Infosys Limited · NSE:INFY
Infosys — FY2018 Earnings Presentation
27 slides from Infosys's earnings presentation, 2018
Slide 1: Celebrating
CELEBRATING y= Infosys a0. 3] SEPT T EEE TT ayo PTET GENERAL
Slide 2: FY18 – Highlights of Financial Performance
FY18 – HIGHLIGHTS OF FINANCIAL PERFORMANCE M.D. Ranganath Chief Financial Officer
Slide 3: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number
Slide 4: Resilient financial performance in FY18
Resilient financial performance in FY18 Robust Free Cash Flow (FCF), Healthy Earnings Per Share (EPS) Growth and Enhanced Return on Equity (RoE) – Resilient operating margins – Efficient capital management – Predictable and comprehensive capital allocation policy FCF1 EPS RoE up 15.3% up 17.8%2 24.1
Slide 5: Resilient financial performance in FY18
Resilient financial performance in FY18 Competitive cost structure through productivity improvements, higher utilization & automation – Revenue growth was faster than headcount growth – Employee cost as % of revenue was stable at 55.2% Revenue Headcount1 up 7.2% up 1.9% 1 Infosys group 5 Financial n
Slide 6: Our revenue growth trajectory – FY18 vs. FY17
Our revenue growth trajectory – FY18 vs. FY17 USD revenue growth – YoY% FY17 FY18 10.9% 9.2% 8.2% 8.0% 7.4% 7.2% 6.0% 6.0% 5.0% 5.4% Q1 Q2 Q3 Q4 FY17 Q1 Q2 Q3 Q4 FY18 8.3% 5.8% in constant currency in constant currency Digital revenue was 25.5% of total revenue in FY18 6 Financial numbers are based
Slide 7: US$ 100 Mn+ and US$ 1 Mn+ clients – Uptick in the last 2 years
US$ 100 Mn+ and US$ 1 Mn+ clients – Uptick in the last 2 years US$ 100 Mn+ clients US$ 1 Mn+ clients FY18 : 20 FY18 : 634 +6 +76 FY16 : 14 FY16 : 558 7 Financial numbers are based on IFRS consolidated financial statements
Slide 8: Resilient operating margin and robust Free Cash Flow
Resilient operating margin and robust Free Cash Flow Free Cash Flow DSO Days Operating Margin % $ Mn Q4 24.7% Q3 24.3% FY18 1,947 67 24.3% Q2 24.2% Up 15.3% Q1 24.1% FY17 1,688 68 24.7% 8 Financial numbers are based on IFRS consolidated financial statements
Slide 9: Increase in revenue per employee
Increase in revenue per employee – Primarily driven by productivity improvements FY18 7.2% Revenue per employee US$ 54,602 YoY growth 1.9% 6.3% USD Revenue Headcount1 growth % growth % 1 Infosys group 9 Financial numbers are based on IFRS consolidated financial statements
Slide 10: Key operational efficiency parameters have improved in FY18
Key operational efficiency parameters have improved in FY18 Utilization Onsite effort mix FY18 84.6% 29.3% FY17 81.7% 29.8% Revenue per employee ($) Employee cost as % of revenue FY18 54,602 55.2% FY17 51,375 55.0% 10 Financial numbers are based on IFRS consolidated financial statements
Slide 11: Healthy EPS growth and enhanced RoE
Healthy EPS growth and enhanced RoE FY17 FY18 EPS growth % 4.3% 17.8%1 RoE % 21.4% 24.1% 1 FY18 EPS includes positive impact of $0.09 from Advance Pricing Agreement (APA) with the US IRS concluded during the year 11 Financial numbers are based on IFRS consolidated financial statements
Slide 12: Capital allocation policy – Implemented in FY18
Capital allocation policy – Implemented in FY18 Regular Special Buyback dividend dividend Dividend per share1 Dividend1 as % of Capital returned1 to FCF shareholders $ Mn 43.50 3,788 FY18 33.50 10.00 70% 21% 91% 1,352 401 2,035 69% 249% FY17 25.75 63% 1,085 1 Final dividend and special dividend are
Slide 13: Review of capital allocation policy
Review of capital allocation policy The Board, in April 2018, approved the Capital Allocation Policy of the Company as follows: A. The Board has decided to retain the current policy of returning upto 70 % of the Free Cash Flow1 of the corresponding Financial Year B. In addition to the above, the Boa
Slide 14: Effectively navigated the volatile currency environment
Effectively navigated the volatile currency environment Revenues Intra year FY18 High Low % by currency movement 65.87 4.0% USD 67.7% USD/INR 63.25 1.25 18.6% EUR 11.3% EUR/USD 1.06 0.81 11.0% AUD 7.8% AUD/USD 0.73 1.43 16.1% GBP 5.3% GBP/USD 1.24 14 Financial numbers are based on IFRS consolidated
Slide 15: Movement in key parameters over last 2 years
Movement in key parameters over last 2 years FY16 FY18 Market Cap to Revenue 4.6 3.6 Market Cap to Free Cash Flow 30.2 20.0 Free Cash Flow Yield %1 3.3% 5.0% Dividend Yield % 2.0% 3.8%2 Market Cap / share price as on Mar 31, 2018 and Mar 31, 2016 on New York Stock Exchange (NYSE) 1 Free cash flow yi
Slide 16: Summary financial performance (IFRS)
Summary financial performance IFRS (in ₹ crore) IFRS FY18 FY17 YoY growth Revenues 70,522 100.0% 68,484 100.0% 3.0% Cost of revenue 45,130 64.0% 43,253 63.2% 4.3% Gross profit 25,392 36.0% 25,231 36.8% 0.6% SG&A cost 8,244 11.7% 8,330 12.1% -1.0% Operating profit 17,148 24.3% 16,901 24.7% 1.5% Other
Slide 17: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IFRS (in crore) Assets FY18 FY17 Current assets 50,017 62.6% 53,705 64.4% Cash & cash equivalents1 19,818 24.8% 22,625 27.1% Current investments1 6,407 8.0% 9,970 12.0% Trade receivables 13,142 16.5% 12,322 14.8% Unbilled revenue 4,261 5.3% 3,648 4.4% Prep
Slide 18: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IFRS (in crore) Assets FY18 FY17 Non-current assets 29,873 37.4% 29,650 35.6% Property, plant and equipment1 12,143 15.2% 11,716 14.1% Goodwill1 2,211 2.8% 3,652 4.4% Intangible assets1 247 0.3% 776 0.9% Investment in associate - - 71 0.1% Non-current inve
Slide 19: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IFRS (in crore) Liabilities and stockholders equity FY18 FY17 Current liabilities 14,105 17.7% 14,013 16.8% Current income tax liabilities 2,043 2.6% 3,885 4.7% Unearned revenue 2,295 2.9% 1,777 2.1% Employee benefit obligations 1,421 1.8% 1,359 1.6% Other
Slide 20: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IFRS (in ₹ crore) Liabilities and stockholders equity FY18 FY17 Stockholders equity1 64,924 81.2% 68,982 82.8% Share capital 1,088 1.4% 1,144 1.4% Share premium 186 0.2% 2,356 2.8% Retained earnings 61,241 76.6% 65,056 78.1% Other components of equity 2,40
Slide 21: Summary financial performance (IND AS)
Summary financial performance IND AS (in ₹ crore) IND AS FY18 FY17 YoY growth Revenues 70,522 100.0% 68,484 100.0% 3.0% Cost of revenue 45,130 64.0% 43,253 63.2% 4.3% Gross profit 25,392 36.0% 25,231 36.8% 0.6% SG&A cost 8,244 11.7% 8,330 12.1% -1.0% Operating profit 17,148 24.3% 16,901 24.7% 1.5% O
Slide 22: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IND AS (in crore) Assets FY18 FY17 Current assets 50,017 62.6% 53,705 64.4% Investments1 6,407 8.0% 9,970 12.0% Trade receivables 13,142 16.4% 12,322 14.8% Cash & cash equivalents1 19,818 24.8% 22,625 27.1% Loans 239 0.3% 272 0.3% Other financial assets 6,
Slide 23: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IND AS (in crore) Assets FY18 FY17 Non-current assets 29,873 37.4% 29,650 35.6% Property, plant and equipment (including 11,722 14.7% 11,116 13.3% CWIP)1 Goodwill1 2,211 2.8% 3,652 4.4% Other intangible assets1 247 0.3% 776 0.9% Investment in associate - -
Slide 24: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IND AS (in crore) Liabilities and stockholders equity FY18 FY17 Current liabilities 14,105 17.6% 14,013 16.8% Trade Payables 694 0.9% 367 0.4% Other financial liabilities 6,946 8.7% 6,349 7.6% Other current liabilities 3,606 4.5% 3,007 3.6% Provisions 492
Slide 25: Balance Sheet: Strong, debt free and liquid
Balance Sheet: Strong, debt free and liquid IND AS (in ₹ crore) Liabilities and stockholders equity FY18 FY17 Stockholders equity1 64,924 81.3% 68,982 82.8% Share capital 1,088 1.4% 1,144 1.4% Other equity 63,835 79.9% 67,838 81.4% Non-controlling interests 1 0.0% - - Total liabilities and equity1 7
Slide 26: Key milestones
Key milestones 25 years of public listing in India 5 years of listing in New York Stock Exchange (NYSE) Induction into the prestigious Dow Jones Sustainability Indices Completion of share buyback amounting to ₹ 13,000 crore (approximately US$ 2.0 Billion) Conclusion of Advance Pricing Agreement with
Slide 27: 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