Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Day (June 2023)
62 slides from Tata Communications's investor day presentation, Jun 7, 2023
Slide 1: Empowering Tomorrow - Investor Meet 2023
EMPOWERING TOMORROW INVESTOR MEET 2023 7TH June 2023
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: Empowering Tomorrow - Investor Meet 2023
EMPOWERING TOMORROW INVESTOR MEET 2023 7TH June 2023
Slide 4: We are delivering on our Reimagine strategy
TATA a WE ARE DELIVERING ON OUR “REIMAGINE’ STRATEGY Bir ° peo
Slide 5: Our 'Reimagine' Strategy
OUR ‘REIMAGINE’ STRATEGY Financial Truly Compliant Fit to Compete Fit to Grow Fitness Click to edit Master title style • Who Customer Shift Key segments focus • What Product to Platform Shift Scalable and differentiated • • How Business Model Shift Right operating model Delivering and monetizing sup
Slide 6: Customer shifts: going deeper with fewer
CUSTOMER SHIFTS HELPING GOING DEEPER WITH FEWER +33 +10 Click to edit Master title style FY20-FY23 FY20-FY23 New Customers Added New Customers Added Million Dollar Club Click to edit Master subtitle style 17 240 18 12 10 6 210 NPS 6 remains in 200 206 216 233 Top 0 180 FY20 FY21 FY22 FY23 Quartile >
Slide 7: Product to platform shift is accelerating data revenue growth
PRODUCT TO PLATFORM SHIFT IS ACCELERATING DATA REVENUE GROWTH Incremental Data Revenue (in ₹ Cr) Click to edit Master FY22 180 titleFY23 10.3% style 1,317 FY23Master subtitle style Click to edit Data Revenue FY21 723 Growth YoY 7
Slide 8: ESG Commitments
ESG COMMITMENTS Click to edit Master title style People Planet Community Fostering the Right Wining Mix Click to Our edit Master Long-term subtitle Sustainability Goals style Multiple Great Place to work recognitions Carbon Neutral by FY30 | Net Zero by FY35 Project School of Hope & Empowerment (S.H
Slide 9: Financial turnaround - the Reimagine strategy is delivering
FINANCIAL TURNAROUND – THE REIMAGINE STRATEGY IS DELIVERING CAGR 5.9% CAGR 9.5% 14,096 4,318 24.2% 1,796 28.3% Click to edit Master title style 3,289 19.3% 11,876 11.1% Click to edit Master subtitle style -86 FY20 FY23 FY20 FY23 FY20 FY23 FY20 FY23 FY20 FY23 Data Revenue (₹ Cr) EBITDA (₹ Cr) EBITDA
Slide 10: Transformation
ORMATION =< ee
Slide 11: Stitching right capabilities for accelerated growth
STITCHING RIGHT CAPABILITIES FOR ACCELERATED GROWTH Product to Click to edit Master title style Platform Shift Evolution from aClick to edit Master subtitle style Platform to a Digital Fabric Accelerated Growth Increasing Customer Relevance Quotient 11
Slide 12: The future is hyperconnected ecosystems
THE FUTURE IS HYPERCONNECTED ECOSYSTEMS Click to edit Master title style Click to edit Master subtitle style Real Always ON – Seamlessly Intelligent & Time Anywhere ON Collaborative Always Learning 12
Slide 13: Increasing relevance in the era of hyperconnected ecosystems
INCREASING RELEVANCE IN THE ERA OF HYPERCONNECTED ECOSYSTEMS Hyperconnected ecosystems enable customers’ needs of Click to edit Master title style Click to edit Master subtitle style Borderless Superior Experiences Productivity and Business Managing Growth and Innovation Efficiency Agility Risks 13
Slide 14: Hyperconnected ecosystems: changing auto business models
HYPERCONNECTED ECOSYSTEMS: CHANGING AUTO BUSINESS MODELS (OEMS TO MOBILITY SERVICES) CASA CASA trend necessitating “hyperconnected-ness” for enabling a V2X Ecosystem Click to edit Master title style Alternate Connectivity Click to edit Master subtitle style Drive Trains Shared Mobility Advanced Driv
Slide 15: Our digital fabric helps customers succeed
OUR DIGITAL FABRIC HELPS CUSTOMERS SUCCEED IN THEIR HYPERCONNECTED ECOSYSTEMS Customer’s own suite of applications Click to edit Master title style DILISA* enabled Analytics & Reporting Zero trust security across the Digital Fabric Click to edit Master subtitle style Platforms & Solutions End-To End
Slide 16: Our Key Strengths
TATA COMMUNICATIONS A OUR KEY STRENGTHS
