Sify Limited.

Transcription

1 Sify Limited

2 Sify Ltd. Investor Presentation From time to time, we make presentations to investors, analysts, the media and other persons interested in our company. The present form of presentation that we are using is attached. The contents of this presentation include forward-looking statements that were and are made in express reliance on the safe harbor provisions contained in Section 21E of the Exchange Act and Section 27A of the Securities Act. Such statements include, without limitation, statements relating to results deemed to be achievable by our management in future periods, as well as with respect to trends in sales performance, gross margin, selling, general and administrative costs, market growth, the competitive environment, and other factors affecting future sales, operating results, and capital requirements. Sales and operating results trends are also affected by many other factors, including, among others, world and national political events, general economic conditions which recently have been weak, the effectiveness of our promotion and marketing strategies, and competitive factors applicable to our corporate and consumer markets. The presentation material also includes selected financial measures that constitute non-gaap data under the Securities and Exchange Commission s rules, particularly including our calculation of earnings before interest, taxes, depreciation and amortization, or Ebitda.

3 Sify Ltd. Investor Presentation A derivation of Ebitda and a reconciliation of that calculation to the GAAP data that we believe to be most comparable is provided in our recent reports on Form 6-K or 20-F filed with the SEC. These reports can be accessed on our website or on the SEC s Edgar database ( The statements furnished in this presentation must be viewed in context and in light of the risks described above and under the caption Risk Factors contained in our most recent reports on Form 6-K or 20-F filed with the SEC. In light of these risks, there can be no assurance that the forward-looking statements furnished in this presentation will in fact be realized. The statements made in this presentation speak as of its date only, and it should not be assumed that the statements made herein or therein remain accurate as of any future date. SIFY DOES NOT PRESENTLY INTEND TO UPDATE THESE STATEMENTS AND UNDERTAKES NO DUTY TO ANY PERSON TO EFFECT ANY SUCH UPDATE UNDER ANY CIRCUMSTANCES.

4 Sify Ltd. Investor Presentation Any failure to successfully implement our operating strategy or the occurrence of any of the events or circumstances set forth in this presentation or the referenced Risk Factors could result in the actual operating results being different than the projections, and such differences may be adverse and material. * * * * * * * *

5 India & the Internet Local Power & Dominance of non-us opportunities Sify Limited (NASDAQ: SIFY)

6 India Population 1.1 Billion Urban - Rural mix: 25:75 600,000 villages, 100 cities & towns Total Number Households 210 Million Strong economic fundamentals GDP: $ 600 Billion ( ) GDP growth: 8 % ( ) 27 States & 7 Union territories 16 Officlal Indian languages in addition to English India like the EU: each state with distinct ethnic groups, language, cuisine & culture

7 Mobile Subscribers (million) Mobile User Base is Growing Rapidly India China (with a 5-year lag) India E 2005E 2006E 2007E China Mobile users growth CAGR 51% ( ) Million plus mobile subscribers added every month India market following China with a 5 yr lag Higher growth due to lower handset costs, lower service charges due to competition Source : Gartner

8 Data Market ( US $ million) Mobile Value added services China 3760 India E 2005E 2006E 2007E 2008E Estimated to grow rapidly at CAGR 67% China grew at CAGR 275% in the past 4 yrs Value added services estimated at 15% Consists of Ring tones, Cricket scores, stock market quotes, pictures, Dating etc Source : Gartner

9 E Internet Users CAGR Internet Users - one of fastest growing in Asia 2006E Internet Users ( Million) % 35% 30% 25% 20% 15% 10% 5% 0% India Philippines Indonesia China Thailand Korea Fastest growth rates in the region Rapid infrastructure improvements Aggressive broadband rollout Affordable internet access Development of content & applications Source : IDC

10 India & the Internet 35 Mln Internet users 5 th Largest Country user base 6.0 Mn Internet Subscribers ( Mar 05) Majority access from cybercafes : up to 70% Broadband subscribers to grow to 20 Million by Current 0.7 Million Mobile Internet access on upswing Nokia & other handset manufacturing facilities Intel, Microsoft, Cisco,AOL,Yahoo & Google development centres

