Xchanging Solutions Limited has informed the Exchange regarding Investor Presentation
XSL/SE/2019-20/10
May 29, 2019
The Asst. Vice President, National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E),Mumbai - 400 051 Fax :No. 022 – 26598237/8 Scrip Code: XCHANGING
Dear Sir/Madam,
of
Corporate
Department Services – CRD BSE Limited Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Fax No. 022 – 22723121 Scrip Code: 532616
Subject: Investor Presentation Reference: Regulation 30 of SEBI (LODR) Regulations, 2015
Please find enclosed Investor presentation. This presentation will be available i.e. the Company on http://www.xchanging.com/investor-relations/xsl-content
the website
course
due
of
in
You are requested to take the above information on records.
Yours faithfully, For Xchanging Solutions Limited
Mayank Jain Company Secretary
Membership No. A26620
Address: SJR I Park, Plot no. 13, 14, 15, EPIP Industrial Area Phase 1, Whitefield, Bangalore – 560 066
Xchanging Solutions Limited, a DXC Technology Company
CIN: L72200KA2002PLC030072 Registered Office: SJR I-Park, Plot No. 13, 14, 15 EPIP Industrial Area, Phase 1,
Whitefield, Bangalore, Karnataka - 560 066 India T +91.(0)80.43640000 F +91.(0)80.41157394 www.dxc.technology
May 29, 2019
Xchanging Solutions Ltd.
Investor Presentation
DXC Proprietary and Confidential
Disclaimer
DXC Proprietary and Confidential
This presentation and the discussion may contain certain words or phrases that are forward – looking statements, which are
tentative, based on current expectations of the management of Xchanging Solutions Limited or any of its subsidiaries and
associate companies (“XSL”). Actual results may vary significantly from the forward-looking statements contained in this
presentation due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political
conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government
policies that may impact the businesses of XSL as well as the ability to implement its strategy. The information contained herein
is as of the date referenced and XSL does not undertake any obligation to update these statements. XSL has obtained all
market data and other information from sources believed to be reliable or are its internal estimates, although its accuracy or
completeness cannot be guaranteed. The numbers have also been rounded off in the interest of easier understanding. Prior
period figures have been regrouped/reclassified wherever necessary. All information in this presentation has been prepared
solely by XSL and has not been independently verified by anyone else. This presentation is for information purposes only and
does not constitute an offer or recommendation to buy or sell any securities of XSL. Any action taken by you on the basis of the
information contained herein is your responsibility alone and XSL or its directors or employees will not be liable in any manner
for the consequences of such action taken by you. The distribution of this document in certain jurisdictions may be restricted by
law and persons into whose possession this presentation comes should inform themselves about, and observe, any such
restrictions.
May 29, 2019
1
Company and Business Overview
DXC Proprietary and Confidential
Business Overview
Geographical Presence
Xchanging Solutions is an IT Service provider (Application Engineering Services) with operations in India
It also has operations in USA and Singapore through subsidiaries operating there
The company’s core IT solution offerings range from strategic consulting to application maintenance/support through software development and application implementation services
Other services include integration, customizations, end user services, training, documentation, quality assurance, testing and legacy application migration
It develops IT solutions for industries including insurance, financial services, manufacturing, logistics, real estate, healthcare, media, and entertainment
Corporate Office
Major Customers across the World
The above businesses are conducted through Fixed Price, Time and Material (“T&M”) / AMC contracts
AAA
It also owns a software called Xchanging Messaging Middleware (‘XMM”), used for SWIFT messages for enabling Cross Border financial transactions
May 29, 2019
2
Organisational Structure & Shareholding
DXC Proprietary and Confidential
DXC Technology Company (US)
Shareholding of Xchanging Solutions Limited
Promoter Group
Public*
90.8%
9.2%
DXC Technology India (P) Ltd (India)
CSC Computer Sciences International Holdings Limited, (UK)
3.77%
Xchanging (Mauritius) Limited (Mauritius)
100%
Xchanging Technology Services India (P) Ltd (India)
52.07%
34.96%
Xchanging Solutions Limited (India)
100%
Xchanging Solutions (USA) Inc (USA)
Xchanging Solutions (Singapore) Pte Ltd (Singapore)
Xchanging Solutions (Europe) Limited (UK)
100%
100%
Nexplicit Infotech India (P) Ltd under liquidation, (India)
Xchanging Solutions (Malaysia) Sdn Bhd. under liquidation, (Malaysia)
Represents indirect holding
Note *
Xchanging Solutions (Europe) Limited, Nexplicit Infotech India (P) Ltd and Xchanging Solutions (Malaysia) Sdn Bhd. are dormant entities Key Shareholder in Public Group (Holding above 1%): Katra Finance Limited – 2.7% Holding
May 29, 2019
3
Group Overview
DXC Proprietary and Confidential
May 29, 2019
4
DXC at a glance…
DXC Proprietary and Confidential
130k+ Employees
$21B Annual revenue
AMS 44%
UK&I 18%
N.EUR 16%
S.EUR 8%
AMEA 6%
ANZ 8%
25% Skilled in next-gen
16 Global security operations centers
“Digitized workforce” is now resolving more incidents than largest physical delivery center
AI ML Robotics Automation Analytics Lean
100+ Countries
DXC dynamic talent cloud
Scale & Skills
Agile delivery
40% of incidents auto- resolved/diagnos ed by our “digitized workforce”
3M robot runs, processing 300K incidents each month
250+ Bionix assets deployed across 1,000s of clients
99%+ service levels met
40% reduction in critical incidents
30% reduction in mean time to resolve issues
Excellent client coverage across the globe…
International Public Sector
Healthcare
Diverse client mix
14%
13%
Strong digital capabilities
~6000 Clients
200+ F500 clients
35 NPS
20%
Mfg.
