iFlex

Prepared by - Raghav

Brief Overview of the Company:

Founded in 1991
Headquarters Mumbai, (India)

Key people
Rajesh Hukku, Chairman and Head – Oracle, FSGBU.
R. Ravisankar, Vice-chairman.
Deepak Ghaisas, Vice-chairman.
NRK Raman , Managing Director and Chief Executive Officer. .
Makarand Padalkar , Chief Financial Officer.

Industry Computer Services on Finance/Banking

Products: FLEXCUBE, Reveleus, Daybreak, Mantas, Castek

Revenue: $478 million USD
Employees: 10,000 approx (2007)

I-flex was earlier known as Citicorp Information Technologies Industries Ltd. (CITIL).It
was carved out of a Citicorp (now Citigroup), wholly owned subsidiary called Citicorp
Overseas Software Ltd. (COSL) in 1991. While COSL's mandate was to serve Citicorp’s
internal needs globally and be a cost center, CITL's mandate was to be profitable by
serving not only Citicorp but the whole global financial software market.

In 2006, i-flex became a majority-owned subsidiary of Oracle Corporation. Oracle built

its stake through a series of purchases, first buying Citigroup's 44% stake in i-flex
solutions for US$909 million (Rs3,960 crore at Rs43.55=US$1) in August 2005, a further
7.52% in March and April 2006 , and 3.2 per cent in an open-market purchase in mid-
April 2006.

Business Solutions:
The Group's principal activity is to provide information technology solutions to the
financial service industry worldwide. The Group is organized into three business
segments:
Products, Services and KPO Services.

Product licenses and related activities segment deals with banking software products like
the FLEXCUBE suite of products, Reveleus, Microbanker and Daybreak which cater to
needs of corporate, retail and investment banking as well as treasury operations and
datawarehousing requirements.

The related activities include enhancements, implementation and maintenance activities.

IT solutions and consulting services comprise of bespoke software development,
provision of computer software solutions and related consulting services arising from
such activities. PrimeSourcing, its global IT services business, provides customized
software solutions for the financial services industry. Its Technology Deployment &
Management Services group designs, develops, deploys and manages IT infrastructure
for financial institutions.

Knowledge Processing Services comprise business process outsourcing services for

mortgage industry.

Major Customers:

They have provided product/services t0 765 financial institutions, in over 130 countries,
including Banco de Chile, Citibank, the International Monetary Fund (IMF), Shinsei bank
and UBS.Below is another list of some of their major customers

 Amritsar Central Cooperative Bank, India

 Antwerp Diamantbank, India
 Asia Fund Services, Singapore
 Asian Finance Bank, Malaysia
 First Gulf Bank, UAE
 Kotak Mahindra Finance, India
 Lord Krishna Bank, India

For more details of customer, please the company site.

Major Events in the company (M&A etc.):

i-Flex Solutions Limited Increases Its Stake In Castek To 100%

Oct 04, 2007
i-Flex Solutions Limited announced that it has acquired a 100% stake in Castek Software
Inc. The Company board has approved the acquisition and the transaction is expected to
close by March 2008.

Bank M (Tanzania) Selects i-flex's FLEXCUBE As Core Banking Solution

Sep 17, 2007
i-Flex Solutions Limited announced that Bank M (Tanzania) has selected its flagship
product FLEXCUBE as its core banking solution.

i-Flex Solutions Limited Announces Appointment Of Managing Director

Aug 24, 2007
i-Flex Solutions Limited announced that the Company has appointed Mr. N R K Raman
as the Managing Director for a period of five years with effect from May 01, 2007, to
April 30, 2012. i-Flex Solutions Limited Partners

With Bharosa To Offer Its Banking Customers Uncompromising Protection Against

Online Fraud
Jun 08, 2007
i-Flex Solutions Limited announced that Bharosa and the Company will collaborate to
provide joint banking customers with advanced security solutions to combat the growing
threat of consumer identity theft and fraud on the internet. Bharosa will enable the
Company to add real-time fraud detection and multiple forms of authentication security
to its FLEXCUBE retail banking product. The joint solution will safeguard consumers'
online identity and transactions against the latest forms of online threats, including
phishing, spyware, and malicious computer bots.

i-Flex Solutions Limited Stocks Soar On Talk of Oracle Offer-Reuters

Jun 05, 2007
Reuters reported that Shares in i-Flex Solutions Limited rose sharply on market talk that
majority owner Oracle Corp. may make an open offer to increase its stake in the
Company. Oracle owned about 81% of the Company as at end-March.

i-Flex Solutions Limited Announces Korea Exchange Bank Selects Mantas Anti-
Money Laundering
May 21, 2007
i-flex Solutions Ltd announced that Mantas Inc.,a business of the Company announced
that Korea Exchange Bank has purchased the Mantas Anti-Money Laundering Solution.

I-Flex Solutions Limited Announces Management Changes

May 01, 2007
I-Flex Solutions Limited announced the appointment of Chief Operating Officer N. R. K.
Raman as the Company's new Managing Director and Chief Executive Officer. Rajesh
Hukku, the current Chairman of the Board and Managing Director of the Company will
continue on the board as the Non-Executive Chairman.

Allied Irish Bank Selects i-flex as Strategic Partner for Transformation of its Retail
Operations
Apr 09, 2007
I-Flex Solutions Limited announced that Allied Irish Bank (AIB), Ireland's financial
services Company and a top tier bank, has selected the Company as strategic partner in its
key retail transformation project. AIB is using the Company's FLEXCUBE Core Banking
application to help implement a common IT operating model for retail banking operations
throughout the Group.

