Slide 1: Reliance Communications Investor Presentation
Reliance Communications Investor Presentation August, 2012
Slide 2: Forward looking statements – Important Note
Forward looking statements – Important Note This presentation and the discussion that follows may contain “forward looking statements” by Reliance Communications Ltd (“RCOM”) that are not historical in nature. These forward looking statements, which may include statements relating to future results
Slide 3: Contents
Contents Reliance Communications – an integrated telco Wireless p Global Enterprise Home Ke takea Key takeaways a s Confidential 3 of 42
Slide 4: Journey so far
Reliance Communications Journey so far far…. FY 2009 to FY 2012 Mobile CDMA , GSM GSM, 3G 3G, Netconnect FY 2007 & FY 2008 3G FY 2005 & FY 2006 Globalcom FLAG Telecom, Vanco, Yipes, Falcon & NGN Mobile CDMA Service Enterprise IDC Mobile Infratel CDMA Service 200K slots; deepest backhaul Globalcom Di
Slide 5: Current position of our businesses
Reliance Communications Current position of our businesses Pan India Voice and Data network 3G license in 13 circles (highest number of circles by single Wireless operator) Data leadership – Widest footprint of wireless high speed data Largest global private submarine cable network network,
Slide 6: Strategy for focused and profitable growth
Reliance Communications Strategy for focused and profitable growth Address mass mobility market thru’ GSM with special focus on rural distribution ess Wirele Consolidate data market leadership with high ARPU 3G services & high speed datacards Increased revenue from new service streams (share o
Slide 7: Financial Highlights
Reliance Communications Financial Highlights Consolidated Revenue* (Rs. Mn) Consolidated EBITDA* (Rs. Mn) 250,000 221,323 231,076 100,000 90,816 203,823 78,205 200,000 75,000 64,899 150,000 50,000 100,000 50,000 25,000 0 0 FY' 10 FY' 11 FY' 12 FY' 10 FY' 11 FY' 12 EBITDA Margin 60% 39.3% 40% 35.3% 3
Slide 8: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 8 of 42
Slide 9: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 9 of 42
Slide 10: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 10 of 42
Slide 11: Widest Coverage – Pan India presence
Wireless Business Widest Coverage – Pan India presence 24,000 Towns 600,000 Villages 1 Billion Indians Data Voice VAS 3G HSD CDMA GSM Confidential 11 of 42
Slide 12: Distribution & Reach
Wireless Business Distribution & Reach 900 exclusive flagship retail showrooms on High streets/Malls with world class design & layout High quality reach & national footprint through 5,000 distributors & over 1 mn retailers Over 20,000 full-time direct & indirect sales force to cater to corpora
Slide 13: Widest Product Portfolio (Enhanced Data Offering)
Wireless Business Widest Product Portfolio (Enhanced Data Offering) Mobile Handheld Dongles / Tabs 3G HSPA CDMA HSD Voice CDMA GSM Data Video Wide options for Voice, Data & Video across CDMA & GSM platforms Confidential 13 of 42
Slide 14: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 14 of 42
Slide 15: Data Leadership: Leading the 2nd telecom revolution
Wireless Business Data Leadership : Leading the 2nd telecom revolution enabling “Wire Free” India Srinagar High speed data internet (3G, HSD) Number of 3G towns 333 Number of HSD towns ~1,000 Total high speed ~1,300 internet towns towns Imphal Porbandar Mobile internet (1X , EDGE) Guntur 3G circles:
Slide 16: Reliance - Google Android Partnership
Wireless Business Reliance - Google Android Partnership Reliance + Google Android Community: Brands Co Co-marketing marketing Special Data Offer + Android Experience Exclusive Customer Zone at Reliance Retail Best Experience of Care Outlets Google Mobile Services Objective is to create innovative pr
Slide 17: Driving the entire Data eco-system
Wireless Business Driving the entire Data eco eco-system system Worry-free billing & tariffs with ‘My Best Plan’ Enablingg device ecosystem through proprietary tab & partner handsets Signed marquee partnership with Google on Android to drive data Several S&D initiatives to expand usage on mobile dev
Slide 18: Driving the entire Data eco-system
Wireless Business Driving the entire Data eco-system eco system Launch of CDMA tab… … & partnering with 3G Smartphone Leaders Samsung g Wave 525 Wave 3 Galaxy S+ Galaxy R Galaxy Note Galaxy Tab 620 Reliance HSD Network HTC LG Android OS 2.3 7 inch Thin Film Transistor (TFT) capacitive multi-touch sc
Slide 19: Launch of new Reliance 3G Tab – V9A
Wireless Business Launch of new Reliance 3G Tab – V9A Main Features 7” WSVGA, high resolution 1024 x 600 Capacitive Touch Screen 3G Connectivity with HSDPA 14.4Mbps, HSUPA 5.76 Mbps Hi Hi-speed d11.4GHz 4GH PProcessor Android 2.3 (GingerBread) Wi-Fi + Hot spot GPS enabled Dual Camera –
Slide 20: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 2 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 20 of 42
Slide 21: Youth & Innovation-centric Brand
Wireless Business Youth & Innovation Innovation-centric centric Brand Redefining Brand Positioning 3G Mobile Data 2G Mobile Own Innovation Establish Supremacy Instill Trust/ Reliability Always ahead in launching 3G propositions Enable the wirefree India Gain share in the GSM (devices, apps, content
Slide 22: 3G | The 'Blue Bot' campaign
Wireless Business 3G | The ‘Blue Blue Bot’ Bot campaign Confidential 22 of 42
Slide 23: 3G Mobile - Just 3G Vs Reliance 3G
