E2E

E2E Networks Limited Low Latency Hosting in India CIN NUMBER - L72900DL2009PLC341980 Regd. Office : Awfis, First Floor, A-24/9, Mohan Cooperative Industrial Estate, Mathura Road, Saidabad, New Delhi-110044, Phone +91-11-411-33905 Email : cs@e2enetworks.com, Website https://www.e2enetworks.com/ Date- 11.01.2021 Corporate Service Department National Stock Exchange of India Ltd Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai-400051 Ref: NSE Symbol- E2E SUB: Investors Presentation Dear Sir/Madam, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investors Presentation of the Company. The same shall also be uploaded on Company’s website. This is for your information and record. Thanking You, For E2E Networks Limited Neha Baid Company Secretary Cum Compliance Officer Membership No.: 33753 E2E N L ETWORKS IMITED Investor update- Presentation JAN’21 S H AFE ARBOR 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. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. E2E Networks undertakes no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances. < 2> INDEX  E2E overview  Pricing comparison amongst Peers  New Products/ Features added recently  Recent events Impact on E2E  Financials snapshot and Business strategy < 3> E2E Overview Rs in Description* crs Equity share Capital 14.4 Established in 2009, E2E Networks (among largest Indian Public Cloud Companies in India)-: Net Worth1 24.1  Built our own Cloud Infra and developed our Technology Stack 1Includes Equity share capital plus Reserve & Surplus  IPO listing on NSE Emerge in May’2018 received huge response and was subscribed up-to 70 times.  Offers wide range of products (GPU’s , Object store , Smart dedicated servers, Virtual /dedicate compute nodes, backup plans among others)  Most competitive price among its peers, best value in the industry  Easy to understand pricing, More than 1500 active Customers  Round the clock operation center (24 X7 data centres operation)  Experienced leadership team to spearhead growth Shareholding Pattern* Promoters 58.7% Public 41.3% *As on 31st Dec’20 < 5 > E2E B ENEFITS Reliable Low Affordable Self Service Scalable Performance Latency Pricing CloudPlatform Experience better Advantage of Best in Easily launch & Easily Upgrade/ & optimized Indian Industry Plans manage your Downgrade your performance Datacenters nodes server on demand across workloads as per your need < 6> E2E C I P : FOCUS AREAS LOUD NFRA LATFORM High Performance Self Service Experience - General purpose to - Software Defined Infra advanced workloads - For Developers - Production Grade - For Data Scientists uptime/reliability - Devops in Production E2E Cloud Platform Bleeding Edge Compute GPU Acceleration - Latest generation - Advanced Cloud GPUs CPU/GPU infrastructure - One Click provisioning with - Faster hardware refresh NVIDIA VGPU/NGC cycles platform < 7> E2E S P S M T EASONED AND ROFESSIONAL ENIOR ANAGEMENT EAM Mohamed Imran CTO Srishti Baweja Whole time Director Kesava Reddy, VP Sales, Sales & Marketing Himank Saini Sadh, VP Delivery Product Delivery Tarun Dua Chairman&Managingdirector Varun Taneja CFO Neha Baid Company Secretary & Compliance Officer < 8> E2E C C P OMPARISON OF OST VS EERS Description E2E GCP AWS Digital Ocean Azure Plan Type M.60GB n1-standard-8 Linux on m4.2xlarge Memory-Optimized B16MS vCPU 12 8 8 8 16 RAM 60 30 32 64 64 Storage 450 GB 2 x 375 GB EBS only 600 GB 128 GB Price Per Month Rs 4,745 Rs 20,783 Rs 21,404 Rs 31,025 Rs 32,120 Price Per Hour Rs 6.5 Rs 28.47 Rs 29.32 Rs 42.5 Rs 44 Source https://www.e2enetworks.com/memory-intensive-computing-ssd-series-m https://cloud.google.com/compute/all-pricing https://aws.amazon.com/ec2/pricing https://digitalocean.com/pricing/ https://azure.microsoft.com/en-in/pricing Note: - ₹Price per Month and Per Hour has been rounded for ease of representation - Price in India or APAC as published in respective website and conversion as on Jan’ 21 < 9> NNeeww FFeeaattuurreess //PPrroodduuccttss aaddddeedd rreecceennttllyy < 10> P F / RODUCTS EATURES ADDED TO BE ADDED Reserved IP BitNinja Integration 1-Click Deployment Manage your IP addresses Allows user to easily enable Quick deployment using pre- from the intuitive