Investor Presentation
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16 September 2020 National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Phiroze Jeejeebhoy Towers, Bandra - Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Dear Sir, Sub: Investor Presentation Ref: “Vodafone Idea Limited” (IDEA / 532822) Pursuant to Regulation 30 and 46 of the SEBI (LODR) Regulations, 2015, enclosed is the corporate presentation being uploaded on the Company’s website. The above is for your information and dissemination to the public. Thanking you, Yours truly, For Vodafone Idea Limited Pankaj Kapdeo Company Secretary Encl: As above Vodafone Idea Limited 1 Company Overview 2 Vodafone Idea Limited: An Overview 1,846 MHz ~181,000 ~446,000 ~363,000 Kms1 Spectrum holding Unique GSM Cell sites Broadband sites Fibre 1.2 billion 2G 2G coverage > 487,000 280 million Enhanced coverage Subscriber base Across towns & villages ~1 billion 4G coverage LTE ~30% ~26% Customer market share2 Revenue market share3 With our strong assets we are well positioned to compete Note: 1. Includes own fibre of ~161k kms and IRU fibre; Including overlap; 2. TRAI Telecom Report on Subscription Data as of Mar-2020, Active customer market share - VLR (Visitor location register); 3. TRAI Financial Report as of Jun-2020 for wireless (excluding BSNL and Tata Wireline) . As BSNL gross revenue is not reported we have considered it to be same as reported in Q4 ; other Data (Company Disclosures) as of Jun-2020. 3 Advanced network leading to superior customer experience Strongest spectrum position Highly advanced and extensive network Blended mobile ARPU (USD) (Mar 2020 unless otherwise stated)1 Vodafone Idea Total Holdings Total Liberalised Holdings ~ 1 billion 181,000 1,163 4G coverage ~446,000 Unique locations Broadband sites 1,846 1,724 MHz MHz ~ 12,100 400 ~ 11,700 ~ 60,000 283 India’s largest massive MIMO Small cells TDD sites radio deployment Sub-GHz Supra-GHz TDD (800/900) (1,800/2,100) (2,300/2,500) ~363,000 #1 DSR kms2 Bharti Airtel India’s largest edge To offer Sub-GHz Fibre (of which cloud deployment 4G experience 916 ~262k km unique) 570 1,729 1,536 MHz MHz Fastest 4G download speeds in select circles and significant growth in data volumes 243 Sub-GHz Supra-GHz TDD 7 circles 40 cities (800/900) (1,800/2,100) (2,300/2,500) Out of 21 circles including Mumbai and Of which 15 cities are among top 50 by Jio Delhi3 population3 600 293 1,108 1,108 ~13 GB 215 MHz MHz average data usage by VIL broadband ~40% subscriber4 Y-o-Y data volume growth4 Sub-GHz Supra-GHz TDD (amongst highest in the world) (800/900) (1,800/2,100) (2,300/2,500) 1. Source: Department of Telecommunications. 2. Includes own fibre of ~161k kms and IRU fibre; Including overlap. 3. Source: Ookla report, June 2020. Jammu and Kashmir is not part of the survey. 4. Source: VIL Q1 FY2021 quarterly report. 4 Strong market position in consumer, business services & IoT Total active wireless subscriber base1 Strong market position in growing business services market2 Number 1 in Internet of Things (Connectivity)2,3 Mar 2020 market share FY2020 business services mobility RMS (%) IoT connectivity RMS (%) ~$1.6bn ~$60mn FY2020 Market FY2020 IoT Others size2 connectivity market2 7% 40% 54% 39% Vodafone Idea 33% 30% Jio 32% 13% 12% Bharti Airtel 7% 32% 1% 0% 0% Bharti Vodafone Jio BSNL Other Vodafone Bharti BSNL Jio Other Airtel Idea Idea Airtel India operates in a 3 private player + 1 Leading provider of innovative end to end government operator market which globally Strong market position servicing accounts solutions for customers across all major has been proven to be the optimal “steady- including global, national and SME accounts sectors state” structure for healthy competition Note: FX 1USD=75.5287 INR as at 30 Jun 2020. 1. Source: TRAI Subscription Report Mar 2020 (VLR subs). 2. Source: Frost and Sullivan mobile services report for FY 2020. 3. Represents cellular IOT connectivity M2M market share. 5 Globally scaled subscriber base Top 15 wireless operators globally by subscriber base1 Subscribers (mn) Single Country Operator 947 Multi-Country Operator of which Indian customer base of 280mn 420 398 345 343 310 280 278 275 262 208 205 186 171 171 2 Source: Company releases. 1. Based on latest available company filings. Represents subscriber figures across all countries of operations. 2. Vodafone Group includes all of its joint ventures & associates (excluding Vodafone Idea). Including Vodafone Idea subscribers Vodafone would be the second largest wireless operator globally. 