Transcript Slide 1

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 polit ical 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.
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.
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.
September 2008
Estimated Internet Users in India
Internet users (Millions)
Penetration (%)
80
71.6
70
60.7
60
50.6
50
41.5
40
33.2
22.5
30
19.5
20
10
1.8
2.3
2.9
3.6
4.3
6
5.1
0
2005

2006
2007
2008
2009
2010
Indian Internet Users expected to grow to about 100
Million over the next few years .
Internet & Online Association
2011



Government’s Broadband Policy Target: 20 MM
subscribers by 2010
E-Gov Initiatives gaining momentum
Information Services available online
Source: eMarketer
Strong IT – ITES Growth Projected
Figures in USD billion
70
60
60
50
40.3
40
Domestic
30
20
10
Exports
23.6
12.8
1.9 4
7.7
2.6
FY00
FY02
3.9
11.5
14
6.7
0
FY04
FY06
FY08E
FY10E
Includes IT Software & Services, ES and Products, as well as ITES-BPO
Sustained growth drivers including:

Continued emphasis on trimming operational
costs,

Dealing with increasing compliance and regulatory
requirements

Remaining price competitive

Transforming into a global services oriented
business model and addressing challenges of rising
skill shortages, across several developed markets
Strong optimism of the
industry to achieve its
aspired target of USD 60
billion in exports by 2010
Source : NASSCOM
Sify is best positioned to leverage the
projected exponential growth of
Internet usage as well as internet based services.
Sify’s ICT Evolution
Aug’ 08 :4th Level iv Datacenter Launch
Managed Services Portfolio – SOC Launch
2008
OCT’06: IP VPN – MPLS Market Leadership Award from Frost & Sullivan Third time In a row
Sep’06: Tie-up with IRCTC for online ticket
First IPv6
booking
Network in
Aug’06: Third tier III data centre at Bangalore (scalable to tier IV)
India
Feb’05: Online Games
Mar’06: 05-06 net profit
June’04: Infrastructure management services
Converged enterprise solutions
June’03: Retail broadband through CTO’s
Dec’02: CISCO GS routers
Sep’00: Data centre/hosting services
Oct’99: IPO NASDAQ listing
Oct’98: Online portal
Sep’04: UCO OICL IP VPN Orders
Mar’04: Acquisition of EAP “Sify Assure”
Mar’03: EBIDTA breakeven
May’02: VoIP launched
Mar’00: Retail internet access – e Ports launched
Nov’98: Retail internet access – dial-up
April’98: Corporate data/network Services
96-97: Network infrastructure
Dec’95: Company incorporation
© Sify Technologies
Overview
Pioneering expertise
Certifications
 India’s leading
integrated internet and
infrastructure services
company
 NASDAQ listed
corporation
 India’s leading operator
of tier III and tier IV
data centres
 World’s largest cyber
cafe chain: 2000 + e
ports (operational)
 SEI CMMI Level 5
 ISO 9001:2000
 ISO 27001
Financial strength
 $US 140 million in
revenue in 07-08, CAGR
of ~35%
Customer patronage
 2000+ corporate
customers
 Over a million consumers
across broadband, e
Ports and online services
© Sify Technologies
Catalysts of the Internet for
positive change
Consumer
Internet
Experience
Enterprise
Services
Common Technology Core
Network
Data Centers
Systems
Leveraging IP expertise
Service Offerings
Enterprise solutions
Consumer services









