Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Idea Cellular — Q3 FY10 Earnings Presentation
18 slides from Vodafone Idea's earnings presentation, January 2010
Slide 1: Idea Cellular Limited Investor Presentation
Idea Cellular Limited Investor Presentation
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context
Slide 3: Indian Wireless Sector – Revenue Trend
Indian Wireless Sector – Revenue Trend Idea - Increase in Revenue Market Share Sector Gross Revenue# (INR bn) Others, 87.3% 280 271.9 262.6 263.9 263.8 265.6 Idea, 260 12.7% 246.8 Q3 FY10* 237.7 240 234.2 220 213.0 198.2 Others 200 91.9% 180 Idea 8.1% 160 Q2 FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q
Slide 4: Idea – An Overview
Idea – An Overview Operates on a pan India basis (including Spice) 57.6 mn subscribers as on Dec’09 Launched 7 service areas in last 9 months S. No. Service Area Launch Month 1. Orissa Apr’09 2. Tamil Nadu May’09 3. Jammu & Kashmir Oct’09 4. West Bengal Oct’09 5. Kolkata Oct’09 6. Assam Nov’09 7. No
Slide 5: Competitiveness Lever 1 - Spectrum
Competitiveness Lever 1 - Spectrum 900 MHz spectrum band provides capex/opex advantage, compared to 1800 MHz 900 MHz spectrum also accompanied by early mover advantage Idea holds 900 MHz spectrum in 9 service areas ~ 48% of gross revenue base (total) ~ 59% of gross revenue base (excluding metros) Id
Slide 6: Competitiveness Lever 2 - Scale
Competitiveness Lever 2 - Scale Service Area Revenue Mkt Share 1 Rank 2 (900 MHz) (RMS) Kerala 28.6% 1 Maharashtra 28.5% 1 UP (W) 28.3% 1 M.P. 27.8% 2 Haryana 19.7% 2 Punjab 17.6% 2 A.P 17.2% 2 Gujarat 18.7% 3 Karnataka 6.8% 6 Total 20.8% 2 1 Based on gross revenues for Dec’09 quarter, as released b
Slide 7: 1800 MHz New Launches
1800 MHz New Launches Focus On Optimisation, Optimisation, Not Maximisation Leverage synergies of pan India operations i.e. roaming, NLD, ad spend, common network elements, etc. Infra sharing to reduce capex, and time to market Focus on operational and financial goals, not league tables 7
Slide 8: Idea – Creating Long Term Shareholder Value
Idea – Creating Long Term Shareholder Value 900 MHz Service Areas 1800 MHz Service Areas ( 9 Operating ) ( 13 Operating ) Pan India Footprint ~48% of national revenue market covered under 9 operating service areas Leverage synergies of scale and wider presence 900 MHz spectrum usually accompanied by
Slide 9: Strong Financial Performance
Strong Financial Performance Revenue Distribution Q3 FY10 INR bn % Revenue EBITDA% Idea Standalone EBITDA% 11 Established Service Areas 92.2% 32 30.6 32.0% 28.7 28.9 28.9 28 26.2 30.0% 23.0 30.4% 30.1% 7.8% 24 30.0% 29.4% 29.2% 28.0% 20 28.1% Investment Distribution as on Dec'09 16 26.0% 26.3% 26.7%
Slide 10: The Indus Advantage
The Indus Advantage Provides passive infrastructure services in 15 service areas Largest independent tower company in the world - ~ 103,000 towers under its management Indus Share Holding Indus benefits from assured tenancy from promoters, and from other operators Idea benefits by reduced capex, spe
Slide 11: Strong Balance Sheet to Drive Strategic Intent
Strong Balance Sheet to Drive Strategic Intent Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 INR bn FY08 FY09 FY09 FY09 FY09 FY10 FY10 FY10 Balance Sheet 1 Gross debt 65.2 97.4 97.3 99.2 77.6 60.9 59.2 57.5 Cash & Cash equivalent 10.5 9.2 66.9 79.6 49.6 26.6 23.1 20.0 Net Debt 54.6 88.3 30.4 19.6 28.0 34.3 36.1 37.5 Net
Slide 12: Idea – A Power Brand
Idea —- A Power Brand t & “for the people by the people” ADITYA BIRLA GROUP 4 ~~ | Idea - a ——— seo file alk, — youtalk. One school. Unlimited admissions. ADITYA BIRLA GROUP 12
Slide 13: Shareholding
Shareholding As on 31st Dec‘09 Indian TOP 5 shareholders Others 13.2% (excluding Promoters) TMI MAURITITUS 15.0% AV Birla Foreign P5 ASIA INVESMENT 10.6% Group 49.0% Holding 37.8% MONET LIMITED 2.9% BAJAJ ALLIANZ LIFE INSURANCE 2.0% LIC OF INDIA MONEY PLUS 1.4% Post Spice merger* TOP 5 shareholders
Slide 14: Appendix
Appendix 14
Slide 15: Key Trends (Idea)
Key Trends (Idea) Minutes of use on Network (QoQ) Realized rate per minute bn - Minutes 57.8 INR 60 48.7 50.3 Q3 FY10 0.51 50 44.2 40.3 Q2 FY10 0.56 40 30 Q1 FY10 0.58 20 Q4 FY09 0.63 10 Q3 FY09 0.64 0 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 0.00 0.15 0.30 0.45 0.60 0.75 VAS as a % of Revenue Cell S
Slide 16: Financial Matrix (Idea)
Financial Matrix (Idea) Robust Growth in Top Line Robust Growth in EBITDA 120 30 27.5 INR bn INR bn 99.7 100 25 22.7 80 20 67.4 14.9 60 15 43.9 10.9 88.4 22.2 40 29.9 10 8.4 22.7 20 5 0 0 FY05 FY06 FY07 FY08 FY09 YTD Q3FY10 FY05 FY06 FY07 FY08 FY09 YTDQ3FY10 Robust Growth in Net Profits Robust Growt
Slide 17: Financial Matrix (Consolidated)
Financial Matrix (Consolidated) Robust Growth in Top Line Robust Growth in EBITDA 35 120 INR bn INR bn 101.5 30 28.4 100 25 22.7 80 67.4 20 60 14.9 43.9 15 91.0 24.8 10.9 40 29.9 22.7 10 8.4 20 5 0 0 FY05 FY06 FY07 FY08 FY09 YTD Q3FY10 FY05 FY06 FY07 FY08 FY09 YTDQ3FY10 Robust Growth in Net Profits
Slide 18: Thank You
Thank You ADITYA BIRLA GROUP