ir presentation ver2

7/25/2019 Ir Presentation Ver2

1/30

Infosys A

Unique BusinessModel


2/30

Safe Harbor

Certain statements in this presentation concerning our future growth prospects areforward looking statements which involve a number of risks and uncertainties that couldcause 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 costadvantage, wage increases in India, our ability to attract and retain highly skilled

professionals, time and cost overruns on fixed-price, fixed-time frame contracts, clientconcentration, restrictions on immigration, our ability to manage our internationaloperations, reduced demand for technology in our key focus areas, disruptions intelecommunication networks, our ability to successfully complete and integrate potentialacuisitions, liability for damages on our service contracts, the success of thecompanies in which Infosys has made strategic investments, withdrawal ofgovernmental fiscal incentives, political instability, legal restrictions on raising capital oracuiring companies outside India, and unauthori!ed use of our intellectual propertyand general economic conditions affecting our industry. "dditional risks that could affect

our future operating results are more fully described in our #nited $tates $ecurities and%xchange Commission filings including our "nnual &eport on 'orm ()-' for the fiscalyear ended *arch +, ())), and our uarterly &eports filed on 'orm -/ for theuarters ended 0une +), ())), $eptember +), ())) and 1ecember +, ())). Thesefilings are available at www.sec.gov. Infosys may, from time to time, make additionalwritten and oral forward looking statements, including statements contained in thecompany2s filings with the $ecurities and %xchange Commission and our reports toshareholders. The company does not undertake to update any forward lookingstatement that may be made from time to time by or on behalf of the company.
http://www.sec.gov/http://www.sec.gov/http://www.sec.gov/


3/30

Infosys - An Overview

%nd-to-end IT solutions provider

3ne of the most profitable softwareservices providers in the world

4ublicly traded in India since 55+

'ifth most valuable company inIndia

6isted on 7"$1" since*arch 555

4resent market cap at #$8 9.9billion :as of *ay , ());


4/30

Continuous GrowthRevenues and Operating Proft

%xcluding one-time charge for compensation arising from stock split

CAGR=71

.5%

CAGR

=76

.3%

IPO9.5

18.1 26.6

39.668.3

121.0

203.4

413.8

2.6 4.1 6.3 9.2 13.4

35.860.5

137.5

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

1994 1995 1996 1997 1998 1999 2000 2001

(in$million)

&evenues 3perating profits


5/30

Growin !arnins "er Share

%xcluding one-time charge for compensation arising from stock split

0.05 0.070.12 0.15

0.22

0.49

0.93

2.01

0

0.5

1

1.5

2

2.5

1994 1995 1996 1997 1998 1999 2000 2001

(inU$)

!"#nin &'# "#'

CAGR

=69.5%


6/30

"er-#a$ita revenue rowth

42.0 48.057.0

68.087.0

11.4 17.225.4

35.657.1

39.6

68.3

121.0

203.4

413.8

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

1997 1998 1999 2000 2001

4er capita revenues :#$8 ))); =illed manmonths :?))); &evenues :#$8 *n;

CAGR=50%

CAGR=

80%

CAGR=

20%


7/30

Business outloo%

Quarter ending June 30, 2001

& 'et revenue is e($e#ted to be in the rane of) +, .illion to ) +,/ .illion

& !arnins $er A0S is e($e#ted to be in the rane of

) 12,3 to ) 12,4

Fiscal year ending March 31, 2002

& 'et revenue is e($e#ted to be in the rane of) /1 .illion to ) /5/ .illion

& !arnins $er A0S is e($e#ted to be in the rane of) +2,5 to ) +2,6


8/30

Challenin e(ternal I7 environ.ent

&eports on slow-down in IT spending by #$ companies

%arnings warnings from some of our ma@or customers

Concerns on dot-com and venture-funded businesses

%arnings warnings from some of the software companies in #$ 4ossible softness in labor markets in the #$

Internet consulting companies facing pressure on visibility andbilling rates

There may be supply-demand gap in India resulting in escalationof labor cost

'alling markets and stock options becoming unattractiveresulting in escalation of compensation costs


9/30

Investors8 Con#erns

*in'

!++', o+ lo-/on in I &'n/in in U on In+o

iiili in *in'

**#' #''n*' #o

P'# ,"&i" #''n*'

Aili o in,#'"' ' &'#-,"&i" #''n*' on " o-+o#"#/ "i

Im&", on ' &'#-,"&i" #''n*' #o #"' /*' o #'/*,'/ /o-,om 'n*#'-+*n/'/*in''

i#in "n/ Uili"ion

Aili o "#", ' ' "n/ ' #i'

o'# *ili"ion #"' ,o*&l'/ i in,#'"'/ i#in

"o# ,o ',"l"ion /*' o +"llin m"#:' i,' o+ ' o,:

;"#in

Aili o m"in"in o# #o ' m"#in on " o-+o#"#/ "i

!


