Satyam – A Corporate Overview

Brief Profile

Established in 1987, 14, 000+ professionals, in 45 countries Provides Value-added end-to-end IT Solutions Over 325 Clients, Include 6 of Fortune Global10 and 101 of Fortune 500 Revenue CAGR of 47% from FY 1997 to 2003 SEI-CMM Level 5 assessed in March, 1999 Golden Peacock Award for Excellence in Corporate Governance e SCM(SM) for BPO developed with Carnegie Mellon University

Subsidiaries & Joint Ventures

Nipuna Services Ltd. – Business Process Outsourcing (BPO) Satyam Manufacturing Technologies Inc. (SMTI) JV’s with CA, Venture – Each in a specific area Satyam Computer Services (Shanghai) Company Ltd

Associate Company

Sify Ltd – Largest Private ISP in India

Vision, Values & Strategy Core Purpose

To leverage information, knowledge, and technology to enhance human endeavour

Core values

Belief in People Entrepreneurship Customer Orientation Pursuit of Excellence

Strategy

Customer Intimacy Competency Enhancement Solution orientation Globalisation Creating a strong brand World class systems and processes Business Processes Support Processes

Global Footprint

18 development centers

spread across the globe Operations in

45 countries across 6 continents

approximately

25 time zones

and across

Our Financials

16000 14000 12000 10000 8000 6000 4000 2000 0 No. of Associates Revenue $378.0

$424.0

9759 8370 $267.1

8635 5067 1275 $48.0

3582 2500 $89.9

$90.0

$156.7

1997 1998 1999 2000 2001 2002 2003 2004 FY 2004 Revenues: US$ 570 mn Associate Strength: 14,032 REVENUE DISTRIBUTION BY TECHNOLOGY

Packaged Software Implementation Engineering Design Services 26.22% 3.63% 46.59% 23.56%

600 500 400 300 200 100 0

Software Maintenance Software Design Development

REVENUE DISTRIBUTION BY INDUSTRY

Healthcare 6.12% 11.82% 13.90% 18.45% 18.27% 31.44% Manufacturing

REVENUE DISTRIBUTION BY GEOGRAPHY

Japan 1.97% ROW 10.98% Europe 13.71% 73.34%

Source: Satyam Financial Results, FY 2004

North America

1991 1992 1995 1997 1998 1999 2000 2000 2001 2002 2003

Pioneering Efforts

Pioneered delivery of offshore service (John Deere & Co.) First Indian Co. to set-up dedicated satellite link ISO 9001 – Tick IT certification First IT company to get ITAA certification Set up India’s first private ISP – SIFY Among world’s first 10 companies to get SEI-CMM Level 5 assessment First Indian company to manage data center operations and IT Outsourcing in 2000 Adoption of Verticalization and a customer-centric organizational Structure Pioneered ITES quality framework – e SCM Among the first to be certified under BS 7799 for ISMS First & only Lead Auditor for eSCM

Key Differentiators



Flexible Relationship Model

 Right Engagement model which is customized to suit customer needs 

Rightsourcing TM – Our Global Delivery Model

 Right combination of Onsite, Offsite and Offshore 

Maturity in Handling Alliances

 Alliances with over 70 best-of-breed technology and product vendors 

Strength in Enterprise Applications

 Largest resource based for Enterprise Applications in India

Customer-centric Organization Structure

Vertical Business Units (VBU)

• Automotive • Banking& Financial Services • Healthcare, Insurance & Pharmaceuticals

Non-Hierarchical Collaborative Promotes Entrepreneurship Shared Services (SSU)

• Network and Systems • Commercial & Contracts • Corporate Services • Internal Audit • Manufacturing • Retail • Internal Information Systems & Platinum Process group (PPG) • Telecom • Corporate Communications • Infrastructure • Legal • Media & Entertainment • Semiconductor • Managed IT Services (MITS) • Travel, Transportation & Logistics • Energy & Utilities • Enterprise Applications and Business Intelligence Solutions (EABIS) • SAP Solutions • Government & Public Services • Canada • Consulting and Enterprise Solutions • Continental Europe • Hi-Tech Solutions • Middle East, Africa, India • Engineering Services • Asia Pacific

Regional Business Units (RBU)

• Microsoft Solutions Group

Horizontal Competency Units (HCU)

People and Learning

Our people make the difference

 Multinational workforce represented by 15 Nationalities  Over 80% are engineers and computer application graduates  Day 1 recruitment status in Educational institutions  Attrition rate quarter – better than Industry Average @ 3.92% per  State of the art training facility : 40 hrs –80 hrs training per associate per year  Performance Based Compensation Structure • Exclusive Learning Center • Multiple Learning  Business, Technology  Delivery, Vertical Colleges • Intellectual Symposia  Architecture Conference  Project Management Conf.

 Satyam Technology Review • Tie-up With Institutes  Engineering  Project Management  General Management

Service Offerings



Embedded Systems



VLSI Design

 

ERP (Peoplesoft, Oracle, SAP, JD Edwards) SCM (i2, Ariba, Asera, custom built)

 

CRM (Oracle, Siebel, custom built) EAI (MQ Series, Vitria, TIBCO)



B2B, B2C Application Development (Vignette, BroadVision, Exterprise, etc.)



Web Enabling and Integration via Internet (Mosaic, custom built, etc.)



M-Commerce

Extended Enterprise Solutions Hi-Tech Solutions Business Intelligence Services

Service Offerings

e-Business Solutions BPO Strategic Outsourcing Services    

Transaction Processing Financial Back Office Customer Contact HR Processes

Illustrative List

   

Data Warehousing/ Mining Security and Privacy Services Process Consulting e-R&D Services ( Drug Discovery, Clinical Trials, etc.)

   

Application Management (Development, Re engineering, Maintenance) Application/ System Integration Data Center/ Help Center Outsourcing Desktop/Network Hosting Services

High Quality Customers

 8 of the top 10 Auto majors  7 of the top 10 Electronics and Electrical Equipment Manufacturer  6 of the top 10 global Pharmaceutical companies  4 of the top 5 Networking and Other Communication Equipment Manufacturer  3 of the top 5 Healthcare companies  2 of the top 5 Securities companies

Enterprise Applications Knowledge Management eCommerce / Collaborative Commerce Data Warehousing / Business intelligence Application / Process Integration Telecom Technologies Portal / Content Management Development Platforms

Technology Alliances

The following list is a subset of overall Satyam technology landscape

Satyam RightSourcing™ Model

Pioneers in Remote Offshore development and global delivery model

Onsite Client

    

Requirements Gathering & Prioritization Statement of Work Implementation sign-off & Launch Approval Onsite testing Implementation Satyam Offsite Centers

   

Planning Prototyping Project Management Post Implementation Support

..

..

.

Offshore Development Centers

    

Project Management Technical Design Build / Programming Unit/Assembly Testing Documentation Post implementation support:



Help Desk

  

System. Admin.

Maintenance Extension / Integration

 Strengthening RightSourcing™ model and focus on delivering non traditional IT services from our offshore delivery campuses.

 Global Solution Centers in Singapore and Malaysia.

World Class Quality

March on towards 6 Sigma & PCMM

ISO 9001:2000 Certification - Jan 2001 (First company in the world by BVQI) ISO 9001 TickIT Certification Re-certification - Mar, 1995 - Sep, 1998 SEI-CMM Level 5 accreditation -Mar, 1999 Dec 2001, IMC Ramkrishna Bajaj Award for Business Excellence in Service Industry

Online QMS - May, 1994

1993 - Start of Quality Journey

Business Continuity Planning

BCP MODEL Effect Site Outage City Outage Country Outage Failure Modes

•

Infrastructure

•

Information

•

Personnel

•

Finance

•

Strategy Causes

•Fire •War •Power Outage •Explosion •Computer Virus •Strike •Hacking •Flood •Telecommunication Failure •Theft & Robbery •Shortage of Critical Items •Critical Server Breakdown •Earthquake •Prolonged Essential Public services •Temp/Permanent functional disability Of Sr.. Associates •Govt.. Policy changes

CONTINGENCY Plan BUSINESS RESUMPTION Plan BUSINESS CONTINUITY Plan RISK MITIGATION PLAN DISASTER RECOVERY Plan

ISMS - Key Benefits First IT services company to be certified under BS 7799 - ISMS

Effective Security Management

What Information Security Management Systems (ISMS) means to SATYAM

Reduced Risk & liability Quick Rebound in event of disasters Continued protection Enhanced customer confidence

Strategic Direction

Satyam’s transformation journey

ORBIT 5 : Global Player

CXO level Relationship Management Deeper Technology & Domain Competency End-to-end solutions Continuous Improvement culture 5Cs Fully Operative

ORBIT 4 : Customer Centric

Vertical Business Focus Horizontal Competencies Geographical Expansion Alliances - width and depth Knowledge Management

ORBIT 3 : Quality Focus

Software Delivery Excellence Technology Leadership

ORBIT 2 :

Pioneering of offshore model Offsite concept

ORBIT 1 : Startup Model

Onsite Staff Augmentation

……..Transforming Satyam into an aggregation of highly mature and efficient processes, consistently delivering the highest levels of operational excellence at level 5.

ORBIT 5 – Strategic Impact

Associate Delight

 Improved Associate Delight  Increased self worth / wealth / professional value  Improved work environment

Investor Delight

 Increase P/E Ratio  Increase Shareholder Value (Market-Cap)

Customer Delight Support Systems Maturity

 Increase Utilization  Reduce Costs  Enhanced Customer Delight leading to engaging Satyam in larger projects

Key Highlights

•

About 70 internal processes and 300 service offerings tuned to operate at high levels of maturity

•

ORBIT 5 to help Satyam benchmark against best practices

Real Time Leadership Center

Satyam’s Value Proposition

Best cost service commitment is just the tip of the iceberg…

 Deep competencies in several verticals and horizontals  Ability to attract, retain and motivate skilled manpower  Capability to work with large global customers and leverage partnerships  Shorter development cycles through RightSourcing TM  World class quality

Satyam as a Corporate Citizen

Alambana Trust

Alambana

Means “Support”

A fully funded charitable trust of

Satyam

created to redistribute economic and intellectual wealth to create a more equitable society

Education Healthcare Environment Disaster Recovery

Hands that Support, Hands that Strengthen.

T h a n k y o u

www.satyam.com