--------20th Annual General Meeting--------
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
20th 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
20th 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. 10.00 per share (200% on par value
of Rs. 5) for the year taking the total amount of dividend
to Rs. 66.16 crore as against Rs. 29.76 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
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20th Annual General Meeting
Year at a glance
1959.94
921.46
1874.03
869.70
808.92
378.88
2000
2001
2000
2001
2000
2001
Total income
Exports
Operating profit
(Rs.cr)
(Rs.cr)
(Rs.cr)
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20th Annual General Meeting
Year at a glance (contd…)
696.03
623.32
325.65
285.95
94.23
43.23
2000
* From ordinary activities
2001
2000
2001
2000
2001
PBT
PAT*
Basic EPS*
(Rs.cr)
(Rs.cr)
(Rs)
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20th Annual General Meeting
Year at a glance (contd…)
41.1% 41.3%
2000
2001
PBIDT (%)
* From ordinary activities
35.3% 35.5%
2000
2001
PBT* (%)
31.0% 31.8%
2000
2001
PAT* (%)
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20th 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
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20th 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
EC Cubed Inc.
Investment
Accounts
receivable
Cumulative
billings
13.08
4.67
23.02
2.21
1.49
6.58
15.29
6.16
29.60
Alpha Thinx Mobile Phone
Services AG.
Total
© 2001 Infosys All rights reserved
20th 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.
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20th Annual General Meeting
Drivers of growth
413.85
413.85
203.4
203.4
121
68.3
42
39.6
11.4
1997
48
87
68
57
87
57.1
17.2
25.4
35.6
1998
1999
2000
57.1
35.6
2001
Fiscal year ended March 31,
Per-capita revenues (US$ 000)
68
Billed manmonths (‘000)
2000
2001
Fiscal year ended March 31,
Revenues (US$ Mn)
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Revenue Segmentation
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20th Annual General Meeting
Geographic segments
5.8%
1.4%
6.3%
1.4%
18.8%
14.8%
73.5%
78.0%
N.America
Europe
ROW
India
1999-2000
N.America
Europe
ROW
India
2000-2001
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20th Annual General Meeting
Business segments
4.7% 2.6%
2.0%
0.7%
1.6%
2.5%
1.7%
6.1%
2.9%
40.0%
6.0%
43.7%
4.9%
7.2%
10.1%
9.3%
28.6%
Development
Re-engineering
Consulting
Engineering services
Products
1999-2000
25.4%
Maintenance
Package implementation
Testing
Other services
Development
Re-engineering
Consulting
Engineering services
Products
Maintenance
Package implementation
Testing
Other services
2000-2001
© 2001 Infosys All rights reserved
20th Annual General Meeting
Vertical domains
17.8%
23.0%
15.1%
17.4%
2.8%
2.2%
3.0%
14.2%
1.4%
15.0%
10.6%
15.4%
9.1%
19.5%
15.1%
18.4%
Manufacturing
Insurance
Manufacturing
Insurance
Banking & financial services
Telecom
Banking & financial services
Telecom
Retail
Utilities
Retail
Utilities
Transportation & logistics
Others
Transportation & logistics
Others
1999-2000
2000-2001
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20th Annual General Meeting
Technology segments
7.4%
8.3%
5.1%
6.8%
13.6%
44.6%
47.2%
28.4%
25.0%
Distributed systems
Mainframe/mid-range
Internet
Proprietary telecom systems
Others
1999-2000
13.6%
Distributed systems
Mainframe/mid-range
Internet
Proprietary telecom systems
Others
2000-2001
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20th Annual General Meeting
Project segmentation
28.2%
31.5%
68.5%
71.8%
Fixed Price
Time and Material
1999-2000
Fixed Price
Time and Material
2000-2001
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20th Annual General Meeting
Onsite-offshore segmentation
48.5%
51.5%
51.5%
48.5%
Onsite
Offshore
1999-2000
Onsite
Offshore
2000-2001
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De-risking Business Portfolio Risks
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Client concentration











