Sify Technologies : Financial Presentation FY 2019-20

INVESTOR PRESENTATION 2020

May 2020

1

AGENDA

01

02 03

THE WORLD IS CHANGING

AND SO ARE THE DEMAND DRIVERS

HOW ARE WE IMPACTED & RESPONDING

04 05

THE PROOF : OUR FINANCIALS

RIGHT PLACE : INDIA

2

THE WORLD IS CHANGING

2/3rdOF THE WORLD WILL DO BUSINESS DIFFERENTLY POST COVID

IMPACT OF COVID-19 ON INDUSTRY VERTICALS: TECHNOLOGY SPEND

AND SO ARE THE DEMAND DRIVERS

TOP 10 DIGITAL TRENDS POST COVID

1. Online Shopping and Robot Deliveries

Online shopping - from 46% now to 64% over next 6 to 9 months*

*Capgemini Research Institute

Delivery robots' market is expected to grow from USD 11.9 million (2019) to USD 34.0 million (2024), at a CAGR of 19.15%.

*Markets & Markets

2. Digital and Contactless Payments

Digital payments grew 23% in

just March 2020

POS Contactless payments grew 12% in March and almost doubled to 22% in April 2020*

*Capgemini Research Institute

And those that

are in

alignment with

our

capabilities

3. Remote Work

BlueJeans- data consumption at home surge over 50% since January 2020.

Cisco- WebEx services increased 22-fold in China since the outbreak.

4. Distance Learning

Overall market for online education projected to reach $350 Billion by 2025*.

*World Economic Forum

BYJU's has seen a 200% increase in the number of new students using

its product.

5. Telehealth

Practo has been witnessing the surge since March. The teleconsultations have been growing at an average of over 100% week-on-week.

Almost 50 per cent increase in the number of doctors joining Practo.

TOP 10 DIGITAL TRENDS IN THE DIGITAL WORLD

6. Online Entertainment

India would have a billion digital users by 2030*

• KPMG 2020

Compared with the previous week, i.e. the week of March 16-22, 2020, visits increased by 32% during the week of March 23-29, 2020*

*ComScore analytics

8. 3D Printing

Formlabs is now using its more than 250 in-house 3D printers to produce up to 150,000 COVID-19 test swabs - devices that are used to collect samples for COVID-19 testing - per day.

7. Supply Chain 4.0

Average weekly order volumes on the Tradeshift platform have dropped by 15.9% since March 9th. Invoices have dropped by 16.7% during the same period*.

*World Economic Forum

9. Robotics and Drones

Spending on Robots and Drones Forecast to Hit $128.7 Billion in 2020

And by 2023, spending will reach $241.4 billion*.

*IDC

And those that

are in

alignment with

our

capabilities

10. 5G and Information and Communications Technology (ICT)

5G commercial network launched in late February - Hong Kong, Japan, and Thailand.

HOW ARE WE IMPACTED& RESPONDING

IMPACT OF COVID-19 ON SERVICE LINES

Negative		Neutral		Positive

The green squares represent positive growth, while the red circles represent negative growth.

India falls under

Emerging Asia/Pacific

Note: Managed Services and Cloud Infrastructure are Green

Each dot represents 5% growth

SIFY COVID-19 RESPONSE: BUSINESS SOLUTIONS FOR MARKET

CONNECT	COLLABORATE	SECURE	DESKTOP-AS-A	BCP SUPPORT
			SERVICE
Provide the	Ensure the diversely	Ensure disparate	Working with	On-prem
requisite bandwidth	located staff can	staff entering the	customers to	data center
upgrade at DC/DR	collaborate using	Corporate Network	enable staff to WFH	customers hugely
to cater to large no	tools like WebEx,	are provided secure	in a secured	impacted and few
of (WFH)Work	Microsoft Teams	access using VPN or	environment using	of them requested
from Home users	etc.	Enterprise	Desktop-as-a-	immediate Cloud
accessing the DC.		Application Access.	Service on Cloud by	Provisioning support
			implementing	to enable
			Hyperscale VDI.	uninterrupted
				services.

SIFY SERVICES ALIGNMENT : FULL SPECTRUM OF CLOUD PLAY

CLOUD ENABLING		CLOUD INSPIRED			CLOUD PURE
▪	Cloud DC	▪	Sify CloudInfinit		▪	AWS Cloud services
▪	Hyper reach/Hyper scale	▪	Hosted SAP/S4HANA Cloud		▪	Azure Cloud services
	transport
	▪	Managed wireless network		▪	Oracle Cloud services
	Oracle FastConnect | ExpressRoute |
	▪			▪
▪	DirectConnect | Partner Interconnect	UC on Cloud		Multi Cloud Management
Software Defined Network					platform
	services				▪Multi Cloud Managed services
▪	Cloud build

