Reliance Communications Limited · NSE:RCOM
Reliance Communications — Investor Presentation (February 2012)
41 slides from Reliance Communications's investor presentation, February 2012
Slide 1: Reliance Communications Investor Presentation
Reliance Communications Investor Presentation February, 2012
Slide 2: Forward looking statements – Important Note
Forward looking statements – Important Note This presentation and the discussion that follows may contain “forward looking statements” by Reliance Communications Ltd (“RCOM”) that are not historical in nature. These forward looking statements, which may include statements relating to future results
Slide 3: Contents
Contents Reliance Communications – an integrated telco Wireless p Global Enterprise Home Ke takea Key takeaways a s Confidential 3 of 41
Slide 4: Journey so far
Reliance Communications Journey so far far…. FY 2009 to FY 2011 Mobile CDMA , GSM GSM, 3G 3G, Netconnect FY 2007 & FY 2008 3G FY 2005 & FY 2006 Globalcom FLAG Telecom, Vanco, Yipes, Falcon & NGN Mobile CDMA Service Enterprise IDC Mobile Infratel CDMA Service 200K slots; deepest backhaul Globalcom Di
Slide 5: Current position of our businesses
Reliance Communications Current position of our businesses #2 in India, #4 globally (single country), dual technology 3G license in 13 circles ((highest g number of circles by y single g Wireless operator) Pan India data leadership Largest global private submarine cable network network, blue
Slide 6: Strategy for focused and profitable growth
Reliance Communications Strategy for focused and profitable growth Address mass mobility market thru’ GSM with special focus on rural distribution ess Wirele Consolidate data market leadership with high ARPU 3G services & high speed datacards Increased revenue from new service streams (share o
Slide 7: Financial Highlights
Reliance Communications Financial Highlights Key Financial Parameters (Rs. Mn) Revenue EBITDA Net Profit 229,485 221,323231,076 93,050 90,816 60,449 81,989 54,011 190,678 78,205 46,550 144,683 57,208 31 637 31,637 107,664 24,762 13,457 4,438 FY06 FY07 FY08 FY09 FY10 FY11 FY06 FY07 FY08 FY09 FY10 FY1
Slide 8: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 8 of 41
Slide 9: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 1 150 Million Customer Base (December, 2011) 2 2 Dual Technology Advantage 3 3 Data Leadership ( 1x, EVDO, 3G) 4 4 Youth & Innovation Centric Brand 5 5 Focus on Quality of Minutes 3 All this with only 5 years of existence in industry, as compared to
Slide 10: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 1 150 Million Customer Base (December, 2011) 2 2 Dual Technology Advantage 3 3 Data Leadership ( 1x, EVDO, 3G) 4 4 Youth & Innovation Centric Brand 5 5 Focus on Quality of Minutes 3 All this with only 5 years of existence in industry, as compared to
Slide 11: Large and Healthy Customer Base
Wireless Business Large and Healthy Customer Base RCOM among top 2 players in India, generating over 1 bn Minutes / Day Industry Subscriber Net Additions Customer Market Share MTS, 1.7% Others, 2.3% ~889 Uninor, 4.1% ~747 Aircel, 6.9% 8 4 9 11 7 7 8 Bharti, 20 16 13 23 19 20 4.4% 19.7% Tata, 9.4% BS
Slide 12: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 1 150 Million Customer Base (December, 2011) 2 Dual Technology Advantage 3 3 Data Leadership ( 1x, EVDO, 3G) 4 4 Youth & Innovation Centric Brand 5 5 Focus on Quality of Minutes 3 All this with only 5 years of existence in industry, as compared to 1
Slide 13: Dual Technology Advantage
Wireless Business Dual Technology Advantage 24,000 Towns 600,000 Villages 1 Billion Indians Data Voice VAS 3G EVDO CDMA GSM Confidential 13 of 41
Slide 14: Widest Product Portfolio (Enhanced Data Offering)
Wireless Business Widest Product Portfolio (Enhanced Data Offering) Mobile Handheld Dongles / Tabs 3G HSPA CDMA HSD Voice CDMA GSM Data Video Wide options for Voice, Data & Video across CDMA & GSM platforms Confidential 14 of 41
