Reliance Communications Limited · NSE:RCOM
Reliance Communications — Investor Presentation (August 2013)
41 slides from Reliance Communications's investor presentation, August 2013
Slide 1: Reliance Communications Investor Presentation August 2013
Reliance Communications Investor Presentation August, 2013
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 New Opportunities for monetising the assets K takeaways Key t k Confidential 3 of 41
Slide 4: Reliance Communications: A Fully Integrated Telco
Reliance Communications Reliance Communications : A Fully Integrated Telco Global and Wireless RCOM Enterprise Wireless Voice and Data Submarine cable (FLAG) GSM Vanco CDMA 3G Yipes Multi tenancy towers Internet Data Center (IDC) Broadband Optical Fiber Cable Full suite of tele
Slide 5: Business built on Leadership & Scale
Reliance Communications Business built on Leadership & Scale Wireless Dual Technology Advantage (GSM + CDMA) Pan India Voice and Data network 3G license in 13 circles (highest number of circles by single operator) Data leadership (3G, (3G HSD & 1x) – Widest footprint of wireless broadband
Slide 6: Financial Highlights
Reliance Communications Financial Highlights Consolidated Revenue* (Rs. Mn) Consolidated EBITDA* (Rs. Mn) 250,000 221,323 231,076 100,000 90,816 217,780 203,823 78,205 200 000 200,000 71,591 71 591 75,000 64,899 150,000 50,000 100,000 25,000 50,000 0 0 FY' 10 FY' 11 FY' 12 FY' 13 FY' 10 FY' 11 FY' 1
Slide 7: Contents
Contents Reliance Communications – an integrated telco Wireless p Global Enterprise New Opportunities for monetising the assets K takeaways Key t k Confidential 7 of 41
Slide 8: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 8 of 41
Slide 9: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 9 of 41
Slide 10: Widest Coverage – Pan India presence
Wireless Business Widest Coverage – Pan India presence 24,000 Towns 600,000 Villages 1 Billion Indians Data Voice VAS 3G HSD CDMA GSM Confidential 10 of 41
Slide 11: Distribution & Reach
Wireless Business Distribution & Reach 900 exclusive flagship retail showrooms on High g streets/Malls with world class design g & layout High quality reach & national footprint through 5,000 distributors & over 1 mn retailers Di Dimensioned i d to t handle h dl over 35 mn sales l transactions
Slide 12: 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 12 of 41
Slide 13: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 13 of 41
Slide 14: 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 (3G, HSD) Number of 3G towns 333 Number of HSD towns ~1,000 Total high speed ~1,300 internet towns towns Imphal Porbandar Mobile internet (1X , EDGE) Guntur 3G circles:
Slide 15: Driving the entire Data eco-system
Wireless Business Driving the entire Data eco eco-system system Worry-free billing & tariffs with ‘My Best Plan’ Enablingg device ecosystem through proprietary tab & partner handsets Signed marquee partnership with Google on Android to drive data Several S&D initiatives to expand usage on mobile dev
Slide 16: World class Device and Apps partnerships
Wireless Business World class Device and Apps partnerships Enter into strategic partnerships to enhance device ecosystem and providing easy access to social networking Confidential 16 of 41
Slide 17: 3G Data speed @ 2G rates
Wireless Business 3G Data speed @ 2G rates Affordability = Data democratisation Breaks ‘Entry Barrier’ to help every Indian adopt p 3G RCOM’s Built for Video network to d li deliver superior i 3G experience i Aim to get 40% share of smart- phone market Future is 3G and RCOM is driving the ch
Slide 18: Wireless Data KPIs
Wireless Business Wireless Data KPIs Non-voice as % of Total Revenue No. of 3G Active Subscriber (Mn.) 25% 9.0 20.8% 20.9% 21.0% 21.3% 7.7 8.0 7.2 6.8 20% 17 3% 17.3% 17 4% 17.4% 17 3% 17.3% 70 7.0 6.1 64 6.4 16.8% 6.0 5.2 15% 4.8 15.6% 16.0% 5.0 4.0 5.5 14.6% 15.2% 5.1 4.0 10% 4.1 3.0 3.7 2.0 5% 10
