Slide 1: Reliance Communications Investor Presentation
Reliance Communications Investor Presentation August, 2011
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 37
Slide 4: Journey so far
Reliance Communications Journey so far far…. FY 2009 to FY 2011 FY 2007 & FY 2008 Mobile CDMA , GSM, 3G, Netconnect Globalcom FY 2005 & FY 2006 FLAG Telecom Telecom, Vanco, Vanco Yipes, Falcon & NGN Mobile CDMA Service Enterprise IDC Globalcom Mobile FLAG Telecom, Vanco, Infratel CDMA Service Yipes
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, blue-chip Gl
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 37
Slide 9: Industry outlook: India's growing mobile market
Wireless Business Industry outlook : India’s India s growing mobile market India, the world’s fastest growing & second biggest mobile market, has fifteen telecom service providers. Industry Subscriber Net Additions Customer Market Share 846 Others, 2.6% MTS, 1.4% 11 Uninor, 3.1% 16 13 629 20 Aircel,
Slide 10: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Dual technology advantage 2 Data leader (3G + HSD / EVDO) 3 143 Million customer base 3G License winner in 13 circles 4 (All 900 Mhz circles covered) 5 Integrated Telco with segmented play All this with only 7 years of existence in industry as compa
Slide 11: Unbeatable choice and value proposition
Wireless Business India s billion people can now expect an unbeatable India’s choice and value proposition across…. 1. Coverage 2. Customer choice 3 Product & Service innovations 3. 4 4. Distribution & Reach Unmatched customer proposition Confidential 11 of 37
Slide 12: Coverage
Wireless Business Coverage 24,000 Towns 600,000 Villages 1 Billion Indians Voice Data VAS CDMA GSM Seamless coverage wherever you go Confidential 12 of 37
Slide 13: Coverage: 3G license in 13 circles
Wireless Business Coverage : 3G license in 13 circles Won 13 circles with a spend of Rs. 8,585cr Geographical mix of top 3 metros, 4 “B” circles & 6 “C” circles Marginal capex for 3G upgrade on our EDGE GSM network 2G Circles Ci l 2G + 3G Circles Delhi & Mumbai Nationwide EVDO/ 3G footprint; Pan-Ind
Slide 14: Launched 3G within 100 days of receiving the spectrum
Wireless Business Coverage g : Launched 3G within 100 days y of receiving g the spectrum 3G services kick off in 3 key metros of Mumbai, Delhi & Kolkata and city of Chandigarh on 13th December, 2010 Currently, 3G services are available in 333+ cities & towns Confidential 14 of 37
Slide 15: Coverage: High Speed Data (HSD) in 800+ towns
Wireless Business Coverage : High Speed Data (HSD) in 800+ towns Competitive differentiation Fastest internet broadband (High Speed Data) service in India’s top 800+ cities & towns Seamless handover & connectivity through CDMA 1X i over 20K ttowns in Wide reach compared to limited reach of wir
Slide 16: Customer Choice
Wireless Business Customer Choice Mobile Handheld Dongles 3G HSPA CDMA HSD Voice CDMA GSM Data Video Wide options for Voice, Data & Video across CDMA & GSM platforms Confidential 16 of 37
Slide 17: Product & Service innovations: Reliance 3G Tab
Wireless Business Product & Service innovations: Reliance 3G Tab Android 2.3 Reliance 3G Network (Gingerbread) Fully Featured Phone SMS, MMS, and FM Radio 7 inch Thin Film Transistor (TFT) capacitive multi-touch multi touch screen Dual camera (front and rear) Photographs & Video Recording Wi-Fi & Bl
Slide 18: Product & Service innovations
Wireless Business Product & Service innovations Group Talk Tune Maker Simply Music Nokia Life Tools Bubbly (voice twitter) App Store Location Based Services WAP Portal Confidential 18 of 37
Slide 19: Distribution & Reach
Wireless Business Distribution & Reach World-class design , fit out & ambience at 2 000 exclusive retail showrooms on High 2,000 streets/Malls High quality reach & national footprint through 5,000 distributors & 900,000 retailers 5 000+ Direct & indirect outbound sales 5,000+ force to cater to
Slide 20: Financial Performance
Wireless Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 41 613 41,613 41 978 41,978 43,267 , 40 644 40,644 12 101 12,101 11,792 11,727 11,490 40,000 12,000 8,000 20,000 4,000 0 0 2QFY11 3QFY11 4QFY11 1QFY12 2QFY11 3QFY11 4QFY11 1QFY12 EBITDA Margin 80% 60% 40% 29.1% 29.0% 27.1% 27 4
Slide 21: Revenue Per Minute (RPM) trend
Wireless Business Revenue Per Minute (RPM) trend Change 2Q‘10 3Q’10 4Q‘10 1Q'11 2Q'11 3Q’11 4Q’11 1Q’12 over last 8 Qtrs. Player y 1 0.56 0.52 0.47 0.45 0.44 0.44 0.43 0.43 -23.2% Player 2 0.56 0.51 0.47 0.44 0.42 0.42 0.41 0.41 -26.8% RCOM 0.47 0.45 0.44 0.44 0.44 0.44 0.44 0.44 -6.4% 0.60 Revenue
Slide 22: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 22 of 37
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: Financial Performance
Global Enterprise Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 51,663 50,000 35,000 31,389 30,000 40 000 40,000 25,000 30,000 20,000 22,916 20,000 15,000 10,000 10,000 5,643 5,000 0 0 4QFY11 1QFY12 4QFY11 1QFY12 EBITDA Margin 70% 60% 60.8% 50% 40% 30% 20% 24.6% 10% 0% 4QFY11 1QFY1
Slide 30: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 30 of 37
Slide 31: 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 32: 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 33: 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 34: 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 35: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise Home Key takeaways Confidential 35 of 37
Slide 36: Drivers for future growth and shareholder value
Reliance Communications Drivers for future growth and shareholder value Drivers Impact Reliance Infratel transaction: RCOM received formal indicative offers Deleveraged Balance from several interested parties. Currently, the transaction is proceeding sheet on track and is at advance stage Peak i
Slide 37: Thank you
RELIANCE Thank you