Profitable, Sustainable & Inclusive Growth · 2018-08-31 · “Profitable, Sustainable & Inclusive Growth” to our illion Dollar Goal 15 GROWTH IMPACT % 8% - Expand in T30 5% -

11

Investor & Analyst Day 2018

Profitable, Sustainable & Inclusive Growth

Amit ChadhaPresident, Sales &

Business DevelopmentExecutive Director

Restricted Circulation | L&T Technology Services | © 2018 2Confidential | L&T Technology Services | © 2018 2

Disclaimer

This presentation is issued by L&T Technology Services Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person.

This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. This presentation should not be relied upon as a recommendation or forecast by the Company. Please note that the past performance of the Company is not, and should not be considered as, indicative of future results. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward looking statements.

This presentation may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of applicable laws.

The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for thecontents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertakes no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.

Restricted Circulation | L&T Technology Services | © 2018 3

Agenda

02

03

The Present & Today

Strategy and way forward

01 Market Trends

3


Trend #1: Demographic shift is a fundamental reality

EUROPEUSA

Male Female

NOW NOW

Male Female Male Female Male Female

0-9

59-100+

9-24

24-59

Age

+5.2%

-3.4%

-1.5%

-0.6%

+20 Yrs

Baby Care

Edutainment

Earning, Saving,

SpendingConsumer

CautiousConsumer

% Change in sectoral Demographics%

-1.2%

+0.6%

-6.1%

+20 Yrs

Baby Care

Edutainment

Earning, Saving,

SpendingConsumer

+6.9%

CautiousConsumer

Source: https://www.populationpyramid.net 4


Trend #1: Demographic changes are fueling R&D spend

USA

EUROPE

JAPAN

INDIA

Source: https://www.populationpyramid.net

Geographies

Robotic Automation & Modernization

Autonomous driving & Advanced Lifesciences

R&D Investment Areas

• Mass Mobility

• Healthcare

• Education

• Rapid Urbanization

• Depleting Resources

Social ImplicationsToday Y10+ Y20+

Digitalization & Sustenance

Source: https://www.populationpyramid.net 5


Trend #2: Buyer behaviors are changing

1Move from “Let’s do it ourselves” to “ Get it done from the Best in the business, Globally”

‘Servitize’ everything in a “Managed pay-per-use model”

Deploy Globally and Personalize Locally

“Digitalize” for relevance

2

3

4

a. A shift from being asset heavy to asset light b. Access to information and freedom of choicec. Emphasis on User experience

What matters most is …

6


Trend #3: Geo-political trends are positive

With manufacturing coming back to US, the

economy grew by 4.1% in Q2

Visa regulations and trade tariffs continue to be on

watchlist

European economy on a slow growth, backed by

consumer spending

Continued optimism for Japanese & Asian

economic expansion

7

GDPR Data Protection under watch


Leading to opportunities in our market place…

Demographic Changes

Change in Buyer

Behaviours

Geo-political trends

Industrial Robotics Market worth $87 billion by 2025

125 million EVs on road by 2030; Autonomous Driving a reality

Global 5G Market worth $251B by 2025; AI a reality

Global healthcare spending projected @ $8.7 Tn by 2020

Global IoT chipset market CAGR to be 13% (2018-2022)

New Plants being set up to address Global demand - locally

8

Confidential | L&T Technology Services | © 2018 9Confidential | L&T Technology Services | © 2018 9

Outsourcing Hotspots

North America$10 Bn

West Europe$26 Bn

India$12.5 Bn

RoW (Lat. America, Rest of Asia, Africa)$10 Bn

Validated by the growing ER&D addressable market

Global ER&D Spend

Addressable Market (2021: 371 Bn)

Addressed Market

Outsourcing Captives

Outsourcing ESP’s

$100 Bn

East Europe $4 Bn

ESP Outsourcing

to India

$62 Bn$38 Bn

1-2% 3-4% 12-15%

9-10%

Source: Zinnov Report

9

2017$12.5 Bn

2021~$20.0 Bn


Agenda

03 Strategy and way forward

01 Market Trends

02 The Present & Today

10


You have heard

us say…

We touch Every

facet of life!

HealthcareThat

PROTECTS

Industrialsthat

ENERGIZE

11


What do we actually do for our Clients?

