Financial Performance – Year ended March 31, 2002 © Infosys Technologies Limited 2001-2002

This presentation may contain certain forward looking statements 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. June 08, 2002 © Infosys Technologies Limited 2001-2002

Highlights Achieved revenue growth of 32.0% ( in $ terms) as against our guidance of 30% in April 2001 despite a very challenging environment Banking unit revenues grew by over 100% and crossed the Rs.100 crore threshold 116 clients added during the year, of which, 62 were added in the post September 11 period Total dividend of Rs. 20 per share (400% on par value of Rs. 5) taking the payout to 17.0% as compared to 12.0% in the previous year June 08, 2002 © Infosys Technologies Limited 2001-2002

Highlights Board approves investment of up to US$ 5 million for foray into Business Process Management (BPM) Separate company – Progeon Limited formed for the BPM operations Citigroup to invest US$ 20 million in Progeon Limited June 08, 2002 © Infosys Technologies Limited 2001-2002

The year at a glance 37% 36% 2,603.59 2,552.47 34% 1,900.56 1,378.77 1,874.02 1,029.73 2001 2002 2001 2002 2001 2002 Income (Rs.cr) Export Income (Rs.cr) Gross Profit (Rs.cr) June 08, 2002 © Infosys Technologies Limited 2001-2002

The year at a glance 36% 36% 30% Operating Profit PBT PAT* 943.39 1,037.63 807.96 696.03 764.84 623.32 2001 2002 Operating Profit (Rs.cr) 2001 2002 PBT (Rs.cr) 2001 2002 PAT* (Rs.cr) * From ordinary activities June 08, 2002 © Infosys Technologies Limited 2001-2002

Drivers of growth FY98 FY99 FY00 FY01 FY02 In $ terms FY98 FY99 FY00 FY01 FY02 Revenue growth (%) 72.6 77.0 68.2 103.4 31.7 Of which Volume growth (%) 57.0 50.3 49.6 62.0 34.2 Price growth (%) 15.7 26.7 18.6 41.4 (2.5) June 08, 2002 © Infosys Technologies Limited 2001-2002

We experienced intense pricing pressure during the year… FY98 FY99 FY00 FY01 FY02 Per-capita revenue ($ p.m) Onsite 6,600 7,900 8,500 11,000 11,400 Offshore 3,200 3,700 4,400 5,300 4,900 Blended 4,000 4,800 5,700 7,300 6,900 Change in per-capita revenue (%) Onsite 19.7 7.6 29.4 3.6 Offshore 15.6 18.9 20.5 (7.5) Blended 20.0 18.8 28.1 (5.5) June 08, 2002 © Infosys Technologies Limited 2001-2002

… which was negated by higher volume growth. FY98 FY99 FY00 FY01 FY02 Increase in billed person months Onsite 1,638 2,450 5,244 7,842 4,748 Offshore 4,192 5,707 5,006 13,618 16,796 Total 5,830 8,157 10,250 21,460 21,544 Change in billed person months (%) Onsite 72.8 63.0 82.7 67.7 24.4 Offshore 45.8 42.8 26.3 56.6 44.6 Total 51.1 47.3 40.4 60.2 37.7 June 08, 2002 © Infosys Technologies Limited 2001-2002

We improved our utilization… FY 01 Q1 02 Q2 02 Q3 02 Q4 02 FY02 Utilization rates Including trainees (%) 67.4 69.5 68.8 69.6 72.4 70.1 Excluding trainees (%) 78.3 73.2 72.7 72.7 72.9 72.9 June 08, 2002 © Infosys Technologies Limited 2001-2002

…and took various cost control measures. Variable compensation Salary hike during the year linked to attainment of company performance targets Recruitment Just in time recruitment Recruitment based on business outlook Non-revenue generating expenses Reduced non-sales support personnel recruitment during the year Offshoring of onsite functions in non-revenue generating activities June 08, 2002 © Infosys Technologies Limited 2001-2002

…and took various cost control measures. Others Continuous rationalization of internal policies Re-negotiations with vendors Reduction in discretionary spending Vacating leased premises, etc. Cost cuts during the year aggregated 2.4% of revenues (3.5% excluding increase in personnel cost in the US) June 08, 2002 © Infosys Technologies Limited 2001-2002

The US personnel costs had increased… Unanticipated increase in personnel costs in the US due to significantly higher floor pay imposed upon H1B visa holders Additional cost of US$ 6.2 million (1.1% of revenue) June 08, 2002 © Infosys Technologies Limited 2001-2002

…but still maintained our margins. 54.2% 53.0% 40.2% 39.9% 32.8% 31.0% 2001 2002 Gross Profit (%) 2001 2002 Operating Profit (%) 2001 2002 PAT* (%) * From ordinary activities June 08, 2002 © Infosys Technologies Limited 2001-2002

