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1. Revenue

The increase in revenues was primarily attributable to an increase in digital revenues, large deal wins and volume increases across most of the segments.

Revenue growth in reported terms includes impact of currency fluctuations. We, therefore, additionally report the revenue growth in constant currency terms, which represents the real growth in revenue excluding the impact of currency fluctuations. We calculate constant currency growth by comparing current period revenues in respective local currencies converted to INR using prior-period exchange rates and comparing the same to our prior-period reported revenues. Our revenues in reported currency terms for fiscal 2023 is US$ 18,212 million, a growth of 11.7%. Our revenues for fiscal 2023 in constant currency grew by 15.4%.

We added 458 new customers (gross) during fiscal 2023 as compared to 451 new customers (gross) during fiscal 2022.

On a consolidated basis, for the year ended March 31, 2023, approximately 97.4% were export revenues whereas 2.6% were domestic revenues, while for the year ended March 31, 2022, 97.1% were export revenues whereas 2.9% were domestic revenues. Refer to the Segmental profitability section in this report for more details on the analysis of segment revenues.

2. Expenditure Cost of sales

The cost of efforts, comprising employee cost and cost of technical sub-contractors, has increased as a percentage of revenue from 60.7% in fiscal 2022 to 61.6% in fiscal 2023 on a standalone basis and from 57.6% in fiscal 2022 to 58.0% in fiscal 2023 on a consolidated basis. The cost of efforts has increased mainly on account of compensation increase, increase in headcount and higher onsite mix partially offset by decrease in sub-contractors cost.

Third-party items bought for service delivery to clients include software and hardware which are integral to our overall service delivery to clients.

Selling and marketing expenses

The selling and marketing expenses on standalone basis have remained unchanged as a percentage of revenue during fiscal 2023 at 4.0%, and have increased on consolidated basis during fiscal 2023 to 4.3% from 4.2% in fiscal 2022, mainly on account of increase in branding and marketing expenses and travelling costs partially offset by decrease in employee benefit costs.

General and administration expenses

The general and administration expenses on standalone and consolidated basis have reduced as a percentage of revenue during fiscal 2023 to 4.3% from 4.6% in fiscal 2022, and 4.9% during fiscal 2023 from 5.3% in fiscal 2022, respectively, mainly on account of a decrease in employee benefit costs and consulting and professional expenses partially offset by increase in travel expenses.

3. Other income and finance cost

Other income primarily includes income from investments, gain / loss on investments, foreign exchange gain / loss on forward and options contracts and foreign exchange gain / loss on translation of other assets and liabilities. In fiscal 2023, the Company received Rs.1,463 crore of dividend from our subsidiary, which is reflected in the Standalone financial statements.

Interest income in fiscal 2023 has increased as compared to fiscal 2022 primarily due to a increase in yield on investments. We use foreign exchange forward and options contracts to hedge our exposure against movements in foreign exchange rates. Finance cost is on account of leases. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases.

4. Provision for tax

Effective tax rate is generally influenced by various factors, including differential tax rates, non-deductible expenses, exempt non-operating income, overseas taxes, benefits from SEZ units, tax reversals and provisions pertaining to prior periods primarily on account of adjudication of certain disputed matters, filing of tax return and completion of assessments, across various jurisdictions.

5. Segmental profitability

The Companys operations predominantly relate to providing end-to-end business solutions to enable clients to enhance performance of their business. Business segments of the Company are primarily enterprises in Financial Services and Insurance; enterprises in Manufacturing; enterprises in Retail, Consumer Packaged Goods and Logistics; enterprises in the Energy, Utilities, Resources and Services; enterprises in Communication, Telecom OEM and Media; enterprises in Hi-Tech; enterprises in Life Sciences and Healthcare; and all other segments. All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in public services. This is discussed in detail in Note 2.26 to the Consolidated financial statements in this Integrated Annual Report.

The following graph sets forth our revenue by geography:

Overall segment profitability has decreased primarily on account of decrease in utilization, increase in employee compensation and higher spend on third-party software and travel partially offset by benefit on account of cost optimization initiatives and currency fluctuations.

6. Liquidity

Our principal source of liquidity are cash and cash equivalents and cash flow that we generate from operations. We have no outstanding borrowings. We believe our working capital is sufficient for our requirements.

Our growth has been financed largely through cash generated from operations.

Our cash flows are robust. Our operating cash flows have decreased in fiscal 2023 as compared to fiscal 2022 mainly on account of outflow in working capital and higher income tax payments.

Consolidated cash and investments of Rs.31,286 crore comprise cash and cash equivalents, current and non-current investments excluding investments in unquoted equity and preference shares and others.

Capital Allocation Policy

Refer to the Boards report in this Integrated Annual Report for details on our Capital Allocation Policy reviewed and approved on July 12, 2019.

7. Related party transactions

These have been discussed in detail in Note 2.24 to the Standalone financial statements in this Integrated Annual Report.

8. Events occurring after Balance Sheet date

There were no significant events that occurred after the Balance Sheet date apart from the ones mentioned in Material changes and commitments affecting financial position between the end of the fiscal and date of the report in the Boards report in this Integrated Annual Report.

9. Key financial ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.

(,) The Company does not track DSO at a standalone level.

(2) Includes cash and cash equivalents and investments, excluding investments in unquoted equity, preference shares, compulsorily convertible debentures and others.

Ratios where there has been a significant change from fiscal 2022 to fiscal 2023

Revenue growth, operating margin, net profit margin as well as change in basic EPS have been explained in the relevant sections above.

Net profit has increased from Rs.22,110 crore to Rs.24,095 crore on a consolidated basis and from Rs.21,235 crore to Rs.23,268 crore on a standalone basis. Average net worth has not increased in line with increase in net profit on account of share buyback and dividend.

