Strategy Update May 2016

Q4 AND FY2016

19TH MAY, 2016

MUMBAI

BUSINESS HIGHLIGHT & STRATEGY UPDATE

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.

Presenters / Speakers Title

Mahesh Pratap SinghWelcome, Introductions, Safe Harbor

Disclosure and Today’s agenda

Vinod Kumar Strategy update

Anthony BartoloUnified Communications and Collaboration

(UCC) – Overview and Strategy

Sumeet WaliaGlobal Enterprises Segment - Overview

and Strategy

All Q&A

AGENDA

VINOD KUMAR| MD AND GROUP CEO

BUSINESS HIGHLIGHT AND STRATEGY UPDATE

5

ST TELEMEDIA AND TATA COMMUNICATIONS ENTER

INTO A STRATEGIC PARTNERSHIP TO EXPAND DATA

CENTRE BUSINESS IN INDIA AND SINGAPORE

• ST Telemedia will acquire 74% majority stake in Tata Communications’ data centre business in India (TCDC) and

Singapore (TCX) for an estimated 100% enterprise value of INR 31.3b and SGD 232.4m respectively.

• Both companies share a very similar ethos, set of values, impeccable commitment to customer service

excellence, and are long term investors, focusing on performance, value and growth.

• Tata Communications will remain as a significant shareholder, holding the remaining 26% stake in the businesses.

• This new joint venture partnership will now allow us to hone our strategic focus on advanced services within the

data centre that enable digital transformation for our customers, in addition to infrastructure services.

• Tata Communication will continue to focus on the development and introduction of its advanced managed

services portfolio (including IP, cloud enablement and unified communications services), and continuing to invest

in its strategic partnerships globally

6

SUCCESSES

Named an Aon Best Employer India

2016. Recognised for high employee

engagement, compelling employer

brand, effective leadership and a

culture that enables high performance

Continued to make in-roads in global enterprise

space winning against global giants. We signed,

amongst others, a Landmark Deal with AF/KLM that

aims to “Unleash a Digital Transformation”. This

reflects our success in changing narrative with

enterprise CIO from supplier to true partners

“Leader” in Gartner Magic

Quadrant¹ for Network Services,

Global for the third consecutive

year

We continue to outgrow most of our

peers and our Capex continues to be

relatively lower than Industry spend

validating high quality services led

nature of our growth

Partnership program

continues to gain traction.

Several new partnerships

established.

Hitting operational milestones in line

with our strategic plan for

transforming business mix, enhancing

profitability, improving FCF and ROCE,

and reshaping our business portfolio

¹ Gartner, Inc “Magic Quadrant for Network Services, Global” Neil Rickard, Bjarne Munch, 14 January 2016. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only

those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organisation and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with

respect to this research, including any warranties of merchantability or fitness for a particular purpose.

7

CHALLENGE

• Weak year for voice segment driven by structural industry headwinds and competitive pressures

Continued volatility driven by competitive pressure on volume and margin

Although dependency on India termination is less, expect volatility to persist

Remain focused on driving cost and operating efficiencies coupled with fine tuning go-to-market approach

• However, moderation in voice segment is something we had anticipated long back and adequately

cautioned and prepared for

Pressure in voice segment

As presented in

our May 2013

Analyst meet

9M FY16 Net Revenue Mix

Current (9M

FY16)

Voice

15%

Data

85%16

Voice

13%

Data

87%

8

UPDATE ON NEOTEL

• Vodacom deal lapsed due to regulatory complexities

Agreement between the parties lapsed due to regulatory complexities in concluding the transaction

• It is Business As Usual at Neotel and Neotel has a strong asset base and operating platform

Remain committed to our customers, partners and employees in South Africa

Base enterprise business remains stable and have not seen any unusual customer churn

• Support for Neotel can be provided within TCL’s operating financials

From a cash flow perspective, Neotel will need some capital support from shareholders but that is not

going to be a significant number in our overall context

Business has high operating leverage and with growth revival operating profitability will improve

• Several Parties interested in Neotel’s business – assets and customer base

9

OUR STRATEGY IS TO LAYER NEW PLATFORMS ON TOP OF

OUR STRONG GLOBAL INFRASTRUCTURE

10

THESE PLATFORMS AND SERVICES ARE ENABLING US

IN BETTER LEVERAGING OUR INFRASTRUCTURE

Unified

Communications

We facilitate seamless

collaboration and

communication on every

platform

Hybrid Network

We enable enterprise of

every size to harness the

power of internet and

cloud

Hybrid Compute & Storage

We enable enterprise to

reach the cloud while

maintaining user experience

and security

Data Center Interconnect

SD WAN/NFV

Media Management

SecurityWe help strengthen enterprise security posture for a

hybrid IT environmentManaged: vProxy, virtualized Unified

Threat Mgmt (vUTM), Distributed Denial of

Service (DDoS)