Our revenues are well-segmented © Infosys Technologies Limited 2001-2002

Geographic segments 2000-2001 2001-2002 June 08, 2002 © Infosys Technologies Limited 2001-2002

Business segments 2000-2001 2001-2002 June 08, 2002 © Infosys Technologies Limited 2001-2002

Vertical domains 2000-2001 2001-2002 June 08, 2002 © Infosys Technologies Limited 2001-2002

Technology segments 2000-2001 2001-2002 June 08, 2002 © Infosys Technologies Limited 2001-2002

Project segmentation 2000-2001 2001-2002 June 08, 2002 © Infosys Technologies Limited 2001-2002

Onsite - offshore segmentation 2000-2001 2001-2002 June 08, 2002 © Infosys Technologies Limited 2001-2002

We continue to de-risk our business © Infosys Technologies Limited 2001-2002

Client concentration FY 2002 FY 2001 FY 2000 Active clients 293 273 194 Clients added 116 122 99 % of revenue from top client 6.1% 7.3% 7.2% % of revenue from top 5 clients 24.1% 26.0% 30.2% % of revenue from top 10 clients 39.4% 39.2% 45.7% Clients accounting for >5% of revenue 2 3 4 Million dollar clients 83 80 42 5-million dollar clients 25 19 10 10-million dollar clients 16 11 4 20-million dollar clients 6 3 - Million dollar clients/ total clients 28.3% 29.3% 21.6% June 08, 2002 © Infosys Technologies Limited 2001-2002

Exposure to telecom Category % of telecom revenue % of total revenue FY 02 FY 01 FY 02 FY 01 Service providers 31.4 20.8 4.9 3.8 Product companies 2.9 7.5 0.4 1.4 Equipment manufacturers 65.1 68.0 10.2 12.6 Others 0.6 3.7 0.1 0.6 Total 100.0 100.0 15.6 18.4 June 08, 2002 © Infosys Technologies Limited 2001-2002

We have a strong and liquid balance sheet (Rs. crore) Mar 31, 2002 % Mar 31, 2001 % SOURCES OF FUNDS Share capital 33.09 2 33.08 2 Reserves and surplus 2,047.22 98 1,356.56 98 Total 2,080.31 100 1,389.64 100 APPLICATION OF FUNDS Fixed assets 718.24 35 557.66 40 Investments 44.44 2 34.12 2 Deferred tax assets 24.22 1 - - Sundry debtors 336.73 16 302.37 22 Cash and equivalents 1,026.96 49 577.74 42 Other current assets 389.13 19 237.60 17 Current liabilities & provisions (459.41) (22) (319.85) (23) Continued to be a zero-debt company June 08, 2002 © Infosys Technologies Limited 2001-2002

Our receivables are under control 2001-2002 2000-2001 Days of sales receivable - 47 days Days of sales receivable – 58 days Age profile of accounts receivable June 08, 2002 © Infosys Technologies Limited 2001-2002

We continue to invest for the future Hired 1,548 people with a net addition of 907 for the year Sales force strengthened with an addition of 39 people during the year New sales offices opened in Netherlands, Singapore and Switzerland Capex of Rs. 322.74 crore during the year of which Rs. 67.40 crore was spent on technological infrastructure June 08, 2002 © Infosys Technologies Limited 2001-2002

Our cash flows are strong… (Rs. crore) FY 2002 FY 2001 Operating cash flows 820.96 540.32 Financing cash flows (104.77) (39.82) Proceeds on exercise of stock options 4.60 2.38 Dividends paid (109.37) (42.20) Investing cash flows (280.23) (451.30) Purchases of fixed assets (322.74) (463.35) Proceeds on sale of fixed assets 1.60 0.23 Long-term investments (10.32) (26.65) Interest income 51.23 38.47 Effect of exchange differences 13.26 20.17 Net increase in cash and cash equivalents 449.22 69.37 Cash and cash equivalents, beginning of year 577.74 508.37 Cash and cash equivalents, end of year 1,026.96 577.74 June 08, 2002 © Infosys Technologies Limited 2001-2002

…despite heavy investment in capex. 463.35 322.74 42% 6.2 5.9 160.65 112.89 2001 2002 Capital Investment (Rs.cr) Depreciation (Rs.cr) 2001 2002 Depreciation / Revenues (%) 2002 2001 June 08, 2002 © Infosys Technologies Limited 2001-2002

Cash Management © Infosys Technologies Limited 2001-2002

Our cash management policies Financial policies Maintain liquid assets at 25% of revenue and 40% of total assets Earn Return on capital - 2x cost of capital Return on average invested capital – 3x cost of capital Our current cost of capital is estimated to be 17.17% 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 June 08, 2002 © Infosys Technologies Limited 2001-2002

