The creation of a thousand forests is in

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The creation of a thousand forests is in one acorn - Ralph Waldo Emerson

Infosys Financials Aim for the Best V. Balakrishnan Company Secretary and Senior Vice President - Finance © Infosys Technologies Limited 2004 - 05

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, 2005 and the Quarterly Reports on Form 6 - K for the fiscal quarters ended June 30, 2004, September 30, 2004 and December 31, 2004. 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 statement that may be made from time to time by or on behalf of the company. June 11, 2005 © Infosys Technologies Limited 2004 - 05

We successfully completed the Sponsored Secondary ADS Offering Largest international equity offering from India The first Public Offer Without Listing (POWL) in Japan by an Indian company Among the largest demand for any POWL issue in Japan Secondary ADS offering 16 million shares Pricing - US$ 67 per share Size of offering - US$ 1. 07 billion Excess shares returned on - May 30, 2005 Payment of proceeds June 11, 2005 - - On or before June 15, 2005 © Infosys Technologies Limited 2004 - 05

Highlights Achieved revenues of US$ 1. 59 billion during the year Achieved a revenue growth of 50% (in $ terms) as against our guidance of 30% in April 2004 136 clients added during the year Net addition of 11, 116 employees during the year Recommended a final dividend of 130% (Rs. 6. 50 per share), total dividend of 230% for the year, aggregating to Rs. 309. 80 crore S&P credit rating – Pierced the sovereign rating Amongst the first few companies globally to file XBRL report (e. Xtensible Business Reporting Language) Award for the best presented Annual Report for fiscal 2004 received from The Institute of Chartered Accountants of India for the ninth consecutive year June 11, 2005 © Infosys Technologies Limited 2004 - 05

We have a competitive financial model… June 11, 2005 © Infosys Technologies Limited 2004 - 05

… we achieved the best growth rate in the industry… Fiscal 2005 revenue growth rates under Indian GAAP Industry growth 34. 5% Source : CLSA research report Industry data - NASSCOM June 11, 2005 © Infosys Technologies Limited 2004 - 05

…despite moves by global majors to expand offshore… Incumbent global majors Announcing aggressive growth plans in India Enhancing their offshore capabilities Restructuring their costs to be competitive Moving their G&A expenses to India Our Global Delivery Model, evolved over a period of time, gives us the competitive edge June 11, 2005 © Infosys Technologies Limited 2004 - 05

… we balanced growth … 7, 130 % 47 4, 853 % 45 3, 365 % 46 2, 314 2, 335 1, 594 2005 Revenues (Rs. Cr) 2004 2005 % 48 1, 847 1, 244 2005 2004 2005 Gross profit Operating profit Net profit * (Rs. Cr) * Net profit after tax and before exceptional item June 11, 2005 © Infosys Technologies Limited 2004 - 05

…and margins… 47. 7% 47. 2% 32. 8% 2004 2005 25. 6% 25. 9% 2004 2005 Gross profit Operating profit Net profit * (%) (%) * Net profit after tax and before exceptional item June 11, 2005 © Infosys Technologies Limited 2004 - 05

…we are constantly moving up the value chain… Increased contribution from new services (% to total revenue) 2001 2002 2003 2004 2005 Package Implementation 7. 2% 9. 8% 11. 0% 14. 5% 15. 2% Testing 2. 9% 3. 4% 5. 3% 5. 8% Consulting 4. 9% 4. 2% 4. 3% 3. 7% 3. 6% - - 0. 5% 1. 6% 2. 7% Engineering Services 1. 7% 2. 6% 2. 2% 2. 0% Other Services 6. 1% 5. 4% 7. 8% 8. 1% 8. 4% 22. 8% 24. 9% 29. 6% 35. 4% 37. 7% Business Process Management Total Variation in per-capita revenues (in US$ terms)* 2001 2002 2003 2004 2005 Onsite 28. 9% 4. 4% (2. 5)% (2. 9)% 0. 2% Offshore 22. 3% (7. 6)% (4. 7)% (2. 6)% 1. 3% Blended 27. 0% (4. 4)% (0. 8)% (5. 0)% (1. 0)% * Software services June 11, 2005 © Infosys Technologies Limited 2004 - 05

… our Global Delivery Model provides leverage for growth… 2004 Effort mix (%) Onsite Offshore Total Billed person months Onsite Offshore Total Change in billed person months (%) Onsite Offshore Total Utilization rates Including trainees (%) Excluding trainees (%) June 11, 2005 33. 3 66. 7 100. 0 2005 31. 5 68. 5 100. 0 51, 237 102, 852 154, 089 72, 432 157, 815 230, 247 39. 3 55. 1 49. 5 41. 4 53. 4 49. 4 73. 4 82. 0 72. 6 79. 6 © Infosys Technologies Limited 2004 - 05

