Slide 1: Investor Day 2024
Investor Day 2024 C Vijayakumar CEO & Managing Director
Slide 2: Safe Harbor Statement
HCLTech Investor Day 2024 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 sta
Slide 3: Relative TSR performance
Relative TSR performance Industry leading TSR for a decade CAGR HCLTech Peer 1 Peer 2 Peer 3 as of Mar 31, 2024 10 Years 18.7% 16.5% 16.9% 10.0% 9 Years 15.9% 15.6% 14.4% 9.0% in five out of the last ten 8 Years 20.8% 17.8% 14.7% 11.7% financial years 7 Years 22.2% 21.2% 20.2% 15.3% 6 Years 24.1% 21
Slide 4: Factors driving this outstanding performance: Our cultural DNA
Factors driving this outstanding performance Our cultural DNA Entrepreneurial and empowering environment Innovation driven by our engineering pedigree Art of the possible Stable & home-grown leadership
Slide 5: Factors driving this outstanding performance: An all-weather portfolio
Factors driving this outstanding performance An all-weather portfolio Made possible by execution of our Mode 1-2-3 strategy since 2016 • Has resulted in the right mix of discretionary, non-discretionary services and IP • An improving mix across verticals and geos • Developed Digital Business, almost
Slide 6: Factors driving this outstanding performance: Client experience
Factors driving this outstanding performance Client experience Strong growth across categories demonstrates our strong execution with the best quality outcomes 22 Only service provider to win six $100M+ clients from 16 in FY22 Impressive CX score of 82.3 vs. industry average of 68.9 254 $10M+ client
Slide 7: Factors driving this outstanding performance: Our people
Factors driving this outstanding performance Our people Top Employer in 26 countries, with a #1 ranking in 15 12.4% 24% LTM attrition Increase in leadership from 21.7% in FY22 gender diversity since FY19 Overall gender diversity TechBees Differentiated talent strategy 25,218 24,797 India New Vistas
Slide 8: Factors driving this outstanding performance: Our approach to ESG
Factors driving this outstanding performance Our approach to ESG Act. Pact. Impact. Leadership rating (A-) from CDP, ₹1400Cr CSR investments in India for climate change actions Transforms over 6.5 million lives Best rating among Indian peers by Sustainalytics 25% Scope 1 and 2 reduction from FY20 5%
Slide 9: Factors driving this outstanding performance: Corporate governance
Factors driving this outstanding performance Corporate governance Diverse board Among the World’s Most • 70% independent directors Ethical Companies® 2024 • Gender-balanced board by Ethisphere • Experts from diverse industries across the globe
Slide 10: These factors contributed to solid financial performance
These factors contributed to solid financial performance Industry-leading Gained wallet share Capital efficiency organic growth across service lines in the last business cycle with continually improving RoIC Revenue Earnings per share Operating cash flow Market capitalization 7.5% CAGR 7.8% CAGR 19.
Slide 11: What could have been better
What could have been better Market participation and bookings Increased market participation, resulting in better G2000 coverage Cost EBIT continued to remain Employee cost as a % of Fresher hiring and stable as against our revenue remains above deployment efficiency aspiration for expansion pre-pan
Slide 12: Top opportunities for sustained growth leadership
Top opportunities for sustained growth leadership Total addressable market for IT Services nearing $2T by 2030 1 2 3 Data and AI expected Enterprise business Cloud migration to grow at a 19.1% CAGR applications to reach and cybersecurity $325B in 2027, with a great market opportunities CAGR of 14.3%
Slide 13: Top opportunities for sustained growth leadership
Top opportunities for sustained growth leadership Total addressable market for IT Services nearing $2T by 2030 4 5 6 ER&D market for engineering Business process Largest two verticals, service providers will be services market to be BFSI and TMT is 43% ~$170B by 2027 $300B by 2028 of the market Grow
Slide 14: Key vectors to sustain growth leadership
Key vectors to sustain growth leadership Full-stack AI solutions Differentiated challenger Consolidate our enabled by AI Force and in SAP, other enterprise infrastructure leadership AI Foundry applications, data & AI, etc. via cloud modernization Refer slide 18 Vertical digital engineering Gain shar
Slide 15: Project Ascend: Extracting efficiencies
Project Ascend GenAI-led delivery transformation Coding productivity, operational/managed services automation, knowledge base and customer support AI-led customized learning programs Entry level/fresher deployment For reskilling/upskilling to improve utilization and productivity To be accelerated on
Slide 16: HCLSoftware: Long-term strategic priority
HCLSoftware: Long-term strategic priority HCLSoftware - Largest enterprise software business out of Asia FY24 performance Future priorities 38.8% • Step up growth from low single digit to mid- Revenue 2.3% EBIT EBITDA ARR New large deal wins single digit • Expansion into India, Africa & Middle East
Slide 17: Looking ahead – our strategic objectives
Looking ahead – our strategic objectives Leadership Employer Preferred digital Weave ESG Continue through of choice for and AI partner for (Environmental, to deliver top differentiated professional Global 2000, Social and quartile TSR services and services talent equivalent Governance) into (Total S
Slide 18: HCLTech signed an agreement with SAP for a Migration Factory
HCLTech has signed an agreement with SAP for setting up a Migration Factory to simplify and accelerate the RISE with SAP transformations for SAP’s end customers. This is a pivotal moment in HCLTech’s relationship with SAP where SAP leadership have trusted HCLTech to drive their strategic program to
Slide 19: HCLTech
HCLTech | bese" heltech.com