Slide 1: Sasken Group Financial Results for Q4 and Full Year FY07
Sasken Group Financial Results for Q4 and Full Year FY07 April 20, 2007 Sasken confidential © 2007 Sasken Communication Technologies
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncertainties ass
Slide 3: Performance Snapshot – Full Year FY07 - Sasken Group
Performance Snapshot – Full Year FY07 - Sasken Group Consolidated Revenues ( Rs. Million) Services – Products Revenue Mix ( Rs. Million) 6000 5000.00 4500.00 4,543.95 4771.29 4000.00 5000 3500.00 4000 3000.00 2,806.18 3081.28 2500.00 3000 2000.00 2000 1500.00 1000.00 1000 500.00 275.10 227.34 0.00 0
Slide 4: Performance Snapshot – Q4 FY07 - Sasken Group
Performance Snapshot – Q4 FY07 - Sasken Group Consolidated Revenues ( Rs. Million) Services – Products Revenue Mix ( Rs. Million) 1600 1400 1353.97 1200 1,268.63 1,266.70 1400 1310.18 1200 1000 1000 800 736.31 780.52 800 600 600 400 400 200 44.21 41.55 87.27 200 0 0 Q4 FY06 Q3 FY07 Q4 FY07 Q4 FY06 Q
Slide 5: Highlights
Highlights © 2007 Sasken Communication Technologies
Slide 6: FY 07 Highlights
FY 07 Highlights Corporate • Consolidated EPS for the year was Rs 15.75/- vs Rs 9.08/- in FY06 • Began expansion of the management team with Srikanth Kannankote’s induction as President and COO in Q2 • All members of the new Business Leadership Team in place by Q4 Poonacha Machaiah – Senior Vice P
Slide 7: FY 07 Highlights (contd…)
FY 07 Highlights (contd…) Services • Services business has crossed the US$ 100M mark in Revenues • Services business EPS for the year was Rs 26.84 vs Rs 20.85 in FY06 • Launched the Test Lab offering, with a Tier 1 semiconductor player as the lead customer. Second customer signed up in Q4 FY07 • Mex
Slide 8: Consolidated Results – Full Year FY07
Consolidated Results – Full Year FY07 © 2007 Sasken Communication Technologies
Slide 9: Income Statement Summary (Consolidated)
Income Statement Summary (Consolidated) Rs. Million FY07 % FY06 % Growth Revenues 4,771.29 100.0 3,081.28 100.0 55% Cost of Revenue 2,975.58 62.4 1,888.35 61.3 59% R&D1 195.53 4.1 131.82 4.3 26% Gross Profit 1,600.18 33.5 1,061.11 34.4 51% SG&A 842.58 17.7 579.30 18.8 45% EBITDA 757.60 15.9 481.81 1
Slide 10: Segmental Results (Consolidated)
Rs. Million Segmental Results (Consolidated) FY07 FY06 Growth Revenues 4,771.29 3,081.28 55% Software Services 4,543.95 2,806.18 62% Products 227.34 275.10 (17)% EBITDA 757.60 481.81 57% Software Services 1,024.37 655.79 56% Products (266.77) (173.97) EBITDA % 15.9% 15.6% Software Services 22.5% 23.
