Reliance Communications Limited · NSE:RCOM

Reliance Communications — Investor Presentation (February 2017)

36 slides from Reliance Communications's investor presentation, February 2017

  1. Slide 1: Investors' Presentation February 2017

    Investors‟ Presentation February 2017

  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 Migration to 4G LTE Successfully Completed Pan India 4G LTE Services Launched at Minimal Capex & Opex Consolidation of Wireless Business with SSTL and Aircel Deleveraging Strategy Under Execution Stronger RCOM post Corporate Transactions Slide 3

  4. Slide 4: Contents

    Contents  Indian Telecom Scenario  RCOM – Growth Strategy  Corporate Transactions – SSTL & Aircel Merger, Tower Sale  RCOM – Post Transactions  Financial Information

  5. Slide 5: RCOM leading the Consolidation Wave in the Industry

    RCOM leading the Consolidation Wave in the Industry Sector consolidation to usher in medium to long term pricing stability Competitive Landscape Earlier Competitive Landscape Now 11 5 Operators Operators  Hyper competition led to low tariffs, impacting viability  Top 5 operators account for >90% o

  6. Slide 6: Growth Era in Consumption of Digital Data

    Growth Era in Consumption of Digital Data Indian Data Subscribers – A Very Large Opportunity  Wireless remains the primary Population : means of data access in India 1.25 bn Total Telecom  Negligible wire line broadband Subs: >1 bn infrastructure in the country, now being augmented as a part of 2G

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

    4G adoption will be 5x faster than 3G Factors for Higher Adoption – Comparison of industry-wide status at the time of launch of services 1. Cost of Device: entry level price • 3G : $ 225 • 4G : $ 45 2. Network • 3G : 10% population coverage with poor indoor coverage  Average speeds of 2 ~ 3 Mbps du

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

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

  9. Slide 9: Contents

    Contents  Indian Telecom Scenario  RCOM – Growth Strategy  Corporate Transactions – SSTL & Aircel Merger, Tower Sale  RCOM – Post Transactions  Financial Information

  10. Slide 10: RCOM's Spectrum Advantage – for Indoor Coverage

    RCOM‟s Spectrum Advantage – for Indoor Coverage Incumbent Incumbent Incumbent 1 2 3 800Mhz   1800Mhz      2300Mhz    2500Mhz   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 Sl

  11. Slide 11: 800/850MHz: The In-Building Champion

    800/850MHz : The In-Building Champion  800/850 MHz Spectrum 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 800Mhz Spectrum - Better in-building Signal Strength Slide 11

  12. Slide 12: Spectrum and Network Sharing Agreements with Jio

    Spectrum and Network Sharing Agreements with Jio  Nationwide Spectrum Sharing Arrangements Completed  Shared spectrum arrangements to yield spectral efficiency advantage  RCOM‟s access to Jio‟s state-of-the-art 4G network  Ample spectrum in 18 circles* :  >=10MHz in 11 circles and 8.75MHz in 7

  13. Slide 13: Ubiquitous & State-of-the-Art 4G Network

    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 13

  14. Slide 14: RCOM Ready To Serve The Internet Generation

    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 14

  15. Slide 15: RCOM Strategy To Protect and Grow Subscriber Base

    RCOM Strategy To Protect and Grow Subscriber Base 1 Unlimited Voice 2 3 Discounted Aggressive Tariffs 4G Data Slide 15

  16. Slide 16: RCOM Strategy To Protect and Grow Subscriber Base

    RCOM Strategy To Protect and Grow Subscriber Base 1 2 3 INR 149 Product with INR 19 Product with INR 0.20 INR 99 product offering 1 GB unlimited on-net calls and for all calls 4G data 300 MB 4G Data  Target Segment  Target Segment  Target Segment  Voice Users  Migrants  Youth / College Student

  17. Slide 17: "Reliance 4G" Content Led Offerings

    “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’ based Data Plans GBs + GBs movies music games mobile TV  RCOM offers a wide range of content - movies, mu

  18. Slide 18: Contents

    Contents  Indian Telecom Scenario  RCOM – Growth Strategy  Corporate Transactions – SSTL & Aircel Merger, Tower Sale  RCOM – Post Transactions  Financial Information

