Reliance Communications Limited · NSE:RCOM
Reliance Communications — Investor Presentation (May 2011)
38 slides from Reliance Communications's investor presentation, May 2011
Slide 1: Reliance Communications Investor Presentation May 2011
Reliance Communications Investor Presentation May, 2011
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 38
Slide 4: Journey so far
Reliance Communications FY 2011 Journey so far far…. FY 2009 & FY 2010 3G Mobile M bil FY 2007 & FY 2008 CDMA & GSM Services FY 2005 & FY 2006 IDC Mobile • World’s Largest N/W • NGN Enterprise • 2L slots • Deepest backhaul Infratel Mobile Enterprise IPTV Foundation Growth Integration Evolution path
Slide 5: Current position of our businesses
Reliance Communications Current position of our businesses Wireless #2 in India, #4 globally (single country), dual technology Largest global private submarine cable network, blue-chip Globalcom global clients One stop shop for all large corporates and SMBs for Enterprise communications, netwo
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 eless Consolidate data market leadership with high ARPU 3G services & high speed datacards Wire Increased revenue from new service streams (share o
Slide 7: Financial Highlights
Reliance Communications Financial Highlights Key Financial Parameters (Rs. Mn) Revenue EBITDA Net Profit 229,485 221,323231,076 93,050 90,816 60,449 81,989 54,011 190,678 78,205 46,550 144,683 57,208 31 637 31,637 107,664 24,762 13,457 4,438 FY06 FY07 FY08 FY09 FY10 FY11 FY06 FY07 FY08 FY09 FY10 FY1
Slide 8: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 8 of 38
Slide 9: Industry outlook: India's growing mobile market
Wireless Business Industry outlook : India’s India s growing mobile market India, the world’s fastest growing & second biggest mobile market, has fifteen telecom service providers. Customer Market Share Industry Subscriber Net Additions MTS, 1.2% Uninor, 2.8% 806 Aircel, 6.8% 20 19 23 23 Bharti, 17
Slide 10: Indian telecom: Fast changing landscape
Wireless Business Indian telecom : Fast changing landscape Operators Hyper competition - Number of players increased from 7 to 15 in last one year Price Wars Multiple product offerings with innovation on price and tariff cuts only Call Rates 2007 2010 Intense Price cuts reduced the call rate from Rs
Slide 11: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Dual technology advantage 2 Data leader (HSD / EVDO) 3 136 Million customer base 3G License winner in 13 circles 4 (All 900 Mhz circles covered) 5 Integrated Telco with segmented play All this with only 7 years of existence in industry as compared t
Slide 12: 3G license in 13 circles; Pan-India data leadership
Wireless Business 3G license in 13 circles; Pan Pan-India India data leadership Won 13 circles with a spend of Rs. 8,585cr Geographical mix of top 3 metros, 4 “B” circles & 6 “C” circles Marginal capex for 3G upgrade on our EDGE GSM network 2G Circles Ci l 2G + 3G Circles Delhi & Mumbai Nationwide E
Slide 13: Launched 3G within 100 days of receiving the spectrum
Wireless Business Launched 3G within 100 days of receiving the spectrum 3G services kick off in 3 key metros of Mumbai, Delhi & Kolkata and city of Chandigarh on 13th December, 2010 Currently, 3G services are available in 330 cities & towns Confidential 13 of 38
Slide 14: Unbeatable choice and value proposition
Wireless Business India s billion people can now expect an unbeatable India’s choice and value proposition across…. 1. Coverage 2. Customer choice 3. HSD/Internet on the move 4. Product & Service innovations 5. Distribution & Reach Unmatched customer proposition Confidential 14 of 38
Slide 15: Coverage
Wireless Business Coverage 24,000 Towns 600,000 Villages 1 Billion Indians Voice Data VAS CDMA GSM Seamless coverage wherever you go Confidential 15 of 38
Slide 16: Customer Choice
Wireless Business Customer Choice Mobile Handheld Dongles 3G HSPA CDMA HSD Voice CDMA GSM Data Video Wide options for Voice, Data & Video across CDMA & GSM platforms Confidential 16 of 38
Slide 17: HSD/Internet on the Move
Wireless Business HSD/Internet on the Move Competitive differentiation Fastest internet broadband (High Speed Data) service in India’s top 500+ cities & towns Seamless handover & connectivity through CDMA 1X i over 20K ttowns in Wide reach compared to limited reach of wireline networks Broad
Slide 18: Product & Service innovations
Wireless Business Product & Service innovations Group Talk Tune Maker Simply Music Nokia Life Tools Bubbly (voice twitter) App Store Location Based Services WAP Portal Confidential 18 of 38
Slide 19: Distribution & Reach
Wireless Business Distribution & Reach World-class design , fit out & ambience at 2 000 exclusive retail showrooms on High 2,000 streets/Malls High quality reach & national footprint through 5,000 distributors & 1.2 million retailers 5 000+ Direct & indirect outbound sales 5,000+ force to cate
