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Investor Presentation
June 2020
| Copyright © 2018 Tata Consultancy Services Limited
Forward Looking Statements
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 expectations.
These risks and uncertainties include, but are not limited to our ability to, manage growth,
intense competition among global IT services companies, various factors which may affect
our profitability, such as wage increases or an appreciating Rupee, our ability to attract and
retain highly skilled professionals, time and 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 our
service 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 or acquiring companies outside India, unauthorized use of our
intellectual property, pandemics, natural disasters and general economic conditions
affecting our industry. TCS may, from time to time, make additional written and oral
forward-looking statements, including our reports to shareholders. These forward-looking
statements represent only the Company’s current intentions, beliefs or expectations, and
any forward-looking statement speaks only as of the date on which it was made. The
Company assumes no obligation to revise or update any forward-looking statements.
2
$22.0 BN Tata Consultancy Services
Revenue FY 20
24.6%
We Are…
Operating Margin
Among the Top 10
Global IT Service Providers
A global IT services,
448,000+ consulting and business
Employees
144 nationalities solutions leader,
187 Solution Centers
partnering with the world’s
in 19 countries leading businesses in their
162,000+ transformational journeys
Women employees
$90 BN
Market cap
12.1%
Lowest attrition in IT
Services in entire industry
3
The Fastest Growing Brand In IT Services
Ranked the fastest growing Ranked Global Honored as one of the Ranked among the Named India’s Overall
brand of the decade and Top Employer by the Fortune Best Big Top Regarded Companies Most Outstanding
amongst the Top 3 brands Top Employers’ Institute Companies to Work in Forbes’ World’s Best Company in Asiamoney’s
in IT Services globally across 11 countries For™ Regarded Companies 2019 Poll
Fastest growing among
them UK MEA
North America $3,486 Mn $463 Mn
$11,104 Mn 10.4% 6.5%
4.3% Asia Pacific
Europe $2,060 Mn
$3,250 Mn 6.2%
14.6%
India
$1,261 Mn
6.8%
Latin America
$408 Mn
5.8%
* FY 2020 Revenue growth figures quoted in constant currency terms
The Journey so far
Industry-leading top-line growth… … with superior profitability
$24k 200
Rev in USD Mn
$18k 150
EPS in ₹
$12k 100
$6k 50
$k 0
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY13
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY14
FY15
FY16
FY17
FY18
FY19
FY20
Judicious usage of cash… …and higher-than-benchmark share performance
2%
13%
TCS
Shareholder payout 1376%
BSE IT
Invested Funds
16%
539%
Capex
69%
Acquisitions
Mar-17
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-18
Mar-19
Mar-20
FY05 to FY20
5
Leading Technology Change
Leading through 50 Years of Technology Change
Cyber Sec, Identity, Blockchain
IoT, Robotics Drones, Cyber-Physical
Security, Privacy
Cypto
Wearables, Bionics
MES, M2M
Industry 4.0
BYOD
Devices Collaboration, Social, Touch
Groupware, Interaction, Design, AR/VR
Apps,
Smartphone
Digital
Cognitive Automation,
RPA AI, Intelligent Agents
Automation Y2K Factory
1970s 1980s 1990s 2000s 2010s
Compute Mainframes, Unix, VAX, AS/400 Windows 95, Linux Virtualization Cloud, Edge, Fog, Mist
Data Grids GPU, FPGA
DBMS, RDBMS
Warehouses Pervasive, Personal
Applications Material Resource Planning BI, Marts,
ERP, HRMS, CRM,
Applications FS, BPS NoSQL
COBOL, Object Oriented Big Data, Analytics,
Development
Client/Server, Data Monetization
Thin Client SaaS
PaaS, BPaaS,
SoA, Agile Products & Platforms
APIs, DevOps
7
Lead in the New Normal with Business 4.0™
PURPOSE – DRIVEN. RESILIENT. ADAPTABLE.
