Investor Presentation

September 2019
| Copyright © 2018 Tata Consultancy Services Limited
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 global IT services companies, various factors which may affect
our profitability, 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.

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Tata Consultancy Services
$20.9 BN Revenue FY 19

$6.8 BN Revenue from digital

TCS is a global IT services, consulting and
business solutions leader partnering with the
Among the Top 5
Global IT Service Providers
world’s leading businesses in their
transformational journeys

183 Solution Centers People Customer Innovative Responsible

in 19 countries Caring Centric

436,000+ Employees
151 nationalities

Leading Brand
157,000+
Women employees

11.5%
Lowest Attrition rate in the IT
Services industry

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 The Journey so far

Industry-leading top-line growth… … with superior profitability

$20k 200
Rev in USD Mn

$15k 150

EPS in ₹
$10k 100

$5k 50

$k 0

FY14

FY08

FY18
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13

FY15
FY16
FY17
FY18
FY19

FY05
FY06
FY07

FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17

FY19
Judicious usage of cash… …and higher-than-benchmark share performance
2%
13%
1520%
TCS
Shareholder payout
BSE IT
Invested Funds 661%
65% Capex
20%
Acquisitions

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
Mar-19
FY05 to FY19

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Leading Technology
Change
 Leading through 50 Years of Technology Change
Cyber Sec, Identity, Blockchain

IoT, Robotics Drones, Cyber-Physical

Security, Privacy
Cypto
Wearables, Bionics
MES, M2M
Industry 4.0
BYOD
Devices Collaboration, Social, Touch
Groupware, Interaction, Design, AR/VR
Apps,
Smartphone
Digital
Cognitive Automation,
RPA AI, Intelligent Agents
Automation Y2K Factory

1970s 1980s 1990s 2000s 2010s

Compute Mainframes, Unix, VAX, AS/400 Windows 95, Linux Virtualization Cloud, Edge, Fog, Mist
Data Grids GPU, FPGA
DBMS, RDBMS
Warehouses Pervasive, Personal
Applications Material Resource Planning BI, Marts,
ERP, HRMS, CRM,
Applications FS, BPS NoSQL
COBOL, Object Oriented Big Data, Analytics,
Development
Client/Server, Data Monetization
Thin Client SaaS

PaaS, BPaaS,
SoA, Agile Products & Platforms

APIs, DevOps

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The new era demands a different mindset …

EMBRACE MASS
RISK CUSTOMIZE

AGILE
CLOUD

Intelligent, Agile, Automated, and on the Cloud

ABUNDANC
AUTOMATED E INTELLIGENT

LEVERAGE CREATE
ECOSYSTEMS EXPONENTIAL
VALUE

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 Digital Transformation Offerings

CONSULTING & SERVICES INTEGRATION

Enterprise Agility, M&A / Divestitures, Finance & Shared Services,
CX Front Office Transformation, SCM as a Service, Next Gen Transformation

TCS Interactive Conversational Experiences

Commerce, Channels, Business Platform Content, Care, Concierge,
Marketing, Engagement Solutions Commerce, Colleague
Machine First
Industry Business Delivery Model TM
Enterprise Intelligent Services Cyber Security
IOT Automation Enterprise Services I&AM, GRC, Digital Forensics,
Connected Devices, Industry 4.0, Infra, Application, Process MSS, Cloud / Mobile/ IoT Enterprise Application
Digital & Customer Services
Digital Twin, Smart City,
Experience SAP, Oracle, MS, Salesforce,
Digifleet, Energy Management, Blockchain
Analytics & Insights Operations Microsoft
IP2 Programs (Embark, Design,
Business Analytics, Data Network Scale), Platform Solns
Services Management (Horizntl, Domain)
Cloud Apps, Microsvcs & Datacenter & Future of Work
API Workplace Services Quality Engg & Digital Workplace, ChatBots,
Cloud Infrastructure
Migration, Modernization, Cloud Operations Transformation Collaborative Tools,
Public, TCS Private & Hybrid
Integration SmartQE, CX Assurance, Gamification
Cloud
Big Data, Video
 Gaining Leadership in Digital
$7 35.0%
28.6%
 Digital adoption is $6 30.0%
progressing swiftly - project
$5 25.0%
ticket sizes are going up 21.2%

