Vision To be the most admired Telecom service provider Analyst in Maharashtra and Goa Mission eet We will become the most admired company M dlideliver ing sus titainabl e val ue b y –
Balancing the needs of all stakeholders and encouraggging value creation throug hout the ata eleservices T T organization (Maharashtra) Limited Continuously satisfying customers’ growing needs and expectations with innovative and January 2010 customized cutting edge solutions Creating an engaged and empowered workforce Confidential committed to delivering high performance Key Milestones in Q3
Crossed 11 million TTML Subscribers (December)
# 1 private operator - Crossed 600,000 Wireline Subscribers (October)
Rest of # 2 Wireless Operator & Largest Tata circle – Maharashtra Crossed 7 million Subscribers (December)
# 3 Wireless Operator - Crossed 4 million Mumbai Subscribers (November)
Revenues & Highest ever quarterly revenues of Rs. 603 crores Revenue Market and expected highest ever revenue market share Share
2 Agenda 3
3 Operations Priorities decided for FY 09‐10 4
1 Build Brand & Focus on Innovation
2 Enhance Network Rollout
3 Oppgtimize Costs & Enhance Margins
4 Focus on Customer Service
4 Operations Priorities decided for FY 09‐10 5
1 Build Brand & Focus on Innovation
Outdoors
Events
Internet, TVCs & Radio
Schemes & Offers
Value Added Services
Device Innovation
5 Build Brand & Focus on Innovation 6 Outdoors
Digital Mumbai™ Campaign
Priyadarshini
6 Build Brand & Focus on Innovation 6 Outdoors
Juhu Tara Road Haji Ali
High Street Phoenix Nirmal Lifestyle Mall - Mulund Inorbit mall - Malad Inorbit mall - Vashi
7 Build Brand & Focus on Innovation 6 Outdoors A CSR initiative - Beautification of the city by an extensive plantation drive with branding mileage
700 trees planted in the Cantonment area on the Pune Aurangabad Highway
Ownership to children aged between 8 to 12 years as care tktakers
Two way reflective display – 100% visibility during day and night
8 Build Brand & Focus on Innovation 9 Events Prithvi Theatre Festival ‘09
9 Build Brand & Focus on Innovation 9 Events Kala Ghoda Festival of India
10 Build Brand & Focus on Innovation 9 Events Mood Indigo – IIT Mumbai Annual Event
11 Build Brand & Focus on Innovation 9 Events Sophia College Festival - Kaleidoscope
Bhavans College Festival - O2
12 Build Brand & Focus on Innovation 9 Events Hosted a corporate screening of the movie AVATAR at Cinemax, Versova
Meet and Greet with Prachi Desai
13 Build Brand & Focus on Innovation 9 Events Live-in Concert with Pandit Ravi Shankar & Anoushka Shankar
14 Build Brand & Focus on Innovation 9 Events TATA DOCOMO Store - Bandra Christmas Celebration – Gift a smile
15 Build Brand & Focus on Innovation 11 Internet, TVC, Radio & Press Coverage
16 Build Brand & Focus on Innovation 11 Internet, TVC, Radio & Press Coverage
TATA INDICOM - Election – TATA INDICOM – Saans – TATA DOCOMO – Marathi TATA DOCOMO – Friendship Regional Campaign National Campaign Regional Campaign Express – All India Campaign
TATA INDICOM – Walky Ghar TATA INDICOM - Hansi – Ka Phone – Marathi Campaign National Campaign
Meet Prachi Desai Bolte Raho Photon+ on Prepaid Radio Radio Radio
17 Build Brand & Focus on Innovation 11 Internet, TVC, Radio & Press Coverage
18 Build Brand & Focus on Innovation 12 Schemes & Offers RCV 175 Night Calling RCV 75 Per Second RCV RCV 133 UK and Gulf Calling RCV
RCV 159 Eid Special RCV 78 Full On Bol Photon+ on Prepaid
19 Build Brand & Focus on Innovation 16 Value Added Services Photon+ Instaconnect
Photon TV
20 Build Brand & Focus on Innovation 16 Value Added Services