Slide 11: Balance Sheet Summary (Consolidated)
Balance Sheet Summary (Consolidated) Rs. Million March 31, 2007 % March 31, 2006 % Liabilities Share capital 285.00 5.5 279.36 7.2 ESOP Outstanding 17.24 0.3 7.73 0.2 Reserves & Surplus 3,915.27 76.2 3,563.12 92.3 Deferred Tax Liability 0.71 - - - Borrowing 918.50 17.9 11.50 0.3 Total Liabilities 5,
Slide 12: Consolidated Results – Q4 FY07
Consolidated Results – Q4 FY07 © 2007 Sasken Communication Technologies
Slide 13: Income Statement Summary (Consolidated)
Income Statement Summary (Consolidated) Rs. Million Q4 FY07 % Q3 FY07 % Q4 FY06 % Growth over Q3 FY07 Q4 FY06 (QoQ) (YoY) Revenues 1,353.97 100.0 1,310.18 100.0 780.52 100.0 3.3% 73% Cost of Revenue 828.30 61.2 826.75 63.1 513.69 65.8 0.2% 61% R&D1 73.98 5.5 50.30 3.8 22.28 2.9 47.1% 232% Gross Prof
Slide 14: Segmental Results (Consolidated)
Rs. Million Segmental Results (Consolidated) Q4 FY07 Q3 FY07 Q4 FY06 Growth over Q3 FY07 Q4 FY06 (QoQ) (YoY) Revenues 1,353.97 1,310.18 780.52 3.3% Software Services 1,266.70 1,268.63 736.31 0% Products 87.27 41.55 44.21 110% EBITDA 210.00 194.02 105.08 4.3% Software Services 262.32 290.22 179.30 (1
Slide 15: Balance Sheet Summary (Consolidated)
Balance Sheet Summary (Consolidated) Rs. Million March 31, 2007 % Dec 31, 2006 % Liabilities Share capital 285.00 5.5 282.18 5.6 ESOP Outstanding 17.24 0.3 13.54 0.3 Reserves & Surplus 3,915.27 76.2 3,831.14 76.0 Deferred Tax Liability 0.71 - 3.98 0.1 Borrowing 918.50 17.9 911.92 18.1 Total Liabilit
Slide 16: Services Business
Services Business © 2007 Sasken Communication Technologies
Slide 17: Revenue and EBITDA trends: Services (Consolidated)
Revenue and EBITDA trends: Services (Consolidated) Rev CAGR : 40% over 2 Years Rev CQGR : 10% over 10 Qtrs (K$) 30,000 28,801 28,210 28,000 26,000 24,000 24,000 22,000 19,548 20,000 18,000 16,267 16,301 16,620 16,000 14,758 14,366 14,000 11,363 11,267 12,000 10,000 8,000 6,706 6,727 5,363 6,000 4,54
Slide 18: Services Metrics
Services Revenue Mix - Delivery Services Metrics 18% 28% Full Year Full Year FY06 FY07 72% 82% Offshore (incl FPP) Onsite Revenues from Botnia Hightech, Finland are treated as onsite revenues from Q2 FY07 100% Services Utilization Services Revenue Mix – Project Type 90% 80% 71.0% 73.6% 75.7% 75.00%
Slide 19: Products Business
Products Business © 2007 Sasken Communication Technologies
Slide 20: Products - Milestone Targets and Status
Products - Milestone Targets and Status Milestones Application Wireless Wireless Multimedia Framework Protocol Protocol Subsystems Stacks Stacks 3G (2.5G) (3G) No of Platform Design-Ins as of date 1 – Lenovo Mobile 5 2 4 --> 5 (April 2007) (April 2007) No of Phone Models Launched None None None 3 --
Slide 21: Revenue Mix - Products
Revenue Mix - Products Full Year FY06 Full Year FY07 22% 24% 55% 10% 66% 23% Customization Licensing Royalty © 2007 Sasken Communication Technologies 21
Slide 22: Corporate Metrics
Corporate Metrics © 2007 Sasken Communication Technologies
Slide 23: Number of Tier 1 customers
Relationships with Tier 1 Customers – Services + Products 20 18 16 Number of Tier 1 customers 14 14 12 13 10 8 6 4 4 3 3 2 2 2 1 1 1 0 <$1M $1M~$3M $3M~$10M $10M~$20M >$20M FY06 FY07 Based on trailing 12 months' revenues in USD © 2007 Sasken Communication Technologies 23
Slide 24: Human Resources Metrics
Human Resources Metrics 4000 3,504 3,611 3500 3000 2,575 2500 2000 1500 1000 290 500 203 71 350 131 107 0 Q4 FY06 Q3 FY07 Q4 FY07 Total Employees Gross Adds Net Adds Voluntary Attrition % - 19.6% in Q4 FY07 and 21.5% for the Full Year FY07 © 2007 Sasken Communication Technologies 24
Slide 25: Geography Wise Revenue
Geography Wise Revenue Q4 FY06 Q3 FY07 Q4 FY07 6% 6% 8% 25% 25% 31% 20% 19% 26% 37% 49% 48% North America Europe India APAC © 2007 Sasken Communication Technologies 25
Slide 26: Customer Concentration
Customer Concentration 88.6 % 90 88.9 86.7 86.3 87 84.0 84 80.6 81 78 76.3 74.7 75 73.6 72.4 72 Q4 FY06 Q3 FY07 Q4 FY07 Full Year Full Year FY06 FY07 Top 5 Top 10 © 2007 Sasken Communication Technologies 26
Slide 27: Thank You
Thank You © 2007 Sasken Communication Technologies