Ir Presentation Ver2
-
Upload
gurnaamsingh -
Category
Documents
-
view
236 -
download
0
Transcript of Ir Presentation Ver2
-
7/25/2019 Ir Presentation Ver2
1/30
Infosys A
Unique BusinessModel
-
7/25/2019 Ir Presentation Ver2
2/30
Safe Harbor
Certain statements in this presentation concerning our future growth prospects areforward looking statements which involve a number of risks and uncertainties that couldcause actual results to differ materially from those in such forward looking statements.The risks and uncertainties relating to these statements include, but are not limited to,risks and uncertainties regarding fluctuations in earnings, our ability to manage growth,intense competition in IT services including those factors which may affect our costadvantage, wage increases in India, our ability to attract and retain highly skilled
professionals, time and cost overruns on fixed-price, fixed-time frame contracts, clientconcentration, restrictions on immigration, our ability to manage our internationaloperations, reduced demand for technology in our key focus areas, disruptions intelecommunication networks, our ability to successfully complete and integrate potentialacuisitions, liability for damages on our service contracts, the success of thecompanies in which Infosys has made strategic investments, withdrawal ofgovernmental fiscal incentives, political instability, legal restrictions on raising capital oracuiring companies outside India, and unauthori!ed use of our intellectual propertyand general economic conditions affecting our industry. "dditional risks that could affect
our future operating results are more fully described in our #nited $tates $ecurities and%xchange Commission filings including our "nnual &eport on 'orm ()-' for the fiscalyear ended *arch +, ())), and our uarterly &eports filed on 'orm -/ for theuarters ended 0une +), ())), $eptember +), ())) and 1ecember +, ())). Thesefilings are available at www.sec.gov. Infosys may, from time to time, make additionalwritten and oral forward looking statements, including statements contained in thecompany2s filings with the $ecurities and %xchange Commission and our reports toshareholders. The company does not undertake to update any forward lookingstatement that may be made from time to time by or on behalf of the company.
http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/ -
7/25/2019 Ir Presentation Ver2
3/30
Infosys - An Overview
%nd-to-end IT solutions provider
3ne of the most profitable softwareservices providers in the world
4ublicly traded in India since 55+
'ifth most valuable company inIndia
6isted on 7"$1" since*arch 555
4resent market cap at #$8 9.9billion :as of *ay , ());
-
7/25/2019 Ir Presentation Ver2
4/30
Continuous GrowthRevenues and Operating Proft
%xcluding one-time charge for compensation arising from stock split
CAGR=71
.5%
CAGR
=76
.3%
IPO9.5
18.1 26.6
39.668.3
121.0
203.4
413.8
2.6 4.1 6.3 9.2 13.4
35.860.5
137.5
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
1994 1995 1996 1997 1998 1999 2000 2001
(in$million)
&evenues 3perating profits
-
7/25/2019 Ir Presentation Ver2
5/30
Growin !arnins "er Share
%xcluding one-time charge for compensation arising from stock split
0.05 0.070.12 0.15
0.22
0.49
0.93
2.01
0
0.5
1
1.5
2
2.5
1994 1995 1996 1997 1998 1999 2000 2001
(inU$)
!"#nin &'# "#'
CAGR
=69.5%
-
7/25/2019 Ir Presentation Ver2
6/30
"er-#a$ita revenue rowth
42.0 48.057.0
68.087.0