EMBRACE RISK MASS PERSONALIZE
CLOUD INTELLIGENT
LEVERAGE C R E AT E
ECOSYSTEMS E X P O N E N T I A L VA LU E
A U T O M AT E D AGILE
Digital Transformation Offerings
CONSULTING & SERVICES INTEGRATION
Enterprise Agility, M&A / Divestitures, Finance & Shared Services,
CX Front Office Transformation, SCM as a Service, Next Gen Transformation
TCS Interactive Conversational Experiences
Commerce, Channels, Business Platform Content, Care, Concierge,
Marketing, Engagement Solutions Commerce, Colleague
Machine First
Industry Business Delivery Model TM
Enterprise Intelligent Services Cyber Security
IOT Automation Enterprise Services I&AM, GRC, Digital Forensics,
Connected Devices, Industry 4.0, Infra, Application, Process MSS, Cloud / Mobile/ IoT Enterprise Application
Digital & Customer Services
Digital Twin, Smart City,
Experience SAP, Oracle, MS, Salesforce,
Digifleet, Energy Management, Blockchain
Analytics & Insights Operations Microsoft
IP2 Programs (Embark, Design,
Business Analytics, Data Network Scale), Platform Solns
Services Management (Horizntl, Domain)
Cloud Apps, Microsvcs & Datacenter & Future of Work
API Workplace Services Quality Engg & Digital Workplace, ChatBots,
Cloud Infrastructure
Migration, Modernization, Cloud Operations Transformation Collaborative Tools,
Public, TCS Private & Hybrid
Integration SmartQE, CX Assurance, Gamification
Cloud
Big Data, Video
Accruing Benefits of
A European Life Sciences Company A Global Retail Giant
Wanted to create a digital platform that helped them generate Wanted to evolve an integrated omnipresence including Physical and Digital channels to
business around the “smallholder” farming segment make business flexible to constant evolution whilst addressing emerging new markets
TCS created an Intelligent, Agile, Personalization and AI Program
Business Results: Business Results:
550mn 150mn 340k 30mn 25%
Farmers Value traded on Impacted in cost Time
impacted platforms
Stakeholders savings reduction
A Middle-East Retailer A Multinational Automobile Company
Was exploring if they could leverage AI and IoT to create new Energy Was struggling with multi-billion dollar liabilities due to extended exposures from
Management Efficiencies across their channels recalls and 18 - 24 months to complete product recalls, and wanted to be able to
leverage Intelligence to better manage the process
TM
Business Results: Business Results:
$20-40mn 25000t 2x $17.5mn 100% 15%
savings in reduction in Increased brand cost savings Increase in
Safety
5 years CO2 emissions awareness compliance Customer
annually
SatisfactionStrategic Investments
“There are no legacy people, only legacy technologies”
Scalable Reskilling using
the Digital Learning
Analytics and Insights Cloud
Platform
Access: Anytime,
Anyplace,
Any device
Content: Rich & Expanding
Crowd sourced “faculty” Mobility, Digital Marketing IOT & Cyber Security
Delivery: Domain-infused,
Culture focused, Gamified
Infrastructure: Cloud
based, Immersive and
Virtual
335k+ associates trained in Digital | 4.7 Mn learning days
679,805 certifications acquired
12Avail Unmatched Speed To Market
With our thought-leading framework Open Agile Collaborative Workspaces 6,000+
that helps customers adopt Agile at Agile Engagements
scale, and gain concrete business
benefits :
6,000+ 348K+
417K+
Location - Independent AgileTM
Living Agile Agile Agile-trained
Agile-trained
engagements employees
employees
Technique 1,000+
Born AgileTM Agile delivery
Agility DebtTM centres
Service Delivery Maturity
Framework
TCS Customers are reporting spectacular business benefits : “Agile makes you future proof and for any kind
of organization it is easier said than done…..
30% to 50% But the way it has been approached in TCS in
Increase in Speed a very disciplined way, making sure that you
to Market make it step-by-step, moving forward, is really
an absolute joy to see.”
