Slide 1: Idea Cellular Limited Investor Presentation
IDEA CELLULAR LIMITED INVESTOR PRESENTATION Restricted
Slide 2: India Telecom Sector Backdrop
Restricted India Telecom Sector Backdrop Growth Drivers Competition Regulatory Voice Top 3 operators garnered 71.8%(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 68.7% (~863 (“RMS
Slide 3: Idea Cellular – An Overview
Restricted Idea Cellular – An Overview Pan India Pure Play Wireless Operator - Holds 16%^ Voice + Data shareholding in (2G+3G*+4G**) No.6 Ranked Indus (thru ABTL) Operator in the and additionally World by own 9,557 towers Subscribers (1) 142,658 (2G+3G) sites and Serving ~ 158 million ~93,400km of O
Slide 4: Indian Wireless Sector – Revenue Trend
Restricted Indian Wireless Sector – Revenue Trend Sector Quarterly Gross Revenue (INR bn) Idea – Steady Revenue Market Share (RMS) improvement Idea has grown ~1.8x faster than rest of the industry combined over last 4 years Industry Idea RMS, 470.9 81.8% 450.0 426.3 387.5 RMS, 375.0 361.7 18.2% Q4FY
Slide 5: Subscriber Trends
Restricted Subscriber Trends Rural Subs Urban Subs Rural Penetration Urban Penetration In Millions 163% 141% 140% 143% • Subscriber (subs) growth in India to continue as the VLR subs penetration is still at 68.7% 596 525 533 556 • Primarily new subscriber additions are from Rural India. Idea leads t
Slide 6: 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 7: Idea – The fastest growing Indian Telco
Restricted Idea – The fastest growing Indian Telco Now One Amongst the Top 3 RMS IRMS Q4’11-’15 FY12-15 FY14-15 30.5% 30.4% 29.9% Telco 1 30.1% 29.2% 33.4% 32.6% [ +0.3% ] 23.4% 23.2% Telco 2 22.7% 23.0% 26.7% 24.4% 21.4% [ +1.8% ] 18.2% Idea 16.6% [ +4.6% ] 27.4% 29.8% 15.7% 15.0% 13.6% 9.8% 8.6% T
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’ Q4FY121 Q4FY151 Profile 40.9% of and ability to launch LTE in Kerala 33.7% 39.7% 1 2G/3G/4G India 6 service areas Mobility M.P. 31.
Slide 9: 7 New Service Areas - Opportunity
Restricted 7 New Service Areas - Opportunity Launched services during FY10; combined RMS of 5.6%1 in Q4FY15 Won 3G Spectrum (2100 MHz) in J&K (May 2010) and Kolkata (March 2015) Acquired 5 MHz spectrum in 1800 MHz frequency auction in Nov’12 (6.25 MHz in West Bengal) in these service areas (post can
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 • Idea expanded its 3G Maharashtra 9.0 4.0 5.0* 5.0 23.0 presence to Delhi (Feb’14) Kerala 6.0 10.0 5.0 21.0 a
Slide 11: The Indus Advantage
Restricted The Indus Advantage Provides passive infrastructure services in 15 service areas Leading independent tower company in the world with around 115,900 towers and tenancy ratio of 2.19 (as of March 31, 2015) Combined revenue market share of three shareholders is 71.8%(1) Idea benefits by redu
Slide 12: Mobile Data – The Next Opportunity
Restricted Mobile Data – The Next Opportunity 833 Mn Indians on Mobile Voice (VLR subs) 267 Mn Indians have Internet Access 249 Mn of them on Mobile Internet 584 Mn waiting to be connected… ….with Low Fixed Line Penetration, Mobile Internet is the Only Access to Internet – Their Ticket to the Digita
Slide 13: Idea – Growing Data Business
Restricted Idea – Growing Data Business With 87% of Revenue Coverage by Data Spectrum, Idea is Competitively Placed to Capture The Data Opportunity Strong Data Volume Growth (mn MB) Improving Data Adoption Overall Data volume growing >100% for last two years Data Subs (mn) 3G Data Subs Data Subs as