 e Ports ( 2000+)
Operational
 Broadband to homes and
SMB’s
 Ecommerce
(Sifymall.Com)
 Education
 Travel – Sifytripz.Com
 Community portals
(Sifymax.in)
 Games
Enterprise connectivity
Managed voip solution
Application services
Security solutions
Hosting services
Infrastructure management
eLearning services
Mobile solutions
Business consulting
Awards & Accolades
 Frost & Sullivan Market Leadership Award for IP
VPN Market in India
 Brandon Hall Gold Excellence award- Sify
eLearning for Mobile Learning Delivery Platform
developed for Cisco Systems
 Recognition by Forrester for Remote
Infrastructure Management Services
 Recognition by IDC for the pioneering progress
in IP VPN market space
 Recognition by Gartner for initiatives in
Managed Services
 Awarded Superbrand status
 ISO 27001 Certification for Information Security
Management Systems
 ISO 9001:2000 Certification for provisioning of
corporate VPN, Internet bandwidth, Voice over
IP and Integrated Security Solutions
 CMMI® level 5 Certification
Technology Core Competence
“To become the global provider of choice by
pioneering technology and offering innovative
customer centric internet solutions thereby
creating value for the customer”
Sify’s Technology is ISO 9001-2000, BS7799 certified &
appraised CMMi Level 3
IP Backbone Reach
International Coverage
sify
300+ cities in 52
countries
International PoPs: NY,
London, HK, LA, SJ
300 cities in
30 countries
Internet Peering - International
Collocated POP
Peering ISP
New York - I
New York - II
London - I
London - II
San Jose
Los Angeles
Hong Kong
© Sify Technologies
IP backbone reach
Domestic Coverage
•A World class design and service standards
network to deliver
•Consumer Internet Experience
•Enterprise Technology Services
Sify offices
•Network coverage extends to 500 + cities
•Our Network is IPv6 and MPLS enabled with
redundancies
•A Converged network: Voice, Video & Data
capability
•Future proofed to meet strong demand from
IT/ITES and other verticals
500+ Cities in India (750 base
stations)
India’s largest
MPLS network
*Point of Presence/Base Station
© Sify Technologies
State-of-the-Art Network Management
 Integrated Trouble Ticketing
Proactive Alerts
Standards Based
© Sify Technologies
IT Information Library
CIO Dashboard
Problem
Management
Incident
Management
Trouble
Ticket Engine
Service
Desk
Escalation
Engine
NMS Alerts
Knowledge
base
C M D B
Change
Workflow
Change
Management
NMS
IT Service
Continuity
Management
Configuration
Baselines
C M D B
Threshold
Monitoring
Capacity
Management
Reports
Engine
Service Level
Agreements
Path Management
Availability
Management
Software Inventory
SLA
Management
Integrated Enterprise Services
Managed Services


Managed Network Services
IP/VPN




Managed Datacenter Services




Global MPLS
Internet & bandwidth
VoIP & Converged Network
Services
Managed Servers
Managed Mail
Application Hosting
Security Services
Offshore Services

Network Operations Management

Datacenter Operations
Management

Security Operations Management

Application Performance
Management

Desktop Management

Helpdesk
Key Verticals Served
› IT/ITES- BFSI - Consumer Telecom -Life Sciences
› Manufacturing - Retail -Energy - Government
Sify Enterprise Services - Profile
 Expertise in delivering mission critical 24x7 technology services
 Leader in India by far- IDC
 Over 2000 clients, including 400 global companies
 Among top providers in Forrester Wave for Offshore
Infrastructure Management (2005)
 Scalable infrastructure
Enterprise offerings
Integrated
solutions
IT/ITES, BFSI, Telecom, Pharma, Manufacturing, Government
Managed
services
Remote infrastructure
management services
Applications SaaS
Human capital
management
Managed voice
Hosted contact center solutions
Hosting
High availability
Storage and
virtualisation
Storage consolidation
Security
Network
Tools and process
deployment
Consulting services in
best practices ITIL
Unified
messaging and
collaboration
Knowledge
management
Supply chain
management
Managed inbound voice
Dr/bcp
Thinclient and
managed computing
Customer
lifecycle
management
Managed outbound voice
Managed applications
Security services
Shared storage
Virtualization
Services
Managed storage
Solutions
Consulting services
Data and transaction
security
Implementation
services
Managed security
services
IP VPN/MPLS
Global connectivity
solutions
Dedicated internet
Bandwidth
Cleanconnecttm
© Sify Technologies
Enterprise Services - International
Enterprise
Infrastructure
Services
• Infrastructure Management
• Infra Projects / Consulting
• Security Consulting
• Managed Security Services
• Hosting Services
• Enterprise Appln Management
•
•eLearning content services
• Content Mgmt
• Learning Technology Services
Enterprise
eLearning Services
© Sify Technologies
N/W Mgmt
Server Mgmt
Security
Infrastructure
Application
Support
Operations Support
Sify Infrastructure Services
Our Domain
© Sify Technologies
“Sify Is Best Suited For Discrete Offshore
Remote Management”
Forrester Wave TM : Global Delivery Infrastructure
Management – December 2005
© Sify Technologies
The Sify edge
ENGAGEMENT
GOVERNANCE
EXPERIENCE
SERVICE
INFRASTRUCTU
RE
SPECIALIST IN
REMOTE
INFRASTRUCTURE
MANAGEMENT
SERVICES
EXPERTISE
PROCESSES
© Sify Technologies
Value Proposition
MULTI LEVEL ENGAGEMENT VALUE
Business
Process
Operations
•Cost reduction savings
to
50%
•Enhanced Customer
Satisfaction : Pro-active
approach
•Business Service
Management
•Business Impact Analysis
• Enhanced Productivity ITIL Best Practices
• Reduced Noise Levels –
Root Cause Analysis with
Six Sigma
Impact on Business Strategy
© Sify Technologies
Case Study : Hosting & Managed services