11.4 17.225.4
35.657.1
39.6
68.3
121.0
203.4
413.8
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
1997 1998 1999 2000 2001
4er capita revenues :#$8 ))); =illed manmonths :?))); &evenues :#$8 *n;
CAGR=50%
CAGR=
80%
CAGR=
20%
-
7/25/2019 Ir Presentation Ver2
7/30
Business outloo%
Quarter ending June 30, 2001
& 'et revenue is e($e#ted to be in the rane of) +, .illion to ) +,/ .illion
& !arnins $er A0S is e($e#ted to be in the rane of
) 12,3 to ) 12,4
Fiscal year ending March 31, 2002
& 'et revenue is e($e#ted to be in the rane of) /1 .illion to ) /5/ .illion
& !arnins $er A0S is e($e#ted to be in the rane of) +2,5 to ) +2,6
-
7/25/2019 Ir Presentation Ver2
8/30
Challenin e(ternal I7 environ.ent
&eports on slow-down in IT spending by #$ companies
%arnings warnings from some of our ma@or customers
Concerns on dot-com and venture-funded businesses
%arnings warnings from some of the software companies in #$ 4ossible softness in labor markets in the #$
Internet consulting companies facing pressure on visibility andbilling rates
There may be supply-demand gap in India resulting in escalationof labor cost
'alling markets and stock options becoming unattractiveresulting in escalation of compensation costs
-
7/25/2019 Ir Presentation Ver2
9/30
Investors8 Con#erns
*in'
!++', o+ lo-/on in I &'n/in in U on In+o
iiili in *in'
**#' #''n*' #o
P'# ,"&i" #''n*'
Aili o in,#'"' ' &'#-,"&i" #''n*' on " o-+o#"#/ "i
Im&", on ' &'#-,"&i" #''n*' #o #"' /*' o #'/*,'/ /o-,om 'n*#'-+*n/'/*in''
i#in "n/ Uili"ion
Aili o "#", ' ' "n/ ' #i'
o'# *ili"ion #"' ,o*&l'/ i in,#'"'/ i#in
"o# ,o ',"l"ion /*' o +"llin m"#:' i,' o+ ' o,:
;"#in
Aili o m"in"in o# #o ' m"#in on " o-+o#"#/ "i
!
-
7/25/2019 Ir Presentation Ver2
10/30
4redictability $ustainability
4rofitability 1e-risking
;"in'n"n,'
i'# "l*' '#i,'
In,#'"' #''n*' o/*,ii
O++o#' mo/'l - Glo"l ='li'#
U&'ll o '
-
7/25/2019 Ir Presentation Ver2
11/30
9e$eat business throuh the years
78.0
80.0
82.0
84.0
86.0
88.0
90.0
92.0
94.0
(in%)
R'&'" *in' (% o o"l #''n*') 91.8 84.1 83.1 90.0 87.6 84.5
1996 1997 1998 1999 2000 2001
-
7/25/2019 Ir Presentation Ver2
12/30
Million dollar #usto.ers
)
9)
))
9)
())
(9)
+))
)B
)B
()B
+)B
)B
9)B
)B
D)B
E)B
5)B
*illion 8 clients D 5 5 +9 ( E)
Total clients 5 + 5 5+ 9 5 (D+
*illion 8 clientsF total :B; (.B ((.B +.)B ().B +).B (.B (5.+B
*illion 8 client revenues F
total revenues :B;
9.B 5.5B 9D.B E.EB E).(B E.EB E9.B
'G 59 'G 5 'G 5D 'G 5E 'G 55 'G )) 'G )
-
7/25/2019 Ir Presentation Ver2
13/30
:uarterly $er-#a$ita revenue rowth
-
20@000
40@000
60@000
80@000
100@000
120@000
140@000
160@000
(inU$)
P'# ,"&i" #''n*' - Oni' P'# ,"&i" #''n*' - O++o#' P'# ,"&i" #''n*' - l'n/'/
P'# ,"&i" #''n*' - Oni' 95@511 103@888 103@036 104@028 115@434 135@600 138@400 134@900
P'# ,"&i" #''n*' - O++o#' 49@536 51@098 53@115 54@756 60@862 64@500 65@200 64@500
P'# ,"&i" #''n*' - l'n/'/ 62@809 67@975 70@160 71@571 80@959 90@400 89@600 86@200
1 >00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01
-
7/25/2019 Ir Presentation Ver2
14/30
;ey $ara.eters
Excluding one time charge arising on accelerated amortization of stock compensation expense
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
G#o m"#in % 'llin "n/ 'n'#"l '00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01
-
7/25/2019 Ir Presentation Ver2
15/30
End-to-endservice
provider
Oer newservices to
existing clients
Developnew clients
Use toolsand
methodologies
Expand anddiversiyase o !"
