#1Infosys Investor Presentation#2Safe Harbor This presentation includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Infosys believes that the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. These statements may involve risks and uncertainties that could cause actual results to differ materially from the expected results. Such risks include, but are not limited to, the risk factors described in Infosys' Registration Statement on Form F-3, a prospectus supplement to such Registration Statement and in other reports and periodic filings made from time to time with the Securities and Exchange Commission.#3Highlights An overview Next Generation Business model Market opportunities Competitive situation Strategy and approach to market Investments Financials Challenges#4An overview LTM Mar 09 Revenues / 5-year CAGR: LTM Mar 09 Net Income / 5-year CAGR: Employees (Mar 09): Market cap (Mar 09)*: Global Presence: Business Model: $4.66 billion / 34% $1.28 billion / 37% 104,850 from 76 nationalities $ 15.07 billion 55 Sales Offices 54 Global Development Centers Operating in 28 countries Next Generation business model combining best of Consulting & Global Delivery * as of last day of the quarter based on closing NASDAQ price#5Next Generation Business Model . • • SaaS • Learning • Consulting Business Process Management IT Outsourcing Systems Integration Independent Validation Services Infrastructure Management • Product Lifecycle Management 2008 2001 Technology Consulting Technology-enabled BPR 1996 . Enterprise Solutions Application Development and Maintenance • Software Re-engineering People | Organization | Infrastructure | Process | Quality Infosys Global Delivery model 1981#6Non-ADM Services as % of revenue 51.0 53.7 48.1 43.9 45.8 41.4 35.1 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY09 25% revenues from Consulting and Package Implementation (FY09) as against 15% in FY 03 Over 50 solutions and alliances contributing to 12% of revenues e.g. Master Data Management, Multi-Channel commerce etc.#7Number of clients contributing >$1mm in LTM revenues Resulting in New Clients and Increasing Revenue Per Client Large, Growing Client Relationships 350 300 250 200 150 3 100 131 119 50 0 FY04 4 16 39 Increasing revenue per client 7.8 8.1 6.2 10 4.7 327 8 268 3.6 6 2.7 2.2 4 2 0 FY09 ■100mm+ 50-100mm 20-50mm 1-20mm FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09 Execution excellence resulted in high share of repeat business (97.6% in FY 09)#8Market Opportunities Global Mega Trends Asia - New "center of gravity" for the world "Geography becomes History" with reduced telecommunication costs Technology - the supreme enabler Infosys - Transformation Partner Differentiated access to highly educated, cost-competitive human capital Leading the Next-Generation Business Model and investing in innovations and business solutions Redefining scalability with modular global infrastructure 8#9Offshore Outsourcing is a Global Mega Trend Outsourcing Benefits . • • Convert fixed costs to variable Reduce TCO Improve competitiveness Improve time-to-market • Enhance ROI Offshore Benefits Deliver high quality at great value Highly scalable with a large resource pool available Proven track record Global 500 and Fortune 1000 IT Spending Σ Trend setters for the rest of the business world Σ Combined IT spend represents 40% of global IT spending [ IT budget constitutes 2.3% of $20 trillion combined revenues Offshore Addressable Market is Increasing $732bn ~$31bn CAGR: ~ 7% CAGR: ~ 24% ~$60bn $899bn Source: Gartner 2007; Deutsche Bank Securities; NASSCOM 2007 2010 Worldwide Services (IT + BPO) Spending Offshore Services (IT + BPO) Spending 9#10Competitive Situation India Uniquely positioned Source: 1. NASSCOM Strategic Review 2007 (includes engineering services and software products) 2. NASSCOM Strategic Review 2004 3. Annual report 2005-06, HRD Ministry, Government of India High Quality Delivery and Offerings • Established track record of exceptional quality Expanded offerings that encompass the entire value chain Abundant Skilled Resources 2.5 million English speaking graduate pool² 1,478 engineering colleges with a capacity to produce over 500,000 engineering graduates annually³ Established Industry Services market (including BPO) estimated at $50 billion in 2008, exports to grow to $60 billion by 2010¹ Offshore 'home' for virtually all the leading technology companies Strong Government Support "Tax Holiday" schemes Supportive Government policy environment Significant Benefits • Substantial cost savings associated with moving offshore Large intangible benefits such as reduced time to market#11Competitive Situation Convergence causing