Reliance Communications Limited · NSE:RCOM

Reliance Communications — Investor Presentation (October 2016)

35 slides from Reliance Communications's investor presentation, October 2016

  1. Slide 1: Investors' Presentation October 2016

    Investors’ Presentation October 2016

  2. Slide 2: Reliance Communications: Overview

    Reliance Communications : Overview Leading integrated telecommunications operator in India with presence across wireless, enterprise, broadband, pass ive infrastructure, and DTH Leading global data Pan-India operator with long communications business dated spectrum offering under GCX, with sub-sea v

  3. Slide 3: RCOM @ Transformational Stage

    RCOM @ Transformational Stage CDMA Upgradation to 4G LTE completed Pan India 4G LTE Services at Minimal Capex & Opex Consolidation of Wireless Business with SSTL and Aircel Deleveraging Strategy Cutting-edge Cloud Capabilities Slide 3

  4. Slide 4: Contents

    Contents  Indian Telecom Scenario  RCOM – 4G LTE Growth Strategy  SSTL Merger  Aircel Merger  Deleveraging  Financial Information

  5. Slide 5: RCOM leading consolidation in the Industry

    RCOM leading consolidation in the Industry Reduced Competition with sector consolidating... Competitive landscape Earlier Competitive Landscape Now 11 5 Operators Operators Over capacity led to low  Top 5 operators account for ~85% of the tariffs, making business revenue market share unviable  Reg

  6. Slide 6: Growth in consumption of digital services

    Growth in consumption of digital services… India data subs - a very large opportunity  Wireless remains the primary means of data Population : access in India 1.2bn Telecom Subs:  Negligible wire line 1bn broadband infrastructure in the country Data subs: 322m 3G subs  Only 14% of total wireless

  7. Slide 7: 4G adoption expected to be 5x faster than 3G

    4G adoption expected to be 5x faster than 3G… Factors for Higher Adoption of 4G 1. Cost of Entry: Device ASP at launch • 3G : $ 225 • 4G : $ 45 2. Network • 3G : 10% population coverage with poor indoor coverage  Average speeds of 2 ~ 3 Mbps due to poor backhaul • 4G : ~80% population coverage with

  8. Slide 8: Making India leapfrog from 2G to 4G

    … Making India leapfrog from 2G to 4G Digital Lifestyle Content and Services Technology Slide 8

  9. Slide 9: 4G LTE Success belongs to an Operator With..

    4G LTE Success belongs to an Operator With.. Right Spectrum Ubiquitous & 1 For Indoor Coverage 2 State-of-the-Art Network Serving The Internet 3 Generation Slide 9

  10. Slide 10: Contents

    Contents  Indian Telecom Scenario  RCOM – 4G LTE Growth Strategy  SSTL Merger  Aircel Merger  Deleveraging  Financial Information

  11. Slide 11: Right Spectrum – for Indoor Coverage

    1 Right Spectrum – for Indoor Coverage Incumbent Incumbent Incumbent 1 2 3 800Mhz   1800Mhz      2300Mhz    800Mhz Spectrum with one of the Largest 4G network in the country & one of the largest globally RCOM‟s Distinct Advantage – 800Mhz Spectrum + Network Coverage Slide 11

  12. Slide 12: 800/850MHz: The In-Building Champion

    800/850MHz : The In-Building Champion Can penetrate deep indoors where over 75% of data consumption happens 800/850 band is to 4G era, what 900 band was for 2G era RCOM Others Slide 12

  13. Slide 13: Jio Sharing Agreements

    Jio Sharing Agreements 800/850 MHz Holding Cat Circles RCOM * R Jio SSTL Combined M Delhi 5.00 3.75 8.75 M Mumbai 6.25 5.00 11.25  Nationwide Spectrum Sharing M Kolkata 5.00 3.75 8.75 A Andhra Pradesh 5.00 5.00 Arrangement Completed A Gujarat 6.25 3.75 10.00 A Karnataka 5.00 3.75 8.75 A Maharashtra

  14. Slide 14: Ubiquitous & State-of-the-Art 4G Network

    2 Ubiquitous & State-of-the-Art 4G Network …  One of the largest network globally, at launch, with pop coverage ~80%  ~18,000 cities and  ~2,00,000 villages  Network with Macro cells and Small cells, and IBS backed by fiber network over 250,000 Kms Strong Backhaul Capacity Slide 14

  15. Slide 15: … with Individual Core Network

    … with Individual Core Network …  Latest network technology - Multi Operator Core Network  Tremendous capex savings for RCOM  ICR arrangements to access 1800 MHz and 2300MHz bands RCOM Core Common RAN Jio Core Slide 15

  16. Slide 16: … and Common RAN Network

    … and Common RAN Network Single MIMO can work across frequency bands  Superior RAN network using EnodeB which provides superior spectrum efficiency capacity and peak data rates with extremely low latency  Allows both operators to combine their spectrum and improve the carrying capacity thereby pro

  17. Slide 17: RCOM Ready To Serve The Internet Generation

    3 RCOM Ready To Serve The Internet Generation Old Way RCOM Way Voice + Data + VAS plan   Single Recharge Only connectivity plans   Content + Connectivity Physical channels   Electronic and Online Paper based forms   e-KYC Call centers   Instant multi-channel support Slide 17

  18. Slide 18: RCOM's 4G Strategy – Content Led Offerings

    RCOM’s 4G Strategy – “Reliance 4G” Content Led Offerings  RCOM to offer content services as the market moves from “dumb data” to more “smart data based plans” „Smart Pipe‟ based Data Plans + From today‟s „Dumb Pipe‟ GBs based Data Plans GBs movies music games mobile TV  RCOM offers a wide range of