Cash management – How we performed Target FY 2002 FY 2001 FY 2000 ROCE (%) 54.4% 62.6% 46.3% Times cost of capital 2.0 3.2 2.9 2.0 ROIC (%) 83.1% 105.4% 111.6% Times cost of capital 3.0 4.8 5.0 5.0 Operating cash flows / revenues 30.0% 31.5% 28.4% 28.3% Days sales outstanding 60 47 58 56 Cash & equivalents / total assets 40.0% 49.4% 41.6% 61.0% Cash & equivalents / revenue 25.0% 39.4% 30.4% 57.6% June 08, 2002 © Infosys Technologies Limited 2001-2002

Other Performance Indicators © Infosys Technologies Limited 2001-2002

Other performance indicators 111.6% 105.4% 83.1% 62.6% 56.1% 54.4% 46.6% 46.3% 40.6% 2000 2001 2002 2000 2001 2002 2000 2001 2002 Return on Average Net Worth (RONW) (%) Return on Capital Employed (ROCE) (%) Return on Invested Capital (ROIC) (%) June 08, 2002 © Infosys Technologies Limited 2001-2002

Other performance indicators 3.66 3.34 2.79 1.71 1.50 1.25 78.5% 79.8% 83.9% 2000 2001 2002 2000 2001 2002 2000 2001 2002 Capital Output Ratio Invested Capital Output Ratio Value Added / Total Revenue (%) June 08, 2002 © Infosys Technologies Limited 2001-2002

Other performance indicators 146.4 122.12 111.29 94.23 51.28 43.23 17.0% 12.0% 11.6% 2000 2001 2002 2000 2001 2002 2000 2001 2002 EPS from Ordinary Activities (Rs.) Cash EPS* (Rs.) Dividend Payout (%) June 08, 2002 © Infosys Technologies Limited 2001-2002

Other performance indicators 151,076 314.31 68,547 62,737 210.05 207.48 125.97 43.19 30.50 2000 2001 2002 2000 2001 2002 2000 2001 2002 Market Price / Adjusted IPO Price (%) Book Value (Rs.) Price Earnings (x) June 08, 2002 © Infosys Technologies Limited 2001-2002

Strength of the invisibles FY 2002 FY 2001 FY 2000 Brand value (Rs.cr) 7,256 5,376 5,246 EVA (Rs.cr) 510 389 129 Value added (Rs.cr) 2,239 1,563 723 HR value (Rs.cr) 9,539 5,123 2,237 Education index 31,385 28,725 15,544 Average age of employees 26.60 25.67 26.14 Revenue from image enhancing clients (%) 56% 52% 47% June 08, 2002 © Infosys Technologies Limited 2001-2002

Financial Highlights US GAAP © Infosys Technologies Limited 2001-2002

32% 27% 30% Revenues Gross Profit Operating Income 545.05 413.85 200.24 255.02 137.51 178.55 2001 2002 2001 2002 2001 2002 Revenues (US$ million) Gross Profit (US$ million) Operating Income (US$ million) June 08, 2002 © Infosys Technologies Limited 2001-2002

Operating Income (excl. stock comp) 183.55 29% 24% 25% 169.47 164.47 142.59 137.03 131.95 2001 2002 2001 2002 2001 2002 Operating Income (excl. stock comp) Net Income Net Income (excl. stock comp) (US$ million) June 08, 2002 © Infosys Technologies Limited 2001-2002

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) 99.05% of the company’s shares are now held in electronic form Pending share transfer related litigation - 18 cases June 08, 2002 © Infosys Technologies Limited 2001-2002

Community services Grants of Rs.3.75 crore during the year to Infosys Foundation, a not-for-profit trust to support initiatives that benefit society at large Continued the social programs initiated in 1999 – Catch Them Young, Rural Reach and Train The Trainer Infosys has donated 1,185 computers to 435 institutions across India through its Computers @ Classrooms initiative launched in January 1999 June 08, 2002 © Infosys Technologies Limited 2001-2002

Awards won during the year The Institute of Chartered Accountants of India award for best presented annual report in 2001 for the seventh successive year The Institute of Company Secretaries of India National Award for excellence in corporate governance Asiamoney award for best investor relations in India for 2001 Corporate Citizenship Award by The Economics Times of India Ranked No.1 in the CG Watch 2002, the CLSA study on corporate governance practices in emerging markets June 08, 2002 © Infosys Technologies Limited 2001-2002

Thank You w w w . i n f o s y s . c o m © Infosys Technologies Limited 2001-2002