Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Presentation (September 2020)
30 slides from Tata Communications's investor presentation, September 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020
Slide 2: Index
Index Business overview 3 Strategic overview 15 Our key stakeholders 21 Performance highlights 24
Slide 3: Business overview
Business overview TATA COMMUNICATIONS
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 60% 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
Key Performance Indicators Numbers that matter Our voice business continues to be strong and our data business remains instrumental to our overall revenue. As we grow scale, we are confident of an upward momentum in our profit trajectory in the coming quarters. Revenue EBITDA (Rs. in crore) (Rs. in
Slide 7: Transformation is in our DNA
Our evolution Transformation is in our DNA 2014 2017 2018-20 Launched the most Launched Getting ready for the comprehensive NetFoundry, next wave of growth 2005-06 2008 2010 cloud enablement a revolutionary as a global digital • Acquired Tyco • Established as Launched managed platform, IZO(TM) SaaS
Slide 8: 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 9: 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 10: 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
Slide 11: Representing some of the biggest brands
Our customers Representing some of the biggest brands
Slide 12: Our globally local digital infrastructure
How we do it Our globally local digital infrastructure • Our end-to-end capabilities in servicing and delivery make us a preferred partner for businesses everywhere. • All of our products and services are underpinned by our global network, the largest world’s largest wholly-owned subsea fibre backbo
Slide 13: Our DRIVE culture
How we do it Our DRIVE culture We view our success as a result of the unstinting commitment of our Our people reflect our ethos people and their efforts. Our greatest asset? Our people. 1,64,000 Lives impacted by our employees, through 59,184 volunteering hours as part of our CSR initiatives Can-do
Slide 14: Our commitments
How we do it Our commitments Sustainability Innovation Artificial Intelligence We strive to make a positive, We continue to innovate to stay We are bringing enhanced focus on tangible impact on the environment relevant for our customers as a leveraging the power of AI and ML and wider society throug
Slide 15: Strategic overview
<p Strategic overview
Slide 16: 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 11
Slide 17: Our opportunity landscape
Market we address Our opportunity landscape While all areas of our portfolio are expected to Available Market 2023 grow, 6 key pillars have been identified to significantly contribute to our growth in revenue. Mobility & IoT Collaboration CAGR +3.9% CAGR +12.2% 2022 $243Bn 2022 $35Bn MOBILITY & IoT
Slide 18: What helps us turn opportunities into a reality
Key strategic enablers What helps us turn opportunities into a reality Prudent Customer foresight centricity Our ability to anticipate change and We help our customers make the transform to meet and exceed the most of the latest digital innovations Our own agility in adopting expectations of the bus
Slide 19: Recognised for excellence
Analyst views Recognised for excellence Tata Communications Positioned as a Leader in the 2020 Gartner Magic Quadrant for Network Services, Global - 7 years in a row CHALLENGERS LEADERS 1. Orange Business 11. Masergy Ability to Execute Completeness of Vision Services 12. Colt Technology Our emphasis
Slide 20: Recognised for excellence
Industry accolades Recognised for excellence APAC Top 10 IoT Solution • Most Innovative IoT Project Magic Quadrant for Network Services, Companies 2019 • Most Innovative Telecom Project Global Enterprise Telecom service provider Enterprise Data Service Provider Managed Multi Cloud Service SDWAN Serv
Slide 21: Our key stakeholders
Our key stakeholders
Slide 22: 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 maximising long-term returns. Shareholding pattern as of 30 June 2020 Drive capital efficiency Improve margin profile • R
Slide 23: 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 24: Performance overview
Performance overview TATA COMMUNICATIONS
Slide 25: Revenue | EBITDA | FCF (Quarterly)
Key financials (Quarterly) Revenue | EBITDA | FCF REVENUE* • Consolidated revenues were up 5.6% YoY and flat Revenue Growth % QoQ YoY Q1 FY 21 3,604 799 4,403 sequentially. Data 0.2% 9.9% Q4 FY 20 3,595 803 4,398 • •EBITDA grew by 26.2% YoY and 19.9% QoQ with a Voice (0.5%) (10.2%) Q1 FY 20
Slide 26: Revenue | EBITDA | FCF (Annual)
Key financials (Annual) Revenue | EBITDA | FCF REVENUE* • Consistent strong growth in Data Business Revenue Growth % FY 18 FY 19 FY 20 FY 20 13,692 3,376 17,068 despite industry challenges Data 5.5% 10.4% 8.2% FY 19 12,655 3,870 16,525 • Data business growth is compensating for Voice (21.4%)
Slide 27: Performance Highlights | Net Debt
Key financials (Annual) Performance Highlights | Net DEBT Net Debt to EBITDA Net Debt to EBITDA USD Mn USD Mn 6 1,600 1,438 1,327 1,262 3.3 3.4 3.2 3.2 3.1 1,232 1,248 1,257 1,216 1,193 4 2.9 2.8 2.9 2.8 2.6 1,150 1,151 1,200 2 800 0 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun
Slide 28: Geographical spread
Key financials (Annual) Geographical spread Gross Revenue Share by Geography - 15.0% 30.0% 50.0% 24.6% 41.1% 12.0% 11.2% 25.0% 40.0% 8.7% 20.0% 30.6% 9.0% 30.0% 15.0% 13.1% APAC 6.0% Europe 10.0% India 20.0% 3.0% 5.0% 10.0% 0.0% 0.0% 0.0% FY 15 FY 20 FY 15 FY 20 FY 15 FY 20 30.0% 10.0% 6.0% 25.4% 8.
Slide 29: Key reflections
Concluding remarks Key reflections Riding on global Digital Transformation and Transformation driving demand Positioned as “Leader” in Digital push through data growth Cloud adoption to drive the for hosting, SD WAN and Gartner magic quadrant for partnerships with Microsoft, business growth network
Slide 30: Thank you
Thank you www.tatacommunications.com Contact for investor queries: investor.relations@tatacommunications.com © 2020 Tata Communications. All rights reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Private Limited.
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