Slide 14: Idea Revenue and Cost Per Minute
Restricted Idea Revenue and Cost Per Minute(1) 64.5 Gross Rev / Min (paise) Opex / Min (Pre-EBITDA) (paise) 65 60 55 53.0 50 45.8 44.5 45 46.8 42.4 42.6 41.5 40 8.6 14.2 12.4 40.0 (20.3%) (27.8%) (30.9%) 35 33.8 33.2 30 31.9 32.1 31.6 Change -1.7% 25 FY 09 FY 10 FY 11 FY 12 FY 13 FY14 FY15 Cost per
Slide 15: Key Operating Trends
Restricted Key Operating Trends Realized Rate per Minute Minutes of Use on Network Paisa Billion 44.8 700 44.5 43.6 683.4 600 42.2 42.5 587.8 41.2 500 532.1 40.6 40.5 453.1 400 362.6 38.5 300 Q4FY11 Q4FY12 Q4FY13 Q4FY14 Q4FY15 ARPM US 200 Cents 0.65 0.67 0.66 0.70 0.72 FY11 FY12 FY13 FY14 FY15 VAS a
Slide 16: 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 17: Quarterly Financial Trending (Consolidated)
Restricted Quarterly Financial Trending (Consolidated) INR Bn Growth in Revenue 84.2 INR Bn Growth in EBITDA 80 EBITDA EBITDA% 30.6 70.4 30 37% 60.6 60 53.7 24 36.4% 22.3 42.3 32% 18 16.7 31.6% 40 13.7 12 10.8 27.6% 27% 20 6 25.5% 25.5% 0 0 22% Q4FY11 Q4FY12 Q4FY13 Q4FY14 Q4FY15 Q4FY11 Q4FY12 Q4FY13
Slide 18: Key Financial Ratios
Restricted Key Financial Ratios (1) Investment Efficiency Capex (2) to Revenue ratio Free Cash Flow (INR bn) (3) As of Mar 31, 2015 (Rs bn) USD bn 48 30% Gross Block+ CWIP 609.3 9.73 38.3 40 22.6% Value of Spectrum 210.7 3.37 32 27.2 [$ 612 mn] 18.5% Other Assets 398.5 6.37 20% 24 14.7% [$434 mn] 13
Slide 19: Idea FY15 Performance
Restricted Idea FY15 Performance YoY Consolidated (Rs mn)* FY14 FY15 Growth (%) Gross Revenue 2,65,189 3,15,709 19.1% EBITDA 82,921 1,08,118 30.4% EBITDA Margin (%) 31.3% 34.2% 3.0% Capex** 39,812 42,040 5.6% EBITDA-Capex** 43,109 66,078 53.3% Gross Block+CWIP 6,26,390 6,69,612 6.9% KPI Summary Subs
Slide 20: Appendix
Restricted Appendix 20
Slide 21: 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 22: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Wide Cellular Network o Covers ~ 77% of all India Population extended to ~364,000 Towns & Villages on GSM network. o ~ 93,400 km of Fiber & 5,000 2G+3G fibre POPs serve as data network backbone o Earnest drive to reduce carbon footprint – solar-powered
Slide 23: Idea – Key Capabilities & Strengths
Restricted Idea – Key Capabilities & Strengths Growing Data Business o ~ 33.4 Million data users on 2G EDGE and 3G HSPA services o ~18.7 Million subscribers use 3G services out of ~157.8 Million overall subscriber base o Idea’s own current range of ‘Idea Smartfones’ starting at USD $90 (INR 5400) o
Slide 24: 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 25: 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 26: Idea Brand Philosophy
Restricted Idea Brand Philosophy Transforming Indian consumers’ life through Mobile Telephony 26
Slide 27: Shareholding
Restricted Shareholding As on 31 March’15 Indian Others, 6.49% Promoter Group, Foreign 42.27% Holding, 51.24% 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) L
Slide 28: 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 29: 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 30: 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 31: Management Team
Restricted Management Team Chief Financial Officer, aged 51 years o CA and Licentiate CS with over 27 years of industry experience Deputy Managing Director, aged 58 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 32: 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 33: Thank You
Thank You ADITYA BIRLA GROUP