Slide 1: Idea Cellular Limited Investor Presentation
Idea Cellular Limited Investor Presentation
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 385 374.4 372.7 377.2 Others Idea 363.6 353.2 55.8 Others 55.8 53.4 350 331.9 335.8 54.4 85.3% 316.7 50.8 315 304.4 46.0 46.9 43.1 318.7 319.3 321.4 40.6 302.4 309.2 280 Idea 285.9 288.9 273.
Slide 4: Idea – An Overview
Idea – An Overview A pan India 2G-GSM service provider. Provide 3G services in 20 service areas. Third largest operator in India, by Mobility Revenues# and VLR subscribers. Minutes on network ~ 1.44 bn per day (Q3FY13), placing it among the top 10 operators globally Leads the industry, in terms of a
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 ~73% of Idea’s revenue ~ 58% 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 34.2% 1 M.P. 33.3% 1 Maharashtra 27.3% 1 UP (W) 27.0% 1 Haryana 22.3% 2 Punjab 20.8% 2 Gujarat 18.1% 2 A.P. 18.9% 2 Karnataka 9.4% 4 Total 22.6% 2 # 1 Player # 2 Player Improved combine
Slide 7: 1800 MHz Operations (6 Service Areas)
1800 MHz Operations (6 Service Areas) Emerging Stronger – Ranked #3 Revenue Mkt Share 1 Service Area Rank 2 (RMS) UPE 12.2% 3 Rajasthan 11.0% 3 Delhi 10.9% 3 Bihar 9.9% 4 H.P. 9.1% 5 Mumbai 8.4% 5 Total 10.4% 3 1Based on gross revenue for Q3FY13, as released by TRAI & Company estimates 2Based on rev
Slide 8: 1800 MHz Operations (7 New Service Areas)
1800 MHz Operations (7 New Service Areas) Focus On Optimisation, Not Maximisation In Nov’12 1800 MHz spectrum auction Idea acquired 5 MHz (6.25 MHz in West Bengal) of liberalized spectrum (can be used for 2G,3G or 4G) in these service areas, for 20 years for an amount of Rs. 19.9 bn. Leverage synerg
Slide 9: 3G Footprint
3G Footprint Idea launched 3G services in 10 service areas, out of 11 service areas where it won 3G spectrum Having 15,545 3G sites in these service areas (Q3FY13) Launched 3G services under roaming arrangements for the service areas of Mumbai, Bihar, Karnataka, Rajasthan, West Bengal, Delhi, Kolkat
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 ) Pan India Footprint Market power to drive new business: Ranked #1 or #2, in 8 out Leverage synergies of scale and of 11 service areas, where it won 3G Cover ~48% of national revenue footprin
Slide 11: The Indus Advantage
The Indus Advantage Provides passive infrastructure services in 15 service areas Largest independent tower company in the world with more than 111,200 towers Indus Share Holding Indus benefits from assured tenancy from promoters (combined revenue market share of ~67%*), apart from other operators Id
Slide 12: Idea – A Power Brand
Ek doosre ko samajhne ke liye telephone exchange. What an idea! Idea Rings All India What a network! the language barrier. What an idea! New idea Internet search forlearning gl ' tee, Sie smartfone Share every moment Idea 3G Smartphone Aurus with video calling. Android 2.3 | Dual SIM | Free 3G benef
Slide 13: World Class Operations and Cost Management
World Class Operations and Cost Management Paisa Revenue (INR bn) Minutes (bn) ARR* Pre-EBITDA Cost/Min Operational Cost/Min** (Pre- EBIT) 43.3 132.2 44 136 130.9 124.0 125.6 114.0 42.2 41 41.2 41.3 41.1 102 40.0 39.6 38.8 38.7 38 38.3 68 55.4 53.5 56.1 50.7 54.0 35 33.9 33.8 34 32.5 32.5 32 32.5 0
Slide 14: Strong Balance Sheet to Support Strategic Intent
Strong Balance Sheet to Support Strategic Intent Q4 Q4 Q4 Q3 INR Million FY10 FY11 FY12 FY13 Gross Debt 65,264 105,575 120,957 134,447 Cash & Equivalent 14,005 13,902 1,406 17,624 Net Debt 51,259 91,673 119,550 116,822 Net Worth 114,101 122,767 129,077 140,204 Cash Profit 7,657 9,031 10,135 11,085 F
Slide 15: Shareholding
Shareholding As on 31st Dec’12 Indian Others, 8.5% Promoter Foreign Group, 45.9% Holding, 45.6% PROMOTERS’ HOLDING TOP 5 SHAREHOLDERS ADITYA BIRLA NUVO LIMITED 25.3% TMI MAURITIUS 14.0% P5 ASIA INVESTMENTS (MAURITIUS) 10.0% BIRLA TMT HOLDINGS PVT LTD 8.6% AXIATA INVESTMENTS 2 (INDIA) LTD. 5.9% HINDA
Slide 16: Appendix
Appendix
Slide 17: Key Trends - 1 (Quarterly)
Key Trends - 1* (Quarterly) Gross Revenue EBITDA 60 Rs bn 14.00 Rs bn 13.2 55.4 56.1 12.9 54.0 13.00 12.6 55 53.5 50.7 12.0 12.1 12.00 50 YoY Growth 45 10.8% 11.00 YoY Growth 9.9% 40 10.00 35 9.00 30 8.00 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Cash Profits Su
Slide 18: Key Trends – 2 (Quarterly)
Key Trends – 2* (Quarterly) Minutes of use on Network (QoQ) Realized rate per minute 135 130.9 132.2 paisa bn - Minutes 45.00 43.3 125.6 42.2 124.3 41.2 41.3 41.1 125 40.00 114.0 115 35.00 105 30.00 95 25.00 85 75 20.00 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13
Slide 19: Financial Matrix (Standalone)
Financial Matrix (Standalone)* Robust Growth in Top Line Robust Growth in EBITDA 200 196.8 50 INR bn INR bn 45.2 175 165.0 45 156.4 150 40 38.7 125 121.4 35 33.3 30.5 99.7 30 27.5 100 25 22.7 75 67.4 20 50 15 25 10 0 5 FY08 FY09 FY10 FY11 FY12 9m FY13 FY08 FY09 FY10 FY11 FY12 9m FY13 Robust Growth i
Slide 20: Financial Matrix (Consolidated)
Financial Matrix (Consolidated)* Robust Growth in Top Line Robust Growth in EBITDA 200 195.4 55 INR bn INR bn 50.9 175 164.0 50 155.0 150 45 43.3 125 124.5 40 37.9 101.5 100 35 34.1 75 67.4 30 28.4 50 25 22.7 25 20 0 15 FY08 FY09 FY10 FY11 FY12 9m FY13 FY08 FY09 FY10 FY11 FY12 9m FY13 Robust Growth
Slide 21: Thank You
Thank You ADITYA BIRLA GROUP