Private | Hyperconverged | Enterprise

• Security services for cloud
• Migration and Implementation services

CLOUD ENHANCED

• Digital SCM (ForumNXT, SFFNxt)
• Digital Learning (Livewire LMS)
• Digital Assessment (iTest)
• Digital trust (Safescrypt)
• Digital Innovation (App modernization, Analytics, AI/ML, DevOps)
• Enterprise Mobility
• Industrysolution-as-a-service

Aligned to our Customer's Cloud Transformation Pursuit	12

OFFERED OFF THE COMPLETE ICT ECOSYSTEM

TECHNOLOGY INTEGRATION SERVICES

APPLICATIONS INTEGRATION SERVICES

CLOUD AND MANAGED SERVICES

NETWORK SERVICES

DATA CENTER SERVICES

India's widest MPLS and

Partner network

The DC fabric offering the most Interconnects to the Cloud from India

THE PROOF :OUR FINANCIALS

FINANCIAL METRICS for last 5 years - IN $ MNin constant currency	1 USD @ INR 75.39
				Revenue							EBITDA
325							60
275							50
225							40
175				274	286	304	30						54
			245
125		199						41
								38
								33	34
75							20
25							10
FY 15-16	FY 16-17	FY 17-18	FY 18-19	FY 19-20*
		FY 15-16	FY 16-17	FY 17-18	FY 18-19	FY 19-20*
				PAT						Capital Expenditure
20							60
15							45
10							30					53	58
					14
5				12		15
		9		9		21	22	24
	6
						-
-
							FY 15-16	FY 16-17	FY 17-18	FY 18-19	FY 19-20*
	FY 15-16	FY 16-17	FY 17-18	FY 18-19	FY 19-20*

15

Income Tax Expense for the FY 19-20 is $5 Mn (previous FYs Nil)	* FY 2019-20 - Figures are Unaudited

FINANCIAL STATEMENTS OVER LAST 5 YEARS - IN $ MN IN

CONSTANT CURRENCY 1 USD @ INR 75.39

	INCOME STATEMENT					BALANCE SHEET
Details		15-16	16-17	17-18	18-19	19-20*
Revenue		199	245	274	286	304
COGS		(121)	(158)	(178)	(180)	(191)
SG&A		(46)	(53)	(58)	(65)	(59)
EBITDA		32	34	38	41	54
Depreciation		(21)	(23)	(23)	(20)	(30)
Net finance Expense		(6)	(4)	(5)	(9)	(11)
Other income		1	2	2	2	1
PROFIT BEFORE TAX (PBT)		6	9	12	14	14
Income Tax Expense #		-	-	-	-	(5)
PROFIT AFTER TAX (PAT)		6	9	12	14	9

• Income Tax Expense for the FY19-20 is $5 Mn (previous FYs Nil) due set-off of carried losses till FY 2018-19

Cash flows	15-16	16-17	17-18	18-19	19-20
Operating activities	32	23	28	19	67
Investing activities	(21)	(21)	(24)	(53)	(57)
Financing activities	(8)	(3)	(14)	41	0
Cash and cash	23	25	30	30	35
equivalents at the
year end

16

* FY 2019-20 - Figures are Unaudited

SEGMENT-WISE PERFORMANCE

in constant currency 1 USD @ INR 75.39

180					168
160				154
		142
		135		136
140	127	132	132
120		110
100
80		73
60
40
20

-
2015-162016-17	2017-182018-192019-20*
		Network Centric Services		Data Center centric IT Services

17

* FY 2019-20 - Figures are Unaudited

RIGHT PLACE : INDIA

DIGITAL INDIA: WHAT'S HAPPENING?

Investments in Indian IT digital platforms Facebook, Silver Lakes and Vistas PE invest

total of $8 Bilin Reliance Jio

Internet penetration

• 40M per yearincrease in active internet subscribers

Healthy Start Up ecosystem

>27K startups. $11 Bil raised in FY 2019-20

Rural Digital penetration

The internet user base in India has exceeded 500 million mark. Annual growth of 18%,

Expanding the Digital Economy

Jan 2020, Amazon India announced US$ 1 billion to build SMB ecosystem

ADVANTAGE INDIA

1,000 foreign firms production in India, actively pursue plan 'Exit China' mantra

CHINA

VENEZUELA

SAUDI ARABIA

IRAQ

Japan has earmarked $2.2 billion to enable its companies to shift production from China.

India-which has a domestic market of $120 billion-has announced a Rs 40,000 crore production-linked incentive (PLI) scheme for the sector.

FINANCIAL TIMES

US looks to step up economic action against China

The Japanese Government is paying Japanese companies $2.2 Bil to shutter their manufacturing plants in China.

ANI

US mulls retaliatory action against China for poor handling of coronavirus

Thank you