Infosys Limited · NSE:INFY
Infosys — Infosys Technologies — Q1 FY2007 Earnings Presentation
28 slides from Infosys's earnings presentation, Jul 18, 2006
Slide 1: Nandan M. Nilekani and S. Gopalakrishnan
Nandan M. Nilekani Chief Executive Officer, President and Managing Director © | colebeating S. Gopalakrishnan al a Chief Operating Officer and Deputy Managing Director
Slide 2: Safe Harbour
Safe Harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of
Slide 3: Infosys agenda
Infosys > Financial Performance > Operational Performance >Client Acquisition & Expansion of Services »Human Resources > Capex and Infrastructure >» Changes to Board of Directors > Outlook > Summary
Slide 4: Financial Performance
Financial [Performance Infosys | 25"
Slide 5: Q1 FY07 highlights
Q1 FY 07 Indian GAAP Y-O-Y Growth Income 45.6% PAT from ord. Activities 49.2% US GAAP Y-O-Y Growth Revenues 38.7% Net income 42.6% New clients 38 Repeat business 97.0% Headcount Gross addition 8,097 Net addition 5,694 Period end headcount 58,409 Q4 FY 06 32.1% 31.2% 30.3% 19.7% 38 92.1% 5,170 3,293
Slide 6: Income statement (Rs. crore)
(Rs. crore) FY2007 FY2006 FY 2006 % growth over Qi Q4 Qt Q4 06 Q1 06 Income 3,015 2,624 2,071 14.9 45.6 S/w development expenses 1,666 1,422 1,104 17.2 50.9 Gross profit 1,349 1,202 967 12.2 39.5 S,G&A expenses 460 369 303 24.7 51.8 Operating profit 889 833, 664 6.7 33.9 Depreciation 106 144 80 -26.
Slide 7: Balance sheet (Rs. crore)
(Rs. crore) June 30, 2006 % June 30, 2005 % LIABILITIES Shareholders’ funds 7,843 100 5,906 99 Minority interest 8 0 44 1 Total liabilities 7,851 100 5,950 100 ASSETS Fixed assets 2,724 35 1,746 29 Investments 0 le) 2 0 Deferred tax assets 73 1 48 1 Current assets Cash & equivalents* 3,434 44 3,265
Slide 8: Operational Performance
i Dperatinttl = aireriontalive Infosys |25*
Slide 9: Revenue by geography
% Q1 2007 North America 64.0 Europe 26.2 India 1.4 Rest of the world 8.4 Total 100.0 Q4 2006 65.0 25.5 1.8 7.7 100.0 Q1 2006 63.6 23.9 2.4 10.1 100.0
Slide 10: Utilization rates
100.0% 76.1% 77.0% 71.1% 69.7% 0.0% Including training Excluding training = Q1 2007 71.1% 76.1% m Q4 2006 69.7% 77.0% = Q1 2007 mQ4 2006
Slide 11: Revenue by contract type
% Q1 2007 Q4 2006 Q1 2006 Fixed Price 26.9 27.0 28.6 Time & Materials 73.1 73.0 71.4 Total 100.0 100.0 100.0
Slide 12: Onsite and offshore revenue mix
% Q1 2007 Q4 2006 Q1 2006 Onsite 50.5 49.3 47.9 Offshore 49.5 50.7 52.1 Total 100.0 100.0 100.0
Slide 13: Client contribution to revenues
Q1 2007 Client contribution to revenues(%) Top Client 5.8 Top 5 clients 19.5 Top 10 clients 31.7 No. of clients* Million dollar 221 5 million+ 94 10 million+ 56 20 million+ 28 30 million+ 19 40 million+ 15 50 million+ 11 70 million+ 3 90 million+ 2 100 million+ 2 Clients accounting for >5% of revenu
Slide 14: Client Acquisition & Expansion of Services
mRDE Client = | Acquigitan Me Expansion of | Services Infosys |25*
Slide 15: Client acquisitions during the quarter
> Client acquisitions during the quarter were 38 > Infosys is building an application for a home improvement and building products conglomerate to enable Sarbanes-Oxley compliance » Infosys is re-engineering the Electronic Data Interchange (EDI) platform for a leading manufacturer to improve operati
Slide 16: Expansion of services with existing clients
> A leading hi-tech distributor has lowered its IT support costs by adopting an Infosys shared-services model to provide Oracle ERP support for its multiple operating subsidiaries > Infosys is working with a large specialty retailer in the US to develop a merchandise planning application that will p
Slide 17: Banking Products: Finacle
Banking Produis: Finacle®, the universal banking solution from Infosys, consolidated its position as a preferred choice for large global banks A large Indian bank is deploying Finacle® core banking solution across 600 branches, an initiative focused on achieving significant cost advantage United Ban
Slide 18: Patents and SETLabs R&D
> During the quarter, Infosys filed 1 patent application at the United States Patent and Trademark Office (USPTO) and 8 patent applications at the patent office in India for process innovation in IT services > As of June 30, 2006, Infosys had filed 44 patent applications in India and the US > Infosy
Slide 19: Human Resources
0 Human -| Resources = Infosys |25*
Slide 20: Employee strength
Q1 2007 Q4 2006 Total employee strength 58,409 52,715 Software professionals 54,606 49,495 Gross addition 8,097 5,170 Laterals 2,140 1,620 Net addition 5,694 3,293
Slide 21: Capex and Infrastructure
“apex a if oh frastructure Infosys |25*
Slide 22: Capex and infrastructure
Infosys » Capital expenditure of Rs. 193 crore was incurred during the quarter > As on June 30, 2006, the company had 1,00,32,611* sq. ft of space capable of accommodating 48,656 employees and 46,70,130 sq. ft under completion capable of accommodating 16,250 employees * Excluding subsidiaries
Slide 23: Changes to Board of Directors
AnD henge ‘| Board of = Direotare Infosys |25*
Slide 24: Board and management changes
> Mr. N. R. Narayana Murthy, Chairman and Chief Mentor, turns 60 on August 20, 2006. As per the service rules of the company, he will retire from the services of the company on that date. The Board resolved to appoint Mr. Murthy as an Additional Director of the company with effect from August 21, 20
Slide 25: Outlook
Slide 26: Outlook for Q2 and FY2007
» Quarter ending September 30, 2006* > Income is expected to be between Rs. 3,257 crore and Rs. 3,280 crore; YOY growth of 42.0% - 43.0% > Earnings per share** are expected to be between Rs. 29.47 and Rs. 29.78; YOY growth of 32.4% - 33.8% » Fiscal year ending March 31, 2007* > Income is expected to
Slide 27: Summary
» Witnessed strong growth during the quarter > During the quarter, revenues from two of our clients crossed $ 100 million > Our efforts in building the brand, developing the client base and expanding strategic accounts have fueled our robust organic model » We have the required scale, execution capa
Slide 28: Slide 28
Infosys Technologies — Q1 FY2007 Earnings Presentation on 6ix