Investor Presentation

September 2020 Index

Business overview 3

Strategic overview 15

Our key stakeholders 21

Performance highlights 24 Business overview 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 200+ ~7,000+ – unlocking opportunities for businesses by enabling borderless growth, boosting product innovation and customer countries customers (including experience, improving productivity and efficiency, embedding of operation 300 of the Fortune 500) agility and managing risk. Both today and in the future. With a customer solutions orientated approach, proven 50+ Top managed service capabilities and cutting edge infrastructure, entities across percentile we drive the next level of intelligence powered by cloud, the globe of NPS® mobility, IoT, collaboration, security and network services. 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 connected through our for Network Services (Global) submarine cable owner on-net network 2020 – 7 years in a row mobile signaling (globally) 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 crore) Rs. 258 crore PAT 799 67 Rs. 372 crore 4,403 1,042 CAPEX

3,604 975 2.6 times Net debt/EBITDA

Data Voice

TCL Consolidated figures for Q1’ FY 21 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 (TM) • Acquired Tyco • Established as Launched managed platform, IZO SaaS start-up ecosystem enabler and Teleglobe, Tata services portfolio platform and (TM) establishing a global Communications for enterprises MOVE , a mobility and presence • Diversified into IOT platform 2002 • Launched next- enterprise generation dedicated segment Tata group global Ethernet service acquires 25% stake connecting North in VSNL (India) America, Europe and Asia Innovation

Diversification

Inception What, why and how Tata Communications at a glance

Why we exist Deliver a new world of communications to the industry and our customers

CUSTOMER DRIVERS Enabling borderless Boosting product innovation Enhancing productivity Building agility Managing risk

growth and customer experience and efficiency Services Wrap Services Mobility and IOT Collaboration NetFoundry

PLATFORMS AND EXPERIENCE Next generation Cloud, edge Voice

connectivity and security Customerintimacy

COMMITMENTS Sustainability Innovation Artificial Intelligence

How we do it Our DRIVE culture Daring | Responsive | Inclusivity | Venturing | Ethical 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.

CONTEXTUAL

DIGITAL Highly customer-centric; real-time trading; AI/ML, Big Data and advanced OMNI-CHANNEL Collaboration between physical and digital; analytics, etc. cloud infrastructure ONLINE Mobile apps, social media, online trading portals, client portals, tablet app PHYSICAL Internet trading through websites and mobile apps Primarily out of a trading office 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 Our customers Representing some of the biggest brands 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 backbone and a Tier-1 IP network. 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. 1,64,000 Our greatest asset? Our people. Lives impacted by our employees, through 59,184 volunteering hours as part of our CSR initiatives

Can-do Collaboration Continuous Innovation attitude learning Certified as a Great Place to Work by Great Place to Work Institute Mindset for growth Ownership and Problem Skills (India, Hong Kong, Canada and USA) and agility accountability solving transformation • ‘Best Workplaces in Asia’ for the year 2019 (Hong Kong) • 2019 Best Employer in India by Aon 90% 5,300+ • Best Companies for Women in India – Working Mother and Avtar Learning via digital mode in Tata Certifications completed by employees • Best Workplaces for Women by Great Place to Work Institute Communications Learning Academy with minimum 16 hours of effort (India and Canada) 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 through our long-term partner in their digital technologies and embedding a actions, and through our products transformation journeys. framework to make AI an integral & services for our customers. part of our capability and offerings. Strategic overview 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 11.5% 6 billion 79.4 ZB Most valuable companies based Growth of global managed Mobile subscriptions Data will be generated globally, on platforms services between 2018 and 2023 by 2025 by 41.6 billion IoT devices by 2025

(Source: Bloomberg and Google) (Source: Mordor Intelligence) (Source: GSMA Intelligence) (Source: IDC)

Cloud computing Hybrid SDN Cybersecurity awareness Artificial Intelligence (AI) 28% 60% 41.2% 37% Of the IT spending will shift to the Of enterprises will have Growth in spending on cloud of organizations adopted AI in some cloud by 2022, affecting US$1.3 trillion implemented SD-WAN by 2023 security over the next 5 years form in 2019

(Source: Gartner) (Source: Gartner) (Source: Gartner) (Source: Gartner) 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 COLLABORATION 2019 $217Bn 2019 $25Bn

