29
Safe harbor Neither the information nor any opinion expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any security issued by the company. This presentation contains predictions, estimates or other information regarding the Company's operations which are forward looking in nature. While these forward looking statements represent our best current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially and may involve risk and uncertainty. This presentation is prepared for general purposes only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person. No liability for any loss will arise with the company as a result of the action taken on the basis of information contained herein. For a discussion of the risks and uncertainties that may cause results to differ, you should review GTL’s filings with stock exchanges, including the annual report and quarterly disclosures. Global Group An Introduction January 2016

Global Groupghc.in/Downloads/GlobalGroupPresentation07Jan16.pdf · Global Group. An Introduction. January 2016. ... connectivity by offering quality & green network solutions to telecom

Embed Size (px)

Citation preview

Safe harbor

• Neither the information nor any opinion expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any security issued by the company. This presentation contains predictions, estimates or other information regarding the Company's operations which are forward looking in nature. While these forward looking statements represent our best current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially and may involve risk and uncertainty. This presentation is prepared for general purposes only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person. No liability for any loss will arise with the company as a result of the action taken on the basis of information contained herein.

•For a discussion of the risks and uncertainties that may cause results to differ, you should review GTL’s filings with stock exchanges, including the annual report and quarterly disclosures.

Global Group

An Introduction

January 2016

Group Vision

“Provide affordable universal connectivity by offering quality

& green network solutions to telecom carriers across the

world”

2

India’s Largest Network Services Player

Global Group Structure

GTL InfrastructureLimited (GIL)

Tower Company in India

Global Holding Corporation (GHC) : Holding Company

Chennai Network InfrastructureLimited (CNIL)

Tower Company in India

GTL

Limited ( GTL)

The Group Profile

Awards Won

Presence

Customers

Pan-India and international operations spread across geographies like Asia Pacific, Europe and Middle East

Telecom operators, OEMs and telecom tower companies

Won more than 35 awards and accolades for excellence in Business, CSR and Corporate Governance

Vision“Provide affordable universal connectivity by offering quality & green network solutions to telecom carriers across the world”

Track record 29 years of service in the telecom industry

Financialperformance

The Group has revenues in excess of US$ 500 million, Balance sheet size of over US$ 3 billion (FY 2015)

Legal structure Telecom

Towers and Network Services housed in separate listed vehicle’s in India

Employees Provides employment to more than c.30k people across more than 20 nationalities

GTL Limited

Telecom

Business Network Services

Global Headquarters Mumbai, India

Founded 1987

Global Presence

Domain Expertise

Operations spread across Asia- Pacific,Middle East, South Asia and Europe

GTL at a GlanceGTL at a Glance

Stock Listed on BSE, NSE

Total incomeRs. 2,586.59 Cr. (US$ 419.10 Mn) for the FY 2014-15.

Service Offerings

GTLGTL’’ss Service PortfolioService Portfolio

Value

Chain

Managed Services

Network Operations & Maintenance

Network Deployment

Network Planning & Design and

Professional Services

Energy Management

Benchmarking & Optimization

Network ServicesNetwork Services

Network Planning & Design, Operations & Maintenance

Network Services for

Telco, OEMs & Tower companies

Network Deployment

•Nominal cell planning•CW test and model tuning•Radio network planning•Transmission network planning

•Site / Construction Engineering•Management Services •Site Implementation •Acceptance Services •Site Documentation

•Network Monitoring & Operations

•Network Field Maintenance•Technical Support & Process

Management

•Energy Audits •Process improvements•Technology up gradation•Alternate sources of energy

Energy Management

•Network planning & Optimization

•Network Build •Network O&M

Managed ServicesBenchmarking & optimization

•Network Optimization•Network Audit & Benchmarking• IBS planning & Design •Virtual planning & Optimization

Europe:UK Middle East:

UAE KSA

South AsiaIndia Nepal

Asia–Pacific:Philippines

Our PresenceOur Presence

Customer Snapshot Customer Snapshot Operators

OEM’s

• Partial List of Customers • The logos used here are the trademarks of respective companies and are used here for representation purpose only

GTL Infrastructure Limited

Telecom Industry - Snapshot

ParametersCurrent Status*

Wireless Telecom Subscribers (mn) 988.69

Teledensity

(%) 78.37

No. of Circles 23

Net add/Month (mn) 5.48

Average Minutes of Usage per User# 383

Average Revenue Per User (US$)# 1.9

Source: TRAI Reports

*As on August 2015

#As on March 2015

Exchange rate taken at $1 = Rs

64

Snapshot of the Total Spend and Spectrum held by operators Pre and Post 2015 Auction

