Slide 1: Idea Cellular Limited Investor Presentation
IDEA CELLULAR LIMITED INVESTOR PRESENTATION Restricted
Slide 2: Idea Cellular – An Overview
Restricted Idea Cellular – An Overview Pan India Pure Play Wireless Operator - Holds 16%^ Voice + Data shareholding in (2G+3G*+4G**) Indus (thru ABTL) No. 3 and additionally Operator in India own 9,532 towers with 18.7% RMS(1) 149,196 (2G+3G) sites and Serving ~ 166 million ~95,100km of OFC subscrib
Slide 3: 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 Capability Service Areas Service Areas Became a Pan India 3-Way JV From No.3 to Mobile Service Prov
Slide 4: India Telecom Sector Backdrop
Restricted India Telecom Sector Backdrop Growth Drivers Competition Regulatory Voice Top 3 operators garnered 73.4%(3) of IUC for domestic calls reduced from Indian Active subscriber penetration Indian Mobile revenue market share 20p/min to 14p/min, (No IUC for (measured on VLR) at 69.9% (~881 (“RMS
Slide 5: Indian Wireless Sector – Revenue Trend
Restricted 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 [3.8% RMS increase in last 3 years] Industry Idea RMS, 479.0 81.3% 450.2 450.0 409.2 373.0 RMS,
Slide 6: Subscriber Trends
Restricted Subscriber Trends In Millions Rural Subs Urban Subs Rural Penetration Urban Penetration • Subscriber (subs) growth in India to 1200.0 200.0% continue as the VLR subs penetration is still 1000.0 162.8% 144.3% at 69.9% 563.0 150.0% 800.0 595.9 525.3 532.7 555.7 • Primarily new subscriber ad
Slide 7: Idea – The fastest growing Indian Telco
Restricted Idea – The fastest growing Indian Telco Now One Amongst the Top 3 RMS IRMS Q1’12-’16 FY12-15 FY14-15 30.8% 31.1% 31.3% 30.8% 30.1% Telco 1 33.2% 32.5% [ +0.6% ] 23.3% 23.2% 23.3% Telco 2 22.5% 26.6% 24.4% 21.7% [ +1.7% ] 18.7% Idea 17.1% [ +4.8% ] 27.3% 29.7% 16.2% 14.9% 13.9% 9.1% [ -1.8
Slide 8: 15 Service Areas – Strength
Restricted 15 Service Areas – Strength 8 Established Service Areas (Leadership) Owns 3G Spectrum in all ‘8 RMS RMS Spectrum Service Area Rank2 Leadership Service Areas’ Q1FY131 Q1FY161 Profile and ability to launch LTE in Kerala 33.1% 41.6% 1 2G/3G/4G 40.8% of 6 service areas India M.P. 33.3% 41.2%
Slide 9: 7 New Service Areas - Opportunity
Restricted 7 New Service Areas - Opportunity Launched services during FY10; combined RMS of 5.9%1 in Q1FY16 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 license by Supreme Court) Won 3G Spectrum (2100 MHz) in J
Slide 10: Improved Spectrum Profile - post Feb’14 and Mar’15 Auction
Restricted 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 GSM LTE 3G Maharashtra 9.0 4.0 5.0* 5.0 23.0 • Idea won 3G spectrum in Kerala 6.0 10.0 5.0 21.0 Delhi (900 MHz - Feb’1
Slide 11: Mobile Data – The Next Opportunity
Restricted Mobile Data – The Next Opportunity 302 Million Internet users Penetration: 30.3% 283 Mn Another 283 Million 580 Mn+ Wireless Internet users users to adopt Digital Services 863 Mn Indians on Mobile 83 Million Voice Mobile Broadband (VLR subs) – Penetration of users – 8.6% of 68.7% wireless
Slide 12: Idea – Growing Data Business
Restricted Idea – Growing Data Business Strong Data Volume Growth (mn MB) Improving Data Adoption Data Subs (mn) 3G Data Subs Data Subs as % to Total subs 3G Data Volume 2G Data Volume 62,677 28.0% 24.7% 36 37.2 23.0% 26,646 30 20.0% 30.9 22.9% 24 27.9 18.0% 32,516 15.6% 18 16,797 18.3 13.0% 13,791
Slide 13: Idea Competitive in 4G 1800/800 MHz Landscape
