RCOM Investor Ppt May09

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    Reliance Communications

    Investor Presentation

    May 2009

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    Forward looking statements Important NoteThis 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 futureresults of operation, financial condition, business prospects, plans and objectives, are

    based on the current beliefs, assumptions, expectations, estimates, and projections of

    the directors and management of RCOM about the business, industry and markets in

    which RCOM operates. These statements are not guarantees of future performance, andare subject to known and unknown risks, uncertainties, and other factors, some of which

    are beyond RCOMs control and difficult to predict, that could cause actual results,

    performance or achievements to differ materially from those in the forward looking

    statements. Such statements are not, and should not be construed, as a representationas to future performance or achievements of RCOM. In particular, such statements

    should not be regarded as a projection of future performance of RCOM. It should be

    noted that the actual performance or achievements of RCOM may vary significantly

    from such statements.

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    Contents

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

    Enterprise

    Home

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    Home

    DTH (Big TV) IPTV (Digital Home)

    Enterprise

    Internet Data Center

    Broadband Leased Line Office Centrex MPLS & VPN WiMax

    BPO Expertise in Telecom

    BFSI, Utilities & Media

    Retail

    Reliance World Reliance Mobile Store

    Tech Services Leveraging Internal IT

    Development Capabilities

    Indias leading fully integrated & Converged service providerWireless

    Mobile (CDMA & GSM) VAS (Mobile World) Wireless Data Fixed Wireless

    Public Access Business

    Globalcom

    Submarine cable (FLAG) Ethernet Data services Long Distance (NLD/ILD) Reliance Global Call Vanco Yipes

    Tower (Infratel)

    Multi tenancy towers (4x) Pan- India coverage Backhaul Support systems Other businesses

    Reliance Communications

    Integrated play covering the entire value chain

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    Complete range of telecom services 6th largest wireless operator in the world (customer base in a single country)

    Only Indian company to offer nationwide both CDMA & GSM services

    Largest network covering a billion people in India

    Services offered includes Mobile, Home phones, PCOs, Datacards, etc

    Worlds largest submarine cable network with presence in 60 countries

    Wide range of services include Capacity services, MPLS-VPN, Ethernet,

    Managed services, etc

    Reliance Communications

    One stop shop for all kinds of enterprise connectivity solutions

    >50% market share in high growth data products

    Services offered include MPLS-VPN, Centrex, Data centers, WiMax, etc

    Only Indian DTH operator to provide services in 6,500 towns Services offered by leveraging the existing infrastructure

    USA

    Canada

    Australia

    Pakistan

    Sri Lanka

    China

    Hong Kong

    Bangladesh

    Nigeria

    South Africa

    Germany

    Italy

    London

    South KoreaNew Zealand

    UAE

    Saudi Arabia

    Bahrain

    Qatar

    Austria

    Oman

    Japan

    Taiwan

    Malaysia

    RussiaSpain

    Belgium

    France

    Switzerlandd

    Netherland

    Sudan

    USA

    Canada

    Australia

    Pakistan

    Sri Lanka

    China

    Hong KongBangladesh

    Nigeria

    South Africa

    Germany

    Italy

    UK

    South Korea

    New Zealand

    UAESaudi Arabia

    Bahrain

    Qatar

    Austria

    Oman

    Japan

    Taiwan

    Malaysia

    Russia

    Spain

    Belgium

    France Switzerland

    Netherland

    Sudan

    India

    Globalcom

    Enterprise

    Home

    Wireless

    Infratel

    Largest portfolio of multi-tenancy towers with 4x tenancy

    Integrated solutions including towers, optic fiber, network management, etc

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    Strategy

    Focused & profitable growth

    Reliance Communications

    Latest congestion free Next Generation network for highest quality

    Attractive plans & offers

    Objectives Action Plans

    Customer

    Growth

    More revenue streams from new product launches

    Increased revenue from new service streams like GSM (share of VAS & In-

    roaming revenue)

