FY08 Results Call

Subex LimitedBangalore, India

Proprietary and Confidential

FY08 in Perspective

Proprietary and Confidential

Product Business – Operating Margin

-40-20

020406080

100120

FY08Q1

FY08Q3

FY08

Revenue

Expenses

OperatingProfit

Operating Profit = Total Profit excl. Depreciation, Tax and Provision for Bad Debts

All Figures in US$ Mln.

Proprietary and Confidential

Reasons for Poor Performance

Postponement of order from a customer amounting to US$ 20 mln.

Issues with execution resulting in lower revenue recognition in continuing business

Lower growth in order intake due to challenges with integration Cost base is largely fixed with minimal variability

Proprietary and Confidential

Measures to Improve

Increase order intake

Reduce cost

Enhance operational efficiency

Proprietary and Confidential

Expenses

23.524

24.525

25.526

26.527

27.528

FY08 - 3 Qtr. Ave. FY08Q4

All Figures in US$ Mln.

Expenses exclude Cost of Hardware, Software & Services and Bad Debts

Proprietary and Confidential

FY08 Product Rev. – By Stream

0%

10%

20%

30%

40%

50%

60%

License Support Cust. Bureau 3rd Party

FY07 FY08

Proprietary and Confidential

FY08 Product Rev. – By Geography

0%

5%

10%

15%

20%25%

30%

35%

40%

45%

50%

Americas EMEA APAC

FY07FY08

Proprietary and Confidential

FY08 – Other Metrics

90

95

100

105

110

115

120

FY07 FY0862%

64%

66%

68%

70%

72%

74%

76%

FY07 FY08

DSO Share of Product Revenue in Total Revenue

Proprietary and Confidential

Product Business – Key Metrics

Backlog plus Annuity for FY09 – US$ 85 Million

Current qualified pipeline – US$ 347 Million with a success rate of 31%

Operating Cost has come down by US$ 3 mln in Q4 as compared to the average of the first 3 quarters – business has fully achieved an annualised saving of US$ 12 mln expected at the time of Syndesis acquisition

Attrition during the year – 12.5%

Proprietary and Confidential

The Two Acquisitions – A Study

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Order Intake

70

90105

131

0

20

40

60

80

100

120

140

FY06 FY07 FY08 FY09 (E)

All Figures in US$ Mln.

28%

16%

25%

Proprietary and Confidential

Operational Cost

82

99111 106

0

20

40

60

80

100

120

FY06 FY07 FY08 FY09 (E)

All Figures in US$ Mln.

Proprietary and Confidential

Revenue

77

97 90

125

0

20

40

60

80

100

120

140

FY06 FY07 FY08 FY09 (E)

All Figures in US$ Mln.

Proprietary and Confidential

What have we Achieved - Quantitative Over the past 21 months, we have achieved an annualised cost

saving of about US$ 34 mln in FY09 – the total Operational Cost would have been US$ 140 mln had the three companies (Subex, Azure and Syndesis) been independent – current annualised figure is US$ 106 mln

Over 36 months, Order Intake has grown 87% (70M to 131M) and Revenue has grown 62% (77M to 125M) while cost has grown only by 29% (82M to 106M) – non linearity being achieved

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What have we Achieved - Qualitative

The company serves over 170 customers spread across 70 countries with 32 of the Top 50 telcos in that group

Deepening relationships resulting in the company becoming a significant partner – in FY09, 6 customers with annual billing more than US$ 5 million each

Unique product set enabling the company to create “blue ocean” and provide differentiated value to customers – ROC platform

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FY09 Guidance

Revenue – US$ 125 mlnProfit After Tax – US$ 12 mln

Note : Excludes Staff Supplementation Services Business

Thank You

www.subexworld.com