TCS Investor Relations Presentation Q1 15

8/10/2019 TCS Investor Relations Presentation Q1 15

1/20

1

Copyright 2013 Tata Consultancy Services Limited

Tata Consultancy Services

Investor Relations

July 2014


2/20


3/20

3


Started in 1968, TCS is an IT services, consultingand business

solutionscompany, offering transformationaland outsourcingservices to global enterprises

FY 2014 (ending March) revenueUS$ 13.44 billion

Employer of Choice, No. of Employees over 305,431

Global Presence: 224offices in 46 countries

First and Largest:

Software Exporter from India

Software R&D center in India

Part of the Tata Group (FY 2013 Rev: $97 Bn), known for its values,integrity and management excellence


4/20

4

The Journey so far

Industry-leading top-line growth with superior profitability

and higher-than-benchmark share performancejudicious usage of cash


5/20

5

Headroom for Future Growth

The worldwide market for IT

Services is growing faster Emergence of new

technologies

Rising technology intensity ofbusiness across industries

Catch-up spend in laggingverticals and regions

Greater propensity to outsource

Shorter shelf-life of technology

Greater need for variablizing

costs

Global sourcing has becomemainstream

TCS market share of ~1.4%,leaves plenty of headroom forfuture growth

Source: Gartner

Worldwide spend on IT Services Outsourcing


6/20

6

Long Term Growth: Key Enablers

Positioning for a long term growth

1. StrongFoundation

2. BroadDiversification

3. Elements ofStrategy


7/20

7


Focus on ExecutionDelivery Excellence

InnovationEssential Catalyst for Growth

Talent ManagementStrong Set of Skills

Strong Foundation Broad Diversification Elements of Strategy


8/20

8

Long-term Growth: Key Enablers

a. Revenue Spread

Across Markets



9/20

9


b. Presence

Across

Industries



10/20

10


c. Offerings

Across

Services


* Includes Business Intelligence


11/20


12/20

12


1. Key Client Focus

Guided by Customer Relevancy,our verticalized, client-centricorganization has delivered

Agility & Entrepreneurial energy

Improved customer intimacy

Superior client metrics


LTM RevenueContribution *

No. of Clients

1Q15 4Q14 1Q14

$ 1 mn+ 724 714 657

$ 5 mn+ 359 354 309

$ 10 mn+ 244 231 216

$ 20 mn+ 144 136 124$ 50 mn+ 58 53 53

$ 100 mn+ 24 24 19

* Includes India Business

The number of Large Clients has grown as also the per client Revenue Realization

*


13/20

13


2. Integrated Full Services

Mature full services capabilityallows better up/cross-selling

Expands our footprint beyond

traditional IT services

Fully leverages our model todeliver even greater businessvalue to the client

Keeps us relevant through everyphase of the clients businesscycle

Deepens relationships andincreases stickiness


BPSIT Solutions

& Services

InfrastructureServices


14/20

14



3. Global Network Delivery Model GNDMTM

N.America

Latin America

APACIndia

EuropeUK

MEA

10

9

3107

4 8

8

USA

China

Hungary 149 Solution Centers in 25 countries

Mexico

Brazil

Uruguay

Global Support for GlobalCustomers

Competing for significantLocal projects: Strong needfor world-class IT support


15/20

15


4. Strategic Acquisitions

Enter new geographies / market segments Nov 05: Comicrom (Chile)

Apr 13:Alti (France) Apr 14: IT Frontier Corporation (Japan)

Gain domain / technology expertise Oct 05: Pearl Assurance (UK)

Oct 08: Citigroup Global Services

Acquire Intellectual property Oct 05: FNS (Australia)



16/20

16


5. Non-Linear Business Models

TCS Financial Solutions: End-to-end universal banking andinsurance products and solutions

Platform BPO: Bundling BPO with a common platform sharedacross clientele

Vertical: Insurance, Banking

Horizontal: HRO, F&A, Procurement, Analytics

Small & Medium Business Platform: Launched in India in Feb 2011,progressing satisfactorily



17/20


Financial Highlights


18/20

18

1Q 2015 Financial Highlights

Key metrics FY14 FY13 YoY 1Q15 4Q14 QoQ 1Q14 YoY

Revenue $13,442 $11,568 16.2% $3,694 $3,503 5.5% $3,165 16.7%

Gross Profit $6,363 $5,339 19.2% $1,649 $1,640 0.6% $1,464 12.7%

Gross Margin 47.33% 46.15% 44.63% 46.81% 46.25%

Operating Income $3,906 $3,124 25.0% $972 $1,021 -4.8% $856 13.6%

Operating Margin 29.06% 27.00% 26.30% 29.15% 27.03%

Net Income $3,139 $2,554 22.9% $845 $861 -1.8% $701 20.5%

Net Margin 23.35% 22.08% 22.88% 24.58% 22.16%

EPS in $ $1.60 $1.31 22.8% $0.43 $0.44 -1.8% $0.36 20.5%

Revenue INR mn 818,094 629,895 29.9% 221,110 215,511 2.6% 179,871 22.9%

EPS in 97.6 71.0 37.4% 25.8 27.0 -4.5% 20.4 26.9%

IFRS USD Mil l io n


19/20

19

In Summary

There is plenty of headroom for future growth

Global investments in technology continue to grow

Rate of change of technology is accelerating, forcing more outsourcing

Our market share is minuscule, but gaining

TCS strategies for longer-term growth have steadily expanded the addressable market at a macro-level

wallet-share at a client level

A verticalized, client-centric organization structure has

Enabled leaner, more agile, entrepreneurial operations

Facilitated the building of domain expertise and industry-specific IP

Decentralized the margin responsibility and made it more stable andsustainable


20/20

IT ServicesBusiness Solutions

Consulting

Thank You

Documents

TCS Investor Relations Presentation Q1 15