| Copyright © 2017 Tata Consultancy Services Limited
July 2018
Investor Presentation
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 Indian and overseas IT services companies, various factors which may affect our cost advantage, 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 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
Tata Consultancy Services
TCS is an IT services, consulting and business solutions company, partnering with the world’s largest businesses in their
transformational journeys
FY 2018 (ending March) revenue
US$ 19.01 Bn
Employer of Choice, No. of Employees over
400,875
Global Presence in 46countries with 190Solution Centers in 18countries
Amongst the Top 10Global IT Services providers
Started in 1968, TCS is part of the Tata Group, known for its values, integrity and management excellence
3
$k
$10k
$20k
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18R
EV IN
USD
MN
Industry-leading top- l ine growth…
The Journey so far
60%
14%
3% 23%
Judicious usage of cash…
Shareholder payout Capex Acquisitions Invested Funds
FY05 to FY18
0
100
200
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
EPS
IN `
…with superior profitability
1054%
503%
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
-17
Mar
-18
…and higher -than-benchmark share performance
TCS
BSE IT
4
Leading Technology Change
1970s 1980s 1990s 2000s 2010sMainframes, Unix, VAX, AS/400
Material Resource Planning
COBOL, Object Oriented
Data
Compute
Applications Development
Applications
Industry 4.0
IoT, Robotics Drones, Cyber-Physical
Wearables, Bionics
Cyber Sec, Identity, Blockchain
MES, M2M
BYOD
Devices
Security, PrivacyCypto
APIs, DevOps
Cognitive Automation,AI, Intelligent Agents
Cloud, Edge, Fog, MistGPU, FPGA
Pervasive, Personal
PaaS, BPaaS, Products & Platforms
Big Data, Analytics,Data Monetization
Collaboration, Social, Touch Interaction, Design, AR/VR
RPA
VirtualizationGrids
SaaS
BI, Marts,NoSQL
Groupware, Apps,
Smartphone
SoA, Agile
Y2K Factory
Windows 95, Linux
Warehouses
ERP, HRMS, CRM, FS, BPS
Automation
Client/Server, Thin Client
Digital
DBMS, RDBMS
Leading through 50 Years of Enterprise Technology
1970s 1980s 1990s 2000s 2010s
LEVERAGE ECOSYSTEMS
EMBRACE RISK
CREATE EXPONENTIAL VALUE
MASS CUSTOMIZE
ABUNDANCE
AGILE
AUTOMATED
CLOUD
INTELLIGENT
Business 4.0
Digital Transformation Offerings
Digital Core
Intelligence
Experience Analytics & InsightsBusiness Analytics, Data
Services
TCS InteractiveCommerce, Channels,
Marketing, Engagement
IOTConnected Devices, Industry 4.0, Smart City, Digital Twin,
Managed Services
Enterprise Intelligent Automation
Infra, Application, Process
Cloud InfrastructurePublic, TCS Private & Hybrid
Cloud
Cloud Apps, Microsvcs & API
Migration, Modernization, Integration
Conversational ExperiencesContent, Care, Concierge,
Commerce, Colleague
BlockchainAdvisory & Ideation, Business
Consulting, Value Demonstration
Cognitive Business
Operations
Business Process Services
Domain & Enterprise Services
Business Platforms as a Service
Application Services
IT Infra Services
Cyber SecurityI&AM, GRC, Digital Forensics,
MSS, Cloud / Mobile/ IoT
Digital WorkplaceIntranet Imagineering,
Persuasive & Immersive Experiences, Collab & KM
Systems, Emergent Learning
Consulting & Services IntegrationEnterprise Agility, M&A / Divestitures, Finance & Shared Services, CX Front Office Transformation, SCM as a Service, Next Gen Transformation, Digital Integration
Enterprise Application Services
SAP, Oracle, MS, Salesforce
Quality Engineering & Transformation
Process, Performance, Agile
Gaining Leadership in Digital
• Digital adoption is progressing swiftly – project ticket sizes are going up
• Early adopters are now taking up core transformation programs
• Large scale, large scope, complex and risky undertakings: TCS is the preferred partner
In FY18, TCS was ranked a leader in 39 competitive assessments pertaining to digital technologies by major industry analysts
$868$934
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
$505 $553 $568$652 $694 $704
$737$797
$1,058
$1,183
23.8%22.1%
19.7%18.9%
17.9%16.8%
16.1%15.9%15.5%
13.7%13.3%12.5%
Revenue from Digital ($Mn) Revenue Contribution % from Digital
1Q16
$1,263
1Q19
25.0%
Winning in a Business 4.0 World
10
Marching ahead with our Brand
Won top honoursin the Institutional
Investor's 2017 All Asia Executive Team
Rankings
Ranked among the Top Regarded Companies
and World’s Best Employers in the
Forbes Global 2000 list
Listed in Fortune’s 2017 List of the Top 50 companies that
Changed the World
Ranked Global Top Employer by the Top Employers Institute
across 27 countries
Ranked among the Top 3 IT Services brands
globally, and the Fastest growing among them
Strategic Investments
Embracing Agile at Scale
