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1 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
FINANCIAL PERFORMANCE UPDATEANIL CHANANA
2 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
SAFE HARBOR STATEMENT
Certain statements in this presentation are forward-looking statements, which involve a number of risks, uncertainties, assumptions and
other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than
statements of historical fact are statements that could be deemed forward looking statements, including but not limited to the
statements containing the words 'planned', 'expects', 'believes', 'strategy', 'opportunity', 'anticipates', 'hopes' or other similar words. The
risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending
regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, Business Process
Outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, customer
acceptances of our services, products and fee structures, our ability to attract and retain highly skilled professionals, our ability to
integrate acquired assets in a cost effective and timely manner, time and cost overruns on fixed-price, fixed-time frame contracts, client
concentration, restrictions on immigration, 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, the
success of our brand development efforts, liability for damages on our service contracts, the success of the companies / entities in which
we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital
or acquiring companies outside India, and unauthorized use of our intellectual property, other risks, uncertainties and general economic
conditions affecting our industry. There can be no assurance that the forward looking statements made herein will prove to be accurate,
and issuance of such forward looking statements should not be regarded as a representation by the Company, or any other person, that
the objective and plans of the Company will be achieved. All forward looking statements made herein are based on information presently
available to the management of the Company and the Company does not undertake to update any forward-looking statement that may
be made from time to time by or on behalf of the Company.
3 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
All the figures are on LTM basis for period ending June 30th, for the respective years
FINANCIAL HIGHLIGHTS
4 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
4,1524,686
5,3605,952
6,389
2012 2013 2014 2015 2016
Revenue
REVENUE GROWTHINDUSTRY LEADING REVENUE GROWTH
• Revenue and Headcount 5 year CAGR at 12% and 7% respectively, demonstrative of non-linearity at play.
• Non Linearity has resulted in best in class Revenue /Employee at USD 59K (for LTM Jun 30th ‘16).
• On the back of investments, HCL’s strategic play across digitalization, IoT, Next–Gen ITO and ESO expands
addressable market beyond traditional IT and positions the company to capture both business and
technology spending.
In m
nU
S$
5 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
662925
1,292 1,324 1,290
2012 2013 2014 2015 2016
EBIT
EBIT AND NET INCOMEHEALTHY PROFIT MARGIN
• EBIT 5 year CAGR at 22%.
• The company posted EBIT growth of 40% in both 2013 and 2014. Post 2014, the growth in EBIT
moderated, led by enhanced investment agenda.
• A well defined layered hedging policy has ensured effective management of currency risks.
• Best in class EPS (in INR) growth, clocking 5 Year CAGR at 35%.
In m
nU
S$
481732
1,0371,164 1,145
2012 2013 2014 2015 2016
Net Income
In m
nU
S$
6 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
HEALTHY PROFIT TO CASH CONVERSION5 YEAR AVERAGE OCF/ NI AT 99% | FCF/ EBITDA AT 60%
• Robust Profit to cash conversion.
• Net cash stands at US$ 1.8bn as on 30th Jun’16.
106%114%
105%
84%96%
43%
70% 69%56% 56%
2012 2013 2014 2015 2016
OCF/NI FCF/ EBITDA
7 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
RESILIENT BUSINESS MODEL
8 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
1,880
827 643195
2,538 2,346
1,184
321
Application Services Infrastructure Services Engineering and R&D Services Business Services
Jun-11 Jun-16
TREND IN CHANGE IN SERVICE MIXDYNAMIC SERVICE MIX IN LINE WITH CHANGING TECHNOLOGY LANDSCAPE
• Global leadership in IMS and Engineering.
• IMS - Next Gen ITO deals are driven by automation; hybrid cloud and integrated services delivery. Differentiated positioning as end
to end outsourcing provider. Strong referenceability and credentials backed by impeccable execution track record.
• ERS – Global and domestic leadership position driven by experience in SW engineering, product development , embedded and
mechanical across diversified verticals. Capability and trust main drivers for stickiness in customer relationships. Strategic
outsourcing, IoT and Platform engineering are driving ERS pipeline.
