Upload
chakravarthi-chittajallu
View
10
Download
2
Embed Size (px)
Citation preview
TTMLInvestorPresentation
March2013
Disclaimer
The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall besubject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to thecontext has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a
lt f i f ti f t t th i W ill t li bilit h t f l i i di tl i di tl f thresult of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from theuse of, reliance of any information contained in this presentation or for any omission of the information. The information shall not bedistributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicablelaws or Regulations. It is advised that prior to acting upon this presentation independent consultation / advise may be obtained and necessarydue diligence, investigation etc may be done at your end.
Certain statements in this release concerning our Company objectives, future prospects, expectations may be forwardlooking statements,which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forwardlookingstatements. Tata Teleservices (Maharashtra) Limited may, from time to time, make additional written and oral forward looking statements,including our reports to shareholders. The Company does not undertake to update any forwardlooking statement that may be made fromtime to time by or on behalf of the company.
Actual results, performances or events may differ materially from these forwardlooking statements including the plans, objectives,expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation,future changes or developments in our business, our competitive environment, telecommunications technology and application, and political,economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive. This presentation is not being used inconnection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decisionconnection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.
For any queries, write to: [email protected]
2
y q , @
Contents
OverviewofIndustryandTTML
L K Hi hli hTTML KeyHighlights
FinancialPerformance
3
Growth in Global Wireless Revenues (2009 2012) Growth in India Wireless Revenue
StrongIndustryRevenueGrowthProspectsbasedonVoiceRPMIncrease;DatatoDriveGrowth
GrowthinGlobalWirelessRevenues(20092012) GrowthinIndiaWirelessRevenue2
.
2
%
1
5
.
6
%
.
6
%
1
5
.
6
%
1
7
.
1
%
6
%8%
12%
16%
20%
%
6
5
8
1
5
1
,
9
6
0
2
,
0
9
7
1,500
2,000
2,500
B
n
)
CAGR(201317):8.7%
6
.
7
%
1
2
6
.
2
%
1
1
0
.
1
%
0
.
1
%
1
0
.
6
4%
0%
4%
J
a
p
a
n
A
u
s
t
r
a
l
i
a
I
n
d
o
n
e
s
i
a
U
S
S
i
n
g
a
p
o
r
e
G
e
r
m
a
n
y
U
K
C
h
i
n
a
B
r
a
z
i
l
I
n
d
i
a
1
,
0
1
8
1
,
0
7
0
1
,
1
9
6
1
,
3
7
8
1
,
5
0
0
1
,
6
6
1
,
0
500
1,000
9 0 1 2
E E E E E
(
I
N
R
B
Focusofoperatorsshiftingonrevenuegrowth;datatodriveindustrygrowth
Focusofoperatorsshiftingonrevenuegrowth;datatodriveindustrygrowth
Data as % of Wireless Revenue: High Room for Growth given
EmergingMarkets,includingIndiawitnessinghealthiergrowthratesEmergingMarkets,includingIndiawitnessinghealthiergrowthrates
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
E
2
0
1
4
E
2
0
1
5
E
2
0
1
6
E
2
0
1
7
E
30%40%50%60%
%
Dataas%ofWirelessRevenue:HighRoomforGrowthgivenCurrentLowPenetrationinIndiaTrendsinVoiceRPMinIndia:ImprovementExpected
0.550.45 0.42 0.45 0.47
0.48 0.50 0.51 0.53
0.400.500.60
P
M
(
R
s
.
)
0%10%20%30%
J
a
p
a
n
u
s
t
r
a
l
i
a
o
n
e
s
i
a
U
S
g
a
p
o
r
e
e
r
m
a
n
y
U
K
C
h
i
n
a
B
r
a
z
i
l
I
n
d
i
a
0.000.100.200.30
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
E
2
0
1
4
E
2
0
1
5
E
2
0
1
6
E
2
0
1
7
E
V
o
i
c
e
R
P
4
A
u
I
n
d
S
i
n
g
G
e
Leadingplayershavestartedincreasingtariffs todrivevoicerevenuegrowth
Leadingplayershavestartedincreasingtariffs todrivevoicerevenuegrowth
Source:IndustryResearch,ManagementEstimates
ContributionofdatatorevenuesinIndialowercomparedtointernationalbenchmarks significantroomforgrowth
ContributionofdatatorevenuesinIndialowercomparedtointernationalbenchmarks significantroomforgrowth
2 2 2 2 2
TTMLisStrategicallyPositionedintheEvolvedCirclesofMumbaiandMaharashtra
MumbaiandMaharashtraaccountforHigherRevenueShareowingtoHigherARPULevels(Oct2012 Dec2012)TotalWirelessRevenues:GrowthContinues
1 018 1 0701,196
1,378 1,493
1 2001,4001,600
120
130
11.4%
14.7%
12%14%16%
79
8183
93
98
82 93
1111201,018 1,070
4006008001,0001,200
80
90
100
110
(
R
s
.
B
n
)
(
R
s
.