GPRS Packs Choice Number Dive-in
21 Build Brand & Focus on Innovation 16 Device Innovation
Partnership with Microsoft X-Box
22 Operations Priorities decided for FY 09‐10 22
1 Build Brand & Focus on Innovation
2 Enhance Network Rollout
3 Oppgtimize Costs & Enhance Margins
4 Focus on Customer Service
23 Enhance Network Rollout 26 Optical fiber backbone across Maharashtra of more than 9500 Kms at end of December 2009
TTML today has over 6373 BTSs serving both its GSM and CDMA platforms TTML’s wireless network footprint enhancement strongly supported by passive infrastructure creation by it’s wholly owned subsidiary, 21st Century Infra Tele Limited (TFCITL)
TFCITL now has over 2200 towers across Maharashtra and has reached a tenancy ratio of 2.1 which is probably the highest in the industry
MSC’s in pool created in Mumbai for GSM and CDMA
24 Operations Priorities decided for FY 09‐10 25
1 Build Brand & Focus on Innovation
2 Enhance Network Rollout
3 Oppgtimize Costs & Enhance Margins
4 Focus on Customer Service
25 Optimize Costs & Enhance Margins 26 Tower Company tenancy ratio increased to 2.1 from 1.51 in Q3, thereby resulting in opex savings for TTML
Focus on energy savings at all BTSs
Shift to revenue sharing models with VAS vendors, reducing outlay on capital eqqpuipment for VAS platforms
Re-orientation of advertising spends for GSM, after highly successful Q2 launch which strongly established the Tata DOCOMO brand
26 Operations Priorities decided for FY 09‐10 27
1 Build Brand & Focus on Innovation
2 Enhance Network Rollout
3 Oppgtimize Costs & Enhance Margins
4 Focus on Customer Service
27 Focus on Customer Service 28 TTML has been rated as the only congestion free network across Mumbai and Maharashtra in the last five consecutive reports published by TRAI
This follows its earlier rating in independent studies commissioned by TRAI as the No. 1 wireless operator in terms of overall customer satisfaction across Mumbai and Maharashtra
28 Agenda 33
29 Market Overview 35
Maharashtra India (excl. Mumbai) Mumbai
Population as of 2009 (Mln) 1166.9 101.2 20
Wireless Base as on Dec 2009 (Mln) 525.2 40.0 24.3
Wireless Teledensity 45% 40% 122%
9 months FY 10 subscriber growth 51.4% 45.5% 42.3% over 9 months FY 09
9 months FY 10 TTML subscriber growth 76.2% 79.2% over 9 months FY 09
* Source: MMRDA repp(port (Population and Emp pyloyment p rofile of Mumbai Metrop olitan reg g),pion), Wikepedia & TRAI Subscriber Rep ort Note: BSNL CDMA data not yet released
30 9 Months FY10 Wireline Incremental Market Share 37
Mumbai ROM Bharti Bharti 16.7% 28.5%
Reliance 14.0%
Tata Indicom 53.6%
Reliance (59.5 K subscribers; Q3 17.8% Incceetaremental M ark etsae5%)et share 54%) Tata Indicom 69.3% (26.8K subscribers; Q3 TTML Incremental Market share 69%) Bharti 25.5%
Reliance 16.8% Tata Indicom 57.7% (86.3K subscribers; Q3 Incremental Market share 58%)
Source: TRAI S ub scrib er report (O nl y P ri vat e pl ayers)
31 Wireline EOP Market Share 38
Mumbai ROM Bharti Tata Indicom 20.1% Bharti 49.4% 31.4% (467 K)
Tata Indicom 53.2%
Reliance (156 K) Reliance 26.7% 19.2%
TTML
Bharti 28.7%
TIdiTata Indicom 50.3% (623 K) Reliance 21.0%
Source: TRAI S ub scrib er report (O nl y P ri vat e pl ayers)
32 Q3 FY10 Wireless Incremental Market Share 39
Mumbai ROM Vodafone Aircel Sistema Shyam Sistema Shyam Reliance Vodafone 9.5% 13.9% 0.0001% 0.3% 17.7% 16.1% Reliance Bharti Aircel 17.6% 4 3 6.1% 2 4 2.17% 2 Loop Bharti 84%8.4% 1 54%5.4% 3 1 Idea BSNL 5.4% MTNL 8.8% 2.0% TTML Idea TTML 32. 2% 17.6% 36.8%
