1. Senior Vice President and Head – Banking Business Unit, Infosys
Girish G Vaidya
Senior Vice President and Head – Banking Business Unit, Infosys

2. Safe Harbor
Certain statements made in this Analyst Meet 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, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, 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 and regional conflicts, 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, 2004 and quarterly report on Form 6-K for the quarter ended June 30, 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
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3. The Changing Banking Paradigm
External drivers compel banks to leverage the developments in Information Technology and continuously innovate
External Drivers
Tool
Result
Regulatory change and consolidation
Product & Service
Innovation
Competitive forces
Technology-led
Innovation
Changing Consumer
Organizational & process Innovation
Technological developments
© Infosys Technologies Limited
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4. Leveraging technology for innovation
Product & Service Innovation
Extensible
Flexible
Parameterizable
Implication for Technology
Organizational and process Innovation
Incorporates best-business practices
Straight Through Processing
Workflows to automate processes
Process Centralization
Single window service
‘’In the past, industry has tended to be overly focused on PRODUCT innovation. Product innovations at best gives a bank a 3 month head start over competition. PROCESS innovation can put a bank more than a year ahead of competition. Continued success, therefore, comes from process innovation. And the ability of the bank to build ongoing process innovation is determined by flexibility and adaptability of its core banking systems’’ - Chairman of a Large International Bank
© Infosys Technologies Limited
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5. Key imperatives for solution providers
Support “end-to-end” solution as well as “best-of-breed” approach
End-to-end solution straddling all banking businesses/ customer channels
Modular architecture – “plug and play” solution
Open technologies to easily work with multitude of applications – for e.g. solutions for niche areas like Regulatory Reporting, Anti Money Laundering (AML) solutions etc.
Flexibility/ extensibility
Greater business agility – USPs, Lower Time-to-Market
Low dependence on vendor for product launches, process changes etc.
Better ROI through
Strong implementation and support capability – upgrades, trouble-shooting
Lower overall cost – hardware, software, network, change management
Future proofing of technology
Scalability
Process efficiencies and resource saving through Straight Through Processing
Support global business rules – multi-entity, currency, country, time-zones etc.
Better management control through relevant and timely MIS
© Infosys Technologies Limited
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6. Risk Growth Efficiency Agility Rules of the Game Lowest overall risk
Most scalable core banking solution
Efficiency
Agility
Cost effective automation
Flexibility beyond parameters
© Infosys Technologies Limited
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7. Infosys offers the lowest overall Risk
Vendor Viability
Strong Balance Sheet and visionary management
End-to-end solution comprising
Fast-growing product suite spanning all banking businesses
Business Process Outsourcing
IT Outsourcing
IT Services
Delivery excellence
Consistent on-time, on-budget delivery
Rapid implementation, setting new benchmarks in every market
Our philosophy is driven by the corporate motto to always strive to deliver beyond expectations
Proven and highly scalable solution
Finacle® powers some of the largest banks world-wide on Open Systems
© Infosys Technologies Limited
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8. Risk Growth Efficiency Agility Rules of the Game Lowest overall risk
Most scalable core banking solution
Efficiency
Agility
Cost effective automation
Flexibility beyond parameters
© Infosys Technologies Limited
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9. Growth – most scalable core banking solution
By aggressively leveraging technology, ICICI Bank has in the last 3 years, grown from a retail bank to a universal bank
2 Mergers in 2 years
Highest peak workload (450 TPS) handled by any open transaction system in the World (Winter Corporation, Waltham, MA, USA)
PNB – one of the largest state owned banks in India, powered by Finacle®, is today LIVE with 30m customers with 10,000 users and is scheduled to cross 60m customers and 20,000 users within the next 12 months
2001
120 branches
2m customers
500k online customers
<1m peak transactions/day
2004
450+ branches
10m+ customers
7m+ online customers
8m peak transactions/day
In a Benchmark on HP Superdome, audited by E&Y, Finacle® clocked >16 m transactions per hour (4,562 TPS) in the online mode (using a real-life transaction mix and measured in terms of business transactions)