B
n
)
3.7%
7.7%6.6%
8.1%
2%4%6%8%
10%12%
77
20060
70
FY09 FY10 FY11 FY12 9MFY13Mumbai Maharashtra India(RHS)
0%2%
Mumbai Maharashtra Mumbai+Maharashtra
%ofPanIndiaSubscibers %ofPanIndiaGrossRevenue
These circles have significantly higher ARPU levels as compared to panIndia industry averages owing to highershare of VAS, Data and higher MoU
Voice RPM increase and Data penetration and usage will drive future growth in these mature circlesp g g
5
Source:TRAI
EvolutionofTTML
WIRELINE CDMA DATA GSM 3G
1996 1997 1998 2002 2008 2009 2010 2013
WIRELINE CDMA DATA GSM 3G
1996 1997
Spectrum Sep 1998 Sep 2008
License1996Basic
ProviderLicense
1997WirelessLicense
SpectrumMumbai
Sep 1998CDMA 5MHz
Sep 2008GSM 4.4MHz
Nov 1997CDMA 5 MH
Spectrum Nov 2008 Sept 2010
RevenueMilestones
CDMA 5MHzMaharashtra GSM 4.4MHz 3G 5MHz
2006Rs. 10 Bn
2010Rs 20 BnMilestones Rs.10Bn Rs.20Bn
StrategicMilestones
1998LaunchedTDMA
2001TataGroupgainedcontrolbyacq.Of
2009PartnershipwithNTT
2011Integrationof Brands
6
TDMA HughesTelecom DOCOMO ofBrands
TTML ShareholdingPattern
ShareholdingPatternasonDec2012 DetailedShareholding
%
Promoter&PromoterGroupp
TataGroup 65.6
NTTDOCOMO 12.1
TotalPromoter&PromoterGroup(A) 77.7
i iFII
DII0.1%
Others21.5%
Institutions
ForeignInstitutionalInvestors 0.7
DomesticInstitutions 0.1TotalInstitutions(B) 0.8
Promoter77.7%
FII0.7%
NonInstitutions
BodiesCorporates 2.4
Individuals 18.6Others 1 00Others 1.00TotalNonInstitutions(C) 21.5
TotalPublicShareholding(B+C) 22.2
Total(A+B+C) 100.0
7
LeveragingStrongTataPresenceacrosstheTelecomsValueChain
Comp.#1 Comp.#2 Comp.#3 Comp.#4 Comp.#5 Tata TataEntities
a
s
t
r
u
c
t
u
r
e InternationalBackbone Planned
DomesticBackbone
I
n
f
r
a
Tower
g
m
e
n
t
s Individual Enterprise
S
e
g
Carrier
S
e
r
v
i
c
e Fixed Mobile
T
e
l
e
c
o
m
&
T
V
Narrowband Broadband
PayTVDistribution T
E
n
a
b
l
e
r
s
IT ITES
Content
TataBusinessSupportServices
8
LimitedPresenceSignificantPresence *Basedoninternalassessment;Comp.:Competitor
TTML BoardofDirectors Serves on the Boards of Companies such as Tata Teleservices Ltd., Tata Communications Ltd., Tata Investment Corporation Ltd.,
Tata Business Support Services Ltd Tata Petrodyne Ltd Praj Industries Ltd TSR Darashaw Ltd and Tata AIA Life Insurance
Mr.Kishor ChaukarChairman
Tata Business Support Services Ltd., Tata Petrodyne Ltd., Praj Industries Ltd., TSR Darashaw Ltd. and Tata AIA Life InsuranceCompany Ltd.
He had been instrumental in providing strategic direction and support to the Tata companies promoted by TIL, and in formulatingstrategy at Tata Group level
He was previously the MD of ICICI Securities and Finance Company, and was also a member of the board of directors of ICICI He is a postgraduate in management from the Indian Institute of Management, Ahmedabad
Mr.S.RamadoraiDirector
Vice Chairman of Tata Consultancy Services (TCS), he had taken over as CEO of TCS in 1996 Also serves on Boards of various companies and educational institutes: Tata Industries Ltd., Hindustan Unilever Ltd., Piramal
Healthcare Ltd., Tata Advanced Systems Ltd., Asian Paints Ltd. and the MIT Executive Board, besides Tata Teleservices(Maharashtra) Ltd.
The Chief Strategy Officer of Tata Teleservices Limited. he has over 30 years of wide ranging professional experience in sales andmarketin b siness de elopment and strate incl din in se eral international assi nments across Asia E rope and NorthMr.KojiOno
Director
marketing, business development and strategy including in several international assignments across Asia, Europe and NorthAmerica
He has a Masters degree in Engineering from Waseda University in Japan as well as a Masters in Computer Science from SyracuseUniversity in the USA
Mr. Amal Ganguli A Chartered Accountant by profession, he spent over 40 years with PriceWaterhouse / Pricewaterhouse Coopers where he became
a partner in 1969 and was the Chairman and Senior Partner from 1996 till his retirement in 2003Mr.Amal GanguliIndependentDirector
a partner in 1969 and was the Chairman and Senior Partner from 1996 till his retirement in 2003 Serves as an Independent Director and Chairman/Member of Audit Committee of companies such as Century Textiles and
Industries Ltd., HCL Technologies Ltd., ICRA Ltd., Maruti Suzuki India Ltd., New Delhi Television Ltd., Tata Communications Ltd. andTriveni Engineering and Industries Ltd.