Solutions

Services

Pro

du

ctP

lan

t

DT Robo™

Video Over The Top

Next-Gen Set Top BoxInfotainment

ADAS/ VANGEN CBM

Frameworks

UBIQWeise™ iBEMS™ W.A.G.E.S VLSI Imaging Analytics Digital PE

AI Framework

Industries

Industrial

ProductsMedical Transportation Hi-Tech

Process

Industry

AiKno™

12

Concept to Design

IMAGINEERINGProduct Innovation | Joint R&D

| Proof of Concept

Design to Engineering

ENGINEERINGNPD | Value Engineering |

Sustenance | V&V

Digitalization Services

DIGINEERINGSensors | IoT | Analytics |

Machine Learning | AI

Post Engineering

ADJACENT ENGINEERINGETO | CTO | Tech Pub | PLM |

Sourcing | MES

OPERATION ENGINEERINGIntegrated Asset Mgmt. | IT for OE |

Smart Manufacturing | Platform Migration | Safety

PROJECT ENGINEERINGPre-Project Engineering |

Procurement Support | Project Mgmt. | Detail Engineering |

Construction Mgmt.

GLOBAL ROLLOUTSSimulation Studies | Cost Engineering| Modularization | Master Planning & Remediation | Process Safety Mgmt.

| Integrated Engineering Mgmt.


d

Why are Clients buying from us?

Speed to market

Ability to be Asset Light

Micro-Vertical Focus

Attributes we leverage … … Leading to Benefit realization

“L” Model

Our Engineering DNA

A Global, yet Local Approach

Cross-pollinovation™

Cost advantage

13

Value Creation is a three way street – clients, their consumers and us


Agenda

01 Market Trends

02 The Present & Today

03 Strategy and way forward

14


“Profitable, Sustainable & Inclusive Growth” to our Billion Dollar Goal

15

GROWTH IMPACT %

8% - Expand in T30

5% - Large Deals

3% - WTS

3% - Geo Specific Growth

1% - IP Selling

Expand Top account farming in T30

Focus On Large Deals

‘Win Top Spenders’ for sustainable growth

Geo Specific Growth Approach

Services to Solutions leap

Looking at Business with an Investor Lens

04

05

06

01

02

03


Expand T30 Account Farming

T30 Program

Global Account Management Framework

Proactive Deals

Co-Innovation Labs and Investments

Review Cadence

Account Based Marketing

• Accelerate growth with Two in a Box model

• Client specific solutions for accelerated growth

• Customer account specific marketing campaigns

• Maintain periodic review cadence by means of Quarterly Biz. Reviews & Value Registers

• Engaging Onsite & Offshore teams in ideation and Large deals with rigorous monthly reviews

• Robust global account management framework to expand engagements into new geos

• Co-investing with customers to develop Next-gen technologies

01

16


Example of ‘Supersizing’ an Account

• Successful Pilots• MSA execution• 2-in-a-Box Account

level management• Empowered ARM

and ADM

• Account Plan• SEC Filing Analysis• Proactive Ideation• Client heat maps• Solution maps

• Client proximity reps• Map Sales and SMEs to client

org.• C-level connects• Divisional & Regional mapping• Platform play

• Establish Value register• QBR & regular connects• Review Wallet share metrices

• Client workshops for joint Ideation• Multilateral offerings• Large deal possible?

01

17


Continuous Movement upward across all categories

No. of Million Dollar Clients

FY18 A

2

2

8

19

50

1

FY17 A

1

2

7

19

35

0

No. of Million Dollar Clients Revenue($ Millions)

50+

30 - 50

20 - 30

10 - 20

5 - 10

1 - 5

01

1

4

13

22

53

2

FY19 E FY21 Goal

4

5

22

28

37

3

18


Focus on Large Deals

LTTS has executed a wide spectrum of deals

02

01

02

03

04

LARGE DEALS

NPD Factory

Digital/IoT

Vendor Consolidation

Upscaling/Managed Services

Service Provider Video

Major

US Off-Road Vehicle OEM

Renewable Energy

company

Japanese Auto OEM

Global Semcon Major

Global O&G Major

European Avionics Co.

Global Network

Major

Global Industrial &

Aero Equip. Co.

Service Provider

Video

European Chemical Co. Global CPG Co.

