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Transcript of 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