Client
RxMD, NJ USA & Chennai , India


Service



Managed by US Board Certified and Licensed Physicians
Hosting Services, Managed services, DR solution & Storage services
Challenge

Highly secured


Infrastructure complaint with US & EU regulations
Scalable architecture

OS & DB administration 24 x 7
Benefits

Single point solution offering end to end solution starting from Hardware
Procurement , Implementation and continuous support

DR server up in 24 hours as per RxMD’s requirement by using unique Sify solution.


Quick Implementation meeting stringent client deadlines
Guaranteed 99.6 % uptime for Network and Infrastructure
© Sify Technologies
Case Study : International MPLS Services

Client


Service




Whirlpool India Limited
International MPLS Services
Accessing servers in US from office in India
Challenge

Shifting of application servers to Michigan , US


High uptime commitments in the network
Redundancy on the network


Highly flexible and scalable network solution
End to End Security
Benefits

High uptime reliable network


Strong security feature
Automatic route distinguishers to provide traffic separation
© Sify Technologies
Case Study : VPN Connectivity


Client

Globus Multi location retail store.

Changeover to Sify from TELCOs
Service



VPN Connectivity with high last mile uptime
Challenge

Integrating Network

High last mile uptime
Benefits

High uptime on entire network including Last mile

Faster implementation

30-40 % reduction in costs
© Sify Technologies
Case Study : Document Management

Client


Service



DLF Group is a leading name in India’s real estate Industry
Document Management & Scanning services
Challenge

Documents centrally stored in Corporate office Delhi. Hindering productivity as it
requires physical travel between locations for document retrieval.

Documents (Legal Documents, Drawings) are to be maintained for long time and is
also exposed to wear & tear
Benefits
•
Fast searching and retrieval of the documents and drawings
•
Enterprise wise access to the documents
•
Documents available on one click of a button
•
Back up to the physical documents
•
Wear & tear of the documents and drawings was reduced
© Sify Technologies
Enterprise Services Revenue
30.00
Revenue
Revenues ( USD Million )
25.00
23.6
24.2
Q3 0708
Q4 0708
23.1
21.5
20.00
19.8
18.0
15.00
10.00
5.00
Q4 0607
Q1 0708
Q2 0708
Q1 0809
1 $ = Rs 42.93
Enterprise Customers
IT/ITeS
BFSI
Consumer
Telecom
Life sciences
Enterprise Customers
Manufacturin
g
Energy
Media
Retail
Government
Integrated Consumer Experience
•com
No one else has it !
The world’s largest franchised cyber café
chain
We single handedly created the branded public
internet access services industry in India by:





