© Infosys Technologies Limited Financial Performance V. Balakrishnan Chief Financial Officer

© Infosys Technologies Limited 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, 2007 and the Quarterly Reports on Form 6-K for the fiscal quarters ended June 30, 2006, September 30, 2006 and December 31,2006. 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 statements that may be made from time to time by or on behalf of the company.

© Infosys Technologies Limited Highlights »Revenues of US $3 billion in Fiscal 2007 »Revenue growth of 44% in dollar terms and 46% in rupee terms as against our guidance of 28-30% in April 2006 »Recommended a final dividend of Rs per share (130% on par value of Rs. 5 per share) amounting to Rs. 371 crores. Including Interim dividend, the total dividend recommended for the year is Rs per share (230% on par value of Rs. 5 per share) amounting to Rs. 649 crores »Added 160 clients during the year »Net addition of 19,526 employees »Award for the best presented Annual Report for fiscal 2006 received from The Institute of Chartered Accountants of India (ICAI) for the 11th consecutive year

© Infosys Technologies Limited Sponsored Secondary ADS Program »Completed sponsored secondary offering of ADS in Nov 2006 – size of USD 1.6 billion, the largest international equity offering from India at that time »Included in NASDAQ Global Select Market in July 2006 »First Indian company to be added to the NASDAQ-100 Index and the only Indian company to be part of any major global indices

© Infosys Technologies Limited A great year – Growth exceeded our expectations GuidanceActual Revenue (Q1) Rs. Cr.2,793 – 2,8163,015 EPS12.38 – Revenue (Q2) Rs. Cr.3,257 – 3,2803,451 EPS14.73 – Revenue (Q3) Rs. Cr.3,602 – 3,6253,655 EPS Revenue (Q4) Rs. Cr.3,789 – 3,7983,772 EPS

© Infosys Technologies Limited Revenue and profit grew faster… Based on consolidated Indian GAAP Financials * Net profit after tax and minority interest, before exceptional item and tax reversals 46% 44% 42% 52%

© Infosys Technologies Limited …While margins were maintained. * Net profit after tax and minority interest, before exceptional item and tax reversals

© Infosys Technologies Limited Business mix became richer…. Increased contribution from new services (% to total revenue) Package Implementation11.0%14.5%15.2%16.2%17.5% Testing3.4%5.3%5.8%5.9%6.9% Consulting4.3%3.7%3.6%3.5%3.6% Business Process Management 0.5%1.6%2.7%4.0%4.7% Engineering Services2.6%2.2%2.0%1.8%1.6% Other services7.8%8.1%8.4%9.7%9.4% Total29.6%35.4%37.7%41.1%43.7%

© Infosys Technologies Limited …resulting in higher revenue productivity. Variation in per-capita revenues (in US$ terms) Onsite(2.5)%(2.9)%0.2%0.3%4.4% Offshore (4.7)%(2.6)%1.3%0.8%2.7% Blended (0.8)%(5.0)%(1.0)%0.7%4.9%

© Infosys Technologies Limited We continued to leverage the Global Delivery Model Effort mix (%) Onsite Offshore Total100.0 Billed person months Onsite95,675134,767 Offshore206,579274,989 Total302,254409,756 Change in billed person months (%) Onsite Offshore Total Utilization rates Including trainees (%) Excluding trainees (%)

© Infosys Technologies Limited Wages increased during the year Wage increase – Offshore15% – Onsite3% Onsite salaries (% to revenues)32.9%32.4% Offshore salaries (% to revenues)14.5%15.6% Variable salaries (Rs. Cr.) Variable salary as a % of offshore salary25.3%24.9%

© Infosys Technologies Limited The G&A expenses were under control General & Administration expenses (Rs. Cr.)7641,115 General & Administration cost / revenue (%)8.0% G&A personnel2,7763,548 Total no. of employees52,71572,241 % to total employees5.3%4.9%

© Infosys Technologies Limited We continued to invest for growth ) Sales & Marketing expenses (Rs. Cr.) Selling & Marketing expenses / revenues (%) Sales & Marketing employees (No.) Marketing offices (No.)3743 2) R&D Expenses (Rs. Cr.) ) Losses in subsidiaries : China(17)(29) Consulting(36)(111)

© Infosys Technologies Limited The currency moved favorably Average rupee dollar rate This Year Previous Year % change(1.5%)1.9% Period end rupee dollar rate This Year Previous Year % change2.0%(3.1%) Forward contracts and options outstanding as at March 31 ($ Mn) Transaction & translation losses (Rs. Cr.)(8)(21) Benefit due to hedging (Rs. Cr.)(69)63 Net impact (Rs. Cr.)(77)42

