TCS Financial Results

1 Jul 08, 2021 TCS Financial ResultsQuarter I FY ,butarenotlimitedtoourabilityto,managegr owth,intensecompetitionamongglobalITserv icescompanies,variousfactorswhichmayaffe ctourprofitability,suchaswageincreasesor anappreciatingRupee,ourabilitytoattracta ndretainhighlyskilledprofessionals,timea ndcostoverrunsonfixed-price,fixed-timefr amecontracts,clientconcentration,restric tionsoncross-bordermovementofskilledpers onnel,ourabilitytomanageourinternational operations,reduceddemandfortechnologyino urkeyfocusareas,disruptionsintelecommuni cationnetworks,ourabilitytosuccessfullyc ompleteandintegratepotentialacquisitions ,liabilityfordamagesonourservicecontract s,thesuccessofthecompaniesinwhichTCShasm adestrategicinvestments,withdrawalofgove rnmentalfiscalincentives,politicalinstab ility,legalrestrictionsonraisingcapitalo racquiringcompaniesoutsideIndia, ,fromtimetotime,makeadditionalwrittenand oralforward-lookingstatements, scurrentintentions,beliefsorexpectations , FY22 performance Highlights Revenue:-INR Revenue of `454,110 Mn, up QoQ, up YoY-USD Revenue of $ 6,154 Mn,up QoQ,up YoY-Constant currency revenue up QoQ , up YoY-Industry Verticals (ex Regional Markets & Others) up QoQ CC, up YoY CC Profit:-Operating Margin at Margin at flow from operations at of net profit Demand:-Clients $100M+ up by 2 ; $50M+ up by 5.

2 $20M+ up by 11 & $10M+ up by 23 YoY People:-Net addition of 20,409 associates, closing headcount: 509,058-LTM attrition at in IT Services -Over 70%of workforce vaccinated till date; all TCSersand families to be covered by Sep 20214 Growth Summary (INR)383,220 401,350 420,150 437,050 454,110 Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Revenue` FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22Y-o-Y GrowthY-o-Y Growth CC70,080 84,330 87,010 92,460 90,080 Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Net Income` FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Net margin (%)90,480 105,150 111,840 117,340 115,880 Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Operating Income` FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Operating margin (%)*Q2FY21excludeslegalclaimprovision55, 0595,4245,7025,9896,154Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Revenue$Million9251,1411,1801,2671,221Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Net Income$ FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Net margin (%)

3 1,1941,4221,5171,6081,570Q1 FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Operating Income$ FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22 Operating margin (%) FY21Q2 FY21Q3 FY21Q4 FY21Q1 FY22Y-o-Y GrowthY-o-Y Growth CC*Q2FY21excludeslegalclaimprovisionGrow th Summary (USD)Operational Parameters7 Geography (%)Q1 FY21Q4 FY21Q1 FY22Q-o-Q CC GrowthY-o-YCC GrowthAmericasNorth by Market8 Vertical (%)Q1 FY21Q4 FY21Q1 FY22Q-o-Q CC GrowthY-o-YCC & Sciences & & & Markets & by Domain9 GrowththisquarterwasledbyCloudStrategy&T ransformation,NextGenerationEnterpriseTr ansformationandSupplyChainServiceswithMa nufacturing& & Services Integration OurfocusonGrowthandTransformationservice sisyieldingresultsandwearepartneringwith ourcustomersintheirtransformationjourney stothriveinthenewnormal.

4 GrowthinthequarterwasledbyCloudServices, CyberSecurity,Analytics&InsightsandEnter priseApplicationServices. Keygrowth&transformationthemeswhichsawst rongresonancewithcustomersthisquarterinc luded PublicCloud,CustomerExperienceandSecurit y. TCSC ogniX -anAIDrivenHuman-Machinecollaborationsui te,poweredbyMFDM sawadoptionby32customersthisquarter,taki ngtheinstalledbaseto100+ ,customerexperienceenrichment,efficiency & Lines Commentary Dataledsalesgrowthandsuperiorcustomerexp eriencewithadvancedanalytics,arethekeybu sinessdriversforourcustomersprimarilyinB FSI&LS, andDAEzMo & InsightsCognitive Business OperationsGrowthpropelledbydrivingdigita ltransformationofoperationsforcustomers, acrossDataCenter&NetworkServices, ,Captivemonetization,increasedM& ,MFDM andignio Application ServicesAcceleratingadoptionofSaaS/Cloud ,especiallyinareasofe-Commerce&customere xperienceacrosssales&.

5 AndCrystallus areemergingaskeyenablersasenterprisescon tinuetoinvestintransformationprogramsgea redtowardsportfoliodiversification,entry intonewermarketsandmergers& ,andsubsequentlymovingontousingcloudasth emeltingpotforinnovation& Platform ServicesStrongtractionforanintegratedapp roachconsistingofIAM,Data& ,Threatdetection&responseandManagedServi ces, Security10*Last Twelve Months' services revenuesUS$ 1m+ Clients106610961118US$ 5m+ Clients564569586US$ 10m+ Clients382387405US$ 20m+ Clients230228241US$ 50m+ Clients100101105US$ 100m+ Clients484850Q4 FY21 Clients ContributionQ1 FY22Q1 FY21 Client Parameters11 Key Highlights (1/3)Cloud Services SelectedbyanEMEA-basedglobalbrand&leader incar&truckrental, ,andsupportcloudnativeapplications,DevOp sandMicroservicesbasedarchitecturewhichi skeyforapplicationmodernizationindriving DigitalTransformations.

