Making the Internet Work
for You
March 2007
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.
********
Internet Users in India: Fastest growing in Asia
2006E Internet
Users ( Million)
2003-2006E Internet Users CAGR
31
Source: IDC
17
7
Philippines
Indonesia
126
9
37
40%
35%
30%
25%
20%
15%
10%
5%
0%
India
China
• Fastest growth rates in the region
Thailand
Korea

Indian Internet Users expected to grow to 100 Million
over the next 2 to 3 years from 39 Million in 2005.
Internet & Online Association

Government’s Broadband Policy Target: 20 MM
subscribers by 2010
E-Gov Initiatives gaining momentum
Information Services available online
• Rapid infrastructure improvements


Growth of IT Spending in India
20.0
Domestic demand for IT in India is witnessing a gradual transformation from
being predominantly hardware driven towards a solutions oriented approachresulting in an emphasis on services.
18.0
16.0
USD Billion
14.0
12.0
10.0
8.0
6.0
4.0
2.0
17%
23%
23%
18%
17%
15%
14%
2003
2004
2005
2006
2007
2008
2009
0.0
Source: Nasscom – IDC Report
Strong IT – ITES Growth Projected
Revenues $ Billion
Domestic
growth trends
14.0
22%
12.0
23%
10.0
12.4
10.2
8.3
Offshoring growth trends
10.0
8.0
6.0
6.0
4.0
4.0
2.0
2.0
0.0
0.0
• Offshore Infrastructure Management Services
expected to grow to $ 1 Billion in 3 years
• Domestic demand driven by IT/ITES
Source : NASSCOM
32%
12.0
8.0
FY 2004 FY 2005 FY 2006
13.2
14.0
37%
10
7.3
FY 2004 FY 2005 FY 2006
Sify is best positioned to leverage the
projected exponential growth of
Internet usage as well as internet based
services.
Catalysts of the Internet for positive change
Consumer
Internet
Experience
Enterprise
Services
Technology Core
Network
Data Centers
Systems
Leveraging IP expertise
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
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
The Sify Edge :
Infrastructure – Redundant Global Connectivity
State-of-the-Art Network Management
 Integrated Trouble Ticketing
Proactive Alerts
Standards Based
Customer-centric Processes
Sify TAC
v
Web enabled
v Automatic alerts on email & SMS
v Sophisticated trouble ticketing system
v Escalation Support
CCRM
support.sify.net
v
v
Reports on utilization,
throughput, packet loss
v Reference Library
v Customizable Alerts
Customer Profile View &
Relationship Management
v Internal Customer
Management tool
24x7 Central Help Desk
v Universal Access Number
v Instant access to Sify customer rep
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
•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
Common pool of
technology talent across
businesses
Team Strength – 800 and
growing
IT Information Library
CIO Dashboard
Incident
Management
Problem
Management
Trouble
Ticket Engine
NMS Alerts
Knowledge
base
Change
Management
Service
Desk
Escalation
Engine
C M D B
Change
Workflow
NMS
Configuration
Baselines
Threshold
Monitoring
C M D B
IT Service
Continuity
Management
Capacity
Management
Reports
Engine
Patch Management
Availability
Management
Service Level
Agreements
SLA
Management
Software Inventory
Managed IT services …
Services
Capabilities
Consulting
Networks
Audit
Migration
Management
Monitoring
Facility Management
Servers
Security
Application
Management
Databases
Messaging
Vendor
Management
Storage
Desktop
Management
Asset
Management
Patch
Management
World Class Processes
 ISO 9001 – 2000 Certification
› Enterprise Solutions Business, Technology, and Customer
Care
 Maturity Level 5 (CMMI-SW version 1.1)
› Technology
development units apprised at Maturity
Level 5 of the Capability Maturity Model Integration
(CMMI-SW version 1.1)
 Information Security Certification
› First Data Center complying with BS7799-2: 2002
Internet access: Huge Unrealized Potential
60% of Internet Users access the Internet
from Public Internet Access Points
Source : IMRB – 2004 Report.
