Tata Consultancy Services Limited · NSE:TCS

Tata Consultancy Services — Investor Presentation (January 2006)

46 slides from Tata Consultancy Services's investor presentation, January 2006

  1. Slide 1: TATA Consultancy Services Investors Presentation

    TATA Consultancy Services Investors Presentation January 2006 © Tata Consultancy Services Ltd. 1

  2. Slide 2: Disclaimer

    Disclaimer Certain statements in this release concerning our future growth prospects are forward- looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rel

  3. Slide 3: Overview

    Overview ƒ Established in 1968 ƒ Over 59,000 Associates ƒ FY 2004 revenues of USD 1.56 billion, FY 2005 revenue of USD 2.24 bn ƒ First Company in the world to receive an integrated Enterprise wide CMMI Level 5 and PCMM Level 5 assessment ƒ Global presence – Operations in 47 countries, 160 offices ac

  4. Slide 4: Revenue

    Revenue TCS is the first IT company to cross USD 2Bn in revenue 2.5 2 1.5 USD Billions 1 0.5 0 Revenue USD Bn FY 01 FY 02 FY 03 FY 04 FY 05 4

  5. Slide 5: Lineage: The Tata Group

    Lineage: The Tata Group ƒ India’s Largest Conglomerate ƒ Represents Excellence & Integrity ƒ Trusteeship Concept ƒ Pioneering Spirit ƒ Leaders in many Businesses ƒ Group turnover in 2004-2005 of USD 17.6 billion (As on June 2005) ƒ Over 220k employees, 2 million shareholders ƒ Total Market Cap for T

  6. Slide 6: Businesses We Serve

    Businesses We Serve Banking Insurance Government Telecom Transportation TCS Manufacturing Energy and Utilities Financial Services Life Sciences and Healthcare Media and Entertainment Retail and Consumer Goods Unmatched Breadth and Depth in Business Space 6

  7. Slide 7: Full Services Play: End-to-End IT Consulting and Services Portfolio

    Full Services Play: End-to-End IT Consulting and Services Portfolio Engineering & Asset Based Industrial Services Offerings Global Consulting Engineering Products Business & Process Embedded S/W Consulting Product Based R&D Services Services IT Strategy Consulting IT Operations Consulting Security C

  8. Slide 8: Our Products

    Our Products Manufacturing Utilities Life Science and HealthCare ƒ CemPac ƒ Tata HMS ƒ Factore ƒ En’rgise ƒ TATA Bio-Suite ƒ PowerPac G ƒ TATA CTMS ƒ EntICE ƒ Smart Box Tools Accounting ƒ ƒ MasterCraft Assent TCS ƒ ƒ E.X. Next Generation 1.5 E. X. Personal Investment Manager ƒ Consult ƒ ƒ Infrex ƒ E

  9. Slide 9: Truly Global Presence

    Truly Global Presence 160 Offices in 34 countries 33 Delivery Centres in 10 countries Europe UK & Ireland N. America 18 1 8 1 51 10 India 59 15 ME & Africa Iberoamerica APAC 4 - 13 3 India Others Americas 7 3 6% 59% 12% Europe 23% Global Sales Office Revenue Mix by Geography(1) Global Delivery Centr

  10. Slide 10: Multi-Dimensional Growth Strategy

    Multi-Dimensional Growth Strategy ƒ Leverage global presence to win large deals ƒ Partnerships & alliance approach for project wins ƒ Build and leverage assets to penetrate more customers ƒ Leverage Indian experience in global engagements ƒ Expand into new geographies ƒ Focus on emerging growth engi

  11. Slide 11: Update on Recent Announcements

    TCS Corporate Office Update on Recent Announcements © Tata Consultancy Services Ltd. 11

  12. Slide 12: Pearl Deal – Highlights

    Pearl Deal – Highlights ƒ Largest IT/BPO deal for the Indian IT Industry ƒ £486 Million (US $ 850 million) to TCS over 12 years ƒ The deal is a significant step forward in realizing TCS’ strategy of platform-based BPO ƒ TCS is preferred partner for Pearl Group ƒ With this deal TCS expects to build s

