Innovate Your Outsourcing Contracts The future is now!

©2014 Infosys Confidential

About InfosysInfosys is a global leader in technology, consulting, and business process outsourcing

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ValuesMilestones People IntellectService Lines

Founded in Pune, India, in 1981

$8.2 billion revenues

Global presence across 71 countries

$30 billion market capitalisation

160,220+ employees

100 nationalities

97% areuniversity educated

22% have masters or doctorates

World’s largest corporate university

2% of revenues invested in R&D

600+ researchers

Investing $100 million in new platforms

Transparency, ethics, and respect

98.3% of projects are delivered on time

97.8% of businesses are repeat businesses

Among top 25 in Caring for Climate Initiative by UN Global Compact

Consulting services

Information Technology services

Business process outsourcing services

Products and platforms

©2014 Infosys Confidential

About Philips A strong, diversified, technology group with a vision to make the world healthier and more sustainable

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1 Categories are calculated using 2013 full-year sales2 Growth geographies exclude USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel

Adjusted EBITA of €2.5 billion in 2013€1.7 billion R&D spend in 2013112,000 employees across 100 countries

Established since 1891 €23.3 billion sales in 2013

70% B2B25% revenues from recurring streams

50% of portfolio has global leadership positions

40 businesses in 3 sectors1

Healthcare Consumer Lifestyle Lighting

37%20%43%

Geographies1

North America

Growth Geographies2

Western Europe

Other Mature Geographies

25% 30% 9% 36%

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Philips Accelerate! Program Philips is on a transformation journey, establishing a new operating model with standard processes

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BPO Industry EvolutionWe are journeying to the next generation of BPO model

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Delivery Model

Focus

Key levers

Value creation

First Generation

Second Generation

Third Generation

The Next Generation

Relationship

Labour arbitrage

Offshore-centric

Stable processes

Cost impact

Process improvements

Offshore or near shore

Efficiency

Cost impact

Automationprocess re-design

Global delivery

Process excellence

Business impact

Innovation, collaboration

Hub and spoke

Demonstrated business value

Strategic impact

Supplier-Buyer Partnership

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Philips – Infosys JourneyThe Philips – Infosys relationship started 7 years ago. We have extended it by another 5 years!

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• Watermelon effect: green SLAs but red E2E KPIs

• Alignment of innovation roadmap

• Predictability of efficiencies

• Standardization of processes & structure

Stabilization Realized Business Value

Enhanced Collaboration

Future Focus

Optimization

• Took over 3 Philips captive centers

• Technology enhancement

• Transfer of rule based complex processes

• Over 25 automation projects (some in progress)

• Joint target for Fit2grow program

Expansion

First Six YearsKey improvement

opportunities in 2013

2012-132007-08 2010 20112009

• Implemented variable cost model

• Moved from regional to global delivery model

• Partnered in two strategic initiatives

• Created Global Business Process Owners structure

• Roadmap to achieve benchmarked cost levels for finance function

2014+

• Ensure that standardization is a pre-requisite

• Drive E2E KPI improvements by leveraging analytics

• Innovate together –shape the E2E roadmap

• Have skin in the game

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Future Focus - Ensure that standardization is a pre-requisite Issues: Multiple, diverse, ways of functioning in finance and multiple IT solutions Solution Approach: Standardization, required to enable innovation

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Multiple SAP systems

Multiple Operating Units

Multiple manual Journal Vouchers

High variability in execution

Multiple work instructions

Standardize to innovate & become more flexible

Move towards one Finance Standard for Philips

Manage this centrally, but remain locally relevant

Monitor and enforce adherence/compliance

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Future Focus - Drive E2E KPI improvements by leveraging analytics From cumbersome, partial measurements to joint ownership

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• Watermelon effect• Lack of actionable insights• Lack of clear accountabilities

• One dashboard for both Philips and Infosys• Infosys has clear accountability for E2E KPIs in-scope processes• Infosys creates insights to drive process changes

Challenges: Solution Approach:

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Future Focus - Innovate together, shape the E2E roadmap From siloed improvements towards end-to-end roadmaps

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Drive Transformation & End State Visioning

Drive Operational Excellence (Compliance & Service Quality)

Drive Continues Improvements (take the leakage out of it)

Innovation Board

Targets

3 Business Platforms and IT Tools

1 Governance 2 Co-creation and Innovation Fund

4 Robotics

• Insufficient alignment of improvement roadmaps

• Diverse capabilities, disagreements -unable to achieve a joint agenda

• Defining Innovation agenda and governance – meet every 8-10 weeks• Leveraging Infosys IP and investments• Aligning with E2E roadmap

Challenges: Solution Approach:

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Future Focus - Have skin in the game From siloed improvements towards Pain-Gain sharing

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• Lack of initiative to improve end-to-end processes

• Lack of integration of diverse Infosys capabilities

• Clear improvement targets for key indicators• Quality variation causes significant penalty/incentive• Concrete control environment is a pre-requisite for incentives

Challenges: Solution Approach:

• Focus on seven key indicators• Incremental quarterly targets• Significant revenue at stake • Equal upside

PAIN GAIN

©2014 Infosys Confidential

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