AGC Networks Limited Full year results – 31st March, 2012

10th May, 2012

S K Jha Managing Director and CEO

AGC Overview

• Leading ICT Solutions provider and integrator

• Strong customer, channel and technology

partner base

• Higher profitability due to focused quadrant

and a differentiated vertical approach

• Taking Indian expertise to global markets

About AGC

Industry Overview

The Evolution of IT - Then

Unified Communications

Business Applications

Networking

Information Security, Storage, Servers

The Evolution of IT - Now

Business Applications

Networking

Information Security, Storage, Servers

Unified Communications

Web

Email

Chat IVR

Social Media

Telephony

Twitter

CTI

Video

The Void

Global Leaders in IT Services $ 100+ Bn.

Global Leaders in Networking and Software $20 - $70 Bn.

Large/ Major IT Services SI’s $5 - $17 Bn.

Small/ Regional IT Services SI’s $50 - $500 Mn.

Small Gap

Large Gap

Huge Gap

Sources: SEC Filings, Company Annual Reports

aims to fill this gap:- • Transformational engagements • Global Customer relationships and service delivery • Symbiotic relationships with key technology alliance partners

AGC Transformation

Pre Acquisition Post Acquisition*

Product “Unified Communications (UC)” UC + Network Infrastructure + Server & Storage + Network Security

Partners Avaya Multiple Partnerships & Alliances

Place India + ANZ India + ANZ + MEA + US+ Philippines

Price Product Led, Avaya Determined Service Led, Market Determined

Position Avaya Service Partner Communication Solutions Integrator

Growth Strategy > Multiproduct, Multipartner, Multi Geography > 103 Strategy

Single Offering

*Avaya Inc sells 59.13% stake in AGC Networks to the Essar Group. Essar completes acquisition by acquiring another 20%

Transformational Engagements

Solutions

Unified Communications

IP Telephony

Contact Center

Video

Audio

Conferencing

Web

Social Media

Network Infrastructure

Switching

Routing

Metro

Wire Line

Wireless

WiMax

Network Security

Data Center & Virtualization

Computing

Platform

Server

Storage

Enterprise Applications

Business Apps •SAP •Oracle

Customer Experience •IVR •CTI •CRM

Industries BFSI Mfg,

Energy Travel &

Hospitality Healthcare IT/ITeS Telecom Govt &

PSUs SMB

Solutions

Services

Managed Services Deployment Services Maintenance

Services Professional

Services

Global Customer Relationships

Others Manufacturing/Industrial

Telecom

GPD

BFSI IT & ITeS

2500+ strong, diverse customer base including Fortune 500 companies

Relationships with OEM‘s

60+ strategic relationships with key technology alliance partners

Global Footprints

12

Aegis Presence

South Asia (India and Sri Lanka)

Australia & New Zealand

UK

Philippines

North America

New Zealand Australia

Argentina

Philippines

India

Sri Lanka

South Africa

Middle East

United Kingdom

AGC Presence

AGC to leverage on Aegis geographical presence for future scale-up

Global footprint across 9 countries

Financials

590

998

0

200

400

600

800

1,000

1,200

FY - 2010-2011 FY - 2011-2012

Revenue in Rs Crs

Financials

AGC Revenue

• Strong Revenue Growth of 56%, up from Rs. 194 Crs in the Q4 for 2010-2011 to Rs 303 Crs in Q4 of FY 11-12

• Revenue which was Rs 590 Crs in FY 2010-2011 has increased to Rs 998 Crs in FY 11-12 with 69% Growth YoY

• EBIDTA in 2010-11 has been increased from Rs 52.4 Crs to Rs 108.5 Crs in FY11-12 with 107% Growth.

• Diluted EPS has increased from Rs 20.52 per share to Rs 44.57 per share in FY 11-12

Financials

EBIDTA PBT

Margin % 8.6%

Rs

in C

rs

Rs

in C

rs

7.3%

PAT EPS

Rs

in C

rs

11% 9%

6.4% 5%

52.4

108.5

-

20.0

40.0

60.0

80.0

100.0

120.0

FY - 2010-2011 FY - 2011-2012

43.04

86.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

FY - 2010-2011 FY - 2011-2012

Margin %

29.2

63.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY - 2010-2011 FY - 2011-2012

20.52

44.57

0.0 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

FY - 2010-2011 FY - 2011-2012

Operating Highlights

Particulars Quarter ended % FY Ended %

(Rs in Crs) Mar-12 Mar-11 Growth 2011-12 2010-11 Growth

Revenue 303 194 56% 998 590 69%

EBITDA 41.7 12.4 235% 108.5 52.4 107%

EBITDA Margin (%) 14% 6% - 11% 9% -

PBT 35.2 10.3 240% 86.2 43.0 100%

PBT Margin (%) 12% 5% - 9% 7% -

PAT 23.5 7.5 212% 63.4 29.2 117%

PAT Margin (%) 8% 4% - 6% 5% -

Diluted EPS in Rs (Annualised) 44.57 20.52 117% 44.57 20.52 117%

Quadrant Wise Revenue – FY 2011-2012

Product & Service Mix – Quarterly Revenue– FY11-2012

Strategy & Highlights

Changed world order

What was relevant yesterday is not relevant today

Yesterdays USP’s are today’s must haves

We have a changed world order

Yesterdays alliances are today’s competition

Google, Yahoo, Skype are rearing to fuel further disruptions

Strategy Implementation Plan

India + High Growth Markets

Global Markets

Product Margin

Service Margin

Sales & Marketing

General & Administration

Leverage India OEM Relationships globally

India Team for Professional Services

Higher Service component, AMC support (L1-L2) from India

Local + India Support Local + Aegis Relationships

Leverage on Aegis Learning from “International Expansion”

Focus on Profitable Growth

Local Infrastructure Aegis Infrastructure

Key Highlights

• Revenues of Rs 303 Crs with EBITDA of Rs 41.7 Crs for Q4 2011

with EBIDTA Margin of 13.8%

• Increase of 56% in Revenue and 235% in EBIDTA, as compared to

Q4 of the last year

• Revenue for FY 2011-12 stands at Rs 998 Crs with EBITDA of Rs

108.5 with EBIDTA Margin of 11%.

• Revenue jump of 69% and EBIDTA of 107% in the last financial year

• On strong growth path with our key 10 cube strategy & significant

increase in OEM partnerships

Let’s begin!

Slide Number 1Slide Number 2About AGCSlide Number 4The Evolution of IT - ThenThe Evolution of IT - NowThe VoidAGC TransformationTransformational EngagementsGlobal Customer RelationshipsRelationships with OEM‘sGlobal FootprintsSlide Number 13FinancialsFinancialsOperating HighlightsQuadrant Wise Revenue – FY 2011-2012Product & Service Mix – Quarterly Revenue– FY11-2012Slide Number 19Changed world orderStrategy Implementation PlanKey HighlightsSlide Number 23