  13. Slide 13: Pearl Deal – Financials

    Pearl Deal – Financials ƒ Large and long-term revenue potential: Overall revenue of £486 Million; Over £50 Million in the first 12 months declining every year over the deal term as policies run-off. ƒ Revenues: The revenues to start to flow in later part of Q4. The Revenue expected in Q4 FY ‘06 is m

  14. Slide 14: FNS Acquisition – Strategy

    FNS Acquisition – Strategy ƒ TCS has a very strong BFSI practice with it contributing to 42.3% of TCS Revenues ƒ TCS has an array of assets in the area of BFSI like Quartz™, NCS™, eClearSettle™ and IIMS™. TCS has also partnered with other product companies like FNS ƒ FNS was a privately held Austral

  15. Slide 15: FNS Acquisition – The FNS Advantage

    FNS Acquisition – The FNS Advantage ƒ Significant and sustainable decrease in total cost of ownership : 15 to 50 % reduction in transaction costs. The modular structure and open architecture makes it scalable and protects investment ƒ Customer-centricity: Consistent customer experience across channe

  16. Slide 16: FNS Acquisition – Deal Summary

    FNS Acquisition – Deal Summary ƒ TCS has acquired 100% of the Company for an Enterprise Value of US$25.5 million for the company against a NAV of zero. ƒ This transaction was structured as a Share Purchase which ensures smooth transition. ƒ Company has written off all its Product Development expense

  17. Slide 17: Comicrom Acquisition

    Comicrom Acquisition ƒ TCS has bought 100% equity in Comicrom for US$23 million ƒ Comicrom is the market leader in the Banking and Pensions Business Process Outsourcing business in Chile. Currently, Comicrom: ƒ has a 57% market share of the check processing business in Chile and counts more than 70%

  18. Slide 18: C-Edge Technologies – JV with SBI

    C-Edge Technologies – JV with SBI ƒ TCS is forming a 51:49 joint venture with State Bank of India (SBI), to be known as C-Edge Technologies Limited ƒ SBI is India’s largest commercial bank, and along with its seven associates has more than 13,800 branches – the largest branch network for any bank in

  19. Slide 19: Results for Quarter III FY 2005-06

    TCS Sholinganallur, Sholinganallur, Chennai Results for Quarter III FY 2005-06 © Tata Consultancy Services Ltd. 19

  20. Slide 20: Highlights for Q3 2005-06

    Highlights for Q3 2005-06 US GAAP Rs Millions Q-o-Q Revenues International Revenues 28,982 12.39% Indian Revenues 3,664 -1.66% Total Revenues 32,646 10.61% Operating Income 8,815 10.17% Net Income 7,319 8.69% EPS – Rs 15.24 for Q3, up from Rs. 14.03 for Q2 * Added 83 clients this quarter * Net Addit

  21. Slide 21: US GAAP Income Statement - Quarterly

    US GAAP Income Statement - Quarterly Consolidated US GAAP USD Million Rs Million % of Revenue Q3 FY06 Q3 FY06 Q2 FY06 Q3 FY05 Q3 FY06 Q2 FY06 Q3 FY05 Revenue 724.83 32,645.74 29,513.49 25,784.35 100.00 100.00 100.00 Cost of revenue 390.04 17,567.06 15,765.49 13,564.95 53.81 53.42 52.61 Gross margin

  22. Slide 22: COR – SG&A Details - Quarterly

    COR – SG&A Details - Quarterly Rs. Millions % of Revenue COR Q3 FY06 Q2 FY06 Q3 FY05 Q3 FY06 Q2 FY06 Q3 FY05 Employee Cost 14,291.19 12,338.05 10,963.49 43.78 41.80 42.52 Equipment & Software 1,241.19 1,771.67 1,162.91 3.80 6.00 4.51 Depreciation 496.05 414.94 289.12 1.52 1.41 1.12 Travel 572.01 431