Execution Capability
211,000+ Agile trained associates 8,000+ Externally certified 400+ Agile Development Zones
Market Success
440+ Clients using agile methods 1900+ Agile engagements 50+ Transformational programs
US Home Supplies Retailer
Time to market90% reduction
Product Quality30% improvement
Australian Bank
Time to market65% reduction
Product Quality80% improvement
Leading Cargo Handler
Time to market90% reduction
Product Quality30% improvement
Large US Financial
Services Co
Time to market20-50% reduction
Product Quality60% improvement
AgileReady Teams
CustomerEngagement
ExternalVisibility
AgileWorkspaces
Agile Assets
Scalable Reskilling using the Digital Learning Platform
FY 18: 247k associates trained in Digital | 861k+ Digital competencies acquired
Analytics and Insights Cloud
Mobility, Digital Marketing IOT & Cyber Security
Anytime, Anyplace, Any device
Rich & ExpandingCrowd sourced “faculty”
Content
Domain-infused, Culture focused, Gamified
Delivery
Cloud based, Immersive and Virtual
Infrastructure
Access
PLATFORMS
Advanced Drug Development
ERP on Cloud
HOBS
TCS Connected
Universe Platform
Omnistore™
ENABLERSPARTNERS
Cloud Providers Tech Partners
OEMs
COIN Partners
Intelligent
Urban ExchangeCustomer
Intelligence &
Insights
Optumera™
PRODUCTS
DESIGN STUDIOS & LABS20
INNOVATION CENTERS11
DISTRIBUTED AGILE
DEVELOP0MENT CENTERS150
3,916 patent
applications;
654 granted
PRODUCTS
Investments in Digital – Products, Platforms & Partnerships
Focus Areas for Research & Innovation
FOUNDATIONAL RESEARCHComputing, Physical Systems, Sciences
INDUSTRY 4.0Automation, Cognitive computing,Drones
GOVERNANCEAutomated Compliance, Consent Management,Enterprise Security
SUSTAINABILITYRemote Healthcare, Accessibility, Energy Management
BFSIBlockchainData Marketplace, Banking Analytics,Peer to peer Insurance
RETAILAlgorithmic Retail, Price Optimization,Dynamic Omnichannel, Shelf Product Recognition
MANUFACTURINGEarly warning system,EHS Digital Assistant, Digital Twin
LIFE SCIENCESDigital Clinical Trials, Digital Drug Discovery,Paperless Labs
Co-innovating with the Startup Eco-system
Visibility
Investor Portfolio
Events, Meetups
Demo days
Hackathons
Conferences, Forums
Customer Innovation
Partner Innovation
Publications
TCS BU Requests
3,062
Validation
TCS Horizontals
and Vertical
BUs
Customer BUs
1,073
Valuation
Joint Go to Market
Strategic Alliances
113
As of 31st March 2018
Longer Term Growth Strategy
Customer Centricity : Going deeper, Casting wider
19
Entrepreneurial Organization
Preferred partner for Transformation
Deep domain expertise
Contextual knowledge
Full Stakeholder Coverage
Enduring relationships
Strong growth
Resilient business
Verticalized Business Units
Focus on Overall Spend
Investments:• New capabilities • Customer Focused Innovation• Proactive Solutioning• IP Development
Customer-centric Organization Key Benefits Outcomes
Going Deeper, Casting Wider: A Case Study
Large Retail Client in UK
20
FY13 FY18
Rev per $ Mn CLient
FY13 FY18
Large Client Metrics
FY13 FY18
121
Rev per US$1 Million Client
3
Going Deeper, Casting Wider: Business Outcomes
207
38
97
17
52
US$ 20 Mn+
US$ 50 Mn+
US$ 100 Mn+
$19.8
$16.7
FY13 FY13 - FY18
Going Deeper, Casting Wider: Financial Outcomes
Revenue per capita ($cc)
FY13 FY13 - FY18
Net Income per capita ($)
$41,885
$12,212
$9,248
$74,146
Cash Flow
Data as of fiscsal year ending March 31st
Cash ConversionOCF to Net Income
88.7%
109.1%
FY13 FY18
Free Cash FlowUSD Mn
$1,760
$4,090
FY13 FY18 FY13 FY18
3.0%
5.7%
Free Cash Flow/Enterprise Value
Strong Capital Allocation
Free Cash Flow Shareholder Payout
Am
tin
$ M
n
Average Payout FY14-FY18 : 64%
$4,090
$4,233
FY18
$1,687
$3,824
FY17
$2,886
$1,540
FY16
$2,939$2,929
FY15
$1,165
FY14
$2,030
37.1%
91.2%41.8%
43.1%
105.7%
Structural Growth Drivers
Emerging Markets catching up in
Technology adoption>> Expandingglobal spend
Consolidating market
>> Scale providers gaining
market share
IT is a source of competitive differentiation >> Risingtechnology intensity of businesses
Shortening Tech shelf-life >>
Greater propensity
to outsource
25
Annexure
Latest Earnings’ Financial Highlights
USD Mn
Yearly Quarterly
FY18 FY17 YoY 1Q19 1Q18 YoY
Revenue - CC $18,754 $17,576 6.7% $5,018 $4,591 9.3%
Revenue - ` Bn 1,231 1,180 4.4% 343 296 15.8%
Revenue - USD $19,089 $17,576 8.6% $5,051 $4,591 10.0%
Gross Profit $8,035 $7,611 5.6% $2,090 $1,908 9.5%
Gross Margin 42.1% 43.3% (121 bps) 41.4% 41.6% (20 bps)
Operating Income $4,730 $4,518 4.7% $1,264 $1,073 17.8%
Operating Margin 24.8% 25.7% (93 bps) 25.0% 23.4% 160 bps
Net Income $4,005 $3,917 2.2% $1,082 $923 17.2%
Net Margin 21.0% 22.3% (131 bps) 21.4% 20.1% 130 bps
EPS in ` 134.19 133.41 0.6% 19.17 15.20 26.1%
IFRS
27
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