Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Investor Presentation (September 2020)
33 slides from Vodafone Idea's investor presentation, Sep 16, 2020
Slide 1: Exchange filing cover letter: Investor Presentation
16 September 2020 National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Phiroze Jeejeebhoy Towers, Bandra - Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Dear Sir, Sub: Investor Presentation Ref: “Vodafone Idea Limited” (IDEA / 532822) Pursuant to Regula
Slide 2: Vodafone Idea Limited
VI Vodafone Idea Limited
Slide 3: Company Overview
Company Overview 2
Slide 4: Vodafone Idea Limited: An Overview
Vodafone Idea Limited: An Overview 1,846 MHz ~181,000 ~446,000 ~363,000 Kms1 Spectrum holding Unique GSM Cell sites Broadband sites Fibre 1.2 billion 2G > 487,000 2G coverage 280 million Enhanced coverage Subscriber base Across towns & villages ~1 billion 4G coverage LTE ~30% ~26% Customer market sh
Slide 5: Advanced network leading to superior customer experience
Advanced network leading to superior customer experience Strongest spectrum position Highly advanced and extensive network Blended mobile ARPU (USD) (Mar 2020 unless otherwise stated)1 Vodafone Idea Total Holdings Total Liberalised Holdings ~ 1 billion 181,000 ~446,000 1,163 4G coverage Unique locat
Slide 6: Strong market position in consumer, business services & IoT
Strong market position in consumer, business services & IoT Total active wireless subscriber base1 Strong market position in growing business services market2 Number 1 in Internet of Things (Connectivity)2,3 Mar 2020 market share FY2020 business services mobility RMS (%) IoT connectivity RMS (%) ~$1
Slide 7: Globally scaled subscriber base
Globally scaled subscriber base Top 15 wireless operators globally by subscriber base1 Subscribers (mn) Single Country Operator 947 Multi-Country Operator of which Indian customer base of 280mn 420 398 345 343 310 280 278 275 262 208 205 186 171 171 2 Source: Company releases. 1. Based on latest ava
Slide 8: Strong new unified brand and other operating assets
Strong new unified brand and other operating assets Valuable array of other operating assets Ability to communicate with ~280mn Accessible customer base users Together For Tomorrow +90% district coverage and ~3k branded Broad pan-Indian coverage urban stores What is unique about Vi? Uniquely positio
Slide 9: Growth Opportunities
Growth Opportunities 8
Slide 10: Enormous growth potential in the Indian telecom sector
Enormous growth potential in the Indian telecom sector Mobile broadband is the primary medium ...and is well placed to continue its …given a large proportion of 2G/3G …and low 4G penetration relative to to access the internet in India… strong growth trajectory… subscribers still to migrate to 4G… gl
Slide 11: Supported by compelling macroeconomic backdrop
Supported by compelling macroeconomic backdrop… Growing and highly resilient Indian economy Huge market potential underpinned by a large and growing population Real GDP growth (%)1 and GDP at current prices ($tn) (Dec y/e)2 Population (mn) (Dec 2019) and 2019-2021 population growth2 (%) 2019 Populat
Slide 12: …a rapidly growing digital economy
…a rapidly growing digital economy Government’s digital India vision… …supporting ongoing and rapid digitalization of Indian market Digital Infrastructure as a Core Utility to UPI monthly transaction volume (mn)4 UPI monthly transaction amount Every Citizen 1.2bn (USDbn)4 people in world’s largest A
Slide 13: Indian wireless market is now fully consolidated
Indian wireless market is now fully consolidated… The Indian wireless market is well consolidated with an optimal structure that encourages healthy competition Mar 20131 Mar 20162 Mar 20203 Aircel MTS Others 1 Aircel Others 2 Others 4 5% 1% 1% 1% 7% 7% BSNL + MTNL BSNL + MTNL 8% 7% Vodafone Vodafone
Slide 14: …providing clear runway for market repair
…providing clear runway for market repair Significant growth potential for Indian ARPU Currently India offers one of the cheapest data in the world Blended mobile ARPU (USD) (Mar 2020 unless otherwise stated)1 Blended mobile ARPU per 1GB data (USD) (Mar 2020)1,3 38.3 3.83 14.9 6.4 3.06 ~95% 2.75 4.6
Slide 15: VIL Strategy
VIL Strategy 14
Slide 16: Vodafone Idea Strategy
Vodafone Idea Strategy 1 Focused network 2 Market initiatives 3 Focus on Business 4 Driving partnerships 5 Cost optimization to investments for superior to drive ARPU services and fast and digital revenue drive organizational customer experience improvement growing new segments streams efficiency •
Slide 17: Competitive market position
1 Competitive market position One of the leading players in 16 priority circles Strong position in 16 priority circles Combined gross revenue market share Q1FY21(%)1,2,3 Gross revenue market share Q1FY21 (%)2,3 % total industry gross revenue as Others of Q1FY213 4% Kerala 50% 3.6% Gujarat 39% 5.8% V
Slide 18: Aggressive investments in priority circles
