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  1. 1. FY10 Earnings & Strategy Update
  2. 2. SAFE HARBOR STATEMENT Some of the statements herein constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside our control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from our intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained herein with caution. Tata Communications does not undertake any obligation to update or revise forward looking statements, whether as a result of new information, future events or otherwise.2
  3. 3. Agenda•  FY10 Financials Sanjay Baweja, CFO•  Strategy Update N Srinath, CEO & MD Vinod Kumar, COO
  4. 4. ANALYST &INVESTOR MEETJune, 2010 FY10 Financials Presented by Sanjay Baweja Chief Financial Officer
  5. 5. FY10 I GAAP Results, Audited
  6. 6. Financial Highlights: FY10 As Per India GAAP Rs crores Consolidated Gross Revenues Consolidated EBITDA Consolidated PBT Consolidated PAT
  7. 7. The PAT Movement: FY09 to FY10
  8. 8. Segment Revenues: FY10 As Per India GAAP Rs crores Global Voice Global Data 9% 8% Others 49%
  9. 9. Gross Revenue Split by Business & Segment (FY10) FY 10 Total: Rs 11,026 Crores Enterprise & Retail is 19%; Service Provider is 81%
  10. 10. Net Revenue Split by Business & Segment (FY10) FY 10 Total: Rs 5,652Crores Enterprise & Retail is 33%; Service Provider is 67%
  11. 11. Gross Revenue Growth & Mix CAGR 8,297 9,963 11,026 15% 226% 4% 18% 10%
  12. 12. Net Revenue Growth & Mix CAGR 4,154 5,631 5,652 17% 225% 6% 17% 4%
  13. 13. Key Metrics: EBITDA Margins
  14. 14. Key Metrics: Capex Key Investment Areas   Submarine Cables   IP, MPLS & Ethernet Expansion   Data Centers   New / Managed Services
  15. 15. Financial Highlights: Q4 FY10 As Per India GAAP Rs croresConsolidated Gross Revenues Consolidated EBITDA Consolidated PBT Consolidated PAT
  16. 16. Segment Revenues: Q4 FY10 As Per India GAAP Rs crores Global Voice Global Data 2% 24% 1,715 1,385 4Q09 4Q10 Others 14%
  17. 17. Gross Revenue Split by Business & Segment(Q4 FY10) Q4 FY10 Total: Rs 2,973 Crores Enterprise & Retail is 19%; Service Provider is 81%
  18. 18. Net Revenue Split by Business & Segment (Q4 FY10) Q4 FY 10 Total: Rs 1,360 Crores Enterprise & Retail is 37%; Service Provider is 63%
  19. 19. Our Vision forANALYST &INVESTOR MEET The New World ofJune, 2010 Communications Presented by N. Srinath Chief Executive Officer and Managing Director Vinod Kumar Chief Operating Officer
  20. 20. The Growing Influence of Emerging MarketsEmerging market companies in Distribution of emerging-marketthe Fortune Global 500 companiesmore than tripled since 1995. 500 500 500 500 1995 2005 2006 2007 Composition of the Fortune Global 500 By Country/Region of Origin (100% = 70 companies) Emerging-market companies Developed-market companies
  21. 21. The New World requires MORE LESS MORE LESS LESS MORE Connected and Cost Speed Complexity Face-to-face Carbon Secure Constraint Pay-per-use Capital
  22. 22. Our Vision Flexibility New to Manage Growth Uncertainty Markets New World of Communications Cost Control
  23. 23. Tata Communications in numbers Billion Minutes Data Centers of International with more than 10,000 racks Voice Traffic Terabits of Petabits every International month on our Bandwidth Lit Capacity Internet backbone
  24. 24. Business Portfolio - Update Global Voice Global Data India Investments Solutions Solutions Broadband  World’s #1 in   World’s largest   Wireline and Wireless   Neotel (49%) Wholesale submarine cable (WiMax and WiFi) South Africa’s International Voice network networks in India second network services operator   Non-stop around   FOCUS on SMB the world IP Backbone   TTSL (strategic investment)   India’s #1 in Enterprise   BitGravity CDN Data Services technology start-up   Focus on Managed   UTL in Nepal Services
  25. 25. Our Leadership Strategy "   Apply our home market model to the next strategic growth markets "   Drive catalyst services for Enterprises Emerging Managed Markets Services "   Define and empower India Leadership profitable model for Service Providers Integrated Wholesale "   Build on our Wholesale foundation
  26. 26. Our Position and Aspirations Now Aspiration India To be amongst Enterprise Data the leading Wholesale LD Voice providers of global/multi- regional services Global to MNCs, with anWholesale International Voice Wholesale Connectivity emphasis on Enterprise Services emerging markets and managed services
  27. 27. Our Wholesale Scale Service Direct Voice Providers Bilaterals Mobile IP Peering Operators Partners IP NNIs Customers Major Transformation Services Partnerships
