Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Day (June 2021)
49 slides from Tata Communications's investor day presentation, Jun 9, 2021
Slide 1: Tata Communications Analyst Day Meet
TATA COMMUNICATIONS ANALYST DAY MEET 09/06/2021
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
Slide 3: Tata Communications as a Digital Ecosystem Enabler
TATA COMMUNICATIONS AS A DIGITAL ECOSYSTEM ENABLER DELIVER A NEW WORLD OF COMMUNICATIONS TO THE INDUSTRY AND OUR CUSTOMERS Deliver customer Enhance CUSTOMER Borderless Build Manage experience and productivity DRIVERS growth agility risks product innovation and efficiency Customer intimacy Next Gener
Slide 4: Our Strategy: Revisited
OUR STRATEGY : REVISITED HEALTHY BALANCE SHEET AND FINANCIAL DOUBLE DIGIT PROFITABLE DATA GROWTH FITNESS POSITIONING AS A DIGITAL ECOSYSTEM ENABLER GROWTH WHO WHAT HOW PLAN DRIVE LEADERSHIP BEHAVIOURS CULTURE 4
Slide 5: Our Goals in Review – Growth Plans: Who
OUR GOALS IN REVIEW – GROWTH PLANS WHO IMPERATIVES STEPS / SUCCESS MARKERS Deeper with Fewer – Focused Programmes (Top 300 Top 1000 customer focus and Next 700 Programme) for engagement and account planning Voice of Customer Customer Centricity – NPS improvement Marketing Initiatives - Strengthening
Slide 6: Our Goals in Review – Growth Plans: What
OUR GOALS IN REVIEW – GROWTH PLANS WHAT IMPERATIVES STEPS / SUCCESS MARKERS Product-to-Platforms with 1-3-30 approach right scaling and efficiency Agile New Product Innovation 3 Business Units Revamped Operating Structure • Network for greater business focus • Collaboration and Connected Solutions •
Slide 7: Our Goals in Review – Growth Plans: How
OUR GOALS IN REVIEW – GROWTH PLANS HOW IMPERATIVES STEPS / SUCCESS MARKERS Right Operating Model with Analytics, AI and OPTIMUS automation and agility Customer-focus: Dedicated service desk, Multilingual Services, Advisory & Professional Services Value-added Service Wrap Solution-focus: Service Desi
Slide 8: Our Goals in Review – Financial Fitness
OUR GOALS IN REVIEW – FINANCIAL FITNESS HEALTHY BALANCE SHEET AND DOUBLE DIGIT PROFITABLE GROWTH REVISED MEDIUM ACTUAL STATUS TERM TARGETS OTHER FY 21 ROCE 24.6% v/s 25-30% ACHIEVEMENTS ROCE Target – 20% 11.5% in FY 20 Positive Net- Worth Trajectory Reduction of Debt Reduction by Maintain Optimal IN
Slide 9: Financial Fitness Redefined
FIT TO COMPETE FINANCIAL FITNESS REDEFINED FIT TO GROW 9
Slide 10: Finance
FINANCE KABIR AHMED SHAKIR Chief Finance Officer
Slide 11: Fit to Compete
FIT TO COMPETE EBITDA Margin RoCE 24.9% 24.6% 19.3% 16.6% 14.4% 13.4% Medium term targets of 11.5% 8.3% a healthy balance sheet, 6.0% 5.1% growth in profitability and returns achieved FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Improved cash flows and Net Debt to EBITDA Free Cash Flow* profits
Slide 12: Fit to Compete
FIT TO COMPETE Data Revenue Data Margin % INR Crores 28.6% 5-yr CAGR 7.9% 13692 14309 22.1% 12655 11460 17.9% 18.0% 19.0% 10862 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Data EBITDA Maximum management focus on acceleration of Data Revenue growth INR Crores 5-yr CAGR 17.6% Current profitabili
Slide 13: Fit for Growth - Revving Up the Growth Engine
FIT FOR GROWTH - REVVING UP THE GROWTH ENGINE Drive profitable Drive scale benefits, • Continued focus on margin improvement, with positive mix and Maximise current growth incremental efficiencies to be invested back in margin expansion footprint while business seeding new opportunities and • Explor
Slide 14: Being Future Ready - Current Reporting Structure
BEING FUTURE READY - CURRENT REPORTING STRUCTURE TATA COMMUNICATIONS DATA VOICE Traditional Growth Services Services Innovation Subsidiaries Rental • VPN • UCC / SIP - T • MOVETM • Tata Communications • ILD • IPL • Hosting • IoT Transformation • NLD • ILL • GHCC • NetFoundryTM Services • Ethernet •