Slide 19: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 19 of 41
Slide 20: 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 21: 3G | The 'Blue Bot' campaign
Wireless Business 3G | The ‘Blue Blue Bot’ Bot campaign Confidential 21 of 41
Slide 22: 3G Mobile - Thrust on Social Networking
Wireless Business 3G Mobile - Thrust on Social Networking Build traction of data usage through social media sites Confidential 22 of 41
Slide 23: Strengths of Wireless Business
Wireless Business Strengths of Wireless Business 1 Widest Coverage and Product Portfolio 2 Data Leadership ( 3G, High Speed Data & 1x) 3 Youth & Innovation Centric Brand 4 Focus on Quality of Minutes All this with only 6 years in industry, vs. 15+ years for competition Confidential 23 of 41
Slide 24: Quality of Minutes
Wireless Business Quality of Minutes Rate Per Minute (RPM) 0.54 0.52 0.52 0.51 0.50 0.48 0.47 0.47 0 46 0.46 0 45 0.45 0.45 0.44 0.45 0.45 0.45 0 45 0.45 0.46 0.45 0.44 0.44 0.44 0.45 0.44 0.44 0.44 0.44 0.44 0.44 0.43 0.44 0.44 0.44 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.42 0.43 0.42 0.42 0.42 0 42 0
Slide 25: Financial Performance
Wireless Business Financial Performance Revenue (Rs. Mn) EBITDA (Rs. Mn) 60,000 14,000 13,142 12,060 12,334 11,791 50,000 45,154 46,263 48,162 12,000 44,222 10,000 40,000 8,000 30,000 6,000 20,000 4,000 10,000 2,000 , 0 0 2Q FY13 3Q FY13 4Q FY13 1Q FY14 2Q FY13 3Q FY13 4Q FY13 1Q FY14 EBITDA Margin
Slide 26: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise New Opportunities for monetising the assets 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 carrier 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 550,000 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) 30,000 6,000 5,642 5,674 5,686 24,332 24,539 24,657 5,178 25,000 22,996 , 5,000 20,000 4,000 15,000 3,000 10,000 2,000 5,000 1,000 0 0 2Q FY13 3Q FY13 4Q FY13 1Q FY14 2Q FY13 3Q FY13 4Q FY13 1Q FY14 EBITDA Margin 40% 3
Slide 34: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise New Opportunities for monetising the assets Key takeaways Confidential 34 of 41
Slide 35: RCOM & Reliance Jio framework of business co-operation
New Opportunities for monetising the assets RCOM & Reliance Jio committed for a comprehensive p framework of business co-operation Reliance Jio RCOM Infocomm Tower Sharing I t Inter-city it Fiber Fib Intra-city Fiber* Other areas of * In discussion co-operation RCOM continue to sweat the assets and
Slide 36: Asset utilisation: Tower sharing agreement
New Opportunities for monetising the assets Asset utilisation: Tower sharing agreement Nation-wide tower infrastructure sharing agreement with Reliance Jio Infocomm 45,000 tower (Ground based + Rooftop) to be shared Aggregate value of Rs. 12,000 Cr. during th tenure the t off agreementt RCOM
Slide 37: Asset utilisation: Inter-city fiber sharing agreement
New Opportunities for monetising the assets Asset utilisation: Inter Inter-city city fiber sharing agreement RCOM’s 120,000 Kms. of Inter-city fiber optic network to be utilised by Reliance Jio Infocomm Deal value of approx. Rs. 1,200 crore as one time indefeasible right to use (IRU) fees RCOM
Slide 38: Unlocking value: De-merger of Real Estate
New Opportunities for monetising the assets Unlocking value: De De-merger merger of Real Estate In-principal approval on a demerger of the Real Estate held by RCOM into a separate unit Reliance Properties Ltd. will be a separate listed Company All shareholders of RCOM will receive fully tradab
Slide 39: Contents
Contents Reliance Communications – an integrated telco Wireless Global Enterprise New Opportunities for monetising the assets 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 Peak investment in estment phase o over: er RCOM contin continues es to Increase revenue be free cash flow positive. This trend to continue in generating ability succeeding years
Slide 41: Thank you
RELIANCE Thank you
Reliance Communications — Investor Presentation (August 2013) on 6ix