This is just a test copy

1
Polaris Software Lab Ltd. Meeting with Fund
Managers / Analysts
30th June - 1st July 2005
2
Company was invited to Emerging Technology Forum
organised by Smith Solomon and Barney at Mumbai.
Summary of the discussions with the Analyst
Fund Managers and our team headed by Mr Prabal
Basu Roy, Executive Vice President and Group CFO.
3
Financials FY 05

• Q 4 was an aberration,one qtr of negative
  sequential growth orders delayed
• FY 05 Revenue growth was 25 in terms - in line
  with the industry and upper end of the spectrum
  for similar companies.
• Reiterating Mr. Jains comments during investors
  concall post results and in the media, services
  business positioned as doing well for similar
  companies with a contribution of 27 Mn.
• Overall Profits were down due to investments in
  Products and Optimus which will be our future
  differentiator in business.
• Cash flows continue to be positive, and all
  investments funded internally.

4
Services

• Growth in line with industry trendsexpected to
  be on the upper end of range for mid-tier
  companies.
• Stable Pricing environment again in line with
  industry expectations
• Continuing focus on Costs and improvement in
  utilization
• Not a generic, scale player like TCS, Infy, Wipro
  etc. and therefore not expected to bag very large
  deals.

5
Services

• Growth strategy entry in large banks thru
  Products and then building on the relationships
  and quality of delivery .Same model as was used
  in growing Citibank over the years.
• Services will continue to be the major component
  of the revenue stream

6
Products

• Invested over 20- 25 Mn in last 2- 2.5 years.
  Some capitalised, some reflected in p/l
• Subject to winning one large deal,investments
  possibly have peaked at FY 05 levels One deal
  can potentially reduce mismatch between costs and
  revenues
• Products strategy is not based on Universal
  Banking but on SOA(Services Oriented
  architecture)
• SOA involves implementation of modules or
  Genes
• quick implementation
• Build additional functionalities over existing
  systems.

7
Products

• Therefore advantages for the customer of this
  approach
• Lower risk
• Shorter time to market
• Lower costs
• Advantages for Polaris
• Higher realisations per unit ( better pricing
  power)

8
Products Contd..

• Competition in this space comes not from other
  players but Internal IT depts.
• Few have adapted this practice in the past like
  Alnova (founded by Anderson Consul) and in the
  recent past a JV between SAP Accenture.
• Not a linear business like Services
• Success in implementation in specific, focussed
  platforms
• Lending (Germany / Japan/ M E / India -large MNC)
• Cash Management (Eastern Europe)
• Mortgages (US)
• Cards (India)
• Reference sites crucial for future growth now
  available

9
Optimus

• Still in the investment stage.
• Has a small call centre out of Bangalore
• Refocussed the entire business to an integrated
  technology and process o/s services in FY 05
• Launched Optimum in Dec 04 - Card
  infrastructure business (business model like FDC
  in US)
• Bagged two leading banks in India in the last 3-4
  months for this business
• Strategy is to develop Indian market, get
  reference sites and then focus on International
  Market

10
Thank You

• Disclaimer Certain statements made in the
  analyst meet concerning our future growth
  prospects may be interpreted as forward
  looking statements, which involve a number of
  risks and uncertainties that could cause the
  actual results to differ materially from those in
  such forward looking statements. Investors are
  requested to use their discretion in relying on
  them.