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
Mobile Subscribers (million)
250
India
China (with a 5-year lag)
206
200
150
145
90
100
145
119
85
50
0
India
China
4
4
7
6
2000
1995
2001
1996
13
57
43
28
24
11
2002
1997
2003
1998
2004E
1999
2005E
2000
2006E
2001
2007E
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
Data Market ( US $ million)
4000
India
China
3760
3237
3500
3000
2295
2500
1527
2000
1500
878
420
1000
147
500
0
2004
2003
2004E
2005E
•
•
•
•
Source : Gartner
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
Internet Users - one of fastest growing in Asia
2003-2006E Internet Users CAGR
2006E Internet
Users ( Million)
31
17
7
126
9
37
40%
35%
30%
25%
20%
15%
10%
5%
0%
India
Philippines
Indonesia
China
Thailand
Korea
• Fastest growth rates in the region
•
•
•
•
Source : IDC
Rapid infrastructure improvements
Aggressive broadband rollout
Affordable internet access
Development of content & applications
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
Households
80
100
120
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
Corporate Services
Data/network services
Hosting services
Security services
International Services
Remote Network and Data
Management
Remote Managed Security
Services
Messaging Solutions
Backup and Disaster
Recovery Services
Consumer Services
Broadband Access
Dial-up Access
Public Internet Access
Internet Telephony
Games
Portals
eCommerce
Content Management
Services
Technology Core
Network
Data Centers
Systems
Leveraging Common Infrastructure for Multiple Revenue Streams
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 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
82.8
 Revenue growth of 42% CAGR ( 99-00 to 04-05)
80
70
64.2
USD Mn
60
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
USD Mn
EBITDA
10
5
0
(5)
(10)
5.2
1.9
(4.8)
(11.0)
(15)
(20)
(25)
(30)
(35)
(22.6)
(29.8)
1999-00
Net Profit
2000-01
0
(20)
( 8 .8 )
( 8 .5)
USD Mn
(40)
( 3 0 .5)
(60)
( 7.0 )
*
( 57.5)
(80)
(100)
(120)
(140)
(160)
( 16 5.1)
(180)
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
2001-02
2002-03
2003-04
2004-05
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