• Applications – Strong vertical focus accompanied with thrust on Integrated propositions in ITO space and Modern Apps and Digital in
the transformational space. Application modernization is expected to be a significant opportunity with increased adoption of cloud
based solutions. Market dynamics getting reshaped with SAAS and cloud formats.
53% 40%MIX 23% 37% 18% 19% 6% 5%
In m
nU
S$
9 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
9051,156
290 263 303 424
1,605
2,057
787 694 599 612
Financial Services Manufacturing Lifesciences &Healthcare
Public Services Retail & CPG Telecommunications,Media, Publishing &
Entertainment
Jun-11 Jun-16
VERTICAL MIXPUBLIC SERVICES AND LIFESCIENCES & HEALTHCARE GROWTH MOMENTUM REFLECTIVE OF FOCUSED INVESTMENTS
• Momentum verticals have gained critical mass and demonstrated growth in last 5 years.
• Growth is notable in momentum verticals like Public Services (that includes Oil & Gas, Energy & Utilities, Travel-
Transport – Logistics & Government) and Life sciences and Healthcare on back of investments in differentiated
propositions.
• Matured verticals like Manufacturing and Financial Services have demonstrated healthy traction.
26% 25%MIX
In m
nU
S$
33% 32% 8% 12% 7% 11% 9% 9% 12% 10%
Reclassification of Telecom vertical revenue effected in 2013 is incorporated into the prior year figures
10 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
1,980953
451 162
3,867
1,939
466 116
Americas Europe ROW (Ex. India) India
Jun-11 Jun-16
GEO MIXGROWTH DRIVEN BY DEVELOPED MARKETS OF AMERICAS AND EUROPE
• Growth driven primarily by developed markets of Americas and Europe.
• New markets like Nordics, Benelux , DACH opened and penetrated in continental Europe.
• Select market strategies pursued in ROW. ANZ and South Africa showing increased
traction.
• Indian market being focused only for select verticals.
In m
nU
S$
56% 61%MIX 27% 30% 13% 7% 5% 2%
11 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
48%52% 56% 56% 58%
2012 2013 2014 2015 2016
Managed Services / FPP %
CONTRACT TYPES AND CLIENT BUCKETSSUPERIOR EXECUTION LEADING TO TRACTION ACROSS CUSTOMER BUCKETS
Progressive shift towards Managed services/ Fixed
Price contracts -
• Driven by focus on large multi year ITO/ IMS Deals
• Reflective of superior execution
• Also an effective margin lever
• Healthy addition of clients across all buckets
• Focus on full service portfolio leading to deeper
client penetration
• 96% of the business from existing clients
reflective of strong renewals
Client Category
Nu
mb
er
of
Clie
nts
$100+ Mn
$50+ Mn
$20+ Mn
$5+ Mn
$1+ Mn
2012 2014 2016
1520
10
6780
45
187237
164
429482
397
657
in %
12 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
SHAREHOLDER VALUE CREATION
13 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
050
100150200250300350400450
30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16
RELATIVE STOCK PRICE MOVEMENT
HCL Nifty - IT Nifty - 50
1729
4551 54
2012 2013 2014 2015 2016
EPS in INR
EPS AND STOCK PERFORMANCEBEST IN CLASS SHAREHOLDER RETURNS
• Company has focused on providing attractive shareholder return over the years.
• HCL has posted superior 5 years EPS CAGR at 35%.
• Dividend payout currently at 49% (for LTM June 30th 16) up from 32% in Jun’11.
• Rewarded shareholders with two bonus issue and one stock split in last 10 years.
• Robust ROE at 28% (as on 30th June ’16).
• HCL stock (up by 3.0x) has significantly outperformed broader market (up by 1.5x) and IT sector index
(up by 1.7x).