Active clients
Clients added during the year
% of revenue from top client
% of revenue from top 5 clients
% of revenue from top 10 clients
Clients accounting for >5%
of revenues
Repeat business (%)
No. of million-dollar clients
No. of 5-million-dollar clients
No. of 10-million-dollar clients
No. of 20-million-dollar clients
FY 2001
FY 2000
FY 1999
273
122
7.3%
26.0%
39.2%
194
99
7.2%
30.2%
45.7%
115
39
6.4%
28.4%
44.0%
3
85%
80
19
11
3
4
87%
42
10
4
-
5
90%
35
6
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20th Annual General Meeting
Repeat business
Repeat business ($ million)
FY 95
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
Total
FY 95
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
18.0
24.4
2.2
21.1
12.1
6.3
22.1
18.3
16.4
11.5
27.5
28.6
24.1
28.8
12.1
31.1
33.6
37.2
47.4
28.9
25.2
18.0
26.6
39.6
68.3
121.0
203.4
34.3
45.9
64.1
69.5
47.6
88.2
64.1
413.9
91.8
8.2
53.4
30.6
16.0
32.3
26.8
24.0
16.9
22.7
23.6
19.9
23.8
10.0
15.3
16.5
18.3
23.3
14.2
12.4
100.0
100.0
100.0
100.0
100.0
Repeat business (% of total revenue)
100.0
FY 95
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
100.0
Total
8.3
11.1
15.5
16.8
11.5
21.3
15.5
100.0
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20th Annual General Meeting
E-business exposure


Q1
Q2
Q3
Q4
FY 01
23.0
30.8
32.5
31.2
117.5
Established
corporations
62%
70%
80%
84%
75%
Dot-coms & venture
-funded companies
38%
30%
20%
16%
25%
Internet & e-commerce
related revenues ($ mn)
Of this, business from –


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20th Annual General Meeting
Revenues from start-up and venture funded companies



Q1
Q2
Q3
Q4
FY 01
Revenues from dot-com
& internet start-up
companies
10.9%
9.5%
5.8%
4.0%
7.1%
Telecom start-up
companies
2.7%
3.5%
3.0%
3.7%
17.2% 12.2%
9.3%
7.0%
10.8%
Total start-up and
venture funded
companies
6.3%
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20th Annual General Meeting
Maintained A Strong Balance Sheet
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20th 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
33.08
1356.56
319.85
1709.49
2
79
19
100
33.08
800.23
165.96
999.27
3
80
17
100
APPLICATION OF FUNDS
Fixed assets
Investments
Sundry Debtors
Cash and equivalents
Other current assets
Total
557.66
34.12
302.37
577.74
237.60
1709.49
33
2
18
34
14
100
207.34
13.83
136.18
508.37
133.55
999.27
21
1
14
51
13
100
CONTINUED TO BE A ZERO-DEBT COMPANY
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20th Annual General Meeting
...Inspite of increased Capex spending
463.35
5.8
5.8
2000
2001
159.87
112.89
53.23
2000
2001
Capital investment
(Rs.cr)
2000
2001
Depreciation
(Rs.cr)
Depreciation/
revenues (%)
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20th Annual General Meeting
Cash flows continue to be strong…
(Rs. crore)







