3i Infotech Strategy PresentationApril 25, 2008

2 - Confidential

Certain statements in this release concerning our 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 industry including those factors which may affect our cost advantage, wage increases, 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 3i Infotech 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. 3i Infotech may, from time to time, make additional written and oral forward looking statements, including 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.

Disclaimer Disclaimer

3 - Confidential

AgendaAgenda

Overview of Strategy

Financial Results

4 - Confidential

Overview of Strategy

5 - Confidential

IT Industry StructureIT Industry Structure

IT industry is highly fragmented and there are several players operating from different parts of the worldThere are players who focus on one or 2 lines of business and operate globally as well as very small players focusing on one business line or one geographyDue to this there is no player who can be categorized as one dominating player across the globe for all services put together

6 - Confidential

IT Industry StructureIT Industry StructureSince it’s a knowledge based industry and the entry level barriers are low, several new players mushroom with niche services and solutionsAs times move ahead, these people will grow, perish or get acquiredWhen the business cycles are favorable, some grow in size and become dominant playersWith established client relationship’s and longer engagement time, business grows with more and more services offeredWhen the customer grows, business to the vendor also grows provided relationship management is handled properly

7 - Confidential

Global IT 2008 Market OutlookGlobal IT 2008 Market OutlookGlobal purchases of IT goods and services will grow by 6% in 2008 after a 12% increase in 2007Though overall IT spend growth will be 6%, Software Products and IT Services / Outsourcing is expected to increase by 8-9%Asia Pacific and the oil-exporting area of Eastern Europe, Middle East & Africa will be the main engines of growthUS economy in or near recession will be the main cause of slower 2008 growth, pulling down growth in IT purchases both in the US and with major trading partners in Europe and the Americas

8 - Confidential

Global IT 2008 Market OutlookGlobal IT 2008 Market OutlookWhile the increase in US and Western Europe is projected at 5-6%, the increase in Eastern Europe and MEA is projected at 14% and increase in the rest of Asia is projected at 18%The growth in India and China is projected at 18% and 20% respectivelyOver the years, IT spending in Asia and Eastern Europe at 33% is almost equal to Western Europe and is quickly catching up with US spendOur Company with a strong focus on the Asian and Indian market is poised to capture this growth

9 - Confidential

IT 2008 Market OutlookIT 2008 Market OutlookWestern Europe

Western and Central Europe is the second largest IT spender after the US, with $461 billion in 2008The weaker dollar in 2007 boosted dollar-denominated growth to 15%, but a slower pace of dollar weakening and slower European economic growth in 2008 will cut growth to 5%

MEARCEastern Europe, the Middle East, and Africa will see much stronger growthIT spending in this region has been growing at double-digit rates in 2006 and 2007In 2008 a growth of 14% is expected

10 - Confidential

IT 2008 Market Outlook IT 2008 Market Outlook Asia Pacific

The Asia Pacific market will grow at 14%China’s IT purchases have been growing at 30%-plus ratesWhile the Asia Pacific countries still export heavily to the US, domestic demand has been growing in China and IndiaA stagnant US economy in 2008 will slow but not derail both Asian economic growth and the growth rate for Asian IT purchases

11 - Confidential

IT 2008 Market OutlookIT 2008 Market OutlookUS

In Software, the US market still dominatesThe US market will represent 44% of the global software market in 2008, well ahead of Western and Central Europe at 28% and Asia Pacific at 19%In Software & IT Outsourcing the US market is expected to have 8% growth

12 - Confidential

IT 2008 Market OutlookIT 2008 Market Outlook

This trend vindicates our concentrating on the emerging markets

13 - Confidential

IT Industry Overview IT Industry Overview -- IndiaIndiaTime for TransformationTraditionally, Indian software companies have been providing software offshore IT services. This business model is seeing strains some of which are the following:

Due to increase in wage rates and correction in the exchange rates, the ability of local companies to arbitrage on costs is getting reduced US software companies have expanded aggressively in India and can now compete with Indian companies on priceStrain on the availability of skilled manpower as the industry has now to compete for talent with large MNCswho pay higher salaries than domestic companies Language constraints and some countries’ deep routed reservations against outsourcing

14 - Confidential

Industry OverviewIndustry OverviewThere are very few differentiators that a mid-sized company can bring to the tableTo ensure competitive advantage the time has come for software companies to create value add differentiators to secure growth and sustainable marginsRecent reports suggest that growth would be significantly higher in the emerging markets as compared to the Western markets

15 - Confidential

3i 3i InfotechInfotech Positioning Positioning 3i Infotech has over the years consciously built a business model which creates differentiators vis-à-vis competition to achieve client penetration and growth.

