Tata Tata

indicomindicom

Analyst MeetAnalyst Meet

2

Telecom Operator’s Business LifecycleTelecom Operator’s Business Lifecycle

Phase 1Setup

Phase 2Growth mode

Phase 3Maturity

Falling

Tariffs

Highly

Regulated

Industry

Infrastructure intensive industry

leading to longer gestation period

Rapid Technological changes

making certain assets obsolete

TTML is in the 4th

year of wireless operations

Once we get into matured mode, the business starts yielding recurring revenue which impacts positively on the financials of the company

Once we get into matured mode, the business starts yielding recurring revenue which impacts positively on the financials of the company

3

Highlights FY07Highlights FY07

EBITDA

First time positive EBITDA 6 quarters in a row

First time EBITDA crossed Rs.100 Cr. in H1

H1 EBITDA is 99% of entire FY 06 EBITDA

First time Loss under Rs.100 Cr. (post CDMA launch)

Company continues to be Cash Positive.

Subscriber Base grows 72% over H1 FY 06

4

% Ach.

Q2 FY 07 vs Q2 FY 06Q2 FY 07 vs Q2 FY 06

Total Revenue (Rs.Crs.)Total Revenue (Rs.Crs.)

EBITDA (Rs.Crs.)EBITDA (Rs.Crs.)

EBITDA Margin % EBITDA Margin %

PAT (Rs.Crs.)PAT (Rs.Crs.)

259259

2626

10%10%

(133)(133)

131%131%

246%246%

190%190%

143%143%

340340

6464

19%19%

(93)(93)

EOP Sub Base (‘000)EOP Sub Base (‘000) 13641364 172%172%23502350

Operational Cost Per SubOperational Cost Per Sub 610610 148%148%413413

Q2 FY 06 Q2 FY 07

Consistent growth in Positive EBITDA over last 6 QuartersConsistent growth in Positive EBITDA over last 6 Quarters

Productivity (subs/employee)Productivity (subs/employee) 14021402 154%154%21642164

5

Total Revenue (Rs.Crs.)Total Revenue (Rs.Crs.)

H1 FY 06 %growth

EBITDA (Rs.Crs.)EBITDA (Rs.Crs.)

EBITDA Margin % EBITDA Margin %

PAT (Rs.Crs.)PAT (Rs.Crs.)

499499

3636

7%7%

(260)(260)

133%133%

342%342%

271%271%

126%126%

664664

123123

19%19%

(206)(206)

H1 FY 07

H1 FY 07 vs H1 FY 06H1 FY 07 vs H1 FY 06

EOP Sub Base (‘000)EOP Sub Base (‘000) 13641364 172%172%23502350

Operational Cost Per SubOperational Cost Per Sub 651651 151%151%431431

H1 FY 07 EBITDA is 99% of Full Year EBITDA of FY 06 H1 FY 07 EBITDA is 99% of Full Year EBITDA of FY 06

Productivity (subs/employee)Productivity (subs/employee) 14021402 154%154%21642164

6

EOP Subscriber Base (`000)

1,006

1,184

1,364

1,6771,840

2,350

2,104

816

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600Q

3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

TTML Quarterly parameters (Q3 FY 05 TTML Quarterly parameters (Q3 FY 05 –– Q2 FY 07)Q2 FY 07)

Crossed 2mn sub base

Operational Cost per Sub (Rs.pm)

885

700

610562

479413

1,047

449

150

250

350

450

550

650

750

850

950

1,050

1,150

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

Productivity (Subs per Employee)

960

1,167

1,402

1,6991,844

2,1642,043

785

150

650

1,150

1,650

2,150

2,650

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

Wireless EOP Market Share (%)

7.9%

8.7%

9.5%

11.4%

10.5%10.8%

11.2%

6.5%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

7

Revenue (Rs.Cr.)

216

240

259

289

307

340324

191

150

170

190

210

230

250

270

290

310

330

350

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

EBITDA (Rs.Cr.)

10

26

55

64

34

(25)

(51)

58

(60)

(40)

(20)

-

20

40

60

80

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

PAT(Rs.Cr.)

(178)

(128)(133)

(129)

(152)

(93)

(145)

(113)

(190)

(170)

(150)

(130)

(110)

(90)

(70)

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

TTML TTML -- Financials Financials Quarter on Quarter Growth (Q3 FY 05 Quarter on Quarter Growth (Q3 FY 05 –– Q2 FY 07)Q2 FY 07)

TTML becomes a Rs.1000 Cr. company

Loss below Rs.100 Cr. for the first timeLoss below Rs.100 Cr. for the first time

Crossed Rs.100 Cr. in H1

Consistent growth over last 6 QuartersConsistent growth over last 6 Quarters

Flood loss

8

TTML TTML -- FinancialsFinancials

Revenues (Rs.Cr.)

