Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Merger or Acquisition (March 2019)
12 slides from Larsen & Toubro's merger presentation, Mar 19, 2019
Slide 1: Exchange filing cover letter: Investor Presentation
Larsen & Toubro Limited Secretarial Department i;:....:- -':.ii',..:i.. I) ',: t‘. .4,..li .-/1,-.)4 I; L&T House, Ballard Estate Narottam Morarjee Marg Mumbai - 400 001, INDIA Tel: +91 22 6752 5656 Fax: +91 22 6752 5893 www.Larsentoubro.corn SEC/PAM/2019 March 19, 2019 The Secretary National Stock
Slide 2: Mindtree Stake Acquisition: Scaling L&T's IT Services Business
Mindtree Stake Acquisition: Scaling L&T’s IT Services Business March 2019 Sensitivity : This Document is Classified as "LNT Internal Use". 1
Slide 3: Disclaimer
2 Disclaimer This presentation has been prepared by Larsen & Toubro made in this presentation. L&T assume no obligation to update Limited (“L&T”) and may contain certain forward-looking or alter forward-looking statements whether as a result of new statements relating to L&T, Larsen & Toubro Infotec
Slide 4: L&T Value Creation Strategy
3 L&T Value Creation Strategy ❖ Strengthen Core Businesses • Engineering, Projects, Construction & Hi-Tech Mfg ❖ Grow Services Business • IT, Technology Services & Financial Services ❖ Divest Non-Core Businesses ❖ Unlock capital to stay asset light ❖ Maximum productivity of resources Sensitivity : T
Slide 5: Current Opportunity
4 Current Opportunity Strategic Investment In Mindtree Aligned to Value Creation Sensitivity : This Document is Classified as "LNT Internal Use".
Slide 6: Transaction Contours
5 Transaction Contours ▪ L&T to acquire significant interest in Mindtree in an all-cash transaction. Purchase through SPA (20.32%) On Market Purchases (Upto 15%) Mandatory Tender Offer (Upto 31%) ▪ Total maximum acquisition consideration of Rs 107.3 bn in cash, including open offer. ▪ Transaction to
Slide 7: Mindtree is an at-scale Tier 2 IT services provider
6 Mindtree is an at-scale Tier 2 IT services provider Key facts ▪ Established in 1999, with IPO in Feb 2007 ▪ Current Market cap of Rs 158.05 bn ▪ Known for strong customer satisfaction and corporate governance ▪ Strong partnerships: Microsoft Azure, SAP, Salesforce ▪ Deep employee engagement Shareh
Slide 8: Mindtree has strong verticals and fast growing offerings
7 Mindtree has strong verticals and fast growing offerings Revenue Split (% of total)* Key strengths: 56% ▪ Full suite of digital capabilities Traditional 63% ▪ Top-tier clients Digital 37% 44% ▪ Large digital talent pool FY 2016 FY 2018 Revenue by vertical (Trailing 4Q) (% of total)* Revenue by ser
Slide 9: Key Financial Trends
8 Key Financial Trends Revenue Growth (%) Revenues Rs Cr 12 4 28 32 17 3032 3546 4673 5236 5463 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 EBITDA Rs Cr Margins (%) 20 20 18 14 14 610 701 826 717 741 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 PAT Rs Cr Margins (%) 14 12 15 7 10 451 532 554 416 570 Mar-14 Mar-15 Mar-
Slide 10: Complementary Segments
9 Complementary Segments % of Revenue (Q3 FY19) 16 17 22 11 47 18 16 39 4 11 Not present in Travel and hospitality Not present in Energy, utilities BFSI CPG and retail Manufacturing High tech and media Travel and hospitality Energy, utilities ▪ Limited client overlap ▪ Acquisition adds significant s
Slide 11: A Compelling Fit
10 A Compelling Fit ▪ Enhances contribution of services to overall business portfolio ▪ Accelerates Group’s digital footprint ▪ Complementary offerings with high potential for client synergy ▪ Marquee clients, proven delivery track record ▪ High cultural compatibility ▪ Opportunity to create long te
Slide 12: Thank you
11 Thank you Sensitivity : This Document is Classified as "LNT Internal Use".