He belongs to the Indian Telecommunication Service and the Chairman and Managing Director of Mahanagar Telephone Nigam Ltd.during 1995 and 1997
Mr.NSRamachandranIndependentDirector
g Previously, he has held positions such as Chief Executive of the Telecommunication Department for the state of Karnataka, as
General Manager of Planning and Development of the Telecom Network of Delhi and as Director in the Rural Development TaskForce of Telecom Department
He has also worked with the International Telecommunication Union as a Senior Expert in Rural Network in Geneva, Maldives,Uganda and Zimbabwe.
He was appointed as a Member of TRAI on its formation in 1997 and held office till 2000 H i l di t i T t T l i Ltd
9
He is also a director in Tata Teleservices Ltd.
TTML BoardofDirectors(Contd.)
Prof.AshokJhunjhunwalaIndependentDirector
A Professor of the Department of Electrical Engineering, IIT, Chennai, he leads the Telecommunications and Computer Networksgroup (TeNeT) at IIT Chennai
He is a Director on the Boards of State Bank of India, Tata Communications Ltd., Polaris Software Lab Ltd., 3i Infotech Ltd., SaskenCommunication Technologies Ltd., Tejas Networks Ltd. and Institute for Development & Research in Banking Technology
He is member of Prime Ministers Setup Scientific Advisory Committee
Mr.NadirGodrejIndependentDirector
A Professor of the Department of Electrical Engineering, IIT, Chennai, he leads the Telecommunications and Computer Networksgroup (TeNeT) at IIT Chennai
He is a Director on the Boards of State Bank of India, Tata Communications Ltd., Polaris Software Lab Ltd., 3i Infotech Ltd., SaskenCommunication Technologies Ltd., Tejas Networks Ltd. and Institute for Development & Research in Banking Technology
He is member of Prime Ministers Setup Scientific Advisory Committee
Mr.DTJosephIndependentDirector
A former IAS officer, he has served the Government of India and the Government of Maharashtra in various capacities, including asSecretary, Public Health Department and Urban Development Department
He is a Director of Shreyas Shipping and Logistics Ltd., Mundra Port and Special Economic Zone Ltd., Ocean Sparkle Ltd., West AsiaMaritime Ltd., Shreyas Relay Syatems Ltd. and Dedicated Freight Corridor Corporation of India Ltd.
Mr.Srinathi h
Joined Tata Administrative Services in 1986, and has held positions in Project Management, Sales & Marketing, and Management indifferent Tata companies in the ICT sector
He has worked with Tata Honeywell, Tata Industries Ltd., Tata Information Systems Ltd., Tata Internet Services and TataCommunicationsNarasimhan
ManagingDirectorCommunications
He was appointed the MD of Tata Teleservices in Feb. 2011; also serves as a Director on Board Director on Board of TataCommunications, TTSLs tower subsidiary, Viom Networks
He is a Mechanical Engineer from IIT Chennai and has a postgraduate in management from the Indian Institute of Management,Kolkata
10
TTML Management Deepak has 28 years of experience across various industry segmentsTelecom, Information Technology, Manufacturing and
Mr.DeepakGulatiExecutivePresident MobilityDivision
Consumer Durables ; In the past hes worked with Bharti Airtel for 8 years as Business Head South, North and East regions Deepak has spearheaded the national launch of Tata Teles GSM platform branded Tata Docomo across 18 circles His knowledge of customer trends and market movements across the country have led to him being a wellknown figure in the
industry.
Madhu has been associated with the Company since 1998Mr.M.A.MadhusudanPresident
EnterpriseBusiness
Madhu has been associated with the Company since 1998 During his tenure at Tata Teleservices, he was a key member of the core team which led the company from a single circle operation
to pan India presence with a subscriber base of over 25 million Before taking over as President Corporate business, Madhu was CEO of Virgin Mobile India Madhu is a commerce graduate fromMysore University and has done his PGCBM from XLRI Jamshedpur
PrateekPashinePresident SME
Pashine began his career with the Tata Group in 1995 and has worked in diverse industries within the group, such as hospitality,software, real estate, telecom equipment and telecom and internet services
He has spent considerable amount of time in Marketing roles, spanning Hotels, Internet and Telecom Pashine was the recipient of the prestigious Fullbright Scholarship of US attended FulbrightCII Fellowship programme for
Leadership in Management at the Carnegie Mellon University, Pittsburgh, USA, in 2006 Pashine has an MBA in Corporate Strategy and Marketing with an Engineering degree in Electronics
Mr. SGMuraliChiefFinancial
Officer
Murali has been associated with the Tata Group since 1997 and since 1999 with the Company A fellow member of the Institute of Chartered Accountants of India and an Associate Member of the Institute of Cost Accountants
of India MrMurali has over 27 years of experience and has worked across industry segments in India and overseas