    RevenueGrowth

    Focused participation in the entire value chain of telco business

    Would also be participating in the new technological developments to

    provide one-stop shop for all communication needs

    Integration &Convergence

    Profitable & sustainable growth

    Leveraging existing infrastructure for new launches leads to stable margins

    ProfitableGrowth

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    Building leadership position across all screens

    Reliance Communications

    4 screen strategy

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    Recent performance

    Maintaining the strong growth momentum

    Reliance Communications

    Financial Performance

    4Q FY09 Q-o-Q Y-o-Y

    Revenue (Rs. Mn) 61,237 4.7% 15.3%

    EBITDA (Rs. Mn) 23,832 1.3% 2.9%

    Net Profit (Rs. Mn) 14,544 3.1% -3.2%

    EBITDA Margin 38.9% -1.3ppt -4.7ppt

    Net Profit Margin 23.8% -0.3ppt -4.5ppt

    (Rs. Mn)(As on Dec 31, 2008)

    Balance Sheet Strength*

    880,000Assets

    290,000Networth

    0.64Net Debt to Equity (x)

    186,000Net Debt

    267,000Gross Debt

    * Balance Sheet as on 31st Dec 2008. Fiscal year 09 balance sheet will be published post the final approval of Shareholders and/ or the Honble High Court of Judicature at Mumbai on the

    Scheme of Arrangement for demerger of the Optical Fibre Division of the Company to Reliance Infratel Limited (RITL)

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    107,664

    144,683

    229,411

    190,678

    FY06 FY07 FY08 FY09

    92,875

    81,989

    24,762

    57,208

    FY06 FY07 FY08 FY09

    4,438

    59,078

    31,637

    54,005

    FY06 FY07 FY08 FY09

    Key Financial Parameters (Rs. Mn)

    Revenue EBITDA Net Profit

    Financial Highlights

    +137

    %

    Consistent & Substantial increase in profitability

    Reliance Communications

    +55%

    +29%

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    17.2%14.7% 14.9% 15.5%

    6.6%8.1% 7.5% 6.9%

    18.6% 18.2%17.5% 16.5%

    15.3%18.2% 19.9% 22.2%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    1Q FY09 2Q FY09 3Q FY09 4Q FY09

    %oTaR

    Cost management (% of revenue) with stable margins

    inspite of launch of multiple new businesses

    Reliance Communications

    Margins 42.3% 40.8% 38.9% Network expenses

    - Increase in network cost due to

    expansion of coverage & GSMlaunch

    - Opex of other new businesses like

    DTH, Vanco, etc

    Access charges & LF- Expansion of fiber optic assets &

    increase in PoIs

    - Removal of ADC

    SG&A expenses

    - Focused marketing & various cost

    control measures

    Staff cost

    40.2%

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    Profitability

    Profitable growth

    EBITDA Margin Net Profit Margin

    Among the highest margins in the industry in spite of the launch ofseveral new businesses

    Aimed at leveraging common infrastructure to protect/enhance margins

    RCOM

    Bharti

    Idea

    5%

    10%

    15%

    20%

    25%

    30%

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    Reliance Communications

    Source: Company reports

    RCOM

    Bharti

    Idea

    10%

    20%

    30%

    40%

    50%

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

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    Capex intensity coming down significantly

    moving towards FCF positive

    Note: FY2010 capex amount is the companys guidance in the earnings call

    Source: Company reports

    RCOM

    Bharti

    0

    10,000

    20,000

    30,000

    FY06 FY07 FY08 FY09 FY10

    RCoe

    Reliance Communications

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    Contents

    Enterprise

    Home

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

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    30%

    48%

    80%86% 89%

    92%

    126%

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    140%

    India China Brazil Japan US France UK

    0%

    3% 2%

    6%

    14%

    26%

    18%

    0%

    10%

    20%

    30%

    40%

    Japan France UK US China Brazil India

    Targets the largest untapped population in the worldLow wireless penetration Leading to strong revenue growth