Slide 17: We continue to invest in our digital portfolio
WE CONTINUE TO INVEST IN OUR DIGITAL PORTFOLIO Digital Platforms & Solutions Connected & Intelligent Infrastructure Connected Solutions Connected Experiences Click to edit Master title style IZOTM Multi Cloud Connect IZOTM Internet WAN Customer Interaction Platform Click to edit Master subtitle styl
Slide 18: Our Moats
OUR MOATS Click to edit Master title style Owned Global B2B Specialist A CommTech Organization SubSea network underpinning Connectivity driving digital transformation Solutions with an Industry leading NPS 1/3rd of Internet Unparalleled breadth and Healthy Financial KPIs routes Clickrichness to edit
Slide 19: Well positioned as the Comm Tech player
WELL POSITIONED AS THE COMM TECH PLAYER Click to edit Master title style Traditional TELCOS COMM TECH System INTEGRATORS Larger focus on wireless services Click to editEnterprise Master subtitle style focused Enterprise focused Software based solution stack, manages Commoditized services Customer ce
Slide 20: The three pillars are driving us towards ambitious growth
THE THREE PILLARS ARE DRIVING US TOWARDS AMBITIOUS GROWTH Click to edit Master title style Click to edit Master subtitle style Digital Fabric Our Moats Comm Tech Play Capability 20
Slide 21: What will all this translate to
TATA A) WHAT WILL ALL THIS TRANSLATE TO
Slide 22: Next phase of transformation
NEXT PHASE OF TRANSFORMATION 28,000 Cr. FY27 We will become Click to edit Master title style The Digital Fabric enabling enterprises to succeed in their Click to edit Master 14,096subtitle Cr. style FY23 Hyperconnected Ecosystems. Ambition to Double our Data Revenues by FY27 22
Slide 23: Delivering accelerated growth
EMPOWERING TOMORROW Click to edit Master title style DELIVERING Click to edit Master subtitle style ACCELERATED GROWTH 7TH June 2023 23
Slide 24: The CEO priorities are witnessing a shift
THE CEO PRIORITIES ARE WITNESSING A SHIFT CEO Strategic Business Priorities for 2023 and 2024 - Top 10 Change from 2022 Click to edit Master title style Cost Management 69% Efficiency & Productivity 46% o Cost Management Environmental Sustainability 25% o Efficiency and Productivity Corporate Action
Slide 25: Our portfolio makes us relevant to these key themes
OUR PORTFOLIO AND EXPERIENCE MAKES US EXTREMELY RELEVANT TO THESE KEY THEMES Click to edit Master title style o Internet-first, cloud-first network transformation o Customer interaction platform o Remote work / production o Cloud based managed o Cloud strategy optimization ClickotoConnected edit Mas
Slide 26: Our addressable universe is expanding
OUR ADDRESSABLE UNIVERSE IS EXPANDING Click to edit Master title style Click to edit Master subtitle style 26
Slide 27: Our GTM strategy is built to accelerate growth
OUR GTM STRATEGY IS BUILT TO ACCELERATE OUR GROWTH ACROSS MARKETS & SEGMENTS Wallet Share Top Accounts International Wider Acquisition Propositions Growth through Click to edit Master title style Markets Growth Enhanced Focus Relevance Growth Accounts Alliances Click to edit Master subtitle style St
Slide 28: Success markers indicate momentum in growth
SUCCESS MARKERS INDICATE MOMENTUM IN GROWTH FOR THE YEAR AND BEYOND Large Deal Count up Wallet Share 50% Growth in New Logo by 84% International In 2 Years Click to edit Master title style Growth through Markets Growth Enhanced Focus Relevance PPR up by 10% 50% Growth in DP&S Funnel in 2 years Click
Slide 29: We continue to deepen our customer engagement
WE CONTINUE TO DEEPEN OUR CUSTOMER ENGAGEMENT Customer Success Team Click to edit Master title style Customer Connect Client Partner Enterprise Architect Competency Build Discovery Workshops Click to edit Master subtitle style Industry COEs Exec Connects Technology COEs Customer Program Success Mana
Slide 30: Case study - delivering customer value across all areas