Voice NetFoundry CAGR (6.6)% CAGR +25.5% NEXT GENERATION CLOUD, EDGE & 2022 $8Bn 2022 $109Bn CONNECTIVITY SECURITY 2019 $7Bn 2019 $55Bn

Next Generation Connectivity Cloud, Edge & Security CAGR +0.2% CAGR +12.0% VOICE NETFOUNDRY 2022 $145Bn 2022 $224Bn 2019 $145Bn 2019 $159Bn 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 business and the and be agile, flexible and digitally transformative industry has paved the way for responsive. sustained growth. technologies in order to provide the same to our customers is the key to our Skilled, Continuous consistent business growth. engaged teams innovation We believe it is critical for Technology is constantly evolving; employees to continuously learn and thus, we need to constantly re-educate themselves; and we challenge ourselves and innovate to provide the right platforms for invest in our future. employees to be able to do so. 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 is on a vendor’s Visionary providers should have a 2. NTT Services service quality, pricing and clearly articulated strategy in 3. AT&T 13. GTT track record. evolving areas of enterprise 1 networking, including 3 2 4 4. Verizon 14. Telia These elements are particularly networking for cloud services, 5 6 7 5. BT 15. Telstra important for global networks SD-WAN, SDN, NFV and vCPE. 8 9 10 because the issues of 6. Vodafone 16. Global Cloud 12 11 infrastructure, language and 13 Xchange The portfolio should be broad 14 7. Tata culture are more challenging 15 enough to satisfy the evolving

16 Communications 17. Singtel than if applicable to only one ABILITY TO EXECUTE 17 requirements of most 18 country. 19 8. T-Systems 18. Sprint enterprises, and not just a 20 9. Telefonica 19. PCCW Global specific vertical, industry or customer size. 10.CenturyLink 20. China Telecom NICHE PLAYERS VISIONARIES Global

COMPLETENESS OF VISION As of January 2020

Source: Gartner (February 2020) 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 Service Provider Company of Company of the Year – Large Company of the Year Provider Company of the Year the Year Enterprise Segment

Unified Communications Service Managed Security Service Provider Cloud Interconnect Service Video Managed Service Provider Provider Company of the Year Telecom Company of the Year Provider Company of the Year Company of the Year Our key stakeholders 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

• Recalibrate investments • Improve operating efficiency and drive 1.4% • Co-create with partners operating leverage 6.0% • Inculcate strong discipline and governance • Accelerate growth in high margin data segment around capital allocation and expenditure and new services 17.5%

48.9% Invest for long-term growth Create strategic flexibility 26.1% • Reshape portfolio • Generate free cash flow and deleverage balance sheet • Invest in new services/ innovation to • Pursue opportunities to unlock intrinsic value differentiate and accelerate growth • Rationalise businesses with sub-par return TATA Sons GOI Foreign Institutions profiles Domestic Institutions Non-institutional 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 society through our actions and through our products and services for our customers

Focused solutions (IoT, Mobility, 62% women and girls Since last 3 years Zero 9 lakh MOVE, Cloud and UCC) for 62% - affirmative action FATAL/MAJOR INCIDENTS UNITS OF ENERGY customers leading to cost saving, 2,19,166 communities CONSERVATION GLOBALLY business optimisation, avoidance LIVES IMPACTED MULTIPLE BEST EMPLOYER RECOGNITIONS of travel, automation etc. Presence across 9 states in India 16 International presence - 32.7% mix for new hires LONG-TERM Singapore UNITS' Renewable energy sourced DIVERSITY increased from 19% (FY14) ~15 Million PROJECTS

5,300+ CERTIFICATIONS Contributed by 11,030 with minimum 16 hours In water recycling as compared to 59,194 COMPLETED BY EMPLOYEES 49% increase volunteers to reach 50,000 lives of effort FY20 VOLUNTEERING HOURS Performance overview 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 3,278 890 4,169 margin of 23.7% which expanded by 390BPs Consol  0.1%  5.6% sequentially on the back of strong profitable growth EBITDA* in data business and focus on cost efficiencies. We received one-off cost benefits this quarter on Q1 FY 21 975 67 1,042 EBITDA Growth % QoQ YoY operating costs like travel and office related, due to Q4 FY 20 823 46 869 Data  18.4%  32.4% lockdown. Q1 FY 20 736 89 826 Voice  46.7%  (24.8%) • •Profit for the quarter was INR 258 crore as compared to a loss of INR 275 crore in the previous Consol  19.9%  26.2% FCF* quarter, this profit is on the back of strong revenue and EBITDA performance. FCF Growth % QoQ YoY Q1 FY 21 664 54 670 Q4 FY 20 579 45 526 Data  14.8%  37.0% Q1 FY 20 485 89 516 Voice  21.2%  (39.0%) Consol  27.3%  30.0% *All figures in Rs. crore Data Voice Consol 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%)  (27.1%)  (12.8%) FY 18 11,460 5,311 16,772 the decline in Voice business Consol  (4.8%)  (1.5%)  3.3%