    Source: Merrill Lynch Global Wireless Matrix, December 2008

    Low penetration + High Revenue growth = Huge opportunity

    Wireless Business

    i l B i

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    38615.2

    13.7

    15.4

    10.7

    10.3

    10.4

    10.09.1

    250

    300

    350

    400

    Jul Aug Sept Oct Nov Dec Jan Feb Mar Mar

    596

    496

    386

    256

    161

    96

    50%

    42%

    33%

    22%

    14%

    9%

    0

    100

    200

    300

    400

    500

    600

    700

    2006 2007 2008 2009 2010E 2011E

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Mobile Subscribers (mn)

    Penetration

    Source: Industry estimates, COAI, AUSPI

    Mobile subscribers in India to cross 600 mn in 2 years

    Year end March 31

    CAGR

    44%

    even then there will be 600 mn unserved people in India

    Subscriber additions (mn)

    Wireless Business

    Wi l B i

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    RCOM: One of the fastest growing wireless companies globally

    Among Indias top 2 operators with over 73 mn wireless subscribers

    - Prepaid subscriber additions drive growth - 93% of total subscribers

    Key Performance Indicators

    - EBITDA margins among the highest in the industry - 37%...

    - despite among the lowest tariffs in the world

    - backed by the highest Minutes Of Usage 830 million minutes per day

    Wireless Business

    Wi l B i

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    RCOM

    Bharti

    Idea

    Vodafone

    0.0

    2.0

    4.0

    6.0

    8.0

    10.0

    12.0

    4 Q FY08 1Q FY09 2Q FY09 3Q FY09 4 Q FY09

    Netadds(inmn)

    RCOM

    Bharti

    Idea

    Vodafone

    5.0%

    15.0%

    25.0%

    35.0%

    4 Q FY08 1Q FY09 2Q FY09 3Q FY09 4 Q FY09

    Net adds market

    Significant acceleration in RCOM net adds post GSM launch

    Net adds (mn) Net adds market share (%)

    Highest wireless subscriber acquisition in the world 5 mn in the firstmonth of our GSM launch

    Achieved more than 25% market share in 7-8 telecom operator market

    Wireless Business

    Source: COAI, AUSPI

    Wi l B i

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    Mobility

    *

    *CDMA

    shall replicate success with nationwide GSM service

    Over 73 million

    Happy customers

    Market leadershipin all segments

    Wireless Data

    Fixed Wireless

    PCO

    Wireless Business

    Wireless Business

    http://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gifhttp://www.techshout.com/images/reliance-landline-two.gif
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    24,000Towns

    600,000 Villages

    1 Billion Indians

    Seamless coverage wherever you go

    CDMA GSM

    Wireless Business

    Wireless Business

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    Indias billion people can now expect an unbeatablechoice and value proposition across.

    Coverage

    Customer Choice

    Service Breadth

    Quality

    Handset Range

    Value Added Services

    Reliance GSM Set to redefine mobility landscape in India

    Intl Roaming

    1. 2.

    5.

    3. 4.

    7.

    6.

    Wireless Business

    Wireless Business

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    GSM network exploits huge capex and opex synergies

    Nationwide GSM service at marginal incremental cost

    Passive Infrastructure

    Transport Backhaul + PoI

    IT SystemsBilling + CRM + SAP

    BPO + Call Center

    Sales &Distribution

    Retail Network

    RadioElectronics

    Capexfo

    rnew

    entran

    t:~

    US$10

    bn < 15% investment

    85% of capex isTechnology

    Agnostic

    Leveraged forMultiple businessesincl. CDMA +GSM

    Wireless Business

    3G Ready

    Infrastructure

    Wireless Business

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    Dual network offers additional market share levers

    Unique advantage: Competition cant replicate

    Wireless Business

    Existing growthmomentum

    Industry monthly net adds of 8 - 10 mn GSM subscribers Impetus from network expansion in semi-urban/ rural areas