CASE STUDY – DELIVERING CUSTOMER VALUE ACROSS ALL AREAS • Always On, Always Connected Enabling the best in class connected Solution Click to edit Master title style car experience • Intelligence platform to drive next gen digital services for car users Delivering 'modern luxury' experience • Custome
Slide 31: Our brand reputation and credibility continues to grow
OUR BRAND REPUTATION & CREDIBILITY CONTINUES TO GROW…. Click to edit Master title style Leadership position across 28 flagship analyst reports across the portfolio Turnaround Enterprise of the Year • • • CEO of the year Cloud Technology Enterprise Network Transformation Provider Click to edit Master
Slide 32: And strengthening our market position
AND STRENGTHENING OUR MARKET POSITION Click to edit Master title style Customer Experience Centre Click to edit MasterLabs Innovation subtitle style Operation Centers 250+ 500+ 3000+ Senior customer Customers visited our Organisations engaged executive engagements experience centre, labs and through
Slide 33: What will the color of our success look like in FY27
WHAT WILL COLOR OF OUR SUCCESS LOOK LIKE IN FY ‘27 28,000 Cr. FY27 Lead India #1 Continue #1 Click to edit Master title style Market International Peripheral Strong Markets Click to editChallenger Master subtitle style 14,096 Cr. FY23 Revenue from Million Dollar 35% Over 50% Accounts Digital 32% Ove
Slide 34: Key tenets of our finance strategy
TATA ‘a KEY TENETS OF OUR FINANCE STRATEGY
Slide 35: Finance Strategy
FINANCE STRATEGY Key Pillars Click to edit Master title style Click to edit Master subtitle style 35
Slide 36: We are delivering on our finance strategy
WE ARE DELIVERING ON OUR FINANCE STRATEGY 24.2% 28.3% 10.1% 3x 63 2,539 Click to edit Master title style 17,838 17,068 19.3% 1.3x 11.1% Click to edit Master subtitle style 530 (5)% -3 FY20 FY23 FY20 FY23 FY20 FY23 FY20 FY23 FY20 FY23 FY20 FY23 FY20 FY23 Consolidated Revenue (₹ Cr.) EBITDA Margin (%)
Slide 37: Sharpening our Fit to Grow engine
SHARPENING OUR FIT TO GROW ENGINE Investment in Invest to sharpen our Infrastructure and Switch Click to edit Master title style platform capabilities Innovation Click to edit Master subtitle style Invest in adding people New Opportunities capabilities across Oasis & White Spaces markets Driving Pro
Slide 38: Sharpening our Fit to Grow engine - media business acquisition
SHARPENING OUR FIT TO GROW ENGINE USD 58.8 Mn 100% Stake Click to edit Master title style Tata Communications Media Business • • Enabling access to US Sports market Acquiring live video production capabilities Click to edit Master subtitle style Region to Region Video Transport Video Revenue: INR 57
Slide 39: Driving the right growth opportunities
DRIVING THE RIGHT GROWTH OPPORTUNITIES 28,000 Cr. FY27 Click to edit Master title style Improving Balance Sheet and Growth Momentum Improve GTM / Platform capabilities Click to edit Master subtitle style Adjacent opportunities Data and white spaces Revenue Increasing Relevance to Customers Strengthe
Slide 40: Our Ambition
OUR AMBITION EBITDA Net Debt 23-25% <2x Click to edit Master title style Margin to EBITDA Click to edit Master subtitle style Data Revenue 2x by FY27 USD Capex ~300 Mn ROCE > 25% 40
Slide 41: Connected infrastructure - significant part of our digital portfolio
CONNECTED INFRASTRUCTURE – SIGNIFICANT PART OF OUR DIGITAL PORTFOLIO Click to edit Master title style 4,539Click to edit Master subtitle style1,961 Cr. Cr. 43% Share in Digital Portfolio Total Digital Portfolio Next Gen Connectivity + Revenues FY23 Cloud, Hosting & Security 41
Slide 42: Connected infrastructure drives key business objectives
CONNECTED INFRASTRUCTURE DRIVES KEY BUSINESS OBJECTIVES THE WHY THE WHAT Click to edit Master title style Reimagined & Improved Networks Converged Security Future Ready Performant Multi-Cloud Enhanced User Click to edit Master subtitle style Programmable Secure Connectivity Experience BUSINESS OBJEC
Slide 43: Connected infrastructure - what are we solving for?
