Slide 1: Wipro – Presentation to Investors
Wipro – Presentation to Investors October – December, 2012 1 © 2012 WIPRO LTD | WWW.WIPRO.COM
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 Our track record on performance Overall Market Opportunity Our Strategy Demerger Scheme 3 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 4: Track Record on Performance
Track Record on Performance 4 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 5: Overall Revenue at a 20% CAGR and Net Income at a 14% CAGR
Overall Revenue at a 20% CAGR and Net Income at a 14% CAGR over the last 6 years 375 311 257 272 201 151 39 46 53 56 29 33 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Revenue (in INR Bn.) Net Income (in INR Bn.) Revenues of ~$7.3 billion for FY 12 Incorporated in 1945 Wipro Corporation revenue
Slide 6: IT Services Business has grown at a CAGR of 18% in the last 5 years
IT Services Business has grown at a CAGR of 18% in the last 5 years IT Revenue $ Mn 5,921 5,221 4,323 4,390 3,647 2,611 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Revenues of ~ $6 billion for FY 12 Partner to Industry Leaders Global footprint Diverse talent pool Listed on NYSE in October 93
Slide 7: Broad based portfolio
Broad based portfolio Revenue contribution of Top customers for Q2’12-13 E&U GMT Customer Concentration (% of 15.1% 14.4% Vertical revenue) Top customer 3.5% Diversified Vertical portfolio, RCTG 15% Top 5 13.0% with no vertical contributing BFSI 27.0% Top 10 22.3% more than 27% HLS • 475 customers
Slide 8: Strategic Partnerships
Strategic Partnerships Accelerate Innovation | Increase RoI | Industry Expertise | Trusted Network | Emerging Technology Strategic Alliance Portfolio Strategic initiatives across cloud, analytics, mobility Emerging market focus – reverse innovation of products Improved customer penetration and
Slide 9: Overall Market Opportunity
Overall Market Opportunity 9 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 10: Significant Market Opportunity
Significant Market Opportunity IT Services 1. Global IT Spends at $1.7 trillion 2. R&D spends at $1.15 trillion 3. Indian IT addresses IT Services, BPO and Engineering & R&D spends of customers globally 10 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 11: India Off-shoring market expected to grow at a CAGR of ~12-21% through 2020
India Off-shoring market is expected to grow at a CAGR of ~12-21% through 2020 India’s offshore IT and BPO exports ($B) ~ 225-310 With Focused ~175 Initiatives & CAGR Innovation 22% 69 59 47.1 49.7 40.3 31.4 With 23.6 Current 17.7 Initiatives FY11-12 Long Term Fundamentals of the India Off- shoring
Slide 12: Our Strategy
Our Strategy 12 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 13: Overarching changes influencing business today
Overarching changes influencing business today KEY TECHNOLOGY ENABLERS OPPORTUNITY IMPERATIVE Innovation to win in a world of 1 Differentiation at the front constraints 1. Industry expertise 2 Business agility through 2. Client Engagement variabilization of IT Standardization at the core 3 Con
Slide 14: 4 key components to our Strategy
4 key components to our Strategy Existing Transformation Prioritized Disruptive Differentiation M&A Investments into Emerging through Domain & 1. Domain Assets Growth Accounts, Technologies Solution Focus 2. Technology Verticals and 1. Cloud 1. Drive increased Assets Geographies domain centricity a.
Slide 15: Prioritizing Investments into Growth Accounts, Verticals and Markets
Prioritizing Investments into Growth Accounts, Verticals and Markets Right Account Real Momentum Verticals Emerging Geographies Estate 1. Identify , prioritize & 1. Differentiated & Dis- 1. Prioritized focus on pursue accounts that will proportionate focus & markets that are driving drive company gr
Slide 16: Disruptive Emerging Technologies
Disruptive Emerging Technologies Cloud Analytics Mobility 1. Cloud Enablement Services 2 pronged approach focused on 2 parts Primary Focus market: Enterprise a. Application Transformation for of the customer biz Mobility Public and Private Clouds 1. Existing 1. Development of productized i. App Refa
Slide 17: Differentiation through Domain and Solution Focus
Differentiation through Domain and Solution Focus Domain & Differentiated Solutions H2/H3 Program 1. Building Domain capabilities as 1. Investment in areas which can part of the Business Advisory be future growth drivers for the Services team within the vertical company 2. Identify process assets an
Slide 18: Mergers & Acquisitions
Mergers & Acquisitions Domain Technology Geo Focused Focused Focused Assets Assets Assets Targets with deep domain knowledge or Targets with high customer IP/Technical skills in Targets with high concentration in identified areas of Focus Geo presence momentum verticals Analytics, Cloud and with cho
Slide 19: In Summary
In Summary ‘4’ Over-arching Global changes ‘4’ Key Components to the Strategy Markets Themes Domains • Account RE • Cloud • Biz advisory • 4 growth • Analytics services verticals • Mobility • Vertical • Emerging geos solutions M&A 19 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 20: Demerger Scheme
Demerger Scheme 20 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 21: Wipro Today – A combination
