2. Infosys Financials Aim for the Best
V. Balakrishnan
Company Secretary and Senior Vice President - Finance
© Infosys Technologies Limited

3. Safe Harbor
Certain statements made here concerning Infosys’ future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20- F for the fiscal year ended March 31, 2005 and the Quarterly Reports on Form 6- K for the fiscal quarters ended June 30, 2004, September 30, 2004 and December 31, These filings are available at Infosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
June 11, 2005
© Infosys Technologies Limited

4. We successfully completed the Sponsored Secondary ADS Offering
Largest international equity offering from India
The first Public Offer Without Listing (POWL) in Japan by an Indian company
Among the largest demand for any POWL issue in Japan
Secondary ADS offering -
16 million shares
Pricing
US$ 67 per share
Size of offering
US$ 1.07 billion
Excess shares returned on
May 30, 2005
Payment of proceeds
On or before June 15, 2005
June 11, 2005
© Infosys Technologies Limited

5. Highlights Achieved revenues of US$ 1.59 billion during the year
Achieved a revenue growth of 50% (in $ terms) as against our guidance of 30% in April 2004
136 clients added during the year
Net addition of 11,116 employees during the year
Recommended a final dividend of 130% (Rs per share), total dividend of 230% for the year, aggregating to Rs crore
S&P credit rating – Pierced the sovereign rating
Amongst the first few companies globally to file XBRL report (eXtensible Business Reporting Language)
Award for the best presented Annual Report for fiscal 2004 received from The Institute of Chartered Accountants of India for the ninth consecutive year
June 11, 2005
© Infosys Technologies Limited

6. We have a competitive financial model…
June 11, 2005
© Infosys Technologies Limited

7. … we achieved the best growth rate in the industry…
Fiscal 2005 revenue growth rates under Indian GAAP
Industry growth
34.5%
Source : CLSA research report
Industry data - NASSCOM
June 11, 2005
© Infosys Technologies Limited

8. …despite moves by global majors to expand offshore…
Incumbent global majors
Announcing aggressive growth plans in India
Enhancing their offshore capabilities
Restructuring their costs to be competitive
Moving their G&A expenses to India
Our Global Delivery Model, evolved over a period of time, gives us the competitive edge
June 11, 2005
© Infosys Technologies Limited

9. … we balanced growth … 47% 45% 46% 48% Gross profit Operating profit
7,130
47%
4,853
45%
3,365
46%
48%
2,314
2,335
1,847
1,594
1,244
2004
2005
2004
2005
2004
2005
2004
2005
Gross profit
(Rs. Cr)
Operating profit
(Rs. Cr)
Revenues
(Rs. Cr)
Net profit *
(Rs. Cr)
* Net profit after tax and before exceptional item
June 11, 2005
© Infosys Technologies Limited

10. …and margins… Gross profit Operating profit Net profit * 47.7% 47.2%
32.8%
32.8%
25.9%
25.6%
2004
2005
2004
2005
2004
2005
Gross profit
(%)
Operating profit
(%)
Net profit *
(%)
* Net profit after tax and before exceptional item
June 11, 2005
© Infosys Technologies Limited

11. …we are constantly moving up the value chain…
Increased contribution from new services (% to total revenue)
Package Implementation 7.2% 9.8% 11.0% 14.5% 15.2%
Testing 2.9% 2.9% 3.4% 5.3% 5.8%
Consulting 4.9% 4.2% 4.3% 3.7% 3.6%
Business Process Management % 1.6% 2.7%
Engineering Services 1.7% 2.6% 2.6% 2.2% 2.0%
Other Services 6.1% 5.4% 7.8% 8.1% 8.4%
Total 22.8% 24.9% 29.6% 35.4% 37.7%
Variation in per-capita revenues (in US$ terms)*
Onsite 28.9% 4.4% (2.5)% (2.9)% 0.2%
Offshore  22.3% (7.6)% (4.7)% (2.6)% 1.3%
Blended  27.0% (4.4)% (0.8)% (5.0)% (1.0)%
* Software services
June 11, 2005
© Infosys Technologies Limited

12. … our Global Delivery Model provides leverage for growth…
Effort mix (%)
Onsite
Offshore
Total
Billed person months
Onsite 51,237 72,432
Offshore , ,815
Total , ,247
Change in billed person months (%)
Onsite
Offshore
Total
Utilization rates
Including trainees (%)
Excluding trainees (%)
June 11, 2005
© Infosys Technologies Limited