6 SelectedbyamajorAmericanairline,toimprov ebusinessagilityandreliabilityofon-timef lightoperations, sinfrastructureoperationsbycreatinganint egratedServiceDeliverymodelbasedonMachin eFirst principlestoeliminatethesiloedoperations acrossLoBsandoptimizeTCO. Selectedbyaglobalinvestmentbankandfinanc ialservicesfirm,totransformtheircollabor ationexperienceusingaleadingenterpriseco llaborationplatformincludinganend-to-end implementationofcontent,emailmigrationan dunifiedcollaboration. SelectedbyaSweden-basedbankingandfinanci alservicesprovider, SelectedbyaleadingAmericaninsuranceprovi der, ,leveragingacloud-basedSoftware-as-a-Ser vice(SaaS)platformandanapps,connectorsan ddataplatformsuite. EngagedbyaleadingCanadiansupermarket, ,makingthepharmacyoperationsmorepatient- centricandoneofthebestinthebusiness.

7 EngagedbyagloballeaderintheHRservicesind ustry, ,enablesessionmonitoringandembedthreatan alyticsintotheiraccessecosystemandsignif icantlyimprovecyberresilience. Engagedbyaleadingmultinationalfinanceand insurancecorporation,tosetupSecurityVuln erabilityRemediationfactorytobringautoma tionandsimplificationofapplicationvulner abilitymanagement. SelectedbyaleadingNorthAmericanenergytra nsportationcompany, ,toestablishstronggovernanceoverprivileg edidentitiesandenableseamlessgovernanceo fidentities. EngagedbyaEuropeaninternationalmanufactu rerofHVAC solutions, Security12 Key Highlights (2/3) ChosenbyaCanadianmultinationalinsurancea ndfinancialservicesprovider, forWorkspaceforbringingtogetherthecombin edpowerofAnalytics,AIandNLPtechnologiest hroughpre-integratedvaluebuilderscoupled withcontextualizedandpersona-drivenopera tingmodel,improvingefficiencyandexperien ce.

8 ChosenbyDiversey,Inc.,agloballeaderinthe developmentanddeliveryofinnovativeproduc ts,servicesandtechnologiesforhygiene,inf ectionpreventionandcleaningsolutionstotr ansformtheirglobalFinance& basedsolutiontoconsolidateglobalprocesse s,provideservicesfromournearshorelocatio nanddriveefficiency,effectivenessandenri cheduserexperience. SelectedbyEurope'sleadingelectronicsreta iler,topartnerintheirjourneytotransformu serexperienceincluding Smartifying ,AI-ledoperationsthroughTCSC ognix tobringthepersonalizedandcontextualizede xperienceforusers. Selectedbyaleadinghumanresourcesprovider ,tohelptransformtheuserexperience, andignio tohelptransformuserexperiencewithpre-int egratedsuiteofdigitalcapabilitiesofself- heal,analyticsandAIforWorkplace. ChosenbyaCanadianmultinationalbankingand financialservicescorporation, Business Operations, Quality Engineering SelectedbyaUS-basedbiopharmaceuticalcomp any, , ,unlockingsubstantialsynergiesacrosssupp lychain,financeandordertocashprocesses.

9 SelectedbyamajorNorthAmericanfacilityser vicescontractor, ,EnterprisePerformanceandDataManagements olution,tore-imaginethecustomer&employee experiences,andimprovebusinessperformanc e&processefficiencies. SelectedbyanAmericanInvestmentManagement group, Selectedbyamultinationalpharmaceuticalco mpanyheadquarteredintheUS,asapartnerfort heirMasterDataRationalization(MDR)progra mtodriveeffectivemasterdatamanagementand governancetodrivereducedtimetomarket, (LIMS). Selectedbyanautomobilecapitalfinanceserv icescompany, ,gapanalysisandscopeofERP,DigitalAssetsa ndApplications,aswellastheexecutionandmi gration. SelectedbyaJapanesepharmaceuticalcompany ,toenabletheirworkplacetransformationbyr eimaginingHRandpayrollprocessesaswellast oenhanceemployeeexperiencethroughself-se rviceoptionsandautomatedoperations.

10 EngagedbyanAsianautomotivemanufacturer, & Services Integration, Enterprise Application Services 13 Key Highlights (3/3)Analytics & Insights, IoT & Engineering Services Chosenbyamultinationalconsumercreditrepo rtingcompany, scapacitytoshortentheleadtimetoreleaseap roduct,whileimprovingitsqualityachievedl everagingSmartQEandBigDataandAnalytics(B ITS)Platforms. EngagedbyaleadingAmericanconsumerhealthc areandpharmaceuticalcompany,toimproveits customerengagementbyleveragingTCSanalyti cs,cloud-baseddataengineering& (NLP)basedcomplaintmanagementsystemusing aservices-basedsolutionfromaleadingpubli ccloudtoimprovetheendcustomerexperience. ChosenbyaEuropeanpetroleumrefiningcompan y,forenhancingsub-surfacedataanalyticsac rossexploration, EngagedbyXLCatlinServicesSE,aUK-basedins urancecompany,todevelopanddeployanalytic almodelsforproductpricingtooptimallypric eitsinsuranceproductstoitscustomersegmen ts,therebyhelpingtheorganizationdrivesal esandstaycompetitive.