who we are - jefferiesconfidential ©2012 syntel, inc. safe harbor this presentation includes...

Investor Overview

First Quarter 2013

Confidential ©2012 Syntel, Inc.

Safe Harbor

This presentation includes forward-looking statements,

including those with respect to the future level of business

for Syntel, Inc. These statements are necessarily subject to

risk and uncertainty. Actual results could differ materially

from those projected in these forward-looking statements as

a result of certain risk factors set forth in the Company's

Annual Report on Form 10-K for the year ended December

31, 2012, the Company's Quarterly Report on Form 10-Q for

the quarter ended March 31, 2013 or from other factors not

currently anticipated.

2


Overview

BACKGROUND Founded: 1980

Global Headquarters: Troy, Michigan

IPO: August, 1997 (NASDAQ / SYNT)

GLOBAL PRESENCE

15 Global Development Centers (12 India, 3 US)

SIZE LTM Revenue: $742 Million

Global Employees: 22,179 (1Q 13)

Performance Market Cap: ~ $ 2.5 Billion

5-year CAGR: Revenue 17%, EPS 24% (2007 – 2012)

3

Pune Chennai


What We Do

Strategic Outsourcing

Information Technology: application development, maintenance and

integration, infrastructure management

Business Process: consulting and management, BPO/KPO

Client Value Creation

Integrated IT/KPO

Global Delivery Service

Process Excellence

Vertical Alignment

• Banking/Financial Services

• Insurance

• Health Care

• Retail

• Manufacturing/Automotive

4


Successful Business Evolution

5

Client

Value

Delivered

Technology

Skills

Technology

Solutions

Business

Outcomes

0

100

200

300

400

500

600

700

1980

1985

1990

1995

2000

2005

2010

KPO

Applications

Outsourcing

Y2K

E-Business TeamSourcing

Cloud

Analytics

Mobility

Revenue ($M)

Business

Agility


Our Differentiators

“Customer for Life”

Philosophy

Industry Focus

Blue Chip Enterprise Clients

Long Term Partnerships

Technology &

Business Process

Domain Expertise

Industry Solutions

Integrated

IT-KPO

Quality

Delivery Execution

People

Infrastructure

Operational

Excellence

IP Assets

Methodologies, Tools, Frameworks and Accelerators

6


High Growth Market with Secular Tailwinds

Drivers of Offshore Services growth

Cost reduction/business efficiency

Flexibility, Speed-to-Market

Increased adoption – Existing Services

• Verticals, Geographies, Clients

New Services, Client Focus

Technological innovation

Growth Statistics

NASSCOM projections:

• FY 2013 (March) : 10.2%

• FY 2014 (March): ~12%-14%

20/20 vision

Long-term framework (not guidance)

• Growth at or above market growth

• Balanced by prudent investments

to capture market opportunity

7

India IT/BPO Exports

FY10 - FY20E ($B)

FY 10 FY 11 FY 12 FY 13E FY 20E

Source: NASSCOM Strategic Review 2013,www.nasscom.org/future-outlook;

NASSCOM press release dated November 12, 2012 ; NASSCOM’s FYE is March

FY 14E

http://www.nasscom.org/future-outlook




Banking & Financial Services

Insurance Healthcare & Life Sciences

Retail, Logistics & Travel

Manufacturing

Application Lifecycle Management

Migrate – Modernize - Maintain

End to End Test Management

Automation Framework

Enterprise Data Management

Big Data Analytics

Remote Infrastructure Management

Service Design & Operation

Cloud Strategy

Private & Public Cloud Enablement

High Value Middle & Back Office

Industry Solutions for BNFS, INS & HCLS KNOWLEDGE PROCESS

IP Driven Services

INFRASTRUCTURE SERVICES

BUSINESS INTELLIGENCE

TESTING

CLOUD

iTAP TM (Patent Pending)

SMARTDATA ©

SAMI ©

Centrali TM

Optimai TM

MACH

CcAT

IDENTEON™

8

APPLICATION SERVICES


Industry Alignment for Tailored Solutions

Banking & Financial Services

Insurance Healthcare & Life Sciences

Retail, Logistics & Travel

Manufacturing

Recon

Fraud

Analytics

Mobile Banking

Compliance

Policy Admin &

Claims

ACORD

Compliance

Reporting

ICD-10

Electronic

Health Records

Healthcare

Banking

Point-of-Sale

Testing

Multi Channel

Customer &

Retail Store

Analytics

PLM

Engineering

Services

Supply Chain

Do

ma

in

Ex

pe

rtis

e

Ta

ilo

red

S

olu

tio

ns

Syntel University – Training & Certification

Centers of Excellence – Industry Solutions & Accelerators

Industry Product Alliances

Banking

Capital Markets

Cards &

Payments

Personal

Commercial

Life &

Retirement

Payer

Provider

Pharma & Med.

