© infosys technologies limited 2004-2005 infosys investor relations infosys investor relations

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© Infosys Technologies Limited 2004-2005 Infosys Investor Relations

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Page 1: © Infosys Technologies Limited 2004-2005 Infosys Investor Relations Infosys Investor Relations

© Infosys Technologies Limited 2004-2005

InfosysInvestor RelationsInfosysInvestor Relations

Page 2: © Infosys Technologies Limited 2004-2005 Infosys Investor Relations Infosys Investor Relations

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Slide 2© Infosys Technologies Limited 2004-2005

Infosys Technologies Limited Financial Year 2004 - 2005

First Quarter Results

July 13, 2004

Page 3: © Infosys Technologies Limited 2004-2005 Infosys Investor Relations Infosys Investor Relations

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Slide 3© Infosys Technologies Limited 2004-2005

Safe Harbor

Certain statements in this release concerning our 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, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, 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 and regional conflicts, 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, 2004. These filings are available at www.sec.gov. 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.

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Slide 4© Infosys Technologies Limited 2004-2005

Contents

Highlights

Operational Performance

Financial Performance

Guidance

Page 5: © Infosys Technologies Limited 2004-2005 Infosys Investor Relations Infosys Investor Relations

© Infosys Technologies Limited 2004-2005

HighlightsHighlights

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Slide 6© Infosys Technologies Limited 2004-2005

Highlights

At the beginning of the quarter Uncertainty existed relating to

• Debate on Outsourcing

• Rupee – US$ movement

Income was projected to be between Rs. 1,363 crore and Rs. 1,371 crore; YoY growth of 25%

Income grew to Rs. 1,517.38 crore; YoY growth of 38.61% and

sequential growth of 12.44%

We have increased guidance for fiscal 2005. Income is projected to be

between Rs.6,731 crore and Rs.6,772 crore; YoY growth of 39% to

40%

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Slide 7© Infosys Technologies Limited 2004-2005

Highlights

Our business model enabled us to respond quickly to enhanced business opportunities in the market place

Continue to see a stable pricing environment Restructuring into Integrated Business Units has created multiple

engines of growth with strong leadership Recently introduced a new approach to outsourcing called ‘Modular

Global Sourcing’ Continued investment in developing new solutions Ongoing focus on integration of Infosys’ subsidiaries with the overall

strategy and operations of the corporation

Good improvement in business environment with healthy pipeline

Page 8: © Infosys Technologies Limited 2004-2005 Infosys Investor Relations Infosys Investor Relations

© Infosys Technologies Limited 2004-2005

Operational PerformanceOperational Performance

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Slide 9© Infosys Technologies Limited 2004-2005

Client Concentration

23.321.6 23.7

37.134.3 36.7

05

10152025303540

Q1 FY 2005 Q4 FY 2004 Q1 FY 2003Top 5 Top 10

% Revenues* FY 2005 FY 2004 FY 2004 Q1 Q4 Q1

New Clients 29 38 22

Top client contribution to revenues 5.3% 6.5% 5.7%

Million dollar clients* 141 131 113

Fifty million + dollar clients* 3 3 -

Active Clients 419 393 346

Repeat Business 98.5% 88.6% 97.8%

*LTM – Last Twelve Months

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Slide 10© Infosys Technologies Limited 2004-2005

15.6%

13.9%

23.5%

11.6%

7.1%

5.1%

5.1%

3.5%

14.6%

Q4 2003-04Q1 2003-04

Vertical DomainsQ1 2004-05

Manufacturing Insurance

Banking & Financial Services Telecom

Retail Energy & Utilities

Transportation & Logistics Services

15.0%

9.6%

24.4%

11.4%

7.6%

6.1%5.1%

2.9%

17.9%

14.4%

10.2%

23.0%

11.2%

7.3%

5.6%

5.7%

2.2%

20.4%

Others

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Slide 11© Infosys Technologies Limited 2004-2005

Q4 2003-04Q1 2003-04

Revenue by Service Offering

Q1 2004-05

Development Maintenance

Re-engineering Package Implementation

Consulting Testing

Engineering Services Business Process Management

26.1%

28.8%

5.8%

3.4%

1.9%

2.1%

9.2%2.4%

5.3%

15.0%

Other Services

25.6%

29.9%

6.0%

3.4%

2.0%

1.9%7.8%

2.2%

4.7%

16.5%

27.8%

26.9%

6.7%

4.4%

2.6%

1.2%

8.9%

3.6%

4.4%

13.5%

Product

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Slide 12© Infosys Technologies Limited 2004-2005

Q4 2003-04 Q1 2003-04

Geographical Footprint

Q1 2004-05

North America Europe

Rest of the World India

74.7%

17.4%

5.8%2.1%

65.5%20.3%

13.0%1.2%

65.2%

22.2%

11.0%1.6%

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Slide 13© Infosys Technologies Limited 2004-2005

Q4 FY 2004

Time & Materials Fixed Price

30.6%

69.4%

Q1 FY 2004

35.9%

64.1%

Q1 FY 2005

29.7%

70.3%

Revenue by Project type

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Slide 14© Infosys Technologies Limited 2004-2005