Source: Press Articles in Economic Times & Livemint

Telecom Industry – Spectrum Auction Spend

Operator Total Spend (US$ in

Bn)

Spectrum holding of Operators before 2014 Auction (in MHz)

800 MHz

900 MHz

1800 MHz

2100 MHz 2300 MHz

Vodafone 2.12 79.40 101.00 45.00

Bharti 2.69 91.60 84.65 70.00 80.00

Idea 1.30 59.00 80.30 55.00

R Com 1.43 92.50 39.80 73.20 60.00

R Jio 2.14 440.00

Aircel 1.57 21.00 85.40 65.00 160.00

Tata Tele 0.98 72.50 79.20 50.00

Others 2.80 93.75 146.20 143.20 110.00 1080.00

Total 15.03 258.75 437.00 646.95 455.00 1760.00

Operator Total Spend (US$ in

Bn)

Spectrum with Each Operator post 2015 Auction (in MHz)

800 MHz 900 MHz 1800 MHz

2100 MHz

2300 MHz

Vodafone 9.72 82.60 145.60 75.00

Bharti 10.60 116.40 185.05 105.00 80.00

Idea 8.17 59.00 151.10 60.00

R Com 2.17 118.75 10.00 80.20 60.00

R Jio 5.66 48.80 28.00 518.80

Aircel 1.98 21.00 103.60 65.00 160.00

Tata Tele 2.29 83.75 81.80 50.00

Others 2.95 44.95 139.40 126.60 110.00 1080.00

Total 43.54 296.25 428.40 910.95 525.00 1838.80

Snapshot Pre 2014 and 2015 Auctions

Snapshot Post 2014-2015 Auctions

Telecom Industry - Growth Phase…

Source: IBEF Telecommunication August 2013

Advantage India

Attractive opportunities

Telecom penetration in the nation’s rural markets is expected to increase to 70% by 2017 from the 48% as of

March 2015.

India continues to be one of the top 10 broadband markets in 2015

Policy Support

The Government of India has been proactive in its efforts to transform India into a global telecommunications hub; prudent regulatory support has helped

National Telecom Policy 2012 proposes unified licensing, full MNP and free roaming

High Ratings

The Country has a strong telecommunication infrastructure

In Telecommunication ratings, India ranks ahead of its peers in the West

& Asia.

Robust demand

India is the world’s second-largest telecommunications market, with c.970 million subscribers as of March 2015

With 70% of population in rural areas, the rural market will be a growth driver. The growth of 3G & 4G data facilities will also aid growth.

Expected future trends in the wireless segment in India:

Increase in teledensity

from ruralexpansion of telecom operators

Declining tariffs of 3G data plansNationwide roll out of 4G servicesCheap availability of smartphonesExplosion in data services from adoption of 3G/4G, growth to outstrip other Asian emerging marketsRegulatory clarity to step-up consolidation (including M&A activity) amongst players in the segment

Subscriber Base : c.990

Mn

2015

Subscriber Base : 1.0Bn

+

2018 and beyond

Telecom Industry - Growth PhaseThe Growth in Mobile Data usage along with Smartphone penetration has led to exponential growth in subscriber base in short span of time

•Average Data consumption per user•2G –

216 MB•3G –

688 MB

•CAGR based on Subscriber base in 2014 from 2009 for 3G is 144%

•Following factors are expected to lead to growth in 3G use and fast adoption of 4G

•Increasing Network Coverage•Falling Data prices•Shift in customer preference for higher network speed•Governments ‘Digital India’

initiative

•By 2020, 3G and 4G will equally dominate the Indian Telecom Market

Source: Deloitte Indian Tower Industry Report – June 2015

Subscriber base by Technology in millions:

Telecom Tower Industry

Telecom Tower Industry – Domestic Peers

Approximately 400,000 Towers are present in India and this number is expected to increase at a CAGR of 3% over next 4-5 years

The industry average Tower Tenancy ratio stands at 1.77 The industry (only independent ) average Tower Tenancy Ratio stands at 1.93

Source: Deloitte Indian Tower Industry Report – June 2015

INDUSINDUS

BHARTI

BHARTIBSNL BSNL

REL_INFRