Slide 1: E2E Networks Limited Investor Presentation 2019
E2E NETWORKS LIMITED Investor Presentation 2019
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to E2E Networks’’ future business developments and economic performance. Wh
Slide 3: E2E is a Cloud Infrastructure Provider
E2E IS A CLOUD INFRASTRUCTURE PROVIDER Building Superior Public Cloud Product with great Value to Customers • E2E Networks founded in 2009; is a Cloud Infrastructure provider • Amongst the largest Indian Public Cloud Companies in India • E2E raised initial investment from Blume Ventures and has got
Slide 4: Cloud Infra Highlights
CLOUD INFRA HIGHLIGHTS 127 5.0 GBPS of Internet Number of Bandwidth Consumed Racks* by the Cloud Platform 135 99.9 MWh Units of Percent of Average Energy System Availability Consumed per month* 1000+ Number of Billed Customers* ~10 Years in service Note: * As on January 2019 <4>
Slide 5: Our Business Model in Cloud Infra
OUR BUSINESS MODEL IN CLOUD INFRA • E2E has agreements with Datacenters for colocation services • E2E deploys its own/leased servers and other compute infrastructure and configures them to be used as Dedicated or Virtual Servers for Clients • Clients have the flexibility to increase or decrease thei
Slide 6: Cloud Infra Offering
CLOUD INFRA OFFERING E2E has built its own Cloud Computing infrastructure from the ground up using Open Source Software and custom designed servers to optimize cost, performance and speed of delivery E2E can quickly deliver on cost effective public cloud solutions on pay as you go model for customer
Slide 7: Benefits of Our Cloud Infra Platform
BENEFITS OF OUR CLOUD INFRA PLATFORM Performance Self Service Experience - For general purpose to - Self Service cloud with advanced workload easy monitoring, deployment and backups - Low latency due to Indian Data Center - Increasing number of features being made - High uptime and reliability avail
Slide 8: E2E Comparison of Cost vs Peers
E2E COMPARISON OF COST VS PEERS E2E AWS DO GCP Rackspace Azure Alibaba Optimized Ecs.sn1ne.2xla Plan Type C.30 GB C4.2xlarge n1-highcpu-8 Compute1-15 F8s V2 Droplet rge RAM 30 GB 15 GB 16GB 7.20GB 15GB 16GB 16GiB vCPU 9 8 8 8 8 8 8 300 GB Extra 100 GB Extra Extra 64 GB Extra Storage SSD Storage cost
Slide 9: Sustainable Cost Advantage
SUSTAINABLE COST ADVANTAGE GLOBAL PLAYERS WITH GLOBAL PLAYERS WITH E2E NETWORKS SERVERS IN INDIA SERVERS GLOBALLY Low Density Very Cheap POWER Deployment Power BANDWIDTH Limited number International HARDWARE of SKUs Sourcing Open Source & Massive Stack Massive Stack SOFTWARE Own Stacks adds to cost
Slide 10: Rapid Evolution in Our Public Cloud Product
RAPID EVOLUTION IN OUR PUBLIC CLOUD PRODUCT Significant improvement in Flexibility of usage, Product Offering and Customer Experience in last 1 Year Scaling up of Development and Service Delivery Team to enable changes further Product Offering Flexibility to use Customer Experience Future Evolution
Slide 11: Introduced Innovative Product Like Smart Dedicated Servers
INTRODUCED INNOVATIVE PRODUCT LIKE SMART DEDICATED SERVERS Benefit of Public Cloud and Dedicated Servers woven together Offers (a) Reduced deployment time, (b) Reduces Cost, (c) Simple Administration, (d) Backup options and (e) Pay as you go billing Available in various OS like Windows, Linux and Co
Slide 12: Cloud Infra Growing in India at 40% CAGR
CLOUD INFRA GROWING IN INDIA AT 40% CAGR Large Addressable and a very fast growing Industry driven by Higher Consumption of Data and to accelerate further with adoption of newer technologies like Artificial Intelligence, Machine Learning, IOT Improvement in Data Connectivity driving acceptability an
Slide 13: Recent Challenges and Our Approach to Growth
RECENT CHALLENGES AND OUR APPROACH TO GROWTH Decline / Loss of Revenue from few key customers has impacted our Revenue in the last 6 months. FY19 revenue likely to decline as against FY18. Client concentration risk reduced significantly. Expect this to further reduce with our focus on SME/MSME Dispr
Slide 14: Business Strategy and Focus
BUSINESS STRATEGY AND FOCUS Making our product more robust with greater flexibility for usage Provide more options on how to use infra including usage for short-term and other specific usage Various kind of flexibilities like Payment, Commitment Period, Operating System Improving Technical Capabilit
Slide 15: Building Up the Organization to Deliver
BUILDING UP THE ORGANIZATION TO DELIVER Scaling up the Organization… 66 86 100+ A Year Back Jan’18 Around Apr’18 Now Jan’19 Sales / Inside Other Across functions Development / Functions like with focus on Sales Team Engineering Finance, HR significant also Technology & Sales Team in Delhi Ramp-up au
Slide 16: Key Management Team
KEY MANAGEMENT TEAM Tarun Dua, CMD Srishti Baweja, Director B.Tech NIT Kurukshetra B Com (H) from SRCC, C.A. Worked with Yahoo, Value First Worked with PwC, HPCL Responsible for Strategy and Responsible for Strategy, Finance and Management Control Mohamed Imran, Co-Founder, CTO Kesava Reddy, VP Sale
Slide 17: Focus on Augmenting Sales Effort
FOCUS ON AUGMENTING SALES EFFORT Geographically increased presence in Bangalore, Hyderabad and Mumbai; to add presence in more cities in future Active Inside Sales via. Social Media, Blogs, Articles and others Community Development through events like #ThursdayTechTalks, #PyDelhi, #StartupSatruday,
Slide 18: Robust Financials with High Cash Generation and Return
ROBUST FINANCIALS WITH HIGH CASH GENERATION AND RETURN Revenue EBIT 36.3 8.4 29.5 7.0 21.5 18.5 4.1 4.2 9.9 5.2 0.4 1.4 FY14 FY15 FY16 FY17 FY18 6MFY19 FY14 FY15 FY16 FY17 FY18 6MFY19 RoIC and RoE 1 High Cash Flow from Operation 2 48% 44% 15.5 40% 14.1 39% 11.2 36% 41% 6.5 4.2 27% 23% -5.8 19% 27% -
Slide 19: Profit & Loss
PROFIT & LOSS In ₹ Crores FY14 FY15 FY16 FY17 FY18 1H FY19 Loss of Customers Revenue 5.2 9.9 21.4 29.3 36.0 18.4 decelerated growth; to remain weak in 2H Total Revenue 5.2 9.9 21.5 29.5 36.3 18.5 Purchase 2.2 3.1 5.6 8.0 10.2 5.5 Significant expansion Employee benefit 0.9 1.5 2.2 3.5 6.3 3.6 in orga
Slide 20: Balance Sheet
BALANCE SHEET In ₹ Crores FY14 FY15 FY16 FY17 FY18 1H FY19 Share Capital 0.3 0.4 0.4 0.4 11.5 14.2 Increase in Capital post Bonus and IPO Net worth 1.7 4.5 6.8 11.0 17.0 34.6 Borrowings 0.0 1.8 2.6 1.5 0.0 0.0 Payables 0.4 0.5 0.4 0.8 1.9 1.4 Increase due to reclassification of Other Liabilities 0.5
Slide 21: Well Positioned to Capitalize on Future Opportunities
WELL POSITIONED TO CAPITALIZE ON FUTURE OPPORTUNITIES Large Addressable Market Opportunity in Indian Cloud 1 • India’s Public Cloud Infra Market to grow at ~40% CAGR over the next 2-3 years • Wide adoption among SME due to high reliability and low cost of data connection Product Company with Tech Fo
Slide 22: E2E Networks Limited
ANNEXURE E2E NETWORKS LIMITED Contact: investors@e2enetworks.com < 22 >