Financial Performance 2007 -2008 V Balakrishnan Chief Financial

Financial Performance 2007 -2008 V. Balakrishnan Chief Financial Officer

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, 2008 and the Quarterly Reports on Form 6 -K for the fiscal quarters ended June 30, 2007, September 30, 2007 and December 31, 2007. These filings are available at www. sec. gov. 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 2007 -08

Highlights » Revenues crossed US $4 billion in Fiscal 2008 » Revenue growth of 35% in US dollar terms as against our guidance of 28 -30% in April 2007 » Net Profit crossed US $1 billion in Fiscal 2008 » Maintained operating margins despite 11% rupee appreciation » Added 170 new clients during the year » Gross addition of 33, 177 employees (Net addition 18, 946) » Awarded the best presented Annual Report for fiscal 2007 by the Institute of Chartered Accountants of India (ICAI) © Infosys Technologies Limited 2007 -08

Highlights » Recommended a final dividend of Rs. 7. 25 per share (145% on par value of Rs. 5 per share) and a special dividend of Rs. 20 per share (400% on par value of Rs. 5 per share). Including Interim dividend, the total dividend recommended for the year is Rs. 33. 25 per share (665% on par value of Rs. 5 per share) amounting to Rs. 1, 902 cr which is the largest dividend payout by any private sector company in India » Dividend payout ratio increased up to 30% of net profits from upto 20% of net profits from Fiscal 2009 onwards © Infosys Technologies Limited 2007 -08

While rupee appreciation impacted our revenue growth… 20% % 16 Revenues (Rs. cr. ) Gross profit (Rs. cr. ) % 19 Operating profit (Rs. cr. ) Based on consolidated Indian GAAP Financials * Net profit after tax and minority interest, before exceptional item and tax reversals © Infosys Technologies Limited 2007 -08 22% Net profit* (Rs. cr. )

…We still maintained our margins. Gross profit (%) Operating profit (%) * Net profit after tax and minority interest, before exceptional item and tax reversals © Infosys Technologies Limited 2007 -08 Net profit* (%)

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 2007 -08

Our service mix had become richer…. Increased contribution from new services (% to total revenue) 2004 2005 2006 2007 2008 18. 2 18. 8 19. 7 21. 1 23. 8 Testing services 5. 3 5. 8 5. 9 6. 9 7. 5 Infrastructure Management 2. 1 3. 0 3. 6 4. 4 4. 9 Business Process Management 1. 6 2. 7 4. 0 4. 7 5. 7 Product Engineering Services 2. 2 2. 0 1. 8 1. 6 Other services 7. 1 6. 8 8. 0 7. 1 4. 7 36. 5 39. 1 43. 1 45. 8 48. 2 Consulting Services and Package Implementation Total © Infosys Technologies Limited 2007 -08

…which resulted in higher revenue productivity. Variation in per-capita revenues (in US$ terms) Onsite 2004 (2. 9)% 2005 0. 2% 2006 0. 3% 2007 4. 4% 6. 9% Offshore (2. 6)% 1. 3% 0. 8% 2. 7% 6. 1% Blended (5. 0)% (1. 0)% 0. 7% 4. 9% 5. 2% © Infosys Technologies Limited 2007 -08 2008

We Continued to leverage the Global Delivery Model 2007 2008 Effort mix (%) Onsite Offshore Total Billed person months Onsite 32. 9 67. 1 100. 0 31. 7 68. 3 100. 0 134, 767 165, 595 Offshore Total 274, 989 409, 756 357, 196 522, 790 40. 9 33. 1 35. 6 22. 9 29. 9 27. 6 69. 1 77. 1 70. 7 76. 9 Change in billed person months (%) Onsite Offshore Total Utilization rates Including trainees (%) Excluding trainees (%) © Infosys Technologies Limited 2007 -08

While wages went up during the year…. 2007 Wage increase – Offshore – Onsite 2008 13% -15% 13%-15% 2% - 3% 5%- 6% Onsite salaries (% to revenues) 32. 4% 32. 0% Offshore salaries (% to revenues) 15. 6% 17. 8% 599 702 24. 9% 26. 7% Variable salaries (Rs. cr. ) Variable salary as a % of offshore salary © Infosys Technologies Limited 2007 -08

