Idea Cellular Limited · Largest independent tower company in the world with more than 110,500 towers Indus benefits from assured tenancy from promoters (combined revenue market share

Idea Cellular Limited

Investor Presentation

Disclaimer

The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwiseshall be subject to the applicable laws and regulations as amended from time to time. There is no representation that allinformation relating to the context has been taken care of in the presentation and neither we undertake any obligation as to theregular updating of the information as a result of new information, future events or otherwise. We will accept no liabilitywhatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation orfor any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction orcountries were such distribution or use would be contrary to the applicable laws or regulations. It is advised that prior to actingupon this presentation, independent consultation / advise may be obtained and necessary due diligence, investigation etc maybe done. You may also contact us directly for any questions or clarifications.

This presentation contain certain statements of future expectations and other forward-looking statements, including thoserelating to our general business plans and strategy, our future financial condition and growth prospects, and futuredevelopments in our sector and our competitive and regulatory environment. In addition to statements which are forwardlooking by reason of context, the words ‘may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts,potential or continue’ and similar expressions identify forward looking statements.

Actual results, performances or events may differ materially from these forward-looking statements including the plans,objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, includingwithout limitation, future changes or developments in our business, our competitive environment, telecommunicationstechnology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list isnot exhaustive.

This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be usedas a basis for any investment decision.

“The information contained herein does not constitute an offer of securities for sale in the United States. Securities may not be sold in theUnited States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering ofsecurities to be made in the United States will be made by means of a prospectus and will contain detailed information about the Companyand its management, as well as financial statements. No money, securities or other consideration is being solicited, and, if sent in response tothe information contained herein, will not be accepted.”

290.2

304.4

316.7

331.9335.8

353.2

363.6

374.4 372.7

250

275

300

325

350

375

Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

Indian Wireless Sector – Revenue Trend

Source: Data released by the TRAI & Company estimates; revenue for UAS and Mobile licenses only

Idea 14.3%

Others 85.7%

Idea 12.1%

Others 87.9%

Q2FY10

Q2FY13

Sector Gross Revenue (INR bn) Idea - Increase in Revenue Market Share

3

5.80 6.09 6.33 6.64 6.72 7.06 7.27 7.49 7.45In USD (bn)

4

Idea – An Overview

A pan India 2G service provider.

Won 1800 MHz spectrum in auction for all 7 serviceareas, for which licenses were cancelled by Hon’blesupreme court

Won 3G spectrum in 11 service areas

Third largest operator in India, by Mobility Revenues#

Minutes on network around 1.37 bn per day(Q2FY13), placing it among the top 10 operators globally

Leads the industry, in terms of active subscribers, asmore than 94% of reported subscribers are on VLR

Owns 9,302 towers, besides 11,094 towers transferred toIndus under IRU

Over 70,000 km optical fibre cable (OFC) network

Idea’s NLD carries ~95% of captive outgoing minutes

Idea’s International Long Distance Operations (ILDOs)carry 98% of captive outgoing minutes. Total Minutescarried on ILD ~ 914mn in Q2FY13

Idea ISP carries ~70% of it’s own data traffic. Total datatraffic carried is over 100 TB per day

# Data released by the TRAI & Company estimates; revenue for UAS and Mobile licenses only

900 MHz Spectrum900 MHz Spectrum

1800 MHz Spectrum1800 MHz Spectrum

900 MHz Spectrum

1800 MHz Spectrum

5

2.5%

4.7%5.2% 5.3% 5.4%

7.0%

8.9%9.5% 9.6%

0%

2%

4%

6%

8%

10%

12%

Har. Pun. UPW Ker. M.P. Guj. Kar. A.P. Maha.

900 MHz spectrum band provides capex/opexadvantage, compared to 1800 MHz

900 MHz spectrum also accompanied by earlymover advantage

Idea holds 900 MHz spectrum in 9 serviceareas, covering~ 48% of national revenue and ~73% of Idea’s revenue

~ 58% of national revenue base (excl. metros*)

Idea’s spectrum profile is very attractiveacross all private operators

Service areas share of gross revenue (excl. metros)58%

Competitiveness Lever 1 - Spectrum

Source: Data released by the TRAI & Company estimates for Q2FY13, revenue for UAS and Mobile licenses only * Metros as Mumbai, Delhi and Kolkata

6

Competitiveness Lever 2 - Scale within Service Area

Service Area (900 MHz)

Revenue Mkt Share 1

(RMS)Rank 2

Kerala 33.0% 1

M.P. 31.9% 1

Maharashtra 26.3% 1

UP (W) 25.5% 1

Haryana 22.7% 2

Punjab 20.6% 2

Gujarat 17.6% 2

A.P. 17.9% 2

Karnataka 9.1% 4

Total 21.7% 2

In 9 service areas, comprising ~ 48% of national revenue market & ~72% of Idea’s revenue, Idea’s competitiveness is intrinsically strong based on a) 900 MHz spectrum and b) scale of operations

