HCL: Pioneers of Modern Computing

12 May 2010

"Any sufficiently advanced technology is

indistinguishable from magic."

- Arthur C. Clarke

Building Technologies of the Future

2

What’s Inside

About the HCL journey………….………..……………3-6

Snapshot of the enterprise

HCL Firsts

The three eras of HCL Technology

The bottom-line …………………………………………6-11

HCL Business Model

HCL Technologies

HCL Infosystems

The differentiating factors

Partnerships

Strategic Acquisitions

Exploring further…………………………………………12-13

Latest news of HCL

HCL Cares

3

HCL - Snapshot

Employees

62,000

Operations spanning

26 countries

Global Presence

USA, UK, Finland, Poland,

Puerto Rico, Brazil, China,

Malaysia, Singapore, Australia,

Czech Republic, and India

Delivery Facilities

Offices in 170 cities,

500 points of presence reaching

4,000 towns

India Presence

93,000 outlets in

over11,000 towns

Distribution Network

Financials

Total Revenues: $ 5B

EBITDA: $ 600M

Hardware, System Integration,

Networking Solutions, Managed ISP

Services, Homeland Security, and ICT

Distribution

HCL Infosystems

Indian Market Focus

Product Engineering & R&D, Enterprise

& Custom Applications, Enterprise

Transformation Services Infrastructure

Management, and BPO Services

HCL Technologies

Global Market Focus

4

HCL Firsts

1st IT major to

start mainstream

advertising

1st offshore site started in

Belfast - laying the

foundations of GDM

1st truly indigenous computer

8C. Shipped same time as

Apple, three years before IBM

PC.

1st home

computer for

India – “The

Beanstalk”

1st to value employees

over customers

1st to cross the

100,000 unit

milestone in the

Indian Desktop PC

market.

1st

Can Do & Will Do

1st to engage in

mature global

partnerships

1st to offer multi-

service delivery

5

HCL in Technology: The Three Eras

1976 - Making Dreams a Reality

Hindustan Computers Ltd. is born

1970s & 80s - The Pioneering Years

Develops the first indigenous micro-

computer at the same time as Apple

and 3 years before IBM's PC in 1978.

This micro-computer virtually gave

birth to the Indian computer industry

1990s - Years of Consolidation Building Technologies of the Future

Designs medical

implantable device

for pain relief

Creates Flight

Management systems

for the world's most

advanced aircraft

Empowering space researches and oilfield

exploration with High Performance

Computing

Enters into JV with HP, Nokia and

Perot Systems

Launches India’s first Home

Computer - “The BeanStalk”

Pioneers remote infrastructure

management, now one of world’s

best performing Infrastructure

providers

HCL’s R&D is spun-off as HCL

Technologies - marks advent into

software services

Addressing end to

end solution

requirements in the

Security &

Surveillance domain

Acquires AXON - the largest

acquisition ever by an Indian IT

company

6

HCL Business Model

Engineering

and R&D

ServicesNetworking

& Network

Integration

Distribution &

Retail:

ICT, Telecom

and Imaging

Products

BPO

InfrastructureEnterprise &

Custom

Applications

Technology

IT Manufacturing

Global presence in 26 countries

AmericasBrazil

Puerto Rico

USA

Europe Belgium

Czech Republic

Finland

France

Germany

Italy

Netherlands

Poland

Sweden

Switzerland

UK

AsiaChina

Hong Kong

India

Israel

Japan

MalaysiaSaudi Arabia

Singapore

UAE

ANZAustralia

New Zealand

AfricaSouth Africa

7

HCL Technologies - Touching the Globe

Value-centricity driven by customer insight

Customer centric value offerings establish the

difference between a provider and a partner. The

difference comes from unique customer insights

backed by competencies and validated by

customer experience .

1

How we do it…

Multi-Service Delivery - Only organization with full

service range of IT infrastructure, applications &

BPO services

3

HCL understands transformational challenges

Performance

Business Alignment

Cost and ROI

Predictability

2

Among India’s top 5

service providers in

short span of 7 years

Vineet Nayar

CEO - HCL Technologies

Portfolio and Geo Mix

Revenue: USD 2.5 Bn

Revenues tripled in Five Years (Highest CQGR in the industry)