11 Village Internet Kiosks Single e-point rural connectivity Video Conference Facility Agricultural expert offering online advice on pests/crop rotation etc Access Land records from Govt database online, for Loans etc Web based initiative to support farmers (e-choupal) Online information Market price online Product literature Weather / scientific information online Web Portal Supply of regulated farm inputs

12 iway Cybercafés 2,471 iway cafes in 90 Cities (adding 2 iways per day) Franchised Network Broadband access Asset Light Model Customers owned by Sify Points for distribution of new services: Internet Telephony Video Conferencing Games

13 egovernance services: example Rural Access for Sustained Internet Using a web cam from the local Internet kiosk, Tamil Nadu Agri University diagnosed a pest problem and saved crops Chickenpox outbreak alert- timely information prevents epidemic Aravind Eye Hospital - telemedicine on the net

14 TV,Telecom,Internet Penetration Total No. of Households : 210 Million 6 Internet 55 Mobile 48 Telephone 62 C & S 100 TV Households

15 Media in India Publications Newspapers 141 : 21 English Vernacular Magazines 163 : 43 English Vernacluar Circulation Top 3 Indian Newspapers Top 3 US Newspapers Dainik Jagran Hindi 2.4 Million USA Today 2.6 Million Dainik Bhaskar Hindi 2.2 Million Wall Street Journal 1.8 Million Times of India English 2.4 Million New York Times 1.7 Million Source : ABC Advertising Market Size Growth TV USD 1.1 Billion 12% Press USD 1.1 Billion 5% Outdoor USD 181 Million 3% Radio USD 52 Million 15% Internet USD 26 Million 100% Source : AFAA

16 Local content already driving use

17 Sify.in : Leveraging Indian languages 5 language channels 5 mail languages 122 advertisers Services such as Wireless Internet content growing rapidly

18 Horoscopes & Astrological predictions

19 Booking religious ceremonies online!

20 Matrimonial services

21 Filing Income tax returns online

22 Online railway ticket bookings

23 Online shopping

24 Sify Company Highlights India s leading Internet Company. No. 1 or No. 2 in key lines of business. Core competence and focus on IP technologies, processes World Class Network, Domestic and International. Financially strong. Zero Debt. Cash on Hand USD 31 Million Revenues USD 82.8 Million & EBITDA USD 5.17 Million in Declining Net Losses USD 7.0 Million India s First Internet Company to list on Nasdaq. ADR Price $ 4.65, ADRs 18.3 Million, Total Shares 35.4 Million,

25 Unique Business Model Corporate Services Data/network services Hosting services Security services Messaging Solutions International Services Remote Network and Data Management Remote Managed Security Services Backup and Disaster Recovery Services Content Management Services Consumer Services Broadband Access Dial-up Access Public Internet Access Internet Telephony Games Portals ecommerce Technology Core Network Data Centers Systems Leveraging Common Infrastructure for Multiple Revenue Streams

26 Business Segments Cybercafes 24.5% Interactive Services 2.9% International Business 5.1% Access Broadband 9.1% Access Dial up 5.2% Corporate Services 53.2% Based on Revenue of Rs 3614 million, USD 82.8 Million Cash balance of Rs million, USD 31. Million as of 31 st March, Debt - Zero

27 USD Mn Revenues Revenue growth of 42% CAGR ( to 04-05)

28 USD Mn USD Mn EBITDA & Net Profit Net Profit (5) (10) (15) (20) (25) (30) (35) EBITDA (4.8) (11.0) (22.6) (29.8) (20) (40) (60) (80) (8.8 ) (57.5) (3 0.5) (8.5) (7.0 ) * (100) (120) (140) (160) (180) (16 5.1) *Net Profit included USD 3.18 Mln on account of Profit on Sale of Land & Cricinfo

29 First to launch rich broadband content

30 Popular International content

31 Online games tailored to Indian audience

32 Conclusion Sify is well positioned to maximize opportunities in the (uniquely Indian) Internet growth market