…we have a well-honed strategy to manage wage inflation… 2004 2005 Wage increase – Offshore 10% 13% Onsite salaries (% to revenues) 35. 6% 32. 6% Offshore salaries (% to revenues) 14. 3% 13. 9% Variable salaries (Rs. cr) 375 307 Variable salary as a % of offshore salary June 11, 2005 16. 1% 21. 6% © Infosys Technologies Limited 2004 - 05

…we did not compromise on investments for the future… 2004 Sales & Marketing cost (Rs. cr) Sales & Marketing employees (No. ) Marketing offices (No. ) 2005 350. 9 461. 0 308 348 28 32 Investments in various corporate initiatives (Rs. cr) : Business plans and banking product development 41. 69 Infosys China 8. 39 Infosys Consulting 33. 03 Total 83. 11 June 11, 2005 © Infosys Technologies Limited 2004 - 05

…we practice what we preach. . 2004 2005 General & Administration expenses (Rs. cr) 369. 2 569. 0 General & Administration cost / revenue (%) 7. 61% 7. 98% G & A personnel 1, 466 1, 985 Total no. of employees 25, 634 36, 750 % to total employees 5. 72% 5. 40% June 11, 2005 © Infosys Technologies Limited 2004 - 05

…we proactively hedge our forex risk… 2004 2005 Forward foreign exchange contracts outstanding as at March 31 ($ Mn) Forward contracts booked ($ Mn) 143 349 759 777 Transaction & translation losses (Rs. cr) (45. 64) Benefit due to hedging (Rs. cr) 65. 07 Net impact (Rs. cr) (1. 03) 8. 82 June 11, 2005 19. 43 9. 85 © Infosys Technologies Limited 2004 - 05

…and the end result – a highly evolved, competitive and variable cost structure. 2005 % 2004 % Income 7, 129. 65 100% 4, 852. 95 100% Software development and BPM expenses 3, 764. 66 53% 2, 538. 67 52% GROSS PROFIT 3, 364. 99 47% 2, 314. 28 48% Selling and marketing expenses 461. 00 6% 350. 90 7% General and administration expenses 568. 98 8% 369. 19 8% 2, 335. 01 33% 1, 594. 19 33% - - 286. 92 4% 236. 73 5% 2, 048. 09 29% 1, 357. 46 28% 123. 90 2% 123. 38 3% -0. 10 0% 9. 67 0% 2, 172. 09 30% 1, 471. 17 30% 325. 58 5% 227. 54 5% 1, 846. 51 26% 1, 243. 63 26% 45. 19 1% - - 1, 891. 70 27% 1, 243. 63 26% 0. 03 0% - - 1, 891. 67 27% 1, 243. 63 26% Operating profit before interest, depreciation and amortization Interest Depreciation and amortization 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 June 11, 2005 © Infosys Technologies Limited 2004 - 05

Our subsidiaries are engines of growth June 11, 2005 © Infosys Technologies Limited 2004 - 05

Subsidiaries performance Progeon Limited Infosys Technologies (Australia) Pty. Limited Infosys Technologies (Shanghai) Company Ltd. Infosys Consulting Inc. Apr 2002 Jan 2004 Oct 2003 Apr 2004 Total investment (Rs. cr) 24. 50 66. 69 23. 01 44. 87 Holding % 99. 54 100. 00 191. 22 303. 23 8. 19 21. 11 FY 05 PAT (Rs. cr) 30. 06 (1. 28) (8. 39) (33. 03) Employees (No. ) 3, 966 416 122 68 Formed FY 05 Revenue (Rs. cr) June 11, 2005 © Infosys Technologies Limited 2004 - 05

We have a strong Balance Sheet… June 11, 2005 © Infosys Technologies Limited 2004 - 05

…and maintain high liquidity… Infosys Balance Sheet Mar 31, 2005 Rs. cr % SOURCES OF FUNDS Share capital 135. 29 2 Reserves and surplus 5, 089. 82 96 Minority interest 0. 14 - Preference shares 93. 51 2 Total 100 5, 318. 76 APPLICATION OF FUNDS Fixed assets 30 Investments 2. 04 - Deferred tax assets 44. 37 1 Sundry debtors 1, 322. 00 25 Cash and equivalents 2, 998. 01 56 Other net current assets 15 810. 75 Current liabilities (1, 432. 56) (27) Total 1, 574. 15 100 5, 318. 76 We continue to be a zero-debt company June 11, 2005 © Infosys Technologies Limited 2004 - 05

…we manage our receivables well… 2005 2004 4. 6% 1. 2% 4. 6% 8. 3% 25. 6% 33. 0% 54. 1% 68. 6% Days of sales receivable - 48 days Days of sales receivable - 67 days * Age profile of accounts receivable 0 -30 31 -60 June 11, 2005 61 -90 >90 * Includes Rs. 236 cr due from one large customer, which was received in the first week of April 2005 © Infosys Technologies Limited 2004 - 05

