TCS Financial Results

1 Oct 08, 2021 TCS Financial ResultsQuarter II 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 `468,670 Mn, up YoY-USD Revenue of $ 6,333 Mn,up YoY-Constant currency revenue up YoY Profit:-Operating Margin at Margin at flow from operations at of net profit Demand:-Clients $100M+ up by 5 ; $50M+ up by 17.

2 $20M+ up by 19 & $10M+ up by 31 YoY People:-Net addition of 19,690 associates, closing headcount: 528,748-LTM attrition at in IT Services4 Growth Summary (INR)401,350 420,150 437,050 454,110 468,670 Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Revenue` FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22Y-o-Y GrowthY-o-Y Growth CC84,330 87,010 92,460 90,080 96,240 Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Net Income` FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Net margin (%)105,150 111,840 117,340 115,880 120,000 Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Operating Income` FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Operating margin (%)*Q2FY21excludeslegalclaimprovision55, 4245,7025,9896,1546,333Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Revenue$Million1,1411,1801,2671,2211,301 Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Net Income$ FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Net margin (%)1,4221,5171,6081,5701,622Q2 FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Operating Income$ FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22 Operating margin (%)*Q2FY21excludeslegalclaimprovisionGro wth Summary (USD) FY21Q3 FY21Q4 FY21Q1 FY22Q2 FY22Y-o-Y GrowthY-o-Y Growth CCOperational Parameters7 Geography (%)Q2 FY21Q2 FY22Y-o-YCC GrowthAmericasNorth by Market8 Vertical (%)Q2 FY21Q2 FY22Y-o-YCC & Sciences & & & Markets & by Domain9 Service Lines Commentary StrongdemandforGrowth&Transformationserv icesascompaniestakealong-termviewoftheir businesses,withimprovingglobalvaccinatio nlevels&businessoutlook.

3 Broad-basedgrowthforourservicesledbyClou d,EnterpriseApplicationServices,Analytic sandIoT. Keygrowth&transformationthemeswhichsawst rongresonancewithcustomersthisquarterinc lude CloudModernization,Customer&EmployeeExpe rience,CyberSecurity&Automation. QETC ustomerExperience(CX)Assuranceplatformha sachievedthemilestoneof100clientswithin3 yearsoflaunch. TCSwasrecognizedasGoogleCloud s2020 BreakthroughPartneroftheYear. TCSistheleaderindrivingAzureproductionde ployments,leadingto#1positiongloballyinA zureConsumptionRevenue(ACR) & Services ,DAEzMo ,DecisionFabric ,customer& & InsightsCognitive business OperationsTCSC ognix andMFDM ,NetworkandF& continuestomakestrongstrideswiththecusto merinstalledbasecrossing150andcustomersd erivingbusinessagility,enhanceduserexper ience,operationalresilienceandP& ,andhavingsecuredresilience, , ,isseeingstrongtractionandnowhas50+ ,includingIdentityandAccessManagement, & Security ServicesEngineering & Industrial Services, ,VehicleEngineering,& , ,supplychain,andhumancapitalmanagementso lutionsleveragingSAPS/4 HANA& Application Services10*Last Twelve Months' services revenuesUS$ 1m+ Clients10761138US$ 5m+ Clients565609US$ 10m+ Clients386417US$ 20m+ Clients228247US$ 50m+ Clients97114US$ 100m+ Clients4954 Clients ContributionQ2 FY22Q2 FY21 Client Parameters11 Key Highlights (1/5)

4 Cloud & Cyber Security SelectedbyTransportforLondon,todesign,im plementandoperateanewsmartmobilitysystem thatwillreimaginethetaxiandprivatehireli censing& DigiGOV ,linktovehicleinspections,administration , ,enablechannelshiftandfuturerequirements includingconnected,shared,electric,auton omousvehicleregistrations. Selectedbyaleadinghomemerchandiseretaile r,forbuildinganefficient,scalable,resili ent,andsecureenterprisedataplatformwitha robustarchitecturesupportingstateofthear tcapabilities, ChosenbyanAmericansupercenterretailchain , ,improvisecostingandjournalentries. EngagedbyoneofUSA slargestgroceriesretailers, ,scalable,resilient,andsecureservicestoe nablerichercustomerexperience. SwissRehasselectedTCSasastrategicpartner todesign& , ,TCSisworkingwithSwissRetobuildthecorefo undationforstate-of-the-artclientservice sandhelpbusinessexpansiontonewmarkets.

