sify corporate ppt
TRANSCRIPT
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’s leading Internet & Network services company.
Business model leveraging multiple services on common
network infrastructure
No. 1 or No. 2 in key lines of business across corporate
& consumer services.
Core competence and focus on IP technologies,
processes, service delivery.
World Class Network, Domestic and International.
First Indian Internet company to list on Nasdaq
1900 people, Preferred Employer on Tech Campuses.
Company highlights
Company
Incorporation
Retail
Internet
Access:
Dial up
Corporate
Data /
Network
services
Network
Infrastructure
Online
Portal
Data center
/ Hosting
Service
Broadband
delivery
through fixed
wireless
Dec 95
96-97
Apr 98
Oct 98
Nov 98 Oct 99 Sep 00
Jul 01
Milestones
IPO,
Nasdaq
Listing
Retail
Internet
access :
Cybercafes
launched
Mar 00
VoIP
Launched
May 02
Contd..
A decade of innovation and leadership
Infrastructure
Management
Services
Online
Games
UCO
OICL
IP VPN Orders
Jun 04
Sep 04
Milestones
Acquisition of
EAP
“Sify Assure”
Mar 04
Feb 05
Retail
Broadband
Thro
CTOs
Jun 03
Infinity Capital
Acquisition of
Satyam
computers
Stake in Sify
Nov 05
EBITDA
Break Even
Cisco
GS Routers
Dec 02
Mar 03
Third
Datacenter
Bangalore
Apr-06
A series of firsts
First private service provider with TCP/IP network
First Private ISP
First to offer VPN
First to offer Internet telephony
First to deploy Gigabit Switch Routers
First implementation of Multi-Protocol Label Switching
(MPLS)
First level 3 data center
First to upgrade network to IPv6
First Certifying Authority licensed under Information
Technology Act, 2000
First Broadband Portal Sifymax.in
A history of robust topline growth
14.1
27.8
35.8
45.2
63.5
81.9
106.1
0
10
20
30
40
50
60
70
80
90
100
US
D M
illio
n
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
1 $ = Rs 44.11
40% CAGR
EBITDA
1 $ = Rs 44.11
-22.3
-10.9
1.9
5.16.5
-35
-30
-25
-20
-15
-10
-5
0
5
10U
SD
Million
2001-02 2002-03 2003-04 2004-05 2005-06
Path to profitability
4.2
3.7
2.72.3
1.2
0.3
3.0
0.9
1.61.4
0.5
(0.2)
(1.4)
(2.2)-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
Q1 0506 Q2 0506 Q3 0506 Q4 0506 Q1 0607 Q2 0607 Q3 0607
US
D M
illio
nEBITDA Net Profit
1 $ = Rs 44.11
Catalysts of the Internet for positive change
Enterprise
Services
Consumer
Internet
Experience
Technology Core
Network Data Centers Systems
Leveraging IP expertise
Quality Policy
“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
The Sify Edge:
Infrastructure - India Network A World class design and service
standards network to deliver
Consumer Internet Experience
Enterprise Technology Services
Network coverage extends to 200
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
Sify IP VPN
Cloud
Sify
NoC 1
Remote Location 2
Central Location
Sify
NoC 2
Remote Location 1
Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Ahmedabad Cochin
NoC Level Redundancy Link Level Redundancy Carrier Redundancy
SP 1 SP 2
Dual Network Operation Centers
Leased line with ISDN back up
Availability: 99%
Sify’s Wireless Broadband
Availability: 99.5%
Sify IP VPN
Cloud
LL (nxE1)/
FE(nx64)
Sify’s Wireless Broadband
(upto 10 Mbps)
PSTN dial-up
LL/FE with
ISDN back up
ISDN dial-up
(BRI/PRI) Ethernet
MAN
Last Mile options
Latency : <70 msec in core, <150 msec
anywhere to anywhere
Packet loss: <= 1%
iWay Infrastructure
Sify Backbone
Iway
Iway
Iway
Iway
Base Station
Chennai
City 1 City 2
City 3
Authentication
Server
Billing
Server
International
Bandwidth
Broadband Service delivery…
CTO
Control
Room
OFC SIFY Micro PoP
SIFY
SIFY OFC Ring
MDU/CTO connectivity
10000+ Installations Rapid Deployment Secure, Managed
Wireless Infrastructure
5.7 GHz, 5 Km, 8 Mbps
2.4 GHz, 5 Km, 3 Mbps
2.5 GHz, 8 Km, 3 Mbps
Customer-centric Processes
Sify TAC
v Web enabled
v Automatic alerts on email & SMS
v Sophisticated trouble ticketing system
v Escalation Support
support.sify.net
v Reports on utilization, throughput, packet loss
v Reference Library
v Customizable Alerts
24x7 Central Help Desk
v Universal Access Number
v Instant access to Sify customer rep