Mobility

We enable MNOs and

Enterprises to leverage

platforms and solutions

for Mobility

MMX Roaming VAS Enterprise Mobility Analytics, M2M, IoTCloud Orchestration

Network Infrastructure

11

NEW PLATFORMS WILL DRIVE TARGET MARKET EXPANSION

FROM $41BN TO ~$57BN BY 2019

149

8

9

79

12

4 71 12

52

71

23

0

3

(5)

12 0

31

3

5 1

33

FY15 Intl.Voice

Carr.N/w O/s

Data -Intl

Data - Ind Cloud BankingSolns

UCC Mobility Media IZO H'care FY19

FY19 TCL Addressable Market (US $ B) US $57Bn

in 2019

Data - India

Intl Voice

Data - Intl

US $41Bn

in 2015

Carrier N/w O/s

CloudBanking Soln

MediaMobility

UCC

CAGR

9%

33%

37%

22%

13%

14%

7%

5%

2%

-10%

Growth driven by Innovation in new services like Cloud,

IZO, Media, Mobility (Innovation Services), Healthcare and

UCC (GHCC, Jamvee, IPT)

NA

109%

HealthCare

Driving significant target market expansion in spite of faster decline in voice segment

12

Executing well and on track on our transformational agenda

Quickly changing tech trends offers significant opportunities as well as risks.

Traditional services facing challenges

Need to invest in new services/innovation to differentiate and accelerate

growth. Remain focused on execution.

On path to maximize shareholder returns by substantially improving Core

business RoCE

1

2

3

4

SUMMARY

CHALLENGES AND STRATEGIES FOR TODAY’S CIOS

ANTHONY BARTOLO | PRESIDENT

UNIFIED COMMUNICATIONS AND MOBILITY SERVICES

MAY 2016, MUMBAI

TAKING A HOLISTIC APPROACH TO GLOBAL COLLABORATION

GLOBAL PHENOMENON

UC GROWTH WORLDWIDE

Of Mid-to-large corporations

have UC deployments

43% Regional | 49% Global

93%Of SMEs have

UC deployments

42% Regional | 32% Global

74%

14

Global

Backbone

Leadership in

Global SIP

Trunking

“Ring

Around the

World”

GLOBAL REACH

15

GLOBALLY ACCESSIBLE, GLOBALLY CONSISTENT

CIO’S ASKED TO MAKE GOOD ON

UNIFIED COMMUNICATION (UC) PROMISE

Globally accessible and globally consistent

Enterprises see collaboration

tools as the main competitive

differentiator

58%Enterprises plan to

implement or upgrade UCC

solution in 3 years

61%Enterprises see mobility and collaboration

tools as main trigger to boost productivity

and improve customer service

53%Enterprises expect cloud

computing to impact their

UCC plans

71%

16

2022

$62BTOTAL UCC MARKET

2014 - 2019

16% CAGR

Source: Kable, Global Industry Analysts 2015

Unified Communications and Collaboration End User Survey

All built on our global tier 1 network for performance,

scalability, resiliency and reach

Hosted contact centre

UCaaS & video

managed services

Unified Conferencing

Global SIP trunking

Part

ner

off

eri

ng a

nd inte

gra

tion

Contact centre applications and infrastructure

IP Telephony as a service and managed video

support, supply and installation

Audio, web, video, content, presence, chat

Global on-net access and calling

TATA COMMUNICATIONS UCC SOLUTIONS SUITE

A COMPLETE PORTFOLIO OF CLOUD-HOSTED SOLUTIONS

17

IT’S NOT WHAT YOU DEPLOY, IT’S HOW YOU DEPLOY AND CONSUME ITWE TAKE ON A HOLISTIC PERSPECTIVE

Inte

gra

ted S

LA

Physical Transport

MPLS / IP

SIP

Data Centre

e.g. contact centre, UCaaS

unified conferencing, VCaaS

Applications

>99.9%UPTIME

>99.9%UPTIME

Look deeper – the dependencies are relevant

18

98%GDP intl LD

termination

4+ billion minutes

• One service

• Multiple countries

• Single SLA

• Single contract

• Single operating procedure

E.G. GLOBAL TRUNKING

CUSTOMERS CONSIDER:

GLOBAL SOLUTION ELEMENTS WHERE POSSIBLE

Plug-and-Play UC Connectivity

94%GDP intl

toll free

SIPbased services

19

SIP ENABLING CONVERGENCE OF SILOS

Video

Telephony

Audio

& Web

Collaboration

Messaging

Collaboration

Apps

Network

Mobility

20

As a result of this consolidation and SIP’s key

role in the transition, TCL is becoming more

of an early Trusted Advisor.

