TCS IR Presentation Q2 FY14

8/13/2019 TCS IR Presentation Q2 FY14

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Tata Consultancy ServicesInvestor Relations

October 2013


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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 couldcause actual results to differ materially from market expectations. These risks and uncertaintiesinclude, but are not limited to our ability to manage growth, intense competition among Indian andoverseas IT services companies, various factors which may affect our cost advantage, such as wageincreases or an appreciating Rupee, our ability to attract and retain highly skilled professionals, timeand cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on

cross-border movement of skilled personnel, our ability to manage our international operations,reduced demand for technology in our key focus areas, disruptions in telecommunication networks,our ability to successfully complete and integrate potential acquisitions, liability for damages on ourservice contracts, the success of the companies in which TCS has made strategic investments,withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital oracquiring companies outside India, unauthorized use of our intellectual property and generaleconomic conditions affecting our industry. TCS may, from time to time, make additional written andoral forward-looking statements, including our reports to shareholders. These forward-lookingstatements represent only the Companys current intentions, beliefs or expectations, and any

forward-looking statement speaks only as of the date on which it was made. The Companyassumes no obligation to revise or update any forward-looking statements.


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Tata Consultancy Services

Started in 1968, TCS is an IT services, consultingand businesssolutionscompany, offering transformationaland outsourcingservices to global enterprises

FY 2013 (ending March) revenueUS$ 11.57 billion

Employer of Choice, No. of Employees over 285,250

Global Presence: 199offices in 44 countries

First and Largest:

Software Exporter from India

Software R&D center in India

Part of the Tata Group (FY 2012 Rev: $100 Bn), known for its values,integrity and management excellence


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The Journey so far

Industry-leading top-line growth with superior profitability

and higher-than-benchmark share performancejudicious usage of cash

* FY05 to FY13


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Headroom for Future Growth

The worldwide market for ITServices is growing

Technology intensity is going upacross verticals

Lagging verticals and regionsare catching up

Emergence of newtechnologies

The proportion of outsourced ITServices is growing

Shorter shelf-life of technology

Greater need for variablizingcosts

Global sourcing has become amainstream option

TCS market share of ~1.3%,leaves plenty of headroom forfuture growth

Source: Gartner

Worldwide spend on IT Services Outsourcing


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Long Term Growth: Key Enablers

Positioning for a long term growth

1. StrongFoundation

2. BroadDiversification

3. Elements ofStrategy


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Focus on ExecutionDelivery Excellence

InnovationEssential Catalyst for Growth

Talent ManagementStrong Set of Skills

Strong Foundation Broad Diversification Elements of Strategy


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Long-term Growth: Key Enablers

a. Revenue Spread

Across Markets



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b. Presence

Across

Industries



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c. Offerings

Across

Services


* Includes Business Intelligence


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1. Key Client Focus

2. Integrated Full Services

3. Global Network Delivery Model GNDMTM

4. Strategic Acquisitions

5. Non Linear Business Models



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1. Key Client Focus

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

Agility & Entrepreneurial energy

Improved customer intimacy

Superior client metrics


LTM Revenue

Contribution

No. of Clients

2Q14* 1Q14* 2Q13

$ 1 mn+ 687 657 538

$ 5 mn+ 318 309 269

$ 10 mn+ 224 216 182

$ 20 mn+ 125 124 108$ 50 mn+ 53 53 45

$ 100 mn+ 22 19 14* Includes India Business

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


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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

BPS


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3. Global Network Delivery Model GNDMTM

N.America

Latin America

APACIndia

EuropeUK

MEA

7

9

292

1 5

8

USA

China

Hungary 124 Solution Centers in 21 countries

Mexico

Brazil

Uruguay

Global Support for GlobalCustomers

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


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4. Strategic Acquisitions

Enter new geographies / market segments

Gain domain / technology expertise

Acquire Intellectual property



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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



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2Q 2014 Financial Highlights

Key metrics FY13 FY12 YoY 2Q14 1Q14 QoQ 2Q13 YoY

Revenue $11,568 $10,171 13.7% $3,337 $3,165 5.4% $2,853 17.0%

Gross Profit $5,339 $4,661 14.5% $1,602 $1,464 9.4% $1,293 23.9%

Gross Margin 46.15% 45.83% 48.01% 46.26% 45.32%

Operating Income $3,123 $2,806 11.3% $1,007 $856 17.6% $763 32.0%

Operating Margin 27.00% 27.59% 30.18% 27.05% 26.74%

Net Income $2,561 $2,214 15.7% $748 $668 12.0% $643 16.3%

Net Margin 22.14% 21.77% 22.42% 21.11% 22.54%

Revenue INR mn 629,895 488,938 28.8% 209,772 179,871 16.6% 156,208 34.3%

IFRS USD Mil l io n


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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


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Thank You

Documents

TCS IR Presentation Q2 FY14