HCL Technologies Ltd Management Discussions.

INDUSTRY

As digital technologies transform business models around the globe, enterprises are increasing their technology spending. Investments in digital, analytics, cloud, internet of things (IoT), cybersecurity and other emerging technologies have been growing exponentially in nearly every large enterprise.

And that growth is likely to continue. For one thing, important business concerns, such as customer experience and real-time data insights, are shifting technology discussions from the CIOs office to the boardroom. In the initial phase of digitization, the early adoption was driven by front-office transformation. Over the last few years, the enterprises have also been investing in middle-office and back-office transformation. These initiatives are delivering significant value to the enterprises and are forming the core strategy for forward looking enterprises, helping them drive significant revenue growth, improved customer experience, reduction in cost and improved operations, which in turn are generating returns on investment that justify broader business and technology transformation projects.

As demand for digital technologies accelerates and cost savings create opportunities to replace traditional technologies, the market for large digital transformation deals and managed services is growing. Technology services companies are investing in software products and platforms that transform them into end-to-end solution providers. They are using mergers and acquisitions to acquire digital capabilities and access into newer geographies.

There is no doubt that the COVID-19 pandemic, the resulting disruption of the world economy and the social upheavals of early 2020 have battered some industries. But the demand

for digital technology has continued to be strong. And while there have been delays in some engagements and shortterm economic slowdowns, there appear to be tremendous opportunities for technology companies to grow in the medium and long term.

To capitalize on this potential, industry players have been investing in sales and delivery capabilities that will be needed in the long term. They have been increasing their presence in client geographies to improve their delivery agility and reduce their dependence on work visas. They are opening delivery centers and innovation hubs at onshore and nearshore locations.

HCL has been at the forefront of every one of these trends. Given our demonstrated ability to execute on our strategy, the next decade holds tremendous promise. Indeed, we fully expect to continue the upward trajectory that we have driven over our last four decades.

HCLS MODE 1-2-3

In a world of constant technology disruption,

HCL Technologies has been successful by making great contributions to global clients transformational journeys, fueling them with emerging technologies like cloud, artificial intelligence, data analytics and several other new technologies. HCL Technologies unique blend of services and products enables clients to achieve this transformation guided by the framework of HCLs Mode 1-2-3 Strategy. Each of the three modes can play a role in clients overall strategy or contribute uniquely as an independent growth strategy over the next decade.

HCLs Mode 1 offers core services in the areas of Application Services, Infrastructure Services, Engineering and Research & Development, and Digital Process Operations. Our Mode 1 offerings enable our clients to become very efficient and agile, helping them to be competitive in their industries. This is attained through extreme automation, efficient delivery and operational agility. Mode 1 looks to leverage the current business and IT landscape by consolidating a firms existing core and unearthing new ways to enhance that core with new technologies.

HCLs Mode 2 offerings help enterprises take the next digital leap through insight-based, experience-centric and outcome- based integrated services that leverage new technologies.

This is offered through specialized services using NextGen technologies such as Digital and Analytics, IoTWoRKS™ (Internet of Things), Cloud and Cybersecurity. Our Mode 2 offerings help our clients reimagine their businesses to remain relevant in the digital age.

Mode 3 offerings represent HCLs vision of creating innovative IP by leveraging an ecosystem model through strategic partnerships. Through both internal and external IP creation, HCLs Mode 3 offerings help clients target specific next-generation opportunities through scalable and ready- to-deploy products and platforms that reduce the time to become future-ready.

The Mode 1-2-3 strategy stands differentiated in the marketplace today, with our clients increasingly demonstrating their confidence in this strategy and our ability to deliver. We will continue to build and invest in our Mode 1-2-3 capabilities to be the partner of choice for our clients, globally. And we do this by continuing to re-skill, train and build the capabilities of our employees to be future-ready.

OUR GO TO MARKET

As clients are adopting new technologies at the core of their business model, HCLs service offerings, products and platforms are organized to solve the key business and technology challenges of specific industries that show a high propensity for growth and impact on the global economy.

Our vertical market-led sales organization for our IT and Business Services has contributed significantly to our industry leading financial performance over the last four years. This vertical alignment is established by building expertise through a team of industry consultants, pre-sales solution architects and industry business development leaders.

J Financial Services

The Financial Services (FS) industry unit is at an exciting inflection point with technology helping redefine priorities and improve outcomes. Traditional banking and insurance organizations are accelerating their digital transformation initiatives at an unprecedented pace, propelled by the actions

of open-banking advocates, peer-to-peer fintechs and nontraditional competitors who are un-levelling the playing field.

HCL has emerged as a strong partner for financial services organizations and has become a natural choice to help address this change. Using domain proficiency and technological expertise, HCL is helping clients in adopting digital technologies to meet changing consumer behavior and setting new standards for customer experience. The impact delivered is significant and has received recognition from clients and analysts.

Our FS industry unit has been at the forefront of delivering key outcomes for enterprises worldwide, with innovations like Digital Avatar - a new mobile/iPad platform with virtual agents that has been leveraged by a US-based F200 home insurance carrier to provide a unique digital home walkthrough experience to customers. We successfully piloted an "API Hub" which integrates and standardizes account Information and payment initiation APIs offered by multiple banks. This solution helps banks save time and effort and reduces the cost of building diverse API ingestion facilities.

We have implemented a multi-country digital bank for a leading European FS organization that enabled a unified customer experience across their web and mobile channels and enhanced overall customer satisfaction.

HCL transformed a large US-based FS organization into a fully digitalized enterprise offering omni-channel customer experiences. With our holistic solutions coupled with a continuous focus on delivery innovation and client delight, we are ideally placed to sustain and enhance our competitive positioning in the FS Industry.

