QFY10-Annual-Analyst-Meet-Upload

FY10 Earnings & Strategy Update

SAFE HARBOR STATEMENT

2

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.

Agenda

•  FY10 Financials Sanjay Baweja, CFO

•  Strategy Update N Srinath, CEO & MD Vinod Kumar, COO

ANALYST & INVESTOR MEET June, 2010

Presented by

Sanjay Baweja Chief Financial Officer

FY10 Financials

FY10 I GAAP Results, Audited

Financial Highlights: FY10

Consolidated Gross Revenues Consolidated EBITDA

Consolidated PAT Consolidated PBT

Rs crores As Per India GAAP

The PAT Movement: FY09 to FY10

Segment Revenues: FY10

Global Voice Global Data

Others

9% 8%

49%

Rs crores As Per India GAAP

Enterprise & Retail is 19%; Service Provider is 81%

FY 10 Total: Rs 11,026 Crores

Gross Revenue Split by Business & Segment (FY10)

Enterprise & Retail is 33%; Service Provider is 67%

FY 10 Total: Rs 5,652Crores

Net Revenue Split by Business & Segment (FY10)

8,297 9,963 11,026 CAGR

15%

226% 4%

18%

10%

Gross Revenue Growth & Mix

4,154 5,631 5,652 CAGR

17%

225% 6%

17%

4%

Net Revenue Growth & Mix

Key Metrics: EBITDA Margins

  Submarine Cables

  IP, MPLS & Ethernet Expansion

  Data Centers

  New / Managed Services

Key Investment Areas

Key Metrics: Capex

Financial Highlights: Q4 FY10

Consolidated Gross Revenues Consolidated EBITDA

Consolidated PAT Consolidated PBT

Rs crores As Per India GAAP

Segment Revenues: Q4 FY10

1,385 1,715

4Q09 4Q10

Global Voice Global Data

Others

24%

2%

14%

Rs crores As Per India GAAP

Enterprise & Retail is 19%; Service Provider is 81%

Q4 FY10 Total: Rs 2,973 Crores

Gross Revenue Split by Business & Segment (Q4 FY10)

Enterprise & Retail is 37%; Service Provider is 63%

Q4 FY 10 Total: Rs 1,360 Crores

Net Revenue Split by Business & Segment (Q4 FY10)

ANALYST & INVESTOR MEET June, 2010

Presented by

N. Srinath Chief Executive Officer and Managing Director

Vinod Kumar Chief Operating Officer

Our Vision for The New World of Communications

Emerging market companies in the Fortune Global 500 more than tripled since 1995.

500 500 500 500

2007 2006 2005 1995

Emerging-market companies Developed-market companies

Composition of the Fortune Global 500

Distribution of emerging-market companies

By Country/Region of Origin (100% = 70 companies)

The Growing Influence of Emerging Markets

Cost Complexity Carbon Constraint Capital

MORE MORE

MORE

LESS LESS LESS

and Connected Speed

Face-to-face Secure

Pay-per-use

The New World requires

Flexibility to Manage Uncertainty

Cost Control

New Growth Markets

New World of Communications

Our Vision

Billion Minutes of International Voice Traffic

Terabits of International Bandwidth Lit Capacity

Data Centers with more than 10,000 racks

Petabits every month on our Internet backbone

Tata Communications in numbers

  World’s #1 in Wholesale International Voice services

Global Voice Solutions

Global Data Solutions

India Broadband Investments

  World’s largest submarine cable network

  Non-stop around the world IP Backbone

  India’s #1 in Enterprise Data Services

  Focus on Managed Services

  Wireline and Wireless (WiMax and WiFi) networks in India

  FOCUS on SMB

  Neotel (49%) South Africa’s second network operator

  TTSL (strategic investment)

  BitGravity CDN technology start-up

  UTL in Nepal

Business Portfolio - Update

Managed Services

Emerging Markets

India Leadership

Integrated Wholesale

"   Apply our home market model to the next strategic growth markets

"   Drive catalyst services for Enterprises

"   Define and empower profitable model for Service Providers

"   Build on our Wholesale foundation

Our Leadership Strategy

India Enterprise Data

Wholesale LD Voice

Global Wholesale International Voice

Wholesale Connectivity Enterprise Services

Now Aspiration To be amongst the leading providers of global/multi-regional services to MNCs, with an emphasis on emerging markets and managed services