• Market capitalization to revenue ratio is computed as market capitalization as on March 31st of the respective years by revenue. The movement in this ratio is due to change in share price as at the end of March 2023 and March 2022 and due to buyback of equity shares.

• Price earnings ratio is computed as market share price as on March 31st of the respective years by earnings per share. The movement in this ratio is due to change in share price as at the end of March 2023 and March 2022.

• Cash and investments have decreased due to shareholder payouts on account of buyback and dividend in line with our Capital allocation policy.

V. Outlook, risks and concerns

This section lists forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these statements as a result of certain factors. Our outlook, risks and concerns are as follows:

I. Risks related to the markets in which we and our clients operate

• Spending on technology products and services by our clients and prospective clients fluctuates depending on many factors, including the economic, geo-political, monetary and fiscal policies and regulatory environment in the markets in which they operate.

• An economic slowdown or other factors may affect the economic health of the United States, the United Kingdom, the European Union (EU), Australia or those industries where our revenues are concentrated.

• Our clients may operate in sectors which are adversely impacted by climate change, which could consequently impact our business and reputation.

• Restrictions on visas, cost increases in obtaining such visas, increases in required minimum wage levels for visa dependent employees, inordinate delays in obtaining visas due to the pandemic and / or increased enforcement in different countries may affect our ability to compete for, and provide services to clients in work location countries, which could adversely affect our business, results of operations and financial condition.

• Our clients may be the subject of economic or other sanctions by governments and regulators in key geographies that we operate in, limiting our ability to grow these relationships, and risking increased penalties and exposure of our business to consequential sanctions.

• A large part of our revenues is dependent on a limited number of our clients, and the loss of any one of our major clients could significantly impact our business.

• Financial stability of our clients may be affected owing to several factors such as demand and supply challenges, currency fluctuations, regulatory sanctions, geo-political conflicts and other macroeconomic conditions which may adversely impact our ability to recover fees for the services rendered to them.

• Outbreaks of contagious diseases, viruses or pandemics, such as the COVID-19 pandemic, could disrupt our business, financial condition, and results of operations.

• We may not be able to provide end-to-end business solutions for our clients, which could lead to clients discontinuing their work with us, which in turn could harm our business.

• Intense competition in the market for technology services could affect our win rates and pricing, which could reduce our market share and decrease our revenues and profits.

• Our engagements with clients are typically singular in nature and do not necessarily provide for subsequent engagements.

II. Risks related to the investments we make for our growth

• Our business will suffer if we fail to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes in technology and in the industries on which we focus.

• We may be unable to recoup investment costs incurred in developing our software products and platforms.

• We may engage in acquisitions, strategic investments, strategic partnerships or alliances or other ventures that may or may not be successful.

• Goodwill that we carry on our Balance Sheet could give rise to significant impairment charges in the future.

III. Risks related to our cost structure

• Our expenses are difficult to predict and can vary significantly from period to period, which could cause fluctuations to our profitability.

• Any inability to manage our growth could disrupt our business, reduce our profitability and adversely impact our ability to implement our growth strategy.

• Wage pressures and the hiring of employees and subcontractors either outside or in India may prevent us from sustaining some of our competitive advantage and may reduce our profits.

• We are investing substantial cash in creating physical and technological infrastructure, and our profitability could be reduced if our business does not grow proportionately.

• Currency fluctuations and changes in interest rates may affect the results of our operations and yield on cash balances.

IV. Risks related to our employee workforce

• Our success depends largely upon our highly skilled technology professionals and our ability to hire, attract, motivate, retain and train these personnel.

• Our success depends in large part upon our Management team and key personnel and our ability to attract and retain them.

V. Risks related to our contractual obligations

• Our failure to complete fixed-price and fixed-timeframe contracts, or transaction-based pricing contracts, within budget and on time, may negatively affect our profitability.

• Our client contracts can typically be terminated without cause, which could negatively impact our revenues and profitability.

• Our client contracts are often conditional upon our performance, which, if unsatisfactory, could result in lower revenues than previously anticipated.

• Some of our long-term client contracts contain benchmarking provisions which, if triggered, could result in lower future revenues and profitability under the contract.

• Our work with governmental agencies may expose us to additional risks.

• Our inability to execute contracts and/or amendments with clients on a timely basis can impact our revenues and profits, causing fluctuations in our reported results.

VI. Risks related to our operations

• Our transition to a hybrid working model may expose us to various risks.

• Our reputation could be at risk and we may be liable to our clients or to regulators for damages caused by inadvertent disclosure of confidential information and sensitive data.

• Our reputation could be at risk and we may be liable to our clients for damages caused by cybersecurity incidents.

• Our reputation may be impacted, and we may incur financial liabilities if privacy breaches and incidents under General Data Protection Regulation (GDPR) adopted by the EU or other data privacy regulations across the globe are attributed to us or if we are not able to take necessary steps to report such breaches and incidents to regulators and data subjects, wherever applicable, within the stipulated time. Further, any claim from our clients for losses suffered by them due to privacy breaches caused by our employees may impact us financially and affect our reputation.

• We may be the subject of litigation which, if adversely determined, could harm our business and impact reputation, growth, profitability, and results of operations.

• Our insurance coverage may not be adequate to protect us against all potential losses to which we may be subject, which could adversely affect our business.

• The markets in which we operate are subject to the risk of earthquakes, floods, tsunamis, storms, pandemics and other natural and man-made disasters.

• The safety of our employees, assets and infrastructure may be affected by untoward incidents beyond our control, impacting business continuity or reputation.

• Terrorist attacks or a war could adversely affect our business, results of operations and financial condition.

• Climate change risks are increasingly manifesting in our business as strategic risks, physical risks and transitional (market and compliance) risks, which if not managed adequately, can affect our operations, reputation and profitability.