proessionals
!ncreaseemployee
productivity ypromoting reuse
Movin-u$ the
-
7/25/2019 Ir Presentation Ver2
16/30
Hirin and utili=ation
-
7/25/2019 Ir Presentation Ver2
17/30
Infosys> the !.$loyer-of-#hoi#e
"d@udged HIndia2s =est %mployer by thefirst =usiness Today-Jewitt $urveyconducted in 1ecember ()))
K "bility to attract the best and the brightest
Jigh investment in technology and training
K weeks of intensive training for new hires
K 99 member faculty, including E 4h.1s
"ll employees in Infosys are covered by thestock option plan
Incubation mechanism for employees tolaunch their own ventures. 4iloted3n*obile - a end to end wireless solutionsprovider
"ttrition rate of B for fiscal ()) and 5Bfor fiscal ()))
-
7/25/2019 Ir Presentation Ver2
18/30
Our views on labor #ost $ressures
B"' '*#' +o# +#''# m" no "#i' ',"*' o+in,#'"'/ m"#:' &'n'#"ion. i i /*' o
K o+'nin o+ "' in ' U m"#:' /*' o l"-o++
K lo/on in i#in ',on/ i#/ i'# ,om&"ni' in In/i"
/*' o " /',lin' in *in' o&&o#*nii'
B"' '*#' "l#'"/ '
-
7/25/2019 Ir Presentation Ver2
19/30
7he i.$a#t of sto#% o$tions
o,: o&ion "#' no " *i*' +o# "l"#i'.
o,: o&ion "#' #"n'/ " "//iion"l in,'ni'
o,: o&ion "#' i/'l /i#i*'/ "mon 'm&lo''
;o o+ ' 'nio# 'm&lo'' o+ ' ,om&"n ("#o*n/ 1550) "#' ,o'#'/
*n/'# ' 1994 o,: o&ion &l"n " ,#'"'/ *"ni"l '"l in 'i#"n/
62% o+ o&ion o*"n/in *n/'# ' 1994 &l"n (,o'#in 1@472'm&lo'') ill ' "+'# 2 '"#
P"# o+ ' #"n *n/'# ' 1998 "n/ 1999 o&ion &l"n@ "' "l#'"/
''/ o,: o&ion "' ,#'"'/ 80 /oll"# million"i#' "n/ o'# 1@150 #*&''
million"i#'@ " In+o
' 'm&lo'' on'#i& in In+o in,l*/in ' o*"n/in o&ion#"n i 11.7%
-
7/25/2019 Ir Presentation Ver2
20/30
?e #ontinue to fo#us on .arins
-
7/25/2019 Ir Presentation Ver2
21/30
Utili=ation rates and .arins @
*argins are the key. =ench is for strategic reasons. The cost ofbench is hardly 8E)) per month per person
ET excluding trainees
IT including trainees
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
40.0%
41.0%
42.0%
43.0%
44.0%
45.0%
46.0%
47.0%
48.0%
49.0%
50.0%
51.0%
Uili"ion % -I Uili"ion % -! G#o m"#in %
Uili"ion % -I 75.8% 71.2% 68.1% 76.6% 74.9% 65.4% 66.7% 64.9%
Uili"ion % -! 80.5% 81.1% 74.8% 81.5% 85.6% 80.5% 77.6% 73.0%
G#o m"#in % 48.1% 45.6% 45.3% 43.7% 47.7% 48.7% 47.3% 49.6%
1 >00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01
-
7/25/2019 Ir Presentation Ver2
22/30
Stratei# invest.ents
In'm'n "#' :' o In+o #"'i, oD',i' o+ "inin ",,' oni,' ',noloi' "n/ m"#:'
B' l''#"'/ ' '01 #''n*' -$1.7 million "n/ ,*m*l"i' #''n*' o+ $ 2.1 million)
K $ 0.4 million in ;-Comm'#,' 'n*#' P' /.@ in"&o#'@ "n '"#l "' C +*n/
K $ 1.5 million in Ai" H' ;'/i" I /. (>01 #''n*' - $0.9 million "n/,*m*l"i' #''n*' o+ $ 1.1 million)
K $ 0.5 million in P*#&l'>oi In,
-
7/25/2019 Ir Presentation Ver2
23/30
?e have today the infrastru#ture$ro#esses and $eo$le to .anae futurerowth
-
7/25/2019 Ir Presentation Ver2
24/30
Creatin $hysi#al infrastru#ture
"s of *arch +, ()), we had software development space of . million s. ft. capable of accommodating ),))personnel and .5 million s. ft. capable of accommodating E,9)) personnel under construction.