EBITDA* • Voice business is declining in-line with industry and technology trends EBITDA Growth % FY 18 FY 19 FY 20 FY 20 3,026 263 3,289 • Shift towards more profitable data business Data  6.2%  16.6%  25.6% FY 19 2,409 336 2,745 leading to EBITDA growth and margin FY 18 2,066 347 2,412 expansion Voice  (16.3%)  (3.1%)  (21.6%) • Voice business continues to generate Consol  2.2%  13.8%  19.8% FCF* healthy cash flow despite decline in revenue

FY 20 1,742 252 1,693 FCF Growth % FY 18 FY 19 FY 20 FY 19 820 331 881 Data  42.2%  (7%)  112.4% FY 18 882 338 898 Voice  (14.9%)  (2.1%)  (23.8%)

Consol  16.2%  (1.9%)  92.3% *All figures in Rs. crore Data Voice Consol 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 3.3 3.4 3.2 3.2 3.1 1,232 1,248 1,262 1,257 1,216 4 2.9 2.8 2.9 2.8 2.6 1,150 1,151 1,193 1,200 2

800 0 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

400 Cost of Debt %

0 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 6.00% 3.80% 3.87% 3.86% 3.93% 3.77% 3.55% 3.73% 4.50% 3.41% 3.12% 3.03% • Net debt was at USD 1,193 Mn, a decrease of USD 23 Mn over last quarter, aided by 3.00% improved collections and lower Capex. 1.50% • Average cost of borrowing for Q4 was 3.03%, a decrease by 70 BPS over Q4 FY20 primarily due to decline in Average LIBOR from 1.18% in Q4 to 0.36% in Q1 FY21. 0.00% Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

Note: USD-Rs.: FY15 – 61.13; FY16 – 65.44; FY17 – 67.07; FY18 – 64.47, FY19 – 69.9; Q1FY18 – 64.48; Q2FY18 – 64.30; Q3FY18 – 64.77; Q4FY18 – 64.35; Q1FY19 – 66.94; Q2 FY19 – 70.10; Q3 FY19 – 72.13, Q4 FY19 – 70.47; Q1 FY20 – 69.6; Q2 FY20 – 70.4; Q3 FY20- 71.24; Q4 FY20- 72.32; Q1 FY21- 72.32; FY15, FY16 are reported numbers, and include Data centre business 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% 20.0% 30.6% 9.0% 8.7% 30.0% 15.0% 13.1% APAC 6.0% Europe India 20.0% 10.0%

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% 8.6% 5.0% 25.0% 22.5% 8.0% 6.6% 20.0% 4.0% 6.0% 15.0% 2.6% America MENA 4.0% Global 10.0% 2.0%

5.0% 2.0%

0.0% 0.0% 0.0% FY 15 FY 20 FY 15 FY 20 FY 15 FY 20 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 virtualisation services network services, global for Cisco, Amazon 7th consecutive year

The revamped GTM strategy FY20 Dividend of Rs. 4/- Significant land bank with The Scheme for Demerger of Surplus Land has been approved has started to show positive share which is 40% of face the company (~740 acres) by the NCLT, Mumbai on July 12, 2018. The Scheme filed by results with an improvement value of each share post transfer of surplus land HPIL, has been approved by the Ministry of Corporate Affairs, both in funnel adds as well as to HPIL New Delhi on 5 August 2019. The Record Date for the Scheme in closed sales. was September 18, 2019. HPIL has allocated the shares to all Product penetration ratio * its eligible shareholders and they are in process of listing the (which is the number of company, this process has been delayed due to COVID-19 products sold to each lockdown customer) of Top 300 customer has improved from 5.51 in Q1 FY20 to 5.62 in Q1 FY21 Thank you www.tatacommunications.com

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