Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Presentation (May 2022)
30 slides from Tata Communications's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
Investor Presentation May 2022 Tata Communications - Public
Slide 2: Index
Index Business overview 03 Strategic overview 13 Our key stakeholders 18 Performance overview 22 Tata Communications - Public
Slide 3: Business overview
Business overview Tata Communications - Public
Slide 4: We are Tata Communications
Introduction We are Tata Communications A digital ecosystem enabler, part of 12,000+ 37+ India’s multibillion-dollar conglomerate, employees diverse the prestigious Tata Group. worldwide nationalities We enable the digital transformation of enterprises, globally – unlocking opportunities for busines
Slide 5: Providing connectivity to the world
Introduction Providing connectivity to the world 30% #1 80% Global internet routes Enterprise data and Cloud giants are connected to carried by us colocation services in India their businesses through us 4 of 5 Leader #1 Global mobile subscribers In Gartner’s Magic Quadrant Wholesale voice provider
Slide 6: Numbers that matter | Q4 FY22
Key Performance Indicators Numbers that matter | Q4 FY22 Our Data business remains instrumental to our overall revenue. Data Revenue continues to improve sequentially reporting positive growth for the third consecutive quarter. Revenue EBITDA (Rs. in crore) (Rs. in crore) Rs. 365 Crores 425 PAT 537
Slide 7: Numbers that matter | FY22
Key Performance Indicators Numbers that matter | FY22 Our Data business remains instrumental to our overall revenue and continues to grow YoY on the back of growth across most of the products in our Data Portfolio. Revenue EBITDA (Rs. in crore) (Rs. in crore) Rs. 1482 Crores 1,660 PAT 85 2,286 153 R
Slide 8: Transformation is in our DNA
Our evolution Transformation is in our DNA 2014 2017 2018-20 2021 Launched the most Launched Getting ready for the GoI exits TCL by comprehensive NetFoundry, next wave of growth divesting its 26% 2005-06 2008 2010 cloud enablement a revolutionary as a global digital stake in the company • Acquired T
Slide 9: Tata Communications at a glance
What, why and how Tata Communications at a glance Why we exist Deliver a new world of communications to the industry and our customers Enabling borderless Boosting product innovation Enhancing productivity Building agility Managing risk CUSTOMER DRIVERS growth and customer experience and efficiency
Slide 10: Providing solutions for every stage of digital maturity
What we do Providing solutions for every stage of digital maturity Helping customers unlock opportunities through digital transformation - enabling borderless growth, boosting product innovation and customer experience, improving productivity and efficiency, building agility and managing risk. CONTE
Slide 11: We cater to multiple industries
Our customers We cater to multiple industries AUTOMOTIVE MEDIA & SPORTS MANUFACTURING PHARMACEUTICAL INSURANCE HEALTHCARE ENTERTAINMENT TELECOM BANKING CONSTRUCTION SERVICES FINANCE ENERGY RETAIL IT/ITES CONSULTING REAL ESTATE E-LEARNING E-COMMERCE GOVERNMENT Tata Communications - Public
Slide 12: Representing some of the biggest brands
Our customers Representing some of the biggest brands Tata Communications - Public
Slide 13: Our globally local digital infrastructure
How we do it Our globally local digital infrastructure Tata Communications has the largest wholly owned and most advanced subsea Seamless Our IZO™ Hybrid WAN is fibre network which Connectivity services across available over underpins the internet major business hubs through 190 countries backbone.
