Wipro Limited · NSE:WIPRO
Wipro — Investor Presentation (January 2009)
34 slides from Wipro's investor presentation, Jan 21, 2009
Slide 1: Presentation to Investors
Wipro Limited Presentation to Investors January 21, 2009. © 2008 Wipro Ltd - Confidential 1
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: Overview of Wipro Corporation Performance
Overview of Wipro Corporation Performance 1. Revenue for the corporation at $4.9 billion for 2007-08 2. Total Employees ~100,000 3. Total IT business touches $4.3 billion 4. Consumer Care and Lighting business achieves $378 million •Wipro Corporation revenue at Rs.200 billion for 2007-08 5. Wipro –
Slide 4: Business Model exhibits Resilience
Business Model exhibits Resilience Challenging Global Environment characterized by collapse of Financial Institutions and Credit Crunch Wipro Resilience 4
Slide 5: What is the market Opportunity???
What is the market Opportunity??? 5
Slide 6: Offshore Still Small Part of Overall Spend
Offshore Still Small Part of Overall Spend 1. Despite the growth Global Technology Related Spend & India’s India has seen in Current Exports ($ Bn) Global IT Services market, it is still a very small Indian Exports As % of Global Spend proportion (~2%) of global spend ~5% ~2% ~1% ~2% Source:Nasscom
Slide 7: India Story becoming Stronger
India Story becoming Stronger India’s offshore IT and BPO exports, US $ Bn. 120-180 1. Industry CAGR BPO ~80 40% continues strong momentum – CAGR IT 22% grew 28% in ~60 FY08 CAGR BPO 50% 2. IT-BPO exports 40.3 could reach a CAGR IT 31.4 size of $120- 25% 180 Bn by 2015 ; 23.6 28% CAGR of 15-21% 17.7
Slide 8: Incentive to Outsource / Offshore
Incentive to Outsource / Offshore • Capital conservation and operating expense reduction with quick payback period is the top most priority • Stick to Core Competence – Enables organizations to manage their operations by outsourcing non-core business functions, streamlining processes, improving effi
Slide 9: How do we capitalize on the opportunity?
How do we capitalize on the opportunity? …Through our differentiators - Current and Prospective 9
Slide 10: Wipro Differentiators
Wipro Differentiators 1. Verticals 2. Service Lines 3. R&D 4. India & Middle East 5. Wipro Way 6. Acquisition 10
Slide 11: Improved Addressability through Verticalization
Wipro Differentiators: 1. Verticals Improved Addressability through Verticalization Verticals Addressed Telecom Banking Energy & Manufacturing Utilities Securities Technology CMSP Insurance Retail & Healthcare Transportation • Pioneered the Vertical framework in 1999 – first among Tier 1 players • V
Slide 12: Service Lines – Growth Drivers and Differentiators
Wipro Differentiators: 2. Service Lines Service Lines – Growth Drivers and Differentiators FY07-08 YoY% 54% 38% T esting 42% 27% PES T esting BP O 40% 15% BP O BP O TIS 49% TIS TIS TIS PI PI PI 36% PI FY01-02 FY03-04 FY05-06 FY07-08 Incubate Expand Enhance Deliver Value Delivering Comprehensive Solu
Slide 13: Leaders in R&D Business
Wipro Differentiators: 3. R&D Business Leaders in R&D Business Industry Verticals Addressed 1064 Fiscal Year 851 25% 672 27% 514 Wireless Net & Printing and Devices Imaging 2004-05 2005-06 2006-07 2007-08 18000+ talent pool engaged in R&D Services Largest player based on headcount Computer Wor
Slide 14: Wipro Infotech – Emerging Market Focus
Wipro Differentiators: 4. India & Middle East Wipro Infotech – Emerging Market Focus 1. Leadership position in India, pioneer in Middle East 2. Best of breed partnerships 3. Revenue of $931 million ; 3-year CAGR of Revenue at 39% and EBIT at 44% 4. Transformational customer engagements 5. Incubator
Slide 15: Driving Innovation
Wipro Differentiators: 5. Wipro Way Driving Innovation • Understanding customer and his needs better • Moving from doing what is contracted to being a partner in solution success • Internal partnerships to create value for the customer • Relationship building, Excellence in governance Customer & Wip
Slide 16: Acquisition Strategy
Wipro Differentiators: 6. Acquisition Acquisition Strategy 1. Enhancing domain and technology competence 2. Expanding Service Line portfolio 3. New geographies 4. Investment of $1 billion+ towards strategic acquisitions CITOS Infocrossing ¾ Transformational deal for Wipro: Infocrossing’s ¾ Committed
Slide 17: Shaping the Future
Shaping the Future 1. Global TOS Business Transformation 2. Global Programs 3. Best Shoring 4. Integrated Consulting IT Transformation 5. Mega Partnerships 6. Product Engg as a Service line 17
Slide 18: Total Portfolio of Services
Shaping the Future: 1. Global TOS Total Portfolio of Services TIS Infocrossing Infrastructure Consulting & SI Managed Data Center Services Managed Services – Open Systems Managed Services – Mainframe & Storage Network Management Non-linear delivery model Business Service Management Service Desk Unle
Slide 19: Global Programs – Transformational Outsourcing