  19. Slide 19: SSTL Merger - Overview

    SSTL Merger - Overview  RCOM to acquire SSTL‟s operating wireless business  RCOM to acquire most valuable and superior 800 / 850 SSTL Coverage Circles MHz band DL UP-W RJ  RCOM to extend validity of 800 / 850 MHz band GJ WB spectrum in 8 key circles KO  Consideration to be paid in RCOM stock and

  20. Slide 20: Aircel Merger – Overview

    Aircel Merger– 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 rank amongst the top operators in

  21. Slide 21: Aircel Merger – Overview...contd.

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

  22. Slide 22: Aircel Merger – Spectrum Capability

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

  23. Slide 23: Tower Sale – Business Overview

    Tower Sale – 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

  24. Slide 24: Tower Sale – Key Highlights

    Tower Sale – Key Highlights  RCOM signed Definitive Agreements with Brookfield for sale of its Telecom Towers Business  RCOM will receive an upfront cash payment of ~INR 11,000 crore (~US$ 1.7 bn) from the proposed transaction  RCOM will also enjoy 49% future economic upside in the towers busines

  25. Slide 25: Contents

    Contents  Indian Telecom Scenario  RCOM – Growth Strategy  Corporate Transactions – SSTL & Aircel Merger, Tower Sale  RCOM – Post Transactions  Financial Information

  26. Slide 26: RCOM – Post Transactions

    RCOM – Post Transactions B2B Business B2C Business Enterprise  Fiber To The Home business  Data Centers  Office Centrex  Broadband  MPLS and VPN  Domestic Leased Line  Business Internet  Direct To Home (DTH) business Carrier Business  NLD Data  National OFC Network  Cash flows of remainin

  27. Slide 27: India Enterprise Business: Overview

    India Enterprise Business: Overview  Operations in 180 cities in India, 1.1mn+ buildings connected directly to network, serves nearly 1.2mn access lines  Integrated ICT player with a comprehensive product range of 38+ enterprise voice, data, video, internet and IT infrastructure services  Our ent

  28. Slide 28: Data Center Business: Overview

    Data Center Business: Overview Scalability Reliability & Security Connectivity  Largest footprint of Data  Tier III+ Data Center and  Network Operations Center Centers across India with ~1.1 redundancies in all critical (NOC) million sq.ft of gross data  Two Centralized NOCs equipments center sp

  29. Slide 29: Optical Fiber Cable Business: Overview

    Optical Fiber Cable Business : Overview National Footprint of Connected Buildings  Access to Buildings and households  Headroom in Fiber, Duct infra to create further capacities  RCOM has an extensive fiber operation setup being managed by Ericsson  The fiber network has one of the best availabi

  30. Slide 30: GCX Business: Overview

    GCX Business: Overview  One of the leading global data communications service providers with one of the largest global subsea cable and terrestrial networks  Owned Subsea cable systems with a total length of 68,698 route kilometres and landed at 46 landing stations in 27 countries  Scalable globa

  31. Slide 31: Strengths of RCOM Business Post-Transactions

    Strengths of RCOM Business Post-Transactions Nationwide network with 190k Km optical fibre and 1.1mn sq ft data centre space – one of the largest among the private players Deleveraged balance sheet providing value for Asset Light Business shareholders & lenders Leading global data Stake in consolida

  32. Slide 32: Contents

    Contents  Indian Telecom Scenario  RCOM – Growth Strategy  Corporate Transactions – SSTL & Aircel Merger, Tower Sale  RCOM – Post Transactions  Financial Information

  33. Slide 33: Results – 2Q FY17 and 3Q FY17 (Snapshot)

    Results – 2Q FY17 and 3Q FY17 (Snapshot) Key Financials Qtr ending Qtr ending Qtr ending Qtr ending In INR crore In US$ Mn Sep 2016 Dec 2016 Sep 2016 Dec 2016 Particulars 2Q FY17 3Q FY17 Particulars 2Q FY17 3Q FY17 Revenue 5,142 4,922 Revenue 772 725 EBITDA 1,542 1,206 EBITDA 231 177 EBITDA margin 3

  34. Slide 34: Results – 2Q FY17 and 3Q FY17 (Performance Review)

    Results – 2Q FY17 and 3Q FY17 (Performance Review) Q-o-Q Performance Review  Revenue & Profitability: Q-o-Q down due to- • Unprecedented competitive intensity • First full quarter post shutdown of profitable CDMA business • Increase in amortisation and interest expense aggregating INR 278 crore (US

  35. Slide 35: Thank You

    RELIANCE Thank You

  36. Slide 36: 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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