13. …we have a well-honed strategy to manage wage inflation…
Wage increase – Offshore 10% 13%
Onsite salaries (% to revenues) 35.6% 32.6%
Offshore salaries (% to revenues) 14.3% 13.9%
Variable salaries (Rs. cr)
Variable salary as a % of offshore salary 16.1% 21.6%
June 11, 2005
© Infosys Technologies Limited

14. …we did not compromise on investments for the future…
Sales & Marketing cost (Rs. cr)
Sales & Marketing employees (No.)
Marketing offices (No.) 28 32
Investments in various corporate initiatives (Rs. cr) :
Business plans and banking product development
Infosys China
Infosys Consulting
Total
June 11, 2005
© Infosys Technologies Limited

15. …we practice what we preach..
General & Administration expenses (Rs. cr)
General & Administration cost / revenue (%) 7.61% 7.98%
G & A personnel 1,466 1,985
Total no. of employees 25,634 36,750
% to total employees 5.72% 5.40%
June 11, 2005
© Infosys Technologies Limited

16. …we proactively hedge our forex risk…
Forward foreign exchange contracts
outstanding as at March 31 ($ Mn)
Forward contracts booked ($ Mn)
Transaction & translation losses (Rs. cr) (45.64) (1.03)
Benefit due to hedging (Rs. cr)
Net impact (Rs. cr)
June 11, 2005
© Infosys Technologies Limited

17. …and the end result – a highly evolved, competitive and variable cost structure.
2005 %
2004
Income
7,129.65
100%
4,852.95
Software development and BPM expenses
3,764.66
53%
2,538.67
52%
GROSS PROFIT
3,364.99
47%
2,314.28
48%
Selling and marketing expenses
461.00 6%
350.90 7%
General and administration expenses
568.98 8%
369.19
Operating profit before interest, depreciation and amortization
2,335.01
33%
1,594.19
Interest -
Depreciation and amortization
286.92 4%
236.73 5%
Operating profit after interest, depreciation and amortization
2,048.09
29%
1,357.46
28%
Other income
123.90 2%
123.38 3%
Provision for investments
-0.10 0%
9.67
NET PROFIT BEFORE TAX
2,172.09
30%
1,471.17
Provision for taxation
325.58
227.54
NET PROFIT AFTER TAX
1,846.51
26%
1,243.63
Exceptional Item
45.19 1%
NET PROFIT AFTER TAX, EXCEPTIONAL ITEM & BEFORE MINORITY INTEREST
1,891.70
27%
Minority Interest
0.03
NET PROFIT AFTER TAX, EXCEPTIONAL ITEM & MINORITY INTEREST
1,891.67
June 11, 2005
© Infosys Technologies Limited

18. Our subsidiaries are engines of growth
June 11, 2005
© Infosys Technologies Limited

19. Subsidiaries performance
Progeon Limited
Infosys Technologies (Australia) Pty. Limited
Infosys Technologies (Shanghai) Company Ltd.
Infosys Consulting Inc.
Formed
Apr 2002
Jan 2004
Oct 2003
Apr 2004
Total investment (Rs. cr)
24.50
66.69
23.01
44.87
Holding %
99.54
100.00
FY 05 Revenue (Rs. cr)
191.22
303.23
8.19
21.11
FY 05 PAT (Rs. cr)
30.06
(1.28)
(8.39)
(33.03)
Employees (No.)
3,966
416
122 68
June 11, 2005
© Infosys Technologies Limited

20. We have a strong Balance Sheet…
June 11, 2005
© Infosys Technologies Limited

21. …and maintain high liquidity…
Infosys Balance Sheet
Mar 31, 2005 Rs. cr %
SOURCES OF FUNDS
Share capital
Reserves and surplus 5,
Minority interest
Preference shares
Total 5,
APPLICATION OF FUNDS
Fixed assets 1,
Investments
Deferred tax assets
Sundry debtors 1,
Cash and equivalents 2,
Other net current assets
Current liabilities (1,432.56) (27)
We continue to be a zero-debt company
June 11, 2005
© Infosys Technologies Limited

22. …we manage our receivables well…
2004
2005
1.2%
8.3%
4.6%
4.6%
25.6%
33.0%
54.1%
68.6%
Days of sales receivable - 48 days
Days of sales receivable - 67 days *
Age profile of accounts receivable
0-30
31-60
61-90
>90
* Includes Rs. 236 cr due from one large customer, which was received in the first week of April 2005
June 11, 2005
© Infosys Technologies Limited

