Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Idea Cellular — Investor Presentation (September 2011)
20 slides from Vodafone Idea's investor presentation, September 2011
Slide 1: Idea Cellular Limited Investor Presentation
Idea Cellular Limited Investor Presentation September, 2011
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 Sector Gross Revenue (INR bn) Idea - Increase in Revenue Market Share 340 Others 331.9 86.1% 330 320 316.7 Idea 13.9% 310 304.4 Q1 FY12 300 290.2 290 287.2 280 277.8 270 265.6 263.9 263.8 Others 260 89.4% 250 Idea 240 10.6% Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2
Slide 4: Idea – An Overview
Idea – An Overview A pan India 2G service provider Won 3G spectrum in 11 service areas Third largest operator in India, in terms of Mobility Revenues# Minutes on network > 1.2bn per day, placing it among the top 10 operators in the world Currently owns 9,000 towers, besides 11,094 towers transferred
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, covering ~ 48% of national revenue and ~75% of Idea’s revenue ~ 58% of national reve
Slide 6: Competitiveness Lever 2 - Scale within Service Area
Competitiveness Lever 2 - Scale within Service Area Service Area Revenue Mkt Share 1 Rank 2 (900 MHz) (RMS) Kerala 31.3% 1 M.P. 31.2% 1 Maharashtra 28.9% 1 UP (W) 27.3% 1 Haryana 21.0% 2 Punjab 19.3% 2 A.P 16.9% 2 Gujarat 17.1% 3 Karnataka 8.5% 4 Total 21.6% 2 # 1 Player 1Based on gross revenue for
Slide 7: 1800 MHz Operations (6 Service Areas)
1800 MHz Operations (6 Service Areas) Emerging Stronger Revenue Mkt Share 1 Service Area Rank 2 (RMS) UPE 11.9% 3 Rajasthan 9.7% 3 Delhi 10.1% 4 Bihar 9.4% 4 H.P. 7.2% 5 Mumbai 7.0% 6 Total 9.6% 4 1Based on gross revenue for Q1FY12, as released by TRAI & Company estimates 2Based on revenue market sh
Slide 8: 1800 MHz Operations (7 New Service Areas)
1800 MHz Operations (7 New Service Areas) Focus On Optimisation, Not Maximisation Providing pan India footprint Leverage synergies of pan India operations i.e. roaming, NLD, ad spend, common network elements, etc. Infra sharing to reduce capex, and quicker time to market Focus on operational and fin
Slide 9: 3G Footprint
3G Footprint Idea launched 3G services in 9 service areas, out of 11 service areas where it won 3G spectrum Currently around 7,000 3G sites in these service areas Launched 3G services under roaming arrangements for the service areas of Mumbai, Bihar, Karnataka, Rajasthan West Bengal , Delhi, Kolkata
Slide 10: Idea – Long Term Shareholder Value
Idea – Long Term Shareholder Value 900 MHz 1800 MHz 3G Value Drivers ( 9 Service Areas ) ( 13 Service Areas ) Pan India Footprint Market power to drive new Leverage synergies of scale and Cover ~48% of national revenue business: Ranked #1 or #2, in 7 out footprint market of 11 service areas, where i
Slide 11: The Indus Advantage
The Indus Advantage Provides passive infrastructure services in 15 service areas Largest independent tower company in the world with over 108,000 towers Indus Share Holding Indus benefits from assured tenancy from promoters (combined revenue market share of ~66%*), apart from other operators Idea be
Slide 12: Idea – A Power Brand
the language barrier. What an idea! ADITYA BIRLA GROUP Get better network. | Call 1800 270 0000 (Toll free). 12
Slide 13: World Class Operations and Cost Management
World Class Operations and Cost Management Paisa Revenue (INR bn) Minutes (bn) ARR* Cost/Min 110.0 108.6 50 102.0 100.0 93.5 90.0 84.8 45 82.3 80.0 43.8 42.3 41.8 70.0 41.0 40 40.6 60.0 35.2 50.0 34.5 45.6 35 33.9 42.7 39.9 32.6 40.0 36.9 36.9 32.1 30.0 30 20.0 10.0 25 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1
Slide 14: Strong Balance Sheet to Support Strategic Intent
Strong Balance Sheet to Support Strategic Intent Q1 Q1 Q1 Q1 INR Crores FY09 FY10 FY11 FY12 Balance Sheet1 Gross debt 9743 6088 9775 10432 Cash & Cash equivalent 916 2656 118 53 Net Debt 8827 3432 9657 10379 Net Worth 3811 13650 11612 12433 Cash Profit1 574 731 721 861 Financial Ratios1 Net Debt to
Slide 15: Shareholding
Shareholding As on 30th Jun’11 Indian Others, 11.1% Promoter Foreign Group, 46.0% Holding 42.9% PROMOTERS’ HOLDING TOP 5 SHAREHOLDERS TMI MAURITIUS 14.1% ADITYA BIRLA NUVO LIMITED 25.3% P5 ASIA INVESTMENTS (MAURITIUS) 10.0% BIRLA TMT HOLDINGS PVT LTD 8.6% TMI INDIA LTD. 5.0% HINDALCO INDUSTRIES LIMI
Slide 16: Appendix
Appendix 16
Slide 17: Key Trends (Quarterly)
Key Trends (Quarterly) Minutes of use on Network (QoQ) Realized rate per minute 110 108.6 50.00 paisa 43.8 42.3 bn - Minutes 102.0 41.8 40.6 41.0 100 40.00 93.5 90 30.00 82.3 84.8 80 20.00 70 10.00 60 0.00 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 VAS as a % of
Slide 18: Financial Matrix (Standalone - Annual)
Financial Matrix (Standalone*- Annual) Robust Growth in Top Line Robust Growth in EBITDA 175 35 33.3 INR bn 156.4 INR bn 30.5 150 30 27.5 125 121.4 25 22.7 99.7 100 20 75 14.9 67.4 15 50 43.9 10 25 5 0 0 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Robust Growth in Net Profits Robust Growth in
Slide 19: Financial Matrix (Consolidated - Annual)
Financial Matrix (Consolidated*- Annual) Robust Growth in Top Line Robust Growth in EBITDA 175 40 37.9 INR bn 155.0 INR bn 150 35 34.1 124.5 28.4 125 30 101.5 25 22.7 100 20 75 14.9 67.4 15 50 43.9 10 25 5 0 0 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Robust Growth in Net Profits Robust Grow
Slide 20: Thank You
Thank You ADITYA BIRLA GROUP
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