FINANCIAL PERFORMANCE FOR THE YEAR ENDED MARCH 31, 2001 FINANCIAL PERFORMANCE FOR THE YEAR ENDED MARCH 31, 2001 All brand names, product names or logos referenced in this presentation are trademarks or registered trademarks of their respective companies or organizations © 2001 Infosys All rights reserved th Annual General Meeting

© 2001 Infosys All rights reserved 20 th Annual General Meeting 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.

© 2001 Infosys All rights reserved 20 th Annual General Meeting Highlights More than 100% year-on-year growth in Revenue and Profit after tax before extraordinary items in all the four quarters during the year Total dividend of Rs per share (200% on par value of Rs. 5) for the year taking the total amount of dividend to Rs crore as against Rs crore for the previous year FII investment limit increased to 49% from 40% Awarded silver shield for best presented accounts by ICAI, for the sixth consecutive time More than 100% year-on-year growth in Revenue and Profit after tax before extraordinary items in all the four quarters during the year Total dividend of Rs per share (200% on par value of Rs. 5) for the year taking the total amount of dividend to Rs crore as against Rs crore for the previous year FII investment limit increased to 49% from 40% Awarded silver shield for best presented accounts by ICAI, for the sixth consecutive time

© 2001 Infosys All rights reserved 20 th Annual General Meeting % Total income (Rs.cr) Exports (Rs.cr) Operating profit (Rs.cr) Year at a glance 115% 114%

© 2001 Infosys All rights reserved 20 th Annual General Meeting * From ordinary activities Year at a glance (contd…) PBT (Rs.cr) PAT* (Rs.cr) Basic EPS* (Rs) % 118%

© 2001 Infosys All rights reserved 20 th Annual General Meeting 41.1%41.3% PBIDT (%) 35.3% 35.5% PBT* (%) PAT* (%) % 31.0% Year at a glance (contd…) * From ordinary activities

© 2001 Infosys All rights reserved 20 th Annual General Meeting Extra-ordinary items Infosys piloted the venture – OnMobile Systems Inc as part of the incubation scheme for employees to launch their own ventures while continuing to derive benefits from a close association with the company. During the year, Infosys transferred its intellectual property rights in the Onscan product – a web enabled notification product to OnMobile Systems Inc for a gross consideration of Rs 8.93 crore (Rs 5.49 crore – net of tax) received in the form of equity, preferred voting and non-voting securities Infosys piloted the venture – OnMobile Systems Inc as part of the incubation scheme for employees to launch their own ventures while continuing to derive benefits from a close association with the company. During the year, Infosys transferred its intellectual property rights in the Onscan product – a web enabled notification product to OnMobile Systems Inc for a gross consideration of Rs 8.93 crore (Rs 5.49 crore – net of tax) received in the form of equity, preferred voting and non-voting securities

© 2001 Infosys All rights reserved 20 th Annual General Meeting Provision for investments Pending the conclusion of liquidation proceedings, provision has been made for investments and accounts receivable in EC Cubed Inc., and Alpha Thinx Mobile Phone Services AG. Rs.cr InvestmentAccounts Cumulative receivablebillings EC Cubed Inc Alpha Thinx Mobile Phone Services AG Total Pending the conclusion of liquidation proceedings, provision has been made for investments and accounts receivable in EC Cubed Inc., and Alpha Thinx Mobile Phone Services AG. Rs.cr InvestmentAccounts Cumulative receivablebillings EC Cubed Inc Alpha Thinx Mobile Phone Services AG Total

© 2001 Infosys All rights reserved 20 th Annual General Meeting Leveraging the Global Delivery Model 16 state-of-the-art development centers in India Global development center in Toronto, Canada 6 proximity development centers in Fremont, Boston, Chicago, New Jersey, Phoenix, Arizona in the US and in London, UK Sales and marketing offices in 25 locations across the globe …we link customers worldwide. 16 state-of-the-art development centers in India Global development center in Toronto, Canada 6 proximity development centers in Fremont, Boston, Chicago, New Jersey, Phoenix, Arizona in the US and in London, UK Sales and marketing offices in 25 locations across the globe …we link customers worldwide.