© Infosys Technologies Limited
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10. Risk Growth Efficiency Agility Rules of the Game Lowest overall risk
Most scalable core banking solution
Efficiency
Agility
Cost effective automation
Flexibility beyond parameters
© Infosys Technologies Limited
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11. Efficiency – cost effective automation
STP enabled Finacle®
Eliminates manual intervention
CARTS (Complaints And Request Tracking System) at ABN AMRO
Jaguar loan origination system at ABN Amro Bank
Customer migration to channels with Full Service Banking
Delivery channel transactions increased from 6% of the total transactions in 2000 to >70% in 2004 at ICICI Bank
Enables process integration & orchestration (workflow, document imaging)
Integration with Staffware for Trade Services processing at ICICI Bank
Re-use of services (> 100 business services exposed)
© Infosys Technologies Limited
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12. Risk Growth Efficiency Agility Rules of the Game Lowest overall risk
Most scalable core banking solution
Efficiency
Agility
Cost effective automation
Flexibility beyond parameters
© Infosys Technologies Limited
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13. Agility – The product manager’s dream
Extensibility toolkit enables the bank to differentiate and innovate quickly & cost effectively
Launching new products
ABN AMRO – cheque account with loyalty points
ICICI student accounts
Product & Process innovation
Relationship based pricing – family ABN Amro bank
Responding to changing regulatory requirements
AML compliance for cash transactions
Delighting the customers
Event based multi-channel alerts for retail and corporate customers by NCB, a leading Caribbean bank
© Infosys Technologies Limited
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14. Flexibility using parameters
Create segment specific products using standard parameters
ICICI Bank Young Stars
(student banking services)
Women’s account
Extensibility toolkit to create USPs
fleXaccount from ABN AMRO – Savings + Loyalty Points
© Infosys Technologies Limited
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15. Where we were… 31st March, 2000 Revenue $ 5.32 m Employees 193
Countries 8
Products 2
© Infosys Technologies Limited
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16. Substantial investments to further globalize Finacle® …
Global product benchmarks completed
TowerGroup, USA for core banking functionality
Peppers & Rogers for CRM
Celent for e-banking in the US
This year we are investing an additional $ 10 m in Finacle®
Products
Substantial increase in our engineering and domain teams to fast track product developmental activities
New product offerings
Web-based cash management
Wealth management
Sales
More feet on the ground globally
Entry into US and China with a sales team dedicated to products
Expand sales force in Europe and APAC
© Infosys Technologies Limited
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17. … are already showing returns - grabbing a larger share of the pie
Based on analysts’ estimates, we believe the annual size of the market for our products is approximately $ 1 bn (source – TowerGroup, Celent)
We believe that an increasingly large number of banks will take a serious re-look at their technology solutions
Typically core banking solution replacements consider a 3 years+ lifecycle
Revenues get recognized over multiple years
While we continue to dominate the Indian market. We have further consolidated our position in West Africa
We dominate the e-banking space in Saudi Arabia too – 5 out of 5 deals in the last 24 months
In the past 12 months, we have signed deals covering new markets such as USA, Belgium, France, Mainland China, Thailand, Philippines, South Africa, Australia, etc.
The recently concluded SBI deal has further increased our footprint by 9 countries, spanning advanced markets
Awards from ‘The Banker’, London 2004 –
Mobile Solution of the Year
“Commendable” Application of the Year – Corporate e-banking
© Infosys Technologies Limited
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18. Where we are CAGR from March 2000 to June 2004 is 49.3% * LTM
31st March, 2000
30th June, 2004
Revenue ($ m)
5.32
29.20 *
Employees
193
860
Countries 8 29
Overseas sales force - 10
Products 2 6
CAGR from March 2000 to June 2004 is 49.3%
* LTM
© Infosys Technologies Limited
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19. In conclusion…
We believe we have an excellent value proposition for our customers
We are investing in our products substantially and are committed to strengthening Finacle’s position as a leading global banking solution
In the last 12 months we have entered various new markets
We believe we are well on our way to consolidating our position as a leading technology partner for banks worldwide
© Infosys Technologies Limited
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20. Thank You