I Life Sciences &

Healthcare Industries (LSH)

HCLs Life Sciences and Healthcare industry unit is poised to play a primary role in digital transformations across leading health and life sciences companies. With the COVID-19 pandemic, an industry that has been historically regarded as lagging behind in adopting digital technologies will now be at its forefront. An immediate focus is on using digital technologies to alleviate the burden on hospitals, delays in clinical trials, reduction of workloads such as elective surgeries and medical testing, and the scarcity of R&D resources.

These challenges have given rise to opportunities in line with the current trend of digital transformation in LSH.

They include an increased deployment of telemedicine as doctors need to overcome lockdowns to treat their patients. Hospitals and clinics are leveraging digital technologies to monitor patient health while remote working has been more widely embraced. In addition, security is not only essential but viewed as a means to increase employee productivity.

HCLs offerings in LSH, including the new remote patient monitoring and telemedicine solutions, are ideally positioned to help businesses meet their goals holistically. Several top global Lifesciences companies and some of large payors and providers are part of our clientele in LSH, wherein we are delivering a broad spectrum of services from our portfolio, including some of requirements that are necessitated due to COVID-19. For instance, at one of our clinical trial clients, we are enabling virtual trials that leverage patient-doctor visits and digital interactions to ensure a scaled and seamless study worldwide.

J Manufacturing Industries

Frequent technology advances are keeping the manufacturing industry in a continual state of disruption, requiring enterprises to reinvent themselves and the way they operate. The COVID-19 pandemic has deeply impacted the industry, with industry leaders expecting a severe resource crunch for the foreseeable future. Supply chains have been fragmented leading to breakdowns in their service delivery.

HCLs Manufacturing industry unit creates smart and scalable next-generation supply chain solutions to help manufacturing companies reshape their business strategies and convert possibilities to reality. Our innovative solutions suite enables manufacturing companies to embrace the digital world seamlessly while preserving years of investment in traditional operational systems. HCL enables the advanced capabilities needed to support new business models, provide insight-driven customer engagement, co-create through a robust partner ecosystem and by leveraging emerging technologies such as IoT, AI/ML, NLP, cognitive computing, AR and VR.

J Public Services Industries

HCLs Public Services industry unit delivers critical services and key outcomes to the travel, transportation, logistics and hospitality industries (TTLH); oil and gas industries (O&G); and aerospace and defense industries (A&D). All of the companies in these industries are facing generational challenges as a result of the COVID-19 pandemic. TTLH companies are rethinking existing frameworks, processes and systems around transport and logistics management. HCL provides solutions spanning remote work, complex upstream engineering and customer-responsive business tools for TTLH and O&G. In A&D, HCL leverages human-centered design led platforms to help companies generate exponential change in their business systems to reprioritize innovation.

Our wide-ranging expertise has delivered substantial results for global enterprises. HCL provided end-to-end, globally integrated digital field engineering services for a US-based oil & gas major backed by our digital workplace products and IP. For a European-based energy and utilities company, HCL is responsible for service management and other projects across multiple locations, deploying software products to manage their multi-cloud environment and drive intelligent automation in IT operations. We are the partner of choice for a French multinational integrated oil & gas company for managing their data centers, digital workplace and application management services.

I Retail and Consumer Packaged Goods Industries (RCPG)

The last financial year has been a very successful period for our Retail and Consumer Packaged Goods (RCPG) industry unit. The impact of COVID on this segment has been quite differentiated. While some of the big box and online retailers have seen very strong demand, most of the retail enterprises have been severely impacted, leading to employee furloughs and store closures amongst concerns for employee and client safety.

Consequently, amid and post-COVID, we see four key trends emerging for RCPG. As a leading technology player, HCL has a pivotal role as each of these trends manifest across the industry as we help our client base adapt to the new normal. The first trend is low/no touch interface with the customer due to social distancing. The second trend is online selling, for which HCLs software product stack, especially Commerce and Unica, can be leveraged for rapid cloud-based rollouts. The third is a flexible and adaptive supply network, whereas the fourth trend is making costs variable to prepare for an uncertain future.

Our unique capability set has delivered key outcomes for RCPG enterprises worldwide. For instance, HCL has helped a leading food retail chain in creating an entire digital platform to enable no-contact home deliveries. For a major C-store chain, we are building a next-generation digital platform with

commerce and fulfilment capabilities, and for an F&B major, we resolved operational challenges through our loT-enabled Smart Shelf Automation System.

J Technology Industry

The technology industry today is going through a period where a confluence of policy-related, technology, and industry changes have created a foundation for upheaval and disruption - times where opportunistic strategies have offered handsome near-term rewards, where new entrants have had the potential to be the better operators, and where convergence in the ecosystem has created unprecedented opportunities for value players.

The HCL Technology industry unit services most of the leading technologies companies in the world in several ways to help them navigate the operating model disruption for the various industries they serve as well as be at the forefront of changing consumer behaviors. Our core engineering, applications and infrastructure services are complemented by the vertical capabilities to help technology companies in their business operations and strategic initiatives.

Our expertise has led to successes with leading Technology industry enterprises worldwide. For instance, we improved the overall user experience of all web and mobile properties of a leading semiconductor company and recently signed a managed services deal with a prestigious software company in the marketing and engagement platform space. Such instances validate our knowhow and fulfil our goal to meet our clients vital requirements in every situation.

I Telecom, Media and Entertainment Industries

Telecom, Media and Entertainment (TME) customers are demanding personalized, time-shift, and multi-device experience, advertisers are expecting better returns on marketing and deeper insights with a high uptake in sales, while the internal enterprise is focusing on connectivity, platforms, elasticity and security. Today, clients are focusing on growing their revenue via converged offerings and new business models with a "connected everything" approach.

The advent of key technologies like 5G, artificial intelligence, internet of things (loT), analytics, blockchain and mixed reality (AR/VR) is driving next-generation experiences and new revenue opportunities. HCL is well positioned to leverage these

emerging technology opportunities with important capabilities at hand, demonstrated by some of these engagements.

