of 1,900 Leaders in Telecom OEM Addressing new segments through this differentiated capability with lot of
Slide 18: Strategy to remain differentiated tomorrow
Strategy to remain differentiated tomorrow 18 © 2009 Wipro Ltd - Confidential
Slide 19: Our Strategy is aligned to the needs of the 21st century corporation
Our Strategy is aligned to the needs of the 21st century corporation Expectations of the 21st Century Wipro Strategy Corporation Transformation Partner Building SI & Transformational Capability One Who Enabled by • Enables business outcomes rather than 1. Client Engagement Program offering services
Slide 20: Structured and focused client engagement program
1 Structured and focused client engagement program CEM as CEO of Sales Process the Account Excellence Large Account focus MEGA & GAMMA PROGRAM Advisor Consulting led Relationships Transformational Engagements 20 © 2009 Wipro Ltd - Confidential
Slide 21: Domains and Solutions
2 Domains and Solutions • Business Advisory Groups in SBUs • Domain flavors for Service Lines Building Domain Competency • Continue strong focus on Package Apps • Vertical/Horizontal Specific Productized Solutions and Stacks Solutions • E.g. - Sustainable Manufacturing, Telecom Stacks, Smart Meterin
Slide 22: Technology Investments
3 Technology Investments Transforming enterprise applications & infrastructure Cloud Environments to operate in hybrid cloud Collaboration Deliver business process efficiency & enhanced user experience for global enterprises Green Technologies Achieve sustainability goals of enterprises using a comb
Slide 23: Stacks and Cloud
4 Stacks and Cloud Strategy Initiative • Create complete stacks with STACK vendors – Wipro to own process and provide services around stack • Best of breed System Integration (SI) services • Leverage Mega alliances (Cisco, approach Microsoft, EMC, SAP, Oracle) – to create and address opportunities a
Slide 24: Growth Engine
5 Growth Engine • Incubate high growth • Public Sector/Govt in US, geographies like China, Latin Europe(UK) & APAC. America, Africas • Leverage India experience New Government/ Geographies Public Sector Inorganic Growth Horizon Strategy Initiatives • Focused initiatives with dedicated • Continue to
Slide 25: Operational Excellence
6 Operational Excellence • Alternative Commercial • Flex Delivery Models • Differentiated Service • Lifecycle Accelerators Offerings – Business • IP/ Frameworks/ Solutions Platforms • IP/ Frameworks/ Solutions Non Differentiated • Flex Delivery Linearity Delivery Paradigms Employee Globalization • U
Slide 26: In Summary
In Summary New Normal 21st Century Corporation Investing to meet the needs of tomorrow Domains Technology Markets Govt Stacks / Cloud China Industry/ Green Latam Horizontal Collaboration Africas Solutions 26 © 2009 Wipro Ltd - Confidential
Slide 27: Full Year Highlights and Key Highlights of Other Businesses
Full Year Highlights and Key Highlights of Other Businesses 27 © 2009 Wipro Ltd - Confidential
Slide 28: Highlights for the year ended March 31, 2010
Highlights for the year ended March 31, 2010 Revenue Highlights • Wipro Limited Revenue grew by 6% YoY to Rs. 271Bn • Constant currency IT Services Revenue was $4,399 Mn, YoY growth of 1.8%. IT Services Reported Revenue at $4,390Mn, a YoY growth of 1.6%. Operational Highlights • Profit After Tax was
Slide 29: Highlights – Other Businesses for the Quarter Ended September 30, 2010
Highlights – Other Businesses for the Quarter Ended September 30, 2010 Wipro Consumer Care and Lighting (WCCL) • Consumer Care and Lighting business recorded Revenues of Rs. 6.65 billion, an increase of 20% YoY and PBIT of Rs. 831 million, an increase of 13% YoY • International business has done wel
Slide 30: Key Financial Ratios
Key Financial Ratios Ratios Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Financial Performance - Growth(%) Revenue 6 28 33 41 30 Profit Before Interest and Tax 18 25 16 35 24 Profit After Tax 19 19 12 42 27 Financial Position Cash and Investments to Capital Employed 43 36 34 53 58 Current Ratio 2.13 1.72 2.12
Slide 31: Thank You
Thank You © 2009 Wipro Ltd - Confidential