    Customer churn

    Cross technologyOn-net plans: Unique

    Service offering

    Mobile NumberPortability (MNP) CDMA GSM

    Incumbent GSM RCOM GSM

    Probability

    Broad Market Segmentation

    Corporate Requirement Retail/FamilySimilar CUG family plans

    Low

    High

    Customer has invested in Handset

    Customer neither loses numbernor investment in Handset

    Low

    GSM

    RCOM CDMA

    Senior executives- Smart phones

    - International travel

    Field force- Large on-net talktime- Remote email access

    RCOM will bring both segments on-net, driving customer value & stickiness

    Wireless Business

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    Drivers for additional revenue market share

    Significant revenue upside from GSM launch

    Wireless Business

    Mid to High-end range handset users contributehigher ARPU (incl. international roamers)

    Participation in rapidly growing ~US$ 1 bninternational in-roaming market

    Currently enjoyed by few GSM incumbents Extremely profitable segment

    GSM non-voice revenue contribution ~10% with

    SMS contributing ~5% vs ~1.2% in CDMA Attract high SMS/VAS usage groups who also

    look for trendy & sleek multimedia handsets

    Thru GSMHandsetsEcosystem

    Internationalin-roaming

    revenue

    VAS revenue

    Wireless Business

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    Most comprehensive wireless portfolioTechnology

    Advantages CDMA GSM

    Spectrum efficiencyUnlimited usage plans

    PCO & FWP

    Wireless Data capacity

    Mobile internet dominance

    ATM & PoS

    Multimedia/Video capability Near 3G experience

    Handset range at all price pointsGSM ecosystem - 75% of

    Indian mobile sector

    International RoamingHigh ARPU segment

    In-roaming revenues

    Only company to leverage strengths of both technologies

    Wireless Business

    Wireless Business

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    Best positioned to serve all customer segmentsSegment Need Technology Supporting factorsLight pockets -Low handset prices

    -

    Primarily incoming &low outgoing

    GSM/EDGE -Presence of 2nd hand handsets

    -

    SIM Distribution reach

    Business andEnterprise

    -E-mail

    -Browsers

    -Office tools

    -Roaming

    GSM/EDGE -Mid and High end handset range

    -International Roaming

    Lifestyle aspirants -Multimedia

    -Design (look & feel)

    GSM/EDGE -Mid and High end handset range

    Anchored users -Fixed wireless

    -Data speeds

    CDMA -High data speeds possible with 1X

    -Low cost to operate limitedmobility

    Data hungry users -Data speeds CDMA -High data speeds possible with 1X

    Value seekers -Value seeker of

    Handset and Minutes

    CDMA -Minutes bundled with handsets

    Wireless Business

    Wireless Business

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    Netconnect Broadband PlusCompetitive differentiation

    Fastest internet connectivity under wireless platform

    Fastest internet broadband service of up to 3.1

    Mbps in Indias top 35 cities Seamless handover & connectivity through CDMA

    1X in over 23K towns and 6 lakh villages covering

    90% of the Indian population

    Wide reach compared to limited reach of wirelinenetworks

    - Broadband coverage expansion the wireless way

    Easy plug & play USB devices

    Easy availability & instant activation withinminutes compared to few weeks or even months

    in case of wired broadband

    Wireless Business

    Wireless Business

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    Service Innovations: First to reach the market

    Wireless Business

    Internet on the move

    Unlimited local & STD calls

    MPay

    Yahoo on Reliance

    MBankingMBlog

    Mobile TV

    Micro-billing

    Wireless Business

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    Multi-channel customer delivery system

    eless us ess

    By far the largest retail distribution network in the industry

    World-class design , fit out & ambienceat 2,000 exclusive retail showrooms onHigh streets/Malls

    High Quality Reach & National footprintthrough 5,000 distributors & 1 millionretailers

    5,000+ Direct & indirect outbound salesforce to cater to customers at theirpremises

    Dimensioned to handle over 35 mnsales transactions annually

    Wireless Business

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    41,60841,187

    43,35644,119

    45,015

    34,000

    36,000

    38,000

    40,000

    42,000

    44,000

    46,000

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    16,763 16,623 16,859 16,616 16,629

