Satyam Computer Services Ltd

Forward looking statements
Certain statements in this presentation and subsequent discussion concerning our future growth 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 as described in our filings filed with the United States SEC.

Agenda

Brief Introduction 1H FY05 Highlights Business Environment Strategy for Growth

The profile of a Global Company
 Established in 1987, 16872 professionals, in 45 countries  Provides Value-added end-to-end IT Solutions  Over 350 Customers, Include 6 of Fortune Global10 and 109 of Fortune 500  Revenue CAGR of 61.35% from FY 1997 to 2004  SEI-CMM Level 5 assessed in March, 1999  Golden Peacock Award for Excellence in Corporate Governance  eSCM for BPO developed with Carnegie Mellon University

A Pioneer…
Pioneered delivery of offshore service (John Deere & Co.) First Indian Co. to set-up dedicated satellite link First IT company to get ITAA certification Set-up India’s first private ISP – SIFY Among world’s first 10 companies to get SEI-CMM Level 5 assessment Forming Alliances with best of breed technology vendors very early on Adoption of Verticalization and a customer-centric organizational Structure Pioneered ITES quality framework – eSCM Among the first to be certified under BS 7799 for ISMS First & only Lead Auditor for eSCM

Leading the way has been the hallmark of Satyam

…providing end-to-end services
Strategic IT Consulting Product Development Services Chip Design Embedded SystemsRobotics R&D Services

Enterprise Application Deployment and Integration Data Warehousing Business Intelligence SCM CRM Knowledge Management

Managed IT Services

Software Development & Maintenance

Business Process Outsourcing

…with a presence across the globe
20 development centers spread across the globe. Operations in 45 countries, 6 continents

…with a consistent performance
600 500
418 363 267 155 31 69 103 95 553

REVENUE DISTRIBUTION BY INDUSTRY

US$ mn

400 300 200 100 0 2000 2001

Insurance
121

Healthcare 6.12%

Banking & Financial Services 18.45% 18.27%

13.90% 11.82% Telecom

2002

2003

2004
Figs for FY 2004

31.44% Manufacturing

Others

Figs as per Indian GAAP

Revenue

Profit

REVENUE DISTRIBUTION BY TECHNOLOGY

REVENUE DISTRIBUTION BY GEOGRAPHY

Packaged Software Implementation

Engineering Design Services 3.63% 26.22% 46.59% 23.56%

Japan 1.97% ROW 10.98%

Europe 13.71%

73.34%

Software Maintenance
Figs for FY 2004

Software Design Development
Figs for FY 2004

North America

…and trusted by
 8 of the top 10 Auto majors  7 of the top 10 Electronics and Electrical Equipment Manufacturers  6 of the top 10 Pharmaceutical companies  4 of the top 5 Networking and Other Communication Equipment

Manufacturers  3 of the top 5 Healthcare companies  2 of the top 5 Securities companies

Customer Centric, Business Focused Organisation Structure
Shared Services (SSU) Vertical Business Units (VBU)
• Automotive • Banking& Financial Services • Healthcare, Insurance & Pharmaceuticals • Manufacturing • Retail • Telecom • Infrastructure • Media & Entertainment • Semiconductor • Travel, Transportation & Logistics • Energy & Utilities • Government & Public Services • Network and Systems • Commercial & Contracts • Corporate Services • Internal Audit • Internal Information Systems & Platinum Process group (PPG) • Corporate Communications • Legal

Non-Hierarchical Collaborative Promotes Entrepreneurship

Horizontal Competency Units (HCU)
• Managed IT Services (MITS) • Enterprise Applications and Business Intelligence Solutions (EABIS) • SAP Solutions • Consulting and Enterprise Solutions • Hi-Tech Solutions • Engineering Services • Microsoft Solutions Group

Regional Business Units (RBU)
• Canada • Continental Europe • Middle East, Africa, India • Asia Pacific

0

Alliances with top line global Technology and Product vendors
Enterprise Applications Logistics Development Platforms / Tools

Data Warehousing / Business Intelligence

Enterprise Information Portal / Content Management

Business Process Management

Application / Process Integration

Knowledge Management

Vertical Specific Alliances (Telecom, Insurance, Retail)

