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Contents
Section 1 Company Overview
Section 2 Financial Performance
Section 3 Business Strategy
Investment HighlightsSection 4
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HCL Infosystems: Standing Taller. . . Growing Stronger
. . . In One of the Worlds FastestGrowin ICT Markets
One of the Largest ICT Companieswith India Facin Revenues . . .
Strong Domestic Indian IT Market Growth:2009-13 CAGR -14% (IDC)
129 124
64
(Rs. BN)*
Telecom - Fastest growing market in the worldTele-density of 41% as on July 2009 ((TRAI) and overa billion population
One of the few ICT companies in India covering
Hardware, Software, Networking, Telecom,
223
HP HCL Wipro TCS Infosys
trong roa an su scr er growt
Security Growth in India
HCL is amongst the first Indian ICT Companies toenter the high growth Security Segment
Education & Security segments
3 decades of expertise in total technology solutionswith value-added services in key areas
Growth in Core Sectors: Energy, Power,Infrastructure, Health & Education
Education Sector th
Few Showcase Rollouts
Single largest rollout of ERP
licenses in India with over 60k ERP
licenses. One of Worlds Largest VOIP "India's educational planGovernment to put Rs. 310 BN (USD 6.4 BN) inNational Skill Development
Defence Networks (PAN India)
National Internet Backbone
Broadband Service for Millions
(PAN India)
4
2008-12 Growth: ~ 50% (IDC)*HCL As of 30th June 2009
Other Companies As of 31st
March 2009 DQ Jul 2009
Notes:1. Map not to scale2. Exchange Rate: USD 1 = Rs. 48.15
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Business Model with Multiple Growth Opportunities
Products & Systems Education & Distribution &Security
Indian Domestic ITmarket is growing ata healthy rate of14% (CAGR 2009-
Strong growth inverticals forSystems Integration
Telecom
Learning Solutionmarket is expectedto growsignificantly
~ 50% Growth(2008-12)
Security businessin India isestimated to beUSD 1BN
13)
Strong market sharein Office AutomationProducts:
Power
BFSI
e-Gov
M&E
Industry would runout of graduates in2009-10
.380 BN (USD 7.9BN) by 2012
Projectors: 26%
Copiers: 20%
Defense
Education
Infrastructure
Health
Source: IDC Source: Nasscom Source: IDC Source: Frost & Sullivan
Software and Intellectual Property Development
5
Note:1. Exchange Rate: USD 1 = Rs. 48.15
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Industry Overview: Products & Services
Domestic IT Market Domestic PC Shipment
Products & Services Systems Integration Education & Training Distribution & Marketing Security
78 9
11
13
8
10
12
14
376442
521
7791
105
117
128
784
8811,009
1,160
1,333
700
1,050
1,400
s.
0
2
4
6
317 342 382 428480
111 126147 173
204279
0
350
2009 2010 2011 2012 2013
Hardw are Sof tw are Services Others
Domestic Market Share (Q2 2009)
Source: IDC Industry Verticals Report, 2009 Source: IDC, Aug 2009
Domestic IT Services: Segment Break-up
Other
43%
HP
18%
HCL
10%Other
46%
HCL
15%
HP
12%
H/W AMC
21%
Mana ed
Others
35%
Wipro
2%
Dell
10%
Acer
9%Lenovo
5%Zenith
3%
Zenith
4%
8%
Dell
7%Wipro
4%Lenovo
4%
Services
17%
Application
Integration
16%Apps Hosting
IT Consulting
3%
6
HCL Infosystems continues to be the Market Leader in the Commercial Desktop Segment
Source: IDC, Aug 2009Source: Data Quest, Aug 2009
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Enterprise Products and Related Services
Products & Services
Products & Services Systems Integration Education & Training Distribution & Marketing Security
Products
Desktops, Notebooks & MobileComputing
S4N (Servers, Storage, Security,Software & Network
Middleware Messaging, EMS,Virtualization, UC
IT Infrastructure services
Systems Integration related Services
-
Services
FM Managed Services
Strategic Outsourcing
-
SaaS, ITaaS
Key Partner Relationships
7
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Office Automation Products & Solutions
Products & Services
Products & Services Systems Integration Education & Training Distribution & Marketing Security
Imaging Products& Solutions
Digital Copiers & Multifunction Devices
Digital Duplicators
Projectors
Display & Signage Solutions
Production Printers Audio Visual System Integration
Telecom
Voice Solutions Audio and Video Conferencing solutions
Key Partner Relationships
8
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New Products Launched
HCL Leaptop 38 Series
Products & Services Systems Integration Education & Training Distribution & Marketing Security
HCL Leaptop MTV EditionThe new range of HCL Laptops formobile excitement and enriching
HCL Leaptop 39 Seriesfeatures