Mr.SVaradarajanExecutivePresident HumanResource
Raja brings with him over 30 years of rich experience across various industry segments like Manufacturing, ManagementConsulting, Financial services, Telecom and BPO
Raja was part of the promoting team along with industry pioneer Raman Roy at Spectramind and Quattro Global Services Raja has won many accolades, notably at the World HR Congress in 2009 for his thought leadership and contribution to the field of
HR, the Best Employer award at BPO Excellence Awards 200910
11
Contents
OverviewofIndustryandTTML
L K Hi hli hTTML KeyHighlights
FinancialPerformance
12
TTML KeyHighlights Integrated play across11
Technology : Wireline, CDMA, GSM and 3G
Products: Voice, Data & other enterprise Services
Customer segment: Enterprise SME and Retail Customer segment: Enterprise, SME and Retail
Significant Market Share
RMS rank 3rd in Mumbai (~13%) & 4th in Maharashtra (~ 10%)*
22
VLR ARPU at par or better than industry average
Data offerings across technologies, with growing share of Data + VAS Revenues
Strong brand presence established within a short period; Unified brand: Tata DoCoMo
33
44 g p p ;
Significant single brand retail presence a network of 500+ stores
Leading private player in wireline segment; stable revenue stream
44
55
66 Wireline Subscriber Base rank 2nd in Mumbai (~ 18%) and Maharashtra (~ 10%)^
Population coverage of 80%+ through a network of ~10,000 BTS and ~14,000 Km ofoptical fiber in Mumbai & Maharashtra (one of the largest in Mumbai)
77
13
Consistent track record of cash profits since FY 2007; mature CDMA business; maturingwireline business; strong emerging GSM business* OctDec2012quarter
^Dec2012
88
Integrated&ComprehensiveProductOfferingsAddressingDiverseCustomerSegments
1
FixedLineVoice
Compre
POTS,PRI,BRI,Centrex Audioconferencing,InstaConferencing ManagedVCFlexiTollNos.BudgetCalls
3GGSMCDMAWirelineTechnologies
WirelessVoice
ehensiveend
MobilePrepaid&Postpaid Fixedwirelessline
Wirefree PBX Officeinabox
WirelessData
toendsoluti
3GDataServices Photon+(1x,3x,6x)Securenet
CustomizedsecureInternet
RoadwarriorWirelessVPN
DataConnectivityServices
onsforenterp
L1 L3ServicesDLC,MPLS
QoS,BandwidthonDemand
MetroEthernetNetwork
ADSL+InternetforEnterprises
ManagedServices
priseneeds
DataCenter&CloudServices ManagedServices M2MServices&LBS SMS&USSDGateway
14
AddressingDiverseCustomerSegments RETAIL SME TOPCORPORATES
Strong#3byRevenue2
Mumbai:ConsistentlyIncreasingMarketShare,Gained#3Rankin2011 Maharashtra:Sustaining#4Rank
13.3% 13.2%14%10.7%
10 2%
12%
11.7%
10%
12%10.2% 10.1%
8%
10%
6%
8%
4%
6%
2%
4%
0%
2%
Rank 4 3 3 Rank 4 4 4
Overtook # 4 to gain Market Rank # 3Overtook # 4 to gain Market Rank # 3
0%FY11 FY12 9MFY13
0%FY11 FY12 9MFY13
15
Source:TRAI
Overtook#4togainMarketRank#3Overtook#4togainMarketRank#3
OneoftheFastestGrowingGSMOperators2
Jan10Mar10 Jan11Mar11 Jan12Mar12 Oct12Dec12
14 4% 9 9% 3 7%NA
Mumbai&MaharashtraCircles GrossRevenueGrowth(qoq)
TTMLGSM
TTML2.4%
14.4%
8.7%
9.9%
3.4%
3.7%
1.2%
NA
1.7%
8.7%
1.6%
3.8%
0.8%
7.1%
3.5%
6.4%
5.2%
1.9%
5.3%
3.0%
6.2%
4.6%
5.8%
1.5%
I d t
2.7%
3 3%
6.6% 1.1%
2 3%
NM
16
Industry 3.5% 3.3% 3.9% 2.3%
Source:TRAI;TTMLGSMdataisbasedoncompanyfinancialsNote:DataforWirelesssegmentonly
TTMLsVLRARPUatparorbetterthanIndustryAverage2
Mumbai&MaharashtraCircles IncreasingWirelessVLRARPU
271 276 268278
280
300
236 230 236 235 227 220 225
254 262266 271 268
220
240
260
280
n
t
h
)
140160
180
200
(
R
s
.
/
m
o
n
100
120
140
AprJun'11 JulSep'11 OctDec'11 JanMar'12 AprJun'12 JulSep'12 OctDec'12
TTMLsVLRARPUhasincreasedby9.4%(Dec12visvisJun11)ascomparedtoIndustryVLRARPUdegrowthof4.7%(Dec12visvisJun11)forMumbaiandMaharashtracirclescombined
TTMLsVLRARPUhasincreasedby9.4%(Dec12visvisJun11)ascomparedtoIndustryVLRARPUdegrowthof4.7%(Dec12visvisJun11)forMumbaiandMaharashtracirclescombined
Industry TTML
17
Source:TRAI
VoiceRPM SteadyoverQuarters2
0.40
0.38
0.39
0.39
0.40
i
n
u
t
e
(
R
s
.
)
0.36
0.37
0.37
0.38
R
a
t
e
/
M
i
0.35
0.36
Q
1
F
Y
1
1
Q
2
F
Y
1
1
Q
3
F
Y
1
1
Q
4
F
Y
1
1
Q
1
F
Y
1
2
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q Q Q Q Q Q Q Q Q Q Q
18
Source:CompanyFinancialsIncludessmallscreendata
DatamarketaddressedusingVarioustechnologies3
Desktop Laptop/TabletTV/OtherDevices
MobilePhones
Wireline
Addressing
DATA CDMA
Addressing
diversified
customer
segments
3G
g
Withpresenceinalldatasegments,viz.wireline,CDMAand3G(inMaharashtra),TTMLcaterstousageneedsofadiverse
customersegmentforallcategoryofdevices.Increaseindatapenetrationandavailabilityofdevicestodrivefuturegrowth
Withpresenceinalldatasegments,viz.wireline,CDMAand3G(inMaharashtra),TTMLcaterstousageneedsofadiverse
customersegmentforallcategoryofdevices.Increaseindatapenetrationandavailabilityofdevicestodrivefuturegrowth
19
g g y p y gg g y p y g
StrongPresenceinDataandVASSegments3
TTMLsData+VASRevenue RobustandSteadyGrowthinDataandVASRevenues
2.622.99
3.33
3.00
3.50
1.58
2.031.73
1.00
1.50
2.00
2.50
(
R
s
.