disruption to legacy business models Need to: Σ Replace resources Σ Overcome "offshore-is-cost-center" mindset Σ Combat revenue cannibalization Provide seamless sales and delivery Σ Reduce SG&A Client Visibility Non-GDM Large Onsite Firms GDM Infosys (~1990s) (~1980s) GDM Client ROI GDM + Consulting Next Generation Business Model: Σ Consulting + solution mindset Σ Continue to strengthen brand Σ Strengthen Board-level relationships Thought Leadership#12Strategy and approach to market Strategy · To have superior revenue growth and margins relative to the industry Have end-to-end service capability, deep vertical penetration, broad geographical footprint Increase revenue productivity and build long-term scalability by creating industry specific solutions, platforms, IP etc. Approach to market 'One Infy' Cross-selling of services Vertical focus to create industry specific competencies Investing in the business Marketing- Strategof#13Talent Management: Hiring the Best Industry wide preferred employer CNBC TV 18 Viewers Choice - New Age Employer of Choice Award 2007 Best company to work for in India (TNS-Mercer. 2006) Able to simultaneously evaluate 10,000+ candidates across 7 cities in India Global hiring US, UK, China and Eastern Europe Supplementing with experienced local hires Tapping non-traditional labor pool Employing non-engineers for infrastructure management, testing and BPO Proactive assistance provided to India's educational system to produce engineers wi high quality software skills#14Developing and Retaining the Best Learning support to employees towards development and career progression, which improves long-term retention and solidifies culture Currently able to train 4,500 entry-level recruits at the Employee Value & Retention Mysore campus simultaneously Targeting to increase the training capacity to 13,500 entry-level recruits Advanced Training Leadership Training Leadership Development Domain Training Client-facing Training Managerial Training Role-Based Development Foundation Training On-the-job Training Quality Training Soft Skills Training Induction Role-Based Development#15Investing in front-end, services and subsidiaries 2007 2008 2009 Sales & Marketing expenses ($ mn) 209 230 239 Sales & Marketing employees 537 604 821 R&D Expenses ($ mn) 37 50 51 Losses in subsidiaries ($ mn) China Consulting Mexico (7) (2) (2) (25) (13) (12) NA (2) (2)#16Robust, Flexible, Modular Global Infrastructure • 54 Global Development Centers ("GDC")* • 27 in India 27 in North America, Europe and Asia-Pacific 22.6 million sq. feet* of total area to house 95,000 employees • 4.6 million sq. feet* under construction to house 20,800 employees Σ Ability to rapidly scale new engagements Σ Flexibility to distribute engagements and capacity across centers worldwide [ Disaster recovery / business continuity capabilities *As of Mar 31, 2009#17Building World Class Systems and Processes Quality par Excellence Benchmarked to Global Standards M SIX SIGMA National Quality Award Award-winning Knowledge Management Processes Σ PRIDE: Infosys process repository Technology-driven Scalable Business Processes IMBA OTR Systems Infosys EFQM Σ Deployment of improvement techniques CMMI 2008 Asian Most Admired Knowledge Enterprise (MAKE) award Balanced Scorecard PCMM People Capability Maturity Model Note: EFQM - European Foundation for Quality Management CMMI-Capability Maturity Model PRIDE - Process Repository at Infosys for Driving Excellence PI Lite Cock intss Litening and Tracking Custler Feedback Infosys Learning and Training revured#18Superior Revenue Growth Revenue Progression 1400 1200 1000 800 600 Quarterly Revenue (US$mm) 400 233 200 Q1 04 Q4 09 CAGR: 31% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY 04 FY 05 FY 06 Q3 FY 07 = Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 08 FY 09 1121#19Sustained, Industry-leading Profitability 350 300 27.5% 250 200 150 Flexible cost structure helps Infosys deliver industry-leading margins 100 58 50 Q1 04 Q4 09 CAGR: 35% 321 35 29.5% 30 25 20 20 15 10 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 04 FY 05 FY 06 FY 07 Q1 Q2 Q3 Q4 FY 08 Q1 Q2 Q3 Q4 FY 09#20Strong and Liquid Balance Sheet Highly liquid (Cash & Investments stand at $2,167 mm)* Zero debt High quality receivables (59.4% aging less than 30 days)* Dividends upto 30% of annual post-tax profits Superior Return on Invested Capital and Capital Employed *As of March 31, 2009#21Short-term and long-term challenges Short-term Uncertain economic environment Cross currency movement. Long-term Resource availability Ability to expand addressable market Wage inflation Stronger rupee Increase in tax rate#22Thank You www.infosys.com Infosys