MyAccount BitNinja Server security baked Images for popular portal of E2E Cloud. modules. applications CDN Kubernetes Object Store Allows to create master and Global content delivery network Store, backup and archive worker nodes in 1-click . Worker that distributes your content & web content for your web apps or data nodes can be launchedin desired pages to end-users with minimal from AI/ML pipelines. compute node SKU’s latency, creating enhanced experiences for your customers. < 11> P F / RODUCTS EATURES ADDED TO BE ADDED RDS* Block Storage*  Simple One Click Setup  Simple One Click Setup, and Management deployment and Management  Great performance and flexibility  Easy backup and restoration *Expected date of launch FY 20-21 or beyond < 12> GPU @ E2E NETWORKS CLOUD Currently offering:- Machine Learning Computer Vision  NVIDIAA100 GPU Cloud servers  NVIDIA V100 GPU Cloud servers Deep Learning for NLP Object Recognition  NVIDIA RTX8000 GPU Cloud servers  NVIDIA T4 GPU Cloud servers Visual Computing One Click Hourly/Monthly 60 Second NGC Ongoing vDWS/VCS via Billing currently via CLI integration with VGPU NGC for One Click < 13> GPU A100 C C E2E C P OST OMPARISON OF OST VS EERS E2E Oracle GCP Description Plan Type GDC.A100-16.120GB VM.GPU4.1 e2-highmem-16 16 vCPU 14 16 120 GB RAM 224 GB 128 GB 40GB GPU Memory 40 GB 40 GB 1500 GB SSD Storage - 1500 GB Rs 75,000 Price Per Month Rs 1,63,060 Rs 2,28,600 Price Per Hour Rs 170 Rs 223.37 Rs 313 Source https://www.e2enetworks.com/gpu https://www.oracle.com/in/cloud/partners/gpu.html https://cloud.google.com/compute/vm-instance-pricing Note: - ₹ Price per Month and Per Hour has been rounded for ease of representation - Price in India or APAC as published in respective website and conversion as on Jan’21 < 14> GPU V100 C C E2E C P OST OMPARISON OF OST VS EERS Description E2E GCP AWS Azure Plan Type GPU.V100 n1-custom-12-65536 p3.2xlarge NC6s_v3 vCPU 8 12 8 6 RAM 120 64 61 112 GPU Memory 32 GB 16 GB 16 GB 16 GB Storage 900 GB 1125 GB Extra charges 736 GB Price Per Month Rs 50,000 Rs 1,21,739 Rs 1,63,615 Rs 2,55,500 Price Per Hour Rs 100 Rs 166.8 Rs 224.1 Rs 350 https://azure.microsoft.com/en-in/pricing Source https://www.e2enetworks.com/gpu https://cloud.google.com/compute/gpus-pricing https://aws.amazon.com/ec2/instance-types/p3/ Note: - ₹ Price per Month and Per Hour has been rounded for ease of representation - Price in India or APAC as published in respective website and conversion as on Jan’21 < 15> GPU T4 C C E2E C P OST OMPARISON OF OST VS EERS Description E2E AWS GCP Plan Type GPU.T4 g4dn.2xlarge n1-highmem-8 vCPU 12 8 8 RAM 50 32 52 GPU Memory 16 16 16 Storage 900 GB 225 GB 1125 GB Price Per Month Rs 17,500 Rs 40,150 Rs 44,895 Price Per Hour Rs 30 Rs 55 Rs 61.5 Source https://www.e2enetworks.com/gpu https://aws.amazon.com/ec2/instance-types https://cloud.google.com/compute/gpus-pricing Note: - ₹ Price per Month and Per Hour has been rounded for ease of representation - Price in India or APAC as published in respective website and conversion as on Jan’21 < 16> RReecceenntt eevveennttss IImmppaacctt oonn EE22EE < 17> COVID/L OCKDOWN IMPACT ON BUSINESS New Supply Chain Work From Customer Products/ Disruptions Home Sentiment Features  Hardware Supply  Most Teams including Existing Customers New products / chain was impacted sales are working and Prospective features launches due to general shut from home currently Customers have a cost impacted as priority is down in logistics. and using online savings focus, this to service existing meetings to interact results in revenue needs fully.  