For instance, we have engineered a next-generation IPTV/ streaming platform for a fiber-based network of a large telecom firm in North America (NA), as well as a high-end imaging and AI/ML-based fraud detection solution for a leading NA-based distributor of mobile phones and devices.

BUSINESS

SEGMENT

HCL Technologies has been consistently delivering industry leading performance for the past few years. Growing at a CAGR of 14.1% between FY17 and FY20, our success is driven by a robust yet simple strategy: best in class delivery capabilities, a strong innovation ecosystem and above all, the passion of our talented employees. This has resulted in not only industry-leading client satisfaction scores but also a substantial increase in our large client base. Our 100M+ client base has almost doubled between FY16 and FY20.

Our focused approach driven by our Mode 1-2-3 strategy has ensured that more than 30% of our current revenue contribution comes from Mode 2 and 3.

Looking ahead, our focus will be on three broad segments: IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products and Platforms (P&P). The re-grouping into the three business segments is designed to drive internal

synergies, unlock better collaboration and increase client focus. Our go-to-market strategy remains rooted in industry verticals or geography, tailored to the size of the market and specific nuances there and growth opportunities.

Some of the key business drivers that are helping shape our medium and long-term strategy include accelerating digital transformation, fluid digital workplace, cloud migration and consumption, Cybersecurity and Industry 4.0. This section gives an overview of our business segments.

With the radical shifts in market demands over the last 12 months, we see a convergence of business opportunities in IT services. This convergence will result in either end-to- end integrated deals that combine technology and business process requirements or agile digital opportunities that start with small projects and rapidly scale up to end-to-end digital transformation engagements.

The opportunities, as indicated by industry analysts, are significant:

• IT Infrastructure is set to grow to $3.4 trillion in 2020, with data center systems, IT services and communications services expected to grow by 1.5%, 5.5% and 2.1% respectively (Gartner)

• Cybersecurity is predicted to grow from ~ $120 billion in 2019 to ~ $165 billion by 2022, attaining a ~11% CAGR (Gartner, IDC)

• Business Process Outsourcing (BPO) is valued at $405 billion in 2020 and is expected to grow at a CAGR of 5.1% by 2023 (various analysts)

• Digital Technologies and Services is expected to grow to $2.3 trillion in 2023, achieving a five-year CAGR of 17.1% (IDC)

• Enterprise Application Software is expected to be $340.6 billion by 2023, growing at a CAGR of 10.7% from 2018 (Gartner)

• Data Warehousing Processes (including Big Data and Business Analytics) is expected to grow from $189.1 billion in 2019 to $274.3 billion in 2022 (IDC)

• IoT spending will surpass the $1 trillion mark in 2022 (IDC)

• Public Cloud Services is forecast to grow from $227.8 billion in 2019 to $266.4 billion in 2020, up by 17% (Gartner)

• Cloud IT infrastructure will reach $100.1 billion in 2024 with a CAGR of 8.4% (IDC)

• Digital Workplace is predicted to reach $44.9 billion by 2026 at a CAGR of 21.5% from 2020 to 2026 (ResearchAndMarket.com)

Our ITBS segment is strategically positioned to capture these enormous opportunities. We have a comprehensive and mature suite of end-to-end offerings to address the traditional and emerging transformational needs of large enterprises. These constitute the most comprehensive offerings in the industry and are aligned to the three critical building blocks of NextGen enterprises - Digital Foundation, Digital Business and Digital Operations.

Under these building blocks are our key capabilities and service offerings. Hybrid Cloud, Digital Workplace, Unified Service Management and Cybersecurity/Governance, Risk and Compliance are the offerings grouped under the Digital Foundation, which is the evolution of our industry leading Infrastructure services. Consulting, Applications, Insights and IoT are the offerings under Digital Business. IT Operations, Managed Cybersecurity Services (CSFC), and Process Operations are the offerings under Digital Operations. These capabilities are supported and complemented by a robust ecosystem of partners and innovation labs. They are intrinsic components of ITBS that differentiate us and visibly enhance the overall value of our service to clients.

J Digital Foundation

The capabilities we offer as part of the Digital Foundation fall under what we have traditionally called Infrastructure Management Services (IMS). They are at the core of the enormous business transformation that enterprises are enabling by adopting digital technologies.

The challenges that businesses face today have led to a shift in IT strategy. The trend of remote working, the need for collaboration across ecosystems, innovation around products, the need to provide enhanced consumer experiences and the intense quest to secure digital assets have led enterprises to leverage advanced technologies like automation and artificial intelligence, real-time analytics and intelligent and adaptive security. HCL IMS enables Global 2000 enterprises and others to achieve their goals through multiple robust and scalable NextGen offerings.

Alliances and ecosystems play a key role in shaping our offerings under Digital Foundation, enabling us to develop strong practices in alternative commercial and consumption models, modernization of people skills and an operational model driven by IP and products. HCL has excelled in creating partnerships and strategic alliances with global technology vendors and niche solution providers to create joint solutions and build new IP. We have enhanced our capabilities by certifying employees in partner products.

Our Ecosystem Partnerships include Google, Microsoft, Cisco, AWS, Dell, IBM and SAP among others. We also have key strategic partnerships with such companies as Arista, Cohesity, Docker, Mesosphere, Nutanix, Pure Storage, Rubrik, Citrix, VMware, HPI, Intel, HPE and NetApp.

Within the context of Digital Foundation, we offer an array of products and services leveraging NextGen technologies:

Hybrid Cloud Service Offerings

The cloud first strategy (which prioritizes cloud adoption) is giving way to a broader cloud smart approach, which balances adoption to meet the unique and changing needs of an enterprise. The smart approach dictates the use of a variety of hybrid cloud environments that best service the needs of the organization. Hybrid cloud infrastructure, with its software-defined features, intelligent automation, Al-led frameworks, container and API native architectures and catalog-based consumption models provides scalability, flexibility and agility to the enterprise.