© Infosys Technologies Limited The end result 2006% 2007% Income9,521100%13,893100% Software development and BPM expenses5,06653%7,45854% GROSS PROFIT4,45547%6,43546% Selling and marketing expenses6006%9297% General and administration expenses7648%1,1158% Operating profit before interest and depreciation3,09132%4,39132% Interest–––– Depreciation4375%5144% Operating profit after interest, depreciation and amortization2,65428%3,87728% Other income1391%3723% Provision for investments10%2 NET PROFIT BEFORE TAX2,79229%4,24731% Provision for taxation3133%3863% NET PROFIT AFTER TAX2,47926%3,86128% Exceptional item––6– NET PROFIT AFTER TAX, EXCEPTIONAL ITEM & BEFORE MINORITY INTEREST2,47926%3,86728% Minority interest21–11– NET PROFIT AFTER TAX, EXCEPTIONAL ITEM & MINORITY INTEREST2,45826%3,85628%

© Infosys Technologies Limited We have a Healthy Balance Sheet Rs. Cr.2007%2006% SOURCES OF FUNDS Share capital Reserves and surplus10,969976,82897 Minority interest Total11, , APPLICATION OF FUNDS Fixed assets3,771332,22632 Investments– –2 – Deferred tax assets Sundry debtors2,436221,60823 Cash & equivalents6,073544,70966 Other current assets1, Current liabilities(2,150)(19)(2,346)(33) Total11, , We continue to be a zero-debt company

© Infosys Technologies Limited We exercise tight control over receivables Age profile of accounts receivable 0 – 3031– 6061 – 90> 90 Days of sales receivable – 64 days Days of sales receivable – 61 days

© Infosys Technologies Limited We continue to balance between liquidity and profitability * Cash and cash equivalents include investments in liquid mutual funds ** Excluding Silver Jubilee special dividend in 2006 Target ROCE (%)51.4%44.9%45.7% Times cost of capital ROIC (%)123.6%94.0%89.1% Times cost of capital Days sales outstanding Cash & cash equivalents / total assets * 40.0%54.4%64.7%50.6% Cash & cash equivalents / revenue * 25.0%41.6%49.4%43.0% Dividend % (% to net profits)**Upto 20%

© Infosys Technologies Limited Our revenues are well diversified Revenue by Industry Vertical Insurance, Banking & Financial Services Manufacturing Telecom Retail Others Revenue by Geography North America Europe India Rest of the World

© Infosys Technologies Limited The power of the intangibles Average age of employees (years)26.0 Education index100,351148,499203,270 Women employees / total employees (%)24.9%27.6%30.9% Attrition (%) HR value (Rs. Cr.)28,33446,63757,452 Brand value (Rs. Cr.)14,15322,91531,617 EVA (Rs. Cr.)1,1321,5402,122 Value added (Rs. Cr.)6,0538,03011,879 R&D expenditure (Rs. Cr.) R&D expenditure / revenue (%)

© Infosys Technologies Limited Performance of subsidiaries Infosys BPO Limited FormedApr 2002 Investment (Rs. Cr.)637 Holding (%) – Mar Shares Buyback in FY 2007 – Citicorp – IBPO employees 87,50,000 2,11,909 FY07 Revenue (Rs. Cr.)662 FY07 PAT (Rs. Cr.)152 FY07 PAT %22.9 Y-o-Y Growth Revenue %74.7 Y-o-Y Growth PAT %63.4 Employees as of March 31, ,226

© Infosys Technologies Limited Performance of subsidiaries Infosys Technologies (Australia) Pty Limited AcquiredJan 2004 Investment (Rs. Cr.) 66 Holding (%) – Mar FY07 Revenue (Rs. Cr.)446 FY07 PAT (Rs. Cr.) 71 FY07 PAT %15.9 Y-o-Y Growth Revenue %39 Y-o-Y Growth PAT %294 Employees as of March 31,

© Infosys Technologies Limited Performance of subsidiaries Infosys Technologies (China) Co. Limited FormedOct 2003 Investment (Rs.Cr.)46 Holding (%) – Mar FY07 Revenue (Rs.Cr.)60 FY07 PAT (Rs.Cr.)(29) Employees669

© Infosys Technologies Limited Performance of subsidiaries Infosys Consulting Inc., FormedApr 2004 Investment (Rs.Cr.) 90 Holding (%) – Mar FY07 Revenue (Rs.Cr.)213 FY07 PAT (Rs.Cr.)(111) Employees209

© Infosys Technologies Limited Financial statements - US GAAP

© Infosys Technologies Limited Financial highlights 44% 45% 42% 53% ( US$ Million )

© Infosys Technologies Limited Financial highlights

© Infosys Technologies Limited RISK MANAGEMENT

© Infosys Technologies Limited Infosys’ unified view of the Risk Universe - Regulatory dynamics- Contractual compliance - IP management- Contractual exposures - Data security management- Litigation/violation response - Operations planning - Complex execution management - Execution excellence- Contingency planning - Systems & processes - Talent supply management- Scalability of infrastructure - Talent development- Deployment efficiency - Career Value Management - Vendor selection- Supply-chain management - Vendor exposure- Customer exposure - Credit management- Customer concentration - Geopolitical change- Industry & market dynamics - Technical innovation- Access to capital - Competition intensity- Market selection - Planning effectiveness- Service differentiation - Growth engines- Brand and reputation - Leadership- Execution of strategy Strategy Industry Counter-party Resources Operations Compliance Information for decision-making

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© Infosys Technologies Limited