PC Owners
3,000
2,000
1,000
287 461
732
2,550
1,886
1,550
1,073
19
97
19 98
98
19 99
99
20 00
00
20 01
01
20 02
02
20 03
03
-0
20 4
04
-0
5
That’s because Home PC ownership
is estimated at 6 million plus in
2006. Even with projected growth
of over 30% (IDC) this would still be
only 12-13 million.Total no of
homes in India is 210 million
3,500
4,000
Large Opportunity in Public Internet Access
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 3550+ cafes in 158 cities, and growing
 The undisputed No 1 in branded public Internet access
 Delivering a superior Consumer Internet Experience
 High speed access across the chain
Consumer Touch Points:
 Scalable model
 Proven
and successful franchise
operation
 Asset
light: Space, interiors,
computers etc by franchisee
 Sify provides the connectivity &
online management of service
delivery
 Pre-paid model
The Consumer Internet Experience is driven and
controlled by us.
Our Edge:
Consumer Experience
Technological Advantage
Prepaid
subscriber
model
with Wireless Broadband
roaming access across the network
Online
administration
“Clean” PC : ensuring privacy and management of operations
protection
finances
Comfortable,
standardized
designed interiors
Located
reach
conveniently
within
and
and
well Centralized accounting to prevent
revenue “leakages”
easy Total Transparency with operations,
builds franchisee trust.
Growth
3500
1400
Subscribers
3000
1200
2500
1000
2000
800
1500
600
1000
400
500
200
0
0
2002-03
2003-04
2004-05
2005-06
No of Subscribers (3m active)
No of iWays
iWays
4000
1400
iWays
Subscribers
3500
1200
No of iWays
3000
1000
2500
800
2000
600
1500
400
1000
200
500
0
0
Q1 0506
Q2 0506
Q3 0506
Q4 0506
Q1 0607
Q2 0607
Q3 0607
Subscriber Millions (3 months active)
Growth
Services to Consumer
voice
Browsing
E services
3600 Approach
to consumer
E entertainment
E learning
E shopping
Online Ticketing initiative
 Tie- up with IRCTC (Government body) for Online train
booking
 IRCTC is the only licensee for Online booking
› Service currently extended to only Credit Card
holders
› IRCTC books around 25,000 tickets daily
 Tie-up enables Sify to offer booking initially through
500 iWays
› Franchisee offers this service for mass on cash
payment through a unique payment process system
› Model aimed at expanding services to wider mass
Large Opportunity in traveler segment
: 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
Enhancing Consumer
Experience at Touch Points
 E-Store for
services :
›
›
›
›
›
fulfillment
of
Online Ticketing for airlines
and railways
Bill Payments
Mobile Recharge
Auctions
Print Stations:

Printing Digital Photographs from
cameras, mobile phones
Future:
•Residential areas
•Cafes
•Shopping Malls
•Airport Lounges
•College “Hangouts”
•Street Corners
•Libraries
“Everywhere”
Future :Globalizing
 Opportunity to replicate this model in countries having
similar potential
 Franchisee Model
Internet Penetration : March 05
(**)
Bangladesh: 0.2%
Srilanka : 1.4%
Indonesia : 7%
Vietnam : 7.1%
Phillipines : 9.3%
South Africa : 9.5%
Saudi Arabia : 11%
Brazil: 12.3 %
Thailand : 12.8 %
Source : InternetWorldStats.com
› License technology, processes and operations
› Remote Management of Infrastructure
(**Representative list only – does not imply presence of
in all of these countries)
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
Consumer Touch Points:
to Homes
 High Speed Internet Revolution for homes
›
›
›
›
›
›
Pioneered unique model with Cable TV operators for last
mile connectivity
Currently the largest private player with more than 208,000
subscribers
Potential of 80 Million Cable TV households
Cable TV homes more likely to buy home PCs
Iways 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).
