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 Citi 477 Drivers Estimates* FY ‘10 Subscribers (mn) CSFB 480 Cost of Service Macq 500 Cost of Handset Network Coverage ML 501 Disposable Income UBS 547 400 440 480 520 560 Estimates 550 500 505 450 392 Subscribers (mn) 400 350 300 261 250 162 200 96 150 52 100 34 7
Slide 4: Revenue – Fastest Growing in India
Idea – Fastest Growing in India 35.0 30.0 28.6 1 0 .2% 26.2 R* CQG Revenue (in bn) 25.0 23.0 21.8 19.9 20.0 17.1 15.6 14.8 15.0 13.2 10.0 5.0 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Back to back YoY revenue growth of 48%and 54% Indicative of Idea’s strengthening marke
Slide 5: Idea – An Overview
Idea – An Overview Operates in 16 service areas (incl. Spice) 43.02 mn subscribers as on Mar’09 Operating service areas cover ~ 80% of national subscriber base With Orissa launched April’09,Tamil Nadu by Jun’09 quarter, and remaining before Dec’09, Idea will have pan-India operations Idea’s coverage
Slide 6: Competitiveness Lever 1 = Spectrum
Competitiveness Lever 1 = Spectrum 900 MHz spectrum band provides capex/opex advantage, compared to 1800 MHz 900 MHz spectrum usually accompanied by early mover advantage Idea holds 900 MHz spectrum in 9 service areas ~ 50% of national subs base (total) ~ 58% of national subs base (excl. 4 metros) I
Slide 7: Competitiveness Lever 2 = Scale
Competitiveness Lever 2 = Scale Ranks 2nd in 900 MHz Service Areas Service Area Idea - Subs Rank (900 MHz) Mkt share* Kerala 26.7% 1 M.P. 24.4% 1 Maharashtra 23.9% 1 UP (W) 21.0% 2 A.P 16.6% 3 Gujarat 16.3% 4 Haryana 16.0% 4 Punjab# 16.7% 3 Karnataka# 7.0% 5 Total 18.7% 2 * Source: TRAI (as on 31 Ma
Slide 8: 1800 MHz New Launches
1800 MHz New Launches Focus On Optimisation, Not Maximisation Mumbai launch Aug’08, Bihar Oct’08, Orissa Apr’09, Tamil Nadu launch by Jun’09 and West Bengal, Kolkata, Assam, North East and J&K by Dec’09 Leverage synergies of pan India operations i.e. roaming, NLD, ad spend, common network elements,
Slide 9: Idea – Creating Long Term Shareholder Value
Idea – Creating Long Term Shareholder Value 900 MHz Service Areas 1800 MHz Service Areas ( 9 Operating ) ( 7 Operating + 6 to be launched ) ~50% of national population Pan India Footprint covered under 9 operating service areas Leverage synergies of scale and wider presence 900 MHz spectrum usually
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 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 11: Strong Balance Sheet to Drive Strategic Intent
Strong Balance Sheet to Drive Strategic Intent Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 INR bn FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09 Balance Sheet Gross debt 41.7 48.1 52.8 65.2 97.4 97.3 99.2 77.6 Cash & Cash equivalent 15.9 8.9 13.8 10.5 9.2 66.9 79.6 49.6 Net Debt 25.9 39.2 39.0 54.6 88.3 30.4 19.6 28.0 Net Wor
Slide 12: Idea – A Power Brand
Idea – A Power Brand No. 4 Buzziest Brand in India Across All Categories* * Buzziest Brands of the Year Poll 2009 12
Slide 13: Has Quadrupled Capacities Last Two Years
Idea Has Quadrupled Capacities last 2 Years Subs/Site 1465 1672 1554 1384 968 879 50000 44230 45000 40000 % 35000 88.8 Cell Sites (EoP) G R 30000 CA 24793 25000 20000 15000 10114 10000 3049 4763 1843 5000 0 FY04 FY05 FY06 FY 07 FY08 FY09 Added ~34000 sites in last two years, representing 4.4x enhanc
Slide 14: Idea – EBITDA Margin Bridge
Idea – EBITDA Margin Bridge* Q4 FY08 to Q4 FY09 40% 1.5% 1.0% 33.9% 0.4% 0.9% 30% 2.2% 25.9% 7.0% 20% 10% 0% EBITDA % Personnel & Subs Acq & Roaming Licence Fee Indus Network EBITDA % Q4 FY08 Admin Cost Busi Pro & Access & WPC Cost Impact# Cost Q4 FY09 Decline in EBITDA margin is ~ increase in netwo
Slide 15: Shareholding
Shareholding As on 31st Mar ‘09 Indian TOP 5 shareholders Others 12.0% (excluding Promoters) TMI MAURITITUS 15.0% AV Birla Foreign P5 ASIA INVESMENT 10.6% Holding Group 49.1% 38.9% MONET LIMITED 2.9% WAGNER LIMITED 2.2% HSBC GLOBAL INVESTMENT 2.0% Post Spice merger* TOP 5 shareholders Indian (exclud
Slide 16: Idea - Awards & Recognitions
Idea - Awards & Recognitions 16
Slide 17: Appendix
Appendix 17
Slide 18: Revenue Break Up
Revenue Break Up 100% EBITDA Margin 26.4% 26.0% 25.9% 33.9% 33.2% 80% 19.5% 21.8% Network Cost 60% 25.6% 16.4% 17.2% 18.6% Roaming & Access Charges 17.4% 18.8% 40% 18.2% 17.7% 14.2% 12.9% Subs Acq & Busi Prom 13.2% 11.3% 11.7% 20% 9.9% 11.2% 11.2% 10.9% 10.8% License & WPC charges 4.6% 4.6% 5.6% 5.3
Slide 19: Key Trends (Idea)
Key Trends (Idea) Minutes of use per user per month Realized rate per minute Minutes INR 440 431 Q4 FY09 0.63 421 416 420 411 Q3 FY09 0.64 402 400 Q2 FY09 0.62 Q1 FY09 0.65 380 Q4 FY08 0.70 360 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 0.00 0.20 0.40 0.60 0.80 Average revenue per user per month Pre pa
Slide 20: Financial Matrix (Idea)
Financial Matrix (Idea) Robust Growth in Top Line Robust Growth in EBITDA 30 120 INR bn INR bn 27.5 99.6 25 22.7 100 80 67.4 20 14.9 15 60 43.9 10.9 8.4 40 29.9 10 22.7 20 5 0 0 FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 Robust Growth in Net Profits Robust Growth in Cash Profits INR bn 23.4 I
Slide 21: Financial Matrix (Consolidated)
Financial Matrix (Consolidated) Robust Growth in Top Line Robust Growth in EBITDA 35 INR bn 120 INR bn 101.5 28.4 30 100 22.7 25 80 67.4 20 14.9 60 43.9 15 10.9 40 29.9 8.4 22.7 10 20 5 0 0 FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 Robust Growth in Net Profits Robust Growth in Cash Profits I
Slide 22: Thank You
Thank You ADITYA BIRLA GROUP