CCRM
v Customer Profile View &
Relationship Management
v Internal Customer Management tool
Our People: Technology Expertise & Skills
•Network certifications:
CCNA/ CCNP/ CCIE
• System Certifications :
RHCE, SCSA,SCNA,MCSE,MCSD
• Database certifications :
OCP, OCA, MCDBA
• Security certifications:
CISSP, CISA, BS7799 auditors
•Process certifications:
ITIL, Six Sigma
Team Strength – 800 and
growing
Common pool of
technology talent across
businesses
•Operating System:
Windows, Solaris, HP-UX, AIX, Linux
• Database :
MS-SQL, MySQL, Oracle, Sybase,
Postgres SQL
• Messaging :
MS-Exchange, Lotus Domino
• Web / App servers:
Weblogic, Websphere, iPlanet,
Apache, Tomcat, IIS, Coldfusion
• Service Tools:
Openview,Unicenter, Patrol, Remedy,
Magic
NMS
Trouble
Ticket Engine
Knowledge
base
Change
Workflow
Threshold
Monitoring
Service Level
Agreements
Escalation
Engine
Configuration
Baselines
Incident
Management Problem
Management
Change
Management
Capacity
Management
SLA
Management
Service
Desk
IT Service
Continuity
Management
Availability
Management
Reports
Engine
CIO Dashboard
Software Inventory Patch Management
NMS Alerts
C M D B
C M D B
IT Information Library
CRM
Provisioning TAC
SAM
NMS
Prepaid Mail
LDAP
SIP Proxy
CMS
Chat
Billing Linux
MySQL SQLServer
Oracle Apache
JBoss Solaris
Weblogic
MS Windows
Software Strategy
Networks
Servers Security
Application
Management
Databases
Messaging
Storage
Desktop
Management
Asset
Management
Patch
Management Vendor
Management
Services Capabilities
Consulting
Audit
Management
Monitoring
Facility Management
Migration
Managed IT services …
Presentation Structure
India & the Internet
Internet usage life cycle
Pillars of Internet - Access & Portals
Sify .com-Focus Area,Channels, Cross
utilization
India & the Internet
2006 Internet
Users ( Million) 37 7 18 132 8 34
0%
5%
10%
15%
20%
25%
30%
35%
40%
20
03
-20
06
In
tern
et
Us
ers
CA
GR
India Philippines Indonesia China Thailand Korea
Source : Internetworldstats & IDC
• Fastest growth rates in the region
• Rapid infrastructure improvements
• Aggressive broadband rollout
• Affordable internet access
• Development of content & applications
India & the Internet
37 Mn internet users
Estimated to be 50 Mn by 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
Pillars of internet industry
Access Portals
CyberCafe Mail
Home News
Office Sports
School /College Finance
Others Chat
3500 +
Sify Iways
210,000
Sify
Broadband
HH’s
Stan
darad
fare
Sify.com Channels
Resident Indian Non Resident Indian
Sify.com - 5 Regional Languages Samachar.com
Sify Mail - 11 Regional Languages Bawarchi.com
Sifymax.com - Entertainment
Movies - Bollywood & Regional Cinema
Sify.com Channels : “ Indian” interest content targeted at
the Indian Diaspora
Broadband focus
Entertainment
Online Games, Movies, Music Videos
Association with Indian Television : Indian Idol, MTV Roadies,
Fame Gurukul, Saregamapa
Sifymax.com
http://mumbailive.in/
http://biggboss.sifymax.com/
Biggboss : Reality show on the lines of
British reality show “Big Brother”
Cutting with Aneesha : Bollywood
gossip
Interactive Content
Education
Tie up with Educational Institutions
E Learning (Computer Based Training)
Online tests
Cross utilization by Sify
Driving application through access points (online +
offline)
Zee Cinestars Talent Hunt-Nationwide talent hunt
on the lines of “American Idol” . Sify Iway used as
audition points.Telecast of event on Sifymax.com
Unique model of purchasing railway tickets
through Sify Iway through a tie up with Indian
Railways
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
Cyber cafés successful in India due to low PC penetration
in homes
Currently 3550+ cafes in 158 cities, and growing
Delivering a superior Consumer Internet Experience
High speed access across the chain
Cybercafes:
Consumer Touch Points
Scalable model
Asset light: Space, interiors,
computers etc by franchisee
Sify provides the connectivity &
online management of service
delivery
Pre-paid model
Proven and successful franchise
operation
The Consumer Internet Experience is driven and
controlled by us.