Slide 14: Strategic overview
Strategic overview Tata Communications - Public
Slide 15: Trends shaping the industry
Operating context Trends shaping the industry We facilitate businesses to pursue digital transformation through navigating new and emerging technologies, to transition seamlessly into a more intelligent future. Platform economy Managed services Enterprise mobility Internet of Things (IoT) 7 of 10 12
Slide 16: Our opportunity landscape
Market we address Our opportunity landscape While all areas of our portfolio are expected to grow, 6 Available Market 2024 key pillars have been identified to significantly contribute to our growth in revenue. Core Connectivity Next Generation Connectivity CAGR (1.9%) CAGR 14.5% 2024 $132Bn 2024 $18
Slide 17: Recognised for excellence
Analyst views Recognised for excellence We’re positioned as a Leader in the 2022 Gartner Magic Quadrant for Network Services, Global - 9 years in a row Analyst take on Tata Communications • Tata Communications’ IZO internet WAN offer provides an enhanced internet service with deterministic routing a
Slide 18: Recognised for excellence: industry accolades
Industry accolades Recognised for excellence Major Player in 2021 WW CDN Vendor Market Leader in Avasant SD- Great Place to Work- Major Contender : IT Managed Scape – 2nd time WAN Managed Services Certified™ from April Security Services PEAK Matrix® Assessment Major Player in IDC Market Scape: Asia/
Slide 19: Our key stakeholders
Our key stakeholders Tata Communications - Public
Slide 20: Maximising long-term intrinsic value
Our shareholders Maximising long-term intrinsic value The sustained trust and confidence of our shareholders enable us to remain focused on achieving our strategic objectives and maximizing long-term returns. Shareholding pattern as of 31 Mar 2022 Drive capital efficiency Improve margin profile • Re
Slide 21: Sustainability and CSR
Our community Sustainability and CSR ENABLING SUSTAINABILITY AS KEY DRIVER FOR BUSINESS INNOVATION & GROWTH • We are uniquely positioned to deliver the digital future now while doing good for People, the Planet and Communities • Our goal is to make a positive, tangible impact on the environment and
Slide 22: Our DRIVE culture
Our People Our DRIVE culture Despite 2021 being a difficult year, we saw an improvement in per Total outreach, impacting employee learning days, translating into a 35% increase in total learning person-days to 112,782. We view our success as a result of the unstinting 6,80,409 lives commitment of ou
Slide 23: Performance overview
Performance overview Tata Communications - Public
Slide 24: Revenue | EBITDA | FCF (Quarterly)
Key financials (Quarterly) Revenue | EBITDA | FCF REVENUE* Revenue Growth % QoQ YoY Q4 FY 22 3,301 537 425 4,263 Data 2.1% 6.9% Q3 FY 22 3,233 554 398 4,185 • Consolidated revenues increased by 4.7% YoY. Voice (3.1)% (3.8%) Data revenue grew by 2.1% QoQ and 6.9% YoY Q4 FY 21 3,088 558 427 4,
Slide 25: Revenue | EBITDA | FCF (Annual)
Key financials (Annual) Revenue | EBITDA | FCF REVENUE* • Consistent strong growth in Data Business Revenue Growth % FY 20 FY 21 FY 22 FY 22 12,779 2,286 1,660 16,725 despite industry challenges Data 7.4% 6.1% 1.4% FY 21 12,599 2,791 1,710 17,100 Voice (12.8%) (17.3%) (18.1%) • Data busi
Slide 26: Performance Highlights | Net Debt
Key financials (Annual) Performance Highlights | Net DEBT Net Debt Net Debt to EBITDA USD Mn 4.0 1,600 3.0 1,216 1,193 1,170 3.1 1,200 1,091 1,065 1,076 1,046 2.8 967 2.0 2.6 889 2.3 1.9 1.8 1.9 1.9 800 1.7 1.6 1.0 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 400 Cost of Deb
Slide 27: Geographical spread
Key financials (Annual) Geographical spread Gross Revenue Share by Geography* - 15.0% 30.0% 50.0% 43.2% 12.0% 25.0% 40.0% 10.3% 19.5% 33.1% 9.0% 20.0% 9.0% 30.0% 15.0% 13.0% APAC 6.0% Europe 10.0% India 20.0% 3.0% 5.0% 10.0% 0.0% 0.0% 0.0% FY 16 FY 22 FY 16 FY22 FY 16 FY22 30.0% 12.0% 10.7% 26.9% 25
Slide 28: Key reflections
Concluding remarks Key reflections Rising cloud adoption, Riding on global demand for Intelligent Transformation driving demand Positioned as “Leader” in Developing platform play Data growth connectivity and need for for hosting, SD WAN and Gartner magic quadrant for across offerings to create a eng
Slide 29: Thank you
Thank you www.tatacommunications.com Contact for investor queries: investor.relations@tatacommunications.com © 2021 Tata Communications. All rights reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Private Limited. Tata Communications - Public
Slide 30: Gross revenue mix | EBITDA mix | Operating FCF mix
Key financials (Annual) Gross revenue mix | EBITDA mix | Operating FCF mix Gross revenue mix EBITDA mix Operating free cash flow mix • There has been a significant shift in 14% the mix of our business, with Data 20% 16% 5% dominating both in terms of 4% 6% 4% Revenue, EBITDA and Free Cash Flow, and
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