CONNECTED INFRASTRUCTURE – WHAT ARE WE SOLVING FOR? SD-WAN Multi-Cloud Click to edit Master title style Connect Customer Premise Equipment Disparate solutions, Zero Trust multitude of SD-LAN Click to edit Master subtitle style Network Access policies and Managed Wi-Fi management complexity Hybrid-WA
Slide 44: Connected infrastructure simplified
CONNECTED INFRASTRUCTURE SIMPLIFIED Internet WAN SD-WAN Click to edit Master title style Managed Secure Web Wi-Fi Gateway Full spectrum of product & services, single policy Click to edit Master SD-LAN subtitle style Multi-Cloud Connect ownership and transparency (TCX) Multi-Cloud Infrastructure Hybr
Slide 45: Connected infrastructure - our key proposition
CONNECTED INFRASTRUCTURE – OUR KEY PROPOSITION Right to Play Right to Win Click to edit Master title style o World’s most comprehensive predictable and o Single point of ownership - to deliver on enterprise dependable internet connectivity platform that is business objectives built for business o De
Slide 46: Global secure connected infrastructure for a medical technology firm
GLOBAL SECURE CONNECTED INFRASTRUCTURE FOR A MEDICAL TECHNOLOGY FIRM Globally distributed factories, offices & employees |Internet first, cloud first approach! IZO™ Hybrid WAN | Managed SD-WAN | Cloud Firewalls | Secure Web Gateway | Multi-Cloud Connect| Managed Services Click to edit Master title s
Slide 47: Enhancing customer experience across stores - integrated LAN & WAN
ENHANCING CUSTOMER EXPERIENCE ACROSS STORES – INTEGRATED LAN & WAN Multinational food chain enhancing their customer experience through high-speed internet and secured Wi-fi access in stores Managed Wi-fi & LAN | IZO™ SDWAN| Internet Access Service Click to edit Master title style Consistent & super
Slide 48: Connected infrastructure market size
CONNECTED INFRASTRUCTURE MARKET SIZE Addressable Click to edit Master title style Market CAGR* 1.4% 17% 8.3% 17% FY24 $94 Bn $2.7 Bn $11.9 Bn $9.1 Bn Click to edit Master subtitle style FY27 $98 Bn $4.3 Bn $15.1 Bn $14.7 Bn Enabling WAN network Enabling Site to Enabling new Policy driven WAN & USE C
Slide 49: Our expertise to grow in this area is well-recognized
OUR EXPERTISE TO GROW IN THIS AREA IS WELL-RECOGNIZED Click to edit Master title style Leader in Avasant SD-WAN Managed Services Radar Leader in Cyber Resiliency Services 2022 Major contender – PEAK Matrix for IT Security 2022 Click to edit Master subtitle style View 2022-2023 (Global recognition) (
Slide 50: Spend a day with me
TATA 4 SPEND A DAY WITH ME \
Slide 51: Increasing relevance in our platform solutions
INCREASING RELEVANCE IN OUR PLATFORM SOLUTIONS GLOBAL RAPIDE 1,534 Cr. 4,539 Collaboration 34% Share in Digital Portfolio Cr. 465 IOT Cr. MOVETM Total Digital Portfolio Revenues FY23 Connected Solutions 10% Share in Digital Portfolio 51
Slide 52: Understanding the opportunity landscape of our platform solutions
UNDERSTANDING THE OPPORTUNITY LANDSCAPE OF OUR PLATFORM SOLUTIONS GLOBAL RAPIDE IOT MOVETM BFSI, Healthcare, ITES, BFSI, System Metals & Mining, Automotive, Automotive, Integrator, Hi-Tech Manufacturing, Aviation, MVNO's, Logistics, Technology Manufacturing Oil & Gas, Auto, Microelectronics Pharma,