Grid Computing

Engg. Services

1

Agenda

Brief Introduction 1H FY05 Highlights Business Environment Strategy for Growth

2

Buoyant Revenue Growth
Broad-based growth across geographies, verticals and customers Revenue growth of 10% and EPS growth of 9% in Q2 surpassed guidance The CQGR of revenue based on trailing 4 quarters has grown from 4.64% in Q2 2004 to 9.11% in Q2 2005 Revenue contribution from Europe has increased from 12.90% to 16.00% in the past 5 quarters Witnessing Solutions enhanced opportunities in Enterprise

3

Improved Customer Traction
Revenue contribution
60 50 40 30 20 10 0 2002 2003 Top Top 5 2004 Top 10 Q2 05 20 18 14 13 40 40 36 32 52 53

US$ million customers
125
45

48

100 75 50 25 0 6 2002 US$mn 12 19 9 2003 59 55

77

97

24 9 2004

29 16 Q2 05 US$10 mn

US$5 mn

 Reduced client concentration  Wider range of services coupled with better relationship management has helped in “mining” of existing customers  The threshold revenue limit for entry into top 10 has increased by 87% vis-à-vis corresponding quarter last year

4

Changing Growth Profile
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 18.14% TIMES 13.67% 10.48% 9.95% 10.04% 5.00% 2.07% 2002 2003 2004 Q2 05 11.56%

New Verticals

 Creation of new markets by (Transportation, Healthcare, Retail)

accelerating

growth in

newer

verticals

 During past 5 quarters TIMES have grown at a rate higher than the company’s growth rate

Focus on new markets - growth enabler and a risk mitigant

5

Quality Customer Base
Fortune Global 500 customers
125 100 75 50 25 0 2001 2002 2003 2004 Q2 05 37 58 81 101 109

 70 F Global 500 customers added in the last 3 years – reflects ability to compete favourably with global IT service providers  Enhanced ability to forge partnerships reflected in quality customer addition in newer verticals also Working with 6 of the top 10 pharma companies Acquired 14 customers including 6 F Global 500 companies in first year of operations in Retail

6

Ability to partner with global organizations is driving growth

Overcoming Margin Challenges
Wage Inflation  Onsite hike of 4% in April 2004  Offshore hike of 18%-20% in October 2004 Pricing  Stabilized  New customers added at higher than average rates  In Q2, negotiations were favorable  High value and newer services have the potential for premium
Operating Margins
22.00% 21.36% 20.00%

 Focus on increasing utilisation  Lowering delivery Costs Intake of trainees – 4210 trainees (40%) recruited during last 6 quarters  Shift towards offshore  Managing Fixed bid engagements better Operational Excellence

19.75% 18.37%

18.00%

17.93% 16.56%

16.00% Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 SG&A as a % of reveneue

Cost Management

7

Nipuna
 16 active customers of which 14 are existing customers of Satyam.  Associate strength at the end of Q2 is 1350  Total seating capacity of 1500  Q2 2005 revenue of US$ 2.40 mn  Revenue guidance for FY 2005 at US$12 m.  Expect to break even by end of this fiscal

High potential for cross selling of services across entire customer base

8

FY 2005 : Guidance
Indian GAAP (Standalone) Particulars At the end of Q4 2004 Software Revenue (Rs. In crores) EPS (Rs. Per share) 3097 - 3146 (21.9% - 23.8%) 20.28 - 20.62 (17.9% - 19.9%) At the end of Q1 2005 3268 - 3312 (28.6% - 30.3%) 21.71 - 22.06 (26.2% - 28.3%) At the end of Q2 2005 3415 - 3428 ( 34.4% - 34.9% ) 22.61 - 22.76 (31.4% - 32.3% )

US GAAP (Consolidated) Particulars At the end of Q1 2005 Revenue (In $ Mn) EPADS (In US Cents) 733 - 743 (29.5% - 31.1%) 95 - 96 (31.9% - 33.3%)

At the end of Q2 2005 767 - 770 (35.4% - 36.0% ) 95 - 96 31.9% - 33.3%

Introduction of US GAAP Guidance for convenience of investors

9

Agenda

Brief Introduction 1H FY05 Highlights Business Environment Strategy for Growth

0

Market Drivers
Increased Outsourcing  More Organizations are outsourcing – big & small  Expanded outsourced services portfolio  Increased breadth and depth of outsourced services  Increased volume of services outsourced  Stringent Due-Diligence exercises STATE OF THE MARKET Level Playing Field  Contract & Solution merit wins  Indian companies and MNCs perceived on par  Long-term and pro-active benefits win  Brand Equity counts