• Our reputation, access to capital and longer-term financial stability could be at risk if we are unable to meet our stated goals under our Environmental, Social and Governance (ESG) 2030 vision.

• Negative media coverage and public scrutiny may divert the time and attention of our Board and Management and adversely affect our reputation and the prices of our equity shares and American Depositary Shares (ADSs).

VII. Risks related to legislation and regulatory compliance

• We have experienced, and may continue to experience, a shortage in the supply of IT workers, which could accentuate due to enactment of restrictive legislations and regulations on immigration in certain geographies which would adversely affect our business.

• New and changing regulatory compliance, corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance.

• The intellectual property laws of India may not give sufficient protection to software and the related intellectual property rights to the same extent as those in the United States. We may be unsuccessful in protecting our intellectual property rights. We may also be subject to third-party claims of intellectual property infringement.

• Our net income would decrease if the Government of India reduces or withdraws tax benefits and other incentives it provides to us or when our tax holidays expire, reduce or terminate.

• In the event that the Government of India or the government of another country changes its tax policies in a manner that is adverse to us, our tax expense may materially increase, reducing our profitability.

• We operate in jurisdictions that impose transfer pricing and other tax-related regulations on us, and any failure to comply could adversely affect our profitability.

• Changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

• Attempts to fully address concerns of activist shareholders may divert the time and attention of our Management and Board of Directors and may impact the prices of our equity shares and ADSs.

• Our international expansion plans subject us to risks inherent to doing business internationally.

• Our ability to acquire companies organized outside India may depend on the approval of the RBI and the Government of India and failure to obtain this approval could negatively impact our business.

• Indian laws limit our ability to raise capital outside India and may limit the ability of others to acquire us, which could prevent us from operating our business or entering into a transaction that is in the best interests of our shareholders.

For more details on risk factors listed above and risks related to ADSs, refer to our 20-F filing available at https://www.infosys. com/investors/reports-filings/annual-report/annual-reports.html.

VI. Internal control systems and their adequacy

The CEO and CFO certification provided in the CEO and CFO Certification section of the Integrated Annual Report discusses the adequacy of our internal control systems and procedures.

VII. Material developments in human resources / industrial relations, including number of people employed

Our culture and reputation as a leader in consulting, technology, outsourcing and next-generation digital services enable us to attract and retain some of the best talent.

Human resources management

At Infosys, we believe in amplifying human potential and creating the next opportunity for people, businesses, and communities. For over four decades, we have been a people company that understands the immense potential of technology. As we look to the future, we recognize that the world is changing, and we need to acknowledge our extraordinary potential to be a force for good. Our people are at the center of this vision, and it is our constant endeavor to make Infosys a place where people can be their best selves.

Our purpose is to inspire our people with meaningful work and passionate teams, enabling them to find purpose and make an indelible impact. We believe that talent transformation is an important focus area, and it begins with sensing employee needs and responding with a value proposition that delivers meaning, purpose, and value for them. We are committed to building synergy between how we differentiate ourselves as a company and deliver on the expectations of our employees.

Return to office and hybrid model of work

It has been over two years since we at Infosys transitioned to hybrid work, prioritizing safety and flexibility. This shift has enabled us to be more responsive to customer demands, more resilient to disruptions, and more productive in our work, characterized by empathy and flexibility.

Today, our offices have integrated technology into their design to deliver an experience far beyond the traditional way of working. At Infosys, our objective is to build and retain social capital among employees to enhance collaboration and innovation in a hybrid workplace. In addition, working from the office in a hybrid model promotes ideation and self-learning, which fosters self-development. Our approach to returning to work has been balanced, with a focus on flexibility, employee safety and wellbeing, and client commitments.

Distinct-phased approach adopted in transitioning to hybrid work culture :

We adopted a multi-pronged approach to enable the transformational hybrid work model - under three the pillars of work, workspace and workforce. The remote-to-hybrid transition was facilitated centrally as well as at the individual unit and Development Center (DC) levels. Transition was enabled at the geo level aligning to the regional norms and policies of individual countries.

As we progress on a phased return to office, encouraging employees to work on a hybrid model, we are focused on the following aspects:

Communication and change management, DC operations and logistics, employee support measures, employee DC transfer and satellite offices, and client requirements.

Supporting employees in transition to hybrid work:

Infosys has taken a number of steps to support the transition to a hybrid work model. These include surveying employees to understand their preferences, developing a location-level microsite, providing accommodation support, relaxing COVID restrictions, creating user-friendly dashboards to track the adoption of the hybrid work model, conducting in-person freshers training , lateral induction, developing InfyMe Hoteling application, conducting employee well-being programs, opening six satellite offices, establishing a 24*7 helpdesk, launching a Talent Anywhere model, enhancing the employee experience, customizing the hybrid model to provide more flexibility to employees, aligning systems, processes, and policies, supporting employees and families for the booster dose vaccination, complying with the local laws and regulations, establishing effective employee communication and collaboration, and enabling managers and leaders across locations to successfully manage hybrid work.

Initiatives to enhance our Employee Value Proposition

Our Employee Value Proposition aims to inspire and enable our employees to find purpose and make an indelible impact through meaningful work and passionate teams; ensure that our employees continuously learn and grow in their careers and shape our collective future; and create opportunities for every employee to navigate further, powered by our culture and partnered by other employees with shared aspirations.

• Lex: Our in-house learning platform continues to be a significant driver of talent development at Infosys. With remote work firmly established, Lex has evolved to engage employees through hybrid learning models.

• Internal Marketplace: With reskilling gaining momentum, more employees are acquiring new skills and capabilities. Internal Marketplace serves as a vehicle to match employees with opportunities to provide job rotation in work areas of their choice and capability.

• Bridge: helps employees to develop new skills and shift to new careers that typically require different qualifications.