    14,000

    15,000

    16,000

    17,000

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    36.9%40.4%40.3%

    38.9% 37.7%

    0%

    20%

    40%

    60%

    80%

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    Financial Performance

    Maintained growth momentum with stable margins

    Revenue (Rs. Mn) EBITDA (Rs. Mn)

    EBITDA Margin

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    Contents

    Enterprise

    Home

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

    Reliance Infratel

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    200,000

    400,000

    700,000

    2008A 2009A 2010E

    Infrastructure Tenancy Slots MarketRITL Ground based tower

    RITL Roof top tower

    2G, 3G & BWA

    f

    Source: Industry Estimates

    Reliance Infratel

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    Infrastructure sharing GSM and 3G roll outs

    Access large rural

    population

    Spectrum scarcity vs.

    coverage

    Speed of deployment

    Capex burden

    Profitability amidfalling ARPUs

    Network quality Focus on core

    business

    Rural roll out

    Reduced cost ofservice

    Increase penetration

    Key drivers ofinfrastructure

    sharing

    Growth

    Financial&

    business

    impactSocial

    responsibility

    Governmentimperatives O

    peratorimperatives

    Operatorim

    peratives

    Infrastructure sharing All drivers are in place

    Regulation

    Pressure on site

    sharing

    Active sharing

    allowed

    USO scheme forsharinginfrastructure

    Growthdrivers

    Reliance Infratel

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    Infrastructure overview

    Aim to be a preferred infrastructure provider for new operators

    Operational in all 22 circles

    ~48,000 multi-tenancy towers as on March 31, 2009.

    Anchor customer (Reliance Communications) driven strategy

    Current captive tenancy of 1.6x post our GSM launch; will further increase

    by 3rd

    party (external) tenants Financial performance (FY2008)

    - Revenue: Rs. 14,566 mn

    - EBITDA: Rs. 6,746 mn; Margins: 46.3%- Total Assets: Rs. 117,205 mn

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    Contents

    Enterprise

    Home

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

    Globalcom Business

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    Data Voice WiMAX NLD

    Business structure

    Accelerate growth into $290 Billion communications market byproviding comprehensive voice, video & data network services

    Completed restructuring of our services under four core business segmentsof Data, Voice, WiMax and NLD

    Globalcom Business

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    Sources: Telegeography, Ovum, Gartner Research

    2008F Global Market Demand ($bn)Business Unit

    Addressable market revenue is ~US$ 290 bn with EBITDA in range of15% to 55% based on service and geography

    Past scope of services

    WiMAX

    Voice

    Data

    NLD

    Typicalmargins

    15%35%

    20%40%

    35%55%

    15%-25%

    Market potential

    $1.5 bn

    $100 bn

    $185 bn

    $2.2 bn

    Globalcom Business

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    Voice BusinessGlobal Reach Innovative ProductSuite

    Leadership Position

    Retail services in U.S.,Canada, U.K., Australia,

    New Zealand, Hong Kongand Malaysia.

    Reliance Global Call offersCalling services for 200countries across the globe.

    Reliance Global Call

    - International Calling Service

    - Web based service delivery,fulfillment

    Reliance Passport

    - Single SIM for 110countries with free incoming

    calls in 57 countries

    Market share of 30% forILD wholesale inbound

    traffic Over 2 million customers

    for Reliance Global Callservice.

    Usage of Reliance Global

    Call accounts for 40% oftotal retail market callsfrom the United States toIndia.