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.
growth trends
250
Subscribers
Subscribers (000s)
200
183.0
208.8
209.0
Q2 0607
Q3 0607
191.1
150.5
150
124.7
104.8
100
50
0
Q1 0506
Q2 0506
Q3 0506
Q4 0506
Q1 0607
Consumer Internet Experience
 Driven by
› High Speed Broadband
› Rich broadband content
Betting on broadband!
Betting on youth !
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
Enhancing Consumer
Experience at Touch Points
 Providing high quality user experience of broadband
at Home or at
›
›
›
Entertainment
Education
E-Stores
Enhancing Consumer
Experience at Touch Points
 Entertainment
› Online Games, Movies, Music Videos
› Association with Indian Television : Indian Idol, MTV Roadies,
Fame Gurukul, Saregamapa
Enhancing Consumer
Experience at Touch Points
 High Quality, media rich content
› Sifymax.in
›
›
›
Games
Cricket Videos
News Videos
Entertainment
News
Sports
Humor
Enhancing Consumer
Experience at Touch Points
 Education
› Tie up with Educational Institutions
› E Learning (Computer Based Training)
› Online tests
Sify.com-Regional languages
Sify.com-Mail
Samachar.com
Portals growth
2.0
Revenue
1.7
1.8
Revenues ( USD Million )
1.6
1.5
1.4
1.3
1.2
1.1
0.9
1.0
0.8
1.6
0.8
0.6
0.4
0.2
0.0
Q1 0506
Q2 0506
Q3 0506
Q4 0506
Q1 0607
Q2 0607
Q3 0607
1 $ = Rs 44.11
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
Consumer Internet:
The Tipping point
Everywhere !
The ultimate
Broadband Experience
Ready to go …. No one else has it !
Enterprise Services
Managed Services



Managed Network Services
›
IP/VPN
›
Global MPLS
›
Internet & bandwidth
›
VoIP & Converged Network
Services
Managed Datacenter 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 Offerings
• IP VPN/MPLS
• Global Connectivity
Solutions
• Dedicated Internet
Bandwidth
• VoIP Servicesz
• Consulting Services
• Data & Transaction Security
• Implementation Services
• Managed Security Services
IT Consulting
• Remote Infrastructure
Management Services
• Global Delivery Model
• Mail Messaging
• Online Examinations
• Document Management
• Supply Chain Management
• Web Applications
• eLearning
• Infrastructure Mgmt Services
• Business Continuity
• Value Added Services
• Security Services
Sify Enterprise Services - Profile
 Expertise in delivering mission critical 24x7
technology services
 Leader in India by far- IDC
 Over 1600 clients, including 400 global
companies
 Among top providers in Forrester Wave for
Offshore Infrastructure Management (2005)
 Scalable infrastructure
Growth of Enterprise Services
20
Revenue
18
16.4
17.0
17.6
Revenues ( USD Million )
16
14.2
14.2
Q2 0506
Q3 0506
15.4
14
12.2
12
10
8
6
4
2
0
Q1 0506
Q4 0506
Q1 0607
Q2 0607
Q3 0607
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
N/W Mgmt
Server
Mgmt
Infrastructure
Application
Support
Security
Our Domain
Operations
Support
Sify Infrastructure Services - Focus
DATA CENTER MANAGEMENT
Servers, Databases, Messaging,
Storage Systems
NETWORK MANAGEMENT
Routers, Switches, VoIP
devices, Network Links
SECURITY MANAGEMENT
Firewalls, Intrusion Protection
Systems, VPNs, PKI, AAA Tools
END USER SERVICES
Service Desk, Desktop
Support, Application
Packaging & Distn.
