Investor Presentation October 15, 2014 Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, 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, fluctuations in foreign exchange rates, 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, fixedtime 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 or expiration 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, 2014 and on Form 6-K for the quarter ended June 30, 2014. 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. In addition, please note that the date of this presentation is mentioned at the beginning of the presentation, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. 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 unless it is required by law. 2 Highlights • An overview • Next Generation Business model • Market opportunities • Competitive situation • Strategy and approach to market • Investments • Financials • Challenges 3 An overview LTM Q2 FY 15 Revenues / 5-year CAGR $8.53 billion /13.3% LTM Q2 FY 15 Net Income / 5-year CAGR $1.94 billion / 8.7% Employees (Sep-14) 165,411 from 105 nationalities Market cap (Sep-14)* $34.7 billion Global Presence 73 Sales Offices 93 Global Development Centers Operating in 40 countries Business Model To provide integrated end-to-end outsourcing and consulting services, products and platforms * As of last day of the quarter based on closing NYSE price 4 Next Generation Business Model • New Engagement Models 2013 2008 2001 1996 1981 People | Organization | Infrastructure | Process | Quality Infosys Global Delivery Model 5 Non-ADM services as % of revenue CAGR – 15.0% 60.0 54.5 56.1 57.0 FY 11 FY 12 59.2 61.3 61.8 FY 14 LTM Q2 FY 15 50.0 40.0 30.0 20.0 10.0 0.0 FY 10 FY 13 33% revenues from Consulting and System integration in FY14 as against 25% in FY 09 6 Resulting in New Clients and Increasing Revenue Per Client Large, Growing Client Relationships 550 13 500 30 450 Increasing revenue per client ($ mn) 10.5 10.1 107 400 10 5 16 350 9.7 9.5 9.3 9.3 9.3 FY 13* FY 14 LTM Q2 FY 15 300 ` 75 250 9 200 376 150 234 100 330 526 8.4 8.5 8 50 7.5 0 LTM Q2 FY 10 1-10 mn 10-50 mn FY 10 LTM Q2 FY 15 50-100 mn FY 11 FY 12 100 mn+ Execution excellence resulted in high share of repeat business (98.1% in LTM Q2 FY 15) * revenue per client has decreased due to strong client additions 7 Market Opportunities Global Mega Trends Infosys – Transformation Partner • Asia – New “center of gravity” for the world • Differentiated access to highly educated, cost-competitive human capital • “Geography becomes History” with reduced telecommunication costs • Technology – the supreme enabler • Leading the Next-Generation Business Model and investing in innovations and business solutions • Redefining scalability with modular global infrastructure 8 Offshore Outsourcing is a Global Mega Trend Outsourcing Benefits Indian IT – BPO Market is Increasing • Convert fixed costs to variable • Reduce TCO • Improve competitiveness • Indian IT- BPO sector exports to grow 13-15% in FY 15 and consequently reach $ 97-99 million • Improve time-to-market • Enhance ROI Offshore Benefits • Deliver high quality at great value • Highly scalable with a large resource pool available • Proven track record ~$60bn ~$31bn Source: NASSCOM 9 Competitive Situation High Quality Delivery and Offerings • Established track record of exceptional quality • Expanded offerings that encompass the entire value chain Abundant Skilled Resources • 4.7 million graduates and post graduates pool 1 • Over 3,000 engineering colleges with a capacity to produce approximately 1 million engineering graduates annually Established Industry • IT-BPM continues to remain the highest impact sector for India amongst all service industries in terms of contribution to GDP and exports • IT-BPO domestic market to grow 9-12%; industry to add revenues of $ 110113 billion in FY 15 • Offshore ‘home’ for virtually all the leading technology companies Strong Government Support • “Tax Holiday” schemes • Supportive Government policy environment India – Uniquely positioned Source: 1. NASSCOM 2014 Performance Review (includes engineering services and software products) Significant Benefits • Substantial cost savings associated with moving offshore • Large intangible benefits such as reduced time to market 10 Competitive Situation Need to • Replace resources • Overcome “offshore-is-cost-center” mindset • Combat revenue cannibalization GDM + Consulting • Provide seamless sales and delivery Client Visibility • Reduce SG&A Large Onsite