1 Aggressive investments in 16 priority circles 4G coverage (mn) Network build capacity Key actions /targets by FY22 PB/day • 4G coverage in priority circles expected 3.0x to increase from ~83% in Mar 2020 to ~90%+ in Mar 2022 1.15bn 1.0bn • Re-farming 900 MHz to 4G offer better 2.1x consumer experi
Slide 19: Investments and integration supporting future growth
1 Investments and integration supporting future growth Largest spectrum holding… … have enabled successful network upgrade with 4G coverage expansion… Total holdings - unpaired basis (MHz)1 Pre-Merger June 2020 Liberalized 1,724 1,536 1,108 holdings - unpaired basis 1,846 (MHz)1 534mn 1,729 4G Cover
Slide 20: Existing award winning network built on 5G-ready architecture
1 Existing award winning network built on 5G-ready architecture RADIO CORE TRANSMISSION 5G ready radio India’s largest edge Hyper Scale deployments cloud deployment • 90% of TDD radios are • India’s largest • Multi-tenant shared • Platform to Edge (Video • Hyperscale architecture • IP intensificatio
Slide 21: Initiatives to drive ARPU improvement & customer acquisition
2 Initiatives to drive ARPU improvement & customer acquisition Brand initiatives - Active communication to improve customer perception • Build Consumer confidence around the new integrated network that delivers a superior experience • Drive an aggressive Communication agenda to dial up Build Consume
Slide 22: Supported by digitalisation of customer servicing & distribution
2 Supported by digitalisation of customer servicing & distribution Digitally enabled customer service Digital tools for sales and distribution • Dynamic IVR resulting in industry best closure of customer queries • Digital connect with retailers, promotors and distributors through apps like m-Power a
Slide 23: Focus on business services and fast growing new segments
3 Focus on business services and fast growing new segments 1 Protect and • Direct cloud connect service launched to support customers for a cloud-centric approach to their businesses; partnered with Amazon, Microsoft Azure & Google grow • SD-WAN services for future ready networks launched in partner
Slide 24: Partner of choice in provision of end to end cloud services
3 Partner of choice in provision of end to end cloud services A single platform with multiple partners and offerings Key Strategic Focus Areas Cloud • Strategic partnerships with Colocation / provider IaaS providers/ SaaS ecosystem • Co-create differentiated offerings with Scale through partners Par
Slide 25: Market leader in IoT, well positioned to capitalize on future growth
3 Market leader in IoT, well positioned to capitalize on future growth Opportunity to expand VIL’s presence in enterprise IoT Significant IoT use cases across industries IoT market segments (FY20)1 VIL’s estimated IoT position2 • Ready-to-use SIMs that fully integrate into Partial VIL ownership Conn
Slide 26: Vodafone Idea's propositions & integrated platform
4 Vodafone Idea’s propositions & integrated platform Consumer Business Business Services, SME, SoHo VIL CUSTOMER Strong IoT Cloud Tel & Broadband & Business OFFERINGS offering Service Super Wifi App Super IOT WebBuddy My Vodafone Service App Content and OTT app Energy Mgt WorkForceE REDX Experience
Slide 27: Extensive partnership opportunities across industries
4 Extensive partnership opportunities across industries Digital apps with advance billing systems for dynamic charging EDUCATION & • Open stack cloud Digital integration HEALTH Apps • Targeted reach at scale to Real estate including ~3k owned stores INSIGHTS TO relevant consumer Physical for a physi
Slide 28: Cost optimization to drive organizational efficiency
5 Cost optimization to drive organizational efficiency Digital focus across Post de-duplication exercise functions & processes to (synergy benefit), focus on improve organizational re-structuring business for efficiency new market realities ~INR 40bn (~14% of FY2020 Centralization of design & opex b
Slide 29: Q1FY21 Performance Review
Q1FY21 Performance Review 28
Slide 30: Key Operating Trends
Key Operating Trends Rationalization in Subscriber Base ARPU (INR) Expanding Broadband Sites (‘000) Million 108 107 109 121 114 446 436 320 311 417 304 291 280 405 393 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Consistent Growth in 4G Subscribers Rapid Data Volume Growth M
Slide 31: Finance: Quarterly Results
Finance: Quarterly Results • Q1FY21 revenue impacted by nationwide lockdown due Rs. bn Q4FY20 Q1FY21 to COVID-19 since end of March • EBITDA is adjusted for Ind AS 116 impact Revenue 117.5 106.6 • Q4FY20 EBITDA is adjusted for one-off of Rs. 4 bn related to network and employee expense EBITDA 17.1 1
Slide 32: Disclaimer
Disclaimer This presentation and accompanying slides (the “Presentation”) has been prepared by Vodafone India Limited (“Company”) and is not for release, distribution or publication, whether directly or indirectly, in whole or part, into or in any jurisdiction in which such release, distribution or
Slide 33: Thank You
Thank You 32
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