TTML SSsteistem aSa Sh yam Reliance 0.1% Vodafone 17.6% 13.9% Aircel 2 3 6.1% MTNL Bharti 0.7% 57%5.7% 1 4 Loop 2.8%
BSNL 5.8% TTML Idea 33.8% 13.5% Source: TRAI S ub scrib er report
BSNL CDMA EOP considered same as last month, as the nos. not released 33 9 Months FY10 Wireless Incremental Market Share 39
Mumbai ROM Sistema Shyam Vodafone Aircel Reliance Sistema Shyam Vodafone 0.1% 11.0% 13.2% Bharti 21.7% 0.00002% Reliance 21.0% 3.3% Aircel 19.5% 3 2 3 1.56% 2 Loop Bharti 4 96%9.6% 53%5.3% 1 1 4 Idea BSNL 10.1% 5.95% MTNL 2.9% TTML Idea TTML 27. 8% 16.7% 30.3%
TTML
SSsteistem aSa Sh yam Vodaodafo ne RliReliance 0.04% 17.3% 20.9% Aircel 5.9% 3 2 Bharti MTNL 4.6% 1.1% Loop 4 1 35%3.5% BSNL 3.7%
Idea TTML 14.3% 28. 7% Source: TRAI S ub scrib er report
BSNL CDMA EOP considered same as last month, as the nos. not released 34 Wireless EOP Market Share 40
Mumbai ROM Sistema ShyamVodafone Aircel Vodafone Bharti Reliance 0.02% 20.3% 0.3% Sistema Shyam 16.2% 16.2% 22.2% Aircel 2 0.00001% 3 4 1 2.8% BSNL 4 5 11.5% Bharti Reliance 15.9% 3 12.2% 2 1
MTNL 10.6% Loop TTML Idea 10.9% Idea TTML 15.8% 5.2% 22.3% 17.6% TTML Aircel Vodaodafo ne Bhaatrti 12%1.2% 17.7% 14.7% Sistema Shyam Loop 0.01% 2 5 4.1% BSNL Reliance 1 7.1% 4 18. 3% 3
Idea MTNL TTML 15.8% 4.0% 16. 9% Source: TRAI S ub scrib er report
BSNL CDMA EOP considered same as last month, as the nos. not released 35 Agenda 46
36 SCORECARD Q3 FY10 ‐ Consolidated 47 47
Q3 FY09 Q2 FY10 Q3 FY10 Actual Actual Actual
EOP Subscribers (Nos. in lacs) 66.4 96.4 115.2
Total Revenue (Rs.Crs.) 518 550 603
EBITDA (Rs.Crs.) 151 121 135
EBITDA Margin % 29% 22% 22%
Cash Profit (Rs.Crs.) (excl. Forex Loss) 77 23 46
ChPfit(RC)Cash Profit (Rs.Crs.) 68 18 42
PAT (Rs.Crs.) (49) (116) (103)
37 SCORECARD 9 months FY10 ‐ Consolidated
9 months 9 months FY09 FY10 Actual Actual EOP Subscribers (Nos. in lacs) 66.4 115.2
Total Revenue (Rs.Crs.) 1541 1666
EBITDA (Rs .Crs . ) 468 414
EBITDA Margin % 30% 25%
Cash Profit (Rs.Crs.) 279 157 (excl. Forex Loss)
Cash Profit (Rs.Crs.) 216 145
PAT (Rs.Crs.) (131) (254)
38 VAS+Data Revenues 56
VAS+Data Revenues as percentage of Wireless Revenues
Impact of higher voice revenues in launch phase of GSM 18% 15.4% 16% 14. 3% 13.4% 13.4% 13. 9% 13.90% 14% 12.3% 12% 10% 8% 6% 4% 2% 0% Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10
39 Key Parameters
Particulars Units Year Ended Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 FY-08 FY-09 Wireless Services Subscribers Base Nos. '000 6,150 6,962 7,441 9,041 10,899 4,683 6,962
Prepaid Subscribers as a % of EOP Subscribers % 89% 91% 91% 92% 93% 86% 91% Wireless Subscribers Market Share % 13.9% 13.9% 13.9% 15.5% 16.9% 13.5% 13.9% Average Revenue per User * Rs. per month 196 178 154 148 143 268 198 Avg. MOU per User ** Min. per month 323 311 292 271 266 447 326
Rate per per Minute Minute Rs. 0610.61 0570 .57 0530.53 0550.55 0540.54 0600.60 0610.61 Postpaid Voluntary Churn % per month 0.8% 1.2% 1.3% 1.4% 1.2% 0.9% 0.9% Postpaid Company Initiated Churn % per month 2.4% 2.1% 1.6% 1.7% 1.6% 1.9% 2.2% Prepaid Churn % per month 1.8% 1.1% 1.2% 2.8% 0.5% 1.6% 1.1%
VAS +Data Revenues Revenues as a % as of a Wireless % of WirelessRevenue Revenue% 13.4% 13.9% 15.4% 14.3% 13.9% 10.1% 13.2%
Wireline Services Customers Nos. '000 489 533 563 595 620 396 533
ARPU *** Rs. per month 1,156 1,048 1,071 987 911 1,324 1,116
** Only Voice MOUs considered. Local on net MOUs have been counted twice. *** Wireline revenues are inclusive of Rs. 16.7 Cr. one time revenue from dark fibre and bandwidth sale in Q1-10, Rs. 4.6 Cr in Q2-10 and Rs. 1.2 Cr in Q3-10.
