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FY10 Earnings

& Strategy
gy Update
p
to Shareholders

August 6, 2010
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
p
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
materiall from o
materially ourr intentions
intentions, plans
plans, e
expectations,
pectations ass
assumptions
mptions and beliefs abo
aboutt 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.
ANNUAL
GENERAL
MEETING
August
g 6,, 2010 FY10 Financials
Financial Highlights: FY10
As Per India GAAP Rs crores
Consolidated Gross Revenues Consolidated EBITDA

11 026
11,026
9,963 1,350

1,012

FY 09 FY 10
FY 09 FY 10
Consolidated PBT Consolidated PAT

316
423
(598)

(681)

FY 09 FY 10 FY 09 FY 10
The PAT Movement: FY09 to FY10

400
316

200

10
0
FY09 PAT Addl. Neotel Losses Addl. Dep Addl Interest Others FY10 PAT

-200 (314) (400)

(598)
-400

(210)
-600

-800
Segment Revenues: FY10
As Per India GAAP Rs crores

Global Voice
Global Data
9% 8%

6,147 3 872
3,872 4,189
5 629
5,629

FY 09 FY 10 FY 09 FY 10
Others

49%

690
462

FY 09 FY 10
Gross Revenue Split by Business & Segment (FY10)

RBU/Oth
6%

Enterprise
E t i
Data 17%
38%
Voice Service Provider
56% 21%

FY 10 Total: Rs 11,026 Crores

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


Net Revenue Split by Business & Segment (FY10)

RBU/Oth
12%

Service Provider
Data
37% Enterprise
Voice 67%
30%
21%

FY 10 Total: Rs 5,652Crores
5 652Crores

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


Net Revenue Growth & Mix

Net Revenue (Rs Cr) CAGR
4,154 5,631 5,652 17%

1% 4% 8%
225%
5% 4% 4% 6%

68% 65% 67% 17%

26% 26% 21% 4%

FY08 FY09 FY10


Voice Data Broadband Neotel
Key Metrics: EBITDA Margins

EBITDA Margin (%)

24%

21% On Gross 
18% R
Revenue
14%
On Net 
11% 9% Revenue

FY08 FY09 FY10


Key Metrics: Capex

Key Investment Areas

ƒ Submarine Cables

ƒ IP, MPLS & Ethernet Expansion

ƒ Data Centers
C

ƒ New / Managed Services

FY07 – FY10: $1.99 Billion


Major Announcements & Launches

Innovative Products Strategic


Partnerships
& Services Investments
• Video Connect - Dedicated • BT – Global Strategic Voice
global video network Services Agreement
• Acquired BT Group plc’s
• Managed Two-Factor • Whygo, Starwood, CWT, Mosaic business – Media
Authentication as a Cloud- Dimension Data – expand
Management platform
based Service reach of Telepresence

• Global 10 Gigabit Ethernet • Tyco Telecommunications – • Set up 55,000 sq ft. data


Service construct TGN Gulf cable centre in Pune – for Co-
system location, Managed Hosting &
• c a ge ((IPX)) so
IP Exchange solution
u o too Storage
g
enable Universal Service • SugarCRM – On-Demand
Interoperability for MNO’s CRM

• Mobile Security Solutions for • Mahindra Special Services


Mobile Subscribers Group – provide High End
Security Consultancy Services
• Global Mobile Video Telephony
Service • RTComm, Russia – deliver
joint data services throughout
• Application Performance Russia
Visibility Service
• Qtel – offer global connectivity
services
Our Vision for
ANNUAL
GENERAL The New World of
MEETING
August
g 6,, 2010 Communications
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
Our Vision

Flexibility New
to Manage Growth
Uncertainty
Markets

New World of Communications

Cost
Control
Tata Communications in numbers

32 42
Billion Minutes Data Centers
of International with more than 10,000
racks
Voice Traffic

8 1,600
Terabits of Petabits every
International month on our
Bandwidth Lit Capacity Internet
backbone
Business Portfolio - Update

