presentation dec04

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Satyam Computer Services Ltd

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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. Forward looking statements

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Brief Introduction Agenda

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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 The profile of a Global Company

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

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…providing end-to-end services

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

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REVENUE DISTRIBUTION BY TECHNOLOGY REVENUE DISTRIBUTION BY GEOGRAPHY REVENUE DISTRIBUTION BY INDUSTRY …with a consistent performance Figs as per Indian GAAP Figs for FY 2004 Figs for FY 2004 Figs for FY 2004

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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 …and trusted by

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Customer Centric, Business Focused Organisation Structure Regional Business Units (RBU) Non-Hierarchical Collaborative Promotes Entrepreneurship Horizontal Competency Units (HCU) Automotive Banking& Financial Services Healthcare, Insurance & Pharmaceuticals Manufacturing Retail Telecom Infrastructure Media & Entertainment Semiconductor Travel, Transportation & Logistics Energy & Utilities Government & Public Services Canada Continental Europe Middle East, Africa, India Asia Pacific Vertical Business Units (VBU) Shared Services (SSU) 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 Network and Systems Commercial & Contracts Corporate Services Internal Audit Internal Information Systems & Platinum Process group (PPG) Corporate Communications Legal

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Alliances with top line global Technology and Product vendors Enterprise Applications Knowledge Management Vertical Specific Alliances (Telecom, Insurance, Retail) Data Warehousing / Business Intelligence Application / Process Integration Logistics Enterprise Information Portal / Content Management Development Platforms / Tools Grid Computing Business Process Management Engg. Services

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1H FY05 Highlights Agenda

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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 enhanced opportunities in Enterprise Solutions

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Improved Customer Traction US$ million customers Revenue contribution 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

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Changing Growth Profile Focus on new markets - growth enabler and a risk mitigant Creation of new markets by accelerating growth in newer verticals (Transportation, Healthcare, Retail) During past 5 quarters TIMES have grown at a rate higher than the company’s growth rate New Verticals TIMES

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Quality Customer Base Fortune Global 500 customers 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 Ability to partner with global organizations is driving growth

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Overcoming Margin Challenges

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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 Nipuna High potential for cross selling of services across entire customer base

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FY 2005 : Guidance Introduction of US GAAP Guidance for convenience of investors

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Business Environment Agenda

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STATE OF THE MARKET Increased Outsourcing Vendor Partnerships Level Playing Field Movement to India Vendor Consolidation Vendors brand equity – critical Vendors partnering for Large deals Long-term and deep partnerships 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 Contract & Solution merit wins Indian companies and MNCs perceived on par Long-term and pro-active benefits win Brand Equity counts Many Organizations moving into India Partnering with local entities Setting up Captive units Big5 & others moving-in big-time Market Drivers

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Changing Characteristics Vendor to Partner Increased Expectations Looking beyond cost advantage Consulting – upstream services New & changed Sourcing Patterns Changed interest levels Vendor Managers to CXO involvement Comprehensive Selection Criteria Increased Capabilities Cover wider geography Provide solutions to complex problems Expanded service offerings Delivery capability – people processes and depth Measured Governance Concrete measurements to Relationship evaluation Greater Transparency & control of operations Comprehensive Frameworks / working models CUSTOMER SPEAK Customer Expectations

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Stable Pricing Package Solutions Focus Offshore clearly mainstream Business Partner Focus More Inclined to customize packages than build from scratch Solution integration as an extension of interest 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 Willingness consider a broad range of services from Offshore Laggard Industries also adopting offshore as a strategy Scale and Maturity seen as differentiators Domain Awareness increasingly expected and assumed Offshore players considered business partners Relationship maturity makes a difference SERVICES PORTFOLIO Business Climate

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Complex Business Solutions Deeper Competencies Leading Brands Demanding Customers Increased upstream services Increased Technology and domain depth Ability to manage large engagements Ability and track-record of solving complex problems Needs cutting across wider tech and domain areas Specialist knowledge of Industry native products Branded and reputed companies Leadership in segments of technology and industries Proven Service & delivery excellence Big names and bigger needs Large deal management capabilities Abilities to follow the customer everywhere LEADERSHIP ASPIRATION Competitive Trends

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Strategy for Growth Agenda

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STATE OF THE MARKET CUSTOMER SPEAK BUSINESS CLIMATE COMPETITIVE TRENDS BUSINESS STRATEGY Vertical Focus Regional Approach Branding Partnership Model Strategies for Growth

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Evolution from RELATIONSHIPS to PARTNERSHIPS Managing Relationships – Highest Maturity Level Upstream Involvement Leadership Enhancement Investment in markets and opportunities Partnership Model Convert every Platinum Relationship into Partnerships

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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 Vertical Focus

Regional Approach: 

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

Brand Enhancement: 

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

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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” Summary

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www.satyam.com T h a n k Y o u