Series 39
ower ouse-
500 GB HDD
Made for Indiaproduct
HCL HyosungATMsCBIB
9
Core banking
reaching to allover India
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Systems Integration Business
BFSI & BFSI Coop E-GovComments
Products & Services Systems Integration Education & Training Distribution & Marketing Security
Education Defence
Systems Integrationprojects comprise atleast 2 of the following
3 components Need for significant
Healthcare HomelandSecurity
programmanagement
Procurement frommultiple vendors ofdiverse technologycomponents
Software productsand services
Typical systems
Infrastructure
characterised by
Lumpy revenues
Long gestation
periods
Media &Entertainment
Retail & POS
Need for largeworking capital
10
Power Railways
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Systems Integration Key Verticals
SectorTotal Domestic IT Spend
(Rs BN)Opportunity Areas
HCL InfosystemsOfferings & Solutions
Recent Wins
Products & Services Systems Integration Education & Training Distribution & Marketing Security
Telecom OSS/BSS Solution Expansions Wimax IP/MPLS Expansion Number Portability
Data Centers and ValueAdded Services
Infrastructure: Wimax, Optical Networks,
Active / Passive Roll Out Billing Solutions:
Convergent Billing,Customer Care Solutions
Telecom NetworkManagement Solution
Wimax Rollout IP / MPLS and Broadband
Multiplay Expansion Giga Enet Passive Optical
128145
217
Metro Ethernet Internet Solutions: Content Delivery, Broadband
Network
BFSI Core Banking, Core Insurance Payment Systems Mobile Banking
Smart Card based solutions ATMs and services Core Banking Solutions
End-to-End IT Project for LifeInsurance Company
Core Banking Solution for six
2009 2010 2013
176 193
286
n ras ruc ure ATMs and self service
solutions Multi-lingual Solutions
u - ngua o u ons Branch Rollout ICT Infrastructure Co-Operative Sector
n an o-opera ve uraBanks
E-Governance Smart Card Projects Income Tax
Complete Data-center includingNetworking, storage, security &
Municipal CorporationAutomation
2009 2010 2013
220
Immigration & Visa Pensions E-Procurement Land Records
engineering solution State Wide Area Network Land Records
E-district Solutions State Wide Area Network
Power R-APDRP (Part-A) spend of Field Automation Centralized architecture with
128 146
2009 2010 2013
s. . nplan
IT applications: GIS, Consumer Index,
Billing, CRM, ERP Non-IT areas :
mar e er ng Energy Management ERP Solution Unmanned Sub-station
n egra e or a ea ngDiscom in North India
Smart Metering / AdvancedMetering Infrastructure
Energy Audit Services
1416
27
11
,Smart Energy Management2009 2010 2013
Notes:1. Total IT Spending include Hardware + Software + Services + Others; Source: IDC report2. RAPDRP: Restructured Accelerated Power Development and Reform Programme; Part-A spend shall include the projects for
establishment of baseline data and IT applications for energy accounting/auditing & IT based consumer service centres3. Exchange Rate: USD 1 = Rs. 48.15
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Education & Training
Products & Services Systems Integration Education & Training Distribution & Marketing Security
Business Opportunity Addressing K-12 Segment
Private
Schools
Multimedia BasedEducation
K-12 Education S/w
BOOT Contracts(3y/5y)
Hardware andContent Bundling
Language Labs
Mini ERP
HCL currently is one of the leading ICT suppliers to most of theleading players in the market. As a growth strategy HCL isentering into Education Services Market apart from existing
products business B havin HCL branded own K-12 education content HCL
EducationProjects
ICT @ Govt.Schools
ERP solution
State Education
Language Labs
Schools / Colleges
eLearning Solutions
Hosted / Direct
can bundle innovative solutions to the schools for long termscontracts and increased account stickiness
HCL will give flexible business models, Boot, BOO & out rightpurchase models to the schools
-. mo e s -Education market in India
CDC: Advanced Training Centre for ITProfessionals
HCL Digischool: Multimedia Classroom forIndian Schools
101 Pan India Centers with 12,000 Students Certified
Training Capacity of 60,000 students a year
61 In-Campus academies and expanding
Focus on Real World practical training
HCL Focus Area
Basic H/W & Networking
Advance Networking
CCNA
MCSE
RHCE
12
Security Notebooks
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Distribution: Unparalleled Reach & Capability
Distribution Model
Products & Services Systems Integra tion Education & Train ing Distribution & Marketing Security
Channels
