Slide 1: Technology for the next decade, today. Investor Presentation Q4 FY20
Technology for the next decade, today. HCL Technologies Investor Presentation Q4 FY20 May 7th, 2020 5:00 PM (IST) © 2020 HCL Technologies Limited | www.hcltech.com 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statem
Slide 3: HCL Technologies Q4 FY20 Earnings Call (CEO)
HCL Technologies Q4 FY20 Earnings Call I am very thankful to my fellow HCLites, who relentlessly worked with our clients over the last 3 months, to keep our client businesses running at this time of unprecedented crisis. We also transitioned over 3.5 million end-users to a fluid workplace model for
Slide 4: HCL Technologies Q4 FY20 Earnings Call (CFO)
HCL Technologies Q4 FY20 Earnings Call FY’20 has been a fantastic year, wherein HCL has grown at 16.7% in constant currency, by far the fastest growing IT company. This includes industry leading 10.7% organic growth and 6.0% added via our thoughtful acquisitions. Our investments in HCL Software have
Slide 5: Performance Summary: Q4 and FY'20
Performance Summary: Q4 and FY’20 © 2020 HCL Technologies Limited | www.hcltech.com 5
Slide 6: COVID-19 – Our Response
COVID-19 – Our Response BCP activated on 26th Jan 2020, one of the earliest across the globe. Employees Clients Community • Employee Well Being at the • Enabled over 3.5 million client HCL Corp and HCL Tech’s Social core employees’ to work from home to Contribution includes: of our COVID-19 response
Slide 7: Performance Summary
Performance Summary Quarter ended Mar 31, 2020 Fiscal Year 2019-20 QoQ YoY YoY Revenue $2,543M 0.0% 11.7% Revenue $9,936M 15.1% Growth in CC 0.8% 13.5% Growth in CC 16.7% EBIT $531M 3.1% 21.8% EBIT $1,946M 15.3% EBIT% 20.9% 63 bps 174 bps EBIT% 19.6% 3 bps Net Income $431M 1.2% 18.4% Net Income $1,5
Slide 8: Performance Trend
Performance Trend Revenues EBITDA & EBIT EBIT EBITDA 9,936 2,345 In USD Mn In USD M 8,632 1,995 1,946 7,838 1,777 6,975 1,688 1,539 1,552 1,414 FY'17 FY'18 FY'19 FY'20 FY'17 FY'18 FY'19 FY'20 Net Income Net Income Cash Net Income Earnings Per Share EPS Cash EPS 52.8 2,012 In USD M In INR 41.8 40.8 1
Slide 9: Q4 FY'20 Highlights
Q4 FY’20 Highlights • Signed 14 transformational deals in Q4 FY’20, making a total of 53 transformational deals in FY20. Q4 recorded the highest booking in FY 20. • Mode 2 grew 7.1% QoQ on the back of strong demand for scale digital propositions and hybrid cloud adoption • Chosen by a leading US-bas
Slide 10: Financial Updates: Q4 and FY'20
Financial Updates: Q4 and FY’20 © 2020 HCL Technologies Limited | www.hcltech.com 10
Slide 11: Performance Summary
Performance Summary Quarter ended Mar 31, 2020 Fiscal Year 2019-20 YoY YoY Revenue Growth in CC 13.5% 16.7% Organic Revenue Growth in CC 6.0% 10.7% EBIT % 20.9% 174 bps 19.6% 3 bps ETR % 20.9% Up 1.2% Net Income % 17.0% 15.6% EPS Rs 40.8 10.8% Cash EPS Rs 52.8 26.3% © 2020 HCL Technologies Limited |
Slide 12: Cash Flow
Cash Flow Particulars FY'19 FY'20 OND'19 JFM’20 Net Income 1,443.8 1,558.1 427.6 432.5 Adjustments Depreciation and Amortization 306.7 399.2 112.3 115.4 Deferred income taxes (86.5) 14.9 19.8 (5.3) Others (27.4) 39.5 9.1 22.2 Cash Profit of US $ 2.0 Bn has resulted in Cash Cash Profits 1,636.6 2,011
Slide 13: Client Trends
Client Trends Client Category Client Contribution To Revenue Number Of Million Dollar Clients (LTM) (in % LTM basis) 31-Mar-19 31-Mar-20 31-Mar-19 31-Mar-20 top 10 $100M+ 15 17.0% 5 15.1% clients 29 $50M+ 30 top 166 $10M+ 171 24.1% 10 22.0% clients 283 $5M+ 308 top 623 $1M+ 791 33.4% 20 32.1% client
Slide 14: Business Segment / Mode wise Performance (Q4 FY'20)
Business Segment / Mode wise Performance (Q4 FY’20) Revenue Revenue EBIT QoQ Growth Quarter Ended 31-Mar-20 (in US$ M) Mix Margin (in Constant Currency) IT and Business Services 1,796 70.6% 19.1% 1.6% Engineering and R&D Services 415 16.3% 19.0% -1.8% Products & Platforms 332 13.1% 32.8% -0.1% Total
Slide 15: Business Segment / Mode wise Performance (FY'20)
Business Segment / Mode wise Performance (FY’20) Revenue Revenue EBIT YoY Growth Fiscal Year Ended 31-Mar-20 (in US$ M) Mix Margin (in Constant Currency) IT and Business Services 7,135 71.8% 17.7% 12.7% Engineering and R&D Services 1,661 16.7% 19.3% 12.8% Products & Platforms 1,140 11.5% 31.5% 60.5%
