Finacle IBU

August 12, 2005 © Infosys Technologies Limited 2005 - 06

© Infosys Technologies Limited 2005 - 06

Finacle

Girish VaidyaSenior Vice President - Finacle


Safe Harbor

Certain statements made in this Analyst Meet 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 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, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, 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 and regional conflicts, 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 quarterly report on Form 6-K for the quarter ended June 30, 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 statements that may be made from time to time by or on behalf of the company.


Key Metrics

Q1 FY05 Q1 FY06

Revenue ($ m) 8.1 22.2

Export % 36% 53%

Employees 685 1,328

Geographic Footprint – No. of countries

37 47

Revenue - $ m

47.6

29.5

15

25

3545

55

65

FY04 FY05

Revenue - $ m61.7

29.2

15253545556575

LTM J une 04 LTM J une 05

Growth 61% Growth 111%


Market Scenario

Cost of legacy, need for agility & regulatory compliance are driving changeGlobal Tier 1 & Tier 2 banks joining the replacement wave

EMEA & APAC lead the pack in core banking replacementsAverage deal sizes for a Tier 1 bank – $100M+

Open systems making their presence felt in the mainframe/legacy worldScattered vendor space, no clear global leaders

Source : Tower Group

Core banking replacement wave catching up globally


Key Challenges

Competitive scenarioOvercrowded marketplace, a fragmented market Very competitive market with some players having an early start vis-à-vis mindshare and market penetration Consolidation in the industry has begun – Oracle & i-Flex, a case in point

There is space for large players - It’s a growing market – Core banking replacement alone is going to be $ 34 bn market by 2010Indian vendors with size and scale continue to have an edge - Like in services, challengers of yesterday are emerging leaders of today

Customer expectations (specially Tier 1 & Tier 2 banks in mature markets)Traditionally used to a ‘build’ approachSpaghetti of systems – can the onion be unraveled Perceived high risk of replacementPreference for a SI-led approach Heavily influenced by consultants and analysts

India factorPrimarily established as a services hubIndian products not established in the global arena


Finacle Advantage

Differentiated Value PropositionInfosys edge – End-to-end capability,predictability, delivery depth and aconfigurable solution stackConverting adversity into opportunity

India factor has a silver liningUnique value proposition

Maximizing opportunity – agility, growth and process efficiencyMinimizing Risk – product & technology, vendor, implementation & support

Focus and investments in the right hot buttonsScalability – most scalable core banking solution (>40Mn TPH)

Flexibility beyond parameters Opening up for services-based integrationBPM integrationFront end and back end separationWeb-based thin client


Finacle Advantage

Impeccable delivery track record

100% implementation success rate

Leveraging the traditional Infosys strengths – Enterprise Solutions & Finacle partnership, joint proposition in key markets

Sales and Marketing

Strategic segmentation – focus on Tier 1 and large regional banks

Leveraging alliances and partners to extend reach, delivery capability & provide comfort – successes with HP, Sun and Oracle

Focus on achieving brand leadership – a comprehensive relationship marketing program has been rolled out


Finacle @ICICI

A case study


Market Dynamics In The Early 90’s

CustomersSegments

Competition

Rural and urban consumers

&SME’s

Growing Middle Class&

Emerging Corporates

High net worth individuals&

Large and establishedcorporate houses

Public sector banks Foreign banks

Constraints• Largely manual processes• Little use of technology• Low customer service focus

• Handful of banks• Low penetration• Customer-centric focus for

high-end customers only

Quality customer service through cost effective operationsOpportunity spotted by ICICI


Technology – The Means To This End

Deployment of Finacle core banking (including retail & corporate banking & branch solution), consumer e-banking, corporate e-banking, mobile and CRM solution Integration of Finacle with multiple applications to provide seamless straight-through-processing of transactionsCreation of a central/ regional processing unit to handle growth in back office businessUse of the branch network as aggressive customer acquisition unitsUse of powerful CRM features to improve customer centricity and focus on cross selling

“Our objective of creating a universal bank providing end-to-end financial services clearly required solutions which were based on new generation technology, offered end-to-end

functionality and were highly flexible and scalable. Finacle offered all this and much more.”

- Ms. Chanda Kochhar, Executive Director, ICICI Bank


The Results

Efficiency improvement Clear choice on avoiding legacy traps – no mainframes

Lower TCO – 15-20% of mainframe based systems Back-office operational efficiency

Customer-centric banking – centralized operations, account opening and cheque processingLeveraging capabilities of multi-channel delivery

First to launch Internet banking in IndiaCost-efficient operations by shifting routine transaction from branches to other channels

“Finacle has enabled ICICI Bank Ltd. to achieve competitive advantage by enabling

rapid roll out of new products, faster customer service and reduced time to market...”

- Mr. P.K. Vohra, General Manager and Head Retail Technology Group, ICICI Bank


The Results – Leveraging Channels and Volume Growth

Share of Transactions Volume Growth

Branches 25%94%

ATM's 43%3%

Internet and Mobile 21%2%

Call Centers 11%1%

ChannelsShare of

TransactionsMarch 2004

Share of Transactions

March 2000


Accolades

‘Best Multi-Channel Strategy 2003’ award by The Banker Magazine, U.K.

‘Best consumer and corporate / institutional Internet bank in India’ by Global Finance, 2004

Rated the ‘Best Retail Bank in India’ by the Asian Banker Journal, Singapore, 2004

Rated the 2nd Best Retail Bank in Asia by the Asian Banker, 2005


Thank You

www.infosys.com

Documents

Finacle IBU