1. Welcome to the 23 rd Annual General Meeting

2. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Financial Performance 2003 - 04 V. Balakrishnan Company Secretary and Senior Vice President - Finance

3. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Safe Harbor This presentation may contain certain forward looking statements. The company may not achieve results as expressed or implied by such forward looking statements. Actual results could differ materially from those expressed or implied in such forward looking statements due to a number of factors including those discussed under the head "Risk factors" in the company's filings with the United States Securities and Exchange Commission. Do not place undue reliance on these forward looking statements. This presentation contains references to findings of various reports available in the public domain. The company makes no representation as to their accuracy or that the company subscribes to those findings. They are provided only by way of information.

4. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Highlights *  Achieved billion dollars in revenues during the year  Continued to be the largest listed software exporter in India  Achieved a revenue growth of 41% (in $ terms) as against our guidance of 27% in April 2003  119 clients added during the year  Net addition of 9,758 employees during the year * Consolidated

5. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Highlights  Proposed 3:1 Bonus issue  Recommended one - time special dividend of 2,000% (Rs. 100 per share)  Recommended a final dividend of 300% (Rs. 15 per share)  Paid billion dollar bonus to all employees – approximately US$ 1,000 per employee

6. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 1,809 2,266 The year at a glance 3,623 4,761 Income (Rs.cr) 31% 3,544 4,695 Export Income (Rs.cr) Gross Profit (Rs.cr) 32% 200320042003200420032004 25%

7. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 The year at a glance 1,272 1,584 Operating Profit (Rs.cr) 1,159 1,470 PBT (Rs.cr) 958 1,243 PAT (Rs.cr) 25%27% 30% 200320042003200420032004

8. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 The year at a glance 50% 48% Gross Profit (%) Operating Profit (%) PAT (%) 35% 33% 26% 200320042003200420032004

9. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Pricing pressure continued… Variation in Per-capita revenues (in US$ terms) * FY 00FY 01FY 02FY 03FY 04 Onsite 8.0%28.9%4.4%(2.5)%(2.9)% Offshore 16.9%22.3%(7.6)%(4.7)%(2.6)% Blended 19.8%27.0%(4.4)%(0.8)%(5.1)% * Software services

10. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 US$ – Re rate 20032004 % As at 31st March47.5343.40 (8.69) Average rate for the year48.3545.78 (5.32) The Indian rupee had appreciated …

11. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our response… Strong volume growth FY 00FY 01FY 02FY 03FY 04 Increase in billed person months Onsite5,2447,8424,748 12,59614,184 Offshore 5,00613,61816,796 17,89338,102 Total 10,25021,46021,544 30,48952,286 Change in billed person months (%) Onsite82.767.724.4 52.138.6 Offshore 26.356.644.6 32.852.7 Total40.460.237.738.847.9 Utilization rates Including trainees (%)72.967.470.177.673.5 Excluding trainees (%)79.478.372.982.282.1

12. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our response… Continued to spend more on sales and marketing infrastructure FY 2003FY 2004 Marketing offices (Nos.)3031 Employees (Nos.)280275 Brand Building (Rs. cr)2934 Brand Building exp / Revenue (%)0.80%0.72% Sales & Marketing cost (Rs. cr)266.98335.08 Sales & Marketing cost / Revenue (%)7.37% 7.04%

13. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our response… Maintained tight control on General & Administration expenditure FY 2003FY 2004 Total General & Administration cost / Rev. (%)7.46% 7.29% Total No. of Employees15,35623,377 G&A Personnel1,069 1,337 % to Total Employees6.96% 5.72%

14. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our response… Actively hedged our net forex receivables ($ mn) FY 2003FY 2004 Forward foreign exchange contracts outstanding as at March 3188143 Forward contracts booked during the year324759

15. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04...and delivered on our promise * As per US GAAP - 2003-04 (Guidance Vs Performance) * Consolidated Guidance Performance

16. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Strategic investments  Made a provision of Rs. 9.24 crore for strategic investments during the year  The provision was based on the review of their financial condition as well as the business environment in which they operate Rs. Cr Cumulative investments up to March 31, 2004153.13 Cumulative billings up to March 31, 2004208.58 Less: Provisions / write-off of investments(55.35) Less: Accounts receivables provided for / written-off(10.51) Net benefit142.72

17. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Acquisition of Expert Information Services Pty Limited, Australia  Acquired 100 % equity in Expert Information services Pty. Limited, Australia (Expert). The transaction value was approximately AU$ 32 Mn  Expert is a leading IT service provider in Australia, specializing in design, building & integration of business solutions  Expert, founded in 1994, has a client base of medium and large enterprises spanning across industry sectors  Expert has a strong history of controlled growth and profitability  Subsequent to acquisition, Expert has been renamed as ‘Infosys Technologies (Australia) Pty. Limited’  The company has a total head count of 375 as on March 31, 2004

18. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Formation of a subsidiary in China  Formed a wholly-owned subsidiary – Infosys Technologies (Shanghai) Co. Ltd, in China  Will invest up to US$ 5 Mn in the subsidiary  Main focus is to tap the growing domestic market in China  To hire from the local talent pool and leverage their language skill sets to deliver services for the other markets in Asia-Pacific region

19. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Formation of Infosys Consulting, Inc.  Launched Infosys Consulting, Inc. in Texas, with an investment of up to US $ 20 Mn  Infosys Consulting, Inc. will be a wholly-owned subsidiary of Infosys  A new generation consulting firm – an unconventional approach  Plan to assemble a dream team of top consultants from large consulting firms  To offer our clients more competitively priced projects, practical ways to increase competitiveness and a much higher return on their consulting dollar  A further step towards best Global Delivery Model

20. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Revenue segmentation

21. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Geographic segments * 2002-2003 2003-2004 N. America Europe ROW India * Consolidated

22. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Business segments * 2002-20032003-2004 DevelopmentMaintenance Re-engineeringPackage implementation ConsultingTesting Engineering servicesOther services Products * Consolidated

23. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Vertical domains * 2002-20032003-2004 ManufacturingInsurance Banking & Financial ServicesTelecom RetailEnergy & Utilities Transportation & LogisticsOthers 16.4% 14.3% 23.3% 11.4% 6.8% 9.7% 2.9% 15.2% 14.8% 12.9% 23.7% 11.6% 7.1% 10.3% 3.0% 16.6% * Consolidated

24. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 36.7% 63.3% Project segmentation * 2002-20032003-2004 Fixed Price Time and Material 34.1% 65.9% * Consolidated services

25. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Onsite - offshore segmentation 2002-20032003-2004 Onsite Offshore 54.7% 45.3% 53.0% 47.0% Revenue Effort 2002-20032003-2004 66.3% 33.7% 31.6% 68.4%

26. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 De-risking

27. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Client concentration FY 2002FY 2003FY 2004 Active clients 293 345393 Clients added 116 92119 % of revenue from top client6.1% 5.8%5.0% % of revenue from top 5 clients24.1% 23.4%22.6% % of revenue from top 10 clients39.4% 37.3%36.0% Clients accounting for >5% of revenue221 Million dollar+ clients83 115131 5-million dollar+ clients25 4151 10-million dollar+ clients16 1625 20-million dollar+ clients6 912 50-million dollar+ clients--3 Million dollar clients / total clients 28.3% 33.3%33.3% Repeat Business (%) 88%92%93%

28. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Cash management

29. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 We have a strong and liquid Balance Sheet (Rs. Crore) Mar 31, 2003%Mar 31, 2004% SOURCES OF FUNDS Share capital33.121 33.321 Reserves and surplus2,827.5399 3,220.1199 Total2,860.65100 3,253.43100 APPLICATION OF FUNDS Fixed assets 772.72 27 970.3030 Investments 33.20 197.783 Deferred tax assets 36.81 1 35.631 Sundry debtors 512.1418 632.5119 Cash and equivalents 1,638.51 57 2,769.0086 Other current assets570.5020 631.7319 Current liabilities & provisions(703.23)(24) (1,883.52)(58) Total2,860.65100 3,253.43100 Continued to be a zero-debt company

30. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our receivables are under control Age profile of accounts receivable 2003-2004 2002-2003 0-3031-6061-90>90 Days of sales receivable - 52 days 39% 28.7% 66.1% 1.3% Days of sales receivable - 48 days 1.2% 68.6% 25.6% 4.6%

31. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our cash flows are strong FY 2003FY 2004 (Rs. Crore) (Rs. Crore) Operating cash flows915.961,633.97 Financing cash flows(151.97)(94.48) Proceeds on exercise of stock options13.52122.27 Dividends paid(165.49)(216.75) Investing cash flows(153.41)(1,332.01) Purchases of fixed assets(219.26)(429.87) Proceeds on sale of fixed assets0.331.43 Investment in securities(12.53)(1,003.85) Interest income78.05100.28 Effect of exchange differences0.97(6.59) Net increase in cash and cash equivalents611.55200.89 Cash and cash equivalents, beginning of year1,026.961,638.51 Cash and cash equivalents, end of year1,638.511,839.40

32. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Our cash management policies Financial policies  Maintain liquid assets at  25% of revenue and  40% of total assets  Earn  Return on average capital employed – 2x cost of capital  Return on average invested capital – 3x cost of capital  Our current cost of capital is estimated to be 14.09%  Maintain sufficient cash in the Balance Sheet  To fund ongoing capex requirements to meet growth objectives  To fund operational expenses and other strategic initiatives for the next one year  To maintain business continuance in case of exigencies

33. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Cash management – How we performed DescriptionTargetFY 2002FY 2003FY 2004 ROCE (%)54.4%46.9%48.1% Times cost of Capital2.03.22.83.4 ROIC (%)83.1%79.9%137.5% Times cost of Capital3.04.84.79.8 Days sales outstanding60475248 Cash & equivalents / total assets *40.0%49.4%57.3%85.1% Cash & equivalents / revenue *25.0%39.4%45.2%58.2% A one-time special dividend of Rs. 666.41 crore was recommended by the board * Cash and cash equivalents include investments in liquid mutual funds

34. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Other performance indicators

35. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Other performance indicators 46.6% 38.8% 40.7% Return on Average Net Worth (RONW) (%) 54.4% 46.9% 48.1% Return on Capital Employed (ROCE) (%) 83.1% 79.9% 137.5% Return on Invested Capital (ROIC) (%) 200320042002200320042002200320042002

36. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Other performance indicators EPS from Ordinary Activities (Rs.) 146.40 173.22 222.17 Cash EPS (Rs.) Dividend Payout (%) 122.12 144.68 187.38 17.0% 19.9% 78.2% 200320042002200320042002200320042002

37. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Other performance indicators 314.31 431.84 488.20 Book Value (Rs.) 30.50 28.01 26.35 Price Earnings (Multiple) 62,737% 68,259% 83,170% Market Price / Adjusted IPO Price (%) 200320042002200320042002200320042002

38. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Strength of the invisibles * FY 2002FY 2003FY 2004 Average age of employees (Yrs)26.626.626.0 Education index31,385 44,97274,057 Brand value (Rs.Cr)7,257 7,4888,185 EVA (Rs.Cr)510 455690 Value added (Rs.Cr)2,239 3,0514,185 HR value (Rs.Cr)9,539 10,77821,140 * Consolidated

39. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Consolidated Income statement

40. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 FY 04 FY 03 % change INCOME – Services, Products and BPM Overseas 4,786.72 3,564.36 34.3% Domestic 66.23 75.62 (12.4%) 4,852.95 3,639.98 33.3% Software development and BPM expenses 2,538.67 1,822.96 39.3% GROSS PROFIT 2,314.28 1,817.02 27.4% Selling and marketing expenses 350.90 271.73 29.1% General and administration expenses 369.19 275.67 33.9% Operating profit before interest, depreciation and amortization 1,594.19 1,269.62 25.6% Interest - - Depreciation and amortization 236.73 190.34 24.4% Operating profit after interest, depreciation and amortization 1,357.46 1,079.28 25.8% Other income 123.38 100.26 23.1% Provision for investments 9.67 23.77 (59.3%) NET PROFIT BEFORE TAX 1,471.17 1,155.77 27.3% Provision for taxation 227.54 201.00 13.2% NET PROFIT AFTER TAX 1,243.63 954.77 30.3% Income statement

41. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Financial Highlights – US GAAP

42. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 1,062.59 753.81 Revenues (US$ million) 336.45 460.30 218.64 293.1 2 Gross Profit (US$ million) Operating Income (US$ million) 200320042003200420032004 41%34%37% Financial Highlights – US GAAP

43. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 223.45 295.93 Operating Income (excl. stock comp) (US$ million) 194.87 270.2 9 199.6 7 273.11 Net Income (US$ million) Net Income (excl. stock comp) (US$ million) 200320042003200420032004 32%37%39% Financial Highlights – US GAAP

44. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Investor services  Share transfers in physical form completed within 15 days  Investor grievances / correspondence attended to within a period of 10 days (except in cases constrained by disputes or legal impediments)  99.53% of the company’s shares are now held in electronic form  Pending share transfer related litigation -17 cases

45. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Community services  Grants of Rs. 12 crore during the year to Infosys Foundation, a not-for-profit trust to support initiatives that benefit society at large  Projects undertaken during the year by Infosys Foundation were in the cause of health care, rural poor & underprivileged, education, art & culture & others  Infosys donated 729 computers to various institutions across India through its Computers@Classrooms initiative  Continued to adhere to the principles of the UN Global Compact Programme  Established Infosys Environment Policy

46. Annual General Meeting 2003 - 04 June 12, 2004© Infosys Technologies Limited 2003 - 04 Awards won during the year  Award for the best presented Annual Report for fiscal 2003 received from The Institute of Chartered Accountants of India. This award was received for the eighth consecutive year.  Asiamoney award for best investor relations in India  Assigned a Corporate Governance Scorecard ‘CGS-8.6’ in a scale of 1 (low) to 10 (high) by Standard & Poor’s

47. Annual General Meeting 2003 - 04 © Infosys Technologies Limited 2003 - 04 Thank You www.infosys.com