  28. 28. Our Wholesale Offerings Global Voice World’s Number #1 in Wholesale International Voice Global Global IP Transmission Backbone World’s largest submarine cable network Global Tier-1 ISP 6% of global Internet Business Global Transformation Signaling Develop next-gen services Facilitates 50% quickly and efficiently of the world’s roaming traffic White Label B2B Solutions Turnkey solutions from product to marketing
  29. 29. International Voice Leadership Market Leadership Billion Minutes •  # 1 Wholesale International provider of International Voice Traffic Stable Cash Flows •  Strong operating margins and marginal incremental capex VoIP Sustainable Business Model •  Driving large strategic partnerships/ outsourcing relationships * Long- •  Leading the shift to VoIP & other IP term models deals* On a run-rate basis
  30. 30. Global SignalingMarket Leadership•  Facilitates more than 50% of Best-in-Class SS7 Network global roaming 3 STP pairs in Asia/Europe/North America for geographical diversity and regional traffic segregationHigh Profitability•  High volume value-added service; not resource (or capex) intensive Superior Worldwide Reach   Over 280 on-net destinations,Future Potential #1 in the world•  Strong growth in mobile   Over 825 destinations available in all subscribers as well as mobile   25+ peering agreements with other IGPs broadband services
  31. 31. Transformation Services Network Network Network Engineering Implementation Operations NETWORK RELATED Planning Program Management Network Op. Center Design Acceptance Testing Capacity Management EMERGING TECHNOLOGIES Vendor Evaluation Access Management WiMAX Testing Service Planning Service Service and Deployment Fulfillment Assurance SERVICE RELATED NGN Enterprise Order Management Complaint Management Wholesale Provisioning Service Management Testing
  32. 32. Our Enterprise Solutions Suite UNIFIED COMMUNICATIONS Collaboration Security Data Center Voice Solutions Managed Services Web Conferencing Firewall Colocation Services VoIP Audio Conferencing Anti-X Managed Hosting VcIPLC Business Messaging vUTM Managed Storage Hosted Contact Center Telepresence IDS/IPS Virtualization IPVoice Connect Video Conferencing mDDoS Hosted PBX NETWORK OPTIMIZATION SERVICES Network Services Content Delivery Networking Application Optimization Application Optimisation Int. Leased Line Nat. Leased Line Internet MPLS Access Services (Wireless, Wireline) WAN Ethernet
  33. 33. Media & Entertainment: Segment Solutions Best-in-Class Integrated Portfolio Satellite Video Mosaic Broadcast Connect Infrastructure Global Media Content Delivery MPLS Ethernet Delivery Network (CDN) Managed Managed Hosting Global IP Security and Storage Network Services Services Enabling   Services   3333
  34. 34. Banking & Financial Services: Segment SolutionsBanking Infrastructure with HostedOne-Window Service Management Core"   Started operations in April 2009 Banking"   Launched “pay-per-use” end-to-end Solution ATM outsourcing End-to-End"   Managing 1,000+ ATMs and 3,000+ PoS PoS carrying 32% of India’s point-of-sale Service transactions End-to-End ATM Service 34
  35. 35. Broadband Wireless Access (BWA)Spectrum Auction Update"   Participated for all-India spectrum"   Circle-wise business cases developed over two years, with experience of broadband market as well as Wimax operations 5 cities / 50,000 subscribers"   Bids exceeded business cases by large margin; exited the auction progressively when no viable ‘package’ was available
  36. 36. Broadband Business Update"   Immediate focus on SMB market – leverage synergies with Enterprise play, including managed services, SaaS and cloud computing "   SMB business segment now reporting into the Global Data Business Unit"   Await developments to evaluate future opportunities in the retail segment
  37. 37. Tata Communications: Sum of many Exciting Parts"   “Core Business” "   Global Voice "   Global Data, including "   Global submarine cable & Tier-1 IP network "   India Enterprise Data leadership & SMB opportunity "   Mobility, Vertical Solutions & Managed Services"   Neotel and the Africa opportunity"   Stake in Tata Teleservices
  38. 38. Strategic Focus: 2010-2012"   Redefine “Wholesale” – Integrated, Turnkey, White Label"   Continue to expand India access networks"   Focus on catalyst services: Telepresence, CDN/Mosaic and Ethernet"   Achieve global benchmarks in customer service and operations"   Create at least one new “home market” (in addition to India and South Africa)
  39. 39. In Conclusion…"   Global player with its heart in the Emerging Markets"   Exciting and rapid transformation has been completed"   Proud of our established Wholesale leadership; well on our way to creating a meaningful global Enterprise play"   Investments in India, South Africa and other Emerging Markets will continue, both organic and inorganic
  40. 40. Thank You