GTL Infrastructure Ltd · NSE:GTLINFRA
GTL Infrastructure — Q3 FY2009 Earnings Presentation
19 slides from GTL Infrastructure's earnings presentation, January 2009
Slide 1: GTL Infrastructure Limited
GTL Infrastructure Limited Jan 2009 Safe harbor • Neither the information nor any opinion expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any security issued by the company. This presentation contains predictions, estimates or other information regardin
Slide 2: GTL Infra at a Glance
GTL Infra at a Glance Business Shared Passive Telecom Infrastructure Provider Tower Portfolio Dec. 2008- 8,366 towers Mar 2011- 23,700 towers Asset Base US$ 708 mn* as of Dec. 2008 Presence 19 Circles across India Customers 9 major Indian Telecom Operators Awards Won ‘Top Independent Infrastructure
Slide 3: Value Proposition
Value Proposition • Reduction in Capex & capex and opex Opex due to sharing & management of infrastructure Operator Concerns • Reduces the time GTL Infra’s Time to required for rollout • Will enable to move endeavor is to Market into rural areas provide affordable and seamless • In-building coverage
Slide 4: Tower Business Fundamentals
Tower Business Fundamentals GTL Infra provides space to the operators to host their antenna on its towers and receives provisioning charges on monthly basis Growth tied to expansion of wireless networks Annuity driven business model - Stable and growing revenues Long term (10-15 years) contracts wit
Slide 5: Industry Analysis
Industry Analysis 5
Slide 6: Indian Telecom Market Overview
Indian Telecom Market Overview Parameter Current Status* Telecom Subscribers(mn) 374 Wireless Subscribers(mn) 326 Teledensity (%) 32.34 No.of Circles 22 Avg Net adds/Month (Mn) 9.20 Subscriber Growth Rate (FY 08) 46.71% Average Minutes of Usage per User 464 mins/month Average Revenue Per User Rs. 26
Slide 7: Present Tower availability
Present Tower availability 9000 8366 No. 1 amongst independent players 7500 6000 4500 3500 3000 1500 1000 700 1500 550 250 0 GTL Essar Xcel Aster Tower TVS Others Infra Vision Source: Industry reports 120000 84000 * Operator owned consist of 80000 66000 tower portfolios of BSNL, 48000 MTNL, Aircel e
Slide 8: Impact of Credit Crunch & Slowdown
Impact of Credit Crunch & Slowdown Effects on Tower sector Demand slowdown experienced during last 2 quarters Operators are harping on reductions in Tower Operational costs thus affecting tower rentals and expenses incurred on energy Capital market constraints is preventing wireless service provider
Slide 9: Drivers of future Tenancy growth
Drivers of future Tenancy growth Existing Operators BSNL’s agreement to occupy towers of Independent tower companies Aggressive pan India rollout by Aircel & Reliance GSM Continued leakage of tower demand of Bharti, Vodafone and Idea, to unaffiliated tower cos New Operators Operators who have receiv
Slide 10: Operations
Operations 10
Slide 11: Circle wise breakup as of Dec. 31, 2008
Circle wise breakup as of Dec. 31, 2008 Circle group RFIE CWIP Total Class A 3,124 894 4,018 Class B 2,752 619 3,371 Class C 542 366 908 Metros 69 0 69 Total 6,487 1,879 8,366 Tower rollouts started in Delhi, Mumbai and Jammu & Kashmir during the quarter Tower presence extended to 19 circles Shift t
Slide 12: Performance Review
Performance Review 75 60 Rs. Cr. 45 30 15 0 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 4,400 towers 8,366 towers Revenue from Infrastructure provisioning EBIDTA The number of ‘Ready for Installation of Equipment (RFIE)’ towers is 6,487 The occupancy on RFIE towers is 0.95 The number of ‘Occupants’ on RFIE t
Slide 13: Diverse customer mix
Diverse customer mix Tower Tenancy mix at the end of Q3FY09 Aircel 8% Others* Idea Tata Tele 5% 25% 8% Reliance 11% Vodafone BSNL 20% 12% Airtel 11% * Others include MTNL, STL, HFCL, BPL and Spice (Recently acquired by Idea) Major additions from Aircel, Idea, Reliance and TTSL during the quarter 13
Slide 14: Our Q3 FY 09 Results
Our Q3 FY 09 Results Quarter Ended Change Particulars Dec-08 Dec-07 Y-o-Y Rs.Cr Rs.Cr Net Income from Operations 57.91 37.27 55% Infrastructure O&M cost (Net) 17.53 9.25 90% Employee cost 4.46 4.55 -2% Other Expenditure 6.36 3.83 66% EBIDTA 29.56 19.64 51% EBIDTA Margin 51% 53% Interest and Finance
Slide 15: Planned Tower Rollout
Planned Tower Rollout 15
Slide 16: Tower Capex - Demystified
Tower Capex - Demystified Type of Cell-site Capex (USD '000) Microwave Ground based cellsite (3 tenants) 62 - 66 Antenna* Ground based cellsite (4 tenants) 70 - 74 Roof top cellsite (2 tenants) 28 - 32 Note: 1 USD = Rs. 48.58 GSM Antenna* Component of cell-site % of capex Tower RF Cables Tower & fou
Slide 17: Funding of Tower Rollout
Funding of Tower Rollout Mode of Raising Funds Amount (USD Mn) Highlights Existing Share Capital 84 1:1 Rights Issue 84 Issued at par Warrants: 264 Promoters 168 Warrants issued at Rs. 40/ IDFC 46 Share TIL 50 Attracted more than 93 FCCB 300 Global Investors; Issue over subscribed by 4 times From a
Slide 18: Future Rollout
Future Rollout Dec. 2008 Mar 2011E 19 Circles presence 22 8,366 No. of towers 23,700 708 Asset Base (USD Mn) 1,757 The Company intends to meet around 10% of the demand for towers in India in the next three years, through the planned rollout Note: The conversion rate assumed is 1USD = Rs. 41 for ease
Slide 19: Thank you
Thank you Contact Information: E-Mail : ir@gtlinfra.com Tel: +91 22 22715357 : +91 22 22715329