19

Illustrative


Key Multi-million, Multi-Vertical wins in FY18 and FY19

NORTH AMERICA

EUROPE

02

ROW

Smart Manufacturing

AI For Data Extraction

Next-Gen Connectivity Platform

Multi-year 5G Development

Global Strategic Engg. Supplier

Regulatory Compliance & Certification

Strategic Product Development

Design Center for New product lines

Digitalization for Engineering Programs

AI for Plant Operations

Greenfield Plant Engineering

c

c

c

c

20

Illustrative


We have a marquee list of clients today … 03

7 of Top 10Transportation R&D spenders

7 of Top 10Industrial and Process

R&D spenders

8 of Top 10Hi-Tech R&D

spenders

3 of Top 5Medical R&D

Spenders

51 OF TOP 100R&D SPENDERS

21


309

44%

107

187

27%15%

7

1%

91

13%NA

Europe

Asia

ROW

Japan

Numbers: R&D Spend of Top 1000 R&D Spending Companies% are Regional share

And will continue to pursue Top Spenders for Sustainable Growth

$701 BTotal Spend of Top 1000 R&D Spenders

We are Selling to the Top Spenders in Every Geo

03

22

$75 BR&D Spend of LTTS T30 Accounts


Giving us a Healthy and Growing Pipeline 03

PIPELINE BY VERTICAL SEGMENT PIPELINE BY GEOGRAPHY

Transportation, 33%

Industrial & Medical,

31%

PE, 13%

Hi-Tech, 23%

NA, 70%

EU, 19%

ROW, 11%

Qualified Pipeline: $ 1.046Bn

23


• Mature Market

• Verticalized Sales

• Proximity Centers

• Local SME & Freshers Hiring

• Regional Product Cluster• Cross Region Plant Cluster• Proximity Centers for Auto• Security Center in Israel• Selective domain recruitment

• India: Differentiated Captives strategy

• Japan: Verticalized Sales• Emerging Geo Focus

Geo Specific Growth Approach

Mature Verticals Mature Verticals

04

We have Selected, Coached and Deployed the Right Business leadership in each Geography

Mature Verticals Developing Developing

NORTH AMERICA EUROPE & ISRAEL ROW

Israel

Transportation IndustrialProducts

Medical Hi-Tech

Media & Ent. Process Ind.

Bu

sin

ess

Lead

ers

24SME AutoSME

AutoSME

Infotainment

Auto Center Head

SME Digital

SMEMedical

VLSI HeadCenter Head,

IsraelUS Centers

Head

SMEs

&O

ps

Lead

ers

Nordics

Product Cluster Plant Cluster


License Fee

Support & Maintenance AMC

Apps development

Adjacent projects

Accelerators / Frameworks

New Use-case development

Patent generation

Platform Improvement Opportunity

Revenue Streams


▪ Creating multi-pronged revenue streams on the back of a Solution sell▪ Enhance Solution framework with real-world inputs

A

B

C

D

A

B

C

D Feature enhancement

Strategic Partnerships

LTTS Solutions

05

25



LTTS Offers Solutions across Industry Verticals

Digital Cockpit

In Wheel Drive

Autonomous Car Middleware

Active Safety

Transportation

i-BEMS Digital Twin

Integrated m-Care

Imaging

Industrial & Medical

5GApp Dev Frameworks

Over The Top Solution

Home Gateways

Hi-Tech

Smart Manufacturing

Line OEED

Industrial IoTDigital Asset Management

Process Industry

05

26


Look At Business With An Investor’s Lens

Better Predictability & Visibility

Increase Sales Productivity

Increase Deal Profitability3

2

1

06

▪ Front loaded CRM guidance for Delivery to plan better

▪ Reduce Sales Costs/deal▪ Increase need based SME

support

▪ Explore innovative commercial models▪ Calendarized Rate Increases

Business Repeatability4▪ Testing and Sustenance in a Managed

Factory Model▪ Continue Movement from Projects to

Engagements

Improve Offshore Ratio5

▪ Negotiate contracts with optimal Offshore presence

27


Our Mantra for the $1Bn Goal…

Thank You

Documents

Profitable, Sustainable & Inclusive Growth · 2018-08-31 · “Profitable, Sustainable & Inclusive Growth” to our illion Dollar Goal 15 GROWTH IMPACT % 8% - Expand in T30 5% -