Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Idea Cellular — Q2 FY2010 Earnings Presentation
18 slides from Vodafone Idea's earnings presentation, October 2009
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 89.0% 280 272 264 Idea 263 11.0% 260 247 Q1 FY10 238 240 234 220 213 198 200 Others 91.9% 180 Idea 160 8.1% Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2 FY08 * excluding
Slide 4: Idea – An Overview
Idea – An Overview Operates in 20 service areas (incl. Spice) 51.5 mn subscribers as on Sep’09 Launched operations in J&K, West Bengal and Kolkata in Oct’ 09 Operating service areas cover ~98% of national subscriber base With the planned launch of North East & Assam service areas by Dec’09, Idea wil
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 ~ 49% of gross revenue base (total) ~ 60% of gross revenue base (excluding metros) Id
Slide 6: Competitiveness Lever 2 = Scale
Competitiveness Lever 2 = Scale Subscriber Revenue Service Area Mkt Share 1 Mkt Share 2 Rank 3 (900 MHz) (SMS) (RMS) Maharashtra 22.8% 28.6% 1 Kerala 24.4% 28.0% 1 UP (W) 20.6% 27.1% 1 M.P. 23.7% 28.5% 2 Haryana 15.9% 20.1% 2 Punjab 16.6% 17.9% 2 A.P 15.1% 17.6% 2 Gujarat 16.2% 17.5% 3 Karnataka 6.7
Slide 7: 1800 MHz New Launches
1800 MHz New Launches Focus On Optimisation, Optimisation, Not Maximisation Idea to be a pan-India operator in 2009 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 financi
Slide 8: Idea – Creating Long Term Shareholder Value
Idea – Creating Long Term Shareholder Value 900 MHz Service Areas 1800 MHz Service Areas ( 9 Operating ) ( 11 Operating + 2 to be launched ) Pan India Footprint ~49% of national revenue market covered under 9 operating service areas Leverage synergies of scale and wider presence 900 MHz spectrum usu
Slide 9: Strong Financial Performance
Strong Financial Performance Revenue Distribution Q2 FY10 INR bn % Revenue EBITDA Idea Standalone EBITDA 11 Service Areas 93.7% 35 32.0% 28.7 28.9 28.9 30 26.2 30.0% 23.0 30.4% 30.0% 6.3% 25 29.4% 29.2% 28.0% 28.1% 20 26.0% Investment Distribution as on 26.3% 26.7% 30.09.09 15 26.0% 25.9% 25.3% 24.0
Slide 10: The Indus Advantage
The Indus Advantage Provides passive infrastructure services in 15 service areas Largest independent tower company in the world - ~ 100,000 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 INR bn FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 Balance Sheet 1 Gross debt 52.8 65.2 97.4 97.3 99.2 77.6 60.9 59.2 Cash & Cash equivalent 13.8 10.5 9.2 66.9 79.6 49.6 26.6 23.1 Net Debt 39.0 54.6 88.3 30.4 19.6 28.0 34.3 36.1 Net
Slide 12: Idea – A Power Brand
Idea – A Power Brand THE ECONOMIC TIMES AWARDS FOR CORPORATE EXCELLENCE 2009 EMERGING COMPANY 12
Slide 13: Shareholding
Shareholding As on 30th Sep‘09 Indian TOP 5 shareholders Others 13.0% (excluding Promoters) TMI MAURITITUS 15.0% AV Birla Foreign P5 ASIA INVESMENT 10.6% Group 49.0% Holding 38.0% MONET LIMITED 2.9% BAJAJ ALLIANZ LIFE INSURANCE 1.8% 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 Minutes 48,729 50,339 INR 44,224 48000 Q2 FY10 0.56 40,254 36,315 40000 Q1 FY10 0.58 32000 Q4 FY09 0.63 24000 16000 Q3 FY09 0.64 8000 Q2 FY09 0.62 0 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 0.00 0.15 0.30 0.45 0.60 0.75 VAS as
Slide 16: Financial Matrix (Idea)
Financial Matrix (Idea) Robust Growth in Top Line Robust Growth in EBITDA INR bn INR bn 120 30 27.5 99.7 100 25 22.7 80 20 67.4 14.9 60 15 43.9 10.9 57.8 40 29.9 10 8.4 22.7 15.0 20 5 0 0 FY05 FY06 FY07 FY08 FY09 H1FY10 FY05 FY06 FY07 FY08 FY09 H1 FY10 Robust Growth in Net Profits Robust Growth in C
Slide 17: Financial Matrix (Consolidated)
Financial Matrix (Consolidated) Robust Growth in Top Line Robust Growth in EBITDA INR bn INR bn 120 36 101.5 32 100 28 28.4 80 24 22.7 67.4 20 60 43.9 16 14.9 40 29.9 10.9 59.5 12 22.7 8.4 16.7 20 8 4 0 0 FY05 FY06 FY07 FY08 FY09 H1FY10 FY05 FY06 FY07 FY08 FY09 H1 FY10 Robust Growth in Net Profits R
Slide 18: Thank You
Thank You ADITYA BIRLA GROUP