Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Idea Cellular — Q3 FY2009 Earnings Presentation
20 slides from Vodafone Idea's earnings presentation, March 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 – Fastest Growing
Indian Wireless – Fastest Growing UBS 475 Subscribers (mn) * Drivers Estimates Yr ‘10 Citi 477 Cost of Entry CSFB 480 Cost of Handset Network Coverage Macq 500 Disposable Income ML 501 400 420 440 460 480 500 Estimates 500 450 487 390 400 350 Subscribers (mn) 300 261 250 162 200 150 96 100 52 34 50
Slide 4: Idea – An Overview
Idea – An Overview Operates in 15 service areas (incl. Spice Comm.) Operating service areas cover ~ 78% of national subscriber base With planned launch of Orissa and Tamil Nadu in next 4 months, and remaining before Dec ‘09, Idea will soon have pan- India operations Share of non-Idea service areas i
Slide 5: Competitiveness Lever 1 = Spectrum
Competitiveness Lever 1 = Spectrum 900 MHz spectrum band provides major capex/opex advantage, compared to 1800 MHz Idea holds 900 MHz spectrum in 9 service areas ~ 58% of national subs base (excl. 4 metros) ~ 50% of national subs base (total) Idea’s spectrum profile is very attractive across all pri
Slide 6: Competitiveness Lever 2 = Scale Within a Service Area
Competitiveness Lever 2 = Scale Within a Service Area Service Area Idea - Subs Mkt Rank (900 MHz) share* Kerala 26.2% 1 Maharashtra 24.7% 1 M.P. 23.9% 1 UP (W) 21.4% 2 Haryana 17.0% 2 A.P 16.7% 3 Gujarat 16.6% 3 Punjab# 17.5% 3 900 MHz Spectrum (incl. Spice Comm.) Karnataka# 6.9% 5 *Source: TRAI (as
Slide 7: 1800 MHz New Launches – Focus On Optimisation, Not Maximisation
1800 MHz New Launches – Focus On Optimisation, Optimisation, Not Maximisation Mumbai launched Aug ‘08, Bihar Oct ‘08, Orissa and Tamil Nadu launch by Jun ‘09, West Bengal, Kolkata, Assam, Northeast and J&K by Dec ‘09 To leverage synergies i.e. roaming, termination, NLD, ad spend etc. Focus on financ
Slide 8: The Indus Advantage
The Indus Advantage Provides passive infrastructure services in 15 service areas Largest independent tower company in the world - ~ 100,000 towers Indus Share Holding Indus benefits from assured tenancy from promoters, and from other operators Idea benefits by reduced capex, speed to market, and emb
Slide 9: Strong Balance Sheet to Drive Strategic Intent
Strong Balance Sheet to Drive Strategic Intent 1 Net Debt ~ INR 20 bn as on Dec ‘08 2 Net Worth ~ INR 136 bn as on Dec ‘08 Cash ~ INR 16bn cash profits during Apr - Dec 2008 3 Generation 4 Gearing Net Debt to Equity ratio of 0.14 with cash of ~ INR 80 bn, as of Dec ‘08 9
Slide 10: Idea – A Power Brand
Idea – A Power Brand No. 4 Buzziest Brand in India Across All Categories* The Top 25* * Buzziest Brands of the Year Poll 2009 10
Slide 11: Idea Has Built Large Capacities last 2 Fiscals
Idea Has Built Large Capacities last 2 Fiscals Added ~14700 sites in FY 2007- 08, more than doubling the sites built since inception Again added ~ 19500 sites in FY 2008- 09, almost doubling capacity during the year 50000 44200* Cum. Sites 45000 40000 35000 30000 24793 25000 20000 15000 10114 10000
Slide 12: Idea Has Absorbed Major Investments To Drive Future Benefit
Idea Has Absorbed Major Investments To Drive Future Benefit 100% 26.0% EBITDA Margin 26.4% 32.8% 33.3% 33.9% 33.2% 80% 19.5% 21.8% 60% 15.2% Network Cost 17.0% 16.4% 17.2% 16.3% 18.6% 18.8% Roaming & Access Charges 17.1% 17.4% 18.2% 40% 16.1% 12.8% 14.2% 12.9% Subs Acq & Busi Prom 13.2% 11.3% 20% 9.
Slide 13: Idea – Fastest Growing
Idea – Fastest Growing Revenue# 30.0 INR bn 26.2 21.8 23.0 25.0 19.9 20.0 17.1 CQGR* 10.3% 14.8 15.6 13.2 YoY (Apr – Dec ‘08) 49.5% 15.0 10.0 Highest revenue growth rate in last 4 5.0 quarters across all major players 0.0 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Subscribers# 3
Slide 14: Shareholding
Shareholding As on 31st Dec ‘08 Indian TOP 5 shareholders Others 10.8% (excluding Promoters) AV Birla TMI MAURITITUS 15.0% Foreign Group Holding 49.1% P5 ASIA INVESMENT 10.6% 40.1% MONET LIMITED 2.9% HSBC GLOBAL INVESTMENT 2.7% WAGNER LIMITED 2.0% Post Spice merger* TOP 5 shareholders Indian (exclud
Slide 15: Idea - Awards & Recognitions
Idea - Awards & Recognitions 15
Slide 16: Appendix
Appendix 16
Slide 17: Key Trends (Idea)
Key Trends (Idea) Minutes of use per user per month Realized rate per minute Minutes 440 428 Q3 FY09 0.64 417 420 411 410 Q2 FY09 0.62 400 Q1 FY09 0.65 377 380 360 Q4 FY08 0.70 360 Q3 FY08 0.74 340 Q2 FY08 0.80 INR 320 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 0.00 0.20 0.40 0.60 0.80 1.00 Ave
Slide 18: Financial Matrix (Idea)
Financial Matrix (Idea) *FY09 figures are for 9 months only Robust Growth in Top Line Robust Growth in EBITDA INR bn 22.7 INR bn 25 80 71.0 20.1 67.4 70 20 14.9 60 43.9 15 50 10.9 40 29.9 8.4 22.7 10 30 13.1 3.9 20 5 10 0 0 FY04 FY05 FY06 FY07 FY08 YTD FY09* FY04 FY05 FY06 FY07 FY08 YTD FY09* Robust
Slide 19: Financial Matrix (Consolidated)
Financial Matrix (Consolidated) *FY09 figures are for 9 months only, Including proportionate share of Spice Comm. & Indus Robust Growth in Top Line Robust Growth in EBITDA INR bn 22.7 INR bn 25 72.1 20.2 80 67.4 70 20 14.9 60 43.9 15 50 10.9 40 29.9 8.4 10 30 22.7 3.9 20 13.1 5 10 0 0 FY04 FY05 FY06
Slide 20: Thank You
Thank You ADITYA BIRLA GROUP