Shaping the Future: 2. Global Programs Global Programs – Transformational Outsourcing Program Management Consultative Approach Multi-tower IT Rationalization Delivery Assurance engagements Application Rationalization Change Management Implement Commercial and Re-architect Institutionalize
Slide 20: Redefining the Delivery Model
Shaping the Future: 3. Best Shoring Redefining the Delivery Model Approach to Optimize Delivery Locations • Design ideal mix of onshore, offshore and best shore based on client’s business needs and value hierarchy. • Provide integrated applications, BPO and ITO Service Delivery from Global Service C
Slide 21: Consulting Services
Shaping the Future: 4. Integrated Consulting Consulting as an Enabler GEO GO-TO-MARKET Dedicated MEGA / GAMA account alignment BUSINESS PERFORMANCE Single services channel for Verticals/ Accounts/ Analysts CONSULTING SERVICES IT PLANNING & GOVERNANCE Comprehensive market-aligned advisory servi
Slide 22: Partnership with Technology Leaders
Shaping the Future: 5. Mega Partnership Partnership with Technology Leaders A Winning Combination: Enhanced customer value proposition Improved customer penetration and global go-to-market Co-innovation and Co-creation of Solutions Emerging Market Focus Synergistic Partnership ecosystem for the futu
Slide 23: Cutting Edge Product Engineering Services
Shaping the Future: 6. PES as a Service line Cutting Edge Product Engineering Services Product Engineering – a differentiated capability in Wipro Incubated in our Telecom, Computing & Semiconductor business Leaders in VLSI services Addressing new segments through this differentiated capabili
Slide 24: Innovative Offerings - Performance And Capital Efficiency (PACE)
Innovative Offerings -Performance And Capital Efficiency – “PACE” A set of service offerings from Wipro to address key requirements of companies in this downturn – Capex and Opex reduction Companies are going slow on capital expenditure to conserve cash in order to withstand the global economic sl
Slide 25: Performance Highlights
WIPRO Applying Thou Performance Highlights
Slide 26: Performance of IT Services
Performance of IT Services CAGR of 36% Our Combined IT Products and Services business at $4.3 billion in 2007-08 Partner to industry leaders Global footprint 882 active global clients Listed on NYSE as on 31 December 2008 54 countries 191 Global 500/Fortune 1,000 clients ~14,500 employees
Slide 27: IT Services – Highlights for the Quarter ended December 31, 2008
IT Services – Highlights for the Quarter ended December 31, 2008 • IT Services Revenue based on exchange rate as of Sept 30, 2008 at $1,126Mn against a guidance of $1,121Mn. Constant currency growth of 3.5% seq and 19% YoY • IT Services Revenue in dollar terms was $1,100Mn, a sequential decline of 0
Slide 28: Strength of De-Risked Business Model
IT Services Business Strength of De-Risked Business Model Vertical distribution for Q3 2008-09 Service line distribution for Q3 2008-09 Telecom, 10% Technology, 11% TIS 19% CMSP, 8% Testing ADM 11% Mfg & HLS, 19% 43% PI BFSI, 26% 12% PES BPO 6% E&U, 8% 9% Retail & Differentiated Service lines contri
Slide 29: Platform for Sustainable Growth
Performance Highlights IT Services Platform for Sustainable Growth 1. Tightened No. of Active Customers % Revenues from Differentiated Service Lines qualification process for new accounts as well 915 as active accounts 906 55% 56.3% 56.9% 882 2. High focus on existing accounts resulting in Dec-07 De
Slide 30: Looking Ahead
Looking Ahead Looking ahead, for the quarter ending March 31, 2009, we expect the Revenue from our IT Services business including Revenues from the acquisition of Citi Technology Services to be approximately $1045 million *based on constant currency exchange rates Constant Currency Exchange Rate GBP
Slide 31: Strength of our Balance Sheet
Performance Highlights Strength of our Balance Sheet Our cash balance net of debt has increased from Rs.6,935 million ($148 million) as of 30th Sep 2008 to Rs.10,728 million ($221 million) as of 31st Dec 2008. We generated Free Cash Flow of Rs.5,850 million ($120 million) in the current quarter
Slide 32: Corporate Governance
Performance Highlights Corporate Governance • Wipro has been a listed company since 1946 and has an excellent track-record of corporate governance and integrity. • Over the years we have proactively adopted governance & disclosure standards long before they became mandatory – be it segment-wise & co
Slide 33: Our Non IT business
Performance Highlights Our Non IT business Wipro Consumer Care and Lighting (WCCL) • For the quarter, WCCL recorded Revenues of Rs. 5.3Bn, a growth of 21% YoY and PBIT of Rs. 613Mn, a growth of 17% YoY • Unza continued to see good underlying value growth in all markets, with growth rates ahead of GD
Slide 34: Thank You for your time
Thank You for your time © 2008 Wipro Ltd - Confidential