 Vendor Consolidation  Vendors brand equity – critical  Vendors partnering for Large deals  Long-term and deep partnerships Vendor Partnerships

 Many Organizations moving into India  Partnering with local entities  Setting up Captive units  Big5 & others moving-in bigtime Movement to India

1

Customer Expectations
Changing Characteristics  New & changed Sourcing Patterns  Changed interest levels  Vendor Managers to CXO involvement  Comprehensive Selection Criteria
CUSTOME R SPEAK

Increased Capabilities  Cover wider geography  Provide solutions to complex problems  Expanded service offerings  Delivery capability – people processes and depth

 Increased Expectations  Looking beyond cost advantage  Consulting – upstream services Vendor to Partner

 Concrete measurements to Relationship evaluation  Greater Transparency & control of operations  Comprehensive Frameworks / working models Measured Governance

2

Business Climate
Stable Pricing  Some New Deals coming in at higher than average prices  No out-of-turn renegotiations  High Value and Newer services have the potential for premium Offshore clearly mainstream  Willingness consider a broad range of services from Offshore  Laggard Industries also adopting offshore as a strategy  Scale and Maturity seen as differentiators
SERVICES PORTFOLI O

 More Inclined to customize packages than build from scratch  Solution integration as an extension of interest Package Solutions Focus

 Domain Awareness increasingly expected and assumed  Offshore players considered business partners  Relationship maturity makes a difference Business Partner Focus

3

Competitive Trends
Complex Business Solutions  Ability and track-record of solving complex problems  Needs cutting across wider tech and domain areas  Specialist knowledge of Industry native products Leading Brands  Branded and reputed companies  Leadership in segments of technology and industries  Proven Service & delivery excellence

LEADERSHI P ASPIRATIO N

 Increased upstream services  Increased Technology and domain depth  Ability to manage large engagements Deeper Competencies

 Big names and bigger needs  Large deal management capabilities  Abilities to follow the customer everywhere Demanding Customers

4

Agenda

Brief Introduction 1H FY05 Highlights Business Environment Strategy for Growth

5

Strategies for Growth
Partnership Model

STATE OF THE MARKET

CUSTOMER SPEAK

Vertical Focus

BUSINESS STRATEGY
BUSINESS CLIMATE

Regional Approach

COMPETITIVE TRENDS

Branding

6

Partnership Model

Evolution from RELATIONSHIPS to PARTNERSHIPS

 Managing Relationships – Highest Maturity

Level  Upstream Involvement  Leadership Enhancement  Investment in markets and opportunities

Convert every Platinum Relationship into Partnerships

7

Vertical Focus
 Build on Traditional Strengths  Invest in Partnerships  Niche Solutions for Industry Hot Topics  Invest in Growth Engines  Capitalize on Strong Momentum  Focus on Aggressive Growth in promising Verticals  Competitive differentiation through innovation

8

Regional Approach
 Enhanced Focus on Europe  Increased Traction due to Wide Adaptation of Global Delivery Model in Europe  Structured for Acceleration  Vertical Focus to Capitalize on Strengths  Near Shore Options  Toronto Near Shore already in Operation  Continued focus on China as Near shore for Far East  Operations in Budapest to commence shortly  “Follow the Customer” Model  Increased instances Global MSAs  Other Regions of Growth

9

Brand Enhancement
 Enhanced Stakeholder Perception  Stakeholder Summits  Publicize Significant Accomplishments  Segmented and Focused Branding  Collaborative Forums by Industry Segment  Advisory Committees consisting of industry Leaders  Media Events  Industry recognition from market research firms

0

Summary
 Global Services Delivery Poised for a Paradigm Shift  Business Value Creation Capabilities will determine Quality and Quantity of Growth  Multi-pronged Strategy of Growth to Take Advantage of the Opportunities  Satyam is Well Positioned to deliver “What the Business Demands”

1

Thank You

www.satyam.com

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