• Accelerate: This helps employees gain exposure to various roles and practical experience with new skills through involvement in short-term internal projects. Powered by an intelligent platform, it allows job creators to publish independent job modules (with client approvals) that their job-seeking colleagues can volunteer to execute. Both job creators and seekers are incentivized for work well done.

• Learning and Career: This is a one-stop-portal for all learning and career-related needs of employees with smart integration with other Infosys internal systems like Lex to guide employees on their learning journeys.

• Performance management: The framework focuses on deep engagement of key talent through regular conversations between managers and teams through checkins facilitated by a contemporary tool. It also strengthens focus on development through career conversations and Integrated Development Plans (IDPs).

• Faster and predictable careers: We embarked on a journey to enable business with a view on employees eligible for promotion / progression in the next few quarters. This helped business in engaging with key talent well ahead in their career journey and ensured that they experience accelerated growth within the organization.

• Digital Specialist: This has emerged as an aspirational track for high performers who want to work with niche technologies in digital transformation projects. The career track enables employees to see capability-driven growth that is not dependent on tenure and augments a talent pool that is continuously learning and generating value for us and our clients.

• Digital Quotient (DQ): This helps employees keep track of their digital skills. Those with a higher Digital Quotient have greater access to new opportunities and interesting projects.

• Platinum Club: A niche experience created for our top performers, it is an exclusive group of highly skilled and high performing individuals. The programs structure ensures diverse career experiences for those who qualify.

• Aspiration management: iAIM was launched as the new framework for capturing employee aspirations fiscal 2023.

The framework is centred around four key principles of Connect, Converse, Converge and Close.

• Manager and leadership development: through key structured interventions as part of our Global Delivery Talent effectiveness program has contributed tremendously to the key learning and enablement of our leaders in Global Delivery. A basket of offerings has been designed that brings together external sessions, internal leader facetime, mentoring, cross-skilling, best sharing of practices and collaboration across our various business segments and units.

• SALESFLEX: The capability of our people and systems, which is the backbone of our organization, has been completely re-imagined and revamped through our multi-pronged People Transformation Charter named SALESFLEX. Some of the key initiatives under SALESFLEX are HORIZON, a sales-focused capability building intervention designed exclusively for high-potential sales leaders, SYNERGY, a four- week onboarding program for new sales employees; I AM INFINITE, an exclusive, leadership initiative in partnership with Stanford Business School and Cambridge University providing a curated and customized experiential learning for the participants; ASSURED, a sales leadership program in partnership with Stanford is an exclusive, leadership initiative for leaders to strengthen their financial acumen; INSYNC VIRTUAL COHORT, a three-week training module launched for sales leaders, in partnership with ETA, that covers instructor-led webinars, self-learning courses and expert-led webinars; SKILLUP SALES CERTIFICATIONS, customized sales certifications from Cornell University, customized to enable our salesforce and prepare them for this next spurt of growth, and EMPOWER, INCLUSION HABIT JOURNEY, an external-led bespoke program with immersive experience for leaders driving the change.

Employee experience

We strive to create a world-class employee experience by designing consistent and best-in-class policies, processes, programs, and systems, by focusing on creating Experience by Design. We collect employee feedback to improve our offerings and create positive experiences. We are committed to creating memorable moments that matter and using technology to drive the right behavior among managers and teams. A few initiatives in fiscal 2023:

• Digitization: We have strengthened our people practices by using technology and automation to improve workforce efficiency, engagement, transformation, and innovation

• People analytics: Analytics played a critical role in planning interventions during the last financial year. Advanced modeling tools, along with employee Pulse analytics and manager dashboards, helped us improve our talent strategy and retention. We also leveraged analytics effectively in the move to hybrid work.

• InTap: is our smart sourcing and interview management application to attract and manage candidates and provide best-in-class experience along with an efficient hiring process.

• Launchpad: We expanded the coverage of Launchpad to our entities and across the globe. This mobile app-based, selfservice platform provides new hires a guided flow, which is digital, remote and seamless, during the onboarding process.

• Infosys Meridian: enables a remote-first workplace that mirrors the offline experience with its event management platform and breakout sessions capabilities.

• InfyMe: We continued to enrich our InfyMe app with more services that enables teams to operate, connect and collaborate easily and it is particularly effective in the hybrid working model.

• iEngage: We use iEngage to inform, inspire, and build a happier workplace. It helps us drive vertical engagement between employee and unit leadership. Managers can use this to schedule engagement events, invite employees and track actions identified during such events.

• Intelligent automation: We are making our systems smarter with:

1. Nudges to managers and employees, which are driving the right behavior and guiding managers to take the right decisions in matters like role change, retention etc.

2. Chatbots that are transforming query management, and

3. Robotic Process Automation, which is being leveraged to reduce manual work of our teams.

• Employee discount programs: Infosys employee-centric initiatives, InfyGold+, offer exclusive discounts and deals on various products and services, providing a valuable perk to our employees and contributing to the Companys efforts to attract and retain top talent.

• Infosys RISE (Real. Instant. Specific. Excite): underlines the importance of a single platform to meet all the companys reward and recognition needs. It allows managers to tailor incentives that align with their team members unique skills and personal circumstances. Accolades are recorded over time to provide a comprehensive view of an employees rewards while showcasing genuinely transformational progress in recognition and value.

• Infosys Stripes: A one-stop, gamified, point-based system that tracks and rewards employee achievements across functions and the organization through Infy Coins, Infy Points, badges and certificates. It allows employees to see their accomplishments, redeem their rewards and share their achievements with colleagues.

• Early Career and Rewards (ECR): This program for campus hires at Infosys aims to provide visibility on career and pay growth in the Company over three years since joining. The program allows employees to see a milestone-based career progression as well as pay increments during the program duration and then move to a career stream of their choice.