Slide 15: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 1 150 Million Customer Base (December, 2011) 2 Dual Technology Advantage 3 3 Data Leadership ( 1x, EVDO, 3G) 4 4 Youth & Innovation Centric Brand 5 5 Focus on Quality of Minutes 3 All this with only 5 years of existence in industry, as compared to 1
Slide 16: Data Leadership: Leading the 2nd telecom revolution
Wireless Business Data Leadership : Leading the 2nd telecom revolution enabling “Wire Free” India Srinagar High speed data internet Number of towns 1,300 + Mobile internet Number of towns 20,000 + Imphal Porbandar Guntur Kanyakumari Number of High Speed Data offering towns increased from 65 to 1300
Slide 17: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 1 150 Million Customer Base (December, 2011) 2 Dual Technology Advantage 3 3 Data Leadership ( 1x, EVDO, 3G) 4 4 Youth & Innovation Centric Brand 5 5 Focus on Quality of Minutes 3 All this with only 5 years of existence in industry, as compared to 1
Slide 18: Youth & Innovation-centric Brand
Wireless Business Youth & Innovation Innovation-centric centric Brand Redefining Brand Positioning 3G Mobile Data 2G Mobile Own Innovation Establish Supremacy Instill Trust/ Reliability Always ahead in launching 3G propositions Enable the wirefree India Gain share in the GSM (devices, apps, content
Slide 19: 3G Focused Co-Marketing with Handset Partners
Wireless Business 3G Focused Co-Marketing Co Marketing with Handset Partners Nokia C7 Co-marketing LG Optimus 2X Nokia Ovi Exclusive Tie Up Confidential 19 of 41
Slide 20: Reliance 3G Tab
Wireless Business Reliance 3G Tab Confidential 20 of 41
Slide 21: 3G Mobile - Just 3G Vs Reliance 3G
Wireless Business 3G Mobile - Just 3G Vs Reliance 3G Key proposition “Switch to Reliance for the fastest 3G experience” Impact Property India v/s England Series, Presenting sponsorship of over 250 properties covering movies & sports Confidential 21 of 41
Slide 22: Youth-centric campaigns for Data & 2G Voice offerings
Wireless Business Youth-centric Youth centric campaigns for Data & 2G Voice offerings New TVC Campaigns “Its Its fast, fast are you ?” ? Mera Network Vs Tera Network Confidential 22 of 41
Slide 23: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 1 150 Million Customer Base (December, 2011) 2 Dual Technology Advantage 3 3 Data Leadership ( 1x, EVDO, 3G) 4 4 Youth & Innovation Centric Brand 5 5 Focus on Quality of Minutes 3 All this with only 5 years of existence in industry, as compared to 1
Slide 24: Quality of Minutes
Wireless Business Quality of Minutes 0.54 0.52 0 52 Operator 2 0.52 0.51 0.50 0.48 0.47 Operator 1 0.46 0.47 0.45 0.45 0.45 0.44 0.45 0.45 0.44 0 45 0.45 0.44 0.45 0.44 0.44 0.44 0.44 0.43 0.43 0.43 0.43 0.43 0.42 0.42 0.42 0.41 0 41 0.41 0.40 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
Slide 25: Financial Performance
Wireless Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 43,267 , 44,170 44,471 41 978 41,978 11,490 11,727 11,756 11,823 40,000 12,000 8,000 20,000 4,000 0 0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY11 1QFY12 2QFY12 3QFY12 EBITDA Margin 80% 60% 40% 26.6% 27.4% 27.1% 26 6% 26.6% 20% 0% 4QFY11
Slide 26: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 26 of 41
Slide 27: Global Enterprise Business Overview
Global Enterprise Business Overview Global Enterprise Business Carrier Enterprise Consumer Among Top 15 largest Leading Enterprise services 2.5 million retail international long distance provider in India customers in 14 carriers with over 15 billion Among the Top 6 Leader-board of countries
Slide 28: Carrier business: Global connectivity & assets
