Tata Telecom Strategy At Work Niru Mehta May

Tata Telecom Strategy At Work Niru Mehta May 20 -21 2003 Converged Solutions CC/CRM Solutions Customer Services

What? 1. Results to Date 2. FY 03 - 05 Opportunities 3. FY 03 - 05 Goals/Outlook 4. Summary 2 Converged Solutions CC/CRM Solutions Customer Services

Key Messages… • Pleased with the overall performance • Key Strategies have delivered Results – Voice to Converged Solutions Enabled Growth – Box to Solutions Protected Margins – Customer Responsiveness Positioned for Future • Optimistic about Future – Market opportunities are encouraging – Organization is better prepared than ever before – Risks are manageable • Tata Telecom is Uniquely Positioned to Win Customers – Proven Track Record in India – Unmatched capabilities 3 Converged Solutions CC/CRM Solutions Customer Services

Results To date Converged Solutions CC/CRM Solutions Customer Services

Consistent Revenue Growth… 350 24 % 300 Revenue (Rs Cr) 250 200 Q 4 Q 3 Q 2 Q 1 31% 34% 150 100 50 0 FY 99 99 -01 FY 00 00 -01 FY 01 01 -02 FY 02 02 -03 5 Converged Solutions CC/CRM Solutions Customer Services

Improved PBT… 6 Converged Solutions CC/CRM Solutions Customer Services

Reduced Seasonality in ROS… 7 Converged Solutions CC/CRM Solutions Customer Services

Improved DSO… 8 Converged Solutions CC/CRM Solutions Customer Services

Reduced A/R > 12 Months… 18% 53% 36% 9 Converged Solutions CC/CRM Solutions Customer Services

Improved Inventory Turns… 10 Converged Solutions CC/CRM Solutions Customer Services

Improved E: R… 11 Converged Solutions CC/CRM Solutions Customer Services

Improved Productivity… 64 L 31% 49 L 35 L 21 L 40% 67% 12 Converged Solutions CC/CRM Solutions Customer Services

Improved Debt… 13 Converged Solutions CC/CRM Solutions Customer Services

Improved EVA, EBIDA, EPS… ) Cr. . (Rs A BID E EPS (Rs) E ) s. Cr. VA (R 14 Converged Solutions CC/CRM Solutions Customer Services

% of Total Revenue Transformed to Solutions Business… 15 Converged Solutions CC/CRM Solutions Customer Services

Developed Both New and Existing Customers… 16 Converged Solutions CC/CRM Solutions Customer Services

More Solutions…Less Boxes… Revenue from Top 100 Customers Converged Solutions CC/CRM Solutions 17 Customer Services

More Solutions…Less Boxes… Revenue from Orders valued Rs 1 Cr and More Converged Solutions CC/CRM Solutions 18 Customer Services

Market Share By Product Groups Converged Solutions CC/CRM Solutions Customer Services

Enterprise Voice Solutions… #1 #1 #1 20 Converged Solutions CC/CRM Solutions Customer Services

Contact Center & CRM Solutions… #1 #1 #1 21 Converged Solutions CC/CRM Solutions Customer Services

Teleconferencing… Top 5 #2 #1 22 Converged Solutions CC/CRM Solutions Customer Services

Competitive Positioning Converged Solutions CC/CRM Solutions Customer Services

Enterprise Voice Solutions… 24 Converged Solutions CC/CRM Solutions Customer Services

Contact Center & CRM Solutions… 25 Converged Solutions CC/CRM Solutions Customer Services

IP Telephony… 26 Converged Solutions CC/CRM Solutions Customer Services

Teleconferencing… 27 Converged Solutions CC/CRM Solutions Customer Services

Significant Wins Converged Solutions CC/CRM Solutions Customer Services

Voice & IP-PBX… IISc Associates Tata Memorial Delphi Auto Synopsis Skyworks Fisc India Sahara India Star India Mahanadi Coalfields SE Railways L&T Infotech IIT Guwahati Sedco Forex Nalco GE Power Mastek CCL Suzlon J P Morgan Intel Nicholas Piramal NPC Tata Infomedia Orbit Resorts Western Union ITC Hotels Network Associates Sea World NTPC ONGC Honeywell SECL Jaiprakash Industries Deutsche Bank Converged Solutions CC/CRM Solutions 29 Customer Services

Teleconferencing… CBI Mastek NIC IPCL S B Patiala Genesis IT Reliance NDDB Castrol CMC Wipro e. Serve ABN Amro Telco Geometric Software TMTC Bharti Telesonic British Gas Broadband Sun Pharma Wockhardt Tata Sons Serum Institute Gujarat Gas Cadila Healthcare 30 Converged Solutions CC/CRM Solutions Customer Services

Converged Data Networks. . BIT Mesra TCS Proton Web Daksh Tata Honeywell Kandla Port Trust Emerson Tata Teleservices IIT Mumbai HP Tata Technologies Khoday SS ITC Tisco i. Serv Inductotherm IOCL ONGC 31 Converged Solutions CC/CRM Solutions Customer Services

Contact Centers… NIIT Bharti Telenet Jayshree Infotech Spectramind Wipro Client Logic Customer Asset. com Lawkim efunds WNS IT Solutions Daksh PCS EXL Service Aysha Infotech M Source Epicenter Reliance Intelnet Global Immaculate Interactions Hughes Software GTL Total Infosystems Infotronics Transworks Netscape i. Seva Sutherland Sitel Convergys Allsec Technologies Hiranandani Tracmail Compaq Dell 32 Converged Solutions CC/CRM Solutions Customer Services