>90% 50% to 70% Arie Van Bennekum,
End User Improvement in Co-author of Agile Manifesto
Satisfaction QualityBringing Certainty of Execution to Future Readiness
TM
TCS loT Bringing Life to Things™
▪ Making enterprises AI ready with MFDM™ ▪ TCS Connected Universe Platform to drive business and
AI workbench operations transformation
▪ 100+ customers on the MFDM™ journey ▪ Industry specific solutions: TCS DigifleetTM, TCS IP2TM
(Intelligent Power Plant), Energy Management system
▪ 110k foundational AI-ML engineers, 15k MFDM™
designers, 100+ MFDM™ architects ▪ IoT academy with 200+ digital courses
▪ 200+ alliance partners - AI stalwarts and ▪ IoT labs in Cincinnati, Tokyo, Chennai for co-creation
emerging start-ups
Location Independent Agile™
3 Models 4 Enablers 5 Principles
▪ TCS DATOM™ - Data and Analytics Target ▪ 6,000+ active agile IT engagements;
Operating Model 40% advanced maturity
▪ TCS DAEzMo™ - Data Estate Modernization ▪ Largest agile ready workforce of 390K; 1,100+ Ninja
coaches; 860+ agile workplacesInvestments in Digital - Products, Platforms & Partnerships
BFSI DevOps 5,216
patent
applications;
Retail Cognitive AI
1,341
granted
Life
Agile Tools
Sciences
22 Institutional awards &
CMI HR professional recognitions
▪ IP Enterprise Trophy by
Smart Procure World IP Organization
Cities to Pay
▪ National IP Award
SMB BlockChain ▪ Asia IP Elite
The Connected
FRAMEWORKS DatOm TCS Decision Fabric
Universe PlatformHelping Customers Scale Their Innovation
Foundational Research
Computing, Physical Systems,
Sciences, New Materials, Sharing of ideas at the
Robotics, Sensing of Machines On-Demand TCS Innovation Forum
Innovation
Industry-Specific Research Early Stage PoCs /PoTs
BFSI: Blockchain, Data Marketplace, Innovation Champions
Analytics, Compliance Monitoring |
Retail: Algorithmic Retail, Price Custom COINTM
Optimization, Immersive Store
Experience | Utilities: Solar value Bespoke Innovation Days
chain, Energy value ecosystem | Life
Sciences: Digital Clinical Trials, Crowd Sourcing Innovation through
DNA Sequencing, Genomics, Hackathons/ Ideathons
Microbiomes, Translational Research
Design Thinking and Agile Innovation
Extended Ecosystem at a Pace PortTM
Emerging technology companies,
alliance partners, accelerators and
academia
1,000 + 1,341/5,216* 30+ 250+ ~250 MN
Researchers Patents Innovation Labs Publications USD investments
* Granted/ AppliedTCS Co-Innovation Network (COIN™)
Startups & Accelerators Alliance Partners
3500+
Startups
300+
50+
EIRs Venture
Capitalists
50+
Academic
Institutions TCS CLIENTS
150+
70+ Alliance Academic Partners
Faculty Partners
TCS
Research & Consultants
30+ Innovation
Industry
Projects
Bodies
c
TCS' start-up program is organic,
highly structured, and currently
one of the largest among services companies
- Mette Ahorlu
Research Director, IDCTCS Pace Ports™ TCS Pace PortsTM are experiential spaces which allow you to experience the transformational power of TCS’ research, innovation and digital prowess come alive under one roof ▪ Summon the best of the start-up ecosystem: TCS COIN Accelerators ▪ Engage with the Best of Academia through: Academic Research Labs ▪ Develop nimble business model to embrace breakthrough technologies: Agile Workspaces ▪ Consume the best of TCS’ Thought Leadership: Digital Libraries ▪ Explore digital drivers for growth and transformation: Innovation Showcases ▪ Watch your Ideas come alive: Rapid Labs
Longer Term Growth Strategy
Customer-centric Strategy: Going Deeper, Casting Wider
Agile AI
Partnership
Accountability Ecosystems
Research & Innovation Superior Business Outcomes
Cloud MFDM
Talent Relationship
Development Focus
Highly Satisfied Customers
Putting the
Customer at
Contextual the centre Full
Knowledge
Stakeholder Enduring Relationships
Coverage
RPA IP Development Data &
Analytics
Time to market
Blockchain IoT
20Going Deeper, Casting Wider: Business Outcomes
Large Client Metrics Rev per US$1 Million Client
US$ 20 Mn+
US$ 50 Mn+
US$ 100 Mn+
240 20.6
162 105 19.5
68
29 49
FY15 FY20 $ Mn FY15 FY20
21Going Deeper, Casting Wider: Financial Outcomes
Revenue per capita ($cc) Net Income per capita ($)
$62,047 $10,318
$48,346 $10, 048
FY15 FY15 – FY20 FY15 FY15 – FY20
22Cash Flow
Cash Conversion Free Cash Flow Free Cash Flow/
OCF to Net Income USD Mn Enterprise Value
109.4% $4,641
5.5%
107.8%
3.9%
$2,983
FY15 FY20 FY15 FY20 FY15 FY20
23Strong Capital Allocation
91% 42% 42% 106% 93% 99%
$4,641 $4,433
$4,233 $4,217 $4,070
$4,090
$3,824
$2,983 $2,929
$2,886
Average Payout
FY15-FY20 YTD: 79%
$1,687
Amt in $ Mn
$1,540
FY15 FY16 FY17 FY18 FY19 FY20
Free Cash Flow Shareholder Payout
Shareholder Payout as % of Free Cash Flow 24Unique, Purpose-Driven
In a free enterprise, the community is not just
another stakeholder in business, but is in fact the
very purpose of its existence.