8

• 93,000 outlets , covering 11000 towns

• Largest pool of trained manpower handling 2.5 million

support incidents per annum

• Support base of over 3 million assets in 75000+ sites

• 1200+ support locations coverage by team of 5000+

engineers

HCL Infosystems - Touching India

Largest manufacturer of PCs

State-of-the-art manufacturing for PCs, business servers,

workstations, color monitors, etc

1

Leading System Integration organization

Pan-India SI solution provider in verticals like Power,

Telecom, E-governance, Railways, Retail, BFSI, Media &

Entertainment, Health, Infrastructure, Education etc

2

Largest ICT distribution and retail Network 3

26%

70%

Computer

systems

Telecom and

Office Automation

4%

Internet &

related services

Services Footprint

Emerging businesses

• HCL CDC - centers to bridge skilled manpower gap

which exists in the IT industry

• HCL Security - to make the world a much safer place to

be in with its range of state-of-the-art end to end

technology solutions for security and surveillance

4

Ranked “Best IT Employer in India” by

DataQuest – Sep 2009

To read further, visit hcl.in/business-streams.asp

Ajai Chowdhry

Chairman & CEO, HCL Infosystems

Revenue: USD 2.5 Bn

9

The Differentiating Factors…

1Six young entrepreneurs

leave their secure corporate

jobs with a dream that the

microprocessor would

change the world

Entrepreneurship

2Instilling confidence and

nurturing entrepreneurs

internally

3Empowering and enabling

employees to take charge

completely…thus fostering a

culture of Intrapreneurship

Partnership

1Partnering and living the partnership is in our

DNA – we have fostered such relationships

right from our inception

2Nurtured and grown with partners

Employee First

10

Partnerships: The Growth Drivers

Product Partnerships

1977

Leading position in Office

Automation and Laptops in

India

1981

Over 25 years of scripting an ear of

computing across the Microprocessor

1985

Over 20 years of strategic relationship that has seen the

computer evolve from a computing device to the centre of

the Digital World

1996

Dominant position in mobile handset

market in India

2004

Partnering in computing and providing

IT Services

Joint Ventures

1991-96

Created the HP brand for

computers in India

1996-2003

Significant IT Services

with quarter billion

dollar enterprise value

2001-05

First Indian BPO Global

Delivery Centre,

currently employing

2000 UK nationals

2002-05

Largest financial service

offering widest range of

Capital Market Services

2005

First Japan- India hi-tech

JV for Product

Engineering Services

Strategic Alliances

1996

Largest development (R&D) facility

outside Cisco. Gold partner for the

Indian market

2005

Partners with Boeing for 787

Dreamliner programme

2005

HCL sets up first Power PC

architecture design centre

outside of IBM

2006

Industry First “End-To

End” Product Lifecycle

Solution for OEMs

2007

Partners with CA for Threat

Management Solution Products.

End to End Product Research,

Development & Support.

2007

A Strategic partnership with Misys to

open new markets and drive innovation,

quality improvements and speed to

market for key Misys financial services

solutions in high growth economies.

11

Strategic Acquisitions

Axon group Plc.

HCL acquired Axon Group plc, a leading UK-based SAP consulting

firm. The acquisition is one of the biggest acquisition from an Indian

IT company in recent times

1

CapitalStream

HCL acquired Capital Stream, Inc., a US-based industry leader in

lending automation solutions in February 2008

2

Liberata Financial Services

HCL acquired Liberata Financial Services (LFS), a leading UK-

based PO provider in July 2008

3

Control Point Solutins

HCL acquired Control Point Solutions, a leading provider of voice,

data, and wireless Telecommunications Expense Management

(TEM) services in August 2008

4

Inorg

anic

gro

wth

/T

he

Acquis

itio

ns

Tra

il

HCL follows a thorough and diligent selection process of proactively identifying value-centric

acquisition opportunities for long-term strategic growth

Some of HCL’s recent acquisitions…

12

Latest Updates…

Declares HCL among world’s top 30

most influential companies and one of

the world’s top five Emerging

Companies to Watch

Shiv Nadar, Founder - HCL, receives the

Padma Bhushan award, third highest

civilian recognition bestowed by the

President of India for his contribution to

Indian industry and societyRecognize HCL’s Employee

First Philosophy as the

world’s most modern

management

IBM and the other multinationals are

becoming increasingly nervous about

the fifth-biggest Indian outsourcer,

HCL Technologies

For other latest happenings, visit hcl.in/media.asp

HCL wins FT ArcelorMittal Boldness

in Business Award

HCL is No.1 employer in India & Asia

- Hewitt and Dataquest

HCL is featured as a case study in

a global best-seller

Unveiled “HCL ME” - Laptops based on need of

today’s mobile consumers seeking Excitement

on the go

Shiv Nadar wins the CNBC Asia

Business Leaders Award 2009 for

CSR, and the CNBC India Business

Leader of the Year 2009

13

Technology That Touches Lives…

Volunteer driven

social activities

School Intervention Programs (SIP) Environmental Conservation

and Healthcare Campaigns

HCL has one of the most

progressive policies promoting

sustainability in operations to

have least stress on the

environment

HCL tops Greenpeace e-waste management chart

HCL tops major Indian companies progressively

deploying policies & practices to eliminate harmful

chemicals from e-products

For further reading – visit hcl.in/corporate-governance.asp

Corporate Governance

Caring for nature

HCL believes that strong corporate governance practices should be integral

to all activities of its Group Companies to ensure efficient conduct of the

affairs of the Companies, while upholding the core values of transparency,

integrity, honesty, and accountability

About the Foundation

Committed to the creation of a more equitable, meritocracy based society by empowering

individuals to bridge the socio-economic divide. To that purpose, focus on the rather

underdeveloped disciplinary areas in India related to philanthropic transformational education,

creativity and art.

Vision

“”

www.Vidyagyan.in

www.ShivNadarFoundation.org

www.SNUniversity.in www.KNMA.inwww.SSN.edu.in

An India top 10 private

engineering college,

envisioned to be a

global knowledge

institution enabling

world class scientific

research

A landmark educational

initiative for meritorious

rural underprivileged

children, completely free

Proposed University with a

vision to create a centre of

excellence in education at

par with premium education

institutions world wide

Aimed at instilling a deeper

appreciation and promotion of

modern and contemporary

Indian art by making it

accessible through a world

class museum

-14-

www.shivnadarfounda

tion.com/shiksha

Accelerated technology-

enabled literacy and

enhanced learning for

students in rural & semi-

urban India, including for

adults, towards an educated

& empowered India

OTHER BEQUESTS

Rajiv Gandhi Foundation -

Education & upliftment of muslim

& dalit girl children in key

backward districts of Uttar

Pradesh

ISB - Founder, Executive Board,

ISB, leading Management school

in India

PHFI - Board Member & Active

Contributor

TNI - Building & training potential

of local youth in Chhindwara

Education Art

www.hcl.in