Docstoc

Presentation made by invitation

Document Sample
Presentation made by invitation Powered By Docstoc
					Sify Limited
 www.sifycorp.com
                                           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.
                                            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 (www.sec.gov)

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.
                                            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.

                                         ********
                 India & the Internet
       Local Power & Dominance of non-US opportunities


                       Sify Limited
                        www.sifycorp.com




(NASDAQ: SIFY)
 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 ( 2003 –04)
      GDP growth: 8 % (2003-04)
 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
Mobile User Base is Growing Rapidly
                                250
 Mobile Subscribers (million)



                                               India        China (with a 5-year lag)
                                                                                                                    206
                                200


                                150                                                                       145       145

                                                                                               90
                                                                                                         119
                                100
                                                                                                85
                                                                                      57
                                 50                                                   43
                                                                       28
                                                               13
                                                        7                     24
                                          4
                                                       6         11
                                  0       4
                                India   2000       2001       2002     2003        2004E    2005E     2006E     2007E
                                China   1995       1996       1997     1998         1999     2000     2001      2002


                                                                            • Mobile users growth CAGR 51% (2003-08)
                                                                             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
Mobile Value added services

                               4500   China                   India

                               4000     3760
                                                                                                         3237
 Data Market ( US $ million)




                               3500

                               3000
                                                                                             2295
                               2500

                               2000                                             1527

                               1500                                   878

                               1000                     420

                                500             147

                                  0
                                       2004    2003   2004E     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
Internet Users - one of fastest growing in Asia
                             2006E Internet
                             Users ( Million)      31        17           7           126           9             37

                                 40%
2003-2006E Internet Users CAGR




                                 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
India & the Internet

 35 Mln Internet users


 5th 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 2010. Current 0.7 Million


 Mobile Internet access on upswing

 Nokia & other handset manufacturing facilities

 Intel, Microsoft, Cisco,AOL,Yahoo & Google development centres
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
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
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
TV,Telecom,Internet Penetration
 Total No. of Households : 210 Million



       6 Internet

                             55 Mobile

                          48 Telephone

                                   62 C & S

                                               100 TV


  0        20       40        60         80   100       120
                         Households
Media in India
  Publications
          Newspapers 141 : 21 English + 120 Vernacular

          Magazines       163 : 43 English + 120 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
Local content already driving use…
Sify.in : Leveraging Indian languages




 5 language channels
 5 mail languages
 122 advertisers
 Services such as Wireless
  Internet content growing rapidly
Horoscopes & Astrological predictions
Booking religious ceremonies online!
Matrimonial services
Filing Income tax returns online
Online railway ticket bookings
Online shopping
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 2004-05
  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,
Unique Business Model

                              International Services
 Corporate Services                                           Consumer Services
                              Remote Network and Data            Broadband Access
 Data/network services
                                   Management                         Dial-up Access
 Hosting services                                             Public Internet Access
                              Remote Managed Security
 Security services                   Services                    Internet Telephony
 Messaging Solutions                                                          Games
                                   Backup and Disaster
                                                                              Portals
                                    Recovery Services
                                                                         eCommerce
                                   Content Management
                                        Services



                              Technology Core
                         Network     Data Centers   Systems
        Leveraging Common Infrastructure for Multiple Revenue Streams
Business Segments
                                               Interactive Services       International
                      Cybercafes                       2.9%                 Business
                        24.5%                                                 5.1%




   Access Broadband
         9.1%




          Access Dial up
              5.2%
                                                                        Corporate Services
                                                                              53.2%


Based on 2004-05
Revenue of Rs 3614 million , USD 82.8 Million
Cash balance of Rs 1356.7 million , USD 31. Million as of 31 st March , Debt - Zero
Revenues

          90
                Revenue growth of 42% CAGR ( 99-00 to 04-05)              82.8
          80

          70                                                     64.2

          60
 USD Mn




          50                                        45.7

          40                            36.2
                            28.1
          30

          20    14.3

          10

           0
               1999-00    2000-01     2001-02     2002-03       2003-04   2004-05
 EBITDA & Net Profit
                                                                                      EBITDA
                                                                             10
                                                                                                                                                        5.2
                                                                              5                                                               1.9
                                                                              0
                                                                             (5)
                                                                                         (4.8)




                                                                   USD Mn
                                                                            (10)
                                                                            (15)                                                    (11.0)

                                                                            (20)
                                                                            (25)                                         (22.6)
                                                                            (30)
                                                                                                                (29.8)
                                                                            (35)
                                                                                       1999-00          2000-01          2001-02   2002-03   2003-04   2004-05
Net Profit
             0

          (20)     ( 8 .8 )                                                        ( 8 .5)         ( 7.0 )
          (40)

          (60)
                                                              ( 3 0 .5)
                                                                                       *
 USD Mn




                                 ( 57.5)
          (80)

          (100)

          (120)

          (140)

          (160)

          (180)                                ( 16 5.1)
                  19 9 9 -0 0   2 0 0 0 -0 1   2 0 0 1-0 2   2 0 0 2 -0 3      2 0 0 3 -0 4      2 0 0 4 -0 5

   *Net Profit included USD 3.18 Mln on account of Profit on Sale of Land & Cricinfo
First to launch rich broadband content
Popular International content
Online games tailored to Indian audience
Conclusion




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

				
DOCUMENT INFO