10/30

4redictability $ustainability

4rofitability 1e-risking

;"in'n"n,'

i'# "l*' '#i,'

In,#'"' #''n*' o/*,ii

O++o#' mo/'l - Glo"l ='li'#

U&'ll o '


11/30

9e$eat business throuh the years

78.0

80.0

82.0

84.0

86.0

88.0

90.0

92.0

94.0

(in%)

R'&'" *in' (% o o"l #''n*') 91.8 84.1 83.1 90.0 87.6 84.5

1996 1997 1998 1999 2000 2001


12/30

Million dollar #usto.ers

)

9)

))

9)

())

(9)

+))

)B

)B

()B

+)B

)B

9)B

)B

D)B

E)B

5)B

*illion 8 clients D 5 5 +9 ( E)

Total clients 5 + 5 5+ 9 5 (D+

*illion 8 clientsF total :B; (.B ((.B +.)B ().B +).B (.B (5.+B

*illion 8 client revenues F

total revenues :B;

9.B 5.5B 9D.B E.EB E).(B E.EB E9.B

'G 59 'G 5 'G 5D 'G 5E 'G 55 'G )) 'G )


13/30

:uarterly $er-#a$ita revenue rowth

-

20@000

40@000

60@000

80@000

100@000

120@000

140@000

160@000

(inU$)

P'# ,"&i" #''n*' - Oni' P'# ,"&i" #''n*' - O++o#' P'# ,"&i" #''n*' - l'n/'/

P'# ,"&i" #''n*' - Oni' 95@511 103@888 103@036 104@028 115@434 135@600 138@400 134@900

P'# ,"&i" #''n*' - O++o#' 49@536 51@098 53@115 54@756 60@862 64@500 65@200 64@500

P'# ,"&i" #''n*' - l'n/'/ 62@809 67@975 70@160 71@571 80@959 90@400 89@600 86@200

1 >00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01


14/30

;ey $ara.eters

Excluding one time charge arising on accelerated amortization of stock compensation expense

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

G#o m"#in % 'llin "n/ 'n'#"l '00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01


15/30

End-to-endservice

provider

Oer newservices to

existing clients

Developnew clients

Use toolsand

methodologies

Expand anddiversiyase o !"

proessionals

!ncreaseemployee

productivity ypromoting reuse

Movin-u$ the


16/30

Hirin and utili=ation


17/30

Infosys> the !.$loyer-of-#hoi#e

"d@udged HIndia2s =est %mployer by thefirst =usiness Today-Jewitt $urveyconducted in 1ecember ()))

K "bility to attract the best and the brightest

Jigh investment in technology and training

K weeks of intensive training for new hires

K 99 member faculty, including E 4h.1s

"ll employees in Infosys are covered by thestock option plan

Incubation mechanism for employees tolaunch their own ventures. 4iloted3n*obile - a end to end wireless solutionsprovider

"ttrition rate of B for fiscal ()) and 5Bfor fiscal ()))


18/30

Our views on labor #ost $ressures

B"' '*#' +o# +#''# m" no "#i' ',"*' o+in,#'"'/ m"#:' &'n'#"ion. i i /*' o

K o+'nin o+ "' in ' U m"#:' /*' o l"-o++

K lo/on in i#in ',on/ i#/ i'# ,om&"ni' in In/i"

/*' o " /',lin' in *in' o&&o#*nii'

B"' '*#' "l#'"/ '


19/30

7he i.$a#t of sto#% o$tions

o,: o&ion "#' no " *i*' +o# "l"#i'.

o,: o&ion "#' #"n'/ " "//iion"l in,'ni'

o,: o&ion "#' i/'l /i#i*'/ "mon 'm&lo''

;o o+ ' 'nio# 'm&lo'' o+ ' ,om&"n ("#o*n/ 1550) "#' ,o'#'/

*n/'# ' 1994 o,: o&ion &l"n " ,#'"'/ *"ni"l '"l in 'i#"n/

62% o+ o&ion o*"n/in *n/'# ' 1994 &l"n (,o'#in 1@472'm&lo'') ill ' "+'# 2 '"#

P"# o+ ' #"n *n/'# ' 1998 "n/ 1999 o&ion &l"n@ "' "l#'"/

''/ o,: o&ion "' ,#'"'/ 80 /oll"# million"i#' "n/ o'# 1@150 #*&''

million"i#'@ " In+o

' 'm&lo'' on'#i& in In+o in,l*/in ' o*"n/in o&ion#"n i 11.7%


20/30

?e #ontinue to fo#us on .arins


21/30

Utili=ation rates and .arins @

*argins are the key. =ench is for strategic reasons. The cost ofbench is hardly 8E)) per month per person