Our hybrid cloud services span the entire breadth of consulting, migration, modernization, systems integration, operations, management and consolidation. These services are powered by extreme automation and are designed for a Consume-Configure-Build approach, with customized vertical-led solutions. The application of advanced autonomics and service orchestration that leverage machine learning (ML), artificial intelligence (Al) and cognitive solutions ensures zero-touch migration and operations in an environment that is adaptive, secure, scalable, self-learning and self-healing.

Behind these offerings are HCLs co-innovation labs, dedicated Centers of Excellence (CoEs), a strong partner ecosystem and delivery centers across the globe, which give clients the means to maximize business outcomes from their cloud investments.

Digital Workplace Services

HCL Digital Workplace Services are designed to "put people first" - a key ask of forward-thinking clients who are putting employees at the center of their processes. The goal of this B2E service is to provide employees with superior experience, engagement and productivity through automation and AI-driven solutions. The resulting workplaces are dynamic, intuitive, personalized and provisioned on-time and on-demand.

Our comprehensive suite of user-centric platforms, tools and services reflects industry-leading preparedness to deliver future-ready fluid workplaces powered by a Smart Workplace model. The IP-led model brings an unrelenting focus to helping employees engage with peers, collaborate from anywhere and leverage cutting-edge big data analytics and automation to elevate their productivity.

The key tenets of the Smart Workplace model are:

• Smart IT: Arming IT with real-time contextual data to deliver superior user experience at every touch point

• Smart Machines: Providing detection, correction and healing capabilities across workplace assets

• Smart User: Empowering users with solutions that require minimum intervention/zero resolution solutions

• Smart Spaces: Powering workspaces with IoT and wearables

NextGen Network Services

HCLs Network Services redefine network technology for the next decade. Our industry-leading network technology portfolio is differentiated by an IP and AI-driven orchestration layer. This layer automates NetOps 2.0 through DRYiCE™ NetBot and the cognitive network assessment tool, Nlighten. Our strong position as a network service integrator is supported by a carefully considered network strategy, talent transformation for modernization and unleashing the potential of our IPs.

Unified Service Management

Service Management has expanded its realms beyond IT. Digitalization is forcing organizations to rethink their service models. The need is for on-demand service models that cater to all organizational functions - HR, Admin, etc. These trends are leading to the adoption of Unified Service Management. HCL is continuously scaling its capability to address these new opportunities for technological intervention.

We deliver Unified Service Management capabilities for a large number of clients and this in an integral part of most large outsourcing contracts. We partner with some of the worlds leading Independent Software Vendors (ISV) and use a service-centric framework to replicate the principles of IT Service Management (ITSM) across all domains.

Our key strategic partnerships in this area include ServiceNow, Cherwell, Flexera and DRYiCE™ Software.

Cybersecurity and GRC Services

The drivers of Industry 4.0 are centered around ubiquitous connectivity and digitalization. While new connections and technologies continue to support socio-economic progress, they also invite cyberattacks. And risks will only increase in frequency and impact. HCLs Cybersecurity and GRC Services leverages advanced analytics, AI and ML-based technologies to provide cyber defense to clients.

Cybersecurity and GRC Services is an integral part of our Mode 2 strategy, designed for organizations keen to embrace

a dynamic cybersecurity posture and mitigate uncertainty by neutralizing threats. Keeping true to the mantra - adapt to secure - our Dynamic Cybersecurity framework moves from a static to a dynamic posture. In order to deal with an ever- escalating threat landscape, HCL offers a full spectrum of services that transform IT security and CISO functions from that of a gatekeeper to a business enabler.

With the limited availability of skilled security personnel, organizations need to maximize the effectiveness of their existing team. Our Cybersecurity and GRC services employ experienced and skilled personnel in multi-disciplinary teams, working across NextGen Cybersecurity Fusion Centers (CSFCs) to operationalize the complete managed security services life cycle.

Operating from over 40 locations globally, HCLs Cybersecurity and GRC Services protect some of the worlds largest companies. This includes Global Delivery Centers,

Emergency Response Teams (ERT) and CSFCs in Frisco, TX; Gothenburg, Sweden; Noida, Bangalore and Chennai, India.

Enterprises across the globe, including a leading American financial services group, a multinational oil and gas company headquartered in London, the worlds leading auto parts manufacturing organization and a global dairy nutrition company have successfully used our Cybersecurity and GRC services.

] Digital Business

Organizations worldwide are seeking to deliver superior customer experience and operational excellence. This necessitates reimagining the existing business and technology architecture to create an adaptable, nimble and modular core. The change is being driven by the proliferation of APIs, microservices, low code platforms and DevOps and by businesses substantially investing in Artificial Intelligence and Machine Learning capabilities. This has resulted in the enhanced use of analytics as a powerful means to attain business insights.

A growing number of clients are confidently using HCLs digital and analytics capabilities to drive large-scale operating model changes and modernization programs. We have moved from discrete engagements and proof of concepts to larger digital initiatives ranging from digital strategy and roadmap to full execution at global scale. The acquisition of Strong-Bridge Envision earlier in the year has strengthened

HCLs capabilities in guiding clients digital prioritization and change management programs.

A combination of dynamic technology and industry partnerships, our thought leadership, deep domain understanding and end-to-end digital execution capabilities have enabled us to provide industry leading digital products and solutions.

Key strategic partnerships in this area include Adobe, Salesforce, Pega, Mulesoft, Denodo, TIBCO, Red Hat, Tableau, Appian, Blue Prism, Informatica, Software AG and our own Products & Platform business segment.

Digital Consulting

The digital world has people at its center. To succeed in digital transformation, businesses must focus on both technology and the people who interact with technology.

