Slide 1: Investor Presentation cover letter to exchanges
ADITYA BIRLA February 19, 2016 National Stock Exchange of India Limited Bombay Stock Exchange Limited “Exchange Plaza’, Phiroze Jeejeebhoy Towers, Bandra - Kurla Complex, Dalal Street, Bandra (E), Mumbai — 400 001 Mumbai — 400 051 Email: cmlist@nse.co.in Email: corp.relations@bseindia.com Dear Sirs,
Slide 2: Idea Cellular Limited Investor Presentation
IDEA CELLULAR LIMITED INVESTOR PRESENTATION Restricted
Slide 3: Idea Cellular – An Overview
Restricted Idea Cellular – An Overview Pan India Pure Play Wireless Operator - Voice + Data Holds 16%^ (2G+3G*+4G**) shareholding in Indus (thru ABTL). No. 3 Additionally own 9,640 Operator in India with towers 18.5% RMS(1) 170,060 (2G+3G+4G) Serving ~ 182 million sites and ~105,600km subscribers(2)
Slide 4: Since Inception, as Idea Grew & Evolved
Restricted Since Inception, as Idea Grew & Evolved It Re-invented itself Thrice 2011 – 2015 2006 – 2010 1997 1998 – 2005 Upgraded to 3G Services & Expanded to 8 Single Promoter Started with 2 added 4G Spectrum Service Areas Service Areas Became a Pan India 3-Way JV From No.3 to Mobile Service Provid
Slide 5: India Telecom Sector Backdrop
Restricted India Telecom Sector Backdrop Growth Drivers Competition Regulatory Voice Top 3 operators garnered 72.8%(3) of TRAI issued regulation on prohibition Indian Active subscriber penetration Indian Mobile revenue market share of discriminatory tariff for data services (measured on VLR) at 71.7
Slide 6: Indian Wireless Sector – Revenue Trend
Indian Wireless Sector – Revenue Trend Sector Quarterly Gross Revenue (INR bn) Idea – Highest Revenue Market Share (RMS) improvement Idea has grown ~2.0x faster than industry over last 4 years [4.1% RMS increase in last 3 years] Industry Idea Rs bn 473.7 RMS, 444.9 81.5% 450.0 401.6 371.3 RMS, 375.0
Slide 7: Industry & Idea - Subscriber Trends
Restricted Industry & Idea - Subscriber Trends In Millions Rural Subs Urban Subs Rural Penetration Urban Penetration 1200.0 200.0% • Subscriber (subs) growth in India to continue as 1000.0 162.8% 146.9% the VLR subs penetration is still at 71.7% 150.0% 800.0 577.8 • Primarily new subscriber addition
Slide 8: Idea – The fastest growing Indian Telco
Restricted Idea – The fastest growing Indian Telco Now One Amongst the Top 3 in Incremental Revenue Market Share RMS IRMS Q2’12-’16 FY12-15 FY14-15 31.0% 30.4% 31.2% 30.3% 30.0% Telco 1 33.2% 32.5% [ +1.2% ] 23.3% 23.1% Telco 2 23.0% 26.6% 24.4% 22.0% 22.1% [ +1.1% ] 18.5% Idea 17.2% [ +4.5% ] 27.3%
Slide 9: Idea 15 Service Areas – Core Strength
Restricted Idea 15 Service Areas – Core Strength Idea offers 3G services on its own spectrum in all its 8 8 Established Service Areas (Leadership) Leadership Service Areas and RMS RMS Spectrum Service Area Rank2 launched its 4G services in 5 Q2FY131 Q2FY161 Profile service areas during Dec’15- Keral
Slide 10: Idea 7 New Service Areas - Emerging Opportunity
Restricted Idea 7 New Service Areas - Emerging Opportunity Idea launched services during FY10 in 7 new service areas; combined RMS of 6.2%1 in Q2FY16 Idea won back 5 MHz spectrum in 1800 MHz frequency auction in Nov’12 (6.25 MHz in West Bengal) in these service areas (post cancellation of licenses b