B
n
)
IncreasingShareofData+VASRevenuestoTotalWirelessRevenuestoSubsequentlyLeadtoBetterMargins
0.00
0.50
AprSep'10 OctMar'11 AprSep'11 OctMar'12 AprSep'12 OctDec'12
20 4%25.4%
31.6% 33.3%36.3% 38.0%
25%30%35%
40%
20.4%
0%
5%10%15%
20%25%
(
%
)
20Source:Companyfinancials
0%AprSep'10 OctMar'11 AprSep'11 OctMar'12 AprSep'12 OctDec'12
Note:IncludesSmallScreendata,LargeScreendata,SMSandVAS
BrandIntegrationandStrongBrandRecognitionWemovedtoasinglebrandinOct2011
4
gAccess Content Solutions
MinutesMegabytesRechargesB dl
MoviesMusicGamesCricket
MoneyTransferMobileWalletEBanking
FashionDatingMessagingTV
OnlineCoursesETrainingSurveillanceGPS
Spontaneous Awareness Consideration RecommendationMakingitsimplefortheendcustomer
BundlesDongles
CricketFootball
TVRadio
GPS
Sep12 Rank#
SpontaneousAwareness Consideration Recommendation
Sep12 Rank#Sep12 Rank#
TataDoCoMo 4TataDoCoMo 3TataDoCoMo 3
21Note: The above brand analysis considers Tata DoCoMo brand on a pan-India level
SegmentedBrandCampaignswithfocusonYouth4
Jeet ki Ghanti CampusCalling MoodIndigo
22
BrandedRetailStoresInvestment in New Store Layout and Design
5
InvestmentinNewStoreLayoutandDesign
AssistedsalesCare&Service
GSMhandsetsCDMAhandsets Voice&Datal fplans,forevery
need.
Retail Advice
Li lih d
SolutionInnovation
LivedisplayDemonstrationofservices
LivelihoodservicesValueAddedServices
More than 500 stores across the geography with a combined retail space of approx. 125,000 sft. Investment in design and marketing Focus on high value customer, both postpay & prepay f d f bl h
23
Laying foundation for sustainable growth Building systems for operational excellence
[email protected]%CAGRoverthenext5years
6
Large(>500
No.ofEnterprises MarketSize(Cr.)FY12
MarketSize(Cr.)FY17
~10K ~ 17,400 ~ 25 700E (>500Employees)
Medium(100500
10K 17,400 25,700nter 500
Employees)
Small
~6,750~190,000 ~4,350
~840,000 ~5,350 ~8,250
rpris
(10 100Employees)
SOHO
e
(19Employees)
24
Source::F&SSMETelecomTracker,FY11
TTML Product portfolioD
A
T
A
ILLMPLSNPLEthernetL2 M l i
BroadbandRetailWirelineVoice
R
V
I
C
E
S
MessagingasaService(MaaS)
MachinetoMachine(M2M)
Collaboration OI
C
E
GSMCDMAPRI/BRIWalkyC t
R
P
R
I
S
E
D
L2Multicast Photon+3GCDNBroadcasting
H
O
/
S
E
A
G
E
D
S
E
R
CollaborationHosting Security
R
P
R
I
S
E
V
O CentrexACSandTollfree IPVoiceVoIP IPLC CC
E
N
T
E
R BroadcastingVideoConnectWiFi S
O
H
M
A
N
A
E
N
T
E
R
IPLC CC InstaCCGlobalIPVoiceConnect(GIPVC)
25
SME Telecom spends in TTML markets to grow by 8% from ~Rs 3,200 crto ~Rs 3,400 in FY13 and to Rs 3,700cr in FY14
(Rscr)
240311
3 2263,424
3,696
3,500
4,000
Managed
860935
1,013214
2403,226
2,000
2,500
3,000
a agedServices
WirelessVoice
8%9%
1 039
1,342 1,3371,332
1,000
1,500
2,000FixedVoice
Dataservices
811 913 1,039
0
500
FY12 FY13 FY14
Revenue market shareRevenuemarketshare
FY1112 FY1213YTDDecDataservices 13% 14%Voiceservices 7% 7%
d
26Source:F&SNote:ThisreferstototaladdressableSMEmarketi.e.excludesnetworkintegration,VASandVSATservices
ManagedServices 7% 8%
LeadingCorporatebusinessplayerinTTMLGeographies
TTMLCorporatebusinessboastsof>20kconnectedbuildingsinCBDareasofMumbaithatserveasakeycompetitiveadvantage
C ti t i P d t t ti t ContinuetoincreaseProductpenetrationamongtopcorporates
SignificantfocusandattentionintheEnterpriseMobilityspace
NewcustomersaddedFY12,FY13
27
LeadingPrivatePlayerintheWirelineSegment
Leading Private Player in the Wireline space by Subscribers in Mumbai CircleLeadingPrivatePlayerintheWireline spacebySubscribersinMumbaiCircle
MumbaiCircle:TTMLandIndustrySubscribers TTMLhasasteadysubscribermarketshareof~18%
3,002 3,010 3,002 2,990 2,9883,010
3,510 18.1% 18.2% 18.3% 18.2% 18.2%20%
542 548 549 544 543510
1,010