HCLs Digital Consulting practice brings together decades of deep solution-based technology expertise with best-in-class consulting services. The services are global, outcome based and people-focused. We drive both transformation as well as revenue at scale by aligning technology needs with business goals, from strategy to execution.

Our key consulting services include

a) Digital strategy and planning. Realizing innovative business solutions to retain and grow customers.

b) Industry capability definition and business process optimization. Identifying and defining differentiated capabilities to improve performance and top line growth.

c) Experience strategy and design. Designing and building enterprise-wide experiences that speak to the unmet needs of clients, employees and users.

d) Program and product management. Guiding organizations from product vision and strategy to product roadmaps to development and delivery.

e) Agile delivery transformation. Designing agile operating models that align delivery ecosystems to the performance between customers, capabilities and features.

f) Organizational agility. Creating and executing customized plans to ensure employees have the right level of support, leadership and coaching to support change.

For a global wireless company, we removed complexity for call center representatives, thereby improving the customer experience and creating a truly differentiated way of delivering customer service, resulting in $600M cost savings.

Applications

FY20 saw a significant change in how clients look at their enterprise applications. The focus is shifting toward newer ways of working - agility in operations and a holistic approach to automation, cost optimization and digital transformation. This shift was fueled by innovation using new technologies like digitization, application modernization, analytics, leveraging ecosystems and Software as a Service offerings and integration.

HCL is an established partner with leading enterprise application providers including SAP, Oracle and Microsoft. Our application services are comprehensive, flexible, scalable and customized to meet our client needs. In the SAP space, HCL is making both horizontal and industry IP investments to transform our clients traditional SAP landscape, focusing on S/4 HANA, C/4HANA, ARIBA, and the SAP Cloud Platform (SCP).

We also saw exceptional traction with our solutions in the SaaS-based CRM (Customer Relationship Management), HCM (Human Capital Management), and SCM (Supply Chain Management) spaces, with demand for the former two doubling last year. We expect this trend to continue this year.

HCLs Power Objects delivers digital transformation for clients and helps them maximize the value of their Microsoft enterprise technology investments through our technical and advisory services. Our offerings include adoption and sustainment initiatives, a proactive and highly capable support desk and co-sell-ready IP designed to extend the capabilities of Microsoft Dynamics 365 and accelerate deployments.

We strengthened our market differentiating ALT-ASM framework with NextGen digital operations addressing the changing needs of customers. We currently work with over 100 marquee names in supporting and transforming their application operations.

Artificial intelligence-led automation in application operations saw significant demand with many clients moving from pilots to production deployments of bots. We deployed over 1,000 bots in production for our clients in the last 18 months, coupled with holistic roadmaps for movement to AIOps.

HCLs Integrated DevOps Engineering services based on full stack engineers is increasing traction across industries and delivering key outcomes in ASM services for global enterprises. These include a banking and financial group, a Fortune 500 delivery services firm and a major railroad company.

As a response to COVID-19, all ASM engagements providing 24x7 support to global companies seamlessly transitioned to their backup business continuity plans, ensuring zero impact to clients business and service levels. Our focus continues to remain on creating agile work environments, reducing dependencies on third-party contracts and delivering more from offshore and nearshore locations.

Insights

We take a platform-based approach to providing NextGen insights to our clients. This is augmented by strong industry- aligned solutions and acquisitions-based capability building. Our approach for delivering data driven experience and insights consists of four key pillars:

a) Adaptive Data Platform: A "data first" approach to transform existing data platforms into a future-ready responsive data platform, capable of delivering real-time intelligence.

b) Intelligent Data Management: Decouples the underlying storage ecosystem from data management aspects and focuses on ethical data governance, self-healing data quality, universal metadata management, automated data lifecycle management and master data management.

c) Consumption Based Analytics: For Uberized insights delivery enabled through a functionally or divisionally organized catalog of all data and analytics assets to promote collaboration, reuse, self-service infusing predictability and transparency in analytics services.

d) Applied AI: Delivering AI solutions that are driven by Human Centricity, Design Thinking and experimentation @ scale.

A number of enterprises across the globe have successfully deployed our insights platforms. For instance, our Data Science suite is used to understand customer behavior better and drive predictive analytics. This has maximized the potential revenue streams for a large North American fast food and convenience store client while improving customer experience. In another instance, we deployed our AI and ML-based solutions to reduce global shipment times for a large logistics client, increasing their customer retention and enabling them to capture additional market share.

IoT works™

IoT has large-scale use cases in both the consumer and enterprise segments, especially in asset-heavy industries such as manufacturing, life sciences and healthcare (LSH), transportation, and energy and utilities (E&U).

IoT WoRKS™, a dedicated IoT unit of HCL Technologies, targets organizations that want to maximize effectiveness and improve return on asset investments through best-inclass IoT-driven solutions. These solutions help our clients to transform their businesses by creating more efficient processes, new revenue streams and models that deliver measurable business outcomes.

IoT WoRKS™ uses IP to differentiate itself. These include a Decentralized Trial Solution for life sciences and healthcare; a mature solutions portfolio with close to 40 solutions; and an end-to-end Define, Build, and Run framework across all service offerings. These are combined with a best-in-class delivery ecosystem that uses modern methodologies such as rapid prototyping, an in-house innovation initiative, vibration analysis for predictive maintenance and radar technology for footfall analytics. A host of surround capabilities and services complete the offering: IoT COLLAB™, a space to co-create an IoT-led transformation roadmap with our clients, and an immersive, intensive, customer-centered Innovation-byDesign framework.

IoT WoRKS™ has launched new solutions over the past year to deliver augmented insights and outcomes to our clients.

For instance, a grocery store chain based in North America used our Real-time In-store Insights (RII) Solution to revamp their shopping experience. We uniquely adapted the IoT WoRKS™ IATM solution for an American medical devices company to sense, alert and help prevent leakage in medical devices with a high value and a low shelf life. IoT WoRKS™ also provided its expertise on predictive analytics and asset management modeling for a large utilities company based in the UK.