Global Enterprise Business Carrier business : Global connectivity & assets Own 277,000 RKms of optic fiber cable with landing points in 30 countries & world’s largest private undersea cable system spanning 65,000 Kilometers M Manage over 60,000 60 000 customer sites i iin 163 countries i through
Slide 29: Enterprise business: Enterprise Managed Network
Global Enterprise Business Enterprise business : Enterprise Managed Network Global Connectivity Global Network 60,000+ managed sites with reach in 160 countries and territories Metro Ethernet connectivity across 26 Metros outside India High Capacity Access Network customized to meet Customer D
Slide 30: Enterprise business: Biggest Data center player in India
Global Enterprise Business Enterprise p business : Biggest gg Data center p player y in India with more than 450,000 sq ft of space 18 (9 India; 9 Outside India) Data centers across the globe with more than 550,000 sq ft of facilities space Geographic redundancy Wide & complex application host
Slide 31: Consumer business: Calling services to 160+ countries
Global Enterprise Business Consumer business : Calling g services to 160+ countries across the globe Global Reach Innovative Product Suite Retail services in 14 countries including U.S, Canada, U.K., Australia, New Zealand, Hong K Kong, Si Singapore, F France, Canada, Spain, Belgium, Netherlands,
Slide 32: Global presence and strong customer base
Global Enterprise Business Global presence and strong customer base Over 2,100 enterprise and 2.5 million retail customer base outside India Over 200 carrier customers based on strong long term relationships with over 70% repeat Carrier orders; Particularly strong in Asia, the Middle East and
Slide 33: Financial Performance
Global Enterprise Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 51,663 35,000 31,389 50,000 30,000 40 000 40,000 2 000 25,000 30,000 20,000 22,916 23,353 23,516 15,000 20,000 10,000 5,643 5,694 5,694 10,000 5,000 0 0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY11 1QFY12 2QFY12 3QFY12 EBITDA Ma
Slide 34: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 34 of 41
Slide 35: Indian Cable & Satellite Market
Home Business Indian Cable & Satellite Market 200 180 18 160 20 22 140 26 120 33 41 110 Cable Dark 100 47 108 105 C& S 80 98 DTH 60 90 83 40 70 20 41 50 21 32 0 2 5 12 2007 2008 2009 2010 2011E 2012E 2013E Source : Industry y Estimates DTH penetration at ~20%% of TV homes; gaining momentum Confident
Slide 36: Reliance Digital TV (DTH)
Home Business Reliance Digital TV (DTH) Industry’s 1st offerings of its kind - All 250 channels in High Definition like quality Pioneering HD experience in India Pioneering DVR – “Watch when you want” Key service differentiators More channel choice Pure Digital g viewing g 8 Cinema cha
Slide 37: Digital TV Services: Complete suite of services
Home Business Digital TV Services: Complete suite of services BroadcastTV and Radio EPG / Mini EPG Mosaic Portal Information News Stock Entertainment Game VoD / MoD / PVR Karaoke / Photo Album Services Advertisments Interactive Promotion Dedicated Advertiser Location Messaging SMS / MMS Mail Polling
Slide 38: The Pillars of Growth
Home Business The 4 Pillars of Growth Content Reach and service 250+ channels 8,100 towns 8 exclusive movie channels in 2,000+ exclusive Reliance English, Hindi and other retail stores regional languages 24x7, 11 language Interactive features – Games, customer service Shopping, Kids, Sto
Slide 39: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 39 of 41
Slide 40: Drivers for future growth and shareholder value
Reliance Communications Drivers e s for o future u u eggrowth o and a dsshareholder a e o de value a ue Drivers Impact Tower transaction: Deleveraged Balance Received offers from several interested parties sheet Proceeding on track and is at advanced stage Peak investment phase over: RCOM co
Slide 41: Thank you
RELIANCE Thank you
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