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E2E Networks Limited Investor Presentation 2021

Mar 17, 2021

60804_rns_2021-03-17_ac04ad9f-ffc0-4eb3-ad19-c8181536a370.pdf

Investor Presentation

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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 : [email protected], Website https://www.e2enetworks.com/

Date- 17.03.2021

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

Digitally signed by NEHA BAID DN: c=IN, o=Personal, postalCode=110052, st=Delhi, 2.5.4.20=4405ef825482f87554543529ea41c651edf256da 2c4b61605aefc0a3e1ada12b, serialNumber=3a81df6a442f63cb65f0a61204595b9938c1 a0402b3e82fe83d72c3c7a43f569, cn=NEHA BAID Date: 2021.03.17 19:19:40 +05'30'

Neha Baid Company Secretary Cum Compliance Officer Membership No.: 33753

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E2E NETWORKS LIMITED Investor update- Presentation MAR’21

SAFE HARBOR

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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.

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INDEX

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 E2E overview

 Pricing comparison amongst Peers

 Recent Addition in Datacentre region and Product/Features

 Recent events Impact on E2E

 Financials snapshot and Business strategy

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E2E overview

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E2E Overview

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Description* Rs in
crs
Rs in
crs
Equity share Capital 14.4 Established in 2009, E2E Networks (among largest Indian Public Cloud
Net Worth1 24.1 Companies in India)-:
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
/dedicated 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)
Shareholding Pattern* Experienced leadership team to spearhead growth
Promoters 58.7%
Public 41.3%

*As on 31[st] Dec’20

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E2E BENEFITS

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Reliable Low Affordable Performance Latency Pricing Experience better Advantage of Best in & optimized Indian Industry Plans performance Datacenters across workloads

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Self Service Cloud Platform

Easily launch & manage your nodes

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Scalable

Easily Upgrade/ Downgrade your server on demand as per your need

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E2E CLOUD INFRA PLATFORM: FOCUS AREAS

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  • 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

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E2E SEASONED AND PROFESSIONAL SENIOR MANAGEMENT TEAM

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Mohamed Imran
CTO
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Srishti Baweja

Whole time Director Kesava Reddy, VP Sales , Sales & Marketing Himank Saini Sadh, VP Delivery Product Delivery Varun Taneja CFO

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Tarun Dua

Chairman & Managing director

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Neha Baid

Company Secretary & Compliance Officer

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Pricing Comparison Amongst Peers

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E2E COMPARISON OF COST VS PEERS

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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://awsamazoncom/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

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GPU CLOUD @ E2E NETWORKS

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Currently offering:- Machine Learning Computer Vision

NVIDIA A100 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
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GPU A100 COST COMPARISON OF E2E COST VS PEERS

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E2E Oracle GCP
Description
Plan Type GDC.A100-16.120GB VM.GPU4.1 e2-highmem-16
vCPU 16 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
https://www.e2enetworks.com/gpu https://www.oracle.com/in/cloud/partners/gpu.html https://cloud.google.com/compute/vm-instance-pricing
Source
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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

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GPU V100 COST COMPARISON OF E2E COST VS PEERS

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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
Source https://www.e2enetworks.com/gpu https://cloud.google.com/compute/gpus-pricing https://aws.amazon.com/ec2/instance-types/p3/ 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

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GPU T4 COST COMPARISON OF E2E COST VS PEERS

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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:
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  • ₹ 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

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Recent Addition in Datacentre region and Product/Features

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NEW ZONE & PRODUCT/FEATURES ADDED RECENTLY

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Mumbai Zone DBaas
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Block Storage
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  • Setup and run your relational database in cloud

  • Provides flexibility to increase or decrease storage

  • Get your trusted E2E cloud in a New Zone

  • Easy administration

  • Attach additional highspeed volume for E2E node

  • Optimized for common RDBMs use cases

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  • Flexible plans for varying configurations of CPU, RAM and Storage

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PRODUCTS EATURES ADDED RECENTLY / F

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Reserved IP

BitNinja Integration

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Allows user to easily enable
BitNinja Server security
modules.
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Manage your IP addresses from the intuitive MyAccount portal of E2E Cloud.

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Kubernetes

Object Store Store, backup and archive content for your web apps or data from AI/ML pipelines.

Allows to create master and worker nodes in 1-click . Worker nodes can be launched in desired compute node SKU’s

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1-Click Deployment
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Quick deployment using pre-
baked Images for popular
applications
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CDN
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Global content delivery network that distributes your content & web pages to end-users with minimal latency, creating enhanced experiences for your customers.

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Recent events on E2E Impact

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OCKDOWN IMPACT ON BUSINESS COVID/L

Supply Chain Disruptions

Customer Sentiment

Work From Home

  • Most Teams including sales are working from home currently and using online meetings to interact with each other and customers.

  • Existing Customers and Prospective Customers have a cost savings focus, this results in revenue contraction of existing customers, some logo churn and increased traction in new customer acquisition

  • Hardware Supply chain was impacted due to general shut down in logistics.

  • There has been price volatility and delays in Procurement, Delivery of Servers & Equipment’s.

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New Products/ Features

  • New products / features launches impacted as priority is to service existing needs fully.

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Financials snapshot & business strategy

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OUR APPROACH TO GROWTH

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  • E2E continued effort to build a superior Public Cloud Product is seeing traction with:

  • Significant number of self-service customers added in last few months

  • Sales effort seeing momentum with gross new additions every month

  • Growth opportunities in Digital Transformation, AI, SME among other compute workloads

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~ Monthly Revenue (in Rs cr) ~ Revenue from Top 10 customers as % of Total
3.17 [3.28 3.33 3.38 3.27]
3.00
27%
2.85
2.67
2.48
2.30
23%
2.22 2.12 23%
22%
21%
Mar'20 April'20 May'20 June'20 July'20 Aug'20 Sep'20 Oct'20 Nov'20 Dec'20 Jan'21 Feb'21
April'20 July'20 Oct'20 Dec'20 Feb'21
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~ Revenue* from Top 10 customers as % of Total

*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

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PROFIT & LOSS

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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
Sep'19) 1 Mar'20) 2 to Mar'20) 3 Sep'20) 1 Dec'20) 4 Dec'20) 4
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
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2 Second half figure is balancing figure between full year audited figure and first half published figure 3 Audited

4 Unaudited

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BALANCE SHEET AS AT

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INR Lakhs Sep'19 [1] Mar'20 [2] Sep'20 [1] Dec'20 [3]
Share Capital 1,429 1,429 1,438 1,438
4
Networth 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
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3 Unaudited

4 Includes Equity share capital plus Reserve & Surplus

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BUSINESS STRATEGY AND FOCUS

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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

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WELL POSITIONED TO CAPITALIZE ON FUTURE OPPORTUNITIES

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 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

  • 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.

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ANNEXURE
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E2E NETWORKS LIMITED Contact: [email protected]

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