Our Position and Aspirations

Service Providers

Mobile Operators

IP Customers

Direct Voice Bilaterals

IP Peering Partners

NNIs

Major Transformation Services Partnerships

Our Wholesale Scale

Global IP Backbone

Global Voice

Global Transmission

Business Transformation

White Label B2B

Solutions

Global Signaling

World’s Number #1 in Wholesale International Voice

World’s largest submarine cable network

Develop next-gen services quickly and efficiently

Turnkey solutions from product to marketing

Facilitates 50% of the world’s roaming traffic

Global Tier-1 ISP 6% of global Internet

Our Wholesale Offerings

International Voice Leadership

Market Leadership •  # 1 Wholesale International provider

Stable Cash Flows •  Strong operating margins and

marginal incremental capex

Sustainable Business Model •  Driving large strategic partnerships/

outsourcing relationships •  Leading the shift to VoIP & other IP

models

Billion Minutes of International Voice Traffic

VoIP

Long-term deals

*

* On a run-rate basis

Global Signaling

Best-in-Class SS7 Network 3 STP pairs in Asia/Europe/North America for geographical diversity and regional traffic segregation

Superior Worldwide Reach   Over 280 on-net destinations,

#1 in the world

  Over 825 destinations available in all

  25+ peering agreements with other IGPs

Market Leadership •  Facilitates more than 50% of

global roaming

High Profitability •  High volume value-added

service; not resource (or capex) intensive

Future Potential •  Strong growth in mobile

subscribers as well as mobile broadband services

Transformation Services

Network Engineering

Network Implementation

Network Operations

Planning

Design

Vendor Evaluation

Testing

Program Management

Acceptance Testing

Network Op. Center

Capacity Management

Access Management

SER

VIC

E R

ELAT

ED

Service Planning and Deployment

Service Fulfillment

Service Assurance

Enterprise

Wholesale

Testing

Order Management

Provisioning

Complaint Management

Service Management

EMER

GIN

G T

ECH

NO

LOG

IES

WiMAX

NGN

NET

WO

RK

REL

ATED

Collaboration Security Data Center Voice Solutions Web Conferencing

Man

aged

Ser

vice

s

NETWORK OPTIMIZATION SERVICES

Audio Conferencing

Business Messaging

Telepresence

Video Conferencing

Firewall

Anti-X

vUTM

IDS/IPS

mDDoS

Colocation Services

Managed Hosting

Managed Storage

Virtualization

VoIP

VcIPLC

Hosted Contact Center

IPVoice Connect

Hosted PBX

Nat. Leased Line Internet MPLS

Access Services (Wireless, Wireline) WAN Ethernet

Application Optimisation

Int. Leased Line

Net

wor

k Se

rvic

es

UNIFIED COMMUNICATIONS

Content Delivery Networking Application Optimization

Our Enterprise Solutions Suite

33

Enabling  Services  

Content Delivery Network (CDN) MPLS Ethernet

Glo

bal M

edia

D

eliv

ery

In

fras

truc

ture

Global IP Network

Managed Security Services

Managed Hosting and Storage

Services

33

Satellite Broadcast

Video Connect Mosaic

Best-in-Class Integrated Portfolio

Media & Entertainment: Segment Solutions

End-to-End ATM Service

End-to-End PoS Service

Banking Infrastructure with One-Window Service Management

"   Started operations in April 2009

"   Launched “pay-per-use” end-to-end

ATM outsourcing

"   Managing 1,000+ ATMs and 3,000+ PoS

carrying 32% of India’s point-of-sale

transactions

Hosted Core Banking Solution

34

Banking & Financial Services: Segment Solutions

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

"   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

Broadband Business Update

"   “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

Tata Communications: Sum of many Exciting Parts

"   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)

Strategic Focus: 2010-2012

"   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

In Conclusion…

Thank You