Slide 16: Revenue Performance by Geo / Vertical
Revenue Performance by Geo / Vertical Acquisition Impact per Prior Methodology Acquisition Impact per Actuals Quarter Ended FY’20 Quarter Ended FY’20 PARTICLUARS DETAILS (31-Mar-2020) over FY’19 (31-Mar-2020) over FY’19 YoY YoY QoQ YoY YoY Consolidated For the Company 13.5% 16.7% 0.8% 13.5% 16.7% Am
Slide 17: Looking Ahead
Looking Ahead © 2020 HCL Technologies Limited | www.hcltech.com 17
Slide 18: Short Term Business Drivers
Short Term Business Drivers Supply side has stabilized for Fluid Working Model – Some minor factors still out at play include work that requires presence in HCL / client labs, Travel & Visa constraints and onboarding new employees Demand Side Impact has been largely identified but still a small part
Slide 19: Medium Term Propositions of Power
Medium Term Propositions of Power Enablement of Fluid Digital Digital Transformation to accelerate Doubling up of cloud migration & Workplace and its related significantly from an earlier 3-5 year consumption components F plan Workplace Performance Analytics, Virtual Zero touch customer interactions
Slide 20: Medium Term Market Opportunities
Medium Term Market Opportunities Inflection point in the digitization of Healthcare and Lifesciences industry; Key Themes include Scaling up services, Virtual Everything; Modernization & Simplification of Value Chain through integrated solutions between key stakeholders – Payers, Providers and Pharm
Slide 21: Our Execution Priorities
Our Execution Priorities • Special focus to track and deliver 100% to client commitments CLIENT • No Touch Transitions for a Fluid World – Successful in large “transition in progress” engagements COMMITMENTS • Book retention and renewal through custom programs at a client level • Digital Workplace,
Slide 22: Q&A
Q&A © 2020 HCL Technologies Limited | www.hcltech.com 22
Slide 23: HCL Technologies at a Glance
HCL TECHNOLOGIES AT A GLANCE © 2020 HCL Technologies Limited | www.hcltech.com 23
Slide 24: The Fastest Growing Global Technology Company
The Fastest Growing Global Technology Company Key Differentiators Product Engineering DNA $9.94B REVENUE Digital at Scale 150,000+ Partnership Ecosystem IDEAPRENEURS Innovative Business Constructs 46 155+ COUNTRIES NATIONALITIES Relationship Beyond the ContractTM © 2020 HCL Technologies Limited | ww
Slide 25: Key Wins
Key Wins Integrated energy and utilities company based in ✓ Leading US based manufacturing company ✓ South Africa Chosen as sole strategic IT partner to deliver end-to-end applications, infrastructure and scale digital services - part of client’s digital Help customer to establish automation-led con
Slide 26: Key Awards & Analyst Recognitions
Key Awards & Analyst Recognitions Digital Workplace • Rated Leader in the inaugural edition of Everest Group’s Talent Readiness for Next Generation IT Services • Leader in the February 2020 Gartner* Magic Quadrant for Managed Workplace Services, North PEAK Matrix Assessment 2020 America • Leader in
Slide 27: Culture of 'Giving Back': Corporate Social Responsibility
Culture of ‘Giving Back’: Corporate Social Responsibility HCL Foundation was recognized by the Basic Directorate of Education, Government of Uttar Pradesh for creating a pathway to new education and changing the horizon of education ecosystem of Uttar Pradesh in presence of Hon’ble Governor Mrs. Ana
Slide 28: Culture of Ecosystem Experiences: Global to Local Platforms
Culture of Ecosystem Experiences: Global to Local Platforms HCL Confluence at HCL Concerts at Accelerate - HCL Analyst Day 2019 New Delhi’s Leela Palace Carnegie Hall NY & Levi’s Stadium, SF First delivery centre in Two technology delivery centers HCL & VOR HCL at Dreamforce 2019 HCL at MWC’19 Hamil
Slide 29: Diversity and Inclusion
Diversity and Inclusion As one of the two global strategic sponsors, HCL celebrated International Women’s Day with events across 21 offices globally, designed around its Diversity & Inclusion theme #BalanceforBetter. The Stevie® Awards for Women in Business are the world's premier business awards fo
Slide 30: www.hcltech.com
w w w. h c l t e c h . c o m $9.94 BILLION | 150,000+ IDEAPRENEURS | 46 COUNTRIES