• Sales Excellence and Stellar Awards: Sales Excellence Awards provides a platform to recognize and reward the best sales talent. Stellar Awards was instituted as a quarterly recognition platform across each unit that will recognize individuals who have gone the extra mile and made significant contributions during the quarter.

• Awards for Excellence (AFE): The AFE remains our largest rewards and recognition platform for employees. This year marked its 28th anniversary, and we received about 1,000 nominations across geographies in over 20 categories.

• Employee engagement: We have a robust 5C (Connect, Collaborate, Celebrate, Care, Culture) employee engagement framework that drives us to create best-in-class employee experiences and supports our people to stay motivated and always deliver their best.

• Manager Code: We have designed the Infosys manager enablement framework to equip our leaders with the capabilities to help their teams build technical, business and people skills along with a digital mindset to accelerate their development journeys. Managers also have a behaviour code that encourages them to adhere to seven fundamental principles that shape a good manager at Infosys.

• Infosys Great Manager Program: Our flagship manager enablement program, The Infosys Great Manager Program guides managers through a structured learning path to build and strengthen four key competencies to build future readiness - business acumen, digital mindset, leading people and operational excellence. The program is self-paced and is entirely in the e-learning mode to achieve a wider and broader reach among managers.

• Employee well-being: At Infosys, over the years, employee well-being has developed into a more evolved and substantial model with the help of our program HALE.

(Health Assessment and Lifestyle Enrichment). Our wellness programs stand strong on the four pillars of physical wellbeing, social well-being, emotional well-being, and safety.

• Power Teams include short and specific team intervention modules with project as the nucleus. Apart from being an excellent way to engage with employees, Power Teams aims to leverage the strengths of everyone to maximize project output.

• Culture and values: The organization culture, driven by our core values (C-LIFE), is one of the main levers that drive our business. At Infosys, we work to build and sustain an inclusive, non-discriminatory and equal opportunity workplace. Our ESG ambition aims to strengthening diversity, equity and inclusion in the Company and achieving 45% representation for women in our workforce by 2030. Our workplace policies and investments focus on learning and development, and specific interventions for women to navigating their personal and professional lives.

- Orbit Next: A year-long program for our women managers in India. It aims at building capabilities through reskilling and honing leadership skills to prepare them for next-level roles.

- Restart with Infosys: A unique intervention we relaunched to hire women after career breaks. The program offers flexible working formats, training, skill building, and intense mentoring to give women the support and confidence they need to return to their careers.

- Women in Tech (TechCohere): This year, over 50 sessions and panel discussions were conducted by women technologists. 11 white papers and 37 POVs authored by women technologists were published.

- Employee Resource Groups (ERGs): To strengthen inclusion and belonging, we now have more than 12,000 employees in various ERGs.

Awards:

• Infosys was recognized for the second consecutive year for Excellence in HR Analytics at SHRM HR Excellence Awards

• HALE won the Best Health and Wellness Program 2023 by India Today Group

• Iam the Future Women in Leadership Program by the Infosys Leadership Institute (ILI) won the Women Icons Asia D&I Champions Award in the category of Advancement of Women in 2022. This award celebrates and honors the accomplishments of the organization that has programs and initiatives to advance women in their workplace.

• IamtheFuture Women in Leadership Program by ILI won the Brandon Hall Gold Award for DEI in 2022. This was awarded to the program in recognition of being an excellent program in advancing development of women in leadership roles.

• ILI won the Chief Learning Organizations Learning Elite Silver Organization Award in 2022, with one of the key contributors of this recognition being the impact of women in leadership through the IamtheFuture program.

NAM awards and recognition:

• Diversity Inc. Top 50 Companies for Diversity placed Infosys as "Noteworthy" Company for Diversity in 2021 and 2022.

• Infosys scored 100% on the Corporate Equality Index Score (CEI) in 2022 for LGBTQ+ inclusion - up from 95% in 2021.

Resolution hubs

Infosys is committed to providing a safe and positive work environment. In keeping with this philosophy, the organization envisages an open-door policy. Employees also have access to several forums where they can highlight matters or concerns faced at the workplace. This is achieved through a well-established and robust grievance resolution mechanism comprising resolution hubs. Resolution hubs adhere to the principles of natural justice, confidentiality, sensitivity, nonretaliation and fairness, while addressing concerns. The concerns are handled with a lot of sensitivity yet ensuring timely action and closure. A detailed investigation process ensures fairness for all involved, with an opportunity to present facts and any material evidence.

HEAR

Infosys has a robust grievance redressal forum called HEAR (Hearing Employees And Resolving) fostering healthy employee relations and a positive work environment by giving our employees a neutral platform to be heard and in building the speak up culture. An employee can raise a complaint on the HEAR webapp or InfyMe mobile application or write to HEAR@infosys.com. HEAR addresses employee concerns in a structured and layered manner with appellate forums for any appeals. All employees have access to the grievance redressal process. We also conduct data analytics and studies to arrive at the best possible preventive mechanisms. A summary and the trends of workplace grievances are presented to the Audit Committee of the Board every quarter.

ASHI

The Companys assurance to its employees towards providing a harassment-free workplace is reflected in our key initiative, ASHI (Anti-Sexual Harassment Initiative). As per the Act in India, the Company has constituted Internal Committees (IC) in all the development centers of the Company in India, for redressal of sexual harassment matters reported by women employees. We also have a strong governance mechanism in the form of GRB (Grievance Redressal Body), to define, interpret and implement the ASHI initiative and is accountable for administering the policy centrally. GRB consists of external members, internal senior members, and the Investigative Council. Here, we follow a gender-neutral approach in redressal of all such complaints. Upon receiving a sexual harassment complaint, an immediate acknowledgment is sent to the complainant and the complainant is contacted within 24 hours, before it is taken up for a formal redressal process in line with the POSH Act and the Companys policy on anti-harassment. We have stringent internal timelines of 45 days for closure of such concerns. The reports on ASHI grievances can be shared to GRB@infosys.com and India employees can log reports on the ASHI webapp or InfyMe mobile application. Complaints received are classified and appropriate disciplinary action is taken ranging from a warning to termination of employment, as the case may be.