© 2001 Infosys All rights reserved 20 th Annual General Meeting Fiscal year ended March 31, Per-capita revenues (US$ 000)Billed manmonths (‘000)Revenues (US$ Mn) 80% CAGR 50% CAGR 20% CAGR Drivers of growth 103% 60% 28% Fiscal year ended March 31,

© 2001 Infosys All rights reserved 20 th Annual General Meeting Revenue Segmentation

© 2001 Infosys All rights reserved 20 th Annual General Meeting Geographic segments

© 2001 Infosys All rights reserved 20 th Annual General Meeting Business segments

© 2001 Infosys All rights reserved 20 th Annual General Meeting Vertical domains

© 2001 Infosys All rights reserved 20 th Annual General Meeting Technology segments

© 2001 Infosys All rights reserved 20 th Annual General Meeting Project segmentation

© 2001 Infosys All rights reserved 20 th Annual General Meeting Onsite-offshore segmentation

© 2001 Infosys All rights reserved 20 th Annual General Meeting De-risking Business Portfolio Risks

© 2001 Infosys All rights reserved 20 th Annual General Meeting Client concentration FY 2001FY 2000FY 1999 Active clients Clients added during the year % of revenue from top client7.3%7.2%6.4% % of revenue from top 5 clients26.0%30.2%28.4% % of revenue from top 10 clients39.2%45.7%44.0% Clients accounting for >5% of revenues345 Repeat business (%)85%87%90% No. of million-dollar clients No. of 5-million-dollar clients19106 No. of 10-million-dollar clients 114- No. of 20-million-dollar clients3-- FY 2001FY 2000FY 1999 Active clients Clients added during the year % of revenue from top client7.3%7.2%6.4% % of revenue from top 5 clients26.0%30.2%28.4% % of revenue from top 10 clients39.2%45.7%44.0% Clients accounting for >5% of revenues345 Repeat business (%)85%87%90% No. of million-dollar clients No. of 5-million-dollar clients19106 No. of 10-million-dollar clients 114- No. of 20-million-dollar clients3--

© 2001 Infosys All rights reserved 20 th Annual General Meeting Repeat business

© 2001 Infosys All rights reserved 20 th Annual General Meeting E-business exposure Q1Q2Q3Q4FY 01 Internet & e-commerce related revenues ($ mn) Of this, business from –  Established corporations62%70%80%84%75%  Dot-coms & venture -funded companies38%30%20%16%25% Q1Q2Q3Q4FY 01 Internet & e-commerce related revenues ($ mn) Of this, business from –  Established corporations62%70%80%84%75%  Dot-coms & venture -funded companies38%30%20%16%25%

© 2001 Infosys All rights reserved 20 th Annual General Meeting Q1 Q2Q3Q4FY 01 Revenues from dot-com & internet start-up companies10.9%9.5%5.8%4.0%7.1% Telecom start-up companies6.3%2.7%3.5%3.0%3.7% Total start-up and venture funded companies17.2%12.2%9.3%7.0%10.8% Q1 Q2Q3Q4FY 01 Revenues from dot-com & internet start-up companies10.9%9.5%5.8%4.0%7.1% Telecom start-up companies6.3%2.7%3.5%3.0%3.7% Total start-up and venture funded companies17.2%12.2%9.3%7.0%10.8% Revenues from start-up and venture funded companies

© 2001 Infosys All rights reserved 20 th Annual General Meeting Maintained A Strong Balance Sheet