Scale

SCALABLE SOLUTIONS WITH A GLOBAL FOCUS

CENTRALIZE COMPLEXITY, DISTRIBUTE SIMPLICITY

21

UCaaS

• Provides scale and complements unified

conferencing and SIP trunking

• Drive momentum towards cloud

• Disruptive offerings for emerging markets

Modular

UCaaS UCaaS

UCaaSHosted CC

• Provides a uniform and global customer experience

• Greater flexibility and cost control in resource management

• Enabling MNC’s to provide segmentation based on economic and

customer factors

Hosted CC Hosted CC

Hosted CC

25k

Taking best-in-class technologies global

SBI EXCLUSIF

Anytime – Anywhere - Any channel

#1 India’s largest PSU bank

200

300Mn

16,333

191

year old banking firm

customer base

branches

offices in 32 countries

BUSINESS NEED

1st

Indian bank to adopt cloud technology

Omni channel contact center in the

banking sector

Remote video expert service

WHAT INSTACC GLOBAL DELIVERED

Omni-channel contact center on cloud

– Video, Mobility, Voice, Chat & IVR

4 locations addressing entire HNI base

104 E2E implementation days

365 x 24 x 7 Managed Service

99.9% E2E SLA

100% continuity across channels

WHAT SBI ACHIEVED

As the #1 bank in India, SBI had complete range of

services minus Wealth Management portfolio

Mobility was key for their business strategy to

address HNI customers who are more tech savvy

Need for a partner who could understand their

business demands and address it end-to-end

WHO IS SBI

POWERED BY INSTACC GLOBAL

22

WE’RE NOT ‘GOING IT ALONE’WHITE-LABELLING, CO-BRANDING AND BEYOND…

Tata Communications global network

Strategic partner API

Strategic partnerships

Leveraging API and network

to foster broader and

deeper relationships

Internal API

Tata Communications

Leveraging API and network

to build retail offerings

Public API

Smaller ecosystem companies

Leveraging public API and network

to build offerings

Unlo

ckin

g innovati

on

via

ecosy

stem

23

PARTNER FOR THE LONG TERM

24

Modular, integratable

services enabling a

phased roadmap

Unparalleled reach from

a leader in voice and

network services

Scalable, Resilient,

Ubiquitous, Persistent,

Utility Models

Services built on the bedrock

of Tata Communications’

Tier 1 infrastructure

• Customer-centric UCC rollout

• Tangible improvement in user experience and functionality

• Support businesses with their UCC transformation

• Application platforms with globally distributed PoPs

• Multiple access methods

• Focus on global capillarity for traffic termination

• Best-in Class Functionality

• Don’t Build Yourself

• Rapid Deployment, Ramp Costs with Benefits

• Fully integrated end-to-end SLA and accountability

• Services architecture = global application fabric

• Designed for scalability, resiliency, disaster recovery

Modular

Services

Global

Reach

Cloud

Enabled

High

Availability

Tata Communications provides the building blocks for UC Strategies

PARTNERING FOR GROWTHENTERPRISE BUSINESS UPDATE

SUMEET WALIA| PRESIDENT,

GLOBAL ENTERPRISE SERVICES

MAY 2016, MUMBAI

55% of S&P 500 32% of FTSE 350 60% of PWC 100of the

Fortune 50070%

MANUFACTURING E-COMMERCE MEDIA / ENTERTAINMENTHEALTHCARE /

PHARMACEUTICAL

3,600 ENTERPRISE CUSTOMERS GLOBALLYContinue to add over 600 new customers each year

BANKING / FINANCIAL IT / ITES SERVICES AVIATION

2016New opportunities in

video, Skype for

Business, SIP voice,

IZO

• CIO

• CFO

• CSO

• BU heads

Upsell Security

(DDoS)

• Head of Telecom

• External

consultant

A superfast

intelligent network

to power mission-

critical systems

across 170 sites

• CIO

• External

consultant

• 5 year contract

FROM SUPPLIER TO

STRATEGIC PARTNER

2 contracts closed

• Telecom

department

2012

“Investing in cutting-edge

digital technologies is at the

heart of our growth strategy.