1Based on gross revenue for Q2FY13, as released by TRAI & Company estimates2Based on revenue market share

# 1 Player# 2 Player# 1 Player# 2 Player Improved combined revenue market share

from 20.7% in Q2FY11 to 21.7% in Q2FY13

7

1800 MHz Operations (6 Service Areas)Emerging Stronger – Ranked #3

Service AreaRevenue Mkt Share 1

(RMS)Rank 2

UPE 12.3% 3

Rajasthan 11.1% 3

Delhi 10.7% 3

Bihar 9.9% 4

H.P. 9.0% 5

Mumbai 8.2% 5

Total 10.4% 3

Idea has increased its combined RMS from8.5% in Q2FY11 to 10.4% in Q2FY13, improvingits position from 4th to 3rd ranked operator, inthese service areas

These service areas cover ~31% of all Indiarevenue and ~23% of Idea’s revenue

With continuous improvement in RMS, Idea isemerging stronger

1Based on gross revenue for Q2FY13, as released by TRAI & Company estimates2Based on revenue market share

8

1800 MHz Operations (7 New Service Areas)Focus On Optimisation, Not Maximisation

In recently concluded 1800 MHz spectrumauction, Idea acquired liberalized spectrumfor 20 years for an amount of Rs. 19.9 bn.

Leverage synergies of pan India operationsi.e. roaming, NLD, ad spend, commonnetwork elements, etc.

Infra sharing to reduce capex, and quickertime to market

Focus on operational and financialgoals, not league tables

Combined RMS of 3.3% in Q2FY13.Inevitably, as the number of operators in theIndian market shrink, these new market willoffer good growth potential

3G Footprint

Idea’s 3G Service Areas

Roaming arrangements with other operators

9

Idea launched 3G services in 10 serviceareas, out of 11 service areas where it won3G spectrum

Having 14,467 3G sites in these serviceareas (Q2FY13)

Launched 3G services under roamingarrangements for the service areas ofMumbai, Bihar, Karnataka, Rajasthan, WestBengal, Delhi, Kolkata, Tamil Nadu (incl.Chennai), Assam and North East

With these arrangements Idea currentlyoffers 3G services in 20 service areas

Around 3.7 mn 3G subs with data ARPU ofRs. 87

Existing 18 mn 2G data subscribers &growing, offer excellent long term 3Gupgrade opportunity

Note :For Punjab service area, authorisation for commercial use of 3G spectrum is awaited

10

Idea – Long Term Shareholder Value

Cover ~48% of national revenue market

Strong position in these service areas

900 MHz spectrum accompanied by early mover advantage

900 MHz spectrum provides capex and opex advantage

900 MHz( 9 Service Areas )

Leverage spectrum and scale to enhance

leadership

Pan India Footprint

Leverage synergies of scale and footprint

Emerging Stronger in 6 service areas of UP(E), Rajasthan, Delhi,

Bihar, H.P. and Mumbai

Focus on operational & financial goals, not league tables in 7 New

service areas

Calibrated Capex with infra sharing

1800 MHz( 13 Service Areas )

Sustainable and profitable growth

3G Value Drivers

Market power to drive new business: Ranked #1 or #2, in 8 out of 11 service areas, where it won 3G

spectrum

Protecting existing business value:11 service areas cover ~74% of company revenue and ~ 49% of

Industry revenue

Roaming arrangements: Ability to provide 3G service in almost all

parts of India

Other value: Besides enhanced data performance, High 2G spectrum

utilisation makes the 3G spectrum also valuable for voice

Best placed to exploit 3G

11

The Indus Advantage

Indus Service Areas

Indus Share Holding

Provides passive infrastructure services in15 service areas

Largest independent tower company in theworld with more than 110,500 towers

Indus benefits from assured tenancy frompromoters (combined revenue marketshare of ~67%*), apart from other operators

Idea benefits by reduced capex, speed tomarket, and embedded value ofshareholding

Bharti Infratel Ltd 42%

Vodafone Essar Ltd

42%

Idea Cellular Ltd* 16%

Indus Share Holding

*through Aditya Birla Telecom Ltd.

