MindTree

Dear Shareholder,
 
 It gives me pleasure to present to you the performance report of
 your company for the period 2008-09.
 
 Financial year 2008-09 will go down in economic history as the
 year of the first truly global economic crisis. Industries
 across a wide spectrum were severely impacted and the IT
 industry was no exception.
 
 It is heartening that in such a challenging year, MindTree grew
 its revenue by 21% in USD terms and 37% in Rupee terms, amongst
 the highest in the Indian ITindustry. MindTree posted a record
 EBITDA of 26%. However, our Profit After Tax (PAT) fell to 2.9%
 largely due to the mark-to-market provision on our hedges.
 This provision is only a book provision and not a cash loss.
 This provision is expected to reverse itself over the life of
 the contracts and hence we expect our future profitability to be
 better. This provision was required as a result of the change in
 the accounting rules on 29 March 2008. Further, our hedges were
 entered into during 2007-08 when the Rupee was on an
 appreciating trend and since the Rupee depreciated sharply in
 2008-09, we had to make these provisions.
 
 On May 2, 2008, we announced our intention to acquire Aztecsoft
 Ltd and by August 1, 2008 we had become the beneficial owners of
 about 80% of the shareholding. We have been working as virtually
 one company since then. The fact that Aztecsoft was aligned to
 MindTrees values, culture and high standards of corporate
 governance made the integration process so much easier. MindTree
 now has a talent pool of more than 2,000 MindTree Minds purely
 focused on testing-related services, making us among the
 strongest independent testing service providers in India. We now
 also offer our customers Product Engineering Services that cover
 the complete range from the chip to cloud computing.
 
 MindTree continued to be recognized globally, winning awards and
 top rankings in corporate governance, people practices and
 knowledge management. MindTree was the winner of the National
 Award for Excellence in Corporate Governance for 2007-08.
 MindTree was ranked No. 1 among the winners of the Indian Most
 Admired Knowledge Enterprises (MAKE) award for the second
 consecutive year in 2008. We were also the winner of the Asian
 Most Admired Knowledge Enterprise (MAKE) award for 2008.
 
 MindTree was ranked 45th in the Leaders category of 2009 Global
 Outsourcing 100 by the International Association of Outsourcing
 Professionals. The Great Places to Work Institute, in
 collaboration with The Economic Times, selected MindTree to the
 list of Great Places to Work in India for 2008, and specially
 recognized MindTree as the Best Workplace for Women in India.
 MindTree became the first Indian company to win the Texas
 Instruments (Tl) 2008 Supplier Excellence Award. MindTree also
 won the SAP ACE Award for Customer Excellence 2008.
 
 With effect from April 1, 2009, your company has implemented
 major organization restructuring, entering new market segments,
 setting up new business units and new roles for many leaders.
 MindTree now has 6 businesses IT Services, Independent Testing,
 Infrastructure Management and Technical Support (IMTS),
 Knowledge Services and Product Engineering, which comprises of
 R&D Services and Outsourced Product Development. Krishnakumar
 Natarajan (KK) has become CEO & MD and will be responsible for
 MindTrees day-to-day operations and will look after the
 businesses and enabling functions. I have assumed the role of
 Executive Chairman and will continue to be the Chairman of the
 Board. In my role, I will focus on strategic initiatives and
 long term development.
 
 Though our original Mission statement served us well for a
 decade, we chose to rearticulate it to make it more
 inspirational, impactful and easier to remember. MindTrees new
 Mission is shown below:
 
 Our Mission
 
 Successful Customers
 Happy People
 Innovative Solutions
 
 The new Mission statement reinforces that the two most important
 stakeholders for our success are our customers and our people.
 There is also a correlation between all three elements as we
 believe that happy people lead to happy customers and also
 innovative solutions are a means of contributing to the success
 of our customers. We also believe that if we ensure the success
 of our customers and keep our people happy, all our stakeholders
 will benefit from the value created.
 
 We have also articulated a fresh 5-year Vision for MindTree.
 
 Our 5-year Vision (FY 2014)
 
 -We will achieve US  billion in sales
 
 -We will be among the Global Top 20 in the IT services business
 in profitability, as measured by PAT to Sales and RoCE
 
 -We will be among Top 20 most admired companies globally in the
 IT Services business, known for our customer satisfaction,
 people practices, knowledge management and corporate governance
 
 -We will touch and improve the lives of the differently-abled,
 through leadership in Assistive Technologies
 
 Our Sales and Profitability growth targets are ambitious. Very
 few companies succeed in growing significantly ahead of industry
 in both revenue and profitability, which is what we are aspiring
 to achieve. The third Vision statement is about global
 admiration and in the new articulation we have defined the
 characteristics which earn admiration in our industry. Many of
 these are already key strengths of MindTree. We now have to
 raise these to the next level.
 
 The fourth and last Vision statement talks about our Social
 Responsibility objective. We have chosen Assistive Technologies
 as the area of focus, as we can bring our technology expertise
 and skills to make a difference in the lives of
 differently-abled people.  The statement is also aligned with
 the principal Mission of MindTree Foundation.
 
 In view of the unprecedented economic crisis, your Company
 decided to be minimalist in the production of this annual
 report.  I am confident you will appreciate our cost cutting
 measures that have been taken without compromising on the
 readability and design. We believe we are the only company
 globally which publishes the results of our customer
 satisfaction and people satisfaction surveys, together with
 historical trends of these two most important indicators for
 success in our business. You will find the results of our latest
 surveys within the annual report. We are pleased that these
 continue to reflect the confidence of our customers in MindTree
 and the happiness of MindTree minds of being members of a
 wonderful team and family.
 
 We are hopeful that in the latter half of 2009-10, the global
 economy will recover and be back on a healthy growth trajectory.
 MindTree will aim for industry leading performance by continuing
 our investments in developing new businesses, new industry
 groups, new skills and new markets.
 
 This August, MindTree will turn 10. It has been an exhilarating
 journey for all MindTree Minds. We are proud of the fact that in
 such a short span of time, your company has emerged as the best
 mid-sized IT Services Company. From inception to a run rate of
 0 Million in less than ten years is among the fastest the
 Indian IT Services industry has seen. Today, MindTree is
 recognized and respected for its corporate governance, people
 practices, knowledge management and social responsibility.
 
 I take this opportunity to recognize the contribution of our
 customers, partners, people and investors for your goodwill and
 support which are so valuable to us. I look forward to your
 continued support in our journey towards achieving the Vision of
 becoming a  Billion organization.
 
                                                 Ashok Soota 
                                          Executive Chairman