40 Other Details
Particulars Units Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 21st Century Infra Tele Ltd. Total Towers Nos. 1,380 1,492 1,829 2,155 2,272 Ground Based Towers Nos. 393 433 494 519 530 Roof Top Top Towers Towers and and Others Others Nos. 987 1,059 13351,335 16361,636 17421,742 Occupancy Ratio * Ratio 1.37 1.41 1.43 1.52 2.11
Particulars Units Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Wireless Services Minut tes on N Networ tk k** ** MMiMn Min 57415,741 6,113 63016,301 67056,705 7957 Census Towns Nos. 324 330 330 331 331 Non-Census Towns and Villages Nos. 9,054 10,334 10,574 10,724 10972 Population Coverage (excluding Mumbai) Nos. lacs 670 716 720 722 725 Network Sites Nos. 2,367 2,681 2,703 5,643 6373 Optic Fibre Network Km 7,980 8,804 9,154 9,355 9543
TTML Balance Sheet data (Standalone) Gross Debt Rs. Cr 3,096 3,112 3,185 3,348 3,447 Net Debt Debt Rs. Cr Cr 3,069 3,085 3,165 3,314 3,426 Gross Block (including Capital WIP) Rs. C r 4,654 4,771 5,133 5,432 5,611
* For co-located GSM & CDMA sites, combined occupancy considered at 1.2. ** Only Voice MOUs considered. Local on net MOUs have been counted twice.
41 Quarterly Performance
Launch of GSM LhfGSMLaunch of GSM Services Services 603 12,600 11,519 630 Revenue (Rs.Cr.) EOP Subscriber Base (`000) 550 11,400 9,637 505 518 518 517 513 10,200 530 491 460 8,004 9,000 429 7,495 409 7,800 6,639 430 389 6,154 367 6,600 5,617 342 5,079 324 4,696 330 5,400 4,127 3,478 4,200 3,074 2,711 3,000 2,104 2,350 230 1,800 600 130 7 7 7 7 8 8 8 8 9 9 9 9 0 0 0 77 77 77 77 88 88 88 88 99 99 99 99 00 00 00 Q1FY0 Q2FY0 Q3FY0 Q4FY0 Q1FY0 Q2FY0 Q3FY0 Q4FY0 Q1FY0 Q2FY0 Q3FY0 Q4FY0 Q1FY1 Q2FY1 Q3FY1 Q1FY0 Q2FY0 Q3FY0 Q4FY0 Q1FY0 Q2FY0 Q3FY0 Q4FY0 Q1FY0 Q2FY0 Q3FY0 Q4FY0 Q1FY1 Q2FY1 Q3FY1
Launch of GSM 520 Operational Cost per Sub (Rs.pm) 200 EBITDA (Rs.Cr.) 449 Services 160 161 158 420 415 150 155 151 128 374 132 135 337 120 106 121 97 100 320 314 283 Launch of GSM 83 250 Services 80 64 233 58 218 220 202 192 164 182 154 150 40
120 0 Q1FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q1FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10
Note: The Company commenced operations using GSM technology in August 2009 and the consequent revenues and costs are accordin gly considered in the results of Q2 & Q3, FY10
42 Quarterly Performance Launch of GSM Services EBITDA Margin (%)
35% 31% 31% 31% 31% 29% 28% 26% 28% 25% 25% 25% 23% 22% 22% 19% 21% 18%
14%
7%
0% 09 10 10 10 07 07 07 07 08 08 08 08 09 09 09 YY YY YY YY YY YY YY YY YY YY YY YY YY YY YY Q4F Q1F Q2F Q3F Q1F Q2F Q3F Q4F Q1F Q2F Q3F Q4F Q1F Q2F Q3F
PAT(Rs.Cr.) -