- J N Tata
1839-1904
For every $1 returned to
shareholders by TCS, $0.47
goes back to the community,
giving TCS a unique,
purpose-driven worldview
25TCS In The Community
Wellness
TCS promotes health and
wellness in all the
communities it works in. We
are title sponsors of leading
Marathons across the globe,
and continuously applying
innovations to healthcare
practices and awareness
STEM Education Skills development
In countries like the UK, North
TCS' Education and Skill
America, LatAm and Australia
Development initiatives cover
facing shortage of tech skills,
the entire life path of students
TCS has devised various
from school to Ph.D. as also
programs and reached over
skilling and adult literacy that
660,000+ students in FY 2019
enables livelihood.
through STEM initiatives to
spark interest in science and
technology
26In Summary: TCS Strategy Driving Differentiated Outcomes
MARKET TRENDS TCS APPROACH OUTCOMES
▪ More and more industries are ▪ Ramping up Research & Innovation, ▪ Industry-defining mega deals
leveraging technology to co-innovation and collaboration
▪ Thinner competitive set
differentiate themselves
▪ Domain-specific IP
▪ Greater pricing power, stabler
▪ Customers want solutions to business
problems and not just technology ▪ Greater focus on proactive solution margins, lower attrition rates
skills selling
▪ Expansion of addressable market
▪ Non CIO buyers emerging in ▪ Full stakeholder services
▪ Higher profile, strategically more
enterprises
important engagements
▪ Thinner competitive set >> Lesser
▪ Transformational partners selected ▪ Leverage TCS’ contextual knowledge, focus on pricing
based on solution quality and time to Location Independent Agile, Machine
First Delivery Model and Intellectual
market ▪ Embedding us more in business; gives
Property
greater resilience and visibility
▪ Launch of cloud based platforms and ▪ Expansion of addressable market
▪ Greater platformization of business
new business models ▪ Frees up spends for systems of
▪ Leverage IP portfolio differentiation
▪ Location Independent Agile™ ▪ Greater focus on resilience and
▪ Business disruption due to pandemic
▪ Machine First Delivery Model™ adaptability
▪ Secure Borderless Workspaces™Annexure
Financial Highlights
IFRS Amount in USD Mn, unless otherwise stated
Yearly Quarterly
FY20 FY19 YoY 4Q20 4Q19 YoY
Revenue growth –
Constant Currency 7.1% 3.0%
Revenue - ` Mn 1,569,490 1,464,630 7.2% 399,460 380,100 5.1%
Revenue $22,031 $20,913 5.3% $5,444 $5,397 0.9%
Gross Profit $9,069 $8,753 3.6% $2,286 $2,253 1.5%
Gross Margin 41.2% 41.9% (69 bps) 42.0% 41.7% 25 bps
Operating Income $5,414 $5,347 1.3% $1,366 $1,354 0.9%
Operating Margin 24.6% 25.6% (99 bps) 25.1% 25.1% 0 bps
Net Income $4,541 $4,494 1.0% $1,096 $1,154 -5.0%
Net Margin 20.6% 21.5% (88 bps) 20.1% 21.4% (125 bps)
EPS in ` 86.19 83.05 3.8% 21.45 21.65 -0.9%
29ThankYou Thank You
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