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L&T Technology Services | www.LTTS.com
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L&T Technology Services | www.LTTS.com 1
L&T Technology Services – At a glance
Global Leader: Pure Play Engineering Services Company
251
Global Clients
399 $ 723 MN
Patents FY19 Rev
90% $ 191 MN
Repeat Business Q4 FY19 Rev
15,100+ 18.5%
Employees Q4 FY19 EBITDA margin
49 28
Innovation Sales Offices
Labs
L&T Technology Services | www.LTTS.com 2
Our Engineering heritage and multi-domain capabilities…
Industrial Products Medical Devices
Consulting,
Domain & Design
45% Transportation
Telecom,
Consumer
Electronics,
Semiconductors
Skill
Based
55% Process Industry
L&T Technology Services | www.LTTS.com 3
…supported by best in class infrastructure
SMART MANUFACTURING
IoT LAB INNOVATION LAB TEAR DOWN LAB
LAB
POWER ELECTRONICS LAB WIRELESS LAB IMAGING LAB
L&T Technology Services | www.LTTS.com 4
…allows us to be the end-end engineering partner for our clients
Testing and Manufacturing
Certification Support Injecting Innovation
Improving Quality
& Reliability
Design & Product
Development Maintenance
Optimize
Operational Cost
Product Product
Conceptualization Launch Support
Take Cost Out
Solutions across PDLC
L&T Technology Services | www.LTTS.com 5
LTTS Evolution…
DO IT TRANSFORM BUSINESS
DO IT CHEAPER DO IT BETTER IMPROVE BUSINESS
DIFFERENTLY
Discrete business Consolidation and Building capabilities Org and operational ENGINEERING
units working in building synergy through investments re-structuring THE CHANGE
silos
15% 27% 49% 25%
85% 51% 40% 60%
73%
30%+ 75%
Embedded
Digital Engineering
Mechanical Revenues
45%
Overall Addressable India Addressed Consulting,
Domain & Design
Market 5.5% Market 12.3%
CAGR 17-21 CAGR 17-21
Overall Addressable Market Addressed Market India Significan
t Increase 55%
despite Skill Based
ESP
growing
at 10-
13%
annually
Pre-2009 2009 Phase 1 2012 Phase 2 2015 Phase 3 2017 Phase 4 2021
L&T Technology Services | www.LTTS.com 6
1 Customer requires partners with…
AGILITY, ENGINEERING AND DOMAIN EXPERTISE
TO DRIVE CLIENTS TRANSFORMATIONAL
Innovation, Platforms and Solutions
Hi-Tech
REQUIREMENTS
Medical
Industrial Products
Plant Engineering
Transportation
35% Workforce
65% Workforce
Embedded
Horizontals
Application Engineering
Mechanical
Digital Manufacturing Services
Client Servicing Innovation, Platforms and Solutions
CTO Org
L&T Technology Services | www.LTTS.com 7
2 Customer requires partners with… Leaders Other Positions No Positions
MULTI-VERTICAL AND MULTI-DOMAIN CAPABILITIES ENABLING TO
LEVERAGE ADJACENCIES…
Ve r t i c a l R a n k i n g s Horizontal
Consumer Plant
Auto Off-highway Aero Medical Electronics Telecom Semicon Industrial Chemicals O&G FMCG IoT R aIIOTn kEmbedded
i n g s Engineering
LTTS 15
TCS 14
HCL 11
Wipro 11
Altran 9
Quest 4
Cyient 3
EPAM 0
L&T Technology Services | www.LTTS.com 8
3 Customer requires partners with…
MEDICAL
▪ Real-time Remote Monitoring
▪ 3D Printing …READY 2 DEPLOY SOLUTIONS
TRANSPORTATION ▪ AI in Medical Imaging
(R2DS) TO SPEED UP THEIR
▪
▪
Digital Cockpit
Additive Manufacturing
GTM…
▪ Autonomous Car Middleware
▪ Active Safety
▪ EV/ Hybrid ENABLING DIGITAL
▪ V2X
PLATFORMS
TELECOM & HI-TECH
