KPIT Cummins

Infosystems Limited

Analyst Meet

May 2, 2006

2005 KPIT Cummins Infosystems Limited

We value our relationship

Safe Harbour
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Certain statements in this presentation 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 contracts, client concentration,
restrictions on immigration, our ability to manage our international marketing & sales operations,
reduced demand for technology in our key focus areas, disruptions in telecommunication networks,
liability for damages on our service contracts & product warranty, the success of the companies in
which the Company has made strategic investments, withdrawal of governmental fiscal incentives,
political instability, legal restrictions on acquiring companies outside India, and unauthorized use of
our intellectual property and general economic conditions affecting our industry. The Company may,
from time to time, make additional written and oral forward-looking statements and 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.

May 2, 2006

Page 2

The Pyramid model

The STAR model

100 Million USD

game plan

ALIGNED us for a 100 Million roadmap

By focusing on a few customers and 2

verticals

The PYRAMID model

20-40 M

Will align us for next level of growth

By focusing on Leadership in

STAR Customers

10-20 M

5-10 M

1-5 M
0-1 M

May 2, 2006

Existing
Potential STAR +
New Potential STAR

A Few Practices & A Few Geographies

But NOT losing focus on STAR Customers

and focus verticals
*Figures in USD

NO change in basic strategy

Page 3

Pyramid = Leadership in select areas

May 2, 2006

Leadership
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Practice Area (e.g. Automotive, Semiconductor, Business Intelligence)

Geography (e.g. Japan, France, Germany)

Leadership Parameters
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No. of people / Size of Practice relative to competition

Revenue

Share of Leaders outsourcing wallet

Association with Global Leaders in a particular practice area or geography

Pyramid = Growth through Leadership

Page 4

The year gone by and the year ahead

The Year Gone By

The Year Ahead

M&As & 1 JV : New Practices/ New Markets

Added

a STAR customer (# of STAR: 9 to 10)

Active

Customers: Organic (# 24 grew to 39)

Strengthen

Account Management

20-40 M
10-20 M
5-10 M

Focus

on Go-To-Market Offerings/
Higher Margin Services

1-5M
0-1 M
Potential STAR customers added to the bottom of pyramid
through acquisitions ( Total Customers-STAR + Potential STAR= 57)

Use

Pyramid model for New

Customer acquisition

Many

Other Focus Areas:

Org

Added

Higher Margin Services (e.g. BI)

Structure Alignment- (LOB)

Post

Merger Integration

Strengthen

May 2, 2006

Presence in new markets

Last year created the foundation for growth; We will build on it through the pyramid model
Page 5

Operations Summary
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Employee no cross 2000+ mark 641 added 19 % Women, a few PhDs, under 10 of
Foreign origin

Attrition stabilized at lower level

Reduction in overall recruitment costs (per person basis) by 12%

Strong offshore growth : from 32% in FY05 to 39% in FY06 & Contribution up by 1.2%

Higher price realisation (offshore) of about 10% for new engagements especially in last
6 months

Utilisation dropped by 4% over last year (about 300 freshers added in 05/06)

Japan revenues doubled

Overall improvement in Customer satisfaction scores: 12% improvement

Employee Satisfaction @ 76% Agree and Strongly agree. Good iRefer: @26%

Large growth in Cummins @ 66% & Other customers grew by 30%

BS7799 Certification, Re-assessed for ISO certification and Completed audit for CMMI

Receivables gone up by 16 days

Six Sigma 10 projects kicked off last year. Estimated savings @ USD 900k(Cash + cost
avoidance).

May 2, 2006

Page 6

Action Items for FY07

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More offerings BI, Auto, ERP, Tech support and KPO.

Increased market reach- France, Germany

Add about 700 engineers, Improve DNA

Actions on Retention measures to continue- Changed compensation structure,

appraisal process and Establish university connect

Customer Satisfaction and Employee Satisfaction

Focus on :- utilisation (Fresher), rate realisation, productivity thru Six Sigma, Off shore
mix

Establish Development & Delivery centre @ Poland

Key Process Initiatives to Focus on:- Account Management, Technology Organisation

establishment, Learning Organisation (Vocation, e-learning) People pyramid, M&A
integration and Six Sigma

May 2, 2006

Drive Productivity

Page 7

Overview of some of the leading Business Units

Manufacturing

Auto Electronics

KPIT Global Business Solutions Limited

May 2, 2006

Page 8

Overview of Manufacturing Vertical

SERVICES
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From strategic consulting to 24x7 support

IT Strategy, PLM and Supply chain
consulting, ERP Audits, SOx Consulting
ERP Services : SAP, Oracle Apps, Movex,
Mapics
ADM Services in Portals, BI, Groupware
Typical offshoring is over 70%

CUSTOMER PROFILE
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Cummins Largest independent DE Mfger,

both a strategic investor & customer
Large FMCG company from Europe
Hi-Tech Computer company from USA
Electrical solutions company from France
Dairy solutions company from Sweden
Large retailer out of Denmark

