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

11th May, 2012

S K Jha Managing Director and CEO

AGC Overview

• Leading ICT Solutions provider and integrator

• One of the largest customer, channel and

technology partner base in India

• Higher profitability due to focused quadrant

and a differentiated vertical approach

• Taking Indian expertise to global markets

About AGC

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

Growth Strategy

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

103 Strategy > Multiproduct, Multipartner, Multi Geography

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

Strategic Partners

Leverage strategic alliances to drive the growth

Platinum

Elite

Gold

Platinum

Platinum

Strategic

Platinum

Gold

Platinum

Gold

Recognitions

APAC Commercial Partner of the Year 2011 – Juniper APAC Technical Excellence Partner of the Year 2011 - Avaya Most Extreme Partner of the Year 2011 – Extreme Networks APAC Partner of the Year 2011 – Aspect Top Performing Partner of the Year 2011 – Nice APAC Best Service Partner - Polycom Highest Growth Partner of the Year – Jabra APAC Best Promising Partner – Christi Best Performance BFSI, Enterprise - AMX Best Sales Partner BFSI , Enterprise – Samsung Best Emerging Partner of the Year - Citrix

12

Global Footprints

13

Aegis Presence

South Asia (India and Sri Lanka)

Australia & New Zealand

UK

Philippines

North America

New Zealand Australia

Argentina

Philippines

India

South Africa

Saudi Arabia

United Kingdom

AGC Presence

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

Global footprint across 11 countries

Saudi Arabia

UAE Singapore

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”

Our strategy will help us outperform industry

Local Infrastructure Aegis Infrastructure

Financials

194

303

-

50

100

150

200

250

300

350

Q4 FY'11 Q4 FY'12

56%

Financials – Revenue (Rs Crores)

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

Revenue Growth largely due to new practices like Data, Security, Storage and new geographies (Middle East & Africa)

590

998

-

200

400

600

800

1,000

1,200 69%

241

303

-

50

100

150

200

250

300

350

Q3 FY'12 Q4 FY'12

26%

(Corresponding Quarter PY) Sequential (QoQ) (YoY)

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

Margin %

Financials – YoY

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 %

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 Quarter Ended FY Ended

(Corresponding Quarter PY)

Sequential (Q0Q)

(YoY) (Rs in Crs) Q4 FY'12 Q4 FY'11 Growth Q4 FY'12 Q3 FY'12 Growth FY'12 FY'11 Growth

Revenue 303 194 56% 303 241 26% 998 590 69%

GM 82 43 91% 82 62 31% 256 163 58% (%) 27% 22% 27% 26% 26% 28%

EBITDA 41.7 12.4 235% 41.7 29.3 42% 108.5 52.4 107% (%) 14% 6% 14% 12% 11% 9%

PBT 35.2 10.3 240% 35.2 23.0 53% 86.2 43.0 100% (%) 12% 5% 12% 10% 9% 7%

PAT 23.5 7.5 212% 23.5 18.5 27% 63.4 29.2 118% (%) 8% 4% 8% 8% 6% 5%

EPS (Annualised in Rs) 44.6 20.5 117% 44.6 20.5 117%

Dividend (Rs.) 15.0 4.50 233%

Dividend Yield % 6.4% 1.96%

ROCE % 24% 11%

Quadrant Wise & Geo Wise Revenue – FY’11 & FY’12

93%

7%

India Rest of World

38%

37%

18%

7%

FY'12

UC - 381 Crs

Business Application & PS - 370 Crs

NI - Data & N/W - 178 Crs

ISS & SS - 69 Crs

46%

43%

9% 2% FY'11

UC - 273 Crs

Business Application & PS - 252 Crs

NI - Data & N/W - 55 Crs

ISS & SS - 10 Crs

62%

38%

India Rest of World

Product & Service Mix – QoQ Revenue

-

50

100

150

200

250

300

350

Q3 FY'11 Q4 FY'11 Q1 FY'12 Q2 FY'12 Q3 FY'12 Q4 FY'12

Rs C

rore

s

Revenue - Product Revenue - Service

66% 71% 70% 72% 67% 68%

34%

29% 30%

28% 33%

32%

132

194 196

257 241

303

Steady Growth despite seasonality in business

Key Highlights

Based on the current growth trajectory, we are confident of comfortably

outperforming the industry average growth rates.

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

The AMC as engine of Growth to kick in the current year

Let’s begin!