Slide 15: Being Future Ready - New Reporting Structure
BEING FUTURE READY - NEW REPORTING STRUCTURE TATA COMMUNICATIONS SUBSIDIARIES / DATA VOICE OTHER Core Digital Platforms Other Businesses Connectivity and Services Incubation • Network Transformation • Service Provider • Collaboration & CPaaS • MOVETM Services (TCTSL) • ILD • Enterprise • Cloud Hosti
Slide 16: Comparative View
COMPARATIVE VIEW TRADITIONAL SERVICES CORE CONNECTIVITY Amount in ₹, Cr; except ratios Amount in ₹, Cr; except ratios Full Year Full Year Quarter Ended Ended Ended Particulars Particulars Mar 2021 Dec 2020 Sep 2020 June 2020 Mar 2021 Mar 2021 Dec 2020 Sep 2020 June 2020 Mar 2021 Gross Revenue 2,277
Slide 17: Segmental Breakup
SEGMENTAL BREAKUP Full Quarter Ended Year Ended Particulars Mar 2021 Dec 2020 Sep 2020 June 2020 Mar 2021 Service Provider CORE CONNECTIVITY – 40% 40% 39% 41% 40% REVENUE SEGMENTATION (Wholesale) Amount in ₹, Cr; except ratios Enterprise 60% 60% 61% 59% 60% Full Year Quarter Ended Ended Particulars
Slide 18: Global Connectivity Services
GLOBAL CONNECTIVITY SERVICES GENIUS WONG Chief Technology Officer and Head Network Connectivity Services
Slide 19: Reimagining Enterprise Networks for the New World
REIMAGINING ENTERPRISE NETWORKS FOR THE NEW WORLD MARKET Digital Hyper-scale Digital-first Faster Internet transformation connectivity business models adoption SHIFTS ENTERPRISE Legacy WAN No SLAs on WFH Network and IT architecture internet security cost optimisation CHALLENGES NETWORK Internet and
Slide 20: Connectivity Services – Addressing Market Shifts
CONNECTIVITY SERVICES – ADDRESSING MARKET SHIFTS Software-Defined Underlay Network CORE CONNECTIVITY NEXT GEN CONNECTIVITY Global IZOTM Market size* (USD bn) Market size* (USD bn) VPN Platforms NEXT GEN CORE CONNECTIVITY CONNECTIVITY GLOBAL CAGR (1.9%) Internet Managed Wifi CAGR +14.5% NETWORK Servi
Slide 21: Connectivity Services - Overview
CONNECTIVITY SERVICES - OVERVIEW ENTERPRISE SERVICE PROVIDER India – Telecom Service Providers and ISPs India – Telecom Service Providers and ISPs Competition Global – Global Telecom Service Providers Global – Regional Telecom Service Providers • Single Point of contact to manage and • Presence acro
Slide 22: International Hybrid WAN (5 Year Journey) | Case Study
INTERNATIONAL HYBRID WAN (5 YEAR JOURNEY) | CASE STUDY BACKGROUND CHALLENGE SOLUTION • APAC based customer with~60 global sites, with • Bandwidth demand at all sites increased • Proposition combines IZOTM Internet WAN, IZOTM major Data Centers in UK and HK significantly due to SaaS adoption Private
Slide 23: Bandwidth on Demand | Global BFSI Customer | Case Study
BANDWIDTH ON DEMAND | GLOBAL BFSI CUSTOMER | CASE STUDY BACKGROUND CHALLENGE SOLUTION • Leading global BFSI organisation with more than • Flexibility needed to support dynamic • Offering: Mix of regional MPLS based connections 2000 branches in 19 countries across globe bandwidth consumption between
Slide 24: Delivering Growth – Meeting Demands of Customers
DELIVERING GROWTH – MEETING DEMANDS OF CUSTOMERS OUR WINNING EXECUTION OUR TARGET FORMULA PLAN • Higher speeds and on demand • Service coverage expansion globally via SERVICE PROVIDER solutions for Connectivity partnerships/POPs • Global top tier Telecom Service • Better Network Coverage with • On d
Slide 25: Collaboration & Connected Solutions
COLLABORATION & CONNECTED SOLUTIONS MADHUSUDHAN MR Head – Collaboration, CPaaS, MOVETM and IoT
Slide 26: Market Shifts
MARKET SHIFTS Managed collaboration platforms to reduce complexity Enterprise undergoing digital transformation • Trends toward remote workforce • Evolved needs and preferences beyond core connectivity • Network functional virtualisation and software defined network to create self-service IoT and Mo