In IN
R
3.0 x
1.7 x
1.5 x
14 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
INVESTMENTS
15 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
ENHANCING GLOBAL PRESENCE THROUGH STRATEGIC INVESTMENTS
15
4
3x
31
11
3.5x
16
6
2.4x
3*
1
2.6x
NO. OF GDC
COUNTRIES PRESENT
CAPACITY EXPANSION IN LAST 5 YEARS
AMERICAS EUROPE RoWINDIA
(CAMPUS)
* 2 MORE CAMPUS LOCATIONS ARE IN PROGRESS TO BE OPERATIONAL IN 2016-17.
16 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
INVESTMENTS IN ACQUISITIONS
End–to–end engineering and research capabilities across hardware, software, mechanical &
manufacturing engineering and PLM consultingGeometric Ltd
Gained technical prowess in System-on-Chip & Physical design to further extend leadership
position in the semiconductor industryC2SiS
Enterprise workplace transformation services and end-user cloud engineering solutions for
virtualized workplace environment P2P
Consulting services & solutions for Microsoft Account with deep expertise in core engineering,
IoT, embedded systems and Intelligent SystemsTrygstad
Volvo’s external IT business added 40 new customers from the Nordics and France to HCL’s
portfolio and market leading mainframe and iSeries capability to HCLVolvo
HCL now possesses one of the largest Microsoft Dynamics practices in North America allowing
it to better capture growing opportunities in the CRM services marketPower Objects
Well thought out Acquisition Strategy to address white spacesMomentum in last 18 months
17 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
VALUE CREATION THROUGH INVESTMENT IN IP LED DEALS
Investments in IPs and Platforms are at the core of our
M&A Strategy
Deal with one of the largest global tech companies• Partnership involving investment and revenue share
for products operating in the IT Operations Management and Application development spaces
• Opportunity to create own IP based solution around the products
Deal with CSC:Core banking JV in which CSC contributed core
banking, cards, payments and default management industry software and product development expertise
Deal with Geometric:HCL will inherit several Geometric Intellectual Properties in PLM and digital manufacturing as part of the deal
Deal with CA:Revenue share deal where HCL took over the entire
Threat Management Product Suite of Computer Associates & development team worldwide (the
partnership has since been concluded).
Deal with Nomor:HCL gained a LTE Protocol Stack – to
service Apple, Samsung, NSN, Ericsson,Thales, L3, and Harris
Deal with Moogsoft:To address service assurance modernization market for Cloud, SDI and IoT; and to add more autonomics, machine learning, and self-healing capabilities.
Representative Engagements
18 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
CORPORATE GOVERNANCE
19 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
CORPORATE GOVERNANCETENETS & PHILOSOPHY
FRAMEWORK FOR CODE OF BUSINESS
Insider Trading Code
Whistle Blower Policy
Code of Business Ethics and Conduct
Policy Against Sexual Harassment
Investors Satisfaction Survey
Anti-Bribery & Anti Corruption Policy
Fair Disclosure Code
INDEPENDENT DIRECTORS TOTAL
1 3
STAKEHOLDERSRELATIONSHIP
4 4
AUDIT
4 4
RISKMANAGEMENT
3 5
FINANCE
2 4
NOMINATION &REMUNERATION
1 3
CSR
1 2
ESOPALLOTMENT
1 3
DIVERSITY
BOARD COMMITTEESPLAY A CRUCIAL ROLE IN GOVERNANCE STRUCTURE
BOARD OF DIRECTORS
GLOBAL & VALUE DRIVEN
11 DIRECTORS: INDEPENDENT: 8; EXECUTIVE: 1;
NON EXECUTIVE – NON INDEPENDENT – 2; WOMEN DIRECTORS - 3
CORPORATE OFFICERS: 16
FAIRNESS& EQUITY
COMPLIANCE &ACCOUNTABILITY
TRUST &TRANSPARENCY
COMMITMENT TO VALUESAND INTEGRITY
STRONG CORPORATE GOVERNANCE FRAMEWORK
20 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
BOARD OF DIRECTORSSTRONG FOCUS ON CORPORATE GOVERNANCE
Mr. Shiv Nadar, Chairman and Chief Strategy Officer: Founder of HCL and recipient of Padma Bhushan award. Through Shiv Nadar Foundation, Mr. Nadar has beenactively associated with numerous philanthropic initiatives with prime focus on education. Holds iconic global status in IT Thought Leadership
Mr. R. Srinivasan: An electrical engineer and an MBA from IIM-A. Founderand now Vice Chairman of Redington (India) Limited, a leading Tech productsupply chain solution company.