Extending the initiative to contract staff

Our commitment to a positive and safe working environment is not restricted only to our employees, but also third parties, who provide services in our campuses. We conduct refresher sessions for such third-party employees to reinforce the message. These sessions are covered in nine vernacular languages currently. Emergency / safety cards with important contact numbers are also handed over to all Infosys employees and employees of such third parties.

Whistleblower Policy

We framed the Whistleblower Policy to enable stakeholders to raise concerns regarding any potential violations, involving financial irregularities / breach of Infosys policies or applicable laws - easily and without any fear of retaliation.

The complaints received under the ambit of this policy are reviewed independently, while ensuring anonymity and confidentiality of the reporting.

Human rights

Infosys is a signatory to the UNGC and supports the protection and elevation of human rights in accordance with the UN Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the International Labor Organizations Declaration on Fundamental Principles and Rights at Work (the ILO Declaration). Our Human Rights Statement provides a broad framework to ensure that all employees are treated with respect and dignity and ensure that we do not condone human rights violations or abuses. Our Supplier Code of Conduct helps us manage and address this important aspect of sustainable business in our supply chains.

Our salient human rights issues are:

1. Workplace diversity: A key tenet of the Code of Conduct and Ethics is respecting each other through creating an equal opportunity workplace, ensuring equal pay for equal work, free of discrimination and harassment.

2. Positive work environment (Anti discrimination & harassment): The organization envisages an open-door policy. This is achieved through a well-established and robust grievance resolution mechanism comprising resolution hubs.

3. Freedom of association: We respect the rights of our employees to associate or not associate through internal employee resource groups and seek representation, to bargain or not bargain collectively, in accordance with local laws.

4. Health and safety: As a prerequisite for conducting business responsibly. Ozone, Infosys Health, Safety and Environmental Management System (HSEMS), has evolved into a robust management system guided by requirements from multiple stakeholders, including clients, internal customers, vendor partners, law enforcement and regulatory bodies, and the communities in which we operate.

5. Data privacy: With the Data Privacy Office (DPO) directly reporting to the Board, Infosys ensures there is no conflict of interest in the DPO playing an effective role to ensure privacy of our employees, candidates, visitors, customers, and other stakeholders, according to applicable data privacy regulations across the globe, including but not limited to GDPR, CCPA, LGPD, both as a data controller and processor.

6. Sustainable development: In 2020, we launched our ESG Vision 2030 to shape and share solutions that serve the development of businesses and communities.

Recruitment

As of March 31, 2023, the Group employed 3,43,234 employees, of which 3,24,816 were professionals involved in service delivery to the clients, including trainees.

We have built our global talent pool by recruiting freshers from premier universities, colleges and institutes globally. We constantly attract and hire developers, architects, technical leaders and project managers in areas of digital and cloud, and transformation. We have built robust relationships with top institutions in the country and recruit students who have consistently shown high levels of achievement. We have continued upscaling our InfyTQ platform, which brings the best of our Mysuru training to the hands of the learners across the country. This has sustained to amplify the learning experience of students who also undergo assessments to get the coveted Infosys Certification. We also have been globally recognized for our innovation in recruitment for our HackWithInfy, an online coding contest, which also helps us attract the best of coders into our organization.

We also recruit students from campuses outside India, including but not limited to the US, UK, Australia, Singapore, Japan, Germany, Canada, Mexico, Mauritius and China. We rely on a rigorous selection process, involving evaluation of mathematical and logical aptitude, coding ability and in-depth interviews, to identify the best applicants. This selection process is continually assessed and refined based upon multiple factors, including performance-tracking of past recruits. We have continued to conduct interviews virtually across the globe and the team also enhanced the in-house applicant tracking system, which is currently being used for hiring in India and China.

During fiscal 2023, we received 53,42,299 employment applications, interviewed 3,89,183 applicants and extended offers of employment to 1,14,374 applicants. These statistics do not include our subsidiaries. We added 29,219 new employees, net of attrition, during fiscal 2023.

Education, training and assessment (ETA)

Infosys continues to make investments in developing human potential for the organization, and the world at large. The Foundation Training Program, anchored across India, Mexico, the US, the UK, Canada, Germany, Australia, Singapore, and Japan, continues to enable newly onboarded entry-level hires to transform into corporate professionals. Comprising nearly 50 technology streams, the curriculum has kept pace with the dynamic business requirements and the preferred pedagogical approach of the current generation of talent. The curriculum continues to be current as courses on generative AI and prompt engineering have been introduced into the foundation program to introduce the freshers to the latest technologies. During the COVID pandemic, the foundation training was conducted virtually, with trainings being conducted in online mode. However, keeping pace with the times, the training is back to inperson classroom training.

Our Continuous Education Program is aimed at reskilling / upskilling our existing employees with the twin objectives of increasing fulfillment of skilled talents in client projects and enriching the expertise of our global workforce in next- generation digital technologies and methodologies. We provide online self-learning, instructor-led virtual training opportunities along with in-person classroom training opportunities to our employees. We offer Bridge programs that help employees with training and internship opportunities to switch to a new career field.

Lex, our in-house learning platform, offers over 14,800 curated courses, which includes over 10,000+ courses procured from vendor partners both for enterprise consumption and niche communities who have specific content requirements. About 50,000 employees use Lex on weekdays with an average learning time of about 35-40 minutes, and 12,000 employees use Lex on weekends with an average learning time of about 45-50 minutes.

