Sasken Technologies Ltd · NSE:SASKEN

Sasken Technologies — Sasken Communication Technologies — Q4 FY06 Earnings Presentation

25 slides from Sasken Technologies's earnings presentation, April 2006

  1. Slide 1: Financial Results for Q4 FY06 and Full Year FY06

    Sasken Group Financial Results for Q4 FY06 and Full Year FY 06 April 2006 www.sasken.com 1 © Copyright 2005 2006 Sasken Communication Technologies Limited Sasken confidential

  2. Slide 2: Disclaimer

    Disclaimer Certain statements made in this release concerning our future growth prospects may be interpreted as forward looking statements, which involve a number of risks and uncertainties that could cause the actual results to differ materially from those in such forward looking statements. Invest

  3. Slide 3: Financial Highlights – FY06

    Financial Highlights – FY06 Consolidated Annual Revenues Consolidated Annual EBITDA 3500 600 481.81 EB IT DA (R s . M illion ) 3,081.28 Revenues (Rs Million) 3000 2,417.70 500 2500 400 355.14 2000 300 1500 200 15.6% 14.7% 1000 100 500 0 0 FY 06 FY 05 FY 06 FY 05 Years Years Growth - 27.4% Growth – 3

  4. Slide 4: Financial Highlights – Q4 FY06

    Financial Highlights – Q4 FY06 Consolidated Revenues Consolidated Q4 FY06 EBITDA 142.01 R even u es (R s Million ) 790 780.52 150 EB IT D A (R s . M illion ) 105.08 120.90 780 770 759.40 100 760 745.52 750 740 50 13.5% 15.9% 19.0% 730 720 0 Q4 FY 06 Q3 FY 06 Q4 FY 05 Q4 FY 06 Q3 FY 06 Q4 FY 05 Years

  5. Slide 5: Consolidated Results – FY06

    Consolidated Results – FY06 www.sasken.com 5 © Copyright 2006 Sasken Communication Technologies Limited

  6. Slide 6: Income Statement Summary (Consolidated) – Annual

    Income Statement Summary (Consolidated) – Annual Rs. Million FY 06 % FY 05 % Growth % Revenues 3,081.28 100.0 2,417.70 100.0 27.4 Cost of Revenue 1,888.35 61.3 1,308.74 54.1 44.3 R&D1 131.82 4.3 214.39 8.9 (38.5) Gross Profit 1,061.11 34.4 894.57 37.0 18.6 SG&A 579.30 18.8 539.43 22.3 6.9 EBITDA 481

  7. Slide 7: Segmental Results (Consolidated) – Annual

    Segmental Results (Consolidated) – Annual Rs. Million FY 06 FY 05 % Growth Revenues 3,081.28 2,417.70 27.4% Software services 2,806.18 2,078.34 35.0% Products 275.10 339.36 (18.9)% EBITDA 481.81 355.14 35.1% Software services 655.79 417.11 56.8% Products (173.97) (61.95) - EBITDA % 15.6% 14.7% Softw

  8. Slide 8: Balance Sheet Summary (Consolidated)

    Balance Sheet Summary (Consolidated) Rs. Million Mar 31, 2006 % Mar 31, 2005 % Liabilities Share capital 279.36 7.2 168.47 11.7 Share application - - 2.55 0.2 ESOP Outstanding 7.73 0.2 7.89 0.6 Reserves & Surplus 3,563.12 92.3 1,240.47 86.5 Borrowing 11.50 0.3 14.56 1.0 Total Liabilities 3,861.71 10

  9. Slide 9: Consolidated Results – Q4 FY06

    Consolidated Results – Q4 FY06 www.sasken.com 9 © Copyright 2006 Sasken Communication Technologies Limited

  10. Slide 10: Income Statement Summary (Consolidated) – Q4

    Income Statement Summary (Consolidated) – Q4 Rs. Million Q4 FY06 % Q3 FY06 % Q4 FY05 % % Growth over Q3FY06 Q4FY05 (QoQ) (YoY) Revenues 780.52 100.0 759.40 100.0 745.52 100.0 2.8 4.7 Cost of Revenue 513.69 65.8 460.25 60.6 369.70 49.6 11.6 38.9 R&D1 22.28 2.9 26.00 3.4 68.31 9.2 (14.3) (67.4) Gross

  11. Slide 11: Segmental Results (Consolidated) – Q4

    Segmental Results (Consolidated) – Q4 Rs. Million Q4 FY06 Q3 FY06 Q4 FY05 % Growth over Q3FY06 Q4FY05 (QoQ) (YoY) Revenues 780.52 759.40 745.52 2.8 4.7 Software services 736.31 737.88 640.31 (0.2) 15.0 Products 44.21 21.52 105.20 105.4 (58.0) EBITDA 105.08 120.90 142.01 (13.1) (26.0) Software servic