…we got the scale benefits in G&A 2007 2008 General & Administration expenses (Rs. cr. ) 1, 115 1, 331 General & Administration cost / revenue (%) 8. 0% © Infosys Technologies Limited 2007 -08

While the currency appreciated sharply during the year…. 2007 2008 This Year 45. 06 40. 00 Previous Year 44. 21 45. 06 % change 1. 9% (11. 3%) This Year 43. 10 40. 02 Previous Year 44. 48 43. 10 (3. 1%) (7. 1%) 470 760 (21) (98) Benefit due to hedging (Rs. cr. ) 63 103 Net impact (Rs. cr. ) 42 5 Average rupee dollar rate Period end rupee dollar rate % change Forward contracts and options outstanding as at March 31 ($ mn) Transaction & translation losses (Rs. cr. ) © Infosys Technologies Limited 2007 -08

…. We reduced the impact through active hedging Q 1 Translation Gain / (Loss) (Rs. cr. ) Forward contract – Gain / (Loss) (Rs. cr. ) Grand Total (Rs. cr. ) Hedge position (USD mn) © Infosys Technologies Limited 2007 -08 Q 2 Q 3 Q 4 FY 08 (114) (32) (36) 84 (98) 188 27 19 (131) 103 74 (4) (17) (47) 5 925 1, 413 1, 147 760

We continued to invest for growth 2007 2008 929 916 Selling & Marketing expenses / revenues (%) 6. 7 5. 5 Sales & Marketing employees (No. ) 537 604 43 57 167 201 (29) (7) (111) (51) NA (7) Sales & Marketing expenses (Rs. cr. ) Marketing offices (No. ) R&D Expenses (Rs. cr. ) Losses in subsidiaries (Rs. cr. ) China Consulting Mexico © Infosys Technologies Limited 2007 -08

The end result Rs. cr. 2007 % 2008 % 13, 893 100% 16, 692 100% Software development and BPM expenses 7, 458 54% 9, 207 55% GROSS PROFIT 6, 435 46% 7, 485 45% 929 7% 916 5% General and administration expenses 1, 115 8% 1, 331 8% Operating profit before interest and depreciation 4, 391 32% 5, 238 31% – – 514 4% 598 4% 3, 877 28% 4, 640 28% 372 3% 704 4% 2 0% – – 4, 247 31% 5, 344 32% 386 3% 685 4% 3, 861 28% 4, 659 28% 6 – – – 3, 867 28% 4, 659 28% 11 – – 3, 856 28% 4, 659 Income Selling and marketing expenses Interest Depreciation Operating profit after interest, depreciation and amortization Other income Provision for investments NET PROFIT BEFORE TAX Provision for taxation NET PROFIT AFTER TAX Exceptional item NET PROFIT AFTER TAX, EXCEPTIONAL ITEM & BEFORE MINORITY INTEREST Minority interest NET PROFIT AFTER TAX, EXCEPTIONAL ITEM & MINORITY INTEREST © Infosys Technologies Limited 2007 -08 28%

We have a strong Balance Sheet Rs. cr. SOURCES OF FUNDS Share capital Reserves and surplus 2008 % 2007 % 286 2 13, 509 98 10, 969 97 4 1 Minority interest Total – 13, 795 100 11, 259 100 Fixed assets 4, 777 35 3, 771 34 Investments 72 – 25 – 119 – 92 1 Sundry debtors 3, 297 24 2, 436 22 Cash & equivalents 8, 235 60 6, 008 53 Other current assets 1, 486 11 1, 077 10 Current liabilities (4, 191) (30) (2, 150) (19) Total 13, 795 100 11, 259 100 APPLICATION OF FUNDS Deferred tax assets We continue to be a zero-debt company © Infosys Technologies Limited 2007 -08

Receivables were under control Days of sales receivable – 67 days Days of sales receivable – 64 days 0 – 30 31– 60 61 – 90 > 90 Age profile of accounts receivable © Infosys Technologies Limited 2007 -08

We continue to balance between liquidity and returns Target Times cost of capital ROIC (%) 2008 45. 7% 41. 4% 3. 5 3. 1 94. 0% 2. 0 2007 44. 9% ROCE (%) 2006 88. 8% 71. 12% Times cost of capital 3. 0 7. 3 5. 9 5. 3 Days sales outstanding 60 61 64 67 Cash & cash equivalents / total assets* 40. 0% 64. 7% 50. 3% 57. 0% Cash & cash equivalents / revenue* 25. 0% 49. 4% 42. 7% 49. 1% Upto 20% 19. 4 19. 9 19. 8 Dividend % (% to net profits)** Indian GAAP standalone * Cash and cash equivalents include investments in liquid mutual funds ** Excluding Silver Jubilee special dividend in 2006 © Infosys Technologies Limited 2007 -08