5G : Enabling Next-Gen Connectivity ▪ 5G and IoT chipset module
▪ ASIC - Frontend, PD
Augmented Reality/Virtual Reality ▪ Smart Homes & Gateways
▪ Next-Gen Media Streaming
Cognitive Computing ▪ Embedded AI in chips
(AI/Engineering Analytics/DL/ML/NLP) ▪ OTT Solution, App Frameworks
Vision Based Computing
(Image Processing)
INDUSTRIAL PRODUCTS Security/Blockchain PLANT ENGINEERING
▪ Building management Sensor Fusion ▪ Plant control mobility solution
▪ Digital Twin ▪ Digital Factory
▪ Energy Storage/Management ▪ Integrated manufacturing & supply
▪ Industrial IoT chain
▪ Condition based monitoring ▪ Plant energy management solutions
L&T Technology Services | www.LTTS.com 9We have a marquee list of clients today …
8 of Top 10 8 of Top 10
Transportation Hi-Tech R&D
R&D spenders spenders
51 OF TOP 100
R&D SPENDERS
3 of Top 5 7 of Top 10
Medical R&D Industrial and Process
Spenders R&D spenders
L&T Technology Services | www.LTTS.com 10…which gives us a long runway for growth
RELIABLE AND PREFFERED PARTNER FOR FUTURE
Our
Customers
51 of Top 100 among Top 117 of Top 500
R&D
Spenders
Revenue
$1.7
Revenue
Trillion 12
% $5.3
Trillion 8.7%
117 Customers
Investment
T-30 Customers
6+ Yrs
R&D
$75 Avg. Customer
Billion
4% Relationship for T30
Investment
Revenues
R&D
$286
LTTS
$376 Billion 8.5%
Million 23%
L&T Technology Services | www.LTTS.com 11ER&D: New Technology spend accounting for ~40%
All numbers in $Bn
Legacy spend
New Technology Spend Auto Telcom Con. Elect. Plant
2018 2022 2018 2022 2018 2022 2018 2022
Old 126 146 Old 47 32 Old 63 77 Old 65 72
1580 New 21 41 New 28 59 New 12 21 New 9 21
1228
1058 568
159 293
Semcon Aero Med. Dev. Storage
899 935 1012
2018 2022 2018 2022 2018 2022 2018 2022
Old 57 76 Old 48 52 Old 35 44 Old 30 31
New 10 15 New 2 3 New 11 19 New 6 10
2013 2018 2022E
L&T Technology Services | www.LTTS.com Source: Zinnov , March 2019 12New Tech spend: High Growth in Auto & Energy Sectors
SECTOR CAGR KEY DIGITAL TRENDS
Sectoral Share
Connected: Infotainment, cyber security, V2V
Autonomous: Lane monitoring, route optimization, motion sensors, 3%
AUTO 9.1% telematics 4%
Shared: GPS, payment, cyber security, app dev. 6% 22%
Electric: Design, power train, charging & battery tech, power elect. 6%
6% FY19 E
CONST.& HEAVY Connected Autonomous: AR/VR & AI/ML
EQUIPMENT
7.6% Telematics: Off - highway growth at 8%CAGR
$28 Bn
7%
18%
Digital Oilfield: $27 Bn by 2022
ENERGY 7.0% Digital Tech: cut cost by 20% 11%
16%
Connected: Wearables, connected hospital/ ambulance, remote
monitoring
MEDICAL DEVICES AI/ML & Analytics: Imaging, chronic disease mgmt., advance Telecom Semcon Auto
7.8% wearables
Comp. Sys Machinery Energy
Digital Marketing: Mobile Apps, integrated devices, advanced
analytics Aero Cons. Elect. Med Dev.
Others
Communications
SEMCON 3.1% EUV lithography & bigger wafer size
L&T Technology Services | www.LTTS.com Source: Nasscom, Feb 2019 13Transportation: Co-creating the next-generation of mobility
Body Engineering and
Revenue: USD250mn+ Safety Restraints
(Q4FY19 annualized)
An automotive engineering service
Powertrain & Alternate Infotainment & Driver
provider with strong expertise across Propulsion Systems Information Systems
the value chain, strong innovation
credentials and a solid presence in
the off-highway vehicle segment.
