Tata Elxsi : Financial Reporting Document

Q4 FY24

Earnings Presentation and Fact Sheet

23 April 2024

Disclaimer

This fact sheet has been prepared by Tata Elxsi Limited (the "Company") for information purposes only and does not constitute, or form part of any offer, invitation, inducement, or advertisement to sell or issue, or any solicitation or initiation of any offer to purchase or subscribe for, any securities of the Company, nor its distribution forms the basis of, or be relied on in connection with, any investment decision or any contract or commitment to purchase or subscribe for any securities of the Company in any jurisdiction.

This fact sheet does not constitute a recommendation by the Company or any other party to sell or buy any securities of the Company. The Company assumes no direct or consequential liability for any errors in or reliance upon this material.

The information presented or contained in the fact sheet is current as of the date and is subject to change without notice. Neither Company does not undertake to update any such information after the date hereof.

This fact sheet is not intended to provide any tax, legal, investment, accounting, financial, or other professional advice on any matter and may not contain all information that may be material. Past performance does not guarantee or indicate future results. Reproduction of the fact sheet in whole or in part, or disclosure of any of its contents, without the prior written consent of the Company, is strictly prohibited.

Message from the CEO and Managing Director

Manoj Raghavan

CEO and MD

"Financial year 2024 has been a year of consistent operational performance with a revenue growth of 13%

despite global macroeconomic uncertainties, and volatility in the media and communications industry over the last few quarters. We have done well to maintain industry leading EBITDA margins at 29.5% for the year, even while we continued to invest in expanding our talent base through all four quarters, with a net addition of 1,535 Elxsians through the year.

During the financial year, our transportation business grew strongly at 24.6% YoY, and now accounts for 49.9% of our overall Software Development Services (SDS) revenues. OEMs now constitute over 56% of the transportation business, and we are now embedded into the SDV programs of 5 global OEMs.

We are transforming our customer base across industries, with a significant shift towards OEMs in the automotive industry and operators in the media and telecom industry, while we continue to invest in deepening our key customer relationships. This is reflected in the strong growth in our Top 10 and Top 25 customers across the company.

I am pleased with our overall performance and resilience in revenues, margins, and customer additions through the year in a volatile macroeconomic environment. We are entering the new financial year with a strong commitment for growth, and continued confidence in our differentiated design-led engineering capabilities. This is backed by strong customer relationships, addition of marquee logos, large deal wins, especially in SDV, investments in AI and GenAI, and a strong deal pipeline for the year ahead."

Integrating Design and Engineering

We had laid down a strategy of integrating our design business deeply with our key industry verticals, complementing our software and digital business with a design-led proposition.

This is now complete, with a seamless end-to-end proposition from ideation to market introduction. This is enhancing our competitive differentiation, providing early visibility into customer product roadmaps, and creating larger downstream development deals.

Over 90% of IDV revenues are now directed to customers in the three key verticals, while the remaining (approximately 0.8% of company's revenues in FY'24) comprise of innovation and design-led projects in other industries, including consumer packaged goods, retail, energy and utilities, and manufacturing, adding diversity to the application of Design Digital and seeding possibilities for future verticals for the company. This has been

classified as 'others' in the segment report.

Starting with this quarter, we are reporting this integrated view of our Industrial Design and Visualization business in all three verticals, and not standalone. Software Development Services (SDS) combines the erstwhile EPD revenues and IDV revenues into the respective verticals as one segment, with Systems Integration and Support (SIS) constituting the other segment.

Revenue

• Reported Revenues at Rs. 3,552.1 Cr., +13.0% YoY
• Revenue in CC terms grew by 9.6% YoY

Profit

Financial

Highlights

FY'24

• EBITDA at 29.5%; PBT at 28.5%
• PBT at Rs. 1,048.7 Cr, +11.9% YoY
• PAT at Rs. 792.2 Cr, +4.9% YoY

Segment Highlights

• Transportation growth at 20.4% YoY in CC terms, aided by large deals and sustained traction in Software Defined Vehicles
• Healthcare growth at 7.6% YoY in CC terms, driven by new product engineering and regulatory services
• Media and Communications declines by 2.6% YoY in CC terms, amidst a challenging industry environment

Tata Elxsi - Driving Sustainable and Profitable Growth

Key Strategy Pillars and FY24 performance

Markets Balanced Presence across Key Markets - Best Manage Risks

US	40%	Europe	40%	Rest of World		20%
FY24	38.3%	FY24	39.6%	FY24		22.1%

SDS Verticals Leadership in Chosen Verticals - Capture the Opportunity

								Healthcare	20%
Transportation	40%		Media & Telecom	40%
FY24	49.9%		FY24	35.3%		FY24	14.0%

Customers		Grow Wallet Share - More with Less
50 M+ US$ FY23		1	Top 10 FY23		Active Customers FY23		222
	48%
	FY24		2	FY24	53%	FY24		209

Transportation - FY24 Summary

24.6%	1,724
1,384
FY'23	FY'24	In INR Crores

Engaged in Software Defined Vehicle Programs for 5 global OEMs

Business Mix: Revenue from OEMs over 56% in FY24

KEY DEALS IN FY'24

• Chosen as a strategic partner for the SDV Organization of a Global Automotive OEM
• Strategic partner for a SDV program by a Global Automotive OEM for Infotainment, ADAS, and EV software
• TETHER Connected Vehicle Platform selected by a Top 5 Automotive OEM
• Design and development of Level 3+ autonomous driving system for commercial

vehicles	New Automotive Design &
Engineering Center in Pune

Media & Communications - FY24 Summary

1,215	0.2%	1,218
FY'23		FY'24	In INR Crores

Moving up the value chain: Revenue from operators now at 70%

New growth markets: Expansion into LATAM and MEA

KEY DEALS IN FY'24

• Design Digital multi-year UX transformation program for a leading operator in MEA across 25 countries
• Transformation of video services across multiple LATAM countries
• 5G Orchestrator and Service Automation Suite for network transformation
• Proactive engineering consolidation large deal for a leading MSO

Healthcare & Lifesciences - FY24 Summary

10.8%	485
438
FY'23	FY'24	In INR Crores

Foundation for accelerated growth: Addition of 5 marquee customers

Strong traction in Connected and Digital health: Investing in Digital Therapeutics Platform TEcare

ODC for Dräger Medical to Drive Critical Care Innovation

KEY DEALS IN FY'24

• Design-led(NPD) deal from a Global Healthcare company
• Innovation and re-engineering project of a critical care device platform
• Multi-yearregulatory transformation program for a European medical device leader, leveraging AI and automation

Leading with AI and GenAI

AI Centre of Excellence (AI CoE)

• Deep domain knowledge + AI Expertise applied to real world scenarios and workflows
• Next-genCoE at Bengaluru with over 350 AI / GenAI experts

Partnership with Leaders

• NVIDIA, AWS, Microsoft, Google, Intel, Brainchip
• Tata Elxsi AI Lab at Indian Institute of Science (IISc) equipped with NVIDIA GPU infrastructure for advanced research in AI/ML

Industry Focus

• AI innovation task force for each of the three verticals
• Industry relevant use cases addressing CX, Productivity, Design, Automation and Testing needs of our customers

25% of entire talent base to be AI ready by Q3 FY25

INNOV@TE Gen AI Hackathon 2024 in

collaboration with AWS