Wipro Limited Presentation to Investors July-Sep 2008
Safe Harbor Safe Harbor This presentation may contain certain “forward looking” statements, which involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These uncertainties have been detailed in the reports filed by Wipro with the Securities and Exchange Commission and these filings are available at www.sec.gov. This presentation also contains references to findings of various reports available in the public domain. Wipro makes no representation as to their accuracy or that the company subscribes to those findings. 2
Overvi Overview of of Wipro Corporati Wipro Corporation Performa Performanc nce 4,963 1. Revenue for the corporation at $4.9 billion for 3,325 2007-08 USD MN 2,391 2. Total Employees 1,820 ~100,000 1,273 , 816 652 3. Total IT business 465 363 223 touches $4.3 billion 2003-04 2004-05 2005-06 2006-07 2007-08 4. 4 Consumer Care C C Revenue USD MN Net Income USD MN and Lighting business achieves • Wipro Corporation revenue at Rs.200 billion for 2007-08 $378 million • 5 year CAGR of Revenue 36% and Net Income of 34% f d f 5. Wipro – Infrastructure • IT business contributes 87% of Revenue and 92% of PBIT Globally among • 85% of IT business is Services and 15% is Products the top 2 in Hydraulic Cylinder Business *All numbers are IGAAP Financial numbers translated into USD on the basis of realized exchange rate 3
Offshore Still Small Part Offshore Still Small Part o of Ove Overall Spend all Spend 1,759 1. Despite the growth Global Global Technol Technology Relat Related Spend & d Spend & India’s India’s India has seen in Current Exports Current Current Exports Current Exports ($ Bn) Exports ($ ($ Bn) Bn) n) Global IT Services market, it is still a very small Indian Exports As 802 % of Global Spend proportion (~2%) of 495 ~5% ~2% ~1% ~2% global spend 462 23.1 10.9 40.3 6.3 IT Services BPO R&D/Engineering Total 2007 Exports from India (FY08) Source:Nasscom Review, 2008 Relative Gro Relative Growth Rates th Rates Demonstr Demonstrate This ate This - Rate ~5% ate ~5% ~5% (CY ~5% (CY Exports 28% ts 28% 28% (FY08) 28% (FY08) Global IT Glo Global IT Glo IT Spend IT Spend Spend Growt Spend Gr Growth Rate wth Rate (CY 2007); (CY 2007); 2007); Gro 2007); Growth Growth of rowth of Indian of Indian Indian Expor ndian Expor xports (FY08) (FY08) *Scale adjusted for better readability 4
Indi India Story becom a Story becoming Stronger Stronger India India India’s offshor India s offshor offshore IT ffshore IT IT and IT and and BPO and BPO BPO exports PO exports exports US $ Bn exports, , US US $ Bn Bn Bn. 120-180 1. Industry CAGR BPO ~80 40% continues strong momentum – CAGR IT 22% grew 28% in ~60 FY08 FY08 CAGR BPO 50% 2. IT-BPO exports 40.3 could reach a CAGR IT 31.4 25% size of $120- size of $120- 180 Bn by 2015 ; 23.6 28% CAGR of 15-21% 17.7 35% from FY07-08 33% 6.2 BPO BPO Offshore I ffshore IT 5 year CAGR > 28% > 50% Source: NASSCOM McKinsey report 5
Incentive to Outsource / Incenti e to Outsource / Offshore Offshore Cost optimization is the top most agenda worldwide • Stick to Core Competence – Outsourcer to handle IT transformation Sti k t C C t O t t h dl IT t f ti • Large vendors with Deep Domain / Technology / Global Delivery • Model best geared to service customer objectives Model best geared to service customer objectives 6
How do we capitalize on the opportunity? the opportunity? …Through our differentiators - Current and Prospective Current and Prospective 7
Wipro Differentiators Wipro Differentiators 1 V 1 Verticals 1. . Ver Vertical als 2. Serv 2. Service ice Lines Lines 3. R&D 3. R&D 4. India & Middle East 4. India & Middle East 5. Wipro 5. Wipro Way Way 6. Ac Acqu quisition isition 8
Wipro Differentiators : 1. Ver 1. Vertical als Improved Addressabil Improved Addressability through ty through Verticalizatio Verticalization Verticals Addres Verticals Addressed Telecom Telecom Bankin Banking Energy Energy & & Manufac Manufacturing turing Utilities Utilities Securit Securities es CMSP CMSP Technology Technology Insura Insuranc nce Retail & Retail & Healthcare Healthcare Healthcare Healthcare Transpor Transportation tation Pioneered the Vertical framework in 1999 – first among Tier 1 players • Verticalization resulting in deep rooted domain competence. • Deep domain competence facilitates engagements with cost / service transformation – need • of the hour from the perspective of customers Model designed to facilitate scalability Model designed to facilitate scalability • Creation of new verticals on segments reaching scale • Enhanc nhancing C ing Customer C stomer Centricity ntricity 9