ITIL compliant processes, SLA driven engagements
Infrastructure Management Services
Pro-active Monitoring & Incident Management
Problem, Change & Configuration Management
Asset Management, Patch Management
Availability Management
Process Consulting, Audits & Reviews
Implementation / Migration Support
The Sify Edge
ENGAGEMENT
GOVERNANCE
EXPERIENCE
SERVICE
INFRASTRUCTURE
SPECIALIST IN
REMOTE
INFRASTRUCTURE
MANAGEMENT
SERVICES
EXPERTISE
PROCESSES
Value Proposition
MULTI LEVEL ENGAGEMENT VALUE
Business
Process
Operations
•Business Service
Management
•Business Impact
Analysis
• Enhanced Productivity
- ITIL Best Practices
• Reduced Noise Levels
- Root Cause Analysis
with Six Sigma
•Cost reduction
savings to 50%
•Enhanced Customer
Satisfaction : Proactive approach
Impact on Business Strategy
“Sify Is Best Suited For Discrete Offshore
Remote Management”
Forrester Wave TM : Global Delivery Infrastructure
Management – December 2005
Way forward…
 Synergizing
internal strengths and proven
expertise in the area of networking,
applications, security and hosting to offer
managed solutions at a global scale
 Successful Service model being extended to new
geographies




North America
Europe
Middle East
Asia Pacific
 SaaS – Software as a Service
 New product launch – Storage
 SME – Key drivers for growth
Way forward…
 Building Global brand and client intelligence
 Global Delivery Model – improving the quality of
delivery and providing customer delight
 Building Key Alliances for growth
 Uniquely positioned to leverage the internet
growth in India and abroad for both Enterprise
and Consumer services
Way Forward
 Thrust Areas:
› Consumer
Internet Experience: Access Media &
Portals
› Enterprise Technology Services
 Sify ready to scale in India and overseas
markets
› Both organically and through acquisitions
A history of robust topline growth
106.1
100
81.9
90
80
USD Million
70
%
40
60
63.5
45.2
50
35.8
40
30
GR
CA
27.8
14.1
20
10
0
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
1 $ = Rs 44.11
EBITDA
5.1
10
6.5
1.9
5
0
USD Million
-5
-10
-10.9
-15
-20
-25
-22.3
-30
-35
2001-02
2002-03
2003-04
2004-05
2005-06
1 $ = Rs 44.11
Net Income
0
-8.4
-20
USD Million
-40
-30.1
-7.0
-3.4
*
-60
-80
-100
-120
-140
-163.3
-160
-180
2001-02
2002-03
2003-04
*Net Profit included USD 3.2 Mln on account of Profit on Sale of Land & Cricinfo
2004-05
2005-06
1 $ = Rs 44.11
Steady Growth continues in current year
Total Revenues
31.4
33.0
31.0
Service Revenues
31.5
29.9
29.2
29.0
USD Million
28.4
28.4
27.0
27.2
26.6
25.0
23.0
21.0
19.0
17.0
15.0
Q4 0506
Q1 0607
Q2 0607
Q3 0607
1 $ = Rs 44.11
Path to profitability
EBITDA
Net Profit
5.0
4.2
3.7
4.0
2.3
USD Million
3.0
1.2
2.0
1.0
3.0
2.7
1.4
1.6
0.3
0.9
0.5
0.0
(0.2)
-1.0
(1.4)
-2.0
-3.0
(2.2)
Q1 0506
Q2 0506
Q3 0506
Q4 0506
Q1 0607
Q2 0607
Q3 0607
1 $ = Rs 44.11
Sify – The Opportunity
To leverage:
› Large
services opportunity in Indian and Global
markets
› Proven scalable business models in
 Access Media
 Portals
 Enterprise Services
› Leveraging
expertise
Technology platform for scale and
› Capable people
› Cash to fuel growth
Equity Structure ( Undiluted )
ADR s with Public
58.15%
Infinity Capital
41.85%
Others
0.002%
No of Shares 42,781,922
As of 31th Dec 2006
Thank you