1,510
2,010
2,510
,
u
b
s
c
r
i
b
e
r
s
(
'
0
0
0
)
4%
8%
12%
16%
..andinMaharashtraCircle
10OctDec'11 JanMar'12 AprJun'12 JulSep'12 OctDec'12
S
u
Industry TTML0%
4%
OctDec'11 JanMar'12 AprJun'12 JulSep'12 OctDec'12
MaharashtraCircle:TTMLandIndustrySubscribers TTMLhasbeenconsistentlyincreasingmarketshare
2,668 2,646 2,627 2,573 2,535
2,010
2,510
3,010
0
)
8.4% 8.8%9.1% 9.4%
9.7%
8%
10%
12%
224 233 238 242 246
10
510
1,010
1,510
2,010
O '11 J '12 A J '12 J l S '12 O '12
S
u
b
s
c
r
i
b
e
r
s
(
'
0
0
0
2%
4%
6%
8%
28
Source:TRAI
OctDec'11 JanMar'12 AprJun'12 JulSep'12 OctDec'12
Industry TTML
0%OctDec'11 JanMar'12 AprJun'12 JulSep'12 OctDec'12
Wireline Market Share : Subscriber base (Mumbai & ROM)
0 2% MarketShareDec'12 Net Adds Dec'127.3%
6.1%14.3%
0.2%
Airtel
/
161 266
4,620
90
NetAddsDec 12
72 1%
BSNL/MTNL
RelianceInfocomm
TataTele
Airtel BSNL/MTNL RelianceInfocomm
TataTele Vodafone
72.1% Vodafone 14,920Source:TelecomWatchReportforJan13
Wireline SubscribersMaharashtra Nov'12 Dec'12 Jan'13 Mumbai Nov'12 Dec'12 Jan'13
Airtel 70,284 70,312 70,357 Airtel 331,593 331,726 331,937
WirelineSubscribers
BSNL/MTNL 2,127,182 2,113,234 NA BSNL/MTNL 1,871,920 1,870,948 NA
RelianceInfocomm 102,336 102,069 101,817 RelianceInfocomm 235,063 235,596 236,042
TataTele 243,599 246,381 246,170 TataTele 540,890 542,728 546,146
29
Vodafone 2,550 2,520 NA Vodafone 6,540 6,660 NA
NetworkSnapshot:UbiquitousConnectivitywith9SwitchLocations
Mumbai ROMMumbai ROM
TatahasASONnetworklayerwith13ASONnodeseachhaving640Gaggregatecapacity.ThelayerisusedtoprovideMultipath(3path)protectiontoprovideuninterrupted
30
connectivity.
OneoftheLargestFiberPresenceinMumbai
TTMLsFiberNetworkinMumbai
ExtensiveFiber Buried fiber on arterial and access routes Large number of Fiber Connected buildings
rollout Switches deployed across Mumbai in allbusiness locations
Stateoftheart FTT technology, with last mile copper
connectivity DWDM technology on fiber backbone
Real time monitoring of fiber cuts in Mumbaito improve restoration time
Reliableto improve restoration time
Automatic Switchover of Optical Network(ASON) for multiple path redundancy
Centralised NMS 24*7*365 support
31
NetworkArchitecture
Customer Premises Outside Plant Local Access Metro Transport Network Metro Core Interconnect IP/MPLS Central Office
DSLAM
PoPBRAS/AAAServer
Policy Manager
BG-20B
STM1/4/16
Copper
ADSL 18 Mbps DS, 1 Mbps US
M41DSLAM-ADSL/VDSL/GPON
DS, 1 Mbps USVDSL Up to 50 Mbps 600 Mtrs
IP/MPLS
Internet
CESRBRAS
FTTH Partner Network
GPON Up to 100 Mbps
M41
STM1/4/16
Ethernet Up to 100 Mbps
Proactive Fiber Rollout
VoIP SoftswitchVoIP SBC
BoD Schedular
BoD Controller
Ethernet Ext/
Micro-ram
STM-1/4/16 Compatible TDM, L2oSDH (E-line, E-Tree etc), MoT,
Native IP with 9215 switches
Copper
32
EPON Up to 100 Mbps 100
Mtrs
MR-64 PortDSLAM-64/128/---/384
NetworkElements
Mum&ROM14,000kms Mum:7+lacs
CopperCapacities(DELs) Mum:2,200
ROM: 1600+ Mum:
DPs/MDF/Pillar
OpticalFiberNetwork
ROM:2.5+lacs
ROM:1600
DSLAMs
50,000+ ROM:10,000
Network
33
WirelineNetworkAssetBase
TotalSites SitesonFiberDLCs
deployed
%Utilization
POTs%Utilization
BRIs
Mum:2,200
Mum:750
Mum:1,900
Mum:50%
Mum:60%+, 00 750 ,900 60%+
ROM:4,500
ROM:500+
ROM:~1000
ROM:60%+
ROM:~60%
34
NetworkRingCapacity
Mum:~900 ROM:~400
70 70
STM1Rings
STM4Rings
STM16RingsRings Rings Rings
MMum:11000+
ROM:5,500+,
TotalNodes
35
Nodes
Geographical Reach
3,000buildingonUGfiber
10operatingclusters
30 000+30,000+copper
connectedbuilding
~10,000fiberconnectedbuildingbuilding
36
Enterprise Customer Base
LL/ILL~70,000
PRI/BRI & Broadband~100,000
PRI/BRI&Centrex250,000+
StandardStandardWireline150,000+
37
Note:ThefiguresrepresentthecustomerbaseattheendofJan13.