There has been with each other and contraction of existing price volatility and customers. customers, some logo delays in churn and increased Procurement, traction in new Delivery of Servers customer acquisition & Equipment’s. < 18> FFiinnaanncciiaallss ssnnaappsshhoott && bbuussiinneessss ssttrraatteeggyy < 19> O A G UR PPROACH TO ROWTH  E2E continued effort to build a superior Public Cloud Product is seeing traction with: o Significant number of self-service customers added in last few months o Sales effort seeing momentum with gross new additions every month o Growth opportunities in Digital Transformation, AI, SME among other compute workloads ~ Monthly Revenue* (in Rs cr) ~ Revenue* from Top 10 customers as % of Total 3.33 3.28 3.17 3.00 27% 2.85 2.67 2.48 2.30 23% 2.12 22% 21% April'20May'20June'20 July'20 Aug'20 Sep'20 Oct'20 Nov'20 Dec'20 April'20 July'20 Oct'20 Dec'20 • Prepaid Cloud Infra Credits not utilized at end of every month have been adjusted with monthly revenue and Previous month numbers have also been adjusted to make it comparable with current period numbers < 20> P & L ROFIT OSS INR Lakhs FY 19-20 FY 20-21 H1 (April'19 to H2 (Oct'19 to Full Year (Apr'19 H1 (April'20 to Q3 (Oct'20 to YTD (Apr'20 to 1 2 3 1 4 4 Sep'19) Mar'20) to Mar'20) Sep'20) Dec'20) Dec'20) Revenue 1,237.0 1,272.6 2,509.6 1,542.4 978.1 2,520.5 Other Income 164.9 56.6 221.5 51.6 29.6 81.2 Total Revenues* 1,401.9 1,329.2 2,731.1 1,594.0 1,007.8 2,601.8 Purchase of services 554.4 538.9 1,093.3 608.0 323.4 931.3 Employee benefits expense 542.5 509.2 1,051.7 425.3 210.1 635.3 Other Opex 236.9 248.3 485.2 149.4 101.9 251.3 Total expenses 1,333.8 1,296.4 2,630.2 1,182.6 635.3 1,818.0 EBITDA* 68.1 32.9 100.9 411.4 372.4 783.8 EBITDA % 4.9% 2.5% 3.7% 25.8% 37.0% 30.1% Depreciation 467.4 546.7 1,014.1 402.8 388.0 790.8 EBIT* ( 399.4) ( 513.8) (913.2) 8 .6 (15.5) ( 7.0) Interest expense** 8.1 10.1 18.2 16.5 15.8 32.3 PBT ( 407.5) (523.9) (931.4) (7.9) ( 31.3) ( 39.3) Tax 3.7 0.2 3.9 0.2 - 0.2 PAT ( 411.2) ( 524.1) (935.3) (8.1) (31.3) (39.5) *Includes Other income ** Includes payment gateway charges 1 Limited reviewed 2 Second half figure is balancing figure between full year audited figure and first half published figure 3 Audited 4 Unaudited < 21> B S ALANCE HEET AS AT 1 2 1 3 INR Lakhs Sep'19 Mar'20 Sep'20 Dec'20 Share Capital 1,429 1,429 1,438 1,438 Networth 4 2 ,955 2 ,438 2 ,445 2 ,415 Payables 209 171 180 219 Other Liabilities 270 224 345 747 Total Equity & Liabilities 3,434 2,832 2,970 3,381 Gross Fixed Assets 5,680 5,638 6,514 7,428 Net Fixed Assets 1,306 961 1,654 2,172 Trade receivables 41 68 47 41 Cash and Cash Equivalents 1,568 1,241 746 590 Other Assets 519 562 522 578 Total Assets 3,434 2,832 2,970 3,381 1 Limited reviewed 2 Audited 3 Unaudited 4 Includes Equity share capital plus Reserve & Surplus < 22 > B S F USINESS TRATEGY AND OCUS Products with greater flexibility for usage  Interfaces on how to use infra including usage for short-term say using Jupyter Notebooks with GPU Kernels  Flexible Payments, Commitment Period, Operating Systems, Control Panels Improving Technical Capabilities  Build capabilities in terms of important micro-services using VGPU/NGC  Solution Guides and One Click appliances to drive adoption Driving growth  Focusing on SME and high velocity startups by building process driven Sales  Scaling technology driven marketing & sales organization to capitalize on huge market opportunity < 23> W P C F O ELL OSITIONED TO APITALIZE ON UTURE PPORTUNITIES Large Addressable Market Opportunity in Indian Cloud 1 • 64% of the Indian Organizations expect to Increase Demand for Cloud Computing as per International Data Corporation, COVID-19 Impact on IT spending Survey, May 2020 Product Capabilities 2 • E2E product offering stands-out given the significant advantages in terms of homegrown software defined infrastructure capabilities • Stronger product enables us to acquire customers with bigger LTV Focus : Cloud GPU workloads 3 • AI/ML/DL & Inference for NLP and Computer Vision • Visual Computing Cloud Workstations • Big Data Workloads based on Apache Spark 3.0, Blazing SQL platforms Partnerships: Intel ,NVIDIA ,Red Hat and Others 4 • Member of Intel cloud builders' program with early access to Intel’s roadmap • Partnering with NVIDIA for gaining visibility into the AI/ML and predictive analytics ecosystems • Partnering with KTech CoE Data Science & AI Government of Karnataka (GoK) - powered by NASSCOM to Pave Way to an AI driven digital future • Red Hat CCSP Partnership • Other on-going licensing relationship are with SoftwareOne (LAR for Microsoft ), BitNinja, Cloud Linux Inc, Connectwise, LLC (R1Soft), and through their distribution partners with Softaculous , C Panel and Plesk. < 24> A NNEXURE E2E N L ETWORKS IMITED Contact: Investors@e2enetworks.com < 25>