The learning efforts of our employees helped us get laudable external accolades from Brandon Hall, ATD Best, Training Apex and NASSCOM who recognized Education, Training and Assessment (ETA) as the Cloud Innovator of the Year.

Infosys Wingspan, our configurable talent transformation platform for clients, is being used by several global organizations. Infosys Wingspan has also been leveraged for the ESG initiative, Infosys Springboard. In alignment with ESG Vision 2030, Infosys Springboard aims to empower over 10 million people with digital and life skills by 2025. This program is led by a dedicated team of experts collaborating globally with curriculum partners, non-profits, and a global network of leading educational institutions. About 12,000+ learning courses are available and about 5.3 million learners across India have registered on

Infosys Springboard. The platform is available in English and all major Indian regional languages, including Urdu and Sanskrit. The Infosys Springboard team is working with state education departments in 10 states, one of which has leveraged this to enable more than one lakh teachers in the regional language.

VIII. Other details

1. Quality

The Quality function at Infosys, in line with the organizations vision and strategy of Navigate the Next, has three strategic imperatives:

• Differentiate Infosys services through superior performance and quality.

• Optimize Infosys client projects as well as internal functions for greater efficiency and agility.

• De-risk Infosys operations by ensuring delivery excellence, compliance and sustainability.

Our Quality team has been driving the organization-wide agile transformation to scale our capabilities for agile digital in tune with the Company strategy, and we have been rated by HfS as No.1 among all agile service providers.

Today, clients are striving to achieve business value at speed from their digital transformations. A key requirement for this is to adopt a product-centric approach, capabilities and mindset. Last year, we launched our Product Centric Value Delivery approach to help clients do exactly that, through a holistic transformation in the ways of working. The Quality team also consulted with several large clients and helped them drive their agile and DevOps-driven transformation, shift from project to product way of working and overall workplace transformation. drive their agile, DevOps, project to product ways of working shift, and overall workplace transformation.

Quality has been leading the way in driving lean and automation in the organization to enhance productivity and quality, which has resulted in large optimization in projects. It deployed robust frameworks, tools and platforms across service lines in a collaborative manner to drive hyper-productivity and engineering excellence. Last year, the Quality team created a holistic automation maturity model to help navigate projects towards increasing automation levels, from point tools towards cognitive and autonomous operations.

The Quality team worked with cross-functional teams to drive enterprise agility by simplifying many enterprise processes, thus reducing cost, improving agility in operations, and enhancing employee experience.

Quality continues to drive best practices and sustenance through structured audits and assessment frameworks, focusing on de-risking the organization, with augmented coverage of services, centers and subsidiaries. We continue to comply with international management system standards and models, viz., ISO 9001, ISO 27001, ISO 14001, ISO 45001, ISO 22 301, ISO 20000, AS 9100 and ISO 27701.

Infosys is the first IT company to comply with, and get assessed at the enterprise level on SSAE18-SOC 3 report attestation. Infosys continued to comply with and get assessed at the enterprise level for SSAE 18 SOC 2 type II & ISAE 3402 / SSAE 18 SOC 1 type II, including cloud platforms, and has received an independent auditors assurance compliance report.

2. Infosys Center for Emerging Technology Solutions (iCETS)

iCETS is the emerging technology solution incubation partner for Infosys clients and units. It provides next-generation platforms and innovation-as-a-service to help future-proof enterprise businesses. The aim is to envision and evolve New Emerging eXploratory Technology (NEXT) solutions for our clients, both organically (driving innovation bottom-up across Infosys), and inorganically, via the IIN (partnering with hyperscalers, startups, universities, and large product players). iCETS incubates emerging technologies under different Centers of Excellence (CoEs), such as Generative AI, Privacy & Accessibility, Cybersecurity, Software Engineering, Data Management, Quantum Computing, Metaverse, Hyperscalers and so on.

These centers focus on building capabilities, developing thought leadership, and offering early client validation via Living Labs, IP development, including building of platforms, driving a significant part of innovation for our clients and monetization for Infosys.

One of the key CoEs Infosys unveiled in the past few months is the generative AI center. Generative AI is an emerging technology space that is likely to transform wide sections of business and technology applications. Given the significant impact it is expected to have, Infosys has been incubating capabilities and IP around Generative Pre-trained Transformers (GPTs). In this context, we are collaborating with the hyperscalers like Google, Microsoft, and AWS, as well as working with open- source products, to experiment on transformations across code, text, images, videos, voice, and avatars. We have developed generative AI workbenches, sandboxes and applications across multiple domains. iCETS is also helping drive Infosys to become an AI-first organization, with the adoption of generative AI capabilities to transform the Infosys technology landscape.

We plan to achieve this by building small transformer models, trained on Infosys data, to drive contextual solutions. iCETS is leveraging its learning to ensure that the clients benefit from it while creating their generative AI strategy and incubation plans. Among numerous client experimentations, we are working with leading global banks, fashion retailers, and insurance providers, among others.

iCETS enables enterprises to realize their Live Enterprise vision by developing and deploying next-generation offerings, such as LEAP, Cortex, DigiTran, iEDPS, etc. iCETS is also incubating several domain platforms like the Energy-as-a-Service (EaaS) in collaboration with our energy unit. iCETS platforms are designed to be Platform-as-a-Service (PaaS) offerings with IP / patent- led differentiation and now have AI-first capabilities built in to differentiated Infosys services while accelerating innovations for Infosys clients.

Infosys Living Labs brings the entire innovation ecosystem together to help clients meet their innovation-at-scale needs on multiple dimensions. Here, iCETS proactively expands the services and capabilities to meet growing and dynamic innovation needs of clients with the aid of joint innovation centers, experience centers, IIN, industry living labs, complexity studio, and more. We also monitor and publish Horizon 3 technologies and business trends and assist our clients to foresee disruptions with Listening-Post-as-a-Service (LPaaS).

iCETS evolving partner ecosystem, including startups, universities and hyperscalers, plays a critical role in the increased velocity of ideas and solutions for their clients. We now approach clients with joint living labs, for example, AWS-Infosys living labs and Google-Infosys living labs.

