Vodafone Idea Ltd · NSE:IDEA
Vodafone Idea — Idea Cellular — Investor Presentation (2011)
20 slides from Vodafone Idea's investor presentation, 2011
Slide 1: Idea Cellular Limited Investor Presentation
Idea Cellular Limited Investor Presentation 1
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# 305 304.4 Others 86.7% 295 290.2 287.2 Idea 285 13.3% 277.8 Q3 FY11 275 271.9 265.6 263.9 263.8 265 262.6 255 258.3 Others 90.3% 245 Idea 235 9.7% Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10
Slide 4: Idea – An Overview
Idea – An Overview A pan India 2G service provider, with all 22 licenses under a single legal entity Third largest wireless operator in India Minutes of Use on network >1bn per day, placing Idea among the top 10 operators in the world Winner of 3G spectrum in 11 service areas 2G Service Areas 2G+3G
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 ~76% of Idea’s revenue ~ 59% 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 29.9% 1 M.P. 29.5% 1 Maharashtra 28.6% 1 UP (W) 27.5% 1 Punjab 19.6% 2 Haryana 19.5% 2 A.P 16.3% 2 Gujarat 17.3% 3 Karnataka 7.8% 5 Total 21.0% 2 # 1 Player 1 Based on gross revenue for
Slide 7: 1800 MHz Operations (Older Service Areas)
1800 MHz Operations (Older 6 Service Areas) Emerging Stronger Revenue Mkt Share 1 Service Area Rank 2 (RMS) UPE 11.2% 3 Rajasthan 8.9% 3 Delhi 9.6% 4 Bihar 9.0% 4 H.P. 7.6% 4 Mumbai 6.9% 6 Total 9.0% 4 1 Based on gross revenue for Q3FY11, as released by TRAI 2 Based on revenue market share These ser
Slide 8: 1800 MHz Operations (Newer Service Areas)
1800 MHz Operations (Newer 7 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 f
Slide 9: 3G Auction
3G Auction Winner Where It Counts Winner in 11 service areas, covering ~50% of all India revenue Covers ~80% of Idea’s revenue All 8 Service Areas (900MHz), where Idea is #1/2/3 are covered Total payment Rs 57.69bn, lowest among major operators Intra-Circle roaming arrangements to provide further op
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 ) ( 11 Service Areas) Pan India Footprint Market power to drive new business: Ranked #1 or #2, in 7 out Cover ~48% of national revenue of 11 service areas Leverage synergies of scale and marke
Slide 11: The Indus Advantage
The Indus Advantage Provides passive infrastructure services in 15 service areas Largest independent tower company in the world with around 108,000 towers Indus Share Holding Indus benefits from assured tenancy from promoters (combined revenue market share of ~66%*), apart from other operators Idea
Slide 12: Idea – A Power Brand
MOBILE. ie = SAVE PAPER.. Shaaregal Get Idea! Get better network. Call 1800 270 0000 Tol tree). ADITYA BIRLA GROUP Get Idea! if Get better tariffs. Call 1800 270 0000 (all tree). the language barrier. What an idea! customer care. Call 1800 270 0000 Fal tee, 12
Slide 13: World Class Operations and Cost Management
World Class Operations and Cost Management Revenue (INR bn) Minutes (bn) ARR* Cost/Min Paisa 100 55 93.5 51.4 90 84.8 82.3 50 80 46.6 70 68.3 43.8 45 42.3 41.8 60 57.8 40 50 40.5 36.9 39.9 40 36.9 35 33.0 36.2 35.2 30.6 34.5 33.9 30 30 20 10 25 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 In an over-crowded s
Slide 14: Strong Balance Sheet to Support Strategic Intent
Strong Balance Sheet to Support Strategic Intent Q1 Q1 Q4 Q1 Q2 Q3 INR bn FY09 FY10 FY10 FY11 FY11 FY11 Balance Sheet1 Gross debt 97.4 60.9 65.3 97.8 97.5 97.6 Cash & Cash equivalent 9.2 26.6 14.0 1.2 5.0 4.6 Net Debt 88.3 34.3 51.3 96.6 92.5 93.0 Net Worth 38.1 136.5 114.1 116.1 117.8 120.1 Cash Pr
Slide 15: Shareholding
Shareholding As on 31st Dec’10 Indian Others 10.1% Foreign Promoter Holding Group 42.9% 47.0% PROMOTERS’ HOLDING TOP 5 SHAREHOLDERS ADITYA BIRLA NUVO LIMITED 25.4% TMI MAURITIUS 14.1% BIRLA TMT HOLDINGS PVT LTD 8.6% P5 ASIA INVESTMENTS (MAURITIUS) 10.0% HINDALCO INDUSTRIES LIMITED 6.9% TMI INDIA LTD
Slide 16: Appendix
Appendix 16
Slide 17: Key Trends (Quarterly)
Key Trends (Quarterly) Minutes of use on Network (QoQ) Realized rate per minute 95 93.5 60.00 51.4 paisa bn - Minutes 82.3 84.8 46.6 80 43.8 42.3 45.00 41.8 68.3 65 57.8 30.00 50 15.00 35 20 0.00 Q3 FY10 Q4 FY10 # Q1 FY11 * Q2 FY11 * Q3 FY11 * Q3 FY10 Q4 FY10 # Q1 FY11 * Q2 FY11 * Q3 FY11 * VAS as a
Slide 18: Financial Matrix (Idea - Annual)
Financial Matrix (Idea*- Annual) Robust Growth in Top Line Robust Growth in EBITDA 121.4 32 125 INR bn INR bn 30.5 27.5 99.7 28 100 24 22.7 67.4 20 75 16 14.9 43.9 50 12 10.9 29.9 8.4 22.7 8 25 4 0 0 FY05 FY06 FY07 FY08 FY09 FY10 FY05 FY06 FY07 FY08 FY09 FY10 Robust Growth in Net Profits Robust Grow
Slide 19: Financial Matrix (Consolidated - Annual)
Financial Matrix (Consolidated*- Annual) Robust Growth in Top Line Robust Growth in EBITDA 124.5 35 34.1 125 INR bn INR bn 101.5 30 28.4 100 25 22.7 75 20 67.4 14.9 15 50 43.9 10.9 10 8.4 29.9 22.7 25 5 0 0 FY05 FY06 FY07 FY08 FY09 FY10 FY05 FY06 FY07 FY08 FY09 FY10 Robust Growth in Net Profits Robu
Slide 20: Thank You
Thank You ADITYA BIRLA GROUP