23. …we have clear policies on returns and dividends…
Target
ROCE (%) 46.9% 48.1% 51.4%
Times cost of Capital
ROIC (%) 79.9% 137.5% 123.6%
Times cost of Capital
Days sales outstanding #
Cash & equivalents / total assets * 40.0% 57.3% 85.1% 54.4%
Cash & equivalents / revenue * 25.0% 45.2% 58.2% 41.6%
Dividend % (% to net profits)** Upto 20%
# Includes Rs. 236 cr due from a large customer, which was collected in the first week of April 2005
* Cash and cash equivalents include investments in liquid mutual funds
** Excluding one-time special dividend in Fiscal 2004
June 11, 2005
© Infosys Technologies Limited

24. …we have a risk management policy …
Risk governance structure in place
Risks due to both external and internal are measured and reported
Business Objectives
External Risk Factors
Internal Risk Factors
Financial performance
Achieve revenue growth
Increase revenue productivity
Sustain profitability
Client and market focus
Grow client relationships
Differentiate client offerings
Broaden geographical footprint
Execution excellence
Leverage Global Delivery Model
Control operational costs
Improve quality & productivity
Organizational development
Develop and retain competencies
Develop a global workforce
Develop 3 tiers of leadership
Macro economic factors
Exchange rate fluctuations
Political environment
Competitive environment
Concentration of revenues
Inflation and cost structure
Immigration regulations
Security and business continuity
Technology obsolescence
Financial reporting risks
Liquidity and leverage
Contractual compliance
Compliance with local laws
Intellectual property management
Engagement execution
Integration of subsidiaries
Human resource management
Culture, values and leadership
June 11, 2005
© Infosys Technologies Limited

25. … and we manage our risks…
Total clients
Clients added
Top client contribution to revenue 5.8% 5.0% 5.5%
Top 5 clients contribution to revenue % 22.6% 21.0%
Top 10 clients contribution to revenue % 36.0% 33.6%
Clients accounting for >5% of revenue 2 1 1
No. of clients with revenues
1 million $
5 million $
10 million $
20 million $
30 million $
40 million $
50 million $
60 million $
70 million $
80 million $
Million dollar clients / total clients 33.3% 33.3% 37.9%
Repeat Business (%) 92% 93% 95%
June 11, 2005
© Infosys Technologies Limited

26. … we keep the business model simple…
No off-balance sheet items
No Special Purpose Vehicles
Provide for all known losses
What you see is what you get
June 11, 2005
© Infosys Technologies Limited

27. … Simplicity has its rewards.
193.73
122.05
107.96
11.50
7.38
6.75
32.59
28.01
26.35
2004
2005
2003
2004
2005
2003
2004
2005
2003
Book value (Rs.)
Price earnings (multiple)
Dividend per share* (Rs.)
* Excluding one-time dividend in fiscal 2004
June 11, 2005
© Infosys Technologies Limited

28. Would you have backed this group?
1,52,064
83,170
68,259
2004
2005
2003
Market Price /
Adjusted IPO Price (%)
1980s
June 11, 2005
© Infosys Technologies Limited

29. The hidden treasure
Average age of employees (Yrs)
Education index 44,972 74, ,351
HR value (Rs. cr) 10,778 21,140 28,334
Brand value (Rs. cr) 7,488 8,185 14,153
EVA (Rs. cr) ,132
Value added (Rs. cr) 3,051 4,185 6,053
Attrition (%)
R & D expenditure (Rs. cr)
R & D expenditure / revenue (%)
* Consolidated
June 11, 2005
© Infosys Technologies Limited

30. Consistently Meeting or Exceeding Guidance*
Revenue (US$mm)
Revenue
Earnings per ADS (US$)
Earnings per ADS
Guidance
Actual
Annually
Quarterly
FY 02
FY 03
FY 04
FY 05
* Guidance given at beginning of quarter/year
June 11, 2005
© Infosys Technologies Limited

31. Financial Highlights – US GAAP
June 11, 2005
© Infosys Technologies Limited

32. Financial Highlights – US GAAP…
50%
1,592
1,063
50%
688
56%
55%
460
456
419
293
270
2004
2005
2004
2005
2004
2005
2004
2005
Gross profit
(US$ million)
Operating income
(US$ million)
Revenues
(US$ million)
Net income
(US$ million)
June 11, 2005
© Infosys Technologies Limited

33. … Financial Highlights – US GAAP
43.3%
43.2%
28.6%
27.6%
26.3%
25.4%
2004
2005
2004
2005
2004
2005
Gross profit
(%)
Operating income
(%)
Net income
(%)
June 11, 2005
© Infosys Technologies Limited

34. Thank You You are always on our mind
Infosys acknowledges the proprietary rights of materials used in this presentation
© Infosys Technologies Limited