-HfS Research,
Automotive Engineering Services Blueprint
Aerospace
Connected Cars
Aftermarket
Automotive practice rated in Winner
Services
Circle by HfS Research
Off-highway practice rated as the
Leading ESP for 5 consecutive year by
Zinnov Management Consulting. ADAS &
Inflight Entertainment & Safety Systems
10+ State-of-the-art labs across Communication Services
Infotainment, ADAS/ Autonomous drive,
Electric vehicles, EMI/EMC, Smart
Manufacturing, Design & Tear Down.
Body Electronics &
Comfort Systems
L&T Technology Services | www.LTTS.com 14Telecom & Hi-Tech : Strengthening Connectivity
Blockchain
Revenue: USD200mn+ Smart Home
(Q4FY19 annualized) 3D Imaging &
OTT Platform &
Depth Perception 5G & Smart Appliances
Applications
nb-IoT stack
LTTS stood out for clients’ very Speech Recognition
positive impressions of its operations VOD & Wearables
Engine
and service delivery. Reference Catch-up TV
clients have praised LTTS’s capability
for design to manufacturing solutions. MEDIA & CONSUMER
-HfS Reseach SEMICON TELECOM
Embedded & Semicon Engineering Services Blueprint
ENTERTAINMENT ELECTRONICS
Rated as one of the leading global ESPs
in embedded space by Zinnov
Management Consulting
Rated among the top 5 embedded &
semicon ESPs globally by HfS Research
20+ partnerships and 40+ in-house
solutions, IPs and accelerators.
ADVANCED NEXT-GEN INNOVATIVE CUTTING-EDGE
SILICON CONNECTIVITY ENTERTAINMENT WEARABLES
L&T Technology Services | www.LTTS.com 15Industrial Products: Infusing Technologies
Revenue: USD145mn+
(Q4FY19 annualized)
IMAGINEERING ENGINEERING ANCILLARY SERVICES
L&T Technology Services’ deep multi-
Building Energy
vertical expertise, rich IP portfolio Management Lighting &
Systems HVAC
such as UBIQWeise™, iBEMS, Building
W.A.G.E.S and innovation focused Automation
Elevators & Security &
multi-domain labs gives it a clear Escalators Access Control
advantage over its peers.
-Zinnov Management Consulting,
Zinnov Zones 2017 for IoT Technology Services Conventional &
Electrical
Non-Conventional
Equipment
Power Generation
Electrical Drives
Power Transmission Test & & Power
Rated as #1 engineering services & Distribution Measurement
Equipment Equipment
company for the last 7 years by multiple
industry experts
Conventional &
Electrical
Rated in the Winner Circle by HfS Non-Conventional
Equipment
Power Generation
Research for deep domain capabilities
in IIoT Machinery Power Transmission Test &
& Distribution Measurement
Equipment Equipment
20+ labs and over 150+ authored/
co-authored patents
L&T Technology Services | www.LTTS.com 16Process Industry : Extending Industry 4.0
Revenue: USD110mn+ Consumer Energy &
Speciality Chemicals
(Q4FY19 annualized) Packaged Goods Utilities
Industry 4.0 Enablers Monitoring and Control
L&T Technology Services’ deep ▪ IoT and M2M Consulting ▪ SCADA
understanding of Plant Engineering ▪ Analytics ▪ DCS
and track record of making products ▪ Mobility ▪ Control Panel Data Acquisition
▪ Cloud ▪ PLCs ▪ CNC ▪ RTU
and manufacturing smarter,
established it in the Winners Circle ▪ Robots ▪ HMI
Operations & Business ▪ Alarms ▪ Historian
-HfS Reseach Management ▪ Gateways
Industry 4.0 Services Blueprint Assessment
▪ ERP and EAM
▪ Applications and Systems
▪ Integration Services
▪ Testing Services
▪ AMS and ADM
Rated in the Winner’s Circle by HfS
Research in their Industry 4.0 Blueprint
Extensive global reach and expertise
with geographically distributed resource
base working across 200+ global Infrastructure