Wipro Today – A combination IT Business Diversified Businesses 1. Tier 1 IT Service providers from India Consumer Care Consumer Care Lighting, Furniture 2. No. 2 in the Indian Domestic IT Services market (India) (Overseas) & Switches Wipro Wipro GE Medical 3. Strong presence in IT Infrastructure Man
Slide 22: Profile of Diversified Businesses
Profile of Diversified Businesses Lighting, Wipro Medical Diagnostic Consumer Care – Consumer Care – Furniture & Infrastructure & Product & Services India Overseas Switches Others through Strategic JV 1. Products 1. South East 1. Primarily in 1. Hydraulic cylinder 1. One of the leading players Portf
Slide 23: Distinct Business Models
Distinct Business Models IT Business Diversified Businesses Service Oriented Manufacturing & Marketing Oriented Steady to High Growth Volatile Growth Trajectory Global Focus Emerging Market Focus Project Based Volume Based Corporate Clientele Largely Consumer Higher Margin Lower Margin Wipro Enterpr
Slide 24: Proposed Restructuring
Proposed Restructuring Current Structure Post Demerger & Exchange(1) Promoter & Public Promoter & Public Promoter ADRs (excluding Promoter ADRs (excluding Group ADRs) Group ADRs) Wipro Limited) (IT Business) Wipro Limited Wipro Enterprise Limited IT Diversified (Diversified Businesses) Business Busi
Slide 25: Restructuring Rationale
Restructuring Rationale 1. Demerger will facilitate in creating a simple structure with two separate entities Simplified a. A listed pure-play IT company – Wipro Limited similar to the peers in the industry Corporate Structure b. An unlisted independent platform for Wipro Enterprise Limited comprisi
Slide 26: A Win-Win proposition for all Stakeholders (1/2)
A Win-Win proposition for all Stakeholders (1/2) 1. Stand-alone evolution for both entities characterized by different client base and market dynamics Company/ 2. WL: Full focus on its core operations and determined execution of the business transformation Business plan 3. WEL: Have full command of
Slide 27: A Win-Win proposition for all Stakeholders (2/2)
A Win-Win proposition for all Stakeholders (2/2) 1. Potential value unlocking of the Diversified businesses, currently not captured in the value of WL Shareholders 2. Multiple options provided to the shareholders to select the route which suits their requirement 3. Higher free-float in WL with limit
Slide 28: Other Key Elements
Other Key Elements 1. Mother brands & IPs including the “Wipro” name to be co-owned between WL and WEL 2. Brands & IPs specifically pertaining to Diversified businesses to be demerged to WEL 3. Brand sharing agreements to be adopted by both WL and WEL Brand & IP 1. WL and WEL to benefit from shared
Slide 29: Scheme Highlights
Scheme Highlights 1.Swap Ratio: 1 equity share / 1 Redeemable Preference Shares (RPS) in WEL for every 5 equity share in WL Swap and 2.Exchange Ratio: Every 1.65 equity shares in WEL to be exchanged for 1 equity Exchange shares in WL of promoter Ratio 3.Preference share issued with face value of Rs.
Slide 30: Options for the Public Shareholders
Options for the Public Shareholders Non-resident Shareholders of WL Resident Shareholders of WL ADR Holders (excluding ADR holders) Options: Options: ADR holders acting through their depository shall compulsorily 1. Receive equity shares in WEL; or 1. To receive equity shares in WEL; exchange the eq
Slide 31: Redeemable Preference Shares (RPS) – Key Terms
Redeemable Preference Shares (RPS) – Key Terms Swap Ratio • 1 RPS in WEL for every 5] Equity Share in WL Face Value • Rs.50 per RPS Maturity • 1 year Coupon • 7% Redemption • Rs.235.2 Price Listed / • Unlisted Unlisted 31 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 32: Indicative Timeline
Indicative Timeline Key Milestones 1 Receipt of approval from SEBI X + 14 2 Receipt of approval from Stock Exchanges X + 30 3 Receipt of approval from Shareholders and Creditors X + 80 4 Receipt of approval from FIPB and RBI X + 90 5 Receipt of Court approval X + 115 6 Record date for issue of equit
Slide 33: Transaction Advisors
Transaction Advisors Financial Advisor Implementation under the oversight of Committee of Legal counsel Independent Directors consisting of: • Mr. Narayanan Vaghul (Chairman) Report On • Mr. M. K. Sharma Share Entitlement N.M. RAIJI & Co. • Mr. William Arthur Ratio Owens Fairness Opinions on Demerge
Slide 34: Annexure - Key Highlights of IT and Other Businesses
Annexure - Key Highlights of IT and Other Businesses 34 © 2012 WIPRO LTD | WWW.WIPRO.COM
Slide 35: Highlights of the Quarter ended September 30, 2012
Highlights of the Quarter ended September 30, 2012 Revenue Highlights 1. Wipro Limited Revenue grew by 17% YoY to Rs. 106.57 Bn. 2. IT Services Revenue at $1,540.7 Mn, sequential growth of 1.7%. 3. Energy, Natural Resources and Utilities grew grew 8.4% sequentially, Financial Services grew by 4% seq
Slide 36: Non IT Business Highlights for the Quarter Ended September 30, 2012
Non IT Business Highlights for the Quarter Ended September 30, 2012 Wipro Consumer Care and Lighting (WCCL) 1. Revenue growth in Q2 of 26% YoY and EBIT growth of 29% YoY. 2. Santoor continues to be the the Number 1 Brand in the Combined South + West Regions with a market share of 14%. 3. Aramusk the
Slide 37: Thank You
Thank You 37 © 2012 WIPRO LTD | WWW.WIPRO.COM