Services to Consumer
3600 Approach
to consumer
voice
E services
E learning
E shopping
E entertainment
Browsing
: Categories & Services
Internet : Browsing,Voice,Games
E commerce : IRCTC,E bay,Utility bills etc
E learning : ILP , Micro soft certificate
E entertainment : GameDrome,Sify max
E shopping : Sify mall
Future: “Everywhere”
•Residential areas
•Cafes
•Shopping Malls
•Airport Lounges
•College “Hangouts”
•Street Corners
•Libraries
Vision
Our vision is to be a largest player in branded
cyber cafes by being an integral part of Indian
middle class family through unparalleled
business innovations & consumer satisfaction
Broadband in India
Opportunity – 20 million by 2010 as projected by CII.
Source (CII – Broadband Telecom Policy 2004)
Current Market size – 2 million
3
9
20
2005 2007 2010
Year
Su
bs
cri
be
r b
as
e in
millio
ns
Sify Broadband
Pioneered unique model with Cable TV Operator for
last mile connectivity through Ethernet.
Largest in the Ethernet space with more than 200,000
subscribers.
Potential of 80 million Cable TV households. (On the
contrary only 25% of fixed lines can be DSL enabled.)
Cable TV homes more likely to buy home PCs.
Technology Innovation for India :
› Hybrid model of Wireless + Optic fibre + Ethernet
Brand Promise
VALUE FOR MONEY
Pre-paid pack with post-paid benefits.
Products as suited for various usage categories.
24 x 7 CustomerCare.
No modem, No Rental charges.
User-friendly Broadband client.
FREE licensed anti-virus software.
DO MORE :
Educational tie-ups.
VOIP for International Calls.
PC health solutions.
International calling worth 2.5 billion minutes per
annum as per study.
Growing at 50% every year.
VOIP is estimated to contribute 8 % – 10 % .
VOIP calls growing at more than 75% per annum.
Sify is the leader with 37% market share.(TRAI)
Voice market size - India
Sify Talk – Retail distribution
iWay chain with over 2000 VoIP Kiosks. In addition to iWay chain, more than 1000 Sify Telecentre kiosks in India. Currently 10 million minutes in an year. Available in 20 cities and planning to expand to 30 cities by 07. Offering world class voice quality by having world class carriers.
Sify Talk – Home voice
• Sify offers Sify talk – PC 2 Phone card for making international calls.
• Users can call international destinations from the comfort of home.
•Customer base of more than a million users between Iway, Broadband, Mail & Samachar can capitalize on synergies.
•One world plan at Rs1.99 per min for more than 100 countries
•Electronic dispensing of packs made available to 2000 CTO’s
Overview Sify Limited
Pioneering Expertise
› India’s leading integrated Internet and
Infrastructure services company
› NASDAQ listed Corporation
› India’s leading operator of Tier III and Tier IV
Data Centers
- India’s Market Leader for VPN services
Financial Strength
› Enterprise Solutions revenues at $US 55 million
contributes 54% of Sify revenues
Certifications
› SEI CMMI Level 5
› ISO 9001:2000
› ISO 27001
Customer Patronage
› 1500+ Corporate Customers
Service Offerings
Enterprise Solutions
› Enterprise Connectivity
› Managed VoIP Solution
› Application Services
› Security Solutions
› Hosting Services
› Infrastructure Management
› eLearning Services
› Managed Services
Key Verticals Served
› IT/ITES
› BFSI
› Consumer
› Telecom
› Life Sciences
› Manufacturing
› Retail
› Energy
› Government
Evolution from an ISP to ICT Provider
Dec’95: Company Incorporation
96-97: Network Infrastructure
April’98: Corporate Data / Network Services
Oct’99: NASDAQ Listing
Sep’00: Data Centre / Hosting Services
May’02: VoIP Launched
Dec’02: CISCO GS Routers
Mar’04: Acquisition of EAP “Sify Assure”
June’04: Infrastructure Management Services
Sep’04: UCO OICL IP VPN Orders
Mar’06: 05-06 net profit of USD 0.5 Mn
Aug’06: Tier III Data Centre at Bangalore (Scalable to Tier IV)
OCT’06: IP VPN – MPLS Market Leadership Award from
Frost & Sullivan Third time in a row
Significant Achievements
Frost & Sullivan Market Leadership Award for IP VPN Market in India 2003-04,2004-05 and 2005-06
2006 Brandon Hall Gold Excellence award- Sify eLearning for a 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 for the year 2004-06
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
IP Backbone Reach
Domestic Coverage
Cisco GSR 12404 Routers
Cisco 7206 NPEG1 Routers
International Coverage
200 *PoPs in India
Sify Offices
300 cities in 30 countries 300+ cities in 52 countries International PoPs: NY,
London, HK, LA, SJ
Collocated POP
New York - I
Los Angeles
San Jose
London - I
Hong Kong
Peering ISP
New York - II
London - II
Internet Peering - International *Point of Presence/Base Station
Global Infrastructure Mgmt Centre