$ Billion
$4 16.7% 20.0%
 Early adopters are now 13.8%
$3 $6.0 15.0%
taking up core
9.7%
transformation programs $2 $4.0 10.0%
$2.9
$1 $2.3 5.0%
 Large scale, large scope, $1.5
complex and risky
$0 0.0%
undertakings: TCS is the

FY16

FY17
FY15

FY18

FY19
preferred partner

Revenue from Digital ($ Mn) Revenue Contribution % from Digital

FY 19: TCS was ranked a Leader in 84 competitive assessments in digital technologies by major research firms

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Strategic Investments
 “There are no legacy people, only legacy technologies”
Scalable Reskilling using
the Digital Learning
Analytics and Insights Cloud
Platform

Access: Anytime,
Anyplace,
Any device

Content: Rich & Expanding

Crowd sourced “faculty”
Mobility, Digital Marketing IOT & Cyber Security

Delivery: Domain-infused,
Culture focused, Gamified

Infrastructure: Cloud
based, Immersive and
Virtual

315k associates trained in Digital | 10 Mn Learning hours logged in 1Q’20

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 Go Agile at Scale
World’s largest Agile-ready workforce:
Time to market
US Home Supplies 90% reduction
Retailer Product Quality
30% improvement
Location -
Independent Time to market
Agile Australian Bank
65% reduction 365K+ 140K+ 745
Product Quality Agile-trained Agile Agile delivery
80% improvement employees practitioners centres
Our thought-leading
framework that helps Time to market Market Success:
customers adopt Agile Large US Financial 20-50% reduction
at scale, and gain Services Co Product Quality
concrete business 60% improvement
benefits
Time to market
Leading Cargo 90% reduction
Handler Product Quality 500+ 6,000+ 700+
30% improvement Clients Agile engagements Engagements with
Agile as primary
methodology

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Investments in Digital - Products, Platforms & Partnerships

Customer Intelligence Intelligent Advanced Drug

& Insights Urban Exchange Development
HOBS TCS Connected
Universe Platform
Optumera™ ERP on Cloud
Omnistore™

PRODUCTS
4,682 PLATFORMS
patent applications;
PARTNERS 1,022 ENABLERS
granted
20 150
DESIGN STUDIOS & LABS Distributed Agile
Development Centers
Frameworks and Accelerators
11 • Network Function Virtualization (NFV) Framework
Innovation • Sensor Data Analytics IoT Framework (SDAF)
Centers • Service Integration and Management Framework (SIAM)
• Open Banking API Framework
... • Design Fabric ...
135+ Partnerships 13
 Helping Customers Scale Their Innovation
Foundational Research
Computing, Physical Systems,
Sciences, New Materials, Sharing of ideas at the
Robotics, Sensing of Machines On-Demand TCS Innovation Forum
Innovation
Industry-Specific Research Early Stage PoCs /PoTs
BFSI: Blockchain, Data Marketplace, Innovation Champions
Analytics, Compliance Monitoring |
Retail: Algorithmic Retail, Price Custom COINTM
Optimization, Immersive Store
Experience | Utilities: Solar value Bespoke Innovation Days
chain, Energy value ecosystem | Life
Sciences: Digital Clinical Trials, Crowd Sourcing Innovation through
DNA Sequencing, Genomics, Hackathons/ Ideathons
Microbiomes, Translational Research
Design Thinking and Agile Innovation
Extended Ecosystem at a Pace PortTM
Emerging technology companies,
alliance partners, accelerators and
academia

1,000 + 1,022/4,682* 30+ 250+ ~250 MN

Researchers Patents Innovation Labs Publications USD investments
* Granted/ Applied
 TCS Co-Innovation Network (COIN™)
Startups & Accelerators Alliance Partners

3500+
Startups
300+
50+
EIRs Venture
Capitalists

50+
Academic
Institutions TCS CLIENTS
150+

70+ Alliance Academic Partners

Faculty Partners

TCS
Research & Consultants
30+ Innovation
Industry
Projects
Bodies

c
TCS' start-up program is organic,
highly structured, and currently
one of the largest among services companies
- Mette Ahorlu
Research Director, IDC
Longer Term Growth
Strategy
 Customer-centric Strategy: Going Deeper, Casting Wider

Agile AI

Partnership
Accountability Ecosystems
Research & Innovation Superior Business Outcomes
Cloud MFDM
Talent Relationship
Development Focus
Highly Satisfied Customers
Putting the
Customer at
Contextual the centre Full
Knowledge
Stakeholder Enduring Relationships
Coverage