What Next: Network Augmentation to enhance customer experience
Highresilienceofnetworkarchitectureprovidesstrongplatformforscalability
Distributednetworkdesignoptimizestransmission costs
A
Servicestransmissioncosts
WiFionthemoveAccessNetwork
1)UpgradeandexpandTTLwireline networktoestablishlastmileconnectivity2)1000+projects/buildingslinedupfornewconnectivity
CoreNetwork
1)Backbonetransmissionupgradation tocreateGigi/IPaccessarchitecturetoserve100MbpsBB
3)CreatecapacityofadditionalPoTs,Broadbandports,PRI
38
throughEthernet
IndustryAccoladesforBuildingInnovativeCustomerOfferingsonaHighlyReliablePlatform
TataDoCoMo winstheBestcarrierinemergingmarketsawardatthe13thTelecomAsiaAwards
TataDoCoMo ratedthesecondmostpopularbrandintheBusinessStandardsBrandDerby2009
TRAIratesTTLastheCompanywiththe
TTLwinstheBestNetworkServiceQuality
LeastCongestedNetwork7consecutivetimes
awardattheCMAITelecomAwards2010
TTL wins the Consumer Charging Innovation award at the
TataPhoton+winstheGadgetoftheYearJurysChoice
TTLwinsthe ConsumerChargingInnovation awardattheGlobalTelecomsBusinessInnovationAwards2010foritsrealtimebillingsystems
awardattheNDTVTechLifeAwards2010foritsinnovativebroadbandonthemoveoffering
TataPhotonTVhasbeenratedasoneoftheTop10BrandLaunchesof2009bythe
39
p yBusinessStandard BrandDerby2009.
Note: The above accolades considers Tata DoCoMo brand on a pan-India level
Contents
OverviewofIndustryandTTML
L K Hi hli hTTML KeyHighlights
FinancialPerformance
40
KeyOperatingMetrics WirelessWireless Minutes on the Network: Reflects GrowingWirelessMinutesontheNetwork:ReflectsGrowing
GSMBusiness WirelessDataVolumes
4,8344,753 5,305 5,423
5,773 5,808
4 0005,0006,0007,000
)
1,8882,135 2,307
2,3722,603 2,639
2 000
2,500
3,000
3,500Growthof~40%
4,516 4,3953,879 3,9064,206
4,670
1,0002,0003,0004,000
p
'
1
1
e
c
'
1
1
a
r
'
1
2
n
'
1
2
p
'
1
2
e
c
'
1
2
(
M
n
,
0
500
1,000
1,500
2,000
1 1 2 2 2 2
(
T
B
)
FocusonQualityofSubscribers,reflectedinSteadilyG i VLR b ( % f T t l S b ib ) ResultinginIncreasingVLRARPU
J
u
l
S
e
O
c
t
D
e
J
a
n
M
a
A
p
r
J
u
J
u
l
S
e
O
c
t
D
e
CDMA GSM
J
u
l
S
e
p
'
1
1
O
c
t
D
e
c
'
1
1
J
a
n
M
a
r
'
1
2
A
p
r
J
u
n
'
1
2
J
u
l
S
e
p
'
1
2
O
c
t
D
e
c
'
1
2
GrowingVLRbase(as%ofTotalSubscribers) g g
51 6%58.1% 62.1%
68.3%73.1%
40%50%60%70%80%
2
6
2
2
6
6
2
7
1
2
7
6
2
6
8
2
7
8
200
250
300.
/
m
o
n
t
h
)
44.9%51.6%
0%10%20%30%40%
'
1
1
'
1
1
'
1
2
'
1
2
'
1
2
'
1
2
100
150
200
p
'
1
1
c
'
1
1
r
'
1
2
n
'
1
2
p
'
1
2
c
'
1
2
(
R
s
.