Mr. S. Madhavan: C.A and MBA IIM-A, Retired as a senior Partner and ExecutiveDirector, PWC. Long standing leader of indirect practice at PWC.
Mr. Amal Ganguli: A Fellow member of the ICAI and ICA, England & Wales.Previously Chairman and Senior Partner at PWC, India. His range of workincludes tax advice, audits, corporate M&A and consulting.
Mr. Sosale Shankara Sastry: B.Tech from IIT, Bombay. Dean of Engineering atUniversity of California, Berkeley. Previously, Member, Scientific Advisory Boards forGovernment of Singapore and Thailand.
Ms. Robin Abrams: B.A and juris doctor degree from U.S. Previously interimCEO at Zilog and senior VP at 3 Com. Held various senior managementpositions including Apple computers and Unisys. Served several U.S. publiccompany Boards and several academic advisory committees.
Mr. Keki Mistry: Vice Chairman & CEO of HDFC Ltd. He is a CA from the Institute ofChartered Accountants of India (ICAI). Mr. Keki is also on the Board of several HDFCgroup companies including HDFC Bank and on board of other companies like SunPharmaceutical Industries Ltd and Torrent Power.
Mr. Thomas Sieber: He is a senior international leader with more than 20years of experience in the ICT-sector. Thomas is also Member of Board ofDirectors at IT-services provider Garaio AG; Sierra Wireless (NASDAQ: SWIR),Global leader in “Internet of Things”, as well as Danish wireless solutioncompany RTX (NASDAQ OMX Copenhagen A/S). Thomas is also Chairman ofthe Board of Directors at Axpo Holding AG, one of two national Energyproviders in Switzerland. He holds masters in business administration fromthe University of St.Gallen, Switzerland.
Ms. Nishi Vasudeva: Ms. Vasudeva was the Chairperson & Managing Director,Hindustan Petroleum Corporation Limited (HPCL), a fortune 500 oil and natural gascompany. She has held leadership positions in Marketing, Corporate Strategy, Planningand Information Systems and led key business transformation and organizationalrestructuring projects. She received the SCOPE Award for excellence and outstandingcontribution to Public Sector Management from the Hon’ble President of India. Sheholds a Bachelor`s Degree in Economics Honors from Delhi University and MBA fromIndian Institute of Management, Calcutta.
Ms. Roshni Nadar Malhotra: She is CEO and Executive Director of HCLCorporation. Roshni holds MBA degree from Kellogg Graduate School ofManagement. She has played an institutional building role in the Shiv NadarFoundation and the SSN Institutions in Chennai as well as the Shiv NadarUniversity in NCR and the Vidyagyan Schools.
Mr. Sudhindar Krishan Khanna: Bachelor In Economics and C.A. Presently, Chairmanand MD of IEP Mumbai, a leading PE Fund. Founding member of Accenture worldwide.Serves on the board of United Spirits, Peninsula Holdings and Canara HSBC Insurance.
21 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
FY’17 OUTLOOK
22 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
FY’17 GUIDANCESTRENGTH IN ORDER BOOK AND PIPELINE LEADING TO BUSINESS VISIBILITY
FY’17 Revenues are expected to grow between 12.0% to 14.0%* in Constant Currency
FY’17 expected Operating Margin (EBIT) range is from 19.5% to 20.5%
*Revenue Guidance is based on FY’16 (April to March) average exchange rates.
The above constant currency guidance translates to 11.2% - 13.2% in USD terms based on June 30th 2016 rates.
23 Copyright © 2016 HCL Technologies Limited | www.hcltech.comHCL Technologies Confidential
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