Vertical Industry Expertise
11%
Insurance
15%
Banking
Extended family of practices
12%
7%
8%
$4B Digital revenue
Standardized offerings at scale
11 largest offerings rated as differentiated
250+ global partners
Integrated Solutions
… enhanced further through world-class partner network
Energy
Retail
Travel & Transportation
14 strategic co-investing partners
Deep industry expertise
Industry- leading partners
EG A/S service business
Microsoft Dynamics 365 integration
ServiceNow integration
Industry integration
Extended digital
May 29, 2019
5
DXC Proprietary and Confidential
DXC was created to Lead the Digital Disruption Cycle
230 offerings | 14 families
9 Streamlined Offering Families | 84 Offerings
• Next-Gen Workplace • Cloud • Cyber Security • Service Management • Next-Gen Networks
• Storage & Compute
Platform
• Application Services • Consulting Insurance •
• Healthcare & Life Sciences • Mobility & Social • Banking • Big Data & Analytics
Turn-around strategy announced
Announced $1B cost savings target
2012
2013
Spun off CSRA
Made key acquisitions (UXC, Xchanging)
2015
2016
2017
2014
HPE spin-off announced
2012
Turn-around strategy announced
HPE is established as a new company
CSC & Enterprise Services of HPE announce merger
270 offerings | 9 practices
• Workload and Cloud
Divestitures Services
Solutions
• Mobility workplace Solutions • Mergers, Acquisitions &
• Enterprise Security • Applications Services and
Program Excellence
Management
• Transformation • Business Process Services • Analytics and Data
Workplace & Mobility #1 managed workplace services provider
Security #3 managed security services provider, 4,000+ professionals
Cloud, Workload Platforms & ITO #1 in private cloud
Enterprise & Cloud Apps #1 in application migration to the cloud
Application services #4 in application management services
Analytics 3,500 data scientists/analysts
Business Process Services Top 3 globally
Industry Software & Solutions #1 in core Insurance and Transportation
Consulting
May 29, 2019
6
Company Overview
DXC Proprietary and Confidential
May 29, 2019
7
DXC Proprietary and Confidential
Background and Key Milestones
Company’s name was
changed to Cambridge Solutions Limited pursuant to
Company became
subsidiary of CSC by CSC's acquisition of
scheme of amalgamation
Xchanging Plc
Changed name to Scandent Solutions Corporation Limited pursuant to demerger of IT operations of SSI Limited
Dec 2015
Apr 2009
Incorporated as Scandent Network Private Limited
Oct 2004
June 2006
Mar 2005
XML acquired 75% of
the shares through SPA
Feb 2002
Equity Shares of the Company were listed on the Stock Exchanges
Apr 2017
May 2016
Merger completed and DXC became the parent of Company holding 90.8%
Merger Agreement entered into between CSC, HPE and DXC Technology Company (DXC)
May 29, 2019
8
Operational Overview
DXC Proprietary and Confidential
Revenue Share by Contract Types – T&M / AMC Dominates
Revenue Share by Geography
XMM 24%
Fixed Price 4%
Singapore 27%
India 22%
T&M / AMC 72%
US 51%
The Insurance Marketing and PR Awards 2016
InSurance CIO Outlook ‘Top 10 Core System Solution Providers-2015’
‘Best Newcomer’ award at the In- house Recruitment Awards 2015
Awards & Accolades
Treasury Today Adam Smith ‘One to Watch’ Award (Netsett)
The Technology Solutions Provider of the Year 2013
Global AirRail Award (GARA) 2014 ‘Best Payment Solution’
May 29, 2019
9
Board of Directors & Key Management
DXC Proprietary and Confidential
Name
Designation
Profile
Mr. Chandrasekhara Rao Boddoju
Executive Chairman and Chief Executive Officer
• Played leadership roles spanning Software development, Project and Program management, Global
delivery, P&L Management, Digital Transformation, etc.
