Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Idea Cellular — Q2 FY09 Earnings Presentation
20 slides from Vodafone Idea's earnings presentation, November 2008
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 – Fastest Growing
Indian Wireless – Fastest Growing Yr’’ 10 CLSA 415 Subscribers (Mn) * Market Estimates Yr UBS 471 Reduced Cost of Entry Macq 475 Expanded Network Coverage Citi 475 Increasing Disposable Income ML 478 Reduced Cost of Handset Ownership CSFB 481 0 100 200 300 400 500 315.31 mn Subs (Sep’08) 320 280 Sub
Slide 4: Idea – Strong Operating Performance
Idea – Strong Operating Performance 8 Established Service Areas Market Share * Operator Sep 30, 06 Sep 30, 07 Sep 30, 08 Bharti 18.5% 20.3% 20.5% Idea 17.6% 18.4% 19.8% Reliance 20.7% 17.7% 17.7% Vodafone 16.2% 17.5% 17.8% BSNL/MTNL 15.7% 14.8% 12.6% TATA 11.3% 11.3% 11.5% 3 New Service Areas - Laun
Slide 5: Idea – Expanding Footprint
Idea – Expanding Footprint Current Operations Post Spice Merger Post Launch in Tamilnadu and Orissa No. of Operational 13 15 17 Service Areas National Market 9.8% 11.0% NA Share * Subscriber 67% 78% 90% Coverage No. of Service 7 9 9 Areas in 900Mhz % of Subscribers Pan India, Covered by 900 Mhz 39%
Slide 6: Strong Balance Sheet and Cash Position
Strong Balance Sheet and Cash Position TMI has invested INR 73bn in Idea through issue of 464.73 mn shares at a 1 TMI Transaction price of Rs 156.96 per share Funds will be used for capital expenditure for expansion in new as well as existing service areas and for 3G auction Providence to invest app
Slide 7: Creating Brand Preference
Creating Brand Preference Strong Brand Nationwide campaigns 7
Slide 8: Building Strengths
Building Strengths Subscriber Addition (QoQ) Cell Site addition (QoQ) Subs in mn No 4.0 Q2 FY09 (EoP) 5,783 Q2 FY09 (EoP) 3.19 6000 3.19 30.38 33377 3.5 2.95 2.55 5000 3.0 3,945 4,092 2.38 3,596 2.13 2.5 4000 3,046 2,801 2.0 3000 1.5 2000 1.0 14.01 10114 Q4 FY07 (EoP) 1000 Q4 FY07 (EoP) 0.5 0.0 0 Q1
Slide 9: Investing For Long Term Competitive Advantage
Investing For Long Term Competitive Advantage 100% 90% 26.3% EBITDA Margin 32.8% 33.3% 33.9% 33.1% 34.7% 80% 70% 19.5% Network Cost 60% 12.8% 15.2% 17.0% 16.4% 17.2% 50% 16.2% 16.3% 18.5% Pass Through Charges 17.1% 17.4% 18.2% 40% 30% 15.5% 16.1% 12.8% 14.2% Subs Acq & Busi Prom 13.2% 11.3% 20% 10.8
Slide 10: Expansion Plans
Expansion Plans Launch in New Launched Mumbai in Aug’08 and Bihar in Oct’08 1 Service Areas Launching operations in Tamilnadu and Orissa during FY 09 2 With Punjab and Karnataka circles, Idea will cover 90% of India’s telephony Spice Acquisition potential Opportunity of rapid expansion in 5 New serv
Slide 11: Appendix About Idea
Appendix About Idea 11
Slide 12: Emergence of Idea
Emergence of Idea 1997 2000 2002 2004 2006 – Mar’09 2 Service 3 Service 5 Service 8 Service 11 to 17 Areas Areas Areas Areas Service Areas Launched HP, Raj, UP(E), Mumbai and Bihar Added Spice (Punjab and Karnataka) Acquired RPG Cellcom (Madhya Acquired Escotel Planned Launch for TN and Merged with
Slide 13: Shareholding
Shareholding Indian Others 9.87% Total Foreign Holding Limit 74.00 % AV Birla Foreign Group Direct Foreign Holding (30 Sep 08) 41.08 % Holding 49.05% 41.08% Indirect Foreign Holding (30 Sep 08) 10.66 % Direct + Indirect Foreign Holding 51.74 % As on 30th Sep’08 Top 10 Shareholders – Sep 30, 2008 ADI
Slide 14: Promoter Group
Promoter Group Aditya Birla Group One of India’s most respected business groups Earned the distinction of 'The Best Employer in India- 2007' (ranked # 1)* Anchored by over 100,000 employees from Strong confidence of all stakeholders, over 25 different nationalities lenders, and vendors Global player
Slide 15: Partners
Partners GSM Network in Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Himachal Pradesh and Mumbai Transformational IT outsourcing IVR managed services GSM Network in Delhi, Andhra Pradesh, Haryana, Kerala, Uttar Pradesh (E), Uttar Pradesh (W) and Bihar 15
Slide 16: Partnership in Indus
Partnership in Indus Purpose and To Provide passive infra to all Mobile operators on non-discriminatory basis 1 Coverage Will cover 15 Service areas out of 22 service areas covering 10 Idea Service areas De-merger and Merger, court driven process of typically 6 – 12 months 2 Operations Indus Arrange
Slide 17: Key Trends
Key Trends Minutes of use per user per month Realized rate per minute Minutes 440 428 Q2 FY09 0.62 411 417 420 Q1 FY09 0.65 400 Q4 FY08 0.70 381 377 380 Q3 FY08 0.74 360 360 Q2 FY08 0.80 340 Q1 FY08 0.84 INR 320 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 0.00 0.20 0.40 0.60 0.80 1.00 Average re
Slide 18: Operating Matrix
Operating Matrix Increase in Daily Minutes of Usages Cell Sites 379 33,377 400 mn 35000 No 350 30000 24,793 300 25000 236 250 20000 200 126 15000 10,114 150 10000 4,763 100 57 3,049 36 1,843 17 5000 50 0 0 FY04 FY05 FY06 FY07 FY08 H1 FY09 FY04 FY05 FY06 FY07 FY08 H1 FY09 Cumulative Investments Subsc
Slide 19: Financial Matrix
Financial Matrix *FY09 figures are for 6 months only Robust Growth in Top Line Robust Growth in EBITDA Rs Bln 22.7 Rs Bln 67.4 25 70 60 20 44.8 14.9 50 43.9 13.3 15 10.9 40 29.9 8.4 30 22.7 10 20 13.1 3.9 5 10 0 0 FY04 FY05 FY06 FY07 FY08 H1FY09* FY04 FY05 FY06 FY07 FY08 H1FY09* Robust Growth in Net
Slide 20: Thank You
Thank You ADITYA BIRLA GROUP