FY 2001
FY 2000
Operating cash flows
541.23
Financing cash flows
(39.82)
Proceeds on exercise of stock options
2.38
Dividends paid
(42.20)
Expenses related to issue of ADSs /
ADSs linked stock options
Investing cash flows
(452.22)
Purchases of fixed assets
(463.35)
Proceeds on sale of fixed assets
0.22
Long-term investments
(26.63)
Income from investments
37.55
Effect of exchange differences
20.17
Net increase in cash & cash equivalents
69.36
Cash and cash equivalents, beginning of year
508.37
Cash and cash equivalents, end of year
577.74
249.48
(21.53)
1.76
(19.92)
(3.37)
(146.16)
(159.87)
0.10
(13.08)
26.69
9.93
91.71
416.66
508.37
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20th Annual General Meeting
...While receivables are continuously monitored.
2.5%
1.7%
1.7%
1.8%
26.6%
31.8%
64.7%
0-30
31-60
61-90
>90
Age profile of Accounts
Receivable
69.2%
0-30
31-60
61-90
>90
Days of sales receivable - 56 days
Days of sales receivable - 58 days
1999-2000
2000-2001
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20th Annual General Meeting
Other Key Performance Indicators
© 2001 Infosys All rights reserved
20th Annual General Meeting
Effort and margins analysis
10,000
51.0%
9,000
50.0%
8,000
49.0%
48.0%
7,000
47.0%
6,000
46.0%
5,000
45.0%
4,000
44.0%
3,000
43.0%
2,000
42.0%
1,000
41.0%
0
Bench and training
manmonths
Q1
FY00
Q2
FY00
Q3
FY00
Q4
FY00
Q1
FY01
Q2
FY01
Q3
FY01
Q4
FY01
2,420
3,419
4,186
3,254
3,982
6,877
7,691
9,077
40.0%
US GAAP gross margins 48.1% 45.6% 45.3% 43.7% 47.7% 48.7% 47.3% 49.6%
(%)
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20th Annual General Meeting
Other performance indicators
111.7% 105.7%
93.5%
63.5%
54.2%
56.1%
40.6%
62.6%
46.3%
1999 2000 2001
1999 2000 2001
Return on Average
Net Worth (RONW)
Return on Capital
Employed (ROCE)
1999 2000 2001
Return on Invested Capital
(ROIC)
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20th Annual General Meeting
Other performance indicators
63.84
3.64
3.66
3.34
18.08
1.36
1.25
1999 2000
13.44
1.71
2001
Capital Output
Ratio
1999 2000
2001
Invested Capital
Output Ratio
1999
2000 2001
Enterprise value/
total revenue (X)
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20th Annual General Meeting
Other performance indicators
111.29
94.23
51.28
43.23
26.30
20.71
1999
10.00
2000
2001
EPS* (Rs.)
1999
2000
2001
3.75
4.50
1999
2000
Cash EPS* (Rs.)
2001
Dividend per
share (Rs.)
Restated on par value of Rs.5 and adjusted for bonus issues in earlier years.
* From ordinary activities.
© 2001 Infosys All rights reserved
20th Annual General Meeting
Other performance indicators
151,076
68,547
210.05
125.97
86.84
1999 2000 2001
Book value (Rs.)
207.48
24,632
70.74
43.19
1999 2000 2001
Price Earnings (x)
1999 2000 2001
Market price/
Adjusted IPO price (%)
Restated on par value of Rs.5 and adjusted for bonus issues in earlier years.
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20th Annual General Meeting
Strength of the invisibles
FY 2001
FY 2000
FY 1999
5,376
5,246
1,727
389.02
129.06
70.78

Brand value (Rs.cr)

EVA (Rs.cr)

Value added (Rs.cr)
1,563.18
723.31
374.11

HR value (Rs.cr)
5,123.42
2,237.42
945.70

Education index
28,725
15,544
10,731

Average age of
employees (years)
25.67
26.14
26.14
52%
47%
49%

Revenue from image
enhancing clients (%)
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20th Annual General Meeting
Financial Highlights
US GAAP
© 2001 Infosys All rights reserved
20th Annual General Meeting
Year at a glance
413.85
203.44
200.24
137.51
92.36
60.50
2000
2001
Revenues
2000
2001
Gross profit
2000
2001
Operating income
Amounts in US$ mn
© 2001 Infosys All rights reserved
20th Annual General Meeting
Year at a glance (Contd…)
142.59
137.03
131.95
65.62
2000
66.46
61.34
2001
Operating income
2000
2001
Net income
2000
2001
Net income
(excl. stock comp)
(excl. stock comp)
Amounts in US$ mn
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20th Annual General Meeting
Year at a glance (Contd…)
34.5%
32.3%
32.7%
33.1%
2.08
1.01
2000
2001
2000
2001
2000
2001
Operating income
Net income
Basic EPS
(excl. stock comp)
/ revenues
(excl. stock comp)
/ revenues
(excl. stock comp)
($)
© 2001 Infosys All rights reserved
20th Annual General Meeting
US GAAP and Indian GAAP reconciliation
(US$ Mn)
FY 2001
FY 2000
136.84
67.78
0.77
0.85
0.74
(0.74)
Employee stock-based compensation
(5.08)
(5.12)
Provision for contingencies/e-inventing
(0.09)
(1.42)
(1.23)
-
131.95
61.34
Net profit as per Indian GAAP
Adjustments
Deferred tax
Provision for retirement benefit to
employees
Transfer of intellectual property rights
(net of tax)
Net income as per US GAAP
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20th Annual General Meeting
Service To Investors
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20th 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
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20th Annual General Meeting
Community Initiatives
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20th 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 societyat-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 Computers@ classrooms initiative launched
in January 1999
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20th Annual General Meeting
Our Efforts Were Well Recognized
© 2001 Infosys All rights reserved
20th 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 1999-2000

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
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20th Annual General Meeting
Thank you
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