Global Voice Global Data India


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

Integrated Wholesale
Build on our Wholesale
foundation
Our Position and Aspirations

Now Aspiration
p
India
To be
T b amongstt
Enterprise Data #1 #1 the leading
Wholesale LD Voice #1 #1 providers of
global/multi-
l b l/ lti
regional services
Global
to MNCs, with an
Wholesale International Voice #
#1 #1
Wholesale Connectivity Top 3 Top 3 emphasis
h i on
Enterprise Services New Top 10 emerging
markets and
managed d
services
Our Organization
Our Wholesale Scale

Direct Voice
1,600 Service
Providers 480 Bilaterals

IP Peering
785 Mobile
Operators 55 Partners

650 IP
Customers 40+ NNIs

Major Transformation Services Partnerships


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


ervices

Content Delivery Networking Application


Application Optimization
Optimisation
Network Se

Int. Leased Line Nat. Leased Line Internet MPLS


Access Services (Wireless, Wireline) WAN Ethernet
Media & Entertainment: Segment Solutions

B t i Cl
Best-in-Class Integrated
I t t d Portfolio
P tf li

Satellite Video
Mosaic
B
Broadcast
d t C
Connectt
Infrastructurre
Global Mediia

Content Delivery
MPLS Ethernet
Delivery

Network (CDN)

Managed Managed Hosting


Global IP
Security
y and Storage
g
Network
Services Services

Enabling 
Services
23

23
Banking & Financial Services: Segment Solutions

Banking Infrastructure with Hosted


One-Window Service Management Core
Started operations in April 2009 Banking
L
Launched
h d “pay-per-use”
“ ” end-to-end
dt d Solution
ATM outsourcing
End-to-End
Managing 1
1,000+
000+ ATMs and 3
3,000+
000+ PoS
P S
PoS
carrying 32% of India’s point-of-sale Service
transactions
End-to-End
ATM
Se ce
Service
24
Broadband Wireless Access (BWA)
Spectrum Auction Update

Participated
p for all-India spectrum
p
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,
play including managed services
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
Continued Global Industry Recognition

Best Global Wholesale Offering Award, 2009 – Capacity


Magazine

#1 Enterprise Data Services Provider in India 2009 –


Frost & Sullivan

Product Innovation award for Managed Telepresence,


2009 – Frost & Sullivan

Mr. N Srinath named world’s eighth most influential


telecom personality – Global Telecoms Business
magazine

Telepresence Managed Service Provider of the Year,


2009 – European CEO

“Best service coverage”, 2009 – Optical Transmission


Vision (OTV) APAC Network Operator Award

Entered the Gartner’s Magic


g Quadrant for Global Network
Service Providers, 2010
Strategic Focus: 2010-2012

Redefine “Wholesale”
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


home market
market” (in addition to India and
South Africa)
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
Compensation Matter

The Single Judge Bench of Bombay High Court on 7 July 2010 decided that it did not have
the jurisdiction to entertain the suit in view of the provisions of the Telecom Regulatory
A th it off India
Authority I di Act,
A t 1997

Suit was not filed pursuant to, under and consequent upon the breach of terms of the
licence.

The dispute did not relate to provision of telecommunication services as envisioned under
the TRAI Act.

Company is examining options including filing of appeal


Surplus land: Acquisition notices

The land identified in 2002 for demerger at different locations measured about
773.13 acres

Discussions with Government continue

Out of which about 85 acres of land is situated at Padianallur near Chennai


L t year 32.5
Last 32 5 acres was transferred
t f d to
t the
th Employees’
E l ’ Housing
H i Society
S i t att Chennai
Ch i
as per the High court order

Now, the Govt. has sent acquisition notices at Padianallur near Chennai and at
Greater Kailash I, New Delhi which are part of the surplus land
Land at Padianallur is proposed to be acquired for highway development measures
about 1,102 sq mtrs

At GK I, New Delhi, land proposed to be acquired for road widening measures about
234 square mtrs
Thank You