Restricted Idea Competitive in 4G 1800/800 MHz Landscape Total # of Industry Idea Rev. 4G/LTE spectrum in 1800 MHz band players* Rev. (%) (%) No LTE Operator - 4 Circles (BHR, JK, UPE, UPW) - 16.7% 16.2% Only Idea 4G/LTE (1800MHz) spectrum - 1 Circle (HAR) 1 2.1% 3.3% Idea + 1 Competitor - 3 Circles
Slide 14: The Indus Advantage
Restricted The Indus Advantage Provides passive infrastructure services in 15 service areas Leading independent tower company in the world with around 116,454 towers and tenancy ratio of 2.21 (as of June 30, 2015) Combined revenue market share of three shareholders is 73.4%(1) Idea benefits by reduc
Slide 15: Key Operating Trends
Restricted Key Operating Trends Realized Rate per Minute Minutes of Use on Network Paisa Billion 46.0 45.1 700 44.5 683.4 43.7 600 44.0 587.8 500 532.1 42.0 41.2 453.1 41.0 400 300 362.6 40.0 195.8 200 165.2 38.0 100 Q1FY12 Q1FY13 Q1FY14 Q1FY15 Q1FY16 ARPM US 0 Cents 0.64 0.65 0.69 0.71 0.70 FY11 FY
Slide 16: Quarterly Financial Trending (Consolidated)
Restricted Quarterly Financial Trending (Consolidated) INR Bn Growth in Revenue 88.0 INR Bn Growth in EBITDA 80 75.6 35 EBITDA EBITDA% 32.3 37% 65.4 30 55.0 25.0 36.7% 60 25 45.2 20.5 33.1% 32% 20 31.4% 40 15 14.1 12.0 10 27% 20 26.6% 5 25.6% 0 0 22% Q1FY12 Q1FY13 Q1FY14 Q1FY15 Q1FY16* Q1FY12 Q1FY13
Slide 17: Annual Financial Trending (Consolidated)
Restricted Annual Financial Trending (Consolidated) INR Bn Growth in Revenue 315.7 INR Bn Growth in EBITDA 300 125 EBITDA EBITDA% 36% 265.2 108.1 34% 250 224.6 100 34.2% 32% 195.4 200 30% 155.0 82.9 150 75 28% 31.3% 59.8 26% 100 24.5% 50.4 50 26.6% 24% 38.0 25.8% 50 22% 25 20% 0 FY11 FY12 FY13 FY14
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 June 30, 2015 (Rs bn) USD bn 48 Gross Block+ CWIP 646.3 10.14 38.3 30% 40 Value of Spectrum 233.0 3.66 22.6% Other Assets 413.3 6.48 32 27.2 [$601 mn] 18.5% 24 20% 14.7% [$426 mn] 1
Slide 19: Appendix
Restricted Appendix 19
Slide 20: Recent Financial Trends
Restricted Recent Financial Trends INR bn Growth in Revenue INR bn Growth in EBITDA Other Revenue 110 108.1 Voice Revenue Data Revenue 330 100 19.1% 26.8 30.4% 275 90 45.4 82.9 18.1% 24.2 Total Revenue 220 23.1 80 26.0 Total Revenue 12.2 165 70 38.8% 59.8 110 186.4 243.6 60 217.9 55 16.9% 11.8% 50 V
Slide 21: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Wide Cellular Network o Covers ~ 950 mn Indians, network extended to ~371,000 Towns & Villages on GSM. o ~ 95,100 km of Fiber & ~5,300 2G+3G fibre POPs serve as data network backbone o Earnest drive to reduce carbon footprint – solar-powered cell sites,
Slide 22: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Growing Data Business o ~ 37.2 Million data users on 2G EDGE and 3G HSPA services o ~16.4 Million subscribers use 3G mobile data out of ~162.1 Million subscriber base o Idea’s own current range of ‘Idea Smartfones’ starting at USD $90 (INR 5400) o ~42 M
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 oAmity Corporate Excellence Award 2015 for “Customer Connect and Engagement in Telecom sector” oIdea Cellular, voted by Investor as one of India’s Best Companies in a Poll conducted by Finance Asia. Idea appeared in 5 out of 6 cate
Slide 25: Idea Brand Philosophy
Restricted Idea Brand Philosophy Transforming Indian consumers’ life through Mobile Telephony 25
Slide 26: Shareholding
Restricted Shareholding As on 30 June’15 Indian Others, 6.67% Promoter Group, Foreign 42.26% Holding, 51.07% PROMOTERS’ HOLDING TOP 5 PUBLIC SHAREHOLDERS ADITYA BIRLA NUVO LIMITED 23.28% AXIATA INVESTMENTS 1 (INDIA) LTD. 12.92% BIRLA TMT HOLDINGS PRIVATE LIMITED 7.88% AXIATA INVESTMENTS 2 (INDIA) LT
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