41
J
u
l
S
e
p
O
c
t
D
e
c
J
a
n
M
a
r
'
A
p
r
J
u
n
J
u
l
S
e
p
O
c
t
D
e
c
Note: The Data Volumes pertains to Large Screen only
J
u
l
S
e
p
O
c
t
D
e
c
J
a
n
M
a
r
A
p
r
J
u
n
J
u
l
S
e
p
O
c
t
D
e
c
GSMandWireline BusinesstoDriveGrowth
100%
Wirelinecontributes~26%tooverallrevenueswhileGSMcontributes~38%tooverallrevenuesofTTML
Significant revenueSignificant revenue
21%26% 26%
80%
90%
100% Significantrevenuestreamfromwirelinebusiness,drivenbystrongpresenceinenterprisemarket
Significantrevenuestreamfromwirelinebusiness,drivenbystrongpresenceinenterprisemarket
28%
32% 38%50%
60%
70%SharpincreaseinshareofGSM
businessinlinewithincreaseinmarket
SharpincreaseinshareofGSM
businessinlinewithincreaseinmarket
36%24% 18%
20%
30%
40%shareshare
51% 41%36%
15% 17% 18%
0%
10%
FY11 FY12 9MFY12CDMA Data CDMA Voice GSM Wireline
42
CDMAData CDMAVoice GSM Wireline
Source: Company financials
NetworkExpansiontoImproveQualityandExperience
GSM/CDMASites* GSM:RevenueperCellSite**
9,196 8,796
43%
45%
8,000
10,000
101,914
117,678120,000
140,000
t
h
5,795
3,138 3,254 3,08041.1%
41.6% 42.1%
37%
39%
41%
2,000
4,000
6,000
(
%
)
S
i
t
e
s
(
#
)
79,357
40,000
60,000
80,000
100,000
R
s
.
/
C
e
l
l
S
i
t
e
/
m
o
n
t
CDMA:RevenueperCellSite CDMADongleRevenue
35%0FY11 FY12 9MFY13
GSM CDMA ColocatedSites(RHS)0
20,000
FY11 FY12 9MFY13
R
270,387248,093 243,146
200,000
250,000
300,000
m
o
n
t
h
225
336
285
250
300
350
400
s
50,000
100,000
150,000
R
s
.
/
C
e
l
l
S
i
t
e
/
50
100
150
200R
s
.
C
r
s
43
Including ICR Sites** Excluding ICR Sites
0FY11 FY12 9MFY13
0FY11 FY12 9MFY13
KeyFinancialsRevenue AdjustedEBITDA*
23,16025,057
18,45519,78021,800
26,8004,975
5,604
4,130 4,0504 000
5,000
6,000
6,800
11,800
16,800
(
R
s
.
M
n
)
1 000
2,000
3,000
4,000
(
R
s
.
M
n
)
PBT KeyTakeaways
1,800FY11 FY12 9MFY12 9MFY13
0
1,000
FY11 FY12 9MFY12 9MFY13
4,6492,000
4,000
6,000
8,000
M
n
)
Improving Operational Performance
9MFY13 YoY revenue growth of 7.2%4,649
4,1505,176 5,435
8 000
6,000
4,000
2,000
0
(
R
s
.
M 9MFY13 adjusted EBITDA Margin of 20.5%3,540 3,076 3,855
44
NetimpactduetoSaleofTowerassets/OtheroneoffPBT PBTwithout 3GImpact
8,000FY11 FY12 9MFY13
*Excludesonetimeadjustments
SummaryP&L Quarterly
Q3FY12 Q2FY13 Q3FY13 QoQ YoYQ3FY12 Q2FY13 Q3FY13 QoQ YoY
Mn
15.5 12.1 EOP Subscribers 11.0 91% 71%
Rs. Mn
Income
6,247 6,430 Telecommunication Services 6,509 101% 104%
91 91 Other Income 142 155% 156%
6,338 6,521 Total 6,651 102% 105%
4,844 5,432 Operations and Other Expenses 5,026 93% 104%
1,494 1,089 EBITDA (excluding Provisions) 1,625 149% 109%
23.6% 16.7% EBITDA Margin 24.4%
133 - Prov for Contingencies 723 NA 544%
1,362 1,090 EBITDA (including Provisions) 902 83% 66%
1 302 1 286 Finance & Treasury Charges 1 404 109% 108%1,302 1,286 Finance & Treasury Charges 1,404 109% 108%
112 160 Foreign Exchange Losses (Gains) (22) -14% -20%
1,394 1,480 Depreciation & Amortisation 1,492 101% 107%
(1,446) (1,837) PAT (1,972) 107% 136%
45
( ) ( ) ( )
SummaryBalanceSheet
Rs. Mn FY11 FY12 H1FY13Rs. Mn FY11 FY12 H1FY13Sources of FundsShareholders' Funds (A) (6,164) (11,340) (14,804)
Share Capital 18,972 18,972 18,972 Reserves & Surplus (25,136) (30,312) (33,776)Reserves & Surplus (25,136) (30,312) (33,776)
Non Current Liabilities (B) 21,358 48,359 48,913
Current Liabilities (C) 43,302 24,279 27,176 ( ) , , ,
Total (A+B+C) 58,496 61,298 61,285 Application of FundsFixed Assets (D) 49,311 50,506 49,488Other Non-current Assets (E) 498 539 2,069
Current Assets (F) 8,688 10,253 9,729
Total 58,496 61,298 61,285
46
GoingForward
Leverage wireline and fiber assets to strengthen leadership in enterprise Leverage wireline and fiber assets to strengthen leadership in enterprise
Sustain leadership position in wireless data
Aggressively grow GSM voice business Aggressively grow GSM voice business
Focus on High Value Customers & postpay
Encash opportunities on cross sell and up sellpp p
Improve margins from strengthening of tariffs
Continue to leverage cost advantages of an integrated technology play
Leverage branded retail presence target 50% of the HVC and postpay business
from retail
Create a pipeline of emerging businesses (video surveillance, mobile advertising,
m commerce)
47
ThankYou
48