Taking Internet to the people with a franchised
chain
Currently 2000+ e ports operational in 200 +
cities, and growing
The undisputed No 1 in branded public Internet
access
Delivering a superior Consumer Internet
Experience
High speed access across the chain
Sify e Ports: Categories & Services
 Internet
 E commerce
: Browsing,Voice,Games
: IRCTC,Utility bills,Money transfer etc
 E entertainment : GameDrome,Sifymax
 E shopping
: Sify mall
Sify e Ports: Categories & Services
E learning
products
virtual office
: Microsoft certificate , Internet Access for
Microsoft IQ PC , Microsoft Office
training at e Ports, e Ports a
“ As part of our strategy to use the e Ports to empower
Indians with Internet and IT services, We have partnered with
Microsoft India to help bridge the digital divide in India “
3950
3900
3850
No of e Ports
3800
3750
3700
3650
3600
3550
3500
3450
Subscriber Millions (3 months active)
e Ports
e Ports
1200
Subscribers
1100
1000
900
800
700
600
500
400
300
200
100
0
Q4 0607
Q1 0708
Q2 0708
Q3 0708
Q4 0708
Q1 0809
Our vision is to be an integral part of the
Indian middle class family’s Internet
experience
Sify broadband to Homes
 High Speed Internet Revolution for homes
 Pioneered unique model with Cable TV operators (CTOs) for last mile
connectivity
 Currently the largest private player with more than 2lac subscribers
 Potential of 80 Million Cable TV households
 Cable TV homes more likely to buy home PCs
 iWay users who buy home PCs can remain Sify customers
 Aggressively growing base
 Technology Innovation :
 Service Provider with wireless broadband technology
 Developed own client to ensure PC hygiene and push updates to
consumers at home (eg Anti Virus).
Value added Services

CUG Phone for Subscribers

Mathguru , Class teacher & MBD Alchemie

IRCTC tie up for Railway Tickets through
partners(CTOs)

Roaming access to users : Sify Anywhere

VOIP for International Calls.

PC health solutions.
Sify broadband to home
230
220
Subscribers
218.6
215.5
208.1
210
Subscribers (000s)
215.2
211.0
206.9
200
190
180
170
160
150
Q4 0607
Q1 0708
Q2 0708
Q3 0708
Q4 0708
Q1 0809
Consumer Internet
Experience
Driven by
 High Speed Broadband
 Rich broadband content
Betting on broadband!
Betting on youth !
India & the Internet





50 Mn in March’08
Internet penetration at 3.5% of population
Smaller cities & towns record 142% YOY growth
25% users from smaller towns
Over 20Mn NRI’s estimated world over
Source:IAMAI & Internetworldstats
Internet Content : enriching consumer experience
 Entertainment
 Online Games, Movies, Music Videos
 Association with Indian Television : Indian Idol, MTV Roadies,
Fame Gurukul, Saregamapa
Internet Content: enriching consumer experience
 Education
 Tie up with Educational Institutions
 E Learning (Computer Based Training)
 Online tests
Sify.com in regional languages
Sifymax.in-City Centric Portals
Samachar.com
Portals revenue
1.6
Revenue
1.4
1.4
1.3
Revenues ( USD Million )
1.2
1.2
1.2
1.2
1.0
1.0
0.8
0.6
0.4
0.2
0.0
Q4 0607
Q1 0708
Q2 0708
Q3 0708
Q4 0708
Q10809
1 $ = Rs 42.93
A history of robust top line growth
1 $ = Rs 42.93
EBITDA
13.8
15
5.3
10
6.7
9.2
2.0
5
USD Million
0
-5
-10
-11.2
-15
-20
-25
-22.9
-30
-35
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
1 $ = Rs 42.93
Net Profit
5.8
20
0
-8.6
-20
-7.2
*
-0.2
-3.5
USD Million
-40
-31.0
-60
-80
-100
-120
-140
-167.8
-160
-180
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
*Net Profit included USD 3.2 Mln on account of Profit on Sale of Land & Cricinfo
# FY 2006-07 and 2007-08 Under IFRS
2007-08
1 $ = Rs 42.93
Equity Structure ( Undiluted )
No of Shares 42,820,082
As of 31st August 2008
ADRs w ith Public,
58.19%
Infinity Capital
ADRs with Public
Others
Infinity Capital,
41.81%
Others, 0.00%
Sify – The Opportunity
To leverage:
 Large services opportunity in Indian and Global markets
 Proven scalable business models in
 Access Media
 Portals
 Enterprise Services
 Leveraging Technology platform for scale and expertise
 Capable people
 Cash to fuel growth
Thank You