* Data released by the TRAI & Company estimates ; revenue for UAS and Mobile licenses only

*In addition, Idea also own more than 9,300 towers

12

Idea – A Power Brand

13

World Class Operations and Cost Management

*ARR is based on service revenue (exclusive of infrastructure and device revenues)

** Includes Depreciation & Amortisation, but excludes Interest & Finance Cost

Paisa

46.6 50.7 54.0 55.4 53.5

106.2114.0

124.0130.9

125.642.7

43.3

42.2

41.2 41.3

34.0 33.9 33.8

32.5 32.5

40.3 40.0 39.6

38.3 38.8

29

32

35

38

41

44

0

33

66

99

132

Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

Revenue (INR bn) Minutes (bn) ARR* Pre-EBITDA Cost/Min Operational Cost/Min**(Pre- EBIT)

14

Strong Balance Sheet to Support Strategic Intent

Note: Figures for Idea including its 100% subsidiaries and excluding Joint Venture Spice (till February 28,2010) and Indus.

Q2 Q2 Q2 Q2FY10 FY11 FY12 FY13

Gross Debt 59,169 97,541 113,087 115,140

Cash & Equivalent 23,136 5,029 1,080 8,562

Net Debt 36,033 92,512 112,007 106,577

Net Worth 139,029 117,825 125,240 134,661

Cash Profit 7,087 6,982 7,884 12,313

Financial Ratios

Net Debt to Net Worth 0.26 0.79 0.89 0.79

Net Debt to Annualised EBITDA 1.23 3.04 2.68 2.11

ROCE 7.7% 4.7% 5.2% 7.1%

INR Million

15

Promoter Group, 45.9%Foreign

Holding, 45.7%

Indian Others, 8.3%

As on 30th Sep’12Shareholding

PROMOTERS’ HOLDING

ADITYA BIRLA NUVO LIMITED 25.3%

BIRLA TMT HOLDINGS PVT LTD 8.6%

HINDALCO INDUSTRIES LIMITED 6.9%

GRASIM INDUSTRIES LTD 5.2%

TOP 5 SHAREHOLDERS

TMI MAURITIUS 14.0%

P5 ASIA INVESTMENTS (MAURITIUS) 10.0%

AXIATA INVESTMENTS 2 (INDIA) LTD. 5.9%

NWB PLC AS DEP. OF FIRST STATE 2.9%

LIFE INSURANCE CORP. OF INDIA 1.5%

Appendix

17

Key Trends - 1* (Quarterly)

46.650.7

54.0 55.453.5

30

35

40

45

50

55

60

Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13

Cash Profits

EBITDA

10.4

12.0 12.1 12.9 12.6

7.00

8.00

9.00

10.00

11.00

12.00

13.00


Rs bn

Gross RevenueRs bn

Subscribers

100.2106.4

112.7117.2 115.5

91.2

98.9105.3

108.4 109.1

60

70

80

90

100

110

120


7.9

9.5

10.1 10.5

12.3

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00


Rs bn In mn

*Represents Idea and its 100% subsidiaries

18

Key Trends – 2* (Quarterly)

106.2114.0

124.3130.9

125.6

75

85

95

105

115

125

135


VAS and Data as a % of Revenue

Realized rate per minute

42.7 43.3 42.2 41.2 41.3

20.00

25.00

30.00

35.00

40.00

45.00


paisa

Minutes of use on Network (QoQ)

bn - Minutes

Cell Sites

78,367 80,63783,190 83,860

85,779

9,744

10,902

12,82513,363

14,467

76000

81000

86000

91000

96000

101000


2G Sites 3G Sites


4.5% 5.4%

13.2% 13.7% 14.3%

10.0% 10.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

VAS% Data %

14.5%15.6%

19

Financial Matrix (Standalone*- Annual)

67.4

99.7 121.4

156.4

196.8

0

25

50

75

100

125

150

175

200

FY08 FY09 FY10 FY11 FY12

19.8

23.5

29.0 30.9

36.1

5

10

15

20

25

30

35

40


10.4 9.6

10.3

8.4

6.0

0

2

4

6

8

10

12


Robust Growth in Top Line

INR bn

22.727.5

30.5 33.3

45.2

5

10

15

20

25

30

35

40

45

50


Robust Growth in EBITDA

INR bn

Net Profits

INR bn

Robust Growth in Cash Profits

INR bn


20

Financial Matrix (Consolidated*- Annual)

67.4

101.5 124.5

155.0

195.4

0

25

50

75

100

125

150

175

200


19.8 23.5

30.6 34.1

40.3

0

10

20

30

40

50


Robust Growth in Top Line

INR bn

22.7

28.4

34.137.9

50.9

15

20

25

30

35

40

45

50

55


Robust Growth in EBITDA

INR bn

Net Profits

INR bn

Robust Growth in Cash Profits

INR bn

*Represents Idea, its 100% subsidiaries and Joint Ventures

10.4 8.8 9.5 9.0

7.2

0

2

4

6

8

10

12


21

Thank You

Documents

Idea Cellular Limited · Largest independent tower company in the world with more than 110,500 towers Indus benefits from assured tenancy from promoters (combined revenue market share