(20) FY07 FY07 FY07 FY07 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09 FY10 FY10 FY10
(40) Q1 Q2 Q3 Q4 (28)Q1 Q2 (27)Q3 (21)Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (35) (34) (39) (60) (46) (49) (47) (49) (59) (80)
(100) (93) Launch of (103) (120) GSM Services (112) (116) (140)
Note: The Company commenced operations using GSM technology in August 2009 and the consequent revenues and costs are accordin gly considered in the results of Q2 & Q3, FY10
43 Market Capitalization & Share Price (As on 25th January 2010)
Market Capitalization Trend 90007500 (Fig. in Rs. Crs) 7646.06 6000 4230.73 4500 5179.35 3000 1500
0 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 10 09 09 09 09 09 09 09 09 09 09 09 09 09 10 10 09 09 09 09 09 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Jul Jul Jul Jan Jan Jan Jan Jan Jan Jan ‐ Jun ‐ Jun Jun ‐ Jun Oct Oct Oct Apr Apr Apr Feb Feb Sep Sep Sep Apr Feb Sep Dec Aug Dec Dec Nov ‐ ‐ Aug Aug ‐ ‐ ‐ Nov Nov Nov ‐ ‐ ‐ ‐ ‐ Mar Mar Mar ‐ ‐ ‐ ‐ May ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ May May ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 5 3 7 1 6 1 9 5 27 18 3 5 7 10 19 28 14 23 30 21 12 25 16 10 19 28 15 24 10 19 28 18 27 14 23 12 21 30 14 23 20000 16 25 BSE Index Trend (Fig. in Rs.) 17701.13 16000 16780.46 12000 9903.46 8000
4000
0 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 10 09 09 09 09 09 09 09 09 09 09 10 10 09 09 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Jul Jul Jul Jan Jan Jan Jan Jan Jan Jan Jun ‐ Jun Jun ‐ Jun ‐ Oct Oct Oct Apr Apr Apr Feb Feb Sep Sep Sep Apr Feb Sep Dec Aug Dec Dec ‐ Aug Aug Nov ‐ ‐ ‐ ‐ Nov Nov Nov ‐ ‐ ‐ ‐ ‐ Mar Mar Mar ‐ ‐ May ‐ ‐ ‐ ‐ ‐ ‐ ‐ May May ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 5 3 7 1 6 1 9 18 27 5 3 5 7 10 19 28 14 23 12 21 30 16 25 10 19 28 15 24 10 19 28 18 27 14 23 12 21 30 14 23 16 45 25 40.30 TTML Share Price Trend (Fig. in Rs.) 27 36
18 22.30 27.30
9
0 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 09 10 09 09 09 09 10 10 09 09 09 09 09 09 09 09 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ll ll ll tt tt tt rr rr rr rr rr rr Ju Ju cc rr gg cc cc vv gg gg yy pp pp pp vv vv vv bb bb yy yy nn nn nn nn nn pp bb nn nn nn nn nn nn Ja Ja Ja Ja Ja Ju Ju Ju Ju Oc Oc Ap Ap Ap Fe Fe Se Se Se ‐ ‐ Ja Ja De De Au Au No No No Ma Ma Ju Oc Ap ‐ ‐ ‐ ‐ ‐ Se Fe Ma Ma ‐ ‐ ‐ ‐ De Au No ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Ma ‐ ‐ Ma ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 5 1 3 7 1 1 6 9 5 18 27 3 5 7 10 19 28 14 23 12 21 30 16 25 10 19 28 15 24 10 19 28 18 27 14 23 12 21 30 14 23 16 25 Source: BSE 44 66
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