5 SelectedbyaleadingAustralianmediacompany , , ,whileimprovingtheflexibility,agilityand operationalefficiencyofthecontactcenters ervices. SelectedbyoneofUK'sleadingsupermarketcha ins, ,threatdetectionandresponse,firewallandn etworksecurityservices. Selectedbyaleadingmanufacturerofpaper-ba sedpackagingsolutions,asthepreferredpart nerformanagedsecurityengineeringservices andimprovingoperationalresilienceacrossi dentityandaccessmanagement,networksecuri ty,endpointsecurityanddatasecurity. SelectedbyaleadingAmericansustainableene rgygenerationanddistributioncompany, (SOC),endpointsecurity,vulnerabilitymana gement,datasecurity,networksecurityandIA Mservices. SelectedbyanAustralianretaildrinksandhos pitalitycompany, , Highlights (2/5)Consulting & Services Integration, Enterprise Application Services EngagedbyaleadingNorthAmericabasedmedica ldevicescompany, SelectedbyWabtecCorporation, Selectedbyadistributorofdentalandmedical productsandservices, ,increaseretentionandlowercostofsales.

6 Cordis,aworldwideleaderincardiovasculara ndendovascularmedicaldevices, ,Analytics,WorkplaceServicesinaMFDM operatingmodeltobetterserveanddelightCor disteammatesandcustomersglobally. CarrefourBelgiumpartnerswithTCStodrivean end-to-endBusinessTransformationProgramo nSAPS/4 HANA,leveragingdeepexpertiseinretail, , M&S,amajorBritishmultinationalretailer, , , Selectedbyaleadingconsumergoodscompanyin Europe, ,build,andimplementbrandnew,greenfieldpr ocessesandapplicationstosetupthenewentit yasanagileD2 Ccompany, , Engineering & Industrial Services, Analytics & Insights ,createnewandenhanceddriverorderinginter face, +CustomerswillbemigratedtonewOrderingpla tformandsupport~125K+vehicleOrders. EngagedbyaUS-basedleadingmediaandenterta inmentcompany,toimplementaunifieddataexp erienceplatformthatwillprovideareusablef rameworkandData-as-a-Servicetoallitsdown streamusers& Rabobank,aleadingEuropeanBankhaspartnere dwithTCStorunaGlobalBusinessPartnerManag ementprogramtoimplementcontractlifecycle management& SelectedbyaEuropeancloud-basedlocationpl atformandtechnologycompany,tobuildnaviga tionalcontentmanagementandaGeographicInf ormationSystemfornextgenerationtechnolog ypoweredfeaturessuchasautonomousdriving& ,reliablerouting,androbustgeocodersaspar toftheplatform.

7 SelectedbyaEuropeanMultinationalOil&gasc ompany, ChosenbyanAmericanmultinationalaerospace &defensecompany,totransformitsapplicatio necosystemwithfocusonmodernization,ratio nalization& , Highlights (3/5) AustralianInstituteofCompanyDirectors(AI CD) ChosenbyaleadingSwissbasedpharmaceutical company,toprovidehumancentric, AMiddleEastbasedmediaplatformandcontentp roductioncompany, ,originalTVshowsanddocumentaries. 'InsightsDrivenExperience'platformonalea dingdigitalmarketingproducttoprovideanom nichannelpersonalizedexperiencetovisitor sandcustomerswithabilitytomeasurecustome rbehavior&deploytargetedcampaigns. Chosenbyamultilateraldevelopmentfinancia linstitution, ,customerexperienceandspeedtomarket. Chosenbyaleadingglobalpharmaretail&healt hservicescompany, ,improvetimetomarketandcustomerexperienc eTCS Interactive, Quality Engineering & Transformation SelectedbyalargeUS-basedutilitycompany,t oembarkonamulti-yeartransformationjourne yacrossmultiplefunctions:coreutilitymete ring,finance, FrameworkalongwithTCSC ognix todrivedigitaladoption,andprocessautomat ionbringinginefficiencies,agilityandenri chingexperiencefortheircustomers.