Effort and Utilization

Quarter ended

  Jun 30, 2004 Mar 31, 2004 Jun 30, 2003

Effort – Services   

Onsite 29.4% 30.5% 32.1%

Offshore 70.6% 69.5% 67.9%

Revenue – Services

Onsite 51.9% 53.0% 53.9%

Offshore 48.1% 47.0% 46.1%

Utilization

Including trainees 73.4% 70.2% 76.6%

Excluding trainees 79.7% 79.3% 83.7%

*Excluding software products and business management revenue

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Slide 15© Infosys Technologies Limited 2004-2005

Employee Metrics

Quarter ended

  Jun 30, 2004 Mar 31, 2004 Jun 30, 2003

Total Employees 27,939 25,634 17,977

S/w professionals 26,028 23,860 16,434

Billable 23,761 21,189 14,009

Banking Product Group 685 604 516

Trainees 1,582 2,067 1,909

Sales & Support 1,911 1,774 1,534

Gross Addition 3,233 2,849 2,592

Net Addition 2,305 2,425 2,101

Lateral Employees 746 774 330

Attrition % (LTM)* 10.90 10.45 7.90

*Excluding subsidiaries

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© Infosys Technologies Limited 2004-2005

Financial PerformanceFinancial Performance

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Slide 17© Infosys Technologies Limited 2004-2005

The Quarter at a Glance (Indian GAAP-YoY)

1094.70

Q1 04 Q1 05

1517.38

Total Income(Rs.cr)

38.6

1%

350.48

489.27

Operating Profit (Rs.cr)

39.6

0%

14.54

Basic EPS (Rs.)

38.0

8%

Q1 04 Q1 05 Q1 05Q1 04

10.53

278.92

388.34

PAT (Rs.cr)

39.2

3%

Q1 04 Q1 05

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Slide 18© Infosys Technologies Limited 2004-2005

The Quarter at a Glance (Indian GAAP-QoQ)

1349.45

Q4 04 Q1 05

1517.38

Total Income(Rs.cr)

12.4

4%

449.17

489.27

Operating Profit (Rs.cr)

8.93

%

14.54

Basic EPS (Rs.)

15.4

9%

Q4 04 Q1 05 Q1 05Q4 04

12.59

335.23

388.34

PAT (Rs.cr)

15.8

4%

Q4 04 Q1 05

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Slide 19© Infosys Technologies Limited 2004-2005

Consolidated Financials (Indian GAAP) Particulars

June 30

Growth (%) March 31, 2004Growth % in Q1 FY 2005

over Q4 FY 20042004 2003

INCOME

Software services, products and business process management

Overseas 1,493.45 1,071.38 39.39 1,333.28 12.01

Domestic 23.93 23.32 2.61 16.17 47.99

TOTAL INCOME 1,517.38 1,094.70 38.61 1,349.45 12.44

Software development and business process management expenses 805.22 579.60 38.93 707.09 13.88

GROSS PROFIT 712.16 515.10 38.26 642.36 10.87

Selling and marketing expenses 105.21 81.64 28.87 91.67 14.77

General and administration expenses 117.68 82.98 41.82 101.52

15.92

222.89 164.62 35.40 193.19 15.37

OPERATING PROFIT (EBIDTA) 489.27 350.48 39.60 449.17 8.93

Interest - - - - -

Depreciation and amortization 52.53 45.14 16.37 64.42 (18.46)

OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION 436.74 305.34 43.04 384.75 13.51

Other income 15.70 31.94 (50.85) 1.82 762.64

Provision for investments (0.01) 6.36 - 0.80 -

PROFIT BEFORE TAX 452.45 330.92 36.72 385.77 17.28

Provision for taxation 64.11 52.00 23.29 50.54 26.85

NET PROFIT AFTER TAX 388.34 278.92 39.23 335.23 15.84

EARNINGS PER SHARE*(Equity shares, par value Rs. 5/- each)

Basic 14.54 10.53 38.08 12.59 15.49

Diluted 14.29 10.49 36.22 12.34 15.80

In Rs.Crore , except per share data

*adjusted for the 3 :1 bonus issue of shares distributed on July 6, 2004

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© Infosys Technologies Limited 2004-2005

GuidanceGuidance

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Slide 21© Infosys Technologies Limited 2004-2005

Indian GAAP – Consolidated

Quarter ending Sept 30, 2004*

Income is projected to be between Rs.1,631crore to Rs. 1,645

crore; YoY growth of 42% to 43%

Earnings per share is expected to be Rs.15.10; YoY growth of

33%

Fiscal year ending March 31, 2005*

Income is projected to be between Rs. 6,731crore to Rs. 6,772

crore; growth of 39% to 40%

Earnings per share is expected to be Rs. 62.70; YoY growth of

34%

*adjusted for the 3 :1 bonus issue of shares distributed on July 6, 2004

Page 22: © Infosys Technologies Limited 2004-2005 Infosys Investor Relations Infosys Investor Relations

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