ET excluding trainees

IT including trainees

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

40.0%

41.0%

42.0%

43.0%

44.0%

45.0%

46.0%

47.0%

48.0%

49.0%

50.0%

51.0%

Uili"ion % -I Uili"ion % -! G#o m"#in %

Uili"ion % -I 75.8% 71.2% 68.1% 76.6% 74.9% 65.4% 66.7% 64.9%

Uili"ion % -! 80.5% 81.1% 74.8% 81.5% 85.6% 80.5% 77.6% 73.0%

G#o m"#in % 48.1% 45.6% 45.3% 43.7% 47.7% 48.7% 47.3% 49.6%

1 >00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01


22/30

Stratei# invest.ents

In'm'n "#' :' o In+o #"'i, oD',i' o+ "inin ",,' oni,' ',noloi' "n/ m"#:'

B' l''#"'/ ' '01 #''n*' -$1.7 million "n/ ,*m*l"i' #''n*' o+ $ 2.1 million)

K $ 0.4 million in ;-Comm'#,' 'n*#' P' /.@ in"&o#'@ "n '"#l "' C +*n/

K $ 1.5 million in Ai" H' ;'/i" I /. (>01 #''n*' - $0.9 million "n/,*m*l"i' #''n*' o+ $ 1.1 million)

K $ 0.5 million in P*#&l'>oi In,


23/30

?e have today the infrastru#ture$ro#esses and $eo$le to .anae futurerowth


24/30

Creatin $hysi#al infrastru#ture

"s of *arch +, ()), we had software development space of . million s. ft. capable of accommodating ),))personnel and .5 million s. ft. capable of accommodating E,9)) personnel under construction.

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

(in$

;n)

C"&i"l '


25/30

"eo$le statisti#s

Additions are on a net basis

-

2@000

4@000

6@000

8@000

10@000

12@000

!m&lo''% (o"l) o+."#' o+'%%ion"l% A//'/ in ' E*"#'#

!m&lo''% (o"l) 3@943 4@778 4@996 5@389 6@445 7@925 8@910 9@831

o+."#' o+'%%ion"l% 3@321 4@122 4@261 4@623 5@594 6@941 7@824 8@656

A//'/ in ' E*"#'# 177 835 218 393 1@056 1@480 985 921

1 >00 2 >00 3 >00 4 >00 1 >01 2 >01 3 >01 4 >01


26/30

?orld-#lass :uality "ro#esses

Le have strong internal uality processes to manage growth

'ocus on defect prevention, technology insertionand process changes to improve uality and productivityC** 6evel 9C** 6evel 9

&eduction in cycle time and defects for six cross

functional processes 3rders Through &emittance :3T&; Misa processing #$ 4ayroll

$ix $igma$ix $igma

Cross functional teams to address improvement areas in

strategic management functions

6eadership 1evelopment, Customer &elationship*anagement, Juman &esource *anagement,Information $ystems and 4rocess *anagement

=aldrige=aldrige


27/30

?e have built a stron brand

4rominently covered in =usinessLeek, 7ew Gork Times and Lall$treet 0ournal

*ost admired company in India -

poll by India2s largest businessdaily, The %conomic Times

Infosys figures in 'orbesH() for ()))

'irst recipient of the #TI award for

corporate governance - chosenfrom over D9)) listed companies inIndia


28/30

?e have won several awards

' "# !"'#n !,onomi, R'i' #"'/ In+o "' Ho. 1 ,om&"n in In/i" in ' R'i' 2000@ "n"nn*"l *#' o+ Ai" l'"/in ,om&"ni'

In+o ',"m' ' +i# I ,om&"n o in ' I;CR"m:#in" "D"D H"ion"l *"li A"#/ in '

'#i,' ,"'o#

B' '#' D*/'/ ' in"n,i"l ',nolo Ai";""in' " ' ' R'ion"l o+"#' o*'

' "n:A" o/*, +#om In+o on ' CI-Bio ""#/ +o# ' ' P",:"'/ A&&li,"ion +o#' '"# 2000

Jil'# i'l/K A"#/ +o# ' ' P#''n'/A,,o*n ""#/'/ ' ICAI +o# Hon-+in"n,i"lP#i"' ',o# Com&"ni' +o# i< ,on',*i' '"#'n/'/ ;"#, 31@ 1995 #o* 2000


29/30

In su..ary

B' "' " *niE*' *in' mo/'l i, i +*ll

&oi'/ o '


30/30

7han% Dou

Misit us at www.infy.com

ir presentation ver2

Documents