manufacturing locations ▪ Hosting & Cloud Services
Sensors and Instrumentation
▪ End User Computing Engineering Expertise
▪ Network ▪ RFID Equipment
▪ Product lifecycle Management ▪ Plant Designing ▪ Sensors
▪ Security
▪ Mechanical Design Expertise ▪ Control and Automation ▪ I/O Devices
▪ Electrical Design Expertise ▪ Industrial & Device Security ▪ Device Integration
▪ Embedded System Engineering ▪ Embedded System
L&T Technology Services | www.LTTS.com 17Medical Devices: Touching Lives
Revenue: USD50mn+ Patient Mobility Therapeutic & Life Science
(Q4FY19 annualized)
• Critical Care Bed • Oncology
The ability to pro-actively build and • Patient Handling • Drug Delivery
demonstrate proof-of-concepts, take • Surfaces • Inhalable
risks, and explore new ways of doing
• Wheel Chairs • Histopathology
things has created stellar results for
our partnership with LTTS. • Hematology
- Leading American Medical Devices • Mass Spectroscopy
& Lifesciences conglomerate
• Endo
• Vascular
Rated as one of the leading global ESPs
for Medical devices for the past 3 years • Wound Closure • Joint Replacement
consecutively
• Ultrasound Systems • Trauma
Innovation focused culture with 50+ • CT Scanners • Biologics
patents to credit
• MRI Scanners • Dental Equipment
cGMP focused manufacturing practice • Patient Monitoring • Orthodontic
Surgical & Diagnostic Musculoskeletal
L&T Technology Services | www.LTTS.com 18LTTS Platforms & Solutions
From existing platforms… Priority1
Intelligent Building Experience Management System New platforms…
System of Systems | Advanced Analytics Security
Engineering Connected Platforms
(WAGES+ Mcare+ RAPM+ Ubiqweise)
Predictive Maintenance| Energy Utilization| Analytics
NB-IoT Protocol
Asset Tracking | Smart Metering | Smart Agriculture
Artificial Intelligence Framework Jun 2019 Aug 2019
ML | NLP | Image Processing
L&T Technology Services | www.LTTS.com 19Diversified Customer Base
Top Clients Contribution Scale-up of million dollar clients
70% % of LTM Revenue (as of Q4FY19) 64%
60% 54%
50% Customer Revenue
FY16 FY17 FY18 FY19
(USD Mn)
40% 38%
50 Million + 0 0 0 2
30% 30 Million + 0 1 3 3
20 Million + 3 3 4 5
20% 10 Million + 11 9 12 16
10% 5 Million+ 28 30 31 41
1 Million + 72 79 84 106
0%
Top 10 Top 20 Top 30
Customers Customers Customers
L&T Technology Services | www.LTTS.com 20Diversified Business and Geographical Mix (FY19)
By Vertical Onsite vs. Offshore Split
7%
14% 32% Transportation
Industrial Products 47% Onsite
53%
Telecom and Hi-tech Offshore
27%
Process Industry
20%
Medical Devices
Fixed Price vs. T&M
By Geography
12% North America
13% Europe 42% Fixed Price
India 58% T&M
17% 58%
Rest of the world
L&T Technology Services | www.LTTS.com 21Performance Highlights
FY15 FY16 FY17 FY18 Parameters FY19
428 468 484 580 Revenue from Operations (USD mn) 723
26,186 30,662 32,483 37,471 Revenue from Operations (INR mn) 50,783
15.2% 16.9% 18.0% 15.5% EBITDA Margin 18.0%
13.4% 15.0% 16.1% 13.0% EBIT Margin 16.0%
252 845 561 1,910 Other Income (INR mn) 2,209
3,109 4,191 4,249 5,060 Net Income (INR mn) 7,656
11.9% 13.7% 13.1% 13.5% Net Income Margin 15.1%
61.1 65.5 67.1 64.6 Avg. Exchange Rate (USD/INR) 70.2
L&T Technology Services | www.LTTS.com 22Financial performance
Amount in ₹ million
Income Statement Q4 FY18 Q3FY19 Q4FY19 QoQ YoY FY18 FY19 YoY
Revenue 10,548 13,169 13,431 2.0% 27.3% 37,471 50,783 35.5%
Cost of sales 7,575 9,269 9,167 26,738 35,165
Gross Profit 2,973 3,900 4,264 9.3% 43.4% 10,733 15,618 45.5%