  12. Slide 12: Corporate Highlights

    Corporate Highlights • Global Expansion • China development center incorporated • Mexico centre up and running • Pune centre ramped up • People First • Ranked #8 in the Businessworld-Grow Talent Great Places to Work for India survey • M & A Strategy • Acquisition of Integrated SoftTech Solutions (iS

  13. Slide 13: Operating Metrics

    Operating Metrics www.sasken.com 13 © Copyright 2006 Sasken Communication Technologies Limited

  14. Slide 14: Geography Wise Revenue

    Geography Wise Revenue % Q4 FY06 Q3 FY06 Q4 FY05 FY 06 FY 05 North America 30.6 36.5 30.1 34.9 33.7 Europe 37.3 38.4 39.3 36.5 46.6 India 25.9 22.1 13.6 21.5 9.0 APAC 6.2 3.0 17.0 7.1 10.7 Total 100.0 100.0 100.0 100.0 100.0 www.sasken.com 14 © Copyright 2006 Sasken Communication Technologies Limite

  15. Slide 15: Customer Concentration

    Customer Concentration % Q4 FY06 Q3 FY06 Q4 FY05 Full Year Full Year FY 06 FY 05 Top 5 76.3 75.7 69.1 72.4 70.3 customers Top 10 88.6 86.0 86.5 84.0 82.3 Customers www.sasken.com 15 © Copyright 2006 Sasken Communication Technologies Limited

  16. Slide 16: Human Resources Metrics for Q4 FY06

    Human Resources Metrics for Q4 FY06 Total No. of Employees No. of Gross Adds 2,575 203 188 141 3,000 2,504 2,121 250 2,500 200 2,000 150 1,500 100 1,000 50 500 0 0 Q4 FY06 Q3 FY06 Q4 FY05 Q4 FY06 Q3 FY06 Q4 FY05 Period Q4 FY06 Q3 FY06 Q4 FY05 Q4 FY06 Period Q3 FY06 Q4 FY05 No. of Net Adds Attrition

  17. Slide 17: Services Business

    Services Business www.sasken.com 17 © Copyright 2006 Sasken Communication Technologies Limited

  18. Slide 18: Services Revenue Mix

    Services Revenue Mix Q4 FY06 Q3 FY06 Q4 FY05 Full Year Full Year FY 06 FY 05 Rs. Million % Rs. % Rs. % Rs. Million % Rs. Million % Million Million T&M 103.39 14.0 127.02 17.2 120.14 18.8 492.89 17.5 463.61 22.3 onsite T&M off- 570.25 77.5 566.28 76.7 348.35 54.4 2,041.69 72.8 1,166.73 56.1 shore Fix

  19. Slide 19: Number of Tier 1 customers

    Relationships with Tier 1 Customers 15 14 13 13 12 Number of Tier 1 customers 11 10 9 9 8 7 6 5 4 3 2 2 2 2 1 1 1 1 0 0 0 <$1M >$1M <$3M >$3M <$10M >$10M <$20M >$20M Based on trailing 12 months Services revenues in USD FY 06 FY 05 www.sasken.com 19 © Copyright 2006 Sasken Communication Technologies

  20. Slide 20: Services Utilization

    Services Utilization 100% 90% 77.7% 74.3% 75.7% 80% 71.0% 64.4% 70% 60% 50% 40% 30% 20% 10% 0% Q4 FY06 Q3 FY06 Q4 FY05 FY 06 FY 05 www.sasken.com 20 © Copyright 2006 Sasken Communication Technologies Limited

  21. Slide 21: Services Highlights for FY06

    Services Highlights for FY06 Revenues and Billing • Scaled annualized revenues from one Tier 1 customer from 1~ 3M $ to over 3M $ in Q4 Operational Efficiencies • Increased utilization rates from 64.4% in FY05 to 75.7% in FY06 through greater focus on operational efficiencies New Initiatives • Core

  22. Slide 22: Products Business

    Products Business www.sasken.com 22 © Copyright 2006 Sasken Communication Technologies Limited

  23. Slide 23: Products Revenue Mix

    Products Revenue Mix Q4 FY06 Q3 FY06 Q4 FY05 Full Year Full Year FY 06 FY 05 Rs. % Rs. % Rs. % Rs. % Rs. % Million Million Million Million Million Licensing 20.35 46.0 14.07 65.4 72.44 68.9 181.40 65.9 156.26 46.0 Royalty 9.86 22.3 0.71 3.3 9.70 9.2 28.07 10.2 34.16 10.1 Customization 14.00 31.7 6.7

  24. Slide 24: Products Highlights

    Products Highlights Revenues Realization • Royalty revenues realized as leading Japanese handset vendor begins shipping 3G handsets embedded with Sasken’s multimedia solutions Customer Wins • “Design In” for two leading Japanese handset vendors for Sasken multimedia applications • “Design In” with a

  25. Slide 25: Thank You

    Thank You www.sasken.com 25 © Copyright 2006 Sasken Communication Technologies Limited

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