  19. Slide 19: RCOM's 4G Strategy – MOVINET

    RCOM’s 4G Strategy – MOVINET – Multiplex on Mobile  Movies and Music are the key drivers in digital content consumption  Content-driven Data Strategy  Zero Subscription access to 8000 Movies + 50000 Music Videos + 35 Lac Sound Tracks  The product is available for both Prepaid & Postpaid subscrib

  20. Slide 20: Contents

    Contents  Indian Telecom Scenario  RCOM – 4G LTE Growth Strategy  SSTL Merger  Aircel Merger  Deleveraging  Financial Information

  21. Slide 21: SSTL Merger With RCOM – Overview

    SSTL Merger With RCOM – Overview  RCOM to acquire ~8 mn customers including ~2 mn data customers and revenues of ~Rs 1500 crore ($230m) annually DL UP-W  RCOM to acquire most valuable and superior 800 / RJ 850 MHz band GJ WB  RCOM to extend validity of 800 / 850 MHz band KO spectrum in 8 circles

  22. Slide 22: SSTL Acquisition – Approvals and Completion Status

    SSTL Acquisition – Approvals and Completion Status  The Members of the Company have duly approved the Scheme  SSTL shareholders have approved  CCI (Competition Commission of India) approval received  Stock Exchanges Scheme approval Received  Rajasthan & Mumbai High Court approvals received  Aw

  23. Slide 23: Contents

    Contents  Indian Telecom Scenario  RCOM – 4G LTE Growth Strategy  SSTL Merger  Aircel Merger  Deleveraging  Financial Information

  24. Slide 24: RCOM Wireless Business Merger With Aircel – Overview

    RCOM Wireless Business Merger With Aircel – Overview  Wireless business of RCOM to be combined with Aircel Ltd. through court approved process of demerger  RCOM and Maxis Communications Berhad (MCB) to hold 50% each in „MergedCo‟ with equal representation on board and committees  MergedCo to clea

  25. Slide 25: RCOM Wireless business Merger with Aircel – Overview

    RCOM Wireless business Merger with Aircel – Overview  Transaction will reduce RCOM debt by Rs 20,000 crore (US$3 bn) or over 40% of total debt  MergedCo to rank among top corporates in India with assets of Rs 65,000 crore (US$9.7 bn) and net worth of Rs 35,000 crore (US$5.2 bn)  NPV of capex and

  26. Slide 26: RCOM + SSTL + Aircel – Combined RMS (%)

    RCOM + SSTL + Aircel – Combined RMS (%) No. of Combined RMS* Combined Circle Rank Name of Circles Circles (%) Assam, Himachal Pradesh, Jammu & Kashmir, 2nd 5 25% North East & Tamil Nadu Delhi, Kolkata, Mumbai, Madhya Pradesh, 3rd 7 14% Orissa, Rajasthan, West Bengal AP, Bihar, Gujarat, Haryana, Karn

  27. Slide 27: RCOM + SSTL + Aircel – Combined Spectrum Holding

    RCOM + SSTL + Aircel – Combined Spectrum Holding 800/850 MHz Spectrum Holding (MHz) 900 MHz Spectrum Holding (MHz) 192.5 116.4 76.4 61.25 59 31 Combined Entity * Tata Combined Bharti Vodafone Idea Entity * Combined Entity holding including shared spectrum with Jio 1800 MHz Spectrum Holding (MHz) 210

  28. Slide 28: RCOM + SSTL + Aircel – Spectrum Capability

    RCOM + SSTL + Aircel – Spectrum Capability 3G – in 18 circles 4G – Pan-India capability 2100 MHz 3G Spectrum (No. of Circles)  Pan India 4G capable spectrum in 800/850 18 13 MHz band  All Metros, A and B Circles have 5 MHz+ Spectrum in 1800 MHz band for possible RCOM Combined Entity 4G rollout in

  29. Slide 29: Contents

    Contents  Indian Telecom Scenario  RCOM – 4G LTE Growth Strategy  SSTL Merger  Aircel Merger  Deleveraging  Financial Information

  30. Slide 30: Sale of Tower Assets

    Sale of Tower Assets Attractive Industry Dynamics 1 Data to fuel telecom / tower sector growth 2 Increasing focus on quality of service 3 Traffic offloading to micro sites New roll-outs on 2100/2300/2500 MHz bands by telecom 4 operators New BTS technology to create headroom for additional 5 tenancie

  31. Slide 31: Tower Business – Overview

    Tower Business – Overview Key Highlights Largest standalone tower portfolio in India with a single controlling 1 shareholder 2 Best positioned passive infrastructure player 3 GBT Heavy Tower Portfolio – Higher Tenancies and Better Range 4 High quality cell sites built to support tenancies upto 4x an

  32. Slide 32: Contents

    Contents  Indian Telecom Scenario  RCOM – Growth Strategy  4G Strategy  SSTL Merger  Aircel Merger  Deleveraging  Financial Information

  33. Slide 33: Financial Snapshot – Latest quarterly performance

    Financial Snapshot – Latest quarterly performance India Business performance ($ Mn) Qtr ended Qtr ended Y-on-Y Q1 FY17: Gross Revenue Particulars Growth (%) 30-06-15 30-06-16 INR based breakdown Gross Revenue 756.0 695.0 -2.5%  Voice : 65% Net Revenue 611.7 551.0 -4.4%  Non Voice : 31% EBITDA 268.

  34. Slide 34: Thank You

    RELIANCE Thank You

  35. Slide 35: Disclaimer

    Disclaimer This presentation has been prepared by Reliance Communications Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or d

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