    Market leader in International Long Distance

    USA

    Canada

    Australia

    Pakistan

    Sri Lanka

    China

    Hong Kong

    Bangladesh

    Nigeria

    South Africa

    Germany

    Italy

    London

    South KoreaNew Zealand

    UAE

    Saudi Arabia

    Bahrain

    Qatar

    Austria

    Oman

    Japan

    Taiwan

    Malaysia

    RussiaSpain

    Belgium

    France

    Switzerlandd

    Netherland

    Sudan

    USA

    Canada

    Australia

    Pakistan

    Sri Lanka

    China

    Hong KongBangladesh

    Nigeria

    South Africa

    Germany

    Italy

    UK

    South Korea

    New Zealand

    UAESaudi Arabia

    Bahrain

    Qatar

    Austria

    Oman

    Japan

    Taiwan

    Malaysia

    Russia

    Spain

    Belgium

    France Switzerland

    Netherland

    Sudan

    India

    Globalcom Business

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    Business Performance & Product Development

    Continues to be #1 Retail Service for India calling from US

    RGC continues to be #1 Retail Service for India callingfrom US user base of over 2 mn

    Special promotional offers were given for Pongal, Holi,Valentines day, etc

    Launched South Asia based calling card portal as part ofRGC expansion strategy

    Beta launch of MindBridge Audio conference services

    Reliance Global Call: New customer friendly features toexisting products being added e.g. Express Dial for Javabased mobile

    Extending RGC services to enterprise customers inSingapore and New Zealand

    Globalcom Business

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    ContinuedProductInnovation

    Value adds to drive retention and usage

    - Loyalty and reward program

    - Money transfer services

    - Entertainment and content features

    Launch new products like:

    - Web based Audio and Video Conferencing

    ExpandCustomer

    Base

    Expand retail reach to new territories like Bahrain

    Aggressively target Enterprise customers through crosssell and up sell through Reliance Vanco sales team

    Voice Business - Plan to drive profitable growth

    Maintain low cost leadership while aggressively growing business

    Globalcom Business

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    Data BusinessUnmatchedCapabilities

    Blue Chip Customers Leadership Position

    Global presence in over 60countries. Worlds largest

    IP optical network Leadership in Global

    Ethernet (Yipes) and MPLSVPN (Vanco).

    Among top 3 IDC suppliers

    Diverse base of over 200carriers, ISPs and content

    providers. Over 1,200 Blue Chip

    enterprise customers.

    Ranked amongst top 5 inGlobal Network Service

    Providers by Gartner.

    Coverage

    Among Top 5 Managed Network Services providers

    Globalcom Business

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    VerticalExpansion

    Enhance revenue contribution from higher marginvalue added services

    Sell to, sell through, sell with channel partners toextend the customer franchise

    HorizontalExpansion

    Expand Geographical Coverage:- Reach of cable network

    - VPoPs

    - Product suite

    Low risk investment strategy based on securing pre-build commitments

    Data Business - Plan to drive profitable growth

    Maintain low cost leadership while aggressively growing business

    Globalcom Business

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    WiMAX BusinessBuilding a Spectrum Bank Way Forward

    Focused on acquiring licenses and spectrum in

    emerging markets; market size of WiMAXestimated to be US$ 10 bn by 2010

    Deliver affordable broadband access across emerging markets

    Operationalise WiMAX

    business in selectgeographies

    Leverage the low costand scalable deliverycenter in Mumbai

    Globalcom Business

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    15,257 15,26016,915 16,783

    18,803

    0

    5,000

    10,000

    15,000

    20,000

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    4,089

    3,2223,608

    4,315

    5,025

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    26.7%25.7%21.3%

    26.8%

    21.1%

    0%

    10%

    20%

    30%

    40%

    50%

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    Financial Performance

    Short term margin impact due to VANCO acquisition

    Revenue (Rs. Mn) EBITDA (Rs. Mn)

    EBITDA Margin

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    Contents

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

    Enterprise

    Home

    Enterprise Business

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    FY2008 FY2012

    Household SMB + SME Enterprise

    Underserved market: Provides strong growth opportunityBroadband market segment revenue (US$ bn)

    US$ 5.5 bn

    US$ 13 bn

    +US

    $8bn

    Source : Industry Report

    Indian Market to grow to US$ 13 bn in the next 3 years

    Enterprise Business

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    RCOM: Best positioned to drive growth