Organised Trade (LFR) General Trade Digilife Stores Alternate - "Internet & Telesales"
Distribution Network Managerial Expertise & Key Strengths
Manage Large Scale Operations with fast turnaround time
Over 700 Re-Distribution Stockiest
750 plus Micro Distributor Partners
Over 93,000 Dealers
Proven ability to scale up Business Billing upto 3,50,000units/day
Ability to micro-range inventory & obsolesce over 1,500
SKUs daily 11,000 plus towns anag ng rece va es or us ness vo umes >
Process led sales force management
Key Strengths
Partner Selection & Management
Customer Care Network
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Training of Channel Partners
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Consumer Products & Services
Products Offering
Products & Services Systems Integra tion Education & Train ing Distribution & Marketing Security
IT
HCL Desktops/Notebooks Net books HCL LCD Monitors, UPS HCL PC Essentials
Kingston D-RAM SanDisk USB Flash Drives Cisco Linksys Wireless Routers Western Digital Hard disk
Telecom Nokia GSM Mobile Nokia Original Accessories
Kingston Memory Cards SanDisk Memory Cards
Apple iPod MP3 Accessoriesonsumer ec ron cs Nintendo
Kodak Digital Cameras
Altec Lansing Speakers
Future Opportunities Gaming
Home Security
Key Partner Relationships HCL Touch Unique Support Service
24 x 7 x 365 Round the clock support
Product Lifetime support
Nation Wide Coverage - 4,000 towns within 1 hour drive
505 own HCL Touch points
Support in 11 regional languages
14
SMS & E-mail based supports
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HCL Security
Service Offerings and Customer VerticalsServices Overview
Products & Services Systems Integra tion Education & Train ing Distribu tion & Marke ting Security
Service
Offerings
Control RoomSolution
SurveillanceSolutions
Aerial SurveillanceSolutions
BuildingManagementSolutions
Fire Detection &
SuppressionSystems
Baggage ScreeningSolutions
Customer
Police Airports & Ports Railways
Banks Hotels Hospitals
Recent WinsDeveloping Own IPR
orpora e n es e g ousEstablishments
Police Bhopal Police for City Surveillance
Bangalore Police for Baggage Screeners
HCL Security is developing an integrated Command andControl Center
Version 1 release intended to be out by Q4 CY 2009,
multiple market oriented version releases MIAL for PIDS
Ports
Strategic
SOA oriented, Scalable, Flexible and Modular, easilyintegrated with Best in Class devices
The product aims to provide actionable intelligence to thesecurity authorities
or urve ance
Goa Airport for Surveillance
Tuticorin Port
CMs House, Karnataka for Surveillance
Ranchi Prisons for Surveillance
15
ns a a ons Chandigarh High Court for Surveillance
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Awards and Accolades
HCL ranks No. 1 compan in IT services, amon top 3 in Desktops as per DQ CSA 2009
HCL ranks No.1 in the Dataquest IDC Best Employer Survey 2009
HCL recognized as Server Leader Account by Intel Corporation (2009)
HCL wins Best Desktop PC Category award by Computer Active (2009)
HCL was honoured with the Gold Certification Merit Award for India ManufacturingExcellence 2008 from Frost and Sullivan
HCL wins the Dun & Bradstreet Rolta Corporate Award 2008 for being leader in ComputerHardware & Peripherals category
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Experienced Management Team
Ajai Chowdhry
Chairman & CEO
Ajai Chowdhry is one of the founder members of the HCL group and has over 38 yearsexperience. He became CEO in 1994 and Chairman in 1999
He has a Bachelors degree in Engineering and been conferred the DATAQUEST IT Man of theYear 2007 Award amongst other awards
J V Ramamurthy
Chief Operating Officer
J V Ramamurthy has over 31 years of diverse industry experience and has been with HCL since
1988. He has been instrumental in expanding HCLs distribution business
He has a Masters degree in Engineering
Sandeep Kanwar
CFO
Sandeep Kanwar has over 25 years of experience and has been with HCL since 1988
He is a Chartered Accountant by qualification
Hari Baskaran
Head of Distribution &Retail
Hari Baskaran has over 35 years of experience and has been with HCL since 2003
He has a Bachelors degree in Engineering and is an alumni of IIM - Bangalore
Rajeev Asija Rajeev Asija has over 26 years of industry experience and has been with HCL since 1983. He is
Head of Enterprise
Solutions
r v ng t e nterpr se o ut ons & erv ces v s on nc u ng t e ystems ntegrat on us ness
He has a Bachelors degree in Engineering
M Chandrasekaran
Head of Office
M Chandrasekaran has over 25 years of industry experience and has been with HCL since 1984.
