Tata Communications Ltd

Dear Shareholders,

In my last letter to you I shared our commitment to achieving strong and sustainable growth. It gives me immense pleasure to say that we have taken another firm step forward in that journey during FY24. This year was a landmark year for us, with our overall revenues surpassing the ^ 20,000-crore milestone and data revenues crossing ^ 17,000 crores. I see this as an outcome of a solid execution on a sound strategy. This remarkable accomplishment is a testament to our strategic focus on enhancing digital platforms and solutions, globally.

Resilient, stable and agile:

The Power of our digital fabric of solutions:

Our digital fabric of solutions is strongly resonating with customers worldwide. Each component — the network fabric, cloud fabric, customer interaction fabric, IoT fabric, and media fabric— continue to address the evolving challenges faced by enterprises. This comprehensive approach enables us to support large enterprises and extend our expertise to new clients across diverse geographies.

In today's landscape of burgeoning technologies, we don't just offer solutions — but uncomplicate the complex. We secure and streamline client ecosystems, empowering them to optimise performance, efficiency, and cost structures.

The opportunity landscape for us is growing exponentially, and the strategic investments that we have made over the years will continue to generate value for us and augment our capabilities as a leading global commtech player.

Revolutionising the Digital Landscape:

? We amplified our IZO™ Multi Cloud Connect solution with additional features to integrate multiple clouds instantly, seamlessly and with flexibility. Stitched into the digital architecture of enterprises, this will bring fast and easy cloud connectivity, improved and dependable user experience and cost optimisation for our customers globally.

? In August 2023, we launched the Tata Communications cloud-based 5G Roaming Lab, equipped with hi-tech server applications that provide highspeed and seamless 5G roaming connectivity along with network security, enabling MNOs to trial 5G standalone network use cases before introducing the service to their subscribers.

? We recently unveiled Tata

Communications CloudLyte, a fully automated edge computing platform, designed to empower future-ready enterprises to thrive in a data-driven world.

This multi-access, cloud, and infrastructure agnostic platform offers rapid deployment of applications to any edge or near-edge location withiminutes, seamlessly extending the cloud experience to edge. It is a unique 'Solution-in-a-box', encompassing infrastructure alongside platform, network, and managed services designed to address specific business needs.

Redefining our digital fabrics

At Tata Communications, we are undergoing a transformation of profound scale and scope.

Continued investments in our core network infrastructure (network fabric) have enabled us to develop multifaceted software-defined capabilities while also maintaining our position as a major global player in voice communications.

Our customer interaction fabric, focused on streamlining B2C customer interaction across all channels through our platforms is another key growth driver for us.

A strong performance in India's private cloud market, coupled with our robust security portfolio, has created a strong foundation for international expansion in Cloud Security and Edge (cloud fabric).

Our IoT fabric, a smaller portfolio currently, presents significant growth opportunities both domestically and internationally.

Each of these fabrics holds substantial 'white space' for future expansion.

Growing inorganically, leveraging potential

Several strategic decisions made during the year have shaped our growth trajectory. This fiscal, we completed the acquisition of Kaleyra. In the digital age, businesses require multi-channel customer engagement solutions built for intuitive, intelligent, anautomated interactions. Combining our customer engagement solutions with Kaleyra's stronghold in technological expertise will drive the growth of global enterprises through hyper-personalised and intelligent customer interactions.

We also completed the acquisition of The Switch Enterprises LLC ('The Switch'), which has helped us expand our reach to top tier US sporting event venues and gain a strong foothold in North America and has amplified our media and entertainment portfolio in end- to-end video production and transmission capabilities. This will revolutionise live video experiences for viewers and fans across various platforms.

Acquisition of the remaining 41.9% equity in Oasis Smart SIM Europe, to make us the sole shareholder has helped us leverage the combined power of Tata Communications MOVE™ platform and Oasis' eSIM (embedded SIM) and remote SIM provisioning capabilities to equip global enterprises with end-to-end, scalable and secure eSIM connectivity, a cornerstone for delivering intelligent and intuitive IoT applications, and stitching a digital fabric of secure, connected experiences.

Collaboration is at the heart of our success. Our partnership with Microsoft exemplifies this commitment. By leveraging our Tata Communications GlobalRapide platform and Microsoft's Operator Connect, we're enabling businesses of all sizes and locations in India to experience seamless voice calling on Teams devices. Given our extensive reach across 190+ countries and partnerships with 700+ mobile network operators, the partnership empowers Indian enterprises and multinational corporations alike to

bolster productivity, while adhering to local regulations.