Slide 27: Collaboration and Connected Solutions - Offering
COLLABORATION AND CONNECTED SOLUTIONS - OFFERING COLLABORATION & CPaaS CONNECTED SOLUTIONS Unified Conferencing and Collaboration (UCaaS) CPaaS India IoT • Global SIP • Application-2-Person MOVETM Messaging Solutions PLATFORM • Microsoft Teams solution • Cloud Communications AND • Cisco-powered solu
Slide 28: Unified Collaboration as a Service | Digital Enablement
UNIFIED COLLABORATION AS A SERVICE | DIGITAL ENABLEMENT Enterprise Challenges: Multi-vendor management, multi-region, mobile-first, launch agility, interoperability, security, privacy, PROBLEMS compatibility, etc. We combine our core and platform service capabilities to drive business outcomes (not
Slide 29: Collaboration and Connected Solutions - Overview
COLLABORATION AND CONNECTED SOLUTIONS - OVERVIEW COLLABORATION & CPaaS MOVETM INDIA IoT Enterprises, Enterprise – Industry Enterprise / Utility Companies CUSTOMER Service Providers Vertical Solutions / Government Agencies Telecom Service Providers, New Age IoT Platform Players, Niche IoT players, St
Slide 30: Leading Car Manufacturer | Connected Car | Case Study
LEADING CAR MANUFACTURER | CONNECTED CAR | CASE STUDY World’s leading manufacturer of premium all-wheel- drive vehicles; With manufacturing units in UK, China, Brazil and India and network of around 275,000 retailers and suppliers spread across 160 countries CAR MANUFACTURER CHALLENGE Regulatory Com
Slide 31: End to End IoT Solution | Leading Steel Manufacturer | Case Study
END TO END IOT SOLUTION | LEADING STEEL MANUFACTURER | CASE STUDY Fully managed solution bringing sensors, communications, data aggregation and applications together EMPLOYEE MACHINE AND MATERIAL AND PROBLEMS MANAGEMENT FACILITY MONITORING EQUIPMENT • Enhance employee productivity • Digitise existin
Slide 32: Delivering Growth - Capturing the Opportunity
DELIVERING GROWTH - CAPTURING THE OPPORTUNITY CPaaS SCDx MOVETM India IoT Integrate Conversation Digital Customer End User Connected Digital Connect Platform to any Platforms Experience Platform App Platform • Cloud based platform | • Industry Vertical Use Case • Industry Vertical Solution • Use Cas
Slide 33: Cloud, Hosting, Security and SD-WAN
CLOUD, HOSTING, SECURITY AND SD-WAN SRINIVASAN CR Chief Digital Officer and Head – Cloud, Hosting, Security and SDWAN
Slide 34: Market Shifts
MARKET SHIFTS Multi Cloud Application modernisation is being More CIOs looking for Cloud (Public and Private cloud) driven by the benefits of ‘Portability, Infrastructure Professional and adoption is increasing Modularity and High-Availability’ Managed Services End point protection gaining SDWAN cus
Slide 35: Platform Overview
PLATFORM OVERVIEW Cloud and Managed Hosting Managed Security Services SDWAN • Multi-Cloud platform (private • Functional Security platform - enables • SDWAN platform transforms PLATFORM and public) to enable cloud protection, detection and response customer’s network to provide adoption. Infrastruct
Slide 36: Cloud and Hosting | Offering
CLOUD AND HOSTING | OFFERING MARKET SIZE* OUR FOCUS MARKETS THE OPPORTUNITY CLOUD AND HOSTING (INDIA) • Space is driven by public and private cloud adoption CAGR + 24% • Globally ~70% of enterprise customers choose multi- Focus market is India, goal is to become 2024 $6.8 bn a leading IaaS / PaaS pl
Slide 37: Transformation for Largest Mining Company | Case Study
TRANSFORMATION FOR LARGEST MINING COMPANY | CASE STUDY BUSINESS NEEDS SOLUTION BENEFITS Business process efficiencies Single-pane-of-glass for integrated dashboard for • Improve e-auction process coordination cloud, network, and security and shorten order to bill cycle services for unified monitorin
Slide 38: Managed Security Services | Offering