  23. Slide 23: US GAAP Balance Sheet

    US GAAP Balance Sheet Consolidated US GAAP 31-December-2005 31-March-2005 Rs Million % Rs Million % Source of Funds Shareholders Funds 46,271.46 69.93 31,977.31 65.38 Short term borrowings 1,024.65 1.55 1,927.80 3.94 Current liabilities 16,824.47 25.43 13,196.49 26.98 Minority Interest 1,457.09 2.20

  24. Slide 24: Operational Performance

    CMC - Hyderabad Operational Performance © Tata Consultancy Services Ltd. 24

  25. Slide 25: Growth by Market

    Growth by Market 6.1% ƒ TCS continues its strong growth 11.2% momentum across geographies Americas ƒ In Europe, the company experienced Europe strong growth with customers acquired in the earlier quarters India 23.2% ƒ In North America, the company had 59.5% Others multi-million dollar wins across d

  26. Slide 26: Growth by Domain

    Growth by Domain 9.1% ƒ The ramp-ups are in progress for a 2.3% 3.1% BFSI number of customers in Banking, 6.3% 42.3% Manufacturing Insurance, Retail and Utilities. Telecom 3.9% Life Sciences & Healthcare ƒ EIS as well as Enterprise Solutions Retail & Distribution are contributing growth to Transport

  27. Slide 27: Growth by Service Line

    Growth by Service Line 2.5% 2.7% ƒ TCS’ Enterprise Solutions practice drives growth as well as new client 23.6% wins. ƒ Traction and growth for all new service offerings continue. EIS (12), 71.2% BPO(4), Infrastructure (12) and Assurance Services (8) have all registered good client wins. Application

  28. Slide 28: Operational Parameters

    Operational Parameters ƒ The shift to offshore from large Revenue % Q3 FY 2006 Q2 FY 2006 clients is beginning to translate into better offshore leverage Delivery Location* Onsite 61.40 62.90 ƒ TCS continues to maintain a near Offshore 38.60 37.10 even split between Time and Material and Turnkey pro

  29. Slide 29: Client Parameters

    Client Parameters Q3 FY 2006 Q2 FY 2006 Clients Contribution * Revenue % Top 1 6.40 5.80 Top 5 17.50 17.10 Top 10 27.70 28.00 US$ 1 mln Clients 229 233 US$ 5 mln Clients 87 84 US$ 10 mln Clients 53 50 US$ 20 mln Clients 28 29 US$ 50 mln Clients 5 5 * Last Twelve Months The revenues from GE contribut

  30. Slide 30: Client Acquisition and Expansion

    Client Acquisition and Expansion Particulars Q3 FY 2006 Q2 FY 2006 Active Clients 677 624 New Clients 83 74 Revenue % from Repeat Business 94.80 96.50 Revenue % from New Business 5.20 3.50 30

  31. Slide 31: Profiles of 'Select' Growth Engines

    TCS Thiruvananthapuram Profiles of ‘Select’ Growth Engines © Tata Consultancy Services Ltd. 31

  32. Slide 32: BPO (1 of 2)

    BPO (1 of 2) ƒ TCS strengthened its position in the BPO space by making strategic moves during the quarter. 1. TCS strongly established itself in the “Life Insurance & Pensions” BPO using its IIMS™ platform. It won an engagement with the Pearl Group in the UK for US $847M during the quarter. • The r

  33. Slide 33: BPO (2 of 2)

    BPO (2 of 2) ƒ Key Engagements y A leading US retail store chain has selected TCS for providing BPO services across multiple business processes including F&A, Merchandising and Customer care. y Ramp-ups have been planned with two existing customers on transaction processing. ƒ Added three (3) new cl

  34. Slide 34: BFSI Product Solutions (1 of 2)

    BFSI Product Solutions (1 of 2) ƒ We enhanced our BFS asset portfolio with the acquisition of FNS. Subsequent to the acquisition, we have secured three significant wins: y A large public sector bank in India y A large private sector bank in China y A large private sector bank in Russia ƒ Quartz™ was

