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Investor Relations Presentation, September, 2008 - Corporate

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Page 1: Investor Relations Presentation, September, 2008 - Corporate
Page 2: Investor Relations Presentation, September, 2008 - Corporate

From time to time , we make presentations to investors, analysts, the media and Other personsinterested 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 madeIn 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, statementsrelating to results deemed to be achievable by our management in future periods, as well as withrespect to trends in Sales performance, gross margin, selling , general and administrative costs, market growth, the competitive environment , and other factors affecting future sales, operatingresults, and capital requirements. Sales and operating results trends are also affected by manyother factors, including, among others, World and National political events , general economicconditions which recently have been weak, the effectiveness of our promotion and marketingStrategies, 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 calculationof earnings before interest, taxes , depreciation and amortization, or EBITDA.

Page 3: Investor Relations Presentation, September, 2008 - Corporate

A derivation of EBITDA and a reconciliation of that calculation to the GAAP data that we believe tobe 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 reportson 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 statementsmade 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 DUTYTO ANY PERSON TO EFFECT ANY SUCH UPDATE UNDER ANY CIRCUMSTANCES.

Page 4: Investor Relations Presentation, September, 2008 - Corporate

Any failure to successfully implement our operating strategy or the occurrence of any of the eventsor 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 adverseand material.

Page 5: Investor Relations Presentation, September, 2008 - Corporate

September 2008

Page 6: Investor Relations Presentation, September, 2008 - Corporate

Estimated Internet Users in India

Indian Internet Users expected to grow to about 100 Million over the next few years .

Internet & Online Association

Government’s Broadband Policy Target: 20 MM subscribers by 2010

E-Gov Initiatives gaining momentum Information Services available online

Source: eMarketer

Page 7: Investor Relations Presentation, September, 2008 - Corporate

Strong IT – ITES Growth Projected

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

1.9 2.6 3.96.7

11.5 14

47.7

12.8

23.6

40.3

60

0

10

20

30

40

50

60

70

FY00 FY02 FY04 FY06 FY08E FY10E

Domestic

Exports

Includes IT Software & Services, ES and Products, as well as ITES-BPO

Strong optimism of the industry to achieve its aspired target of USD 60 billion in exports by 2010

Figures in USD billion

Source : NASSCOM

Page 8: Investor Relations Presentation, September, 2008 - Corporate

Sify is best positioned to leverage the projected exponential growth of

Internet usage as well as internet based services.

Page 9: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Sify’s ICT Evolution

Converged enterprise solutions

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 booking

Aug’06: Third tier III data centre at Bangalore (scalable to tier IV)

Mar’06: 05-06 net profit

Feb’05: Online Games

Sep’04: UCO OICL IP VPN Orders

June’04: Infrastructure management services

Mar’04: Acquisition of EAP “Sify Assure”

June’03: Retail broadband through CTO’s

Mar’03: EBIDTA breakeven

Dec’02: CISCO GS routers

May’02: VoIP launched

Sep’00: Data centre/hosting services

Mar’00: Retail internet access – e Ports launched

Oct’99: IPO NASDAQ listing

Nov’98: Retail internet access – dial-up

Oct’98: Online portal

April’98: Corporate data/network Services

96-97: Network infrastructure

Dec’95: Company incorporation

Managed Services Portfolio – SOC Launch 2008

First IPv6 Network in India

Aug’ 08 :4th Level iv Datacenter Launch

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 booking

Aug’06: Third tier III data centre at Bangalore (scalable to tier IV)

Mar’06: 05-06 net profit

Feb’05: Online Games

Sep’04: UCO OICL IP VPN Orders

June’04: Infrastructure management services

Mar’04: Acquisition of EAP “Sify Assure”

June’03: Retail broadband through CTO’s

Mar’03: EBIDTA breakeven

Dec’02: CISCO GS routers

May’02: VoIP launched

Sep’00: Data centre/hosting services

Mar’00: Retail internet access –

Oct’99: IPO NASDAQ listing

Nov’98: Retail internet access – dial-up

Oct’98: Online portal

April’98: Corporate data/network Services

96-97: Network infrastructure

Dec’95: Company incorporation

Managed Services Portfolio – SOC Launch 2008

First IPv6 Network in India

Aug’ 08 :4th Level iv Datacenter Launch

Page 10: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Overview

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)

Pioneering expertise SEI CMMI Level 5 ISO 9001:2000 ISO 27001

Certifications

$US 140 million in revenue in 07-08, CAGR of ~35%

Financial strength

2000+ corporate customers

Over a million consumers across broadband, e Ports and online services

Customer patronage

Page 11: Investor Relations Presentation, September, 2008 - Corporate

Catalysts of the Internet for positive change

EnterpriseServices

ConsumerInternet

Experience

Common Technology Core

Network

Leveraging IP expertise

Data Centers Systems

Page 12: Investor Relations Presentation, September, 2008 - Corporate

Enterprise solutions

Service Offerings

Consumer services

Enterprise connectivity Managed voip solution Application services Security solutions Hosting services Infrastructure management eLearning services Mobile solutions Business consulting

e Ports ( 2000+) Operational

Broadband to homes and SMB’s

Ecommerce (Sifymall.Com)

Education Travel –

Sifytripz.Com Community portals

(Sifymax.in) Games

Page 13: Investor Relations Presentation, September, 2008 - Corporate

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

Page 14: Investor Relations Presentation, September, 2008 - Corporate

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

Page 15: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

IP Backbone Reach

International PoPs: NY, London, HK, LA, SJ

300+ cities in 52 countries

300 cities in 30 countries

International Coverage

sify

London - I

Los Angeles

New York - I

London - II

Hong Kong

San Jose

Collocated POPCollocated POP Peering ISPPeering ISP

New York - II

Internet Peering - InternationalInternet Peering - International

Page 16: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

IP backbone reachDomestic Coverage

500+ Cities in India (750 base stations)

500+ Cities in India (750 base stations)

*Point of Presence/Base Station*Point of Presence/Base Station

Sify offices

Sify offices

India’s largest MPLS networkIndia’s largest MPLS network

•A World class design and service standards network to deliver

•Consumer Internet Experience•Enterprise Technology Services

•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

Page 17: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

State-of-the-Art Network Management

Integrated Trouble Ticketing

Proactive Alerts

Standards Based

Page 18: Investor Relations Presentation, September, 2008 - Corporate

IT Information Library

AvailabilityManagement SLA

Management

NMS

Trouble Ticket Engine

Knowledgebase

ChangeWorkflow

ThresholdMonitoring

Service LevelAgreements

EscalationEngine

ConfigurationBaselines

ReportsEngine

CIO Dashboard

Software InventoryPath Management

NMS Alerts

C M D B

C M D B

ProblemManagement

Service Desk

IT ServiceContinuity

ManagementCapacity

Management

Change Management

Incident Management

Page 19: Investor Relations Presentation, September, 2008 - Corporate

Integrated Enterprise Services

Offshore ServicesManaged Services

Key Verticals Served

› IT/ITES- BFSI - Consumer Telecom -Life Sciences

› Manufacturing - Retail -Energy - Government

Key Verticals Served

› IT/ITES- BFSI - Consumer Telecom -Life Sciences

› Manufacturing - Retail -Energy - Government

Managed Network Services

IP/VPN Global MPLS Internet & bandwidth VoIP & Converged

Network Services Managed Datacenter

Services Managed Servers Managed Mail Application Hosting

Security Services

Network Operations Management

Datacenter Operations Management

Security Operations Management

Application Performance Management

Desktop Management Helpdesk

Page 20: Investor Relations Presentation, September, 2008 - Corporate

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

Page 21: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Enterprise offerings

IP VPN/MPLSGlobal connectivity solutions

Dedicated internet Bandwidth

CleanconnecttmNetwork

High availabilityManaged applications

Security services Dr/bcp Hosting

Consulting servicesData and transaction security

Implementation services

Managed security services

Security

Hosted contact center solutions

Managed inbound voice Managed outbound voiceManaged voice

Human capital management

Knowledge management

Unified messaging and collaboration

Supply chain management

Customer lifecycle management

Applications - SaaS

Storage consolidation

Shared storageVirtualizationServices

Managed storageSolutions

Storage and virtualisation

Managed services

Remote infrastructure management services

Tools and process deployment

Consulting services in best practices ITIL

Thinclient and managed computing

IT/ITES, BFSI, Telecom, Pharma, Manufacturing, GovernmentIntegrated solutions

Page 22: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Enterprise Services - International

