Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Investor Presentation (February 2009)
17 slides from Tata Consultancy Services's investor presentation, February 2009
Slide 1: Tata Consultancy Services Investor Relations
TATA Consultancy y Services Investor Relations February 2009
Slide 2: Forward Looking Statement
Investor Relations Forward Looking Statement Certain statements in this release concerning our future prospects are forward-looking statements. Forward- looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market exp
Slide 3: Tata Consultancy Services Overview
Tata Consultancy Services Overview • The Leading Indian IT Services Company – Pioneered the Indian IT Services Industry – $5.7 billion Revenue in FY2008 – Employer of Choice • Part of the Tata Group – Management Excellence & Integrity – Leadership with Trust Investor Relations -2- PRESENTATION
Slide 4: Investment Highlights: Uniquely Positioned for Long-Term Growth
Investment Highlights Uniquely Positioned for Long-Term Growth • Business model positions TCS for strong growth – Broad diversification • Geographies • Industry verticals • Service lines – Key account focus – Non-linear growth models • Strong foundation – Innovation: essential catalyst for growth –
Slide 5: Investment Highlights: Strong Labor Pool
Investment Highlights Strong Labor Pool • Lowest attrition in IT: 11.2% LTM*; 11 9% including BPO 11.9% BPO* 130,343 • Largest IT employer in India 111,407 3,730 3,709 Number of Associates 89 419 89,419 126 613 126,613 107,698 3,837 66,480 85,582 45,714 3,648 33,774 62,832 , 27 536 27,536 4 722 4,72
Slide 6: Strategy to Drive Long Term Sustained Growth
Key Themes Strategy to Drive Long Term Sustained Growth 9 Key Account Focus 9 Geographical Diversification: New Growth Markets 9 New Initiatives incl non-linear growth models Investor Relations -5- PRESENTATION
Slide 7: Key Account Focus
Key Themes Key Account Focus • Transformation partnership: Beyond traditional outsourcing • Integrated Full Services Play & Global Network Delivery Model • Long-term g Commitment reflecting g TCS Maturity y & Leadership p • Multiple Engagement Models Improved Penetration Yielding Competitive Advanta
Slide 8: Key Account Focus: Full Services Adopted by Clients
Key Themes Key Account Focus: Full Services Adopted by Clients 3.2% 3 2% 5.8% Application Development & Maint. 2.5% 49.0% Business Intelligence 8.3% 6.3% Enterprise Solutions 4 2% 4.2% Assurance Services Engineering & Industrial Services 12.6% Infrastructure Services Gl b l Consulting Global C lti 8
Slide 9: Geographical Diversification – New Growth Markets
Key Themes Geographical Diversification – New Growth Markets • Global Support for Global Customers • Compete for Significant Local projects: Strong need for world- class IT support • Regional & Global Support for National Champions 41% growth in FY 2008 to $1.2 billion Investor Relations -8- PRESENT
Slide 10: Geographical Diversification
Key Themes Geographical Diversification • 143 Offices in 43 countries • 93 Solution Centres in 17 countries Europe 22 2 UK & Ireland N. America 9 1 24 4 India 54 72 APAC ME & Africa 14 3 7 3 Iberoamerica 13 8 Sales Office Solution Centres Diversification provides protection from a slowdown *As on 31
Slide 11: Geographical Diversification
Key Themes Geographical Diversification 6 8% 6.8% 5.0% 1.7% N th America North A i 10.7% 52.2% Ibero America UK Continental Europe India 18 5% 18.5% Asia Pacific 5.1% MEA Di Diversification ifi ti provides id protection t ti ffrom a slowdown l d As on 31st December 2008 Investor Relations - 10 - PRE
Slide 12: New Initiatives
Key Themes New Initiatives • TCS Financial Solutions – End-to-end universal banking and insurance products and solutions • Platform BPO – Building vertical as well as horizontal (HR, F&A) platforms • Small & medium business platform – Launched in India - currently in investment mode • Acquisition of
Slide 13: Financial Highlights
Tata Consultancy y Services Financial Highlights
Slide 14: 3Q 2009 Financial Highlights
3Q 2009 Financial Highlights US GAAP Rs Million Key metrics FY08 FY07 YoY Q309 Q209 QoQ Q308 YoY Revenue 228,614 186,332 22.70% 72,770 69,534 4.65% 58,637 24.10% Gross Profit 102 420 82,206 102,420 82 206 24 60% 32,466 24.60% 32 466 31 782 31,782 2 15% 2.15% 26 275 26,275 23 56% 23.56% Gross Margin
Slide 15: Outlook for the near future
Outlook for the near future Focus on Operational Excellence to Maximize Profitability • Utilization Rate Management – Maintain utilization rate within a narrow band of 78% - 80% • Offshore Leverage – Move toward 45% • SG&A Cost Management – Comprehensive cost containment programs • Employee Cost Con
Slide 16: In Summary…
Tata Consultancy Services In Summary… • Key strategies are driving sustainable long term growth – Keyy account focus – Geographical diversification: new growth markets – Non-linear growth models • In the short term, focused on streamlining operations – Utilization – Offshore Shift – SG&A C Costt M M
Slide 17: Thank You
TATA CONSULTANCY SERVICES LI ZAN LIZA LU ZAN UI ZAN LI ZAN ZANE ZAS LI ZAN LU ZANT ZAN LU ZAN LI ZAN LI ZAS LIZAA LI ZAS UI ZANL ZAN LI ZAN UT ZAN LI ZAS LI ZANT IZA UZAN ZAZA LZAN LIZZ ZAZA LZ LZ LN ZAZA ZAZA LIZZ LIZ UZ UZ ZN ZN ZN AZANIA ZAZA ZANT ZZ IYANNTVANNTY/NTVANNTYANUTV ANT /NGTV ANG NNTP
Tata Consultancy Services — Investor Presentation (February 2009) on 6ix