807

1095

664

0

400

800

1200

1600

2000

FY05 FY06 & H1FY07EBITDA (Rs.Cr.)

125

123

(91)

(150)

(100)

(50)

-

50

100

150

200

250

300

FY05 FY06 & H1FY07

9

Over All Customer Satisfaction:Mumbai

89%

91%90%

95%

87%

90%

82

84

86

88

90

92

94

96

Bharti Hutch TTML BPL MTNL Reliance

Customer Care SurveyCustomer Care Survey

TTML: No 1amongst all

Benchmark > 95%

Source: Survey conducted by TUV

South Asia, an independent agency

deputed by TRAI

Source: Survey conducted by TUV

South Asia, an independent agency

deputed by TRAI

Network Performance (Reliability & Availability)

92%

84%

92%

96%

90%

93%

75

80

85

90

95

100

Bharti Hutch TTML BPL MTNL Reliance

TTML, the only Service Provider

above benchmarkThe customer perception of the

parameter Network

Performance: Reliability &

Availability

Only 2 out of 105 licensees

surveyed meet the benchmark

10

Customer Care Survey Customer Care Survey -- AwardsAwards

Source: Survey conducted by TUV South Asia, an independent agency deputed by TRAISource: Survey conducted by TUV South Asia, an independent agency deputed by TRAI

11

Customer Care Survey Customer Care Survey -- AwardsAwards

No1 in Customer Service - Mumbai

No1 in Customer Service - RoM

No1 in Network Performance - Mumbai

No1 in Billing Performance

Sam Pitroda TN Srinivasan Sam Pitroda H D Khosla

NS Ramchandran Madhavan P Mukund Rajan N Chandra

Source: Survey conducted by TUV South Asia, an independent agency deputed by TRAI

12

IndicomIndicom Enterprise CustomersEnterprise Customers

13

IndicomIndicom Enterprise CustomersEnterprise Customers

14

TTML Enterprise EcoTTML Enterprise Eco--PartnersPartners

Key InitiativesKey Initiatives

16

Service on WheelsService on Wheels

Urban Reach Strategy

Branded Van

Exploring non TVS locations

Sales (All Products)

Customer Service including SR, complaint mgmt & duplicate bills & collection.

Rural Reach Strategy

Branded Van

Bullock Cart

Exploring villages where we have bleak presence

Covering Sales of Mobile, FWPsand RCVs only

17

Rural StrategyRural Strategy

Government Rural Tender (USO)

5 Districts

43 SDCAs (Thesils)

Reach Strategy – Mobile E2ESell mobile & RCVs

Handle customer complaints

Raise Service Requests

Billing Services

18

PCO initiativesPCO initiatives

PCO in BEST BusPCO in BEST Bus PCO in Police PCO in Police ChowkiChowki

PCOs Installed at

BEST Buses

Police Chowkies

Airports

Railway Stations

PCOs Installed at

BEST Buses

Police Chowkies

Airports

Railway Stations

19

Operational Turnaround HighlightsOperational Turnaround HighlightsMarket Share6th PositionMarket Share6th Position

EBITDA(Negative)

EBITDA(Negative)

Low in Customer Care & Network

Performance

Low in Customer Care & Network

Performance

Cost Per Sub1047

Cost Per Sub1047

AccumulatedLosses

AccumulatedLosses

Cash Profit(Negative)Cash Profit(Negative)

Revenue807CrRevenue

807Cr

PAT(Negative)

PAT(Negative)

Market Share3rd PositionMarket Share3rd Position

EBITDAPositive 6 Seq. quarters

EBITDAPositive 6 Seq. quarters

# 1 in Customer Care & Network

Performance

# 1 in Customer Care & Network

Performance

Cost Per Sub413

Cost Per Sub413

Cash ProfitPositive 3 Seq. quarters

Cash ProfitPositive 3 Seq. quarters

RevenueOver 1000Cr

RevenueOver 1000Cr

Last Entrant into

crowded market

PAT(Negative)

Improved 6%

PAT(Negative)

Improved 6%

20

…in Summary…in Summary

Increasing Customer

Delight

Increasing Customer

Delight

Increasing Market ShareIncreasing Market Share

Increasing Operating

Profits (EBITDA)

Increasing Operating

Profits (EBITDA)

Driving Operational

Efficiency

Driving Operational

Efficiency

Adding Value

to Shareholders

Adding Value

to Shareholders

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172% 133% 342% 143% 148% 154%

21

Connecting Millions across the world

TataTata

indicomindicom

22

Thank You