8 SelectedbyaleadingUS-basedautomobilemanu facturingcompany, solutionsuiteforAgileServicesManagement, andSoftwareAsset&Configurationmanagement servicestoenhancecustomerexperience&impr oveprocessefficiencies. ChosenbyaEuropeanpharmaceuticalmanufactu rer,totransformtheirpersonaaligneduserex perienceandenhanceproductivitybyadopting digitalnativecapabilitiesleveragingTCS tools&frameworksincloud&analytics. SelectedbyaleadingAmericancorporationinp rintanddigitaldocumentproductsandservice sindustry, SelectedbyaEuropeanintegratedoilandgasco mpany, forWorkspaceinAgileProductbasedOperating Model. TCSwillenableCEMEX sGlobalHRDigitalTransformation,whichinvo lvesTechnology, ,000. ChosenbyNXPS emiconductors,aDutchSemiconductorManufac turer,totransformtheirInfrastructureOper ationsglobally,includingServiceDesk, andignio poweredsolutionstodrivetransformationofo perationsforimprovedcustomerexperience& , business Operations 14 Key Highlights (4/5) Apoteket,Sweden ,growthanddigitaltransformationforthegov ernmentownedpharmacytoprovidesuperiorcus tomerexperiencetoApoteket (MFDM )tobringnext-gentechnologiesandautomatio nframeworktoacceleratethistransformation .

9 EngagedbyMarksandSpencer,aleadingUKretai ler, ,TCStransformedbusinessprocessesandempow eredthebusinesstomakevalueaddedstrategyd ecisions,usingtheindustryleadingcategory managementtoolsandautomateddatadrivendec isionsupport, 'deliveryincluded,businessprocessconsult ancy,configuringandmigratingtoclassleadi ngtools,andprovidinginnovativepointsolut ionstoenhancetheoverallprogramoutcomes. EngagedbyMTNS outhAfricatotransformCX, ,anEnterpriseDigitalTwinplatform,whichen ablesoptimizationthroughrisk-freebusines sexperimentation. BuildXmoduletovisualizerolloutscenarios, predictandpre-empttimeandbudgetdeviation sanddesigntheoptimalrolloutpathfordelive ringquickercustomerconnections. ConvergeICTS olutions,alarge,end-to-endhigh-speedfibe rbroadbandproviderinthePhilippines, isenablingConvergetoreimaginecustomerjou rneyswithsimplifiedprocessesandhyper-per sonalizationbasedoncustomerlifetimevalue .

10 AleadingEuropeanHomeImprovementGroupComp anyhasselectedTCSOmniStore ,anaward-winning,unifiedcommerceplatform , 'sagnosticity, ,TCSOmniStore willbedeployedinalltheirItalystoresinacl oudhostedmodelandmeetingItalyfiscalandre gulatory. AmajorNorthAmericanTelcohaschosenTCStoas sistinthesuccessoftheirrecentlyannounced M& ,cloud,AIandfrontofficetohelpdeliverauni fiedomni-channelexperienceforthebrand. AleadingCanadiancommunicationsandmediaco mpanychoseTCSasamanagedservicespartnerto rapidlyscaleNetworkDesign,Engineeringand Operationscapabilities,leveragingourprov enfactorybasedmodelforbothWirelineandWir elesstechnologiestherebyacceleratingthei r5 Greadiness. Selectedbyalargehealthcarefirmformultipl estudies,withitscutting-edgeadaptivetech nology&poweredbyAI/ML,TCSADD willsignificantlystrengthenoversighteffe ctivenesswithitspredictive, 'sAIbasedself-learningcapabilitiestopred ictanomalieswillenhancequalityandreducer isk&resourcestobeingsafeandeffectivemedi cine.