Slide 11: Idea Improved Spectrum Profile
Restricted Idea Improved Spectrum Profile post Feb’14 and Mar’15 Auction Current Spectrum Profile (in MHz) Capability to Offer Circles 1800 1800 900 2100 Total GSM 3G LTE 3G GSM LTE Maharashtra 9.0 4.0 5.0* 5.0 23.0 • Idea won own 3G spectrum in 13 Kerala 6.0 10.0 5.0 21.0 service area
Slide 12: Mobile Data – The Next Opportunity
Restricted Mobile Data – The Next Opportunity 319 Million Internet users Penetration: 31.7% 300 Mn Another 300 Million 580 Mn+ Wireless Internet users users to adopt Penetration 30.6% Digital Services 881 Mn Indians on Mobile 93 Million Voice Indian Mobile Broadband (VLR subs) – Penetration of users
Slide 13: Idea – Growing Data Business
Restricted Idea – Growing Data Business Strong Data Volume Growth (bn MB) Improving Data Adoption Tota Data Subs 2G+3G+4G(mn) 3G Data Subs Data Subs (% of EoP) 3G Data Volume 2G Data Volume Data Subs (mn) % 81.0 48 28.0% 42 24.1% 22.7% 23.0% 27.4 36 19.1% 19.8% 41.4 46.1 30 34.2 7.2 mn 18.0% 24 net
Slide 14: Idea - The Indus & Tower Advantage
Restricted Idea - The Indus & Tower Advantage Indus Provides passive tower infrastructure services in 15 service areas Indus Leading independent tower company in the world with around 117,579 towers and tenancy ratio of 2.22 (as of September 30, 2015) Top 3 Indian Mobile Operators are promotor of In
Slide 15: Idea - Key Operating Trends
Restricted Idea - Key Operating Trends Realized Rate per Minute Minutes of Use on Network Paisa Billion 48.0 700 46.3 683.4 46.0 600 44.9 44.8 * 587.8 584.4 44.0 43.3 500 532.1 498.4 400 453.1 42.0 41.1 300 362.6 40.0 200 38.0 100 Q3FY12 Q3FY13 Q3FY14 Q3FY15 Q3FY16 0 ARPM US FY11 FY12 FY13 FY14 FY15
Slide 16: Idea - Quarterly Financial Trending (Consolidated)
Restricted Idea - Quarterly Financial Trending (Consolidated) INR Bn Growth in Revenue INR Bn Growth in EBITDA 100 90.1 35 EBITDA EBITDA% 80.2 31.3 37% 80 30 66.1 27.5 55.8 25 34.3% 60 50.3 20.5 34.7% 32% 20 31.0% 40 15 13.1 14.6 10 27% 20 26.1% 5 26.2% 0 0 22% Q3FY12 Q3FY13 Q3FY14 Q3FY15 Q3FY16* Q3
Slide 17: Idea - Annual Financial Trending (Consolidated)
Restricted Idea - Annual Financial Trending (Consolidated) Rs bn Growth in Revenue Rs bn Growth in EBITDA % 350 125 EBITDA EBITDA% 38% 315.7 35.5% 34.2% 36% 300 34% 265.2 100 108.1 31.3% 32% 250 265.0 94.1 224.6 30% 75 82.9 195.4 26.6% 28% 200 231.5 25.8% 77.5 26% 50 59.8 24% 150 50.4 22% 25 20% 100
Slide 18: Key Financial Ratios
Restricted Key Financial Ratios (1) Investment Efficiency Capex (2) to Revenue ratio INR bn Free Cash Flow (FCF) As of Dec 31, 2015 (Rs bn) USD bn 48 43.5 Gross Block+ CWIP 963.2 14.5 Value of Spectrum 517.4 7.8 40 22% Other Assets 445.8 6.7 32 27.6 [$656 mn] 18.5% 19% 24 19.4% [$416 mn] 14.7% 16 11
Slide 19: Appendix
Restricted Appendix 18
Slide 20: Recent Financial Trends
Restricted Recent Financial Trends INR bn Growth in Revenue INR bn Growth in EBITDA 108.1 110 Voice Revenue Data Revenue Other Revenue 100 330 26.8 275 19.1% 90 30.4% 45.4 82.9 24.2 220 18.1% 23.1 Total Revenue 80 26.0 12.2 Total Revenue 165 70 59.8 38.8% 110 243.6 60 186.4 217.9 55 16.9% 11.8% 50 0
Slide 21: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Wide Cellular Network o Covers ~ 974 mn Indians, network extended to ~383,000 Towns & Villages on GSM as well as covers ~340 mn Indians on 3G and 4G. o ~105,600 km of Fiber & ~6,360 2G+3G fibre POPs serve as data network backbone o Earnest drive to redu
Slide 22: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Growing Data Business o ~ 41.4 Million data users on 2G EDGE, 3G HSPA and 4G LTE services o ~21.2 Million subscribers use 3G mobile data out of ~171.9 Million total subscriber base o ~55 Mn Idea subscribers own 3G devices but only 27.6 mn use 3G platfor
Slide 23: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Strong IT Processes & Support o Modern Prepaid Vtop-Up system & Pan-India Postpaid billing system BSCS IX o Large Siebel based pan-India Prepaid and Postpaid CRM deployment o High emphasis on sales automation through advanced Dealer Sales Mgmt. applicat
Slide 24: Idea – Some Recent Awards & Recognitions
Restricted Idea – Some Recent Awards & Recognitions Corporate Awards oIdea Cellular awarded as the winner of the prestigious India Business Leader Awards (IBLA) by CNBC, for the category ‘Outstanding Company of the Year’ oAmity Corporate Excellence Award 2015 for “Customer Connect and Engagement in
Slide 25: Idea Brand Philosophy
Restricted Idea Brand Philosophy Transforming Indian consumers’ life through Mobile Telephony 24
Slide 26: Shareholding
Restricted Shareholding As on 31 Dec’15 Indian Others, 7.05% Promoter Group, Foreign 42.24% Holding, 50.71% PROMOTERS’ HOLDING TOP 5 PUBLIC SHAREHOLDERS ADITYA BIRLA NUVO LIMITED 23.27% AXIATA INVESTMENTS 1 (INDIA) LTD. 12.91% BIRLA TMT HOLDINGS PRIVATE LIMITED 7.88% AXIATA INVESTMENTS 2 (INDIA) LTD
Slide 27: Aditya Birla Group
Restricted Aditya Birla Group Our Businesses Our Brands Agri Business Carbon Black Acrylic Fibre Cement Chemicals Financial services Insulators IT/ITes Metals & Mining Pulp & Fibre Retail Solar Trading Textile & Apparel Telecom A leading business conglomerate and one of the India’s most respected
Slide 28: Board Members
Restricted Board Members Mr. Kumar Mangalam Birla – Chairman (Non-Executive) Mr. Arun Thiagarajan – Independent Director Mr. Kumar Mangalam Birla is the Chairman of Idea and Aditya Birla Group. Mr. Arun Thiagarajan is currently a part-time Non-Executive Independent He chairs the Boards of the ma
Slide 29: Board Members
Restricted Board Members Mr. R.C. Bhargava – Independent Director Mr. Sanjeev Aga – Non -Executive Director Mr. R.C Bhargava served in Indian Administrative Services and has held Mr. Sanjeev Aga served as the Managing Director of Idea for the period the post of Joint Secretary in the Ministry of
Slide 30: Management Team
Restricted Management Team Chief Financial Officer, aged 52 years o CA and Licentiate CS with over 27 years of industry experience Deputy Managing Director, aged 59 years o Joined ABG in August 1986 at Grasim. Worked with ABG in o B.Tech. from IIT Delhi and Post Graduation from Indian Institute
Slide 31: Glossary
Restricted Glossary Definitions/ S. No. Description/Full Form Abbreviation Is Incremental Revenue Market Share (RMS), calculated as change in absolute revenue for Idea divided by change in absolute 1 Incremental RMS revenue for Industry during the relevant period Incremental VLR Is Incremental Visit
Slide 32: Thank You
Thank You ADITYA BIRLA GROUP