Investor Presentation

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Investor Presentation June 2009
NASDAQSIFY
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Safe Harbor Statement

• 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 have recently 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.
• 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.
• 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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Corporate Profile
Sify Technologies Sify is one of India's
largest Managed Enterprise and Consumer Internet
services companies. The company began commercial
operations in April 1998, and has been a pioneer
and leader in Internet Protocol based services
ever since. Sify is the first Indian Internet
company to be listed on the NASDAQ Exchange in
the US. Ticker (NASDAQSIFY) Current
Price 1.94 52 Wk L/H 0.42 - 5.29 ADV
152,000 Market Cap 83M Free Float 24.8M
Tidel Park, Chennai India Corporate Headquarters
of Sify
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At a Glance

• Sify Technologies (NASDAQSIFY)
• A leading Indian Internet company operating a
  meshed network and focusing on
• Enterprise Services and
• Consumer Internet services
• Operator of tier III and tier IV data centers
• Worlds largest branded cyber cafe chain with
  over 1800 e-ports
• Catalyst of the Internet and Internet Protocol
  based Enterprise services in India
• 2000 corporate customers, over a million
  consumers across our broadband, e-Ports and
  online services
• SEI CMMI Level 5 / ISO 90012000 / ISO 27001
  certifications

Map of Sifys Network in India
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Meshed Network Platform

• A World class design and service standards
  network to deliver
• Consumer Internet Services
• Enterprise Technology Services
• Network coverage extends to 500 cities in India
  
• First network to be IPv6 and MPLS enabled with
  redundancies in India
• Converged network Voice, Video Data capability
• Future proofed to meet strong demand from IT/ITES
  and other verticals

International peering partners
Indias largest MPLS network
500 Cities across India
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Operating Structure
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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 90012000 Certification for provisioning of
  corporate VPN, Internet bandwidth, Voice over IP
  and Integrated Security Solutions
• CMMI level 5 Certification

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Growth Trends Indian Enterprise Market
Domestic
Exports

• Sustained Growth Drivers Globalization and
  Outsourcing
• 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

Note Includes IT Software Services, ES and
Products, as well as ITES-BPO
Source NASSCOM
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Integrated enterprise services
Managed services
Offshore 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

• 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

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Enterprise Services Overview

• 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

Network management
Server management
Infrastructure application support
Operations Support
Security
Our Domain
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Enterprise services international

Enterprise infrastructure services

• Infrastructure management
• Infra projects/consulting
• Security consulting
• Managed security services
• Hosting services
• Enterprise application management

• eLearning content services
• Content management
• Learning technology Services

Enterprise eLearning services
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Select Enterprise Customers
Manufacturing
Energy
Media
Retail
Government
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Enterprise revenues
Millions

• Leader in network and data center services
• Best in class infrastructure
• Integrated end-to-end services to enterprise
• Most complete managed services provider
• Now also offering Systems Integration services

2008-2009
2007-2008
2006-2007
1 Rs. 50.95
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Internet Penetration Rate in India

• Fast Facts About India and the Internet
• 45 million internet users in September 2008 (I
  cube study)
• Internet penetration at 4.0 of population
• Smaller cities and towns record 142 YOY growth
• 25 users from smaller towns
• Over 20 million NRIs estimated world over
• Indian Governments Broadband Policy Target
• 20 MM subscribers by 2010

Estimated Internet Users in India Source
eMarketer
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Sify Consumer Services Overview

• Compelling content in Indian languages
• Broadband ISP Connectivity about 200,000 home
  subscribers
• E-Port cyber cafes taking internet to the masses

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Worlds largest cyber café chain franchise Sify
e-port

• 1 branded public internet access service in
  India
• Transforming the way people integrate the
  internet and computing in their lives
• Taking the Internet to the people with a
  franchised cyber café chain Sify (formerly Sify
  i-Ways)
• Currently 1800 e-ports operational in 250
  cities
• Delivering a superior Consumer Internet
  Experience
• High speed access across the chain

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Sify e-Port Services
Internet Browsing, Voice, Games
Commerce Bill Pay, Money Transfer
Entertainment GameDrome, SifyMax
Shopping Sify Mall
E-learning Centers Microsoft
Our strategy is to engrain our brand to nascent
users of the Internet in India to use the cyber
café chain by empowering Indians with Internet
and IT services. We have partnered with Microsoft
India to help bridge the digital divide in India
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e-Port performance
e-Ports
Subscriber
Chain rationalized over last two years for
profitability

• Number of cafes reduced over
• the last two years
• Profitable cafes retained, rest churned out
• Not viable due high real estate costs
• New model to ensure lower costs,
• multiple revenue streams
• Alliances for applications and
• content on revenue share
• Intention to make chain
• profitable in short span of time

Subscriber Millions
No. of e-Ports
2007-2008
2008-2009
Note 3 months active
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Broadband to homes

• High speed internet to homes
• Pioneered unique model with Cable TV Operators
  (CTOs) for last mile connectivity
• Currently one of the largest private players with
  around 165,000 subscribers
• Potential of 80 million cable TV households
• Cable TV homes more likely to buy home PCs
• E Port users who buy home PCs can remain
• Sify customers
• Market still nascent, price and promo driven

Broadband Subscribers (000s)
Fiscal 2006-2007 to Fiscal 2008-2009

• Technology innovation
• Service provider with wireless broadband
  technology
• Developed own client to ensure PC hygiene and
  push updates to consumers at home (e.g., Anti
  virus).

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Internet Content Rich Consumer Experience

• Entertainment
• Online Games, Movies, Music Videos
• Association with Indian Television Indian Idol,
  MTV Roadies, Fame Gurukul, Saregamapa

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Internet Content Enriching Consumer Experience

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

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Sify.com in regional languages
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Samachar.com For the global Indian
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Portals revenue
Millions

• Downturn affected online ad placements
• Expect recovery from third quarter
• Developing new advertisers in meantime
• Online ad market now results oriented

2006-2007
2008-2009
2007-2008
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Financials
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A history of robust topline growth
Millions
1 Rs. 50.95
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EBITDA
Millions
1 Rs. 50.95
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Net profit
Millions

Net Profit included USD 3.2 Mln on account of
Profit on Sale of Land Cricinfo FY 2006-07
and 2007-08 Under IFRS
1 Rs. 50.95
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Equity structure (undiluted)
No of Shares 42,820,082 as of 31st March 2009
Others
Infinity capital ventures LP, USA
ADRs with public
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Conclusion
Well positioned to capitalize on the India
opportunity

• Large services opportunity in Indian and Global
  markets
• Scalable business models in
• Access Media
• Portals
• Enterprise Services
• Leveraging Technology platform for scale and
  expertise
• Capable people