Firms GDM Next Generation Business Model (~1990s) (~1980s) Non-GDM GDM Client ROI 11 • Consulting + solution mindset • Continue to strengthen brand • Strengthen Board-level relationships • Thought Leadership Strategy and approach to market Strategy • Have end-to-end service capability, deep vertical penetration, broad geographical footprint • Increase revenue productivity and build long-term scalability by creating industry specific solutions, platforms, IP etc. • To have superior revenue growth and margins relative to the industry Approach to market • ‘One Infy’ • Cross-selling of services • Vertical focus to create industry specific competencies • Investing in the business 12 Talent Management : Hiring the Best • Industry wide preferred employer – Recognized as one of the ‘Achievers 50 Most Engaged Workplaces™’ in The United States in 2012 – The most preferred company to work for in India by Business Today magazine in 2010 • Able to simultaneously evaluate 10,000+ candidates across 7 cities in India • Global hiring – US, UK, China and Eastern Europe – Supplementing with experienced local hires • Tapping non-traditional labor pool – Employing non-engineers for infrastructure management, testing and BPO – Proactive assistance provided to India’s educational system to produce engineers with high quality software skills 13 Developing and Retaining the Best • Learning support to employees towards development and career progression, which improves long-term retention and solidifies culture Advanced Training Leadership Training Leadership Development Domain Training • Currently able to train 14,000 entry-level recruits at the Mysore campus simultaneously Client-facing Training Managerial Training Role-Based Development Foundation Training Induction 14 On-the-job Training Quality Training Role-Based Development Soft Skills Training Investing in front-end, services and industries 2012 2013 2014 366 373 431 446 1,132 1,263 1,285 1,740 Infrastructure Management Services 420 510 586 639 Life Sciences and Healthcare 385 437 561 563 Sales & Marketing expenses ($ mn) Sales & Marketing employees LTM Q2 FY15 Revenues from ($ mn) 15 Robust, Flexible, Modular Global Infrastructure • 93 Global Development Centers (“GDC”)* • 37.7 million sq. feet of total area to house 1,84,005 employees; 5.4 million sq. feet under construction to house 22,196 employees • Ability to rapidly scale new engagements • Flexibility to distribute engagements and capacity across centers worldwide • Disaster recovery / business continuity capabilities *As of March 31, 2014 16 Building World Class Systems and Processes Quality Par Excellence • Benchmarked to Global Standards • Deployment of improvement techniques Note: Award-winning Knowledge Technology-driven Scalable Management Processes Business Processes • PRIDE: Infosys process repository • 2008 Asian Most Admired Knowledge Enterprise (MAKE) award EFQM – European Foundation for Quality Management CMMI – Capability Maturity Model PRIDE – Process Repository at Infosys for Driving Excellence 17 Superior Revenue Growth Revenues $2,500 2,201 Quaterly Revenue (US $ million) $2,000 $1,500 1,154 $1,000 $500 $0 Q2 Q3 FY10 Q4 Q1 Q2 Q3 FY11 Q4 Q1 Q2 Q3 FY12 18 Q4 Q1 Q2 Q3 FY13 Q4 Q1 Q2 Q3 FY14 Q4 Q1 Q2 FY15 Sustained, Industry-leading Profitability $600 35.0% Flexible cost structure helps Infosys deliver industry-leading margins 511 30.0% 30.3% 26.1% 25.0% $400 317 20.0% $300 15.0% $200 10.0% $100 5.0% $0 0.0% Q2 Q3 FY10 Q4 Q1 Q2 Q3 FY11 Q4 Q1 Q2 Q3 Q4 Q1 FY12 Q2 Q3 FY13 (*) Q2 FY 14, include a provision of $ 35 million towards visa related matters. 19 Q4 Q1 Q2* Q3 FY14 Q4 Q1 Q2 FY15 Operating Income in % Quarterly Net Income (US $ million) $500 Strong and Liquid Balance Sheet • Highly liquid (Liquid assets including cash and cash equivalents, available-forsale financial assets, certificates of deposits and government bonds stand at $5,444 mn)* • Zero debt • High quality receivables (95% of receivables is either not due or due for less than 60 days)* • ROCE of 35.9%, ROIC of 61.3% for LTM Q2 FY 15 • Dividends up to 40% of annual post-tax profits *As of September 30, 2014 20 Challenges • Economic uncertainty • Regulatory changes • Currency Volatility • Resource availability • Ability to expand addressable market • Wage inflation 21 Thank You © 2013 Infosys Limited, Bangalore, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the prior permission of Infosys Limited and/ or any named intellectual property rights holders under this document.