    FiberRing Meshed Core

    Atlantic

    Pacific

    >50% market share in highest growth dataproducts like IDC, Centrex solutions, VPN, etc

    1 Million buildings connected across top 44cities to our fiber network, to cross 1.5 mn bynext year end

    Have built the largest capability in India toserve >7.5 mn Voice & Data customers

    Indias leading provider of enterprise services

    Who do we Serve

    Servicing over 900 of top 1000 top Enterprises 250 MNCs and 50,000 SMB businesses

    Over 1.4 mn access subscribers

    Enterprise Business - IDC

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    Six data centres with level 3+ accreditation more than 300,000 sq ft of facilitiesspace

    Hosting >20,000 systems and >1400terabyte of information

    Geographic redundancy

    Wide & complex application hosted

    - Core Banking, ATM/ Internet Banking

    - Complex ERP/ SAP Applications

    - Complex Intranet/ Customized Apps.- Large Messaging Applications

    IDC: Largest in India with >60% market share

    Expanding capacity 4 times to cater to fast growing demand

    Enterprise Business

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    5,1005,603

    6,0236,542

    7,075

    0

    2,000

    4,000

    6,000

    8,000

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    2,4922,714

    2,9412,760

    3,160

    0

    1,000

    2,000

    3,000

    4,000

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    44.7%42.2%

    48.8%48.9% 48.4%

    0%

    20%

    40%

    60%

    80%

    4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

    Financial Performance

    Consistent growth with strong margins

    Revenue (Rs. Mn) EBITDA (Rs. Mn)

    EBITDA Margin

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    Contents

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

    Enterprise

    Home

    Home

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    Indian Market(as of March09)

    Analog cable HH

    90%

    DTH HH

    9%Digital HH

    1%

    Indias TV Viewership

    2nd largest in the world

    120 Mn TV Homes

    90 Mn C&S Homes

    12 Mn Pay TV DTH Homes

    TV Technology Evolution

    Analog Cable Digital Cable DTH

    DTH to grow multi-fold by 2015

    One of the largest Pay TV markets globally

    0

    50

    100

    150

    200

    250

    300

    350

    400

    China India US Japan

    TVHH(

    inmn)

    Home Business

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    Key service differentiators

    - More channel choice

    - Pure Digital viewing- 32 Cinema channels

    - Easy program guide

    - Quick channel select

    - Interactive applications (iNews, iGames,iCricket, etc)

    - Superior Mpeg 4 technology

    Pioneering HD Experience in India

    Pioneering DVR Watch when you want

    Big TV (DTH) - Commercially launched

    Digital viewing experience will create revolution in TV entertainment platforms

    Home Business

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    BroadcastTV and Radio

    Information

    Entertainment

    Advertisments

    Messaging

    Commerce

    Public Service

    EPG / Mini EPG Mosaic Portal

    News Stock

    Game VoD / MoD / PVR Karaoke / Photo Album

    Interactive Promotion Dedicated Advertiser Location

    SMS / MMS Mail Polling / Voting

    Shopping / Banking

    T - Government / T - Learning

    Services

    BIG TV Services: Complete suite of services

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    Contents

    Reliance Communications an integrated telco

    Wireless

    Infratel

    Globalcom

    Key takeaways

    Enterprise

    Home

    Looking ahead

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    Drivers for growth Impact

    Key Takeaways

    RCOM launched nationwide GSM servicewith presence in 20,000 towns in March2009

    RCOM GSM expanding coverage to 24K

    towns to cover 1 billion people by midCY2009

    Huge growth opportunity in Businesssegments like Infratel, DTH & expansion

    of Enterprise/IDC

    Time -to- Market advantage for launchingnew & unique products & services

    Increases the Revenuegenerating ability

    High EBITDA marginBusinesses improves theoverall profitability

    Robust pipeline of

    business to supportgrowth

    Integration of Telecom, Media, IT will be levers of tremendous future growth

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    Thank you