• Over 27 years of experience in IT services industry (worked with Wipro Technologies and CSC/DXC for
more than two decades)
• Holds Masters degree in Computer Science & Engineering & Bachelors degree in Mechanical
engineering. Also alumni of IIM-Calcutta
Mr. Shrenik Kumar Champalal
Executive Director and Chief Financial Officer
• Over 17 years of experience in Controllership, Reporting & technical accounting advisory role • Worked in Canada, UAE and UK; led financial reporting integration and automation projects • Shrenik is a Chartered Accountant by profession
Mr. Henry D’Souza
Non-Executive – Independent Director
• 35 years of good experience in multiple industries, including the IT and BPS • Held various positions in different roles and responsibilities in many companies • Henry has completed a Masters Degree in Business Administration (Marketing)
Mrs. Kalpana Tatavarti
Non-Executive - Non Independent Director
• Over 20 years of experience spanning across Marketing, Sales and Leadership Development • Founder of Parity Consulting and Training; Certified Executive coach; also an Angel Investor • She holds Bachelor of Arts in English Literature and Diploma in Marketing and Sales
Mrs. Rama NS
Non-Executive - Independent Director
• Brings in decades of engineering and system design experience acquired during her tenure in ITI • She e-governs Electronics city and is responsible for implementing affordable and sustainable smart city
solutions
• Rama is a gold medalist from Mysore University and is one of the first few women engineers of
Karnataka
Mr. Venkatesh Shastry
Non-Executive - Independent Director
• Over 18 years of executive search and leadership advisory experience • Worked with corporations in India and Asia, hiring for C-suite roles and NED board positions • MBA and a bachelor's degree in economics and statistics from Bangalore University
Mr. Mayank Jain
Company Secretary & Compliance Officer
• Over 9 years of successful experience in Legal, compliances, RBI matters, FEMA matters, Corporate
Secretarial and SEBI Regulations
• Worked with companies like The Hi-Tech Group, Moser Baer, InterContinental Hotel Group • Mayank is a Company Secretary and a qualified Lawyer
May 29, 2019
10
Financial Overview
DXC Proprietary and Confidential
Consolidated
Standalone
In Crores of Rs
31/03/18
31/03/19
In Crores of Rs
31/03/18
31/03/19
Revenue from Operations
Other Income
Total Income
PAT
186
16
202
32
184
Revenue from Operations
15
Other Income
199
Total Income
47
PAT
PAT Margin
16%
24%
PAT Margin
Total Debt
Net Worth
RoE
0
384
8%
0
Total Debt
433
Net Worth
11%
RoE
56
10
66
6
8%
0
188
3%
52
12
64
16
26%
0
204
8%
Source Company
May 29, 2019
11
Key Business Strategy of Company
DXC Proprietary and Confidential
To utilise and exploit technology enablement for growth
•
Invest in the development of new offerings
• Develop innovative value adding customer solutions
• Utilize in-house skilled knowledgeable resources
• Review existing services and products to ensure that they meet customers’ requirements
• Successfully winning new business is managed by
To secure new business from both new and existing customers
– Investing in innovative services and products for both new and existing customers – Ensuring utilisation of technology capabilities and competitive low cost offshore services – Clearly defined offerings and sales strategies that help to attract customers – Continual development of the unified sales strategy which enables selling across business sectors
To ensure successful implementation and delivery of new contracts
To meet customers expectation and contractual commitments
To retain key personnel and recruit new talented individuals
• Detailed implementation and delivery plans with strong management control and oversight
• Use of experienced employees with strong project, change and people management skills
• Standardised procedures in use for the implementation and delivery of new contracts
• Consistently ensuring that service levels are on target
• Optimising cost of delivery through standardisation and simplification
• Ongoing contract management
• Building on existing customer relations
• Succession plan in place for all the senior managers
• Established structure of employee performance and development monitoring
• Clear recruitment strategy and graduate recruitment and development programme attracting high-potential employees
May 29, 2019
12
Thank you.
DXC Proprietary and Confidential