Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Day (June 2024)
57 slides from Tata Communications's investor day presentation, June 2024
Slide 1: Institutional Investors & Analysts Meet 2024
TATA ‘aq INSTITUTIONAL INVESTORS & ANALYSTS MEET 2024 1274 JUNE 2024, =
Slide 2: Safe Harbour
SAFE HARBOUR 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, uncer
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Click to edit Master title style Growth 21.9% 17,181 233 FY23 274 FY24 Click to edit Master subtitle style 14,096 +18 FY23-FY24 Customers Added FY23 FY24 5
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3,446 7,053 Digital Portfolio CAGR 19.6% FY20 FY24 of Data Revenue Click to edit Master title style Click to edit Master subtitle style FY20 FY24 FY20 FY24 FY20 FY24 FY20 FY24 FY20 FY24 6 *Includes NetFoundry
Slide 7: Riding the India growth story; scaling international with Digital Fabric
RIDING THE INDIA GROWTH STORY; SCALING INTERNATIONAL WITH DIGITAL FABRIC Market leader in BFSI, Investments in new ITeS, Manufacturing & platforms will expand TAM Retail; Digital Fabric and Wallet Share in Click to edit Master title style deployed in key federal International markets projects Click
Slide 8: Riding the India growth story; scaling international with Digital Fabric
RIDING THE INDIA GROWTH STORY; SCALING INTERNATIONAL WITH DIGITAL FABRIC Market leader in BFSI, Investments in new ITeS, Manufacturing & platforms will expand TAM Retail; Digital Fabric and Wallet Share in Click to edit Master title style deployed in key federal International markets projects Click
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Slide 10: The future is hyperconnected ecosystems
THE FUTURE IS HYPERCONNECTED ECOSYSTEMS Click to edit Master title style Click to edit Master subtitle style Real Time Always ON – Seamlessly Intelligent & Anywhere ON Collaborative Always Learning 10
Slide 11: The Digital Fabric
We are Click toThe editDigital Master title style Fabric Click to edit Master subtitle style enabling enterprises to succeed in their 11
Slide 12: Our Digital Fabric well positioned to serve these needs
OUR DIGITAL FABRIC WELL POSITIONED TO SERVE THESE NEEDS Click to edit Master title style Click to edit Master subtitle style B2B specialist with Most performant network 600+ MNO relationships Unparalleled breadth curated digital solutions with direct connection to enabling mobile and depth in the Di
Slide 13: What is driving demand for our Digital Fabric?
WHAT IS DRIVING DEMAND FOR OUR DIGITAL FABRIC? Network Cloud & Security • • Click to edit Master title style Convergence of Network & Security, Wired & Wireless Cloud Networking category due to rising complexity/cost • Hybrid, complex cloud landscape – Private + Public + Purpose built clouds, increa
Slide 14: Network Fabric: what is our right to win?
NETWORK FABRIC: WHAT IS OUR RIGHT TO WIN? Investment in transforming the Tier 1 network which is now software defined - composable, intent based & intelligent platform with on demand service features Click to edit Master title style Investment in new platforms such as Multi Cloud Connect, a software
Slide 15: Cloud & Security Fabric: what is our right to win?
CLOUD & SECURITY FABRIC: WHAT IS OUR RIGHT TO WIN? CLOUD Fully compliant & purpose-built sovereign cloud Click to edit Master title style No lock in, performant & scalable cloud Investment in & launch of CloudLyte – an Edge Platform Direct connectivity to allClick to edit cloud giants Master subtitl
Slide 16: Interaction Fabric: what is our right to win?
INTERACTION FABRIC: WHAT IS OUR RIGHT TO WIN? Comprehensive Customer Interaction Suite - Combined capabilities of Next-Gen CPaaS, CCaaS and UCaaS Click to edit Master title style platforms for seamless integration & reduced total cost of ownership Next-gen interaction platform with rich OTT conversa
Slide 17: IoT Fabric: what is our right to win?