RPA IP Development Data &

Analytics
Time to market

Blockchain IoT

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Going Deeper, Casting Wider: Business Outcomes

Large Client Metrics Rev per US$1 Million Client

US$ 20 Mn+
US$ 50 Mn+
US$ 100 Mn+

215 20.8

136 99 18.8
53
24 44
FY14 FY19 $ Mn FY14 FY19

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Going Deeper, Casting Wider: Financial Outcomes

Revenue per capita ($cc) Net Income per capita ($)

$70,875 $10,945

$44,738 $10,446

FY14 FY14 - FY19 FY14 FY14 - FY19

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Cash Flow

Cash Conversion Free Cash Flow Free Cash Flow/

OCF to Net Income USD Mn Enterprise Value

100.6% $4,217
4.1%
83.2%

3.2%
$2,101

FY14 FY19 FY14 FY19 FY14 FY19

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 Strong Capital Allocation

100% 53% 44% 104% 97%

$4,233 $4,217
$4,077
$4,090
$3,824

$2,929
$2,939 $2,886
Average Payout
FY15-FY19 : 81%
$1,687
Amt in $ Mn $1,540

FY15 FY16 FY17 FY18 FY19

Free Cash Flow Shareholder Payout

Shareholder Payout as % of Free Cash Flow 21

Unique, Purpose-Driven

In a free enterprise, the community is not just

another stakeholder in business, but is in fact the
very purpose of its existence.
- J N Tata
1839-1904

For every $1 returned to

shareholders by TCS, $0.47
goes back to the community,
giving TCS a unique,
purpose-driven worldview

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 TCS In The Community

Wellness
TCS promotes health and
wellness in all the
communities it works in. We
are title sponsors of leading
Marathons across the globe,
and continuously applying
innovations to healthcare
practices and awareness

STEM Education Skills development

In countries like the UK, North
TCS' Education and Skill
America, LatAm and Australia
Development initiatives cover
facing shortage of tech skills,
the entire life path of students
TCS has devised various
from school to Ph.D. as also
programs and reached over
skilling and adult literacy that
660,000+ students in FY 2019
enables livelihood.
through STEM initiatives to
spark interest in science and
technology

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In Summary: TCS Strategy Driving Differentiated Outcomes
MARKET TRENDS TCS APPROACH OUTCOMES
 More and more industries are  Ramping up Research &  Industry-defining mega deals
leveraging technology to Innovation, co-innovation and
 Thinner competitive set
differentiate themselves collaboration
 Greater pricing power, stabler
 Customers want solutions to  Domain-specific IP
margins, lower attrition rates
business problems and not
 Greater focus on proactive
just technology skills
solution selling

 Expansion of addressable
 Non CIO buyers emerging in  Full stakeholder services market
enterprises
 Higher profile, strategically
more important engagements

 Thinner competitive set >>

 Transformational partners  Leverage TCS’ contextual Lesser focus on pricing
selected based on solution knowledge, Location
quality and time to market Independent Agile, Machine  Embedding us more in
First Delivery Model and business; gives greater
Intellectual Property resilience and visibility

 Greater platformization of  Launch of cloud based  Expansion of addressable

business platforms and new business market
models
 Frees up spends for systems
 Leverage IP portfolio
of differentiation
Annexure
 Latest Earnings’ Financial Highlights
IFRS USD Mn
Yearly Quarterly
FY19 FY18 YoY 1Q20 1Q19 YoY
Revenue - CC $21,265 $19,089 11.4% $5,586 $5,051 10.6%
Revenue - ` Bn 1,465 1,231 19.0% 382 343 11.4%
Revenue - USD $20,913 $19,089 9.6% $5,485 $5,051 8.6%

Gross Profit $8,753 $8,035 8.9% $2,220 $2,090 6.2%

Gross Margin 41.9% 42.1% (24 bps) 40.5% 41.4% (90 bps)
Operating Income $5,347 $4,730 13.0% $1,325 $1,264 4.8%
Operating Margin 25.6% 24.8% 79 bps 24.2% 25.0% (80 bps)
Net Income $4,494 $4,005 12.2% $1,168 $1,082 7.9%
Net Margin 21.5% 21.0% 51 bps 21.3% 21.4% (90 bps)

EPS in ` * 83.05 67.10 23.8% 21.67 19.17 13.0%

* EPS Adjusted for Bonus shares issued during FY18-19

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ThankYou
Thank You