Slide 20: Financial Performance – Wireless
Wireless Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 41 528 41,528 41 613 41,613 40,644 41 978 41,978 11,989 11 989 12,101 12 101 11,792 11,490 40,000 12,000 8,000 20,000 4,000 0 0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY11 2QFY11 3QFY11 4QFY11 EBITDA Margin 80% 60% 40% 28 9% 28.9% 29 1%
Slide 21: Revenue Per Minute (RPM) trend
Wireless Business Revenue Per Minute (RPM) trend Change 2Q‘10 3Q‘10 4Q‘10 1Q'11 2Q'11 3Q’11 4Q’11 over last 6 Qtrs. Player 1 0.56 0.52 0.47 0.45 0.44 0.44 0.43 -23.2% Player 2 0.56 0.51 0.47 0.44 0.42 0.42 na -25.0% RCOM 0.47 0.45 0.44 0.44 0.44 0.44 0.44 -6.4% 0.60 Revenue Per Minute (Rs.) 0.55 0.5
Slide 22: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 22 of 38
Slide 23: Global Enterprise Business Overview
Global Enterprise Business Overview Global Enterprise Business Carrier Enterprise p Consumer Among Top 15 largest Leading Enterprise services Offer virtual international long distance provider in India international calling carriers with over 14 billion Among the Top 6 Leader-board of servic
Slide 24: Key Highlights
Global Enterprise Business Key Highlights 1 Infrastructure Geared for exponential growth of application and content traffic 2 Customers Diverse base includes the largest data users in developed and emerging markets 3 Products & Services Complete suite of products to capture growth across the value c
Slide 25: Network reach
Global Enterprise Business Network reach 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 Manage over 60,000 customer sites in 163 countries through 700 carrier partners This cable system is sea
Slide 26: Biggest data center player in India
Global Enterprise Business Biggest data center player in India Nine data centres with level 3+ accreditation – more than 450,000 sq ft of facilities space Geographic redundancy Wide & complex application hosted Core Banking, ATM/ Internet Banking Complex ERP/ SAP Applications Complex Int
Slide 27: Diverse and extensive customer base
Global Enterprise Business Diverse and extensive customer base Over 200 wholesale customers based on strong long term relationships with over 70% repeat orders; Carrier Particularly strong in China, Asia, the Middle East and India. Among Top 5 Managed Network Service providers with over 200 gl
Slide 28: Product Landscape – Enterprise Market
Global Enterprise Business Product Landscape – Enterprise Market Voice Wireless Enterprise NLD/ILD IDC Collaboration Broadband • Landline • Mobile Data • Reliance • Hosting • Video Internet prepaid p p and • MPLS VPN India Call Conferencing g • Prepaid and postpaid • Fixed • Storage & postpaid BB •
Slide 29: Financial Performance – Global Business
Global Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 29,122 50,000 44,758 30,000 40,000 25,000 20,000 30,000 15,000 18,137 18,391 19,233 20,000 10,000 10,000 3,317 3,393 3,966 5,000 0 0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY11 2QFY11 3QFY11 4QFY11 EBITDA Margin 70% 65.1% 60% 50% 40% 30%
Slide 30: Financial Performance – Enterprise Domestic
Enterprise Business: Domestic Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 8,000 3,000 6 763 6,763 6 617 6,617 6,906 2 481 2,481 2 477 2,477 6,184 2,267 2,261 6,000 2,000 4,000 1,000 2 000 2,000 0 0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY11 2QFY11 3QFY11 4QFY11 EBITDA Margin 60% 36.6% 37.5% 36.7%
Slide 31: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 31 of 38
Slide 32: Indian Cable & Satellite Market
Home Business Indian Cable & Satellite Market Source : Industry y Estimates DTH penetration at ~20%% of TV homes; gaining momentum Confidential 32 of 38
Slide 33: Reliance Digital TV (DTH)
Home Business Reliance Digital TV (DTH) Industry’s 1st offerings 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 choice Pure Digital g viewing g 32 Cinema ch
Slide 34: Digital TV Services: Complete suite of services
Home Business Digital TV Services: 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
Slide 35: The Pillars of Growth
Home Business The 4 Pillars of Growth Content Reach and service 250+ channels 6,500 towns 20+ exclusive movie channels 2,000+ exclusive Reliance in English, Hindi and other retail stores regional languages 24x7, 11 language Interactive features – Games, customer service News, Cricket, St
Slide 36: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 36 of 38
Slide 37: Drivers for future growth and shareholder value
Looking ahead Drivers for future growth and shareholder value Drivers Impact Financials at inflection point as GSM and 3G Increase revenue momentum scales up generating ability RCOM not only reliant on wireless business for ffuture t growth; th massive i opportunity t it ini newer Large pipeline
Slide 38: Thank you
RELIANCE Thank you
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