Performance of Subsidiaries © Infosys Technologies Limited 2007 -08

Infosys BPO Limited » Formed : Apr 2002 » Investment (Rs. cr. ) : 659 » Holding (%) – Mar 2008 : 99. 98 Infosys BPO Limited FY 07 FY 08 Growth(%) Revenue (Rs. cr. ) 662 937 41. 5 PAT (Rs. cr. ) 152 153 0. 7 PAT / Revenue (%) 23. 0 16. 3 No. of Employees 11, 226 16, 295 © Infosys Technologies Limited 2007 -08 45. 2

Infosys Australia » Acquired : Jan 2004 » Investment (Rs. cr. ) : 66 » Holding (%) – Mar 2008 : 100. 00 Infosys Technologies (Australia) Pty Limited FY 07 FY 08 Growth(%) Revenue (Rs. cr. ) 446 556 24. 7 PAT (Rs. cr. ) 71 101 42. 3 PAT / Revenue (%) 15. 9 18. 2 No. of Employees 306 363 © Infosys Technologies Limited 2007 -08 18. 6

Infosys China » Formed : Oct 2003 » Investment (Rs. cr. ) : 46 » Holding (%) – Mar 2008 : 100. 00 Infosys Technologies (China) Co. Limited Revenue (Rs. cr. ) FY 08 PAT (Rs. cr. ) No. of Employees © Infosys Technologies Limited 2007 -08 FY 07 60 (29) 669 FY 08 Growth(%) 77 28. 3 (7) 699 4. 5

Infosys Consulting » Formed : Apr 2004 » Investment (Rs. cr. ) : 171 » Holding (%) – Mar 2008 : 100. 00 Infosys Consulting Inc. , Revenue (Rs. cr. ) PAT (Rs. cr. ) No. of Employees © Infosys Technologies Limited 2007 -08 FY 07 FY 08 Growth(%) 213 246 15. 5 (111) (51) 209 265 26. 8

Infosys Mexico Infosys Technologies S. de R. L. de C. V. , Mexico Formed Investment (Rs. cr. ) Aug 2007 22 Holding (%) – Mar 2008 100. 00 FY 08 Revenue (Rs. cr. ) 3 FY 08 PAT (Rs. cr. ) (7) Employees 75 © Infosys Technologies Limited 2007 -08

Financial Highlights – US GAAP © Infosys Technologies Limited 2007 -08

Financial highlights % 35 31% 35% 36% ( US$ Million ) © Infosys Technologies

Financial highlights Gross profit (%) © Infosys Technologies Limited 2007 -08 Operating income (%)

The power of the intangibles 2006 2007 2008 26. 0 148, 499 203, 270 251, 970 27. 6% 30. 9% 32. 5% Attrition (%) – Including involuntary separation 11. 2 13. 7 13. 4 Attrition (%) – Excluding involuntary separation 10. 6 12. 2 12. 1 HR value (Rs. cr. ) 46, 637 57, 452 98, 821 Brand value (Rs. cr. ) 22, 915 31, 617 31, 863 EVA (Rs. cr. ) 1, 540 2, 122 2, 286 Value added (Rs. cr. ) 8, 030 11, 879 14, 820 R&D expenditure (Rs. cr. ) 102 167 201 R&D expenditure / revenue (%) 1. 07 1. 30 Average of employees (years) Education index Women employees / total employees (%) © Infosys Technologies Limited 2007 -08

The road ahead – Guidance FY 09 Guidance Indian GAAP Revenue (FY 09) Rs. cr. Year on year growth EPS (Rs. ) Year on year growth 19, 894 – 20, 214 19. 2 – 21. 1% 92. 32 – 93. 92 16. 3 – 18. 3% US GAAP Revenue (FY 09) USD mn 4, 971 – 5, 051 Year on year growth 19. 0 – 21. 0% EPS (USD) 2. 31 – 2. 35 Year on year growth 16. 7 – 18. 7% © Infosys Technologies Limited 2007 -08

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