To bring outside-in innovation to clients, the Infosys Innovation Network (IIN) is constantly building well-orchestrated partnerships with a curated list of startups, universities, and hyperscalers. These partnerships strive to bring the best of emerging-technology innovations from across the globe to Infosys clients. The IIN program aims to create lighthouse wins for clients to experiment and implement the art of the possible leveraging our global innovation ecosystem. Infosys de-risks client adoption of technology innovations and solutions by carefully curating these startups, finding the right fit and implementing early pilots. Infosys has also established partnerships with key client Corporate Venture Capital (CVC) firms to bring their portfolio startups onto the Infosys network. Over the past 24 months, we have engaged with numerous startups, universities and hyperscalers across geographies such as the US, Finland, Israel, and India, collaborating in spaces like AI, fintech, cloud, cybersecurity, InsurTech, HealthTech, and more, and in the process, positively impacting over 400 client opportunities.

3. Branding

Brand Infosys is a key intangible asset for the Company. It is nurtured by over 3,40,000 of our purpose-driven people seeking to amplify human potential and create the next opportunity for people, businesses, and communities. The brand serves to position Infosys as the next-generation digital services partner of choice for enterprises navigating their transformation powered by the cloud. It is built around the premise that the experience we have gained, for four decades, in managing the systems and workings of global enterprises enables us uniquely to be navigators for our clients. We do it by enabling them with an AI-powered core. We also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Our always-on learning foundation drives their continuous improvement through building and transferring digital skills, expertise and ideas from our innovation ecosystem. Our localization investments in talent and digital centers help accelerate the business transformation agenda. For over four decades, we have been deeply committed to being a well- governed, environmentally sustainable partner for our clients where diverse talent, in an inclusive workplace, helps them navigate their next.

Our marketing reach extends globally through digital-first multichannel campaigns. As the digital innovation partner for the Australian Open, Roland-Garros, ATP and The International Tennis Hall of Fame, we help showcase how brand Infosys is reimagining the tennis ecosystem for a billion fans globally, leveraging data, insights and digital experiences. We are also the official digital innovation partner of Madison Square Garden (MSG) properties including the New York Knicks, New York Rangers and the MSG Arena. Our strategic partnerships with Dow Jones, Bloomberg Media, The Economist Group and Financial Times further accentuate this position. We participate in premier business and industry events around the world, while also organizing our own signature events and CXO roundtables. Confluence, our flagship client event series across the US, Europe and APAC, is rated highly by our clients and industry partners.

4. Client base

5. Infosys Leadership Institute

In fiscal 2023, the Infosys Leadership Institute (ILI) was recognized with five prestigious international awards, a testament to the impact of leadership programs on the strategic imperatives of the organization. These include the Chief Learning Officer Learning Elite award and Brandon Hall awards for overall leadership development strategy and execution, IamtheFuture women in leadership program, and the Culture Transformation program. The Constellation Program continued its focus on developing high-potential leaders towards strengthening the organizational successor pool. 13 strategic projects and a 10-month leadership certification program with Harvard Business School (HBS) were the cornerstones of development of Constellation leaders.

Since its inception in 2021, nearly 450 women leaders as part of the IamtheFuture program have successfully completed various phases of their learning journey towards earning the Infosys Leadership Institute-Stanford GSB certification. The year saw the second cohort of women leaders globally completing the program while the first cohort completed the advanced version of the program. IamtheFuture continues to drive individual and organization impact through a combination of pertinent development-and-leadership-driven talent actions for women leaders. ILI also continued its focus on bringing contemporary and impactful programs for all the senior leaders in the organization. This included a highly-appreciated program on financial leadership with Stanford GSB, which was contextualized by senior finance leaders at Infosys. There was a significant increase in the participation, with 7,000+ leadership learning days across 125 programs. About 75% of all senior leaders participated in at least one Ivy League program, with more than 95% completing at least one leadership program during the year.

6. Infosys Knowledge Institute

The Infosys Knowledge Institute (IKI) drives new engagement with Infosys prospects and clients by harnessing the intellectual capital of our employees, partners, and academics to develop and share a deeper understanding of the business impact of technology and market trends. Combining surveys, quantitative analysis, expert interviews, client webinars and events, IKI creates perspectives, benchmarks, and diagnostic tools on trends across industries and functions. Current research themes include sustainability, artificial intelligence, data analytics, cloud, digital commerce, agile methods, metaverse and cybersecurity. Major works include the Radar maturity assessments, TechCompass series, Practical Sustainability and Live Enterprise books and the Tech Navigator for future trends. IKI also publishes regularly in leading business and technology media, and conducts roundtables and seminars. For more information, go to https://infosys.com/iki.

7. ESG vision and ambitions

In October 2020, we launched our ESG Vision 2030 to "shape and share solutions that serve the development of businesses and communities". Today, our 2030 vision reflects how ESG will continue to be integral to Infosys sustainable business performance. We will continue to be carbon-neutral across Scope 1,2 and 3 emissions every year. We will expand reskilling initiatives to empower more than 10 million people with digital skills and more than 80 million with Tech for Good programs in e-governance, healthcare and education. We commit to nurturing greater inclusivity and strengthening our gender- diverse workforce with at least 45% women employees.

We will grow our stakeholder focus and bring the interests of our stakeholders to the fore through an empowered, diverse and inclusive Board. We will further strengthen data privacy and information security standards across global operations.

For more information about our ESG initiatives, read our ESG Vision 2030 document at https://www.infosys.com/content/ dam/infosys-web/en/about/corporate-responsibility/esg- vision-2030/index.html.