People's Bank Selects I-Flex Solutions Limited FLEXCUBE For Core Banking
Jan 16, 2007
I-Flex Solutions Limited and Oracle Corp. announced that People's Bank (Bridgeport,
Connecticut) has selected I-Flex's FLEXCUBE for its Core Deposits system replacement.
The bank will implement FLEXCUBE, along with Reveleus Customer Profitability
Analytics and Oracle Database.

I-Flex Solutions Limited's Ii-Flex Solutions Pte Ltd To Acquire Capco's Singapore
Consulting Practice
Jan 02, 2007
I-Flex Solutions Limited announced that its Singapore headquartered subsidiary, i-flex
solutions pte ltd, has entered into a definitive agreement to acquire the Singapore
subsidiary of Capco - The Capital Markets Company Pte Ltd. Details of the transaction
were not mentioned.

Recent award and recognition (Good for speaking about the company in
the interview)

Best Core Banking Project Award

• i-fl ex® solutions and Syndicate Bank, one of India’s leading public sector banks, won
the ‘Best Core Banking Project Award for Large Banks’ at The Asian Banker IT
Implementation Awards, 2006. Launched last year, the Asian Banker IT Awards aim to
discover emerging best practices in the use of IT in the fi nancial services industry. The
assessments were based on four inter-related criteria: project implementation, business
value created, qualitative analysis and architectural design, and technical innovation.

One of the 38 Best Earners in Financial Services

• Research by The American Banker and Financial Insights, an IDC company, resulted in
i-fl ex receiving the FinTech citation at the BAI-RDS conference in Las Vegas, USA, for
best fi scal results. The FinTech 100 evaluates IT services companies on fi scal year-end
revenues and the percentage attributed to the fi nancial services industry.

• Forbes Asia ranked i-fl ex No. 12 in its ‘Best under Billion List’.

IBS ranks FLEXCUBE® the #1 Banking Solution for the Fifth Consecutive Year
• FLEXCUBE retained its position as the world’s No.1 selling banking solution for the
fifth consecutive year, in International Banking Systems (IBS) Annual Sales League
Tables for 2006, leading all other banking products across all categories in the number of
new wins for the year.

SWIFTReady Silver Label (2007) awarded to FLEXCUBE for Payments

• FLEXCUBE V.UM Release 7.3 received the SWIFTReady Silver 2007 Label for
complying with SWIFT Criteria for its payments application. This label identifies
products that are compliant with SWIFT, integrate efficiently into the SWIFT
environment, increase traffic automation, and achieve straight-through processing (STP).
The Banker Magazine commends Reveleus™ for Innovation
• Reveleus and the Reveleus’ Basel II Solution were ‘Highly Commended’ by The Banker
magazine and The Financial Times in the Compliance Initiative Innovation category of
The Banker Technology Awards, 2006. The awards recognize the innovation and
excellence of technical applications and services for the front-, middle-, and back-office
functions in financial services companies, and the strategies used by these companies to
use technology effectively.

Financials:
Sources of Revenue:

As expected from any Indian IT company, they receive most of the revenues from USA
(39%). Europe and Asia-pacific market follows the list with contributions of 28% and
15% of the revenue respectively.
Their main two operation are product and services. Iflex earns their money from sale of
IT product for financial sector (54%) and from after sales services they provide to the
customer (46%).

As discussed before the Group is organized into three business segments: Products,
Services and KPO Services contributing to 55%, 43% and 2% of the total revenue
respectively.

As far as costs are concerned it is expected that most of the cost will be towards human
capital i.e. staff, contributing to 64% of the overall cost.

Other cost includes travel cost (13%), cost of application software used within the
company (4%), professional fees (9%) and facility cost (5%).

Competitors:

Excellent site for information about competitors…..i am purposely not giving the
list……go to the site and get information about any competitor you want

http://www.inntron.co.th/corebank.html

Company Strategy:
Large corporate and retail banking assignments, emerging areas such as Islamic Banking,
private wealth management, enterprise risk management and compliance and IT
outsourcing are some of the areas where i-flex sees opportunities in the next few years.
The company has been engineering a series of acquisitions to expand into software for
risk management, anti-money laundering, consumer lending, and property and casualty
insurance.

i-flex recently entered the insurance vertical and it plans to continue to expand the
capability within the financial services domain
Key points to remember:
• Posted annual revenues of Rs. 2,061 crores (Indian GAAP Consolidated) for 2006-
2007. Net profi ts increased by 50 percent.
• Combined revenues from USA and Europe grew from 67 to 70 percent.
• Number of customers serviced increased from 642 to 753; FLEXCUBE
now has a global presence in over 105 countries, with 315 customers.
• Annual products revenue registered a 47 percent increase to Rs. 1,121 crores. The
product tank size stood at USD 82.5 million, the highest level reached till date, showing a
27 percent year-on year increase.
• Employee strength grew to 9,000 plus.
• Opened new offices in London, New Jersey, Seoul and Taipei; invested in new office
space across Mumbai, Pune, Bangalore and Chennai in India.
• Acquired Mantas, a leading software company providing solutions for regulatory
compliance, governance and anti-money laundering, in an all cash transaction of USD
122.6 million.
• The consulting business expanded with the acquisition of CAPCO’s Singapore
operations.

Insider Information: