Slide 1: Idea Cellular Limited
Idea Cellular Limited Internal 1
Slide 2: Agenda
Indian Wireless Industry – Current Trends Idea Performance Way forward Idea – Vodafone (India) Merger Internal
Slide 3: Indian Wireless Industry
Indian Wireless Industry Witnessing consolidation; 4-5 Large Pan India Operators Year 2013 to 2016 • Mobile Voice Segment characterized by intense competition - 6 to 9 operators in each service area • Mobile Broadband Data – emerging segment with lower competition. Year 2016 to 2017 - Large scale di
Slide 4: Industry Witnessing Consolidation: Revenue Market Share
Industry Witnessing Consolidation Revenue Market Share (GR) RMS IRMS FY13-17 FY13-17 33.1% Airtel [+2.9%] 44.4% 32.4% 30.7% 31.4% 30.5% 30.2% 30.2% 28.5% 26.6% Rest [-7.9%] 24.5% -6.4% of Ind. 23.5% 22.5% 23.1% 23.3% 23.1% Vodafone [+1.0%] 27.5% 18.9% Idea [+4.0%] 34.5% 18.9% 17.5% 14.9% 16.2% 8.4%
Slide 5: Industry Witnessing Consolidation: Subscriber Market Share
Industry Witnessing Consolidation Subscriber Market Share (VLR) 33.8% 32.2% 32.2% CMS – Mar-16 to Jun-17 29.1% 27.1% 26.5% 27.0% 26.1% 26.2% 26.5% Airtel [+0.3%] 26.1% Rest 25.6% [-8.2%] of Ind. 20.7% 20.1% 19.6% 19.5% 19.4% Vodafone [-1.0%] 20.4% 19.6% 19.5% Idea [-0.2%] 20.0% 19.6% 19.5% 19.4% 9.8
Slide 6: Large Untapped Opportunity
Large Untapped Opportunity For Both Voice & Data While the subscriber Penetration at ~91%, however, low Rural Penetration of ~57% provides ~1.3 billion large opportunity going forward Indian Population Rural Subs Urban Subs 1200.0 200.0% 1000.0 150.0% ~1.2 billion Mobile subs 800.0 588.8 672.4 680.7
Slide 7: Agenda
Indian Wireless Industry – Current Trends Idea Performance Way forward Idea – Vodafone (India) Merger Internal
Slide 8: Since Inception, as Idea Grew & Evolved
Internal Since Inception, as Idea Grew & Evolved It Re-invented itself Thrice 2011 – 2017 2006 – 2010 Launched 3G, 4G & Digital Services. 1997 1998 – 2005 Expanded to 8 Single Promoter Became a Pan India Mobile Started with 2 Service Areas Became a Pan India Broadband Service Provider* Service Areas
Slide 9: Idea growth > 1.5x Industry until FY16, Now holding fort
Idea growth > 1.5x Industry until FY16, Now holding fort In Rs. Crs Idea Revenue Industry Revenue Idea RMS Gross revenue as per (CAGR: 12.3%) (CAGR: 5.9%) TRAI reports +5.4% 193,008 -1.6% 189,901 +10.8% 183,161 +9.3% 165,335 151,234 18.9% 0.0% 18.9% +1.4% 17.5% +1.3% 16.2% +1.3% 14.9% +18.6% +19.8%
Slide 10: Idea gaining highest incremental subscriber Net Adds share
Idea gaining amongst the highest incremental subscriber Net Adds share over last 4 years Idea V LR Subsc ribe r Industry V LR Subsc riber Idea V LR Subs Market Share 1016.4 936.5 862.6 790.9 19.6% 19.5% 723.0 18.7% 17.4% 16.6% 137.9 161.4 183.9 198.3 120.2 FY13 FY14 FY15 FY16 FY17 VLR Subscriber Net
Slide 11: Idea Revenue & EBITDA trends
Idea Revenue & EBITDA trends In Rs. Crs +2.3% -4.6% +3.2% +4.0% +14.0% +19.1% +4,395 +17.3% +5,051 +3,909 +22.6% +32.6% +37.5% +2,212 +2,406 +2,017 In $ Mn Rev 3,512 4,119 4,904 5,587 5,529 EBITDA 835 1,148 1,522 1,866 1,592 Internal Based on Idea standalone + 100% subsidiaries financials (FY16 & FY
Slide 12: Idea – Recent Financial Trending
Idea – Recent Financial Trending Rs Cr Rs Cr Cash Profit Net Profit Revenue EBITDA 10,000 9,487 9,300 2,521 8,663 2,700 8,126 8,166 1,941 2,200 7,000 1,700 1,228 1,249 1,200 961 700 497 4,000 200 4 3,095 2,837 2,192 2,120 1,875 -300 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 -800 -479 -430 1,000 -617 Q1FY17
Slide 13: Idea - Key Operating Trends
Idea - Key Operating Trends Paise Total Data Volume Data ARMB Billion Paise Billion 24 260 34.3 MOU Voice ARPM 36 250 21.1 252.8 33.1 34 220 18.7 240 250.7 19 32 15.9 29.6 231.4 190 220 30 209.8 160 11.5 14 200 25.9 28 199.3 195.5 24.4 26 130 180 9 24 100 5.4 160 127.0 22 93.1 107.4 108.8 70 4 140 2
Slide 14: Agenda
Indian Wireless Industry – Current Trends Idea Performance Way forward Idea – Vodafone (India) Merger Internal
Slide 15: Competitive Spectrum Footprint
Competitive Spectrum Footprint Pan India Mobile Broadband Spectrum (4G - 20 circles, 3G - 15 Circles) FDD TDD Broadband Carrier FDD (2x)* GSM (2G) Service Areas 900 1800 2100 Total 2300 2500 Total +TDD services 3G 4G Total Maharashtra 9.0 11.0 5.0 25.0 10.0 10.0 20.0 70.0 √ 2 5 7 Kerala 6.0 10.0 5.0
Slide 16: Building Capacity for Future
Building Capacity for Future 2G Cell Sites Broadband Sites (3G+4G) Optical Fibre Cable (OFC) 300,000 ~165-170K 180,000 160,000 144,600 250,000 140,000 115,500 ~145-150K 120,000 200,000 93,400 110,054 100,000 82,000 74,000 64,703 80,000 150,000 60,000 30,291 21,381 100,000 ~131-132K 40,000 17,140 126
Slide 17: Unlocking further value through tower assets
Unlocking further value through tower assets Own towers 11.15% stake1 Tenancy ratio 1.8x 2.4x 33,168 17,699 13,706 9,984 No. of Tenancies No. of Towers Strong monetisation potential from captive towers & Idea’s 11.15% Indus stake Internal 1. Proportionate number of tenancies based on Idea’s 11.15% s
Slide 18: Idea – Getting stronger in Digital Services
Idea – Getting stronger in Digital Services Own range of Digital Services Launched in FY17 Scheduled launch in FY18 Idea TV Idea News & Magazines Idea Storage Idea Chat Play in Payments space Digital Wallet Payments Bank • Aditya Birla Idea Payment Bank Ltd. received final banking license from RBI.
Slide 19: Agenda
Indian Wireless Industry – Current Trends Idea Performance Way forward Idea – Vodafone (India) Merger Internal
Slide 20: Creating the leading Indian mobile operator
Creating the leading Indian mobile operator (cont’d) Subs (mn) 196.3 211.9 408.2 328.0 123.4 Revenue** (bn) 332.1 424.3 756.4 641.4 44.5 RMS (Q1FY18) 18.9% 24.1% 43.0% 36.5% 2.5% CMS 16.5% 17.9% 34.4% 27.6% 10.4% (Jun 2017) # 3G / 4G circles 15 / 20 16 / 17 22 / 22 22 / 22 NA / 22 GSM / BB sites (‘0
Slide 21: Competitive revenue position across circles
Competitive revenue position across 21 circles Circle share Idea Vodafone Combined Idea RMS Vodafone Combined Circles in Industry RMS RMS RMS Rank RMS Rank Rank Revenue Maharashtra 8% 33.7% 26.0% 59.7% 1 2 1 Mumbai 6% 9.4% 37.6% 47.0% 4 1 1 JAMMU & Uttar Pradesh (East) 7% 14.0% 30.6% 44.6% 3 2 1 KAS
Slide 22: World's 2nd largest mobile telecom operator
World’s 2nd largest mobile telecom operator^: servicing ~400mn subscribers Circle share Idea Vodafone Combined Combined Idea CMS Vodafone Combined Circles in Industry CMS CMS EoP (Mn.) CMS Rank CMS Rank Rank Subscribers Maharashtra 8% 28.6% 21.0% 47.2 49.7% 1 2 1 Gujarat 6% 18.0% 28.0% 33.3 46.0% 2
Slide 23: Update on Merger
Update on Merger • Received unconditional approval from Competition commission of India on July 24, 2017. • Received conditional approval from Stock Exchanges/ SEBI on August 04, 2017. • Filled an application before National Company Law Tribunal for approval of merger on August 08, 2017. • Sharehold
Slide 24: Annexures
Annexures Internal 24
Slide 25: Shareholding
Internal Shareholding As on 30 June 2017 Indian Others, 11.86% Promoter Group, Foreign 42.39% Holding, 45.75% PROMOTERS’ HOLDING TOP 5 PUBLIC SHAREHOLDERS ADITYA BIRLA NUVO LIMITED 23.22% AXIATA INVESTMENTS 1 (INDIA) LTD. 12.89% BIRLA TMT HOLDINGS PRIVATE LIMITED 7.86% AXIATA INVESTMENTS 2 (INDIA) L
Slide 26: Idea 15 Service Areas – Core Strength
Idea 15 Service Areas – Core Strength • Own 2G, 3G and 4G spectrum in 8 Established Service Areas (Leadership) all 8 leadership service areas. RMS RMS Spectrum • Offer 3G & 4G services in all 8 Service Area Q1FY151 Q1FY181 Rank2 Profile Service Areas. ~41% of M. P. 37.7% 43.8% 1 2G/3G/4G • Owns 2 ca
Slide 27: Idea 7 New Service Areas - Emerging Opportunity
Idea 7 New Service Areas - Emerging Opportunity • Offer 4G services in 6 out of these Idea launched services during FY10 in 7 new service 7 service areas(except Kolkata). areas; combined RMS of 7.0%1 in Q1FY17 • Offer 3G services in all the 7 Idea won back 5 MHz spectrum in 1800 MHz frequency circle
Slide 28: Board Members
Restricted Board Members Mr. Kumar Mangalam Birla – Chairman (Non-Executive) Mr. Sanjeev Aga – Non -Executive Director Mr. Kumar Mangalam Birla is the Chairman of Idea and Aditya Birla Group. PIC Mr. Sanjeev Aga served as the Managing Director of Idea for the period He chairs the Boards of the m
Slide 29: Board Members
Restricted Board Members Mr. Arun Thiagarajan – Independent Director Mr. Arun Thiagarajan has served as a part-time Non-Executive Mr. Mohan Gyani – Independent Director Independent Chairman of ING Vysya Bank Limited. Mr. Thiagarajan was Mr. Mohan Gyani has a considerable telecommunication and GS
Slide 30: Management Team
Internal Management Team Deputy Managing Director, aged 61years o B.Tech. from IIT Delhi and Post Graduation from Indian Institute of Director-Operations, aged 57 years Management Ahmedabad with over 34 years of industry o around 29 years of experience spanning FMCG and Telecom. Held experience
Slide 31: Thanks
Internal Thanks