Wireless Business 3G Mobile - Just 3G Vs Reliance 3G Key proposition “Switch to Reliance for the fastest 3G experience” Impact Property India v/s England Series, Presenting sponsorship of over 250 properties covering movies & sports Confidential 23 of 42
Slide 24: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 2 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 24 of 42
Slide 25: Quality of Minutes
Wireless Business Quality of Minutes Rate Per Minute (RPM) 0.54 Operator 1 0.52 0.52 0.51 Operator 2 0 50 0.50 0.48 0.47 0.47 0.46 0.45 0.45 0.45 0 44 0.44 0 45 0.45 0.45 0 45 0.45 0.45 0.44 0.44 0.45 0.44 0.44 0.44 0.44 0.44 0.43 0.43 0.43 0.44 0.43 0.43 0.43 Operator 1 0.42 0.42 0.42 0.42 0.43 0 4
Slide 26: Financial Performance
Wireless Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 44,170 44,471 45,055 45,270 11,756 11,823 12,022 12,093 40 000 40,000 12 000 12,000 8,000 20,000 4,000 0 0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY12 3QFY12 4QFY12 1QFY13 EBITDA Margin 40% 26.6% 26.6% 26.7% 30% 26.7% 20% 10% 0% 2QFY12
Slide 27: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 27 of 42
Slide 28: Global Enterprise Business Overview
Global Enterprise Business Overview Global Enterprise Business Carrier Enterprise Consumer Among Top 15 largest Leading Enterprise services 2.5 million retail international long distance provider in India customers in 14 carrier with over 15 billion Among the Top 6 Leader-board of countries
Slide 29: Carrier business: Global connectivity & assets
Global Enterprise Business Carrier business: Global connectivity & assets Own 277,000 RKms of optic fiber cable with landing points in 30 countries & world’s largest private undersea cable system spanning 65,000 Kilometers M Manage over 60,000 60 000 customer sites i iin 163 countries i through
Slide 30: Enterprise business: Enterprise Managed Network
Global Enterprise Business Enterprise business : Enterprise Managed Network Global Connectivity Global Network 60,000+ managed sites with reach in 160 countries and territories Metro Ethernet connectivity across 26 Metros outside India High Capacity Access Network customized to meet Customer D
Slide 31: Biggest Data center player in India
Global Enterprise Business Enterprise p business : Biggest gg Data center p player y in India with more than 550,000 sq ft of space 18 (9 India; 9 Outside India) Data centers across the globe with more than 550,000 sq ft of facilities space Geographic redundancy Wide & complex application host
Slide 32: Consumer business: Calling services to 160+ countries
Global Enterprise Business Consumer business : Calling g services to 160+ countries across the globe Global Reach Innovative Product Suite Retail services in 14 countries including U.S, Canada, U.K., Australia, New Zealand, Hong K Kong, Si Singapore, F France, Canada, Spain, Belgium, Netherlands,
Slide 33: Global presence and strong customer base
Global Enterprise Business Global presence and strong customer base Over 2,100 enterprise and 2.5 million retail customer base outside India Over 200 carrier customers based on strong long term relationships with over 70% repeat Carrier orders; Particularly strong in Asia, the Middle East and
Slide 34: Financial Performance
Global Enterprise Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 30,000 8,000 23,353 23,516 24,395 24,514 5 694 5,694 5 694 5,694 5 893 5,893 5 915 5,915 22,500 6,000 15,000 4,000 7,500 2,000 0 0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY12 3QFY12 4QFY12 1QFY13 EBITDA Margin 40% 30% 24.4% 24.
Slide 35: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 35 of 42
Slide 36: Indian Cable & Satellite Market
Home Business Indian Cable & Satellite Market 180 18 160 20 22 140 26 120 33 41 100 110 47 108 Cable Dark 80 105 C&S 98 60 90 DTH 83 40 70 20 37 45 21 28 5 12 0 2 2007 2008 2009 2010 2011 2012E 2013E Source : Industry Estimates DTH penetration at ~20% of TV homes; gaining momentum Confidential 36 of
Slide 37: Reliance Digital TV (DTH)
Home Business Reliance Digital TV (DTH) 4.4 Mn. subscriber as of June 30th, 2012 Industry’s y 1st offerings g of its kind - All 250 channels in High Definition like quality Pioneering HD experience in India Pioneering DVR – “Watch when you want” Key service differentiators More channel c
Slide 38: Capable of complete suite of services
Home Business Capable of complete suite of services BroadcastTV and Radio EPG / Mini EPG Mosaic Portal Information News Stock Entertainment Game VoD / MoD / PVR Karaoke / Photo Album Services Advertisments Interactive Promotion Dedicated Advertiser Location Messaging SMS / MMS Mail Polling / Voting
Slide 39: The Pillars of Growth
Home Business The 4 Pillars of Growth Content Reach and service 250+ channels 8,100 towns 8 exclusive movie channels in 2,000+ exclusive Reliance English, Hindi and other retail stores regional languages 24x7, 11 language Interactive features – Games, customer service Shopping, Kids, Sto
Slide 40: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 40 of 42
Slide 41: Drivers for future growth and shareholder value
Reliance Communications Drivers e s for o future u u eggrowth o and a dsshareholder a e o de value a ue Drivers Impact Peak investment in estment phase o over: er RCOM contin continues es to Increase revenue be free cash flow positive. This trend to continue in generating ability succeeding years
Slide 42: Thank you
RELIANCE Thank you