J Digital Operations

Operations determine how strategy and technology work together seamlessly and securely to deliver maximum value across the functions. From product development, planning, sourcing, manufacturing and warehousing to logistics and services, all functions internally and externally must work in unison. The operations ecosystem must have the requisite capabilities, partnerships, technology and plan to propel efficiency and effectiveness. HCLs Digital Operations building blocks of Integrated IT Operations (IIOPS), Cybersecurity Fusion Centers (CSFC) and Process Operations focus on digitizing and integrating processes across the enterprise, ensuring they stay in harmony.

Integrated IT Operations (IIOPS)

Integrated IT Ops (IIOPS) is a new hybrid operating model. Based on the pillars of the AIOPS approach, cross-skilled teams, operations best practices and cultural transformation, it provides a combined approach of classic Ops Models (ICC, DCOps, AppOps, NetOps) and evolving Ops Models (CloudOps, DevSecOps, SRE/PRE & FinOps). The hybrid model leverages a common foundational approach of Autonomies and Unified Service Management across ITIL/ IT4IT/SAFe Agile models.

HCL is pioneering the concept of IIOPS, defining new frontiers in this field to enhance delivery and operational experiences for our clients. We bring in pragmatic automation through lean, HCLs DRYiCE automation and orchestration tools and simplified processes that drive extreme efficiency and agility into IT operations. We also partner with some of the worlds leading Independent Software Vendors (ISV) to deliver continuous service assurance for their digital transformation.

Our key strategic partnerships include Moogsoft, Dynatrace, Splunk and our own DRYiCETM Software division.

Cyber Security Fusion Centers (CSFC)

Through a combination of an expert team, advanced security analytics, leading threat intelligence and mature process automation, Cybersecurity Fusion Centers (CSFCs) integrate the capabilities of Intelligent Security Orchestration, Automation and Response. Intelligent Orchestration takes a complex and disparate environment of products and processes and weaves them together into a robust system to guide analysts to a fast and effective resolution. Our CSFCs leverage the data collected from the comprehensive IT stack to deliver proactive threat monitoring and comprehensive protection. This helps the security teams share information and collaborate closely with clients and heighten their operational security posture so that they are prepared on time every time for any eventual incident. We have 6 CSFCs, strategically located in Texas (US), Gothenburg (Sweden) and Noida, Bangalore and Chennai (India).

Process Operations

Changing business environments and stressful market conditions are forcing even the most established enterprises into transforming quickly. Evolving customer expectations are disrupting the traditional cost/labor arbitrage of business process outsourcing (BPO) services. Legacy processes are being streamlined through innovative process-centric methodologies to make them more standardized, agile and lean. Enterprises

are doing this with one eye on cost reduction and compliance/ risk management and the other on providing sustained profitable growth and superior customer experiences.

HCL Digital Process Operations (DPO) made an early prediction of this inflection point helping us to radically shift our business model from cost arbitrage-based outsourcing to Process- First, Technology-led Digital Operations. Our strategy around digital operations is a tiered digital operations pyramid focusing on three broad stacks - process architecture, technology architecture and experience architecture. These stacks determine the velocity and magnitude of business success an organization achieves.

Process architecture sits in the middle stack, enabling process transformation using our proprietary process engineering and orchestration tools. Technology architecture lies at the bottom leveraging the underlying technology landscape enabled by autonomics. Experience architecture forms the top of the stack, where domain-led, technology-enabled knowledge workers create a digital workforce to amplify customer experience.

The COVID-19 pandemic has further led to fundamental changes in business models across industries, characterized by new avenues of customer engagement, supply chain resilience, adjacent products/services, alternate fulfillment models and remote workforce management. There is an urgent need to reimagine operations through a human-centric approach that can accelerate human and machine collaboration. To collaborate with human ingenuity, we introduced our newest solution, a fully digital co-worker called ‘digitalCOLLEAGUE. The digitalCOLLEAGUE framework is designed to work alongside a human workforce in the form of chatbots, intelligent analytics for next best action, robotic process automation and insight-driven dashboards. This human-machine collaboration increases top-line growth, capital productivity, cost efficiency, operational effectiveness, customer satisfaction and return on asset investment. It also works as a strong incentive for millennials, who want workplaces that improve productivity, to consider HCL as an employer of choice.

DPO provides technology-led digital operations services to over 100 clients across industries including many Fortune 500/ Global 2000 organizations. With state-of-the-art delivery centers across India, Europe, Ireland, Latin America, Philippines, the US and the UK, HCL DPO leverages its Integrated Global Delivery Model (IGDM) to provide clients with best-in-class services.

HCL has partnerships with leading product organizations centered on building NextGen automation services.

These partnerships enable HCL clients to move faster with innovations in their highly competitive businesses which are being re-defined by a new era in IT solutions.

Key Strategic Partnerships include UiPath, AA, and Blueprism.

Engineering and R&D Services primarily include services across the product lifecycle - from conceptualization, design, engineering and sustenance to new product introduction across varied products and platforms. The advent of new technologies like 5G, AI/ML, Edge Computing, Blockchain, loT, AR/VR, Cloud and 3D printing has revolutionized the ways in which products are being designed, manufactured and serviced.

Digital Engineering, which leverages these technologies to build connected, smart and intelligent products, is driving the next phase of growth for the sector. Key digital themes driving the digital engineering spend include Connected Design, Connected Plant and Connected Products & Services. It also includes collaboration with the ecosystem and offering as-a- service model to create world class consumer experiences.

Key factors driving enterprises focus on digital engineering include changing customer preferences, growing competition, pressure on margins, products becoming commodities and a reduction in product lifecycles. To address these challenges, companies are investing in digital engineering and building Smart Products. They are also looking at upgrading their manufacturing set-up to enable Smart Manufacturing.