Devices

Merchandizing

Stores & Multi

Channel

Logistics &

Supply Chain

Automotive

Aerospace

Industrial

Ind

us

try

Fo

cu

s

9


Syntel’s Strategies for Long-term Continued Growth

10

Expand Current Relationships Increase wallet share with Top 5 clients

Significant opportunity to mine clients 3-30

Cross-sell services

New client relationships in target verticals

Referrals from existing clients

Create stable, long-term relationships

Partnerships & Alliances

Develop New Relationships

Expand service offerings

Deepen domain knowledge

New markets

Capitalize on long-term globalization trend

Continue Investing in Platform & Channel


Investments in People

11

STRATEGIC HIRING

Client Partner Program

Domain Experts

Practice Leads

Diversified Talent Base

SERVICES & RESOURCES

New Service Offerings

Centers of Excellence

Building Quality, Depth & Breadth

Sufficient “Unbilled” Resources to

Meet Needs

ENHANCED HR PROGRAMS

“Best-in-Class” Approach

Improved Scalability, Reduced Attrition

Productivity Focus & Rewards

UPGRADED TRAINING

Domain Training (University Approach)

Client Partner Training / Mentoring

State-of-the-Art Training Centers

Campus Partnerships


Investments in Infrastructure

15 Global Development Centers 12 in India (Mumbai, Chennai, Pune, Delhi) 3 in U.S. (Phoenix, Nashville, Memphis)

Accelerating Campus Approach Client Comfort, “State of the Art” Facilities Attract & Retain Top Talent SEZ / Tax Benefits

100+ acres; Potential capacity 25,000-30,000 77-acre Campus in Pune, India 29-acre Campus in Chennai, India

Plans for future expansion and investment

New 100-acre campus in Tamil Nadu under development

New Philippines facility to open in mid 2013 Flexibility, Scalability, Disaster Recovery

12

Pune, India Pune, India

Chennai, India

Financial Highlights


Apps

Outsourcing

Long-Term Track Record of Profitable Growth

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

2007 2008 2009 2010 2011 2012

$30

$60

$90

$120

$150

$180

$210

$240

$270

2007 2008 2009 2010 2011 2012

$200

$250

$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

$800

2007 2008 2009 2010 2011 2012

14

Revenue ($M) Earnings Per Share

Operating Income ($M)

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

2007 2008 2009 2010 2011 2012

Global Headcount

E-business TeamSourcing KPO

$642

$338

$410 $419

$532 $2.94

$1.52

$2.10

$2.86 $2.73

$212

$63

$98

$125

19,484

11,709 12,363 12,567

17,383

$724 $4.44

$138 $121

21,407


Attractive Long-Term Total Return (2007-2012)

15

Source: FactSet


Staffing2%KPO

16%

2013 YTD Revenue Profile (through 3/31/13)

16

Financial Services

54%

Health Care16%

Other10%

Retail5% Insurance

15%

By Service Offering By Vertical

Maintenance

49%

Development

33%

Vertically Diversified, High recurring revenue profile


11,70912,363 12,567

17,383

19,484

21,40722,179

5,000

10,000

15,000

20,000

25,000

2007 2008 2009 2010 2011 2012 1Q13

Headcount Metrics (through 3/31/13)

17

73% 73%

79%

75%76% 76%

74%

65%

70%

75%

80%

85%

2007 2008 2009 2010 2011 2012 1Q13

16.4%

14.2% 14.3% 11.0%

14.8%

Global Headcount

& Attrition

Global

Utilization (average)

15.7% 12.4%


4Q12

$187.8

8.9%

45.2%

15.0%

30.2%

22.0%

$1.19

1Q13

$189.1

10.8%

41.1%

13.7%

27.4%

23.8%

$1.11

2012

$723.9

12.7%

43.5%

14.2%

29.3%

22.7%

$4.44

+/-

+0.7%

+1.9%

-4.1%

-1.3%

-2.8%

+1.8%

-7.0%

1Q13 Financial Performance

18

Revenue ($M)

Y-o-Y growth

GM %

SG&A %

OM %

Tax %

EPS


Annual Guidance

19

2012 Act Dec-12 Oct-12 Jul-12 Apr-12 Feb-12

Apr-13 Feb-13

Revenue ($M) $723.9 $720 - $722 $730 - $735 $730 - $740 $730 - $755 $720 - $750

Op Margin 29.30% 28% - 29% 25% - 27% 19% - 21% 19% - 21%

Visibility* 99% 91% 78% 58%

EPS $4.44 $4.26-$4.29 $4.36-$4.40 $3.90-$4.00 $3.40-$3.65 $3.10-$3.35

CAPEX ($M) $32.30 $30 - $35 $40 - $50 $50 - $55 $50 - $55

Revenue ($M) $785 - $815 $780 - $810

Op Margin 25.5% - 27.5% 26% - 28%

Visibility* 80% 58%

EPS $4.25-$4.50 $4.15-$4.45

CAPEX ($M) $60 - $65 $60 - $65

*To the low-end of revenue guidance range


Syntel Summary

High Growth Market with Secular Tailwinds

20/20 vision

Differentiated Market Positioning

Unique Status

Broad & Synergistic Service Offerings

Vertical & Sub-Vertical Specialization

Relationship Business Model

Track Record with Blue-chip Clients

Client Expansion Opportunities

Investments

Financial and Operational Excellence

Solid Growth, Margins, and Total Return

Strong Balance Sheet

20

Unique

combination of

size, capabilities

and culture drives

long-standing and

profitable client

relationships

who we are - jefferiesconfidential ©2012 syntel, inc. safe harbor this presentation includes...

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