Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (January 2018)
27 slides from Tata Consultancy Services's investor presentation, January 2018
Slide 1: Investor Presentation
Investor Presentation TCS January 2018 INVESTS R RELATI NS | Copyright © 2017 Tata Consultancy Services Limited
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this release concerning our future prospects are forward-looking statements. Forward- looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These r
Slide 3: Tata Consultancy Services
Tata Consultancy Services TCS is an IT services, consulting and business Global Presence: 227 Started in 1968, TCS is solutions company, offering transformational Offices in49 countries part of the Tata Group, known for its values, and 141 Solution and outsourcing integrity and services to global en
Slide 4: The Journey so far
The Journey so far Industry-leading top-line growth… …with superior profitability 200 $20,000 REV IN USD MN EPS IN ` $10,000 100 $0 0 FY08 FY05 FY06 FY07 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY05 FY07 FY09 FY11 FY13 FY15 FY17 Judicious usage of cash… …and higher-than-benchmark share performa
Slide 5: Leading Technology Change
Leading Technology Change TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 6: Leading through 50 Years of Enterprise Technology
Leading through 50 Years of Enterprise Technology ,,/.,, , Cypto ___ ______ Security, Privacy MES, M2M Cyber Sec, Identity, Blockchain IoT, Robotics Drones, Cyber-Physical Wearables, Bionics Industry 4.0 BYOD Devices Collaboration, Social, Touch Interaction, Design, AR/VR Groupware, Apps, Smartphone
Slide 7: Digital Transformation Offerings
Digital Transformation Offerings Consulting & Services Integration Enterprise Agility, M&A / Divestitures, Finance & Shared Services, CX Front Office Transformation, SCM as a Service, Next Gen Transformation, Digital Integration Reboot customer experience with Digital Interactive Commerce, Channels,
Slide 8: Embracing Agile at Scale
Embracing Agile at Scale Market Success Execution Capability 700+ Clients using agile methods 80,000+ Agile practitioners 100+ Large scale agile adopters 300,000+ 10,000+ Externally certified 156,000+ 1500+ Agile engagements person years of 7,000+ Scrum Masters Agile trained 300+ Large
Slide 9: Scalable Reskilling using the Digital Learning Platform
Scalable Reskilling using the Digital Learning Platform Access Analytics and Insights Cloud Qlik (Q 'e) pentaho· °9 Q no ~ g • amcracn.er. ,_ Anytime, Anyplace, - @ Chef OJilamaz~>n ~ . T£Ztl Spolk' ,f~ ooenstack· •• webserVIOOS dock12r Any device . neO[iJ Solr"' OJ (ii) Google ■• QJ QUALvs· Clo Jd
Slide 10: Investments in Design Capabilities
Investments in Design Capabilities Physical presence People Design, content, and technology 20 DESIGN STUDIOS & LABS Industry and domain Best-in-class lateral hires 11 INNOVATION CENTERS Academia collaboration DISTRIBUTED AGILE 13 ENGINEERING CENTERS Partners Partner-led growth strategy Design Studi
Slide 11: Focus Areas for Research & Innovation
Focus Areas for Research & Innovation Software Systems, Physical Sciences, Life BFS Retail Foundational Research Sciences, Behavioural-Social-and- Business Systems Frictionless Experience Immersive & Connected Insights & Automation Customer Engagement Data and Decision Sciences, Disintermedi
Slide 12: Portfolio of Intellectual Property
Portfolio of Intellectual Property Technology Products .... dreamUP • activearchive data interacts with you! TCS MasterCraft TCS Cloud Plus Suites of Products & more Horizontal Products & Platforms Integrated Urban Customer TAP - CHROMA Exchange Intelligence & Insights TCS Accounts Payable & more Ve
Slide 13: Co-innovating with the Startup Eco-system
Co-innovating with the Startup Eco-system GEOGRAPHY TECHNOLOGY VERTICAL USA, APAC Robo Advisory BFS USA Data Streaming BFS 2,029 USA USA FX Payments Visual IVR BFS BFS Visibility 702 USA USA AI - Data Enrichment Big Data BFS, CPG CPG Investor Portfolio Validation 76 USA UK Home Automation Cybersec
