Infosys Limited · NSE:INFY
Infosys — Investor Presentation (2009)
22 slides from Infosys's investor presentation, 2009
Slide 1: Investor Presentation
Infosys » — | | | Investor Presentati
Slide 2: Safe Harbor
Safe Harbor This presentation includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Infosys believes that the expectations contained in such forward-looking statements are reas
Slide 3: Highlights
Highlights • An overview • Next Generation Business model • Market opportunities • Competitive situation • Strategy and approach to market • Investments • Financials • Challenges
Slide 4: An overview
An overview • LTM Mar 09 Revenues / 5-year CAGR: $4.66 billion / 34% • LTM Mar 09 Net Income / 5-year CAGR: $1.28 billion / 37% • Employees (Mar 09): 104,850 from 76 nationalities • Market cap (Mar 09)*: $ 15.07 billion • Global Presence: 55 Sales Offices 54 Global Development Centers Operating in 2
Slide 5: Next Generation Business Model
Next Generation Business Model 2008 2001 1996 1981
Slide 6: Non-ADM Services as % of revenue
Non-ADM Services as % of revenue 51.0 53.7 48.1 43.9 45.8 41.4 35.1 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY09 • 25% revenues from Consulting and Package Implementation (FY09) as against 15% in FY 03 • Over 50 solutions and alliances contributing to 12% of revenues e.g. Master Data Management, Multi-C
Slide 7: New Clients and Increasing Revenue Per Client
Resulting in New Clients and Increasing Revenue Per Client Large, Growing Client Relationships Increasing revenue per client Number of clients contributing >$1mm in LTM revenues 327 131 Execution excellence resulted in high share of repeat business (97.6% in FY 09)
Slide 8: Market Opportunities
Market Opportunities Global Mega Trends Infosys – Transformation Partner • Asia – New “center of gravity” for the world • Differentiated access to highly educated, cost-competitive • “Geography becomes History” with reduced human capital telecommunication costs • Leading the Next-Generation Business
Slide 9: Offshore Outsourcing is a Global Mega Trend
Offshore Outsourcing is a Global Mega Trend Outsourcing Benefits Offshore Benefits • Convert fixed costs to variable • Deliver high quality at great value • Reduce TCO • Highly scalable with a large resource • Improve competitiveness pool available • Improve time-to-market • Enhance ROI • Proven tra
Slide 10: Competitive Situation
Competitive Situation High Quality Delivery and Offerings • Established track record of exceptional quality • Expanded offerings that encompass the entire value chain Abundant Skilled Resources • 2.5 million English speaking graduate pool2 • 1,478 engineering colleges with a capacity to produce over
Slide 11: Competitive Situation: Convergence and Visibility
Competitive Situation Convergence causing disruption to legacy business models Need to: • Replace resources • Overcome “offshore-is-cost-center” mindset • Combat revenue cannibalization • Provide seamless sales and delivery GDM + Consulting • Reduce SG&A Large Onsite Firms Visibility Client GDM (~19
Slide 12: Strategy and approach to market
Strategy and approach to market Strategy • To have superior revenue growth and margins relative to the industry • Have end-to-end service capability, deep vertical penetration, broad geographical footprint • Increase revenue productivity and build long-term scalability by creating industry specific
Slide 13: Talent Management: Hiring the Best
Talent Management: Hiring the Best • Industry wide preferred employer • CNBC TV 18 Viewers Choice – New Age Employer of Choice Award 2007 • Best company to work for in India (TNS-Mercer, 2006) • Able to simultaneously evaluate 10,000+ candidates across 7 cities in India • Global hiring • US, UK, Chi
Slide 14: Developing and Retaining the Best
Developing and Retaining the Best • Learning support to employees towards development and career progression, which improves long-term retention and Advanced Leadership solidifies culture Training Training • Currently able to train 4,500 Leadership Development entry-level recruits at the Domain Clie
Slide 15: Investing in front-end, services and subsidiaries
Investing in front-end, services and subsidiaries 2007 2008 2009 Sales & Marketing expenses ($ mn) 209 230 239 Sales & Marketing employees 537 604 821 R&D Expenses ($ mn) 37 50 51 Losses in subsidiaries ($ mn) China (7) (2) (2) Consulting (25) (13) (12) Mexico NA (2) (2)
Slide 16: Robust, Flexible, Modular Global Infrastructure
Robust, Flexible, Modular Global Infrastructure • 54 Global Development Centers (“GDC”)* • 27 in India • 27 in North America, Europe and Asia-Pacific • 22.6 million sq. feet* of total area to house 95,000 employees • 4.6 million sq. feet* under construction to house 20,800 employees • Ability to rap
Slide 17: Building World Class Systems and Processes
Building World Class Systems and Processes Quality par Excellence Award-winning Technology-driven Knowledge Management Scalable Business Processes Processes • Benchmarked to Global Standards • PRIDE: Infosys process repository • 2008 Asian Most Admired Knowledge Enterprise (MAKE) award • Deployment
Slide 18: Superior Revenue Growth
Superior Revenue Growth Revenue Progression 1121 Quarterly Revenue (US$mm) 233 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09
Slide 19: Sustained, Industry-leading Profitability
Sustained, Industry-leading Profitability Flexible cost structure helps Infosys deliver industry-leading margins 35 29.5% 27.5% 30 25 20 15 10 5 0 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09
Slide 20: Strong and Liquid Balance Sheet
Strong and Liquid Balance Sheet • Highly liquid (Cash & Investments stand at $2,167 mm)* • Zero debt • High quality receivables (59.4% aging less than 30 days)* • Dividends upto 30% of annual post-tax profits • Superior Return on Invested Capital and Capital Employed * As of March 31, 2009
Slide 21: Short-term and long-term challenges
Short-term and long-term challenges • Short-term • Uncertain economic environment • Cross currency movement • Long-term • Resource availability • Ability to expand addressable market • Wage inflation • Stronger rupee • Increase in tax rate
Slide 22: Thank You
Infosys | Thank You www.infos