  35. Slide 35: BFSI Product Solutions (2 of 2)

    BFSI Product Solutions (2 of 2) ƒ TCS’ custody solution (NCS™) was selected by Depository Trust Clearing Corporation (DTCC) in the USA for their corporate actions platform ƒ The custody solution went live for a leading Australian Bank. The same solution also went live with another leading European b

  36. Slide 36: IT Infrastructure Services

    IT Infrastructure Services ƒ Launched TCS Global Infrastructure Command Center to provide clients centralized single-window monitoring and management of their servers, desktop and network components. ƒ ITIS practice continues to attract significant traction in the market, adding 12 new clients in th

  37. Slide 37: Engineering & Industrial Services

    Engineering & Industrial Services ƒ EIS services witnessed strong demand with the addition of 12 new clients in Q3 with a total of 315 active clients. ƒ TCS continues to grow its dedicated team of EIS consultants and has over 3400 employees in the EIS practice ƒ TCS has partnered with the world's le

  38. Slide 38: Assurance Services

    Assurance Services ƒ Demand for assurance services continues to be strong from existing and new clients. With the addition of 8 new clients in this quarter TCS now provides assurance services to 72 clients. ƒ The “Testing Center of Excellence” has been very well received by our clients and currently

  39. Slide 39: Human Resources

    TCS TRDDC, Pune Human Resources © Tata Consultancy Services Ltd. 39

  40. Slide 40: Total Associates: 59,384

    Total Associates : 59,384 ƒ No. of TCS Associates in India: 50,336 (including 2,218 in Corporate Functions) ƒ No. of Associates in Overseas Subsidiaries and Branches: 3,646. ƒ No. of Associates with Indian subsidiaries (CMC, AFS, ASDC, BTS and WTI): 5,402. 70,000 60,000 5,402 50,000 5,423 5,029 40,0

  41. Slide 41: Gross Addition of 7,348 Associates & Net Addition of 6,076 Associates

    Gross Addition of 7,348 Associates & Net Addition of 6,076 Associates ƒ Additions through recruitment: 5,943 ƒ Additions through acquisitions: 1,405 ƒ 3,088 Trainees and 2,358 Experienced Professionals added ƒ 1,902 Associates added in Overseas Subsidiaries and Overseas Branches ƒ Improved Utilizati

  42. Slide 42: Global & Diversified Workforce

    Global & Diversified Workforce 6.6% of workforce is international ƒ 6.6 % : Percentage of International Associates ƒ 53: Number of Nationalities of Associates ƒ 27: Number of Nationalities of Interns ƒ 1,676: Number of Associates in GDCs (1,370 in Q2) ƒ 23%: Percentage of women associates ƒ 51%: Num

  43. Slide 43: Attrition

    Attrition ƒ Attrition rate for the Last Twelve Months (LTM) was 8.7% 8.8 8.7 8.7 8.7 8.6 value In Percentage 8.5 8.4 8.3 TCS 8.2 8.2 8.1 8.0 7.9 Q1-06 Q2-06 Q3-06 43

  44. Slide 44: International Recognition

    International Recognition ƒ UK 2005 y Top Ten ICT Employers y Investor in People ƒ Hungary 2005 – Hewitt Best Employers Survey 2005 y Ranked 16th in the large company category ƒ American Society for Training and Development 2005 y Ranked 9th in ASTD Best Awards program 44

  45. Slide 45: Vision, Mission and Values

    Vision, Mission and Values Vision Global Top 10 by 2010 Mission To help Customers achieve their business objectives, by providing Innovative, Best-in-class Consulting, IT solutions and services. We shall make it a joy for all stakeholders to work with us. Values Integrity, Leading change, Excellence

  46. Slide 46: Discussions

    Discussions For further information please contact: Kishore Belai Investor Relations [email protected] 46

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