Future DirectionsNew Growth Plans for Zensar

Ganesh Natarajan

Analyst Meet, Feb 23, 2007

Mumbai, India

A CMMI Level 5 Company www.zensar.com

Indian IT-BPO sectorIndian IT-BPO sector growing at 28%; industry growing at 28%; industry

aggregate to reach USD 47.8bn, in FY2007aggregate to reach USD 47.8bn, in FY2007

Tenfold growth over a decade

190,000 230,000 284,000

430,114522,250

670,000

830,000

1,058,000

1,630,000

1,293,000

3.0 3.3 4.25.9 5.8

8.310.2

13.2

15.9

1.8 2.74.0

6.27.7

13.3

31.9

6.3

18.3

24.2

9.8

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E

DOMESTIC MARKET

EXPORTS

1.2%1.4%

1.8%

2.6%2.8%

3.2%3.6%

4.1%

4.7%

5.4%

4.86.0

8.212.1

13.516.1

21.6

28.5

37.4

47.8

of GDP

USD Billion

Direct Employment

No. of Customers

57

85

103

122

154

195

0

50

100

150

200

250

FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 Est FY 06-07

The Growth story of Zensar…The Growth story of Zensar…

Revenue Growth Trajectory

187

228

267

345

428

580

0

100

200

300

400

500

600

FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 Est FY 06-07

Rs

Cr

Rs

Cr

Steady Progress over the Years…Steady Progress over the Years…

18141186Annuity ODC clients

58%48%41%35%32%% ODC Business

45.9%42.8%38.4%31.7%24.1%OffshoreBusiness

22.5

35

345

2004/05*

42171611PBT

58262421EBITDA

428267228187Revenue

2005/062003/042002/032001/02Parameter(Rs Cr)

* 2004/05 Financials exclude the Land Sale

YTD Apr-Dec 06

435

59

51

43%

20

64%

Good to Great – we have set up a Good to Great – we have set up a platform for accelerating this growth !platform for accelerating this growth !

• Three platforms set up – Global Outsourcing, Innovative

Technology Solutions and Enterprise Application Services, which

enshrine key horizontal and vertical practices to meet the need

of all global clients.

• Year To Date growth continues to be excellent – Over 40 % in

revenues and 100 % in profits.

• Investments in Solution Blueprinting technology and Global

Delivery Platform Process Innovation is enabling the creation of

a global footprint for collaborative development – Pune,

Hyderabad, Shenzhen, Slough, Johannesburg, Gdansk, Sao

Paolo, San Jose and Princeton.

• Management team fully in place and world class processes and

human resource practices are enabling us to meet and exceed

the expectations of existing and new clients.

InnovativeTechnology Solutions

Business Process Outsourcing

Service LinesService Lines

Application DevelopmentApplication Support & MaintenanceInfrastructure ManagementIndependent Testing ServicesConsulting

Application Portfolio Management

Enterprise Application Services

Service LinesService Lines

HR Shared ServicesKnowledge Process Outsourcing Transaction ProcessingVoice

Application ModernizationEmbedded SystemsProduct Engineering ServicesLegacy Migration

Enterprise Resource Planning [Oracle/ SAP, PSBusiness Intelligence and Datawarehousing

TelecomUtilities

Retail Manufact

uringPharmaTextile Dairy

Financial Services

Engineering Services

SBU PerformanceSBU Performance

Revenue (In Rs. Lakhs)

2005-06

Nine Months ended

31st Dec 2006

Annualized - 2006-

07

Expected Growth (2006-07 over 2005-

06)

Growth Expected

in 2007-08

APM 25,172

23,850 31,800 26% 27%

BPO 985

1,777 2,369 141% 69%

GOS 26,157 25,627 34,169 31% 30%

EAS 9,300 11,785 15,713 69% 121%*

Others 7,422 6,038 8,051 8% -27%**

Total

42,879 43,450 57,933 35% 55%

*With Acquisition **Due to restructuring of services

Process Innovation- GDPProcess Innovation- GDPGlobal Delivery PlatformGlobal Delivery Platform

Delivery Hub Running ERP/SBP

Order Complete

Order Processing

AllocateTrack

Monitor

Design

Distributed Solution Design

Develop

Design Transformation

Test

Distributed Testing

Req.Analysis

Requirement specs by Customer Reps &

SMEs

Order Entry

Customer Approval of Order

Customer Sign-Off on Order

ideas

experience

intellect

Americas

Asia Pacific

Europe

Communities

Business Model InnovationBusiness Model Innovation

Academic Inst.