Slide 53: Opportunity landscape: GlobalRapide
UNDERSTANDING THE OPPORTUNITY LANDSCAPE OF OUR PLATFORM SOLUTIONS GLOBAL RAPIDE • Omnichannel Marketing • GlobalRapide: Platform-agnostic Campaigns service provider; Assessment, • Brand Engagements via Virtual Migration, End-to-End and Human Agent Management & Automation • Bespoke Workflows • Jamvee
Slide 54: Opportunity landscape: IoT and MOVE
UNDERSTANDING THE OPPORTUNITY LANDSCAPE OF OUR PLATFORM SOLUTIONS IOT MOVETM • Connected Operations • Connected Mobility, & Airlines • Connected Workers • Software-Over-the-Air update • Connected Utilities • Digital MVNO • Smart Cities • End-to-End IoT solution • Global QoS (Device to Analytics) • C
Slide 55: The Unboxing...!
TATA COMMUNICATIONS 4 . THE UNBOXING...!
Slide 56: DIGO and Instacc enhance customer experience for quick commerce aggregator
TATA COMMUNICATIONS DIGO AND INSTACC ENHANCES CUSTOMER EXPERIENCE FOR INDIA’S LARGEST ONLINE QUICK COMMERCE AGGREGATOR Challenges Solution A pan – Indian company with over $2 Bn in GMV Outsourced Delivery and 0.3 Mn delivery Multiple Call Personnel and SMS Centres Contact Centre Voice partners Produ
Slide 57: DIGO and Instacc: benefits achieved
TATA COMMUNICATIONS DIGO AND INSTACC ENHANCES CUSTOMER EXPERIENCE FOR INDIA’S LARGEST ONLINE QUICK COMMERCE AGGREGATOR Benefits Achieved A pan – Indian company with over $2 Bn in GMV and 0.3 Mn delivery partners 10% Reduction in 8 min reduced time to call 15% Agent Login Hour Discrepancy back Optimi
Slide 58: Automotive manufacturer embarks on connected car journey with MOVE
AUTOMOTIVE MANUFACTURER EMBARKS ON ITS CONNECTED CAR JOURNEY WITH TATA COMMUNICATIONS MOVETM Challenges Solution A global luxury auto company with over $20 Bn Tata Communications MOVE™ provided in revenues and an Unreliable High Connectivity Connectivity intelligent, context-aware connectivity emoti
Slide 59: Automotive manufacturer connected car journey: benefits achieved
AUTOMOTIVE MANUFACTURER EMBARKS ON ITS CONNECTED CAR JOURNEY WITH TATA COMMUNICATIONS MOVETM Benefits Achieved A global luxury auto company with over $20 Bn in revenues and an emotionally rich brand KYC Compliance through Improved Over-the-Air equity Single Interface (OTA) Updates Secured Telemetry
Slide 60: IoT solutions: intelligent lighting transforms Saudi Arabian streets
TATA COMMUNICATIONS IOT SOLUTIONS: INTELLIGENT LIGHTING TRANSFORMS SAUDI ARABIAN STREETS Challenges Solution One of the largest cities in Saudi Arabia with a End-to-End deployment of Smart Street High costs of population of over 1 Mn High Energy operations & Lighting solution enabling control over 8
Slide 61: Intelligent lighting: benefits achieved
TATA COMMUNICATIONS IOT SOLUTIONS: INTELLIGENT LIGHTING TRANSFORMS SAUDI ARABIAN STREETS Benefits Achieved One of the largest cities in Saudi Arabia with a population of over 1 Mn looking to improve citizen safety and energy ~20% Energy Savings ~50% Reduction in Cost of O&M efficient public infrastr
Slide 62: Thank you
TATA COMMUNICATIONS Thank you \