EnterpriseeLearning Services

• •eLearning content services• Content Mgmt• Learning Technology Services

Enterprise Infrastructure Services

• Infrastructure Management• Infra Projects / Consulting• Security Consulting• Managed Security Services• Hosting Services• Enterprise Appln Management

Page 23: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Sify Infrastructure Services

N/W Mgmt Server Mgmt

Infrastructure Application

Support

Security

Op

era

tion

s S

up

port

Our Domain

Page 24: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

“Sify Is Best Suited For Discrete Offshore Remote Management”

Forrester Wave TM : Global Delivery Infrastructure Management – December 2005

Page 25: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

The Sify edge

PROCESSES

EXPERTISE

SPECIALIST IN REMOTE INFRASTRUCTURE

MANAGEMENT SERVICES

EXPERIENCE

ENGAGEMENT GOVERNANCE

SERVICE INFRASTRUCT

URE

PROCESSES

EXPERTISE

SPECIALIST IN REMOTE INFRASTRUCTURE

MANAGEMENT SERVICES

EXPERIENCE

ENGAGEMENT GOVERNANCE

SERVICE INFRASTRUCT

URE

PROCESSES

EXPERTISE

SPECIALIST IN REMOTE INFRASTRUCTURE

MANAGEMENT SERVICES

EXPERIENCE

ENGAGEMENT GOVERNANCE

SERVICE INFRASTRUCT

URE

PROCESSES

EXPERTISE

SPECIALIST IN REMOTE INFRASTRUCTURE

MANAGEMENT SERVICES

EXPERIENCE

ENGAGEMENT GOVERNANCE

SERVICE INFRASTRUCT

URE

Page 26: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Value Proposition

MULTI LEVEL ENGAGEMENT VALUE

Impact on Business Strategy

Process

Business

•Cost reduction savings to 50%•Enhanced Customer Satisfaction : Pro-active approach

• Enhanced Productivity - ITIL Best Practices• Reduced Noise Levels – Root Cause Analysis with Six Sigma

•Business Service Management•Business Impact Analysis

Operations

Page 27: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Case Study : Hosting & Managed services

Client RxMD, NJ USA & Chennai , India

Managed by US Board Certified and Licensed Physicians

Service 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

Page 28: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Case Study : International MPLS Services

Client Whirlpool India Limited

Service 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

Page 29: Investor Relations Presentation, September, 2008 - Corporate

© 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

Page 30: Investor Relations Presentation, September, 2008 - Corporate

© Sify Technologies

Case Study : Document Management

Client DLF Group is a leading name in India’s real estate Industry

Service 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

Page 31: Investor Relations Presentation, September, 2008 - Corporate

Enterprise Services Revenue

18.019.8

21.5

24.223.1

23.6

-

5.00

10.00

15.00

20.00

25.00

30.00

Q4 0607 Q1 0708 Q2 0708 Q3 0708 Q4 0708 Q1 0809

Rev

enu

es (

US

D M

illio

n )

Revenue

1 $ = Rs 42.93

Page 34: Investor Relations Presentation, September, 2008 - Corporate

Integrated Consumer Experience

No one else has it !