Selling, General & Administration
1,278 1,483 1,773 4,922 6,461
Expenses
EBITDA 1,695 2,417 2,491 3.0% 47.0% 5,811 9,157 57.6%
Change in Contingent Consideration 55 11 55 11
Depreciation & Amortisation 452 239 273 888 1,042
EBIT 1,188 2,178 2,207 1.3% 85.8% 4,868 8,104 66.5%
Other Income, net 747 353 333 1,910 2,209
Income tax expense 344 670 616 1,712 2,630
Minority Interest 3 5 9 6 28
Net Income 1,588 1,856 1,915 3.2% 20.5% 5,060 7,656 51.3%
Margins (%)
Gross Margin 28.2% 29.6% 31.7% 28.6% 30.8%
EBITDA Margin 16.1% 18.4% 18.5% 15.5% 18.0%
EBIT Margin 11.3% 16.5% 16.4% 13.0% 16.0%
Net Income Margin 15.1% 14.1% 14.3% 13.5% 15.1%
Earnings Per Share (INR)
Basic 15.52 17.86 18.44 49.60 74.06
Diluted 15.08 17.58 18.15 48.18 72.91
L&T Technology Services | www.LTTS.com 23Financial performance
Amount in ₹ million Amount in ₹ million
Balance Sheet FY18 FY19 Cash Flow Summary FY18 FY19
Assets Net cash provided by operating activities 4,092 8,061
Property and equipment 1,251 1,443
Capex -511 -885
Intangible Assets and Goodwill 5,843 6,356
Free Cash Flow 3,581 7,176
Accounts Receivable 9,623 10,643
Free Cash Flow to Net Income (%) 71% 94%
Unbilled Revenues 2,154 2,421
Investments 2,207 5,749
Cash and Cash equivalents 1,542 2,051
Other current assets 3,080 2,851
Other non-current assets 1,351 2,124
Total Assets 27,051 33,638
Liabilities and Shareholders' Equity
Shareholders' Funds 19,366 24,792
Short term borrowings 702 702
Other current liabilities 6,933 7,919
Other non-current liabilities 47 194
Minority Interest 3 31
Total Liabilities 27,051 33,638
L&T Technology Services | www.LTTS.com 24Case Study: Turnkey SoC
Project Highlights
4
• Complete physical design and verification including mass Firmware Board
production of image processing SoC 3 Development Design
• Executed chip development plans using low power process 5
methodology
• Achieved high chip processing efficiency by optimizing die size, pin Chip
Development
count, and power/memory/performance/sensor requirements ASIC/FPGA
Validation
2
Application: Industrial Camera System/Chip 6
Architecture Manufacturing
Support
End-to-End
LTTS proprietary VLSI IPs 1
Services
5 Million 40+ Image 100+ Full Chip
Gates With Processing configurable Verification
400+ Macros Algorithms Sensor Interface Environment
to ASIC
L&T Technology Services | www.LTTS.com 25ARCHITECTING THE SMARTEST CAMPUS IN THE WORLD
Powered by iBEMSTM - Ingenious platform for smart buildings
WHAT WE ENABLED
• Integrated View of complete facility operations
• Enabling Net Zero Buildings and environmental certifications
• Predictive Maintenance of Building Assets
• Customized experiences for
building occupants
100+ SMART BUILDING
FUNCTIONALITIES
SAVES >30% OF FACILITY ENERGY &
OPERATIONAL COSTS
OUR EXPERTISE
• Master Platform Integration
• Edge & Cloud Analytics
• Machine Learning
• Custom User Experiences
L&T Technology Services | www.LTTS.com 26ASSET CONDITION MONITORING ON THE SHOPFLOOR
WHAT WE ENABLED
• Predictive Maintenance of Critical Manufacturing equipment – identifying
& fixing issues long before they occur.
This involved-
• IoTification of machinery
• Analysis of critical parameters on the edge & cloud
• Real-time notifications on any
anomalies
20% REDUCTION IN DOWNTIME
PAPERLESS ROOT-CAUSE ANALYSIS
PROACTIVE HEALTH NOTIFICATIONS
OUR EXPERTISE
• Machine Sensorization
• Predictive Analytics
• Data Encryption
• Edge Computing
L&T Technology Services | www.LTTS.com 27You can also read