May 2, 2006

DELIVERY MODEL
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Over 1000 person team consisting of

manufacturing domain consultants as well
as technologists working closely with the
customer teams
Challenges :
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Local Support in all the geographies of

interest to customers
Knowledge, People & Tech. Leadership

INDUSTRY TRENDS
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Globalization, Mass Customization,

Adaptive Flexible Responsive Orgs
Continuously enriching our solutions
capability and geographical reach
USP: Deep understanding of the domain
and the true partnership approach

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Overview of the Auto Electronics

SERVICES
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Development & Maintenance,

Reverse engineering / porting,
Independent V&V
Software Products NOS components
Integration services,
System services
95% services offered from offshore location

DELIVERY MODEL
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CUSTOMER PROFILE
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Top 10 OEMS in the world

Tier1 vendors in Europe
Top 10 tier 1 vendors in USA and Japan
Most of the customer have a turn over of
more than USD 1 billion

INDUSTRY TRENDS
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May 2, 2006

Experienced engineers / managers with

good knowledge in the auto sector
Best quality Certifications CMM level 5,
SPICE Level 3 and SIL 2
Laboratory with specialized equipments
and s/w
Sales/marketing offices strategically
located
Challenges getting people of right skills
to move to higher value offerings
Industry in Transition mode
Standardization initiatives e.g. AUTOSAR,
JASPAR becoming popular
Cost reduction pressures & non availability
of engineers => work moving to India
Supply chain hierarchy is breaking down
Competitors global vendors (products)
and major Indian players (services)
USP Only Indian company providing these
services over last 10+ years
Page 10

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Overview of KPIT Cummins Global Business Solutions (GBS)

Knowledge
Based

KPIT GBS
Offerings

Risk Management &

Compliance Services.
Business Intelligence &
Data Analytics.
Business Process
Transformation Services.

Complexity

Technology
Based
Security Operation
Center.
Network Operation
Center.
Technology Helpdesk.

Skills & Rules

Based
Finance & Accounting &
Related Services.
Human Resource Managed
Services.
Transactions Processing
Services in Mortgage &
Insurance.

f
Of

ain
h
eC
u
l
Va
s
ng
er i

Offerings by
most BPO Players
Time

May 2, 2006

Focus on Non-voice high - end services

11

May 3, 2006
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Overview of KPIT Cummins Global Business Solutions (GBS)

SERVICES
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Risk Management & Compliance

Business Intelligence & Data Analytics
Business Process Re-engineering
Finance & Accounting Service
Human Resource Management Services
Technical Helpdesk & Support (L0 to L3)
Security Operating Center & Network
Operating Center.

CUSTOMER PROFILE
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World's leading BI software company

Global automotive engines manufacturer
Fortune 100 technology giant
Fortune 100 manufacturing company
An top online brokerage company
Manufacturer of widest range of generators
UK based engineering MNC
A leading IT services company based in India

May 2, 2006

DELIVERY MODEL
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SMEs in accounting, banking, finance, risk

management , audit functions & technology.
Team of qualified CPAs, CWAs, CAs, MBAs,
CISAs and BS 7799 professionals
Tested & proven Work Transfer Methodology
Robust SLA Management; World class facility
Challenges: project stabilization & ramp up;
recruit transition resources;

INDUSTRY TRENDS
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Industry to become a $60bn by 2008.

CAGR of over 50% (2004-2008)
KPIT Cummins one of 35 Rising Stars in
The Global Outsourcing 100 (source: International
Association of Outsourcing Professionals Feb, 2006)

Convergence of IT and BPO, End-to-end

services

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Finance Overview
P&L Account
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FY06
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Revenue Growth - 26%,

PAT Gwt - 16%

Balance Sheet
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Authorized Capital Increase

Debt

FY07

FY 06 Short term Rs.303 Mn

Revenue Growth - 34%-40%

FY 07 Long Term - Rs.890 Mn

PAT 50% to 60%

FY 07 Short term Rs.334 Mn.

FY 07Margin Expansion Drivers

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Offshoring - FY06 39% to FY07 46%+

Employee Pyramid

Utilization

Rate Increase

Selling & Marketing expenses

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FY06 -10.13% to FY07 10.25%

Interest, Depreciation & Tax Expenses

to increase

May 2, 2006

Capex
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FY06 Rs.397 Mn.

FY07 RS. 690 Mn.

Cash & Bank Balance

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Rs. 411 Mn in FY06

Receivables
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FY 06 Long Term Rs.556 mn

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At 86 days compared with 70 days PY

Forex Management
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Exposure covered on 12 month rolling

net basis

Page 13

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FY07 Guidance
Guidance for FY07
$ Million

Rs. Million

98 102

4,361 4,539

11.25 12.00

501 534

Revenues

34% - 40%

37% - 43%

Profits

51% - 61%

54% - 64%

Revenue
PAT
Implied growth rates

Guidance for FY07 consistent with the medium term mission of KPIT Cummins

May 2, 2006

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THANK YOU

May 2, 2006

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