Wipro Differentiators : 2. Serv 2. Service ice Lines Lines Service Lines – Service Lines – Growth Drivers rowth Drivers and Differentiators and Differentiators FY07 FY07-08 8 YoY YoY% 54% 54% 38% 38% 42 42% % T Tes T esting i i ng 27% 27% PE PES Testing Te 40% 40% BPO BP 15% 15% 15% 15% BPO BP BPO BP 49% 49% TI TI S TI TI S TIS TI TI TI S 36% 36% PI PI PI PI PI PI PI PI PI PI PI PI PI PI FY01- 01-02 02 FY03 03-04 FY05- 5-06 06 FY07- 07-08 08 Incubate Incubate Expand Expand Enhance Enhance De Deliver V liver Valu lue Deliverin Delivering Comprehen g Comprehensive Solutions ive Solutions 10
Wipro Differentiators : 3. R&D 3. R&D Business Business Leaders in R&D Leaders in R&D Busine Business ss Industry Indus Indus Industry Vertica ry Vertica Verticals Addr Verticals Addr Addresse ddressed essed 1064 1064 851 851 25% 25% Fiscal Year 672 27% 27% 514 514 Wireless Net & Printing and 2004-05 2004-05 2005-06 2005-06 2006-07 2006-07 Imaging Imaging 2007 08 2007-08 Devices Devices � 1800 18000+ talent pool engaged in R&D Services � Largest player based on headcount � World’s largest independent team of Computer Semiconductors Sys & Storage Hardware Design Engineers of 2 200+ Hardware Design Engineers of 2,200+ � Leaders in Telecom OEM � Pioneers in the Embedded space Pioneers in the Embedded space rd party R&D busines World’s largest 3 World’s largest 3 rd party R&D business 11
Wipro Differentiators : 4. India & Middle 4. India & Middle East East Wipro Inf Wipro Infote otech ch – – Emergi merging g Market Market Focus Focus 1. Leadership position in India, pioneer in Middle East 2. Best of breed partnerships 3. Revenue of $931 million ; 3-year CAGR of Revenue at 39% and EBIT at 44% 4. Transformational customer engagements 5 5. Incubator of global service lines Incubator of global service lines Comprehe Comprehens nsive IT ive IT solutions solutions portfolio portfolio 12
Wipro Differentiators : 5. Wipro Way Driving Innovation • Understanding customer and his customers needs better • Understanding customer and his customers needs better • Moving from doing what is contracted to being a partner in solution success • Internal partnerships to create value for the customer • Relationship building Relationship building, Excellence in governance Excellence in governance Customer & Wipro • Partner of choice • Strategy • Internal Controls • Business Models • Customer centered • Experimentation • Adaptable to changes • Proactiveness • Right skill at the Right place • Well defined and efficient Work processes • Well defined and efficient Work processes • HR practices aligned to business needs • Seamless Execution • Training and Education • Optimized and Effective roles • High Employee engagement • Appropriate tools / methods for process improvements pp p p p • Mission 10X • Culture of Experimentation Proprietary delivery methodology guar Proprietary delivery methodology guarantees best-in-class productivity antees best-in-class productivity 13
Wipro Differentiators : 6. Ac Acqu quisition isition Ac Acquisition Strategy quisition Strategy 1. Enhancing domain and technology competence 2. Expanding Service Line portfolio 2 d S f l 3. New geographies 4. Investment of $1 billion+ towards strategic acquisitions est e t o $ b o to a ds st ateg c acqu s t o s Infocrossing Transformational deal for Wipro: Infocrossing’s Pan-US Local Hosting Transformational deal for Wipro: Infocrossing s Pan US Local Hosting � � Capabilities with a Managed Services Layer providing a significant competitive advantage in large TOS deals Enhanci Enhancing g growth growth and maximizi and maximizing ng v value 14
Shapi Shaping the Future g the Future 1 G 1 Global TOS 1. . Global Global TOS TOS 2. Global Programs 2. Global Programs Business Transformation 3. B 3. Best Shoring st Shoring 4. Inte 4. Integrate g g ted Consulti d Consulting g g IT Transformation 5. M Mega ga Part rtnersh nerships ps 6. Product Engg 6. Product Engg as a Service as a Service line line 15
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