We’re introducing a range of

innovative services, such as

travel apps for smartwatches,

to provide a seamless,

personalised travel

experience for our

passengers. Tata

Communications’ global

next-generation network

will act as the foundation for

these services.”

JEAN-CHRISTOPHE LALANNE,

CIO AIR FRANCE-KLM GROUP

With multi-vendors causing additional work, transition to a single global supplier showed our ability to deliver emerging market solutions.

Web servers were subject to relentless DDoS attacks: our traffic scrubbing farms and 24/7 monitoring ended the problem.

Highly successful dating service needed hosted data centre scalability, along withmanaged security 24/7 and monitoring.

jamvee™ unified communications provided seamless collaboration between 33 factories on five continents.

NRB Industrial Bearings achieved cost savings with fully managed hosting and storage solution.

Diverse, redundant, scalable, managed global VPN enables Fareportal to service customers worldwide and deliver a better user experience.

Our GSIP gives 3Clogic competitive edge while providing best in class voice supporting hostedcontact centre solution.

Adopting Jamvee™ gives Quadmarkcompetitive edgewhile improving theirteams productivity.

FROM POINT SERVICES TO MANAGED SERVICES

ONE OF INDIA’S

LARGEST PRIVATE

SECTOR BANKS

ONE OF EUROPE’S

LARGEST INSURANCE

COMPANIES

2018

Preferred Telecom Partner

2016

Communications, Security & Cloud Enablement

2014

Telecom Service provider

• 3 Products

• 2 year contract length

• 45% Managed Services

• 5 Products

• +35% Size of business



• ~9 Products

• +95% Size of opportunities

• ~70% Managed Services

• 6 Products



• 12 Products

• +200% size of business



• ~20 Products

• +350% Size of business

• ~80% Managed Services

DEEPENING CUSTOMER ENGAGEMENTS

BEING RECOGNISED BY THE MARKET CREATING AN ECOSYSTEM

GARTNER MAGIC QUADRANT

FOR NETWORK SERVICES

FOR THE THIRD YEAR

Frost & Sullivan India ICT Awards:

• Enterprise Telecom Service Provider of the Year

• Enterprise Data Service Provider of the Year

• Enterprise Ethernet Provider of the Year

• Third Party Datacenter Service Provider of the Year

• Enterprise VOIP Provider of the Year

• Hosted Contact Center Service Provider of the Year

INVESTING IN OUR BRAND GLOBALLY

STRENGTHENING OUR GLOBAL REPUTATION

ENTERPRISES COMMITTED TO DIGITAL

TRANSFORMATION

Investment priorities for CEOs:

Source: Gartner 2016 CEO survey

1.Digital Marketing 37%

2.Customer Experience Management 34%

3.Data Sciences / Big Data 34%

4.Smart Processes 30%

5.Cloud based business 29%

$20Bn Target Addressable Market,

Expected to grow at +20% CAGR over

next 3 years

MAJOR IMPLICATIONS ON ICT

VALUE FOR

TATA COMMUNICATIONS

• Global scale and reach

• Customer retention

• Customer advocacy

• Increased share of wallet

• Longer term relationships

• Higher value engagements

• Synergies across cloud,

network and UCC

VALUE FOR

OUR CUSTOMERS

• Access to global markets

• Expertise and co-creation

• Innovative & wide portfolio

• Agility & flexibility

• Utility & OpEx focused

• Cloud & partner ecosystem

• Trust & Integrity

A STRATEGIC PARTNER FOR GROWTH

A SUSTAINABLE PLATFORM FOR GROWTH

THE KEY TO OUR STRATEGY

PARTNERING FOR GROWTH

KEY

STRATEGIC

PRIORITIES

PRESENCE & PARTNERSHIP PORTFOLIO & PLATFORMS PRODUCTIVITY & PROFITABILITY

• Strengthen India leadership

position

• Customer acquisition

through global account

management approach

• Leverage SIs, cloud &

partner ecosystem

• Service growth through

consultative approach

• Grow key platforms & incubate

new solutions

• Drive differentiated customer

experience

• Invest in the Solution

transformation

• Simplify & automate

transactional services

• Customer lifecycle management

KEY

DIFFERENTIATORS

TRUSTED

PARTNER

GLOBAL

SCALE &

REACH

AGILITY &

FLEXIBILITYPARTNERSHIPS

WIDE &

INNOVATIVE

PORTFOLIO

THANK YOU

© 2015 Tata Communications. All Rights Reserved.

TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Limited in certain countries.

tatacommunications.com

Strategy Update May 2016

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