FY10 Earnings & Strategy Update gy p to Shareholders August - - PowerPoint PPT Presentation

FY10 Earnings & Strategy Update gy p to Shareholders

August 6, 2010 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

• utside our control. Important factors that could cause actual results to differ

p 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 r intentions plans e pectations ass mptions and beliefs abo t the 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

• therwise.

ANNUAL GENERAL MEETING August 6, 2010

FY10 Financials

g ,

Financial Highlights: FY10

11 026

Consolidated Gross Revenues Consolidated EBITDA

Rs crores As Per India GAAP 9,963 11,026

1,350 1,012

FY 09 FY 10

Consolidated PAT Consolidated PBT

FY 09 FY 10 423

Consolidated PAT Consolidated PBT

316

(681)

(598)

FY 09 FY 10

FY 09 FY 10

The PAT Movement: FY09 to FY10

316 200 400 10 200

• Addl. N eotel Losses
• Addl. D ep

(314) (400) (598)

• 400
• 200

(210)

• 800
• 600

Segment Revenues: FY10

Global Voice Global Data

Rs crores As Per India GAAP 5 629 6,147 3 872 4,189

5,629 3,872

Others

462 690

FY 09 FY 10

Gross Revenue Split by Business & Segment (FY10)

RBU/Oth 6%

E t i

Voice 56%

Service Provider 21% Enterprise 17%

Data 38%

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

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

FY 10 Total: Rs 5 652Crores

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

FY 10 Total: Rs 5,652Crores

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

Net Revenue Growth & Mix Net Revenue (Rs Cr)

4,154 5,631 5,652 CAGR 17%

5% 4% 4% 1% 4% 8%

225% 6%

68% 65% 67%

17%

26% 26% 21% FY08 FY09 FY10

4%

Voice Data Broadband Neotel

Key Metrics: EBITDA Margins

EBITDA Margin (%)

21% 24% 18% On Gross R 11% 14% 9% 18% Revenue On Net Revenue FY08 FY09 FY10

Key Metrics: Capex

Key Investment Areas

• Submarine Cables
• IP, MPLS & Ethernet Expansion

C

• Data Centers
• New / Managed Services

FY07 – FY10: $1.99 Billion

Major Announcements & Launches

Innovative Products & Services Partnerships Strategic Investments

• Video Connect - Dedicated

global video network

• Managed Two-Factor

Authentication as a Cloud-

• BT – Global Strategic Voice

Services Agreement

• Whygo, Starwood, CWT,

Dimension Data – expand

• Acquired BT Group plc’s

Mosaic business – Media Management platform

based Service

• Global 10 Gigabit Ethernet

Service

• IP Exchange (IPX) solution to

reach of Telepresence

• Tyco Telecommunications –

construct TGN Gulf cable system

Management platform

• Set up 55,000 sq ft. data

centre in Pune – for Co- location, Managed Hosting & Storage

c a ge ( ) so u o

• enable Universal Service

Interoperability for MNO’s

• Mobile Security Solutions for

Mobile Subscribers

• SugarCRM – On-Demand

CRM

• Mahindra Special Services

Group – provide High End Security Consultancy Services

g

• Global Mobile Video Telephony

Service

• Application Performance

Visibility Service Security Consultancy Services

• RTComm, Russia – deliver

joint data services throughout Russia

• Qtel
• ffer global connectivity
• Qtel – offer global connectivity

services

Our Vision for Our Vision for The New World of Communications

ANNUAL GENERAL MEETING August 6, 2010 g ,

The New World requires

MORE LESS MORE

MORE

LESS

LESS

Cost

MORE

MORE

LESS

LESS

and

Connected Complexity Carbon Speed Face-to-face Constraint Capital Secure Pay-per-use

Our Vision

Flexibility to Manage

New

to Manage Uncertainty

Growth Markets

New World of Communications

Cost Cost Control

Tata Communications in numbers

32

Billion Minutes

• f International

Voice Traffic

42

Data Centers

with more than 10,000 racks

32 42 8

Terabits of International Bandwidth Lit Capacity 1,600 Petabits every

month on our Internet backbone

8 1,600backbone

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

• Wireline and Wireless

(WiMax and WiFi) networks in India

• Neotel (49%)

South Africa’s second network

• perator
• Non-stop around

the world IP Backbone

• India’s #1 in Enterprise

Data Services

• FOCUS on SMB
• TTSL (strategic

investment)

• BitGravity CDN

technology start-up

• Focus on Managed

Services gy p

• UTL in Nepal

Our Leadership Strategy

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

Managed Emerging

Drive catalyst services for Enterprises

Services Markets

India Leadership

Define and empower profitable model for Service Providers

Integrated Wholesale

• de s

Build on our Wholesale foundation

Our Position and Aspirations

Now Aspiration

T b t

India Enterprise Data Wholesale LD Voice p

#1 #1 #1 #1

To be amongst the leading providers of l b l/ lti

Global Wholesale International Voice #1 #1

global/multi- regional services to MNCs, with an h i

Wholesale Connectivity Enterprise Services # Top 3 New Top 3 Top 10

emphasis on emerging markets and d managed services

Our Organization

Our Wholesale Scale

1,600

Service Providers

480

Direct Voice Bilaterals

785

Mobile Operators

55

IP Peering Partners

650

IP Customers

40+ NNIs

Major Transformation Services Partnerships

Our Enterprise Solutions Suite

UNIFIED COMMUNICATIONS

Collaboration Security Data Center Voice Solutions

Web Conferencing

Services

Audio Conferencing Firewall Anti-X Colocation Services Managed Hosting VoIP VcIPLC

Managed

Business Messaging Telepresence Video Conferencing vUTM IDS/IPS mDDoS Managed Storage Virtualization Hosted Contact Center IPVoice Connect Hosted PBX

NETWORK OPTIMIZATION SERVICES

Application Optimisation ervices

Content Delivery Networking Application Optimization

• Nat. Leased Line

Internet MPLS Access Services (Wireless, Wireline) WAN Ethernet

• Int. Leased Line

Network Se

Media & Entertainment: Segment Solutions

B t i Cl I t t d P tf li

Satellite B d t Video C t Mosaic

Best-in-Class Integrated Portfolio

Content Delivery

ia re

Broadcast Connect Mosaic

Content Delivery Network (CDN) MPLS Ethernet

lobal Medi Delivery frastructur

Global IP Network Managed Security Managed Hosting and Storage

Enabling Services

G In

Network y Services g Services 23

Services

Banking & Financial Services: Segment Solutions

Banking Infrastructure with

Hosted

One-Window Service Management Started operations in April 2009 L h d “ ” d t d

Core Banking Solution End-to-End P S

Launched “pay-per-use” end-to-end ATM outsourcing Managing 1 000+ ATMs and 3 000+ PoS

Solution PoS Service

Managing 1,000+ ATMs and 3,000+ PoS carrying 32% of India’s point-of-sale transactions

End-to-End ATM Service Se ce

Broadband Wireless Access (BWA) Spectrum Auction Update

Participated for all-India spectrum p 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 including managed services SaaS and cloud 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

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 Quadrant for Global Network g Service Providers, 2010

Strategic Focus: 2010-2012

Redefine “Wholesale” – Integrated, Turnkey, White Label 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 Create at least one new home market (in addition to India and South Africa)

In Conclusion…

Global player with its heart in the Emerging Markets 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 f I di A t 1997 Authority of India Act, 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 32 5 t f d t th E l ’ H i S i t t Ch i Last year 32.5 acres was transferred to the Employees’ Housing Society at Chennai 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