© 2001 Infosys All rights reserved 20 th Annual General Meeting A strong balance sheet... (Rs. crore) Mar 31, 2001%Mar 31, 2000% SOURCES OF FUNDS Share capital Reserves and surplus Current liabilities & provisions Total APPLICATION OF FUNDS Fixed assets Investments Sundry Debtors Cash and equivalents Other current assets Total CONTINUED TO BE A ZERO-DEBT COMPANY (Rs. crore) Mar 31, 2001%Mar 31, 2000% SOURCES OF FUNDS Share capital Reserves and surplus Current liabilities & provisions Total APPLICATION OF FUNDS Fixed assets Investments Sundry Debtors Cash and equivalents Other current assets Total CONTINUED TO BE A ZERO-DEBT COMPANY

© 2001 Infosys All rights reserved 20 th Annual General Meeting Capital investment (Rs.cr) Depreciation (Rs.cr) Depreciation/ revenues (%) Inspite of increased Capex spending 190% 112%

© 2001 Infosys All rights reserved 20 th Annual General Meeting Cash flows continue to be strong… (Rs. crore) FY 2001FY 2000 Operating cash flows Financing cash flows(39.82)(21.53) Proceeds on exercise of stock options Dividends paid(42.20)(19.92) Expenses related to issue of ADSs / ADSs linked stock options-(3.37) Investing cash flows(452.22)(146.16) Purchases of fixed assets(463.35)(159.87) Proceeds on sale of fixed assets Long-term investments(26.63)(13.08) Income from investments Effect of exchange differences Net increase in cash & cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (Rs. crore) FY 2001FY 2000 Operating cash flows Financing cash flows(39.82)(21.53) Proceeds on exercise of stock options Dividends paid(42.20)(19.92) Expenses related to issue of ADSs / ADSs linked stock options-(3.37) Investing cash flows(452.22)(146.16) Purchases of fixed assets(463.35)(159.87) Proceeds on sale of fixed assets Long-term investments(26.63)(13.08) Income from investments Effect of exchange differences Net increase in cash & cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

© 2001 Infosys All rights reserved 20 th Annual General Meeting Days of sales receivable - 56 daysDays of sales receivable - 58 days Age profile of Accounts Receivable...While receivables are continuously monitored.

© 2001 Infosys All rights reserved 20 th Annual General Meeting Other Key Performance Indicators

© 2001 Infosys All rights reserved 20 th Annual General Meeting Effort and margins analysis

© 2001 Infosys All rights reserved 20 th Annual General Meeting 40.6% 56.1% 54.2% Return on Average Net Worth (RONW) 46.3% 62.6% 63.5% Return on Capital Employed (ROCE) 111.7% 105.7% 93.5% Return on Invested Capital (ROIC) Other performance indicators

© 2001 Infosys All rights reserved 20 th Annual General Meeting Capital Output Ratio Invested Capital Output Ratio Enterprise value/ total revenue (X) Other performance indicators

© 2001 Infosys All rights reserved 20 th Annual General Meeting * From ordinary activities. Other performance indicators EPS* (Rs.) Cash EPS* (Rs.) Dividend per share (Rs.) Restated on par value of Rs.5 and adjusted for bonus issues in earlier years.

© 2001 Infosys All rights reserved 20 th Annual General Meeting Book value (Rs.) Price Earnings (x) 151,076 68,547 24, Market price/ Adjusted IPO price (%) Restated on par value of Rs.5 and adjusted for bonus issues in earlier years. Other performance indicators

© 2001 Infosys All rights reserved 20 th Annual General Meeting FY 2001FY 2000FY 1999 Brand value (Rs.cr)5,3765,2461,727 EVA (Rs.cr) Value added (Rs.cr)1, HR value (Rs.cr)5, , Education index28,72515,54410,731 Average age of employees (years) Revenue from image enhancing clients (%)52%47%49% FY 2001FY 2000FY 1999 Brand value (Rs.cr)5,3765,2461,727 EVA (Rs.cr) Value added (Rs.cr)1, HR value (Rs.cr)5, , Education index28,72515,54410,731 Average age of employees (years) Revenue from image enhancing clients (%)52%47%49% Strength of the invisibles