•First company in India to be certified ISO 9001: 2000
• Network Services, Data Centre, Operations and Customer
Relationship Management
•One of the first Data Centre in India to be certified ISO 27001
•Implementation of Information Security Management System
•Tier III Data Centre
•Vashi Mumbai
•Tidel Park, Chennai
•Tier III Data Centre at Bangalore (Scalable to Tier IV)
•Certified ISO 27001
Sify Enterprise Offerings
• Mail Messaging
• Online Examinations
• Document Management
• Supply Chain Management
• Web Applications
• eLearning
• Infrastructure Mgmt Services
• Business Continuity
• Value Added Services
• Security Services
• Consulting Services
• Data & Transaction Security
• Implementation Services
• Managed Security Services
• Remote Infrastructure
Management Services
• Global Delivery Model
• IP VPN/MPLS
• Global Connectivity
Solutions
• Dedicated Internet
Bandwidth
• VoIP Services
Testimonials
“Sify’s mailing solution is highly reliable, scalable and unique. It has helped us disseminate
information about new products, schemes, incentives etc., to our 5500 plus agent force in a cost
effective manner. A unique feature of the solution is that Sify has bundled mail-only connectivity
with the Mail Id's such that our agents have easy access to their mail boxes from over 300 locations
in India with just a normal dial-up connection.”
Mr. P.K. Rath
General Manager (Marketing)
“We would like to place on record the high degree of professionalism shown by SIFY in supporting
our Internet connectivity across multiple locations in India. This has enabled us to achieve very good
internet uptime.”
Mr. Chella Namasivayam,
Vice President - Information Technology
“We Chose Sify to conduct our Security Consulting Audit as they are our Internet Bandwidth service
provider, and we realized they could provide world class network security services to us. Our
experience with Sify for the security audit has been very good. I believe we made the right decision
and it has been a pleasure working with their competent and service focused team.”
Mr.A.K.Sircar
Controller - Information Technology
“At the outset, I would like to take this opportunity to congratulate Sify's project team for successfully completing the design, development and implementation of our Customer Care Application for 400+ Authorized Service Centers (ASCs) in India. I'm very pleased with the application development and project management capabilities of your team. We look forward to a long and mutually beneficial relationship with your organization.”
Souren Banerjee
CMO Customer Care - India
Testimonials
“Sify was chosen because they are the one of the leaders in implementing Last Mile wireless
solutions with a fail-safe infrastructure and an extensive presence in the country.”
Mr.Jitendra Sarode
IT Infrastructure Head
“ERP and connectivity cannot be looked at in isolation. ERP's success largely depended on
a scalable, secure and reliable connectivity, which was provided by Sify.”
Mr. Pradyumna Poddar
General Manager
“Sify's leadership in India for providing MPLS Layer 2 and Layer 3 VPN services for enterprises
with full redundancies built at all levels, along with their strong value proposition for providing
International MPLS connectivity services played a critical role in WOIL adopting their
network.”
Mr Ajay Khanna
Manager IT & Networks
“This is the first time I am working with a consultant who exceeded my expectations!!'. Having worked in the Customer Satisfaction tracking industry I know how difficult it is to get an 'exceeded expectations' rating!!”
Mr. David Krueger Global Operations IT Director
Testimonials
Testimonials - International
I wish to congratulate you on an excellent team that meets our needs in a timely fashion and makes it a
PLEASURE to work with. I personally wish to express my appreciation to the team and to the
leadership for the GREAT job they are doing for us. Max Herrell - GE Capital Services
“The application looks awesome! So professional and easy to navigate! Awesome job, team!“
Luyba Mikhina - GE Energy Rentals
These fantastic two-hour premium clinics (created by Sify) are now available to our IT Professional and
Developer users. A HUGE thanks to all who worked on these premium clinics. It’s because of the Sify
MS team that these premium clinics shipped on time and under budget. This is by far one of the
smoothest projects I have ever worked on and I have these people to thank again and again and again.
Congratulations everybody and on to the refreshes!
Amanda Van Kleeck
Program Manager - Microsoft Learning
Uniquely positioned to leverage the
internet growth in India and abroad
for both Enterprise and Consumer
services
Continuing Sify’s Winning
Spirit
Summary