Slide 1: Sasken Group Financial Results for H1 and Q2 FY07
Sasken Group Financial Results for H1 and Q2 FY07 October 2006 www.sasken.com 1 © Copyright 2006 Sasken Communication Technologies Limited Sasken confidential
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 – Q2 FY07 - Sasken Group
Performance Snapshot – Q2 FY07 - Sasken Group Consolidated Revenues ( Rs. Million) Services – Products Revenue Mix ( Rs. Million) 1200 1400 1,112.90 1175.45 1000 875.26 1200 911.23 800 1000 863.94 708.76 800 600 600 400 400 200 155.18 35.97 62.55 200 0 0 Q2 FY06 Q1 FY07 Q2 FY07 Q2 FY06 Q1 FY07 Q2 FY
Slide 4: Performance Snapshot – Q2 FY07 - Sasken Group without Botnia
Performance Snapshot – Q2 FY07 - Sasken Group without Botnia Consolidated Revenues ( Rs. Million) Services – Products Revenue Mix ( Rs. Million) 1200 1400 1011.09 1000 875.26 1200 1073.64 911.23 800 1000 863.94 708.76 800 600 600 400 400 200 155.18 35.97 62.55 200 0 0 Q2 FY06 Q1 FY07 Q2 FY07 Q2 FY06
Slide 5: Performance Snapshot – H1 FY07- Sasken Group
Performance Snapshot – H1 FY07- Sasken Group Consolidated Revenues ( Rs. Million) Services – Products Revenue Mix ( Rs. Million) 2500 2500 1988.16 2086.68 2000 2000 1541.36 1500 1331.99 1500 1000 1000 500 209.37 500 98.52 0 0 H1 FY06 H1 FY07 H1 FY06 H1 FY07 Services: 49% Growth: 35% Products: (53)%
Slide 6: Performance Snapshot – H1 FY07- Sasken Group without Botnia
Performance Snapshot – H1 FY07- Sasken Group without Botnia Consolidated Revenues ( Rs. Million) Services – Products Revenue Mix ( Rs. Million) 2500 2500 2000 1886.35 1984.87 2000 1541.36 1500 1331.99 1500 1000 1000 500 209.37 500 98.52 0 0 H1 FY06 H1 FY07 H1 FY06 H1 FY07 Services: 42% Growth: 29% P
Slide 7: Consolidated Results – Q2 FY07
Consolidated Results – Q2 FY07 www.sasken.com 7 © Copyright 2006 Sasken Communication Technologies Limited
Slide 8: Income Statement Summary (Consolidated)
Rs. Million Income Statement Summary (Consolidated) Q2 FY07 % Q1 FY07 % Q2 FY06 % Growth over Q1 FY07 Q2 FY06 (QoQ) (YoY) Revenues 1,175.45 100.0 911.23 100.0 863.94 100.0 29% 36% Cost of Revenue 708.56 60.3 598.50 65.7 488.28 56.5 18% 45% R&D1 42.11 3.6 29.11 3.2 42.49 4.9 45% (1)% Gross Profit 424
Slide 9: Segmental Results (Consolidated)
Segmental Results (Consolidated) Rs. Million Q2 FY07 Q1 FY07 Q2 FY06 Growth over Q1 FY07 Q2 FY06 (QoQ) (YoY) Revenues 1,175.45 911.23 863.94 29% 36% Software Services 1,112.90 875.26 708.76 27% 57% Products 62.55 35.97 155.18 74% (60)% EBITDA 220.15 130.76 178.41 68% 23% Software Services 266.86 202
Slide 10: Balance Sheet Summary (Consolidated)
Balance Sheet Summary (Consolidated) Rs. Million Sep 30, 2006 % Jun 30, 2006 % Liabilities Share capital 283.98 5.6 279.77 7.2 ESOP Outstanding 5.86 0.1 7.10 0.2 Reserves & Surplus 3,698.89 73.6 3,590.77 92.4 Deferred Tax Liability 4.0 0.1 Borrowing 1,034.79 20.4 6.89 0.2 Total Liabilities 5,027.50
Slide 11: Services Business
Services Business www.sasken.com 11 © Copyright 2006 Sasken Communication Technologies Limited
Slide 12: Revenue Growth with EBITDA: Services (Consolidated)
Revenue Growth with EBITDA: Services (Consolidated) (K$) CAGR : 63% over 2 Years CQGR : 12% over 9 Qtrs 24,076 22,000 20,000 19,122 18,000 16,267 16,301 16,620 16,000 14,758 14,366 14,000 12,000 11,363 11,267 10,000 9,040 8,000 5,726 6,000 4,548 4,417 4,055 3,216 3,350 3,579 4,000 2,658 1,464 1,251
Slide 13: Services Metrics
Services Metrics Services Revenue Mix - Delivery 11% 6% 7% 15% 8% 15% 20% 23% Q2 FY06 Q1 FY07 Q2 FY07* Q2 FY07++ 69% 79% 77% 70% T & M Offshore T & M Onsite Fixed Price * Without Botnia ++ With Botnia 100% Services Utilization Services EBITDA % 90% 79.1% 24.5% 80% 72.8% 74.4% 24.0% 24.0% 70% 60% 23.