6 Strong new unified brand and other operating assets Valuable array of other operating assets Accessible customer base Ability to communicate with ~280mn users Together For Tomorrow Broad pan-Indian coverage +90% district coverage and ~3k branded urban stores What is unique about Vi? Strong business services proposition Uniquely positioned to leverage Vodafone • Vi brings the power of two networks, Vodafone Group’s enterprise capabilities and Idea into one It is a brand built to be strong, dependable and Digital assets Digital apps serving as a platform for • partners and customers to understand the changing needs of our customers in the current times Customer intelligence Analytics to offer customised plans • With our range of new age products, services and meaningful partnerships and associations, Vi will help customers and businesses to stay Powerful distribution network ~1mn merchants serving ~5mn customers ahead and get ahead on daily basis • Vi stands together with customers and partners Skilled workforce Management with global expertise and for a better today and brighter tomorrow highly skilled workforce Source: Latest company data as of Jun 2020. 7 Growth Opportunities 8 Enormous growth potential in the Indian telecom sector Mobile broadband is the primary medium ...and is well placed to continue its …given a large proportion of 2G/3G …and low 4G penetration relative to to access the internet in India… strong growth trajectory… subscribers still to migrate to 4G… global peers Broadband Subscribers1 (mn) (Mar 2020) 4G wireless broadband penetration and Wireless broadband penetration by access 4G/5G wireless broadband penetration2 smartphone adoption2 (% of population) (Mar technology2 (% of subscribers) (Mar 2020) (% of population) 2020) 2G 3G 4G 5G Total subscriber base Mar-20 Mar-25 (mn) Smartphone penetration (%) 350 199 562 1,594 234 1,085 128% 668 4G Penetration (%) 118% 1 % – 0.1% 1 % – – 115% 105% 51% 43% 94% ~ 35x 46% 91% more wireless 86% 42% 43% 60% 58% broadband 77% 74% 73% subscribers 35% 81% 72% 88% 68% 31% 22% 39% 5 % 46% 18% 27% 11% 37% 19 14% 5 % 19% 8 % 13% 1 % 9 % 13% 4 % Wireless Wireline 2016 2017 2018 2019 2020 US Brazil EU China Russia India India China US EU Russia Brazil 1. Source: TRAI Subscription Report Mar 2020. 2. Source: GSMA Intelligence database. 9 Supported by compelling macroeconomic backdrop… Growing and highly resilient Indian economy Huge market potential underpinned by a large and growing population Real GDP growth (%)1 and GDP at current prices ($tn) (Dec y/e)2 Population (mn) (Dec 2019) and 2019-2021 population growth2 (%) 2019 $2.9 $14.3 $21.4 $15.6 $1.7 $1.8 Population 1.0% 0.3% (0.02%) 0.6% 0.7% (0.1%) GDP Growth p.a. (current 2 prices) 2015-19 CAGR 2019-21 CAGR 1,366 1,397 6.4% 6.7% 4.6% 5.1% 2.3% 2.3% 1.5% 447 0.1% 329 211 144 (0.7%) (1.4%) (1.1%) (1.3%) India China US EU Russia Brazil India China EU US Brazil Russia Stable and easing inflationary environment Untapped rural population and strong government support driving investments Consumer price index (%) (Dec Y/E)1 ~70% of India’s population is rural with only 29.8% 5.8% Robust of rural internet penetration (Dec 2019), which 2,3 4.9% demand provides an untapped growth potential 4.5% 4.5% Advantage Policy Strong government initiatives including the 3.6% 3.6% Support launch of National Broadband Mission to provide 3.4% 3.3% India broadband access to all villages in India by 2022 Increasing FDI equity inflow investment in Investment telecommunications increased ~3x fold to $4.4bn between FY2014 and FY20204 2014A 2015A 2016A 2017A 2018A 2019A 2020E 2021E 1. Source: IMF World Economic Outlook Database, April 2020. 2. Source: World Bank database. 3. Source: TRAI Performance Indicator Report. Internet subscribers includes wireless and wireline subscribers. 4. Source: Factsheet on Foreign Direct Investment, Department of Promotion of Industry and Internal trade. 10 …a rapidly growing digital economy Government’s digital India vision… …supporting ongoing and rapid digitalization of Indian market Digital Infrastructure as a Core Utility to UPI monthly transaction volume (mn)4 UPI monthly transaction amount 4 Every Citizen 1.2bn (USDbn) people in world’s largest Availability of high speed internet 1 unique identity program 1,246.8 27.34 Mobile phone & bank account access ~ 196x ~ 85x Cloud data storage Cyber security 989mn Core digital sectors to grow active wireless phone exponentially subscribers (Mar 2020)2 6.4 0.32 Governance & Services on Demand Mar-17 Mar-20 Mar-17 Mar-20 Digitally transformed government 702mn 3 services delivery smartphone subs (Mar 2020) Real time online & mobile platform +288mn additional smartphone subs 3 services access Average wireless data per data Total smartphone subscribers (mn) by Mar 20253 subscriber per month (GB)3,6 Electronic and cashless financial transactions 106.2 per 100 ~ 17x 11.8 ~3x 702 Digital Empowerment of Citizens pops urban internet subscribers Universal digital literacy (Dec 2019)5 Widely accessible digital resources 235 Collaborative digital platforms for 29.8 per 100 0.7 participative governance pops Digital government documentation / rural internet subscribers Mar-16 Mar-20 Mar-16 Mar-20 certification (Dec 2019)5 Note: FX 1USD=75.5287 INR as at 30 Jun 2020 1.