© 2001 Infosys All rights reserved 20 th Annual General Meeting Financial Highlights US GAAP

© 2001 Infosys All rights reserved 20 th Annual General Meeting Amounts in US$ mn Year at a glance Revenues Gross profit Operating income % 117% 127%

© 2001 Infosys All rights reserved 20 th Annual General Meeting Operating income (excl. stock comp) Net income Net income (excl. stock comp) Amounts in US$ mn Year at a glance (Contd…) 117% 115% 106%

© 2001 Infosys All rights reserved 20 th Annual General Meeting Year at a glance (Contd…) 32.3% 34.5% Operating income (excl. stock comp) / revenues 32.7% 33.1% Net income (excl. stock comp) / revenues Basic EPS ( excl. stock comp) ($) %

© 2001 Infosys All rights reserved 20 th Annual General Meeting US GAAP and Indian GAAP reconciliation (US$ Mn) FY 2001FY 2000 Net profit as per Indian GAAP Adjustments Deferred tax Provision for retirement benefit to employees0.74(0.74) Employee stock-based compensation(5.08)(5.12) Provision for contingencies/e-inventing(0.09)(1.42) Transfer of intellectual property rights (net of tax)(1.23)- Net income as per US GAAP (US$ Mn) FY 2001FY 2000 Net profit as per Indian GAAP Adjustments Deferred tax Provision for retirement benefit to employees0.74(0.74) Employee stock-based compensation(5.08)(5.12) Provision for contingencies/e-inventing(0.09)(1.42) Transfer of intellectual property rights (net of tax)(1.23)- Net income as per US GAAP

© 2001 Infosys All rights reserved 20 th Annual General Meeting Service To Investors

© 2001 Infosys All rights reserved 20 th Annual General Meeting Investor services 87.7% of share transfers in physical form completed within 15 days during the year Investor grievances/ correspondence attended to within a period of 10 days (Except in cases constrained by disputes or legal impediments) Over 98% of the company’s shares are now held in electronic form Pending share transfer related litigation - 13 cases 87.7% of share transfers in physical form completed within 15 days during the year Investor grievances/ correspondence attended to within a period of 10 days (Except in cases constrained by disputes or legal impediments) Over 98% of the company’s shares are now held in electronic form Pending share transfer related litigation - 13 cases

© 2001 Infosys All rights reserved 20 th Annual General Meeting Community Initiatives

© 2001 Infosys All rights reserved 20 th Annual General Meeting Community services Grants of Rs.5.26 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.  Covered about 800 urban children from 100 schools, 2,000 children in rural schools (in five languages), and 90 engineering college teachers from over about 60 colleges across the country Infosys has donated 744 computers to 272 institutions across India through its classrooms initiative launched in January 1999 Grants of Rs.5.26 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.  Covered about 800 urban children from 100 schools, 2,000 children in rural schools (in five languages), and 90 engineering college teachers from over about 60 colleges across the country Infosys has donated 744 computers to 272 institutions across India through its classrooms initiative launched in January 1999

© 2001 Infosys All rights reserved 20 th Annual General Meeting Our Efforts Were Well Recognized

© 2001 Infosys All rights reserved 20 th Annual General Meeting Awards won during the year For the sixth year in succession, Infosys received the silver shield from the Institute of Chartered Accountants of India for the Best Presented Accounts for Asiamoney poll of financial analysts voted Infosys the best in management among the listed companies in India for the fifth time in a row The Far Eastern Economic Review rated Infosys as the No.1 company in India in the Review 2000, an annual survey of India’s leading companies For the sixth year in succession, Infosys received the silver shield from the Institute of Chartered Accountants of India for the Best Presented Accounts for Asiamoney poll of financial analysts voted Infosys the best in management among the listed companies in India for the fifth time in a row The Far Eastern Economic Review rated Infosys as the No.1 company in India in the Review 2000, an annual survey of India’s leading companies

© 2001 Infosys All rights reserved 20 th Annual General Meeting Thank you