Slide 14: Number of Tier 1 customers
Relationships with Tier 1 Customers - Cumulative 20 18 18 18 16 Number of Tier 1 customers 14 12 10 8 6 5 5 5 4 4 2 2 2 1 1 0 All >$1M >$3M >$10M >$20M Cumulated based on trailing 12 months Services revenues in USD Q1 FY 07 Q2 FY 07 www.sasken.com 14 © Copyright 2006 Sasken Communication Technologie
Slide 15: Products Business
Products Business www.sasken.com 15 © Copyright 2006 Sasken Communication Technologies Limited
Slide 16: Products - Milestone Targets and Status
Products - Milestone Targets and Status Milestones 2.5G 2.5G 3G 3G ‘E-Series’ ‘M-Series’ ‘M-Series’ ‘S-Series’ Identify Lead Semiconductor Q1 FY06 Q1 FY05 Q4 FY04 Q4 FY03 Partner Product demo on lead chipset Q4 FY06 Q3 FY06 Q3 FY06 Q3 FY05 First Design In * Q4 FY06 Q4 FY06 Q3 FY05 First Design Win *
Slide 17: Revenue Mix - Products
Revenue Mix - Products Q2 FY 06 Q1 FY 07 Q2 FY 07 3% 8% 16% 20% 4% 39% 53% 77% 80% Customization Licensing Royalty www.sasken.com 17 © Copyright 2006 Sasken Communication Technologies Limited
Slide 18: Corporate Metrics
Corporate Metrics www.sasken.com 18 © Copyright 2006 Sasken Communication Technologies Limited
Slide 19: Human Resources Metrics
Human Resources Metrics 4000 3,373 3500 2,897 3000 2,466 2500 2000 1500 1000 675 474 307 469 322 476 500 0 Q2 FY06 Q1 FY07 Q2 FY07 Total Employees Gross Adds Net Adds Voluntary Attrition % - 23.2% in Q2 FY07 vs 21.0% in Q1 FY07 and 23.4% in Q2 FY06 www.sasken.com 19 © Copyright 2006 Sasken Communica
Slide 20: Geography Wise Revenue
Geography Wise Revenue Q2 FY 06 Q1 FY 07 Q2 FY 07 5% 6% 16% 32% 35% 28% 34% 24% 18% 31% 33% 38% North America Europe India APAC www.sasken.com 20 © Copyright 2006 Sasken Communication Technologies Limited
Slide 21: Customer Concentration
Customer Concentration 90 % 87.2 86.6 87 83.8 84 81 77.3 78 76.7 74.2 75 72 Q2 FY06 Q1 FY07 Q2 FY07 Top 5 Top 10 www.sasken.com 21 © Copyright 2006 Sasken Communication Technologies Limited
Slide 22: Financial Information – H1 FY07
Financial Information – H1 FY07 www.sasken.com 22 © Copyright 2006 Sasken Communication Technologies Limited
Slide 23: Income Statement Summary – H1 FY07 (Consolidated)
Income Statement Summary – H1 FY07 (Consolidated) H1 FY07 % H1 FY06 % Growth Rs. Million Revenues 2086.68 100.0 1541.36 100.0 35% Cost of Revenue 1307.06 62.6 912.72 59.2 43% R&D1 71.22 3.0 83.55 5.4 (15)% Gross Profit 708.40 33.9 545.09 35.4 30% SG&A 357.49 17.1 289.25 18.8 24% EBITDA 350.91 16.8 2
Slide 24: Segmental Results (Consolidated) – H1 FY07
Segmental Results (Consolidated) – H1 FY07 Rs. Million H1 FY07 H1 FY06 % Growth Revenues 2086.68 1541.36 35% Software Services 1988.16 1331.99 49% Products 98.52 209.38 (53)% EBITDA 350.93 255.84 37% Software Services 469.03 270.88 73% Products (118.1) (15.04) - EBITDA % 16.8% 16.6% Software Service
Slide 25: Thank You
Thank You www.sasken.com 25 © Copyright 2006 Sasken Communication Technologies Limited