He also heads the Education business He has a Bachelors degree in Engineering
RothinBhattacharyya
CEO, HCL Security Ltd.
Rothin Bhattacharyya has over 26 years of business management experience and has recentlyjoined HCL in 2009
He has a Bachelors degree in Arts (Hons) Economics and has diverse experience in Sales,
17
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Contents
Section 1 Company Overview
Section 2 Financial Performance
Section 3 Business Strategy
Investment HighlightsSection 4
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Key Financials
Quarterly Revenue
3098 31293018
31333027
Rs.crores
Quarterly PAT
JAS 08 OND 08 JFM 09 AMJ 09 JAS 09
66
55 5860 59
s
Rs.cror
19
JAS 08 OND 08 JFM 09 AMJ 09 JAS 09
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Segment Highlights
Revenue Revenue
Computer Systems Telecommunication & Office Automation
876
818
875
971
817
22302314
2153 21782222
Rs.crores
Rs.crores
PBIT PBIT
JAS 08 OND 08 JFM 09 AMJ 09 JAS 09 JAS 08 OND 08 JFM 09 AMJ 09 JAS 09
48
37
41
5248 63 61
68
54 56
Rs.crores
Rs.crores
20
JAS 08 OND 08 JFM 09 AMJ 09 JAS 09 JAS 08 OND 08 JFM 09 AMJ 09 JAS 09
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Segment Results
Rs crores
Q1 FY 10 Q1 FY 09 FY 09Particulars
Unaudited Audited
.
a) Products and Related Services
- Computer Systems & Other Related Products and Services (Gross) 817.4 875.9 3,540.0
Less: Excise Duty 28.5 39.7 126.1
- Computer Systems & Other Related Products and Services (Net) 788.9 836.3 3,413.9- 2 221.6 2 229.8 8 874.5
, . , .
b) Internet & Related Services 16.7 9.4 46.1Total 3,027.2 3,075.4 12,334.5Less: Intersegment revenue 28.2 16.7 82.1
Net Sales / Income from Operations 2,999.0 3,058.8 12,252.4
2. Segment Results (Profit (+) / Loss (-) before Tax and Interest from each segment)
a) Products and Related Services
- Computer Systems & Other Related Products and Services 48.3 47.6 177.3- Telecommunication & Office Automation 55.6 62.7 246.2
b) Internet & Related Services (5.4) (1.4) (17.8)Total 98.4 108.9 405.7Less:
i) Interest Expense 8.4 9.6 44.7ii) Other un-allocable expenditure net off 11.1 8.5 25.1
iii) Un-allocable income 4.1 5.3 15.4Total Profit before Tax 83.0 96.0 351.3
3. Capital Employed (Segment Assets - Segment Liabilities)a) Products and Related Services
- Computer Systems & Other Related Products and Services 1082.2 981.1 875.6
- Telecommunication & Office Automation 216.9 314.0 187.5
b) Internet & Related Services (10.7) (2.2) (8.8)
c) Unallocated
- Li uid Assets 200.0 115.4 268.5
21
- Others Unallocated (including investment in assets given on finance lease) (7.7) 12.5 25.9
Total Capital Employed 1480.8 1420.8 1,348.8
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Contents
Section 1 Company Overview
Section 2 Financial Performance
Section 3 Business Strategy
Investment HighlightsSection 4
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Business Strategy
Continue to row S stems Inte ration and IT Services Businesses
1
Continue to row the Market Share for IT Hardware Products2
3
- -
4
Optimize utilization of distribution network by cross-selling new products and expand
5
distribution channels
6
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Contents
Section 1 Company Overview
Section 2 Financial Performance
Section 3 Business Strategy
Investment HighlightsSection 4
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Key Investment Highlights
Strong understanding of the Indian IT Market with over 3eca es exper ence
Ex ertise in executin S stems Inte ration Solutions
Strong ICT Domain Knowledge and wide range of IT Products
InvestmentInvestmentHighlightsHighlights
and IT Solutions
Experienced Management & Entrepreneurial Culture, Track
25
record of Innovation
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