Benefits of digital engineering include higher efficiency, better throughput, delivering competitive advantage and improved customer experience.

According to NASSCOM, global ER&D spend reached $780 billion in 2019 with 5.4% YoY growth. It is set to reach $ 1,075 billion in 2025. Of this, digital engineering spend is going to account for 36% of overall ER&D spend.

HCLs Engineering and R&D Services (ERS) division provides Product Engineering, Platform Engineering and Operational Technology services to 65 of the Top 100 R&D spenders across 9 industries. HCLs Product Engineering Services portfolio primarily focuses on designing products aligned to changing client preferences and deploying the latest tools and technologies. Platform Engineering Services cover end-to-end platform ideation, build, modernization and

support services, and also includes platform monetization to help create new revenue streams. Operational Technology Services covers plant engineering and manufacturing operations services to ensure improved factory output. We have a number of service propositions to help our clients in these three broad areas.

HCLs ERS is ranked by Everest Group among the Top 3 global engineering service providers (ESPs) and is ranked as the No. 1 broad-based ESP in the world. HCLs leadership position is recognized by all the leading research and consulting firms in their various competitive benchmarking reports. With our product engineering DNA and over four decades of experience in developing world class products, HCL ERS is uniquely positioned to help our clients in their product transformation journey towards digital. Engineering transformation is a continuous journey where the focus is on time-to-profit and time-to-market. We help our clients accelerate time-to-profit by complementing their R&D efforts and focusing on release activities, bringing in aspects of sales, deployment and monetization upfront into the design. This attention to time-to-market and time-to-profit ultimately maximizes return on innovation. We have partnered with our clients across the globe to launch 1,000+ products and create $50 B+ revenue.

Today, HCL ERS proudly partners with over 330 global enterprises and has long standing relationships with 90% of our top 20 clients. Our unique differentiation is our solution-led, technology-driven and implementation-focused approach. ERS has a strong innovation culture, resulting in IP and strategic innovations, building on that culture by leveraging alliances, startups and key academic research for co-creation and co-innovation with clients. HCLs solution-led approach, with a portfolio of 50+ solutions, helps clients accelerate development and monetize services. HCLs investments in over 80 engineering labs (for example, environmental compliance, certification and benchmarking) and Centers of Excellence (in niche areas such as high- performance computing, automation, imaging, big data and analytics, Industry 4.0, IoT, 5G, Robotics and others) have resulted in an ecosystem of comprehensive engineering services from concept to profit for our clients across domains.

As traditional industry boundaries are vanishing, companies are increasingly investing in digital engineering to drive competitive advantage, improve time to market, enter new markets and improve customer experiences. Best practices are being leveraged from unrelated industries. For example, in the automotive sector many other industries are

converging with significant investments being made by many technology companies.

5G is another technology which is impacting every industry. 4G to 5G is the next big leap in communications technology, promising superfast speed, massive machine- type communication, energy savings and ultra-reliable low latency communication. 5G is a key enabler for a smart and connected world, with a number of use cases around connected and autonomous vehicles, telemedicine, smart factories, smart cities and OTT streaming. HCL has invested in building various solutions to leverage 5G and foster innovation capabilities.

Operational technologies are also seeing a significant change with the adoption of new initiatives and technologies such as IoT, AR/VR, Industry 4.0, factory of the future and predictive maintenance. In the connected world, digital thread and digital twins are gaining momentum to address challenges related to collaboration and optimization of resources. Enterprises are exploring avenues to integrate siloed functions (such as Innovation, Engineering, Manufacturing, Supply Chain, Procurement, Suppliers, After Sales) to improve collaboration and overall improve the performance. Softwarization is another theme which is driving significant investments in industries such as telecom, ISV and healthcare.

Global enterprises are increasingly looking at partners like HCL ERS for scale and domain knowledge as well as best practices from other industries. Given the ever-increasing uncertainty in the market, there is increasing demand for outcome-based pricing and risk-sharing business models. HCL is known for its client-centric engagement models, in which it becomes a partner in our clients transformation journey. Apart from owning the complete product engineering responsibility for selected products, HCL also goes the extra mile to jointly take products to market.

Our Products & Platforms segment comprises the HCL Software Division, Action software, and an IP partnership with DXC, which together account for a significant part of our Mode 3 revenue. In addition, our Mode 3 portfolio of IP-led offerings includes DRYiCE™ Software, HCLs leading solution for enterprise automation and AI-based transformation initiatives, and certain IPs from our Engineering & R&D Services portfolio. (These will be discussed here, although their revenue is classified under the ITBS and ERS segments, respectively.). Products and Platforms segment has grown significantly over the last few years through a combination of organic and inorganic growth initiatives.

J HCL Software Division

Introduced in 2019 to operate HCL Technologies primary enterprise software product business, HCL Software focuses on growing underserved markets which have a tremendous opportunity for innovation. HCL Software develops, markets, sells and supports more than 20 product families in the areas of:

• Client Experience - For delivering impactful client journeys

• Digital Solutions - For enterprise digitalization and productivity

• DevSecOps - For developing operations and security tools

• Automation/Security - For secure automation and unified end-point management

We operate in key segments of the large market for enterprise software. The worldwide low-code development platform market size, which includes our Domino offering, is expected to grow to $27.23 billion by 2022, at a CAGR of 44.49%. The market for unified endpoint management, which concerns our BigFix offering, is expected to grow from $1.43 billion in 2017 to $9.67 billion by 2023, at a CAGR of 37.48%. Through 2022, the Application Security Testing market, which includes our AppScan product, is projected to have a CAGR of 10%. This continues to be a fast-growing segment in the information security space, which is expected to grow at a five-year CAGR of 9%.

HCL Software completed FY20 with strong momentum as it onboarded nearly 9,000 clients and partners and completed over 10,000 sales transactions in total. Among the industry sectors, we see a lot of potential in banking and financial services, healthcare, government and consumer product firms.