MANAGED SECURITY SERVICES | OFFERING MARKET SIZE* OUR FOCUS MARKETS THE OPPORTUNITY MSS (Focus Markets) • Driven by Enterprise risk – Solutions for India + ransomware attacks, data breaches, etc CAGR 8.1% Western EU and UK + • Security embedded in network transformation 2024 $ 15.5 bn APAC – ASEAN +
Slide 39: Leading Manufacturer cum Retailer | Case Study
LEADING MANUFACTURER CUM RETAILER | CASE STUDY Partnering over 5 years to create a robust security posture for the enterprise BUSINESS NEEDS SOLUTION BENEFITS Engagement with customer Integrated view on Security threats Ongoing transformation - as per • Milestone led security roadmap via • Solution
Slide 40: SDWAN | Offering
SDWAN | OFFERING MARKET SIZE* OUR FOCUS MARKETS THE OPPORTUNITY SD WAN Globally ~60% of customers choose a CAGR 64% GLOBAL OFFERING Managed Services Provider for their 2024 $ 8 bn SDWAN requirements, where we have developed strong capabilities 2020 $1 bn Cloud-based deployment OFFERINGS App-oriented
Slide 41: Leading Baking Products Company | Case Study
LEADING BAKING PRODUCTS COMPANY | CASE STUDY Managed SDWAN provides a scalable network fabric that would enable seamless future growth and real agility CHALLENGE SOLUTION RESULTS • Rigid and complex network with multiple • Our managed SDWAN has created an access- • Increased cloud application perfor
Slide 42: Delivering Growth - Capturing the Opportunity
DELIVERING GROWTH - CAPTURING THE OPPORTUNITY Cloud and Managed Hosting Managed Security SDWAN Partnering with enterprise for Integrated offerings (cloud + ‘secure by design’ solutions across Integrated offerings (SDWAN + security + network) | multi-cloud network, cloud and collaboration security) |
Slide 43: Sales and Marketing
SALES AND MARKETING Sumeet Walia Chief Sales and Marketing Officer
Slide 44: Buying Behaviour Shifts
BUYING BEHAVIOUR SHIFTS INDIA MARKETS INTERNATIONAL MARKETS Shift towards everything on the cloud, Vendor consolidation opportunities multi cloud and hybrid cloud Increased spend on overall digital Tailored professional services security infrastructure with large enterprises Automotive Opportunities
Slide 45: Global Sales Organisation
GLOBAL SALES ORGANISATION GLOBAL ENTERPRISE SEGMENT SEGMENTS INDIA INTERNATIONAL ENTERPRISE AMERICAS | MECAA | UK and IRELAND INDIA PRIME (New) DIRECT | CONTINENTAL EUROPE | APAC SERVICE OTTs SELL TO PROVIDERS INDUSTRY / TECH VERTICALS Media & MOVETM – GLOBAL CLOUD MOVETM - AUTO Entertainment CONNEC
Slide 46: Accelerating Growth at Tata Communications
ACCELERATING GROWTH AT TATA COMMUNICATIONS Mastering ‘Deeper with Fewer’, Scale, Customers’ acquisition, Sales execution DEEPLY SEGMENTED EARLY STAGE HORIZONTAL MARKET APPROACH EXECUTION RIGOUR Top 300 program, Next 700 Large deals war room, executive program sponsorship, proactive proposals based o
Slide 47: Customer Success Outcome – NPS
CUSTOMER SUCCESS OUTCOME – NPS® TRACKING VOICE OF CUSTOMER: Voice of Customer dashboard, structured and unstructured input 80 CUSTOMER FOCUSED CULTURE: 70 New engagement model with CST and CSM 55 CUSTOMER EXPERIENCE INITIATIVES: 44 Filling product gaps, network roll-out, automation / digitisation FY
Slide 48: Broadening Our India Market Reach
BROADENING OUR INDIA MARKET REACH 01 02 03 04 05 Customer Physical + Low-touch, fast Branding and Automation focus Digital model moving products marketing Focused effort to Dual focus on new Light touch, single Designed for fully Driving awareness target ~5000 mid- customer addition and SKU of produ
Slide 49: Leadership with Trust
LEADERSHIP WITH TRUST tatacommunications.com www.tatacommunications.com @tata_comm http://tatacommunications-newworld.com www.youtube.com/tatacomms ©2021 Tata Communications. All rights reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Private Limited.