•com

Page 35: Investor Relations Presentation, September, 2008 - Corporate

We single handedly created the branded publicinternet 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

The world’s largest franchised cyber café chain

Page 36: Investor Relations Presentation, September, 2008 - Corporate

Sify e Ports: Categories & Services

                                                               

Internet : Browsing,Voice,Games

E commerce : IRCTC,Utility bills,Money transfer etc

E entertainment : GameDrome,Sifymax

E shopping : Sify mall

Internet : Browsing,Voice,Games

E commerce : IRCTC,Utility bills,Money transfer etc

E entertainment :

E shopping : Sify mall

E shopping : Sify mall

Page 37: Investor Relations Presentation, September, 2008 - Corporate

Sify e Ports: Categories & Services

E learning : Microsoft certificate , Internet Access for Microsoft IQ PC , Microsoft Office products training at e Ports, e Ports a virtual office

“ 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 “

Page 38: Investor Relations Presentation, September, 2008 - Corporate

e Ports

3450

3500

3550

3600

3650

3700

3750

3800

3850

3900

3950

Q4 0607 Q1 0708 Q2 0708 Q3 0708 Q4 0708 Q1 0809

No

of

e P

ort

s

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

Su

bs

cri

be

r M

illi

on

s (

3 m

on

ths

ac

tiv

e)

e Ports Subscribers

Page 39: Investor Relations Presentation, September, 2008 - Corporate

Our vision is to be an integral part of the Indian middle class

family’s Internet experience

Page 40: Investor Relations Presentation, September, 2008 - Corporate

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).

Page 41: Investor Relations Presentation, September, 2008 - Corporate

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.

Value added Services

Page 42: Investor Relations Presentation, September, 2008 - Corporate

215.5

208.1211.0

215.2218.6

206.9

150

160

170

180

190

200

210

220

230

Q4 0607 Q1 0708 Q2 0708 Q3 0708 Q4 0708 Q1 0809

Su

bsc

rib

ers

(000

s)

Subscribers

Sify broadband to home

Page 43: Investor Relations Presentation, September, 2008 - Corporate

Consumer Internet Experience

Driven by High Speed Broadband Rich broadband content

Betting on broadband!

Betting on youth !

Page 44: Investor Relations Presentation, September, 2008 - Corporate

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

Page 45: Investor Relations Presentation, September, 2008 - Corporate

Internet Content : enriching consumer experience

Entertainment Online Games, Movies, Music Videos Association with Indian Television : Indian Idol, MTV

Roadies, Fame Gurukul, Saregamapa

Page 46: Investor Relations Presentation, September, 2008 - Corporate

Internet Content: enriching consumer experience

Education Tie up with Educational Institutions E Learning (Computer Based Training) Online tests

Page 47: Investor Relations Presentation, September, 2008 - Corporate

Sify.com in regional languages

Page 48: Investor Relations Presentation, September, 2008 - Corporate

Sifymax.in-City Centric Portals

Page 49: Investor Relations Presentation, September, 2008 - Corporate

Samachar.com

Page 50: Investor Relations Presentation, September, 2008 - Corporate

Portals revenue

1.2

1.0

1.2

1.3

1.4

1.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Q4 0607 Q1 0708 Q2 0708 Q3 0708 Q4 0708 Q10809

Re

ve

nu

es

( U

SD

Mill

ion

)

Revenue

1 $ = Rs 42.93

Page 51: Investor Relations Presentation, September, 2008 - Corporate

1 $ = Rs 42.93

A history of robust top line growth

Page 52: Investor Relations Presentation, September, 2008 - Corporate

1 $ = Rs 42.93

EBITDA

-22.9

-11.2

2.0

5.36.7

13.89.2

-35

-30

-25

-20

-15

-10

-5

0

5

10

15

US

D M

illion

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Page 53: Investor Relations Presentation, September, 2008 - Corporate

1 $ = Rs 42.93

Net Profit

-167.8

-31.0

-8.6 -7.2-3.5

5.8

-0.2

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

20

US

D M

illi

on

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

*Net Profit included USD 3.2 Mln on account of Profit on Sale of Land & Cricinfo# FY 2006-07 and 2007-08 Under IFRS

*

Page 54: Investor Relations Presentation, September, 2008 - Corporate

Equity Structure ( Undiluted )

No of Shares 42,820,082As of 31st August 2008

Inf inity Capital, 41.81%

ADRs w ith Public, 58.19%

Others, 0.00%

Infinity Capital

ADRs with Public

Others

Page 55: Investor Relations Presentation, September, 2008 - Corporate

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

Page 56: Investor Relations Presentation, September, 2008 - Corporate

Thank You