Contact Center Market 60% 33 Converged Solutions CC/CRM Solutions Customer Services

Customer and Employee Satisfaction Converged Solutions CC/CRM Solutions Customer Services

Differentiating on Customer Responsiveness… FY 01 FY 02 35 Converged Solutions CC/CRM Solutions Customer Services

Best Employer - #37 By Hewitt… Strengths: • • • Organisation Culture Work Environment Faith in Co’s products, services & technology Effective Leadership Relationship 204 Co’s Participated Areas of Improvement: • Opportunities for Development • Delivery of Job responsibility • Rewards • Balance between work & personal life 65 Co’s Shortlisted No. 37 Tata Telecom 36 Converged Solutions CC/CRM Solutions Customer Services

Readiness Video Clip Converged Solutions CC/CRM Solutions Customer Services

Management Philosophy Converged Solutions CC/CRM Solutions Customer Services

Management Philosophy Profitable Growth Employee Value Customer Value Shareholder Value 39 Converged Solutions CC/CRM Solutions Customer Services

Customer Responsiveness as the Winning Strategy… Operational Excellence “A Great Deal” “Best Price” “Trouble Free Basic Service” Superior Profitability through: 1. 2. Superiority in Customer Responsiveness Parity on the other two vectors Parity Customer Responsiveness Performance “Always at Cutting Edge” “High Price But Worth It” “Constantly Renewing and Creating” “Really Understands my Business” “Exactly What I Need” “Close Business Partner’ Success Converged Solutions CC/CRM Solutions 40 Customer Services

More Focused than Ever Before… Customer 41 Converged Solutions CC/CRM Solutions Customer Services

Enterprise Communications Opportunities Converged Solutions CC/CRM Solutions Customer Services

Enterprise Communications Solutions Opportunities… CAGR By Product Groups 23% 22% 40% 18% 30% 16% 43 Converged Solutions CC/CRM Solutions Customer Services

Focus Areas… Converged Solutions CC/CRM Solutions Customer Support 44 Converged Solutions CC/CRM Solutions Customer Services

Converged Solutions Why? How? • Installed Base • Growing Domestic Market – Bandwidth Availability – Ideal for Multi-locations or Multi-channel or Collaborative Applications – Productivity Improvements – Attractive ROI • CCs – Seamless Global Connectivity – Security • Focus • Expand Product Portfolio • Customer Education through Solutions Workshops • Focus on ROI • TTL Lab Capabilities • Professional Services • Build C level Relationships • Partnerships with SI/GSIs Risks: Must invest time to develop the market, slow take-off 45 Converged Solutions CC/CRM Solutions Customer Services

CC/CRM Solutions… Why? • Continued in-flow of outsourced CCs to India – Mc. Kinsey/Gartner reports on BPO identify huge upside potential for India • Growing domestic market – Service Providers – Financial Institutions • Strong focus on Quality – Margin retention for operators – Customers demand it How? • Focus • Continued Expansion of Portfolio • Avaya Global Connect • TTL Portal on outsourcing to India • Marketing to the US C levels • Flawless execution Risks: US Backlash, Rapid consolidation of local operators Converged Solutions CC/CRM Solutions 46 Customer Services

Customer Support… Why? How? • Mission critical applications • Customers demand investment maximization • Opportunities in multivendor environment for inter-operability, network integration etc. • Globally higher willingness to pay for Services • Focus • Improved organizational readiness – Services marketing – Competencies • Expand Services offers – Avaya Expert Systems – Avaya Services offers Risks: Must invest time to develop Services as a business, Slow take-off 47 Converged Solutions CC/CRM Solutions Customer Services

Va lue Organizational Readiness… Sh are & th row le G tab ic act Pr ofi yee ERP & CRM Systems Business Partners’ Competency Employee Profile Customer Engagement Model plo Em Cr 99 -02 eat i ng es Pr ing Applications Focus Inorganic Growth Services as Business fin 02 -03 Execution de 03 -04 Prof Services Re ho lde r 04+ Portfolio of Products & Services Supply Chain Business Structure Partners Employee Competency Leadership Focus Directors Branding Strengthening Customer Responsiveness Converged Solutions CC/CRM Solutions 48 Customer Services

FY 03 to FY 05 Goals… Overall Market Share Grow by 5 Pts Overall Revenue Growth CAGR 22 -25% Services Revenue Grow from 10% to 14% Margin 1 -2% decline E: R 1 -2% decline PBT Maintain ROS% Headcount Maintain current level 49 Converged Solutions CC/CRM Solutions Customer Services

In Summary… • Pleased with the overall performance • Key Strategies have delivered Results – Voice to Converged Solutions Enabled Growth – Box to Solutions Protected Margins – Customer Responsiveness Positioned for Future • Optimistic about Future – Market opportunities in 3 Cs are encouraging – Organization is better prepared than ever before – Risks are manageable • Tata Telecom is Uniquely Positioned to Win Customers – Proven Track Record in India – Unmatched capabilities 50 Converged Solutions CC/CRM Solutions Customer Services

51 Converged Solutions CC/CRM Solutions Customer Services