A balanced mix of Revenues from software products and services (1:1) Revenues spread across various geographies thereby not concentrating on any single geographyA wide range of services in IT & Transaction Services, Managed Services & e-Governance

16 - Confidential

The India StrategyThe India StrategyWith significant growth anticipated in the Transaction Services Business in India, the Company has set up :

A Hub and Spoke Model spanning across the country with cost efficient delivery capabilities and is into processing of credit cards, insurance applications, contact point verification, soft collections, cheque clearing services, reconciliations, etc. This has been illustrated with some examples :For a leading life insurance company - form origination, scanning, underwriting & policy printingForm origination, scanning for a housing finance companyData validation, cheque presentation in Maharashtra for a private sector bankData validation for a foreign bankFor a telecom company – form origination, scanning in the Southern & Eastern region

17 - Confidential

The India StrategyThe India StrategyThe Company has expanded its Chennai facility by setting up :

International Data Centre (IDC) – for hosting services for application and disaster recovery solutions Global Network and Security Operations Center (GNSOC) –providing remote IT infrastructure management services

With a strategic stake in TaxSmile, which is an Online Tax Filing Portal, the Company hopes to gain significant access to tax payers as customers for the TaxSmile PortalThe Company has also won several deals for setting up of over 12,000 kiosks across various States in India for providing Citizen Services which could be a major source of Revenue in future

All the above will provide a significant physical as well as online reach across India which can be leveraged for various B2B and B2C Services

18 - Confidential

3i 3i InfotechInfotech Today Today Revenue Run-rate of US$ 300 million, Net Margin 15% World Wide Presence- North America, Europe, Middle East, Asia Pacific, India and Africa600+ Customers in 50 countries20 software product IPRsFocused BFSI player with 75% revenue from BFSI6000+ professionals500,000+ square feet of state-of-the-art Infrastructure

Software development in Mumbai, Chennai, Bangalore and Hyderabad in India

CAGR of 61% in revenue in last four years, out of which 41% is Organic and 20% InorganicPlatform ready to take off for a major growth

19 - Confidential

Awards and RecognitionsAwards and Recognitions

One of the top 4 Indian software product companies

Winner of Frost and Sullivan Growth Strategy Leadership Award for Mid-Market Enterprise

application – 2007

Winner of Service Provider of the Year at the 5th Annual Australian Banking & Finance -

Insurance Award function – 2007

Winner of Oracle’s UK Technology Partner of the Year at the Oracle’s annual Business

Partner Award s – 2007

20 - Confidential

Awards and RecognitionsAwards and Recognitions

Winner of Best e-Gov System Integrator Award at the 4th Dataquest e-Gov Summit

– 2007

Winner of Independent Software Vendor (ISV) Award from Oracle – 2007

Oracle Corporation awarded our APAC Geography the “Most Significant Deal in

FY07” Award

Winner of “IBM Strategic Partner “ Award from IBM – 2007

21 - Confidential

Financial Performance

22 - Confidential

Highlights for FY2008Highlights for FY2008

Consolidated revenue from operations at Rs.12,235.67 million, grew by 82.4% over the previous year, out of which Organic growth is 37.9% and Inorganic growth is 44.5%

Gross Profit for FY2008 at Rs. 5,781.54 million, grew by 81.5% over the previous year

Gross Margin for FY2008 works out to 47.3% compared to 47.5% in the previous year

23 - Confidential

Highlights for FY2008Highlights for FY2008SGA expenses were at 21.6% of the revenue which was approximately the same in the previous yearEBITDA for FY2008 at Rs. 2,732.25 million, grew by 85.1% over the previous yearConsolidated PAT before minority interest for FY2008 is at Rs. 1,831.98 million as compared to Rs. 1,044.84 million in FY2007The Company is proposing an equity dividend of 15% on the expanded capital, against 20% on the pre-bonus capital in the previous year

24 - Confidential

Financial Highlights Financial Highlights –– FY2008FY2008Rs Mn FY2008 FY2007 YoY growth

Revenue 12,236 6,708 82.4%Gross Profit 5,782 3,186 81.5%EBITDA 2,732 1,476 85.1%PAT 1,832 1,045 75.3%

Margins FY2008 FY2007

Gross Margins 47.3% 47.5%EBITDA Margins 22.3% 22.0%Net Margins 14.9% 15.6%

25 - Confidential

Revenue by Segments Revenue by Segments –– FY2008 & FY2007FY2008 & FY2007

Segment wise Revenue - FY2007

ERP, 9%BPO, 9%INSURANCE,

14%

BANKING, 15%

SERVICES, 42%

CAPITAL MARKETS, 11%

ERP INSURANCE BANKING CAPITAL MARKETS SERVICES BPO

Segment wise Revenue - FY2008

CAPITAL MARKETS, 14%

BPO, 12% ERP, 8%

SERVICES, 39%

BANKING, 14%

INSURANCE, 13%

ERP INSURANCE BANKING CAPITAL MARKETS SERVICES BPO

26 - Confidential

Revenue by Geography Revenue by Geography –– FY2008 & FY2007FY2008 & FY2007Geography-wise Revenue - FY2008

SOUTH ASIA, 34%

USA, 29%

MEARC, 14%

APAC, 8%

WESTERN EUROPE, 15%

SOUTH ASIA USA MEARC APAC WESTERN EUROPE

Geography-wise Revenue - FY2007

SOUTH ASIA, 36%

USA, 28%

MEARC, 20%

APAC, 10%

WESTERN EUROPE, 6%

SOUTH ASIA USA MEARC APAC WESTERN EUROPE

27 - Confidential

Highlights for Q4 FY08Highlights for Q4 FY08Consolidated Revenue at Rs.3,520.68 million, grew by 66.9% over the corresponding quarter of the previous year

On a sequential basis, the Revenue grew by 8.9%, of which Organic revenue is 6% and Inorganic Revenue 2.9%

Gross Profit for the quarter at Rs. 1,661.63 million, grew by 68.4% over corresponding quarter of the previous year

Gross Margin during Q4 FY08 is at 47.2% compared to 46.8% in Q4 FY07 and 47.9% in Q3 FY08

28 - Confidential

Highlights for Q4 FY08Highlights for Q4 FY08SGA expenses are at 22% of the Revenue as compared to 21.6% in Q3 FY08

EBITDA for the quarter at Rs. 767.26 million, grew by 67.1% over corresponding quarter of the previous year

Consolidated PAT before minority interest for the quarter is at Rs. 502.16 million as compared to Rs. 496.14 million in Q3 FY08

29 - Confidential

Financial Highlights Financial Highlights –– Q4 FY08Q4 FY08

Margins Q4'08 Q3'08 Q4'07

Gross Margins 47.2% 47.9% 46.8%EBITDA Margins 21.8% 22.6% 21.8%Net Margins 14.3% 15.3% 15.2%

Rs Mn Q4'08 Q3'08 QoQ growth Q4'07 YoY growth

Revenue 3,521 3,234 8.9% 2,110 66.9%Gross Profit 1,662 1,550 7.2% 987 68.4%EBITDA 767 730 5.1% 459 67.1%PAT 502 496 1.2% 320 56.9%

30 - Confidential

Pending Order BookPending Order BookIn INR Mn

Products 2,778 49% 3,672 47% 3,897 45%Services 2,909 51% 4,173 53% 4,750 55%

Total 5,687 7,845 8,647

Q4'07 Q3'08 Q4'08

31 - Confidential

Client dataClient dataCustomer Concentration

No. of million dollar clients

Q4'08 Q4'07 Q3'08

ICICI Group (Top customer) 13% 14% 14%Top 5 Customers (ex. ICICI Group) 7% 21% 8%Top 10 Customers (ex. ICICI Group) 12% 29% 14%

Q4'08 Q4'07 Q3'08

> USD 1 million 48 32 40> USD 5 million 6 4 6

32 - Confidential

EPS GrowthEPS GrowthFY2008 FY2007 Growth

Basic EPS 13.40 8.99 49.1%

Diluted EPS (as per Audited Accounts) 12.65 8.69 45.6%

Diluted EPS (as per computation explained) 10.25 7.10 44.4%

33 - Confidential

EPS ComputationEPS ComputationFY2008 FY2007

A] Fully diluted EPS 10.25 7.10

B] Equity SharesOutstanding 130,535,185 112,597,478 FCCB 1 (Full year) 7,790,174 17,315,784 FCCB 2 (Full year) - 7,361,680 FCCB 3 (Full year) 11,197,874 - FCCB 4 (8 months) 16,395,978 - Total No. of Shares 165,919,212 137,274,942

34 - Confidential

Return on CapitalReturn on CapitalFY2008 FY2007

Return on Capital Employed 14.8% 13.6%

Return on Equity Capital 33.8% 29.3%

35 - Confidential

Synopsis of AcquisitionsSynopsis of AcquisitionsIn INR Mn

Consideration Paid

Revenue at the time of

AcquisitionCurrent Revenue of the Company

Acquisitions 7,489.78 5,397.86 12,235.67

(Post March 2005)

36 - Confidential

Financing StructureFinancing StructureDebt & Equity Mix

The Company continues to pursue the policy of having a healthy mix between Debt and EquityThe Company has believed that a reasonable debt on the books is needed to fund growthDebt is taken for two purposes; working capital requirements and acquisitions. Since 69% of the Company’s revenue comes from fixed price contracts, the Business is working capital intensiveThe company raises both cash credit and working capital term loans to bridge the working capital gapThe Debt to Equity ratio is as follows :

Considering Net Debt – 1.32 : 1Considering Gross Debt – 1.68 : 1

37 - Confidential

Financing StructureFinancing StructureDebt & Equity Mix

For this purpose, FCCB’s have been considered as debt, though part of the FCCBs are already in the money and the balance have a long way to go before redemptionFurther, the Company has the option to force conversion if certain price triggers are reachedTherefore, the Company feels confident that these FCCBs will get converted and not remain as debtIf these FCCBs are considered as Equity, the Debt to Equity ratio will be as follows :

Considering Net Debt – 0.23 : 1Considering Gross Debt – 0.42 : 1

38 - Confidential

Financing Structure Financing Structure –– Funding PositionFunding PositionINR Mn.

a) Current Assets Funding Debtors & Unbilled 4,988.34 Loans & Advances & other Current Assets 2,530.74

7,519.07

Funded by : Current Liabilities & Provisions 3,022.92 Bank borrowings net of cash 3,297.28

6,320.20

Balance from internal accruals 1,198.88

b) Fixed Assets & Goodwill Funding Goodwill 10,031.01 Fixed Assets 2,964.74

12,995.74

Funded by : Networth net of deferred tax asset 7,137.45 FCCBs Pending Conversion 7,057.17

14,194.62

Balance used to Fund Working Capital (1,198.88)

39 - Confidential

Business OutlookBusiness OutlookWith the thrust on transaction services and on India, the following business trends are emerging :

Revenue mix which today is at 1:1 between Products and Services will change to 1/3 each on Products, IT Services and Transaction ServicesDue to this change in the mix, the Gross Margin and Operating Margin are likely to get reducedHowever, with a significant increase in Revenue and Profits, there will be a good EPS growthConsidering these, the Outlook for the year 2008-09 is as follows :

Revenues of around Rs.1,700 crore (about 40% growth)Fully diluted EPS of between Rs.13.0 – Rs.13.5 (about 30% growth)

Further, while working out the growth in profit, significant investments in kiosks, Taxsmile and other new initiatives which may not give significant results in FY2008-09, have been taken into account

40 - Confidential

Major Wins

41 - Confidential

Major WinsMajor WinsGlobally, the Company has won several million dollar deals

for all of its offerings, some of which are as follows :Banking

One of the oldest and 3rd largest Bank in Singapore with assets exceeding USD 125 billion is deploying our Kastle Lending Solution 3 leading Banks in South Asia have gone in for our AML product & 3 for the Kastle suite, apart from other wins J&B Software secured new business wins for providing enterprise wide payment processing solution to a major media and television company and check and accounts payable transaction processing solution to a transportation company

42 - Confidential

Major WinsMajor WinsInsurance

Premia won an order for USD 1.8 million to a Company specializing in internet based alternate delivery channels for distribution of its wide range of Insurance ProductsA Washington DC based leading provider of insurance for expatriates, international schools, multinational businesses & relief organizations has selected our Premia product A Utah based Managing General Underwriter company focused on providing specialized insurance solutions for physicians and employer groups has also selected our Premia product

43 - Confidential

Major WinsMajor WinsMutual Fund

In one of the biggest deals in the APAC region, our Mutual Fund products won an order for USD 0.75 millionOne of the oldest and most prestigious investment banks in Kenya has has selected out MFUND suite solution integrated with iBOSS and Orion for their brokerage, investment banking, portfolio management and back office operationsA leading Financial Services company has acquired Rhyme’s product on a service model for a 5 year period

44 - Confidential

Major WinsMajor WinsCapital Markets

Our Capital Market solution iBOSS won an order with the securities arm of a leading Vietnam group for USD 1.1 million

ServicesThe Company has won significant deals in the South Asia region, some of which are as follows :

State Data Centre (SDC) Consultancy to 6 statesBusiness Intelligence implementation in a large multinational IT CompanyA large transaction services deal covering areas like account origination & contact point verification

45 - Confidential

Thank YouThank You