1.
One great year at work…

2. Safe Harbor
Certain statements on this presentation concerning our 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 Hexaware 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.

3. Agenda
Financial Performance
Industry
Challenges
Outlook

4. Hexaware - A scalable model

5. Scalable model
Solutions
Market
Customers
Management
Infrastructure

6. Solutions Enterprise solutions – a focus area
Growing market
Range of services & products
Mainframe & application maintenance
Strong base and experience
Proven methodologies
Web based solutions
Large size projects
Huge experience base
Niche solutions
Leasing
HR IT

7. Market Europe – increased focus
Successes in Germany
Growing market for offshoring in key markets
25% revenue from Europe
US continues to improve

8. Customers 28 Fortune 500/ Global 500 clients
Increased offshore spending from existing customers
16 customers billing more than 1 million
More 5 million and 10 million dollar customers
Large satisfied client base

9. Management Depth of management
Experience
Number
Large number of senior management close to customers
Stability of senior management

10. Infrastructure Facilities State of art technology set-up
Multiple locations
Capacity to ramp up
State of art technology set-up
Completely wired locations
Business continuity

11. Infrastructure

12. Financial Performance

13. Highlights

14. Profit and Loss

15. Balance Sheet

16. Verticals

17. Region-wise

18. Onsite-Offshore Mix

19. Cash & Equivalents

20. Human Resources

21. Business Outlook

22. Operating Cost Leverage Key Customer ramp-up
Guidance for FY 2004
In INR
YoY Growth
In USD
YoY
Growth
Revenue
4,590 mn
35.5%
102 mn
40%
Profit After Tax
459 mn
168%
10.2 mn
175%
EPS Rs.
USD
19.70 -
156%
0.44
160%
@ 1 USD=Rs. 45.0
Factors:
Growing Order Book
Operating Cost Leverage
Key Customer ramp-up
Better Utilization and Onsite: Offshore Mix
Compensation increase
Foreign Exchange Parity

23. 5 year strategic game plan
BREAK OUT
Internal &
External Drivers
& Challenges
Offshore an economic reality in OECD region
Low corporate brand visibility
Significant room to improve financial ratios
Growing execution and retention challenges
Incubation of new lines of businesses
Sustainability of growth and niche leadership
BUILD BASE
Rapidly improving external market environment
Execution challenges
Retention and management bandwidth
Rising investor expectations
TURN-AROUND
External scenario improving
Pricing instability
Client acquisition and relationship management
Increasing scrutiny from investors
REPAIR
B U S I N E S S S C E N A R I O
Uncertain economic environment
Value proposition to be defined
Profitability
Market status -Underperformer
STABILIZE
Post-merger
Re-structuring
Unprofitable
Business Mix
High Fixed Costs FY FY FY FY
FY 2005-

24. Key Strategies 5 year strategic game plan Niche Dominance Grow rapidly
STABILIZE
REPAIR
TURN AROUND
BUILD BASE
BREAK OUT FY FY FY FY FY
Post Merger Restructuring
Setting Strategic Direction
Clean up financials
Stabilize existing revenues & client relationships
Identify major cost areas for reduction
Aggressive Customer acquisition
Win “light house’ Deals
Target operational break even
Cost rationalization- target SGA costs & utilization levels
Stabilize cash flows
Invest in defined niche, competency areas
Revenue growth at industry level rates
Quarterly growth in bottom line – grow Margin aggressively
Establish leadership in select niche areas
Build Investor base
Intense focus on Key Account Mgmt.
Continuing focus on cost reduction – SG&A, utilization levels
Invest in retention & improve ability to attract top talent
Revenue growth FASTER than industry
Bottom line reach peer levels
Continue aggressive leadership focus in key niche areas
Incubate new LoBs
Build strategic Investor base
Focus on branding & corporate image building
P/E expansion focus – corporate governance; leadership; HR branding;
Stand-out Growth rates for top line & niches
Better than industry level financial metrics
Establish market dominance in select niche areas
Emerging LoBs are 15% of revenue
Build alternate Revenue streams
Aggressive focus on branding
P/E expansion- leading P/E multiples
Peer recognition as market leaders thru industry surveys
BUSINESS PERFORMANCE
Re-structure
Set Direction
Start winning
Clients
Grow rapidly
Niche Dominance
Key
Strategies
5 year strategic game plan

25. Indicators of growth High growth potential
Over 16 clients with $1mn+ billing currently
28 clients acquired in the
Year 2003
28 Global 500 clients
Order book: $170 Mn over 5 years
High growth potential

26. Order Book 3 clients in USD 10 Mn+ 3 clients in USD 5 Mn+

27. Challenges Salary increase – some uncertainty Currency depreciation
Ability to attract executive talent in sufficient numbers, particularly for execution

28. Thank You
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