1

Satyam Computer Services Ltd

2

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

1H FY05 Highlights

Business Environment

Strategy for Growth

Agenda

4

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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Enterprise Application Deployment and Integration Data WarehousingBusiness Intelligence SCM CRM Knowledge Management

Product Development Services Embedded Systems RoboticsChip Design R&D Services

Strategic IT Consulting

Software Development & Maintenance

Business Process Outsourcing

Infrastructure Management Services (IMS)

…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

ROW

North America

EuropeJapan

73.34%

10.98%

13.71% 1.97%

REVENUE DISTRIBUTION BY INDUSTRY

18.45%

31.44%

18.27%

13.90% 11.82%

6.12%

Manufacturing

Healthcare

Telecom

Insurance

Others

Banking & Financial Services

Packaged Software Implementation

Software Maintenance

Engineering Design Services

46.59% 23.56%

3.63%

26.22%

Software Design Development

…with a consistent performance

155

267

363418

553

3169

103 95121

0

100

200

300

400

500

600

2000 2001 2002 2003 2004

US

$ m

n

Revenue ProfitFigs 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-HierarchicalCollaborative 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)

• Infrastructure Management Services (IMS)

• 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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1H FY05 Highlights

Brief Introduction

Business Environment

Strategy for Growth

Agenda

12

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

20 1814 13

40 4036

32

52 5348

45

0

10

20

30

40

50

60

2002 2003 2004 Q2 05

Top Top 5 Top 10

59 55

77

1219 24 29

16

97

996

0

25

50

75

100

125

2002 2003 2004 Q2 05

US$mn US$5 mn US$10 mn

US$ million customersRevenue 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

5.00%

10.04%11.56%

10.48% 9.95%

13.67%

2.07%

18.14%

0%2%4%6%8%

10%12%14%16%18%20%

2002 2003 2004 Q2 05

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 BaseFortune Global 500 customers

37

58

81

109

101

0

25

50

75

100

125

2001 2002 2003 2004 Q2 05

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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Wage Inflation

Onsite hike of 4% in April 2004

Offshore hike of 18%-20% in October 2004

Operating

Margins

Overcoming Margin Challenges

Operational Excellence

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

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

Cost Management

21.36%

19.75%

18.37%17.93%

16.56%16.00%

18.00%

20.00%

22.00%

Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005

SG&A as a % of reveneue

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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

Indian GAAP (Standalone)Particulars

Software Revenue 3097 - 3146 3268 - 3312 3415 - 3428(Rs. In crores) (21.9% - 23.8%) (28.6% - 30.3%) ( 34.4% - 34.9%)

EPS (Rs. Per share) 20.28 - 20.62 21.71 - 22.06 22.61 - 22.76(17.9% - 19.9%) (26.2% - 28.3%) (31.4% - 32.3%)

US GAAP (Consolidated)Particulars

Revenue 733 - 743 767 - 770(In $ Mn) (29.5% - 31.1%) (35.4% - 36.0%)

EPADS (In US Cents) 95 - 96 95 - 96(31.9% - 33.3%) 31.9% - 33.3%

At the end of Q2 2005

At the end of Q4 2004

At the end of Q1 2005

At the end of Q1 2005

At the end of Q2 2005

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Business Environment

Brief Introduction

1H FY05 Highlights

Strategy for Growth

Agenda

20

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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Brief Introduction

1H FY05 Highlights

Business Environment

Strategy for Growth

Agenda

25

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

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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

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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