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
(in$
;n)
C"&i"l '
-
7/25/2019 Ir Presentation Ver2
25/30
"eo$le statisti#s
Additions are on a net basis
-
2@000
4@000
6@000
8@000
10@000
12@000
!m&lo''% (o"l) o+."#' o+'%%ion"l% A//'/ in ' E*"#'#
!m&lo''% (o"l) 3@943 4@778 4@996 5@389 6@445 7@925 8@910 9@831
o+."#' o+'%%ion"l% 3@321 4@122 4@261 4@623 5@594 6@941 7@824 8@656
A//'/ in ' E*"#'# 177 835 218 393 1@056 1@480 985 921
1 >00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01
-
7/25/2019 Ir Presentation Ver2
26/30
?orld-#lass :uality "ro#esses
Le have strong internal uality processes to manage growth
'ocus on defect prevention, technology insertionand process changes to improve uality and productivityC** 6evel 9C** 6evel 9
&eduction in cycle time and defects for six cross
functional processes 3rders Through &emittance :3T&; Misa processing #$ 4ayroll
$ix $igma$ix $igma
Cross functional teams to address improvement areas in
strategic management functions
6eadership 1evelopment, Customer &elationship*anagement, Juman &esource *anagement,Information $ystems and 4rocess *anagement
=aldrige=aldrige
-
7/25/2019 Ir Presentation Ver2
27/30
?e have built a stron brand
4rominently covered in =usinessLeek, 7ew Gork Times and Lall$treet 0ournal
*ost admired company in India -
poll by India2s largest businessdaily, The %conomic Times
Infosys figures in 'orbesH() for ()))
'irst recipient of the #TI award for
corporate governance - chosenfrom over D9)) listed companies inIndia
-
7/25/2019 Ir Presentation Ver2
28/30
?e have won several awards
' "# !"'#n !,onomi, R'i' #"'/ In+o "' Ho. 1 ,om&"n in In/i" in ' R'i' 2000@ "n"nn*"l *#' o+ Ai" l'"/in ,om&"ni'
In+o ',"m' ' +i# I ,om&"n o in ' I;CR"m:#in" "D"D H"ion"l *"li A"#/ in '
'#i,' ,"'o#
B' '#' D*/'/ ' in"n,i"l ',nolo Ai";""in' " ' ' R'ion"l o+"#' o*'
' "n:A" o/*, +#om In+o on ' CI-Bio ""#/ +o# ' ' P",:"'/ A&&li,"ion +o#' '"# 2000
Jil'# i'l/K A"#/ +o# ' ' P#''n'/A,,o*n ""#/'/ ' ICAI +o# Hon-+in"n,i"lP#i"' ',o# Com&"ni' +o# i< ,on',*i' '"#'n/'/ ;"#, 31@ 1995 #o* 2000
-
7/25/2019 Ir Presentation Ver2
29/30
In su..ary
B' "' " *niE*' *in' mo/'l i, i +*ll
&oi'/ o '
-
7/25/2019 Ir Presentation Ver2
30/30
7han% Dou
Misit us at www.infy.com