IoT FABRIC: WHAT IS OUR RIGHT TO WIN? Unique capability to offer seamless & converged connectivity through Mobile as well as Stationary networks Click to edit Master title style – 4G/5G, Private 5G, LoRa WAN, WiFi 6 Multi-access, insight rich, secure and modular IoT enablement & orchestration platfo
Slide 18: Our relevance is growing
OUR RELEVANCE IS GROWING As enterprises prioritise digital transformation, the available market of our digital fabric is expanding Click to edit Master title style Bn Investments in new platforms expanding and deepening our TAM Bn Click to edit Master subtitle style Bn Bn Bn Bn Bn Bn 18 Source: Ente
Slide 19: Media & Entertainment services - a future of WOW, delivered now
MEDIA & ENTERTAINMENT SERVICES - A FUTURE OF WOW, DELIVERED NOW Increasing volume of content Need to personalize content getting distributed experiences for fans across demographics Click to edit Master title style Cost pressure from uptick in media rights spend The trinity: Cloud, Gaming, Interacti
Slide 20: Media & Entertainment services - a future of WOW, delivered now
MEDIA & ENTERTAINMENT SERVICES - A FUTURE OF WOW, DELIVERED NOW Click to edit Master title style Video Transmission Video Production Media Hub Media Cloud Click to edit Master subtitle style Global Streaming Majors Global media transport network to over 1,000+ CloudLyte edge platform for Media with
Slide 21: Leveraging the CommTech play
LEVERAGING THE COMMTECH PLAY Click to edit Master title style Creating a differentiated space Click to edit Master subtitle style 79 70 FY24 FY20 Creating & We Are capturing new demand Breaking the value cost trade off 21
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Slide 23: Embedding AI in our internal processes
EMBEDDING AI IN OUR INTERNAL PROCESSES 97% Click to edit Master title style 20+ Data Science and Modeling teams Trouble ticket automation in service assurance Click to edit Master subtitle style 60% Of India orders 1,240+ Zero touch auto feasibility engine Employees trained in AI $4.2 Mn 30% reducti
Slide 24: Embedding AI in the products
EMBEDDING AI IN THE PRODUCTS Network Analytics AI Cloud Security Click to edit Master title style Network fault prediction & Platform as a Service & AI for advanced threat bandwidth on demand Infrastructure as a Service detection & response Exceeding industry benchmark, 80% accuracy Click to edit Ma
Slide 25: Well poised to capture the AI opportunity
WELL POISED TO CAPTURE THE AI OPPORTUNITY Our AI Cloud Architecture Our Offerings Workloads Snapshot Click to edit Master title style GPU as a Service Scalable GPU clusters with flexible reserve & on-demand hourly rates We are ready Click to edit Master subtitle style to leap big Model as a Service
Slide 26: Digital Fabric must for enterprises to accelerate and embrace AI
DIGITAL FABRIC MUST FOR ENTERPRISES TO ACCELERATE AND EMBRACE AI AI Embedded Tata Communications Digital Fabric Click to edit Master title style Click to edit Master subtitle style Relevance Quotient is accelerating fast 26
Slide 27: Our ESG initiatives aligned with Tata Group's Project Aalingana
OUR ESG INITIATIVES ARE ALIGNED WITH TATA GROUP’S PROJECT AALINGANA People Planet Community Our investment in capacity & Our Sustainability journey has Community at the heart of Click to edit Master title style capability is bearing fruit gathered pace everything we do Top Quartile, benchmark ESAT:
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28,000 Cr.* Click to edit Master title style 17,898 Cr. FY-27 Click to editFY-24 Master subtitle style 14,096 Cr. FY-23 * Data Revenue 28
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Slide 30: Technology continues to be on top of the agenda of CEOs
TECHNOLOGY CONTINUES TO BE ON TOP OF THE AGENDA OF CEOS Mortality rate is increasing Click to edit Master title style of CEOs Click to edit Master subtitle style Technology as the savior Tangible ROI of tech of CEOs investments Sources:- PWC CEO Survey 2024; Gartner CEO Survey 2024