Sustaining Financial Fitness

>Despite significant investments in organic and inorganic growth, we delivered a strong financial performance in FY24. Our reported EBITDA margin touched a healthy 20.2%, reflecting the positive outcome of these investments, while our Core EBITDA margin, which excludes the impact of subsidiaries and recent acquisitions, stood at 23.7%, well within our expected range of 23-25%.

As we capture synergies from our acquisitions and leverage operational efficiencies, we expect profitability to improve further. Our focus remains on creating robust financial capacity to capitalise on new opportunities in AI cloud, multi-cloud connectivity and Tata Communications CloudLyte.

Our Digital Portfolio continues to be a bright spot, boasting a 55.4% reported growth and a 14.7% underlying growth.

Over the past two years, the Digital Portfolio has achieved a remarkable CAGR of 37%.

Recognised for Excellence: A Testament to our Dedication

We are deeply honoured by the recognitions we have received in FY24. We were honoured in the Gartner Magic Quadrant for our Global WAN Services for the 11^th consecutive year, reaffirming our industry leadership. We also received multiple awards for our enterprise connectivity and communication solutions. These awards are a testament to our relentless pursuit of delivering best-in-class platforms and solutions, consistently exceeding the expectations of our customers.

Additionally, we secured a triple win at the Global InfoSec Awards 2024 from Cyber Defence Magazine and were recognized at the Future Digital Awards for Smart Cities &

IoT Innovation 2023.

Among other accolades, we continued to be recognised as a Great Place to Work ('GPTW') in India, US, Canada, Australia, Hong Kong, Singapore, Sri Lanka, UK;

Top 100 Best Workplaces to work by GPTW in Greater China & Hong Kong; 100 Best Hall of Fame - Best Companies for Women by Avtar; Best Workplaces for Women by Great Place to Work.

Our cross-functional teamwork was also recognised within the Tata Group as we received the prestigious recognition as an 'Industry Leader' in the Tata Business Excellence Model ('TBEM') Assessment for global business practices and processes with a score of 668. Your Company also underwent a group-wide assessment on data maturity (DATOM Assessment) covering the dimensions of Data, Technology, People and Process and achieved the highest percentile.

Tata Communications also bagged Top Honours at the Tata Affirmative Action Programme ('TAAP') convention, receiving TAAP Recognition for Significant Adoption for 2023 (with a triple band jump in score), reflecting our commitment to creating a positive impact in the community.

A Sustainable Future: Responsibility woven into our fabric

Sustainability remains a core of our business strategy and we are committed to be Net Zero by 2035 across our global operations.

We minimise our environmental footprint, integrate renewable energy, and empower our customers on their sustainability journeys. In line with our sustainability efforts, a key milestone this year was the adoption of a sustainability-linked loan ('SLL') framework, a first in our sector for India. This innovative financing approach ties loan margins to our carbon emission reduction targets, demonstrating our dedication to responsible business practices and long-term sustainability leadership.

By incorporating renewable energy sources in our energy consumption mix, we are reaffirming our commitment to environmental responsibility and adopting ecofriendly energy alternatives.

Furthermore, our Science Based Targets initiative ('SBTi') - approved targets mark a transformative shift, aligning technological advancement with environmental stewardship. By embracing the SBTi's target-setting criteria, we did not merely pledge allegiance to a cause; we intend to drive a global movement towards a more sustainable future.

Staying ahead of the technology curve:

Investing in the Future

With a robust capital governance framework in place, we are strategically investing in the right opportunities to help us stay ahead of an ever-disruptive technology curve. Our investments in megatrends such as the AI,

Cloud, and enhanced collaboration experiences position us to capitalise on new opportunities.

At the same time, we are conducting a meticulous review of our existing operations, optimising resources to sharpen our competitive edge. This two-pronged approach

- strategic investment and operational efficiency - is the key to driving profitability and delivering exceptional value to our shareholders and customers.

Our data growth ambitions, supported by an expanded portfolio and growing customer relevance, fuel our medium-term growth.

We understand that some markets may experience slower decisionmaking cycles. However, our diverse offerings position us perfectly to capitalise on an upswing in any region. Our leadership in India, coupled with our expanding global footprint creates fertile ground for sustained progress.

This year, we witnessed a phenomenal 90% YoY increase in new client acquisition, a testament to our brand recognition and industry-leading reputation. This growth story isn't just about numbers; it's about empowering businesses of all sizes and locations to navigate the digital landscape with confidence.

We are deeply grateful for the support of our dedicated teams, partners, and all our stakeholders. Together, we will continue to reimagine, redefine, and revolutionise our digital fabric of solutions.