Transcript Slide 1

Infosys Europe
B. G. Srinivas
Senior Vice President
© Infosys Technologies Limited 2005-06
Safe harbor
Certain statements in this presentation 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, 2006 and the Quarterly Reports on Form 6- K for the fiscal quarters ended
June 30, 2005, September 30, 2005 and December 31, 2005. 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 10, 2006
© Infosys Technologies Limited 2005-06
Agenda
» Market perspective
» Infosys in Europe
» Business results
» Client testimonials
June 10, 2006
© Infosys Technologies Limited 2005-06
European market perspective
» Fragmented market
» Distinct streams of customer behavior across Europe
» High cultural and linguistic diversity
» Regulated market
» European Union and country-level regulations
» Global Delivery Model adoption is lower
» Demographic profile
» Ageing work force
» Decline in computer science graduates in Western Europe
» High adoption of telecom technology
» Customer uniqueness
» More detailed and demanding on service delivery
» IT groups focusing more on business value and Return on
Investment
June 10, 2006
© Infosys Technologies Limited 2005-06
Market statistics
Projected IT Services Spending (Bn Euros)
137
140
120
121
109
» Infrastructure consolidation
continues to be a focus area
115
69.1
100
80
129
56.3
59.2
62.3
65.6
20
25.9
26.3
24.9
25.4
11.9
13.2
14.7
16.6
10.9
17.1
18.5
20.2
22.3
24.8
24.3
Project Based
Services
Infrastructure
Related Outsourcing
60
40
BPO
Application
Outsourcing
0
2006
2007
2008
» Improving IT efficiency continues to
be a priority
2009
2010
» Preference towards ERP packages
vis-a-vis custom built applications
» Increasing interest in Integrated
BPO+IT solutions
» Regulatory changes adding to IT
budgets
» Outsourcing contracts getting shorter
*European IT Services Spending Forecast: 2006 To 2010,Forrester Research Inc., May 2006
June 10, 2006
© Infosys Technologies Limited 2005-06
Market statistics
Projected IT Services Spend by Regions -2006
4%
24%
27%
Financial Serv.
ASG
B&N
FSI
UK&IR
EE
28%
Projected IT Services Spend by Verticals -2006
17%
11%
23%
8%
Retail
5%
19%
Manufacturing
14%
14%
6%
Telecom
Public Sector
Utilities
Services
Others
ASG – Austria, Switzerland & Germany
B&N – Benelux & Nordics
FSI – France, Spain & Italy
EE – Eastern Europe
UK&IR – UK & Ireland
* European IT Services Spending Forecast: 2006 To 2010,
Forrester Research Inc., May 2006
June 10, 2006
* IT Services Europe Preliminary Market Share —
Database, Gartner Inc., Sep 2005
© Infosys Technologies Limited 2005-06
Infosys’ Europe strategy
» Country-specific focus
» Matrix structure – Market and vertical expertise
Sweden
» Significant investments and expansion of
offices in Europe
Norway
» Near shore centers in UK and Czech Republic
» Europe-specific capability development
» Large program management capability
UK
» Solutions and alliances
Denmark
Ireland
Germany
The
Netherlands
Belgium
CANARY WHARF, 2005-06
France
1996
1999
2000
2001
2004
2006
Czech Republic
Switzerland
Italy
Spain
June 10, 2006
© Infosys Technologies Limited 2005-06
Infosys in Europe
*ASG – Austria, Switzerland & Germany
B&N – Benelux & Nordics
FSI – France, Spain & Italy
EE – Eastern Europe
UK&IR – UK & Ireland
» Financial Services, Telecom, Energy & Utilities and Pharma and Manufacturing continue
to be the growth sectors
» UK, Switzerland, Benelux & Nordics drive growth
» Core banking sector opening up for Finacle
» Consulting capabilities in demand
» Country-specific and local business knowledge key differentiator
» Well-rounded service penetration – new services account for 43% of European business
June 10, 2006
© Infosys Technologies Limited 2005-06
Business results
Revenue ($ m)
600
528
500
400
355
300
204
200
133
100
0
FY03
FY04
FY05
FY06
» 26 new clients added in the last year
» Fastest growing geography for Infosys
» Eight $20+ million clients
» Accounts for 24.5% of Infosys revenues
» Six > $20 million deals in last year
» 75 active clients
» Increased penetration in various countries.
Inroads into Ireland, Spain and Norway
» 10,000+ people servicing the clients
» Europe accounts for 40% of Progeon revenue
» Alliances and solutions have assisted in multiple
new wins
June 10, 2006
© Infosys Technologies Limited 2005-06
Client testimonials
» One-stop-shop and service breadth
» Executing across the board engagement for a leading
investment bank
» High-end research and development
» Design and development for Airbus A380
» R&D centre with ALSTOM
» Capability of managing systems core to the client services
» Revamping core private banking service platform for B-Source
» Assisting customers in business transformation
» Enabled BT to rapidly launch high speed broadband in UK market
» Helped an automotive major in transforming auto
finance capabilities
» Global Siebel solution rollout across 100+ countries for a large
logistics company
June 10, 2006
© Infosys Technologies Limited 2005-06
“Out of intense complexities,
intense simplicities emerge.”
- Winston Churchill
June 10, 2006
© Infosys Technologies Limited 2005-06
Thank you
www.infosys.com