…we have clear policies on returns and dividends… Target Times cost of Capital ROIC (%) 2005 48. 1% 51. 4% 2. 8 3. 4 3. 8 79. 9% 2. 0 2004 46. 9% ROCE (%) 2003 137. 5% 123. 6% Times cost of Capital 3. 0 4. 7 9. 8 9. 1 Days sales outstanding 60 52 48 67# Cash & equivalents / total assets * 40. 0% 57. 3% 85. 1% 54. 4% Cash & equivalents / revenue * 25. 0% 45. 2% 58. 2% 41. 6% Dividend % (% to net profits)** Upto 20% 19. 95 17. 79 18. 48 # Includes Rs. 236 cr due from a large customer, which was collected in the first week of April 2005 * Cash and cash equivalents include investments in liquid mutual funds ** Excluding one-time special dividend in Fiscal 2004 June 11, 2005 © Infosys Technologies Limited 2004 - 05

…we have a risk management policy … Risk governance structure in place Risks due to both external and internal are measured and reported Business Objectives External Risk Factors Internal Risk Factors Financial performance Achieve revenue growth Increase revenue productivity Sustain profitability Client and market focus Grow client relationships Differentiate client offerings Broaden geographical footprint Execution excellence Leverage Global Delivery Model Control operational costs Improve quality & productivity Organizational development Develop and retain competencies Develop a global workforce Develop 3 tiers of leadership Macro economic factors Financial reporting risks Exchange rate fluctuations Liquidity and leverage Political environment Contractual compliance Competitive environment Compliance with local laws Concentration of revenues Intellectual property management June 11, 2005 Inflation and cost structure Immigration regulations Security and business continuity Technology obsolescence Engagement execution Integration of subsidiaries Human resource management Culture, values and leadership © Infosys Technologies Limited 2004 - 05

… and we manage our risks… 2003 2004 2005 Total clients 345 393 Clients added 92 119 Top client contribution to revenue Top 5 clients contribution to revenue Top 10 clients contribution to revenue Clients accounting for >5% of revenue 438 136 5. 8% 23. 4% 37. 3% 2 No. of clients with revenues 1 million $ + 115 5 million $ + 41 10 million $ + 16 20 million $ + 9 30 million $ + 3 40 million $ + 2 50 million $ + 60 million $ + 70 million $ + 80 million $ + - 166 71 42 19 11 8 5 3 1 131 51 25 12 6 4 3 - Million dollar clients / total clients Repeat Business (%) 92% June 11, 2005 1 33. 3% 93% 5. 0% 22. 6% 36. 0% 1 5. 5% 21. 0% 33. 6% 1 33. 3% 95% 37. 9% © Infosys Technologies Limited 2004 - 05

… we keep the business model simple… No off-balance sheet items No Special Purpose Vehicles Provide for all known losses What you see is what you get June 11, 2005 © Infosys Technologies Limited 2004 - 05

… Simplicity has its rewards. 193. 73 122. 05 107. 96 6. 75 7. 38 11. 50 32. 59 28. 01 26. 35 2003 2004 2005 Book value (Rs. ) Price earnings (multiple) Dividend per share* (Rs. ) * Excluding one-time dividend in fiscal 2004 June 11, 2005 © Infosys Technologies Limited 2004 - 05

Would you have backed this group? 1, 52, 064 83, 170 68, 259 2003 2004 2005 1980 s June 11, 2005 Market Price / Adjusted IPO Price (%) © Infosys Technologies Limited 2004 - 05

The hidden treasure 2003 2004 2005 Average of employees (Yrs) 26. 6 Education index 44, 972 74, 057 100, 351 HR value (Rs. cr) 10, 778 21, 140 28, 334 Brand value (Rs. cr) 7, 488 8, 185 14, 153 EVA (Rs. cr) 690 1, 132 Value added (Rs. cr) 3, 051 4, 185 Attrition (%) 10. 50 9. 70 14. 44 44. 54 74. 39 0. 40 0. 94 455 6. 90 R & D expenditure (Rs. cr) R & D expenditure / revenue (%) 26. 0 6, 053 1. 08 * Consolidated June 11, 2005 © Infosys Technologies Limited 2004 - 05

Consistently Meeting or Exceeding Guidance* Revenue (US$mm) Guidance Revenue Annually Quarterly FY 02 Earnings per ADS (US$) Actual FY 03 FY 05 Earnings per ADS Quarterly FY 02 FY 04 FY 03 FY 04 Annually FY 05 * Guidance given at beginning of quarter/year June 11, 2005 © Infosys Technologies Limited 2004 - 05

Financial Highlights – US GAAP… 0% 5 1, 592 1, 063 % 50 688 % 56 460 456 293 2004 2005 Revenues (US$ million) June 11, 2005 2004 5% 5 419 270 2005 2004 2005 Gross profit Operating income Net income (US$ million) © Infosys Technologies Limited 2004 - 05

… Financial Highlights – US GAAP 43. 3% 43. 2% 27. 6% 2004 2005 28. 6% 2004 2005 25. 4% 26. 3% 2004 2005 Gross profit Net income (%) June 11, 2005 Operating income (%) © Infosys Technologies Limited 2004 - 05