Small & Medium IT Cos.

Communities

Individuals

SME ISV/OEM

GDP

Partners

A truly Ambidextrous OrganizationA truly Ambidextrous Organization

•IT-BPO Services•Application Development & Maintenance•ERP Services (Oracle)

•Appln Modernization•Testing Services•ERP (SAP) Services •Infrastructure Mgmt•Shared Services•BI/DW

•Global Delivery Platform•SBP led solution development •Product Engineering•Embedded Systems•Business-IT Consulting

2001-2006 2005-2008 2006-2010

Core Services New Services Innovation Solution

Further push for growth and profitability increase

Push new customer acquisition and expand market share

Incubate businesses that will provide differentiation over the next 3-5 yrs

EXPLOIT EXPLORE

Good to Great – Opportunities identifiedGood to Great – Opportunities identified

• Scale the successful Enterprise practice by acquisition of significant Oracle company in the US.

• Consolidate tremendous market share in South African market by merging with a BEE company in the territory.

• Scale the operations in three language markets – Japan, Germany and Latin America by equity and / or strategic partnerships.

• Build credentials and customer base in new areas like collaborative software development, SaaS and Services Oriented Architecture.

• New winds in the growth sails of all Zensar focus areas.

The First Step

Zensar poised to become one amongst the top 10 Oracle Organizations in the

World!

Zensar announces the acquisition of ThoughtDigital

Company Snapshot

Parameter ThoughtDigital

Origin 2000

Location New York

Ownership SOA

Management Managed by 5 Partners

No.of employees 120

Revenue (2006) $ 27 mn

EBITDA (2006) $ 3 mn

Company SnapshotCompany Snapshot

Services OfferedServices Offered

• Implementation Services: – Provides full lifecycle Oracle EBS expertise spanning Project

Management, Training, Functional, Technical, and Database Administration skills

Deep experience across entire Oracle EBS suite Financials, Projects, Supply Chain, HR/Payroll, CRM, and Manufacturing

Oracle EBS and Special Edition implementation services

• Upgrade Services: – Oracle EBS Upgrade Services

• Support Service: – Comprehensive Oracle EBS post-production support

services

Customer LandscapeCustomer Landscape

Top CustomersAnteon/USPS

York Water Company

Primavera

ADP Employer

Gartner

Infor

PRE

CBS

EFS

Cingular Wireless

% of Revenue Top 5 Customers account

for 40% of Revenue

Top 10 Customers account for 63% of Revenue

Vertical SynergiesVertical Synergies

ThoughtDigital has an impressive customer landscape comprising names from the following verticals (YTD Dec’06):

39.50%

27.10%

9.80%

10.10%

Communication & MediaFinancial ServicesManufacturing & TechnologyOthers

Zensar’s prominent verticals have shown a steady growth through the last few quarters (YTD Dec’06):

29.00%

20.00%13.00%

12.00%

7%

17%

Telecom Manufacturing

Retail BFSI

Utilities Others

Common verticals like Financial Services and Manufacturing will grow from strength to strength!

• Strategically, Zensar could become one of the Top 10 Oracle Implementers in the World

• Strong Oracle Relationship

• TD’s US base can increase Zensar’s competitiveness in the US market (East Coast)

• TD’s list of clients can add significant business to Zensar’s non Oracle offerings

• TD’s revenue can add significant mass to Zensar’s organic growth

• Balanced Implementation, Upgrade and Managed services portfolio

• TD has considerable presence in verticals like Financial Services, Manufacturing and Consumer Products where Zensar has developed a commendable level of expertise

• Good reputation and references for top quality Oracle Implementation in target geography and verticals

• Profitable and revenue generating with an experienced Management Team

Investment ObjectivesInvestment Objectives

Zensar – TDA Tier 1 Oracle Solutions Partner

Guidance For 2007-08Guidance For 2007-08

• Aggressive revenue growth to clock revenues of over Rs 850+ crores in FY 08 with Enterprise Services share up from 27% to 39%

• Continue to scale profits faster than revenues and achieve the magic figure of 10 % PAT

• Increase manpower productivity by 10 % through effective deployment of GDP technology and process and business model innovation

Thank You

ganeshn@zensar.com

A CMMI Level 5 Company www.zensar.com