HCL Software continues to invest in products and has announced numerous product releases. We have delivered nearly 450 product releases, over 15 major releases and more than 1,400 enhancements. The improvements we have made are greatly appreciated by our clients, who have rewarded us with a 20% increase in our client satisfaction score. The most notable launch this year was Domino v11, representing a milestone in HCLs commitment to modernize and innovate on the Domino ecosystem, and transform over 10 million enterprise- grade apps powering business for more than 15,000 clients. Our major product releases for the year were:

• Digital Experience V9.5 - A digital experience management platform, combining production docker and Kubernetes support with a digital asset management capability.

• Domino V11 - A rapid application development platform that allows businesses to build applications and processes with new enhancements. The Notes Domino V11 bundle features the following add-ons: Designer V11/Traveler V11/Certificate Authority Administrator 3.0 (CAA).

HCL Software has delivered key outcomes for enterprises across the globe. Highlights include a deal with a major European bank for BigFix, our end-point management platform, and an agreement with a leading US-based automotive aftermarket parts provider to be their customerfacing digital marketing and commerce engine.

The outlook for HCL Software is positive for the coming year, assuming that the world economy continues to recover from the COVID-19 pandemic. An excellent financial year preceded us that forged and solidified relationships with thousands of clients that is the foundation for our future. We will continue to gain the trust of our clients with the investments we make in our products.

J DRYiCE™ Software

According to the recent International Data Corporation (IDC) Worldwide Artificial Intelligence Systems Spending Guide, spending on AI systems will reach $97.9 billion in 2023. The compound annual growth rate (CAGR) for the 2018-2023 forecast period will be 28.4%.

DRYiCE™, a dedicated organic IP-based software unit of HCL, is HCLs leading solution for enterprise automation and AI-based transformation initiatives. It focuses on building products for transforming and simplifying IT and business operations by leveraging AI and Cloud. Our exclusive products enable enterprises to operate in a lean, fast and cost-efficient manner, delivering superior business outcomes. The DRYiCE™ portfolio focuses on three core areas: AIOPS, XaaS orchestration and business flow intelligence. It is increasingly recognized as the AI foundation of our clients enterprise solutions through our global delivery capabilities.

DRYiCE™ products have been developed based on the experience HCL gathered while managing some of the worlds largest and most complex IT environments. We have witnessed first-hand how existing software products were unable to fix real-world issues. With DRYiCE™ products, clients have complete control over what to automate, where to automate, and the level of automation implemented.

DRYiCE™ has delivered key outcomes for enterprises across the globe. Some highlights include: a leading US-based life sciences and healthcare company choosing DRYiCE™ Lucy as their Cognitive Virtual Assistant (CVA) for internal employees; a leading European insurance company selecting DRYiCE™ MyCloud to manage and deploy infrastructure-as- a-service (IaaS) and platform-as-a-service (PaaS) for their hybrid cloud environment; and a European networking and telecom company selecting DRYiCE™ iAutomate to enable AI driven intelligent automation of voluminous and repetitive IT related issues.

IActian Avalanche Hybrid Cloud Data Platform

During the previous financial year FY19, HCL acquired Actian, a leading global vendor of hybrid data management and analytics products based in Palo Alto, CA. Actian plays a critical role in enhancing HCLs Mode 3 offerings in data management products and platforms.

As part of our next-generation services, we are also conducting proofs of concepts and pilots for clients to plan, prioritize and deploy transformations to next generation hybrid cloud data warehousing technologies. We are capitalizing on Actians capabilities to create end-to-end hybrid data solutions for all major industry business units.

During FY20 Actian announced Actian Avalanche Real-Time Connected Data Warehouse. This innovative hybrid solution delivers industry leading scalability and price performance and is the first cloud data warehouse to offer enterprise integration capabilities natively built into the product. It enables enterprises to rapidly and inexpensively harness their diverse data sources for use in high performance analytics, both in the cloud and on-premise. This Actian Avalanche offering, which supports the Microsoft Azure, AWS and Google Cloud platforms, features Avalanche Connect™ - an enterprise-class data-integration capability that seamlessly supports connections with hundreds of popular SaaS and onpremise applications.

J Banking Transformation Platform

HCL has an IP partnership with DXC which leverages our functional expertise in banking and our product engineering

capability to modernize the legacy product set across three key areas: Core Banking, Lending and Payments. In Core Banking, we have developed APIs, integrated tools, and migrated key functional modules to offer a cloud-based solution in a hosted model. In Lending, we have enhanced the platform with added functionality and third-party integration.

In Payments, we have created a new cloud-native payment hub architecture for a modern, global multi-tenant platform offering. Since inception, this partnership has positioned HCL as a full-service provider of platforms, solutions and services.

BUILDING OUR BRAND

With a vision of further enhancing its industry leading growth, HCL promotes and positions the business in a holistic manner to build and increase its Brand value, deepen relationships and experiences with clients and ecosystem partners, and enable HCLs Client Partners and sales professionals to maximize their potential. HCL extends its reach through the ecosystem by connecting employees, clients, prospects, influencers and other stakeholders through a series of thought leadership experiences, including global and local forums, events, campaigns, client immersion programs, customer advisory boards and eminence programs. Our focus entails strengthening of value propositions, generating demand through systematic digital campaigns, simplifying and enriching client buying journeys and attracting new clients at scale. Additionally, HCLs Center for Design and Experience (CODE) is our in-house, full capability digital and creative agency supporting the company.

The strategy for marketing the company is strengthened and supported in five key areas: Branding & Influence, Ecosystem Experience, Sales Enablement, Thought Leadership and Communications. The strategy is applied across HCL at company, segment, business unit and enablement function levels.

We have elevated HCLs brand value as a relevant, leading global technology company through platforms such as the World Economic Forum and country-specific