Sify Limited

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Sify Limited
www.sifycorp.com
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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 Commissions rules, particularly
including our calculation of earnings before
interest, taxes, depreciation and amortization,
or Ebitda.
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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
SECs 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.
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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.
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India the Internet Local Power Dominance of
non-US opportunities Sify Limited
www.sifycorp.com
(NASDAQ SIFY)
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India

• Population 1.1 Billion
• Urban - Rural mix 2575
• 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

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Mobile User Base is Growing Rapidly
India
China 1995 1996 1997
1998 1999 2000
2001 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
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Mobile Value added services
India
China

• 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

Source Gartner
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Internet Users - one of fastest growing in Asia
2006E Internet Users ( Million) 31
17 7
126 9
37

• Fastest growth rates in the region
• Rapid infrastructure improvements
• Aggressive broadband rollout
• Affordable internet access
• Development of content applications

Source IDC
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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

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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

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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

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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

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TV,Telecom,Internet Penetration
Total No. of Households 210 Million
Internet
Mobile
Telephone
C S
TV
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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
• 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 ABC
Source AFAA
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Local content already driving use
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Sify.in Leveraging Indian languages

• 5 language channels
• 5 mail languages
• 122 advertisers
• Services such as Wireless
• Internet content growing rapidly

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Horoscopes Astrological predictions
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Booking religious ceremonies online!
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Matrimonial services
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Filing Income tax returns online
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Online railway ticket bookings
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Online shopping
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Sify Company Highlights

• Indias 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
• Indias First Internet Company to list on Nasdaq.
• ADR Price 4.65 , ADRs 18.3 Million, Total
  Shares 35.4 Million,

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Unique Business Model
International Services Remote Network and Data
Management Remote Managed Security
Services Backup and Disaster Recovery
Services Content Management Services
Consumer Services Broadband Access Dial-up
Access Public Internet Access Internet
Telephony Games Portals eCommerce
Corporate Services Data/network services Hosting
services Security services Messaging
Solutions
Technology Core Network Data Centers
Systems
Leveraging Common Infrastructure for Multiple
Revenue Streams
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Business Segments
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 31st March ,
Debt - Zero
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Revenues

• Revenue growth of 42 CAGR ( 99-00 to 04-05)

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EBITDA Net Profit
EBITDA
Net Profit

Net Profit included USD 3.18 Mln on account of
Profit on Sale of Land Cricinfo
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First to launch rich broadband content
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Popular International content
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Online games tailored to Indian audience
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Conclusion

• Sify is well positioned to maximize
  opportunities in the (uniquely Indian) Internet
  growth market