Slide 14: Alliances and Partnerships
Alliances and Partnerships Automation & AI Smart Workflow Cognitive Intelligence Others apigee Robotic Process Automation Appian ~~ red hat. ... \ 1, ,. IBM Watson ✓symantec. bluepnsm AUTOMATION FICO TensorFlow (llJ MetricStream ANYWHERE KOFAX=, ~•X¥1!!@JI in benta G gl for Work vmware dynatrace sof
Slide 15: Gaining Leadership in Digital
Gaining Leadership in Digital __. 3Q18 Digital Revenue: 22.1%, -- _- - - - 22.1 % growing at 39.6% YoY 7 Partnering 55% of Clients in 7 4 their Digital Journey 2 3 8 5 Signed largest ever Digital deal till date of $50 Mn+ 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 - Revenue from Digital(
Slide 16: Longer Term Growth Strategy
Longer Term Growth Strategy TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 17: Customer Centric Model
Customer Centric Model Deep domain expertise Differentiated, bespoke Contextual knowledge solutions More Repeat Business Innovation focus and IP Time to Market Wider footprint Full Services Capability Greater predictability Enduring relationships Agile, Global Delivery Superior Outcomes Relationship
Slide 18: Going Deeper, Casting Wider
Going Deeper, Casting Wider MEA & LatAm APAC & India New Industry UK & Europe New Clients, Vericals North America ……. New Markets BU 1 BU 2 BU 3 BU 4 BU 23 BU 24 >> New Service Consulting & Service Integration Offerings Digital Transformation Services Digital Interactive IoT, Analytics & Insights En
Slide 19: Going Deeper, Casting Wider: A Case Study
Going Deeper, Casting Wider: A Case Study 180 160 Large Retail Client in UK 140 C ~ 120 0 VI => 100 C (II :J C 80 (II > (II 0:: 60 40 20 CY09 CY 10 CYll CY 12 CYB CY 14 CY 15 CY 16 CY 17 ■ ADM ■ Assurance Services ■ Others ■ Enterprise Solutions ■ IT IS ■ Digita l Ini tiatives 19 TATA coNsULTANCYSER
Slide 20: Going Deeper, Casting Wider: Business Outcomes
Going Deeper, Casting Wider: Business Outcomes Large Client Metrics Rev in USD Bn US$ 20 Mn+ I , ■ I I 4 New clients I ■ US$ 50 Mn+ I I I ■ US$ 100 Mn+ I I 190 33 I I New services I I I I 9 Same clients, 8 same services 99 84 43 14 --- --- 35 FY12 FY17 FY 11 FY 16 TCS 20 TATA coNsULTANcv SERVICES I
Slide 21: Going Deeper, Casting Wider: Financial Outcomes
Going Deeper, Casting Wider: Financial Outcomes Revenue per capita ($ cc) Net Income per capita ($) 11,394 51,896 9,319 42,630 FY12 FY12-17 FY12 FY12-17 TCS 21 TATA coNsULTANcv SERVICES I lfili\T8~s
Slide 22: Cash Flow
Cash Flow Cash Conversion Free Cash Flow Free Cash Flow/ OCF to Net Income USD Mn Enterprise Value $3,732 5.6% 102.7% I I I I I I I I I I I I I I I 68.9% I I I I I I I I I I I 2.6% I I I I I $1,117 I I I FY12 FY17 FY12 FY17 FY12 FY17 TCS 22 TATA coNsULTANcv SERVICES I lfili\T8~s
Slide 23: Strong Capital Allocation
Strong Capital Allocation $3,732 $2,939 $2,953 $2,886 Average Payout FY14-FY18 YTD : c ~ • ----------------------------------- ------------- 80% $2,030 $1,554 $1,649 - ,1,160 - FY14 FYlS FY16 FY17 FY18 (YTD) ■ Free Cash Flow ■ Shareholder Payout 23 TATA coNsuLTANcv sERv1cEs I lfffl\T81s
Slide 24: Structural Growth Drivers
Structural Growth Drivers Consolidating market Emerging Markets catching up in >> Scale providers gaining Technology adoption>> Expanding market share global spend competitive IT is a source of Shortening Tech shelf-life >> differentiation >> Rising Greater propensity technology intensity of busines
Slide 25: Annexure
Annexure TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Slide 26: Latest Earnings' Financial Highlights
Latest Earnings’ Financial Highlights IFRS USD Mn Yearly Quarterly FY17 FY16 YoY 3Q18 3Q17 YoY Revenue - CC $17,918 $16,545 8.3% $4,659 $4,387 6.2% Revenue - ` Mn 1,179,660 1,086,462 8.6% 309,040 297,350 3.9% Revenue - USD $17,576 $16,545 6.2% $4,787 $4,387 9.1% Gross Profit $7,611 $7,271 4.7% $2,02
Slide 27: Thank You
Thank You Thank You TCS TATA CONSULTANCY SERVICES RlYi\T8~s
Tata Consultancy Services — Investor Presentation (January 2018) on 6ix