FY10 Earnings & Strategy Update

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1 FY10 Earnings & 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. 2

3 Agenda FY10 Financials Sanjay Baweja, CFO Strategy Update N Srinath, CEO & MD Vinod Kumar, COO

4 ANALYST & INVESTOR MEET June, 2010 FY10 Financials Presented by Sanjay Baweja Chief Financial Officer

5 FY10 I GAAP Results, Audited

6 Financial Highlights: FY10 As Per India GAAP Rs crores Consolidated Gross Revenues Consolidated EBITDA Consolidated PBT Consolidated PAT

7 The PAT Movement: FY09 to FY10

8 Segment Revenues: FY10 As Per India GAAP Rs crores Global Voice Global Data 9% 8% Others 49%

9 Gross Revenue Split by Business & Segment (FY10) FY 10 Total: Rs 11,026 Crores Enterprise & Retail is 19%; Service Provider is 81%

10 Net Revenue Split by Business & Segment (FY10) FY 10 Total: Rs 5,652Crores Enterprise & Retail is 33%; Service Provider is 67%

11 Gross Revenue Growth & Mix 8,297 9,963 11,026 CAGR 15% 226% 4% 18% 10%

12 Net Revenue Growth & Mix 4,154 5,631 5,652 CAGR 17% 225% 6% 17% 4%

13 Key Metrics: EBITDA Margins

14 Key Metrics: Capex Key Investment Areas Submarine Cables IP, MPLS & Ethernet Expansion Data Centers New / Managed Services

15 Financial Highlights: Q4 FY10 As Per India GAAP Rs crores Consolidated Gross Revenues Consolidated EBITDA Consolidated PBT Consolidated PAT

16 Segment Revenues: Q4 FY10 Global Voice As Per India GAAP Global Data Rs crores 24% 2% 1,385 1,715 4Q09 4Q10 Others 14%

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 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 ANALYST & INVESTOR MEET June, 2010 Our Vision for The New World of Communications Presented by N. Srinath Chief Executive Officer and Managing Director Vinod Kumar Chief Operating Officer

20 The Growing Influence of Emerging Markets Emerging market companies in the Fortune Global 500 more than tripled since Distribution of emerging-market companies Composition of the Fortune Global 500 Emerging-market companies Developed-market companies By Country/Region of Origin (100% = 70 companies)

21 The New World requires MORE MORE MORE Connected Speed Face-to-face Secure Pay-per-use and LESS LESS LESS Cost Complexity Carbon Constraint Capital

22 Our Vision Flexibility to Manage Uncertainty New Growth Markets New World of Communications Cost Control

23 Tata Communications in numbers Billion Minutes of International Voice Traffic Data Centers with more than 10,000 racks Terabits of International Bandwidth Lit Capacity Petabits every month on our Internet backbone

Business Portfolio - Update Global Voice Solutions Global Data Solutions India Broadband Investments World s #1 in Wholesale International Voice services World s largest submarine cable network

24 Business Portfolio - Update Global Voice Solutions Global Data Solutions India Broadband Investments World s #1 in Wholesale International Voice services World s largest submarine cable network Non-stop around the world IP Backbone Wireline and Wireless (WiMax and WiFi) networks in India FOCUS on SMB Neotel (49%) South Africa s second network operator TTSL (strategic investment) India s #1 in Enterprise Data Services BitGravity CDN technology start-up Focus on Managed Services UTL in Nepal

25 Our Leadership Strategy " Apply our home market model to the next strategic growth markets " Drive catalyst services for Enterprises Emerging Markets Managed Services India Leadership Integrated Wholesale " Define and empower profitable model for Service Providers " Build on our Wholesale foundation

Services Now Aspiration To be amongst the leading providers of

26 Our Position and Aspirations India Enterprise Data Wholesale LD Voice Global Wholesale International Voice Wholesale Connectivity Enterprise Services Now Aspiration To be amongst the leading providers of global/multiregional services to MNCs, with an emphasis on emerging markets and managed services

27 Our Wholesale Scale Service Providers Direct Voice Bilaterals Mobile Operators IP Peering Partners IP Customers NNIs Major Transformation Services Partnerships

Global Signaling Facilitates 50% of the world s roaming traffic White Label B2B Solutions Turnkey

28 Our Wholesale Offerings Global Voice Global IP Backbone Global Tier-1 ISP 6% of global Internet World s Number #1 in Wholesale International Voice Global Transmission World s largest submarine cable network Global Signaling Facilitates 50% of the world s roaming traffic White Label B2B Solutions Turnkey solutions from product to marketing Business Transformation Develop next-gen services quickly and efficiently

International Voice Leadership Market Leadership # 1 Wholesale

Traffic Stable Cash Flows Strong operating margins and marginal

strategic partnerships/ outsourcing relationships Leading the

29 International Voice Leadership Market Leadership # 1 Wholesale International provider Billion Minutes of International Voice Traffic 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 VoIP * Longterm deals * On a run-rate basis

Global Signaling 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

30 Global Signaling 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 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

Design Vendor Evaluation Testing Service

Fulfillment Order Management Provisioning

Center Capacity Management Access Management

31 Transformation Services NETWORK RELATED SERVICE RELATED Network Engineering Planning Design Vendor Evaluation Testing Service Planning and Deployment Enterprise Wholesale Testing Network Implementation Program Management Acceptance Testing Service Fulfillment Order Management Provisioning Network Operations Network Op. Center Capacity Management Access Management Service Assurance Complaint Management Service Management EMERGING TECHNOLOGIES WiMAX NGN

Our Enterprise Solutions Suite UNIFIED COMMUNICATIONS Managed Services Collaboration Security Data Center Voice Solutions Web Conferencing Firewall Colocation Services VoIP Audio Conferencing Anti-X

32 Our Enterprise Solutions Suite UNIFIED COMMUNICATIONS Managed Services Collaboration Security Data Center Voice Solutions 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 Services NETWORK OPTIMIZATION SERVICES Content Delivery Networking Application Optimization Optimisation Int. Leased Line Nat. Leased Line Internet MPLS Access Services (Wireless, Wireline) WAN Ethernet

33 Media & Entertainment: Segment Solutions Best-in-Class Integrated Portfolio Satellite Broadcast Video Connect Mosaic Global Media Delivery Infrastructure Content Delivery Network (CDN) Global IP Network Managed Security Services MPLS Ethernet Managed Hosting and Storage Services Enabling Services 33 33

34 Banking & Financial Services: Segment Solutions 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 End-to-End ATM Service End-to-End PoS Service 34

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 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 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 Strategic Focus: " 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 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 Thank You

Analyst s Meet November 05, 2004 Mumbai, India AGENDA

Analyst s Meet November 05, 2004 Mumbai, India AGENDA FINANCIAL & OPERATIONAL HIGHLIGHTS FOR HALF YEAR ENDED SEPTEMBER 2004 STRATEGIES FOR GROWTH Q & A Safe Harbor Statement Some of the statements herein