Slide 31: India continues to offer growth opportunities
INDIA CONTINUES TO OFFER GROWTH OPPORTUNITIES Click to edit Master title style o Demand for integrated solutions Click to edit Master subtitle style o Co-creation approach v/s standard solutions o Government spends on cloud, security, citizen services o Retail players aiming IT simplification & real
Slide 32: India continues to offer growth opportunities
INDIA CONTINUES TO OFFER GROWTH OPPORTUNITIES DP&S share increased by increased by 50% in 5 years Click to edit Master title style o Demand for integrated solutions Large Deal count increased 2x Click to edit Master subtitle o Co-creation approach v/s standard style in 2 years solutions o Government
Slide 33: The international market trends indicate many areas of participation
THE INTERNATIONAL MARKET TRENDS INDICATE MANY AREAS OF PARTICIPATION Click to edit Master title style o Cost Transformation as a lever to fund innovation Click to edit Master subtitle style o Need for demonstrating ROI and business outcomes for tech investments o Prioritizing investments on proposit
Slide 34: The international market trends indicate many areas of participation
THE INTERNATIONAL MARKET TRENDS INDICATE MANY AREAS OF PARTICIPATION DP&S share increased by 90% Click to edit Master title style in 5 years o Cost Transformation as a lever to fund innovation 2x growth in new logo acquisition Click to edit Master subtitle style in 2 years o Need for demonstrating R
Slide 35: Our customers' priorities in key tech areas align with our value promise
OUR CUSTOMERS PRIORITIES IN KEY TECH AREAS ALIGN WITH OUR VALUE PROMISE Click to edit Master title style Click to edit Master subtitle style Cost Security Management Unpredictable Replacing VPNs Prioritising Enhancing Changing escalation concerns complexity costs for secure secure internet omni-chan
Slide 36: Enabling us to scale our key propositions
…ENABLING US TO SCALE OUR KEY PROPOSITIONS Click to edit Master title style Click to edit Master subtitle style IZOTM Private Cloud MCC SDWAN SASE CIS 36
Slide 37: Our breadth & depth of market participation is increasing
OUR BREADTH & DEPTH OF MARKET PARTICPATION IS INCREASING New Buying Centres Click to edit Master title style Click to edit Master subtitle style New Areas of New Customer Participation Segments 37
Slide 38: From tech debt to tech dividend via cloud solutions
FROM TECH DEBT TO TECH DIVIDEND VIA CLOUD SOLUTIONS • Integrating New CRM & Contact • Scalable multi geography Centre contact centres • Click to edit Master title style Inconsistent CX, High Cost, Legacy Tech Debt Empowered cloud first experiences • Higher NPS through superior CX • Integrating multi
Slide 39: Bringing world's third largest sporting spectacle to life
BRINGING WORLD’S THIRD LARGEST SPORTING SPECTACLE TO LIFE • Transformation of complex TV • Scale: Deliver live video from 50+ production from onsite to cloud events annually to over 1 Bn Click to edit Master title style viewers from 140+ countries • Multiple vendors for network, video globally trans
Slide 40: Enabling next generation omni channel customer engagement
ENABLING NEXT GENERATION OMNI CHANNEL CUSTOMER ENGAGEMENT • No uniform CX & brand • ~16% growth in post-sales experience across dealers revenue generation • Click to edit Master title style Declining service revenues • ~27% decrease in cost to serve 360-degree Digital Customer • Lower close rates Cl
Slide 41: Enhancing customer experience for one of the top UK retailers
ENHANCING CUSTOMER EXPERIENCE FOR ONE OF THE TOP 3 UK RETAILERS • Improve CX through omni- LEADING UK • 220 Mn interactions annually channel experience RETAILER improving CX by ~5% • Click to edit Master title style Reducing operational costs, be competitive • • 20-25% reduction in operational costs
Slide 42: We are being noticed for our impact and successes
WE ARE BEING NOTICED FOR OUR IMPACT AND SUCCESSES… Click to edit Master title style Click to edit Master subtitle style India UK 42
Slide 43: Our marketing investments are strengthening our visibility across markets
AND OUR MARKETING INVESTMENTS ARE STRENGHTENING OUR VISIBILITY ACROSS MARKETS Click to edit Master title style Click to edit Master subtitle style 43
Slide 44: Our digital-led marketing motion is widening and supporting our sales funnel
OUR DIGITAL-LED MARKETING MOTION IS WIDENING AND SUPPORTING OUR SALES FUNNEL Click to edit Master title style • Always on brand and product level ads Click• to editdomain Showcase Master subtitle expertise with specific style • Provide attractive offers like demos or trials products/ propositions •
Slide 45: We are being recommended by analysts across our portfolio
WE ARE BEING RECOMMENDED BY ANALYSTS ACROSS OUR PORTFOLIO… • ISG Contact Centre FY24 report Click to edit Master title style Total Flagship reports in FY24 • Juniper - Multiple reports • Avasant NMS FY24 • IDC - Multiple reports Rated 'Leaders' in flagship reports • ISG – Managed SDWAN Click to edit
Slide 46: Our category leadership is being acknowledged across the portfolio
..AND OUR CATEGORY LEADERSHIP IS BEING ACKOWLEDGED ACROSS THE PORTFOLIO Click to edit Master title style 11 Years of being leader in the Gartner Magic Quadrant for Global Network Services Managed Multi-Cloud Service Provider of the year (India) Leader in UCC Specialist Services Major Player in Cloud
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28,000 Cr. Click to edit Master title style FY-27 17,181 Cr. Click to edit Master subtitle style 41% 60%+ FY-24 274 400+ 14,096 Cr. FY-23 Leader (IND) & Leader (IND) & Peripheral (INTL) Formidable Challenger (INTL) 47
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Slide 49: We are in full control of our KPIs
WE ARE IN FULL CONTROL OF OUR KPIS 2.8 Net Debt 1.3 2.2 to EBITDA <2x Click to edit Master title style 11.5% 28.3% 18.8% ROCE > 25% Click to edit Master subtitle style EBITDA 19.3% 24.2% 20.2% 23-25% Margin FY20 FY23 FY24 FY27 Invested ~USD 610 Mn into business in FY 24 including inorganic investmen
Slide 50: Fit to Grow framework
FIT TO GROW FRAMEWORK Click to edit Master title style Click to edit Master subtitle style 50
Slide 51: Creating capacity to accelerate growth
CREATING CAPACITY TO ACCELERATE GROWTH Accelerating Capture new business synergies from opportunities & ride Click to edit Master title style recent acquisitions megatrends Click to edit Master subtitle style Driving destination Continuously invest in margins for each offering in the innovation and
Slide 52: Decoding our EBITDA ambition
DECODING OUR EBITDA AMBITION Click to edit Master title style Click to edit Master subtitle style 20.2% 23%-25% 52
Slide 53: How do we return to our ROCE ambition?
HOW DO WE RETURN TO OUR ROCE AMBITION ? • Driving Sustainable and Profitable Revenue Growth • Driving Operating Leverage Click to edit Master title style Click to edit Master subtitle style 18.8% 23%-25% >25% • Improving cash flow generation • Unlocking value in Balance Sheet • Maximizing return on
Slide 54: Investing for growth across dimensions
INVESTING FOR GROWTH ACROSS DIMENSIONS Click to edit Master title style Click to edit Master subtitle style ~2% Of Gross Revenue Average Capex of ~USD 180 ~USD 130 Mn invested in last 2 ~USD 360 Mn with 3 Mn over the last 3 years years acquisitions in a row in FY24 BAU Investments on the Customer an
Slide 55: Monetizing synergies as we scale our inorganic investments
MONETIZING SYNERGIES AS WE SCALE OUR INORGANIC INVESTMENTS Focus on eliminating Cross Selling Tata Comm Digital redundancies and optimizing Fabric to new logos acquired and processes to drive penetrating CIS within Tata Group efficiencies and existing customers Click to edit Master title style Click
Slide 56: Value unlocking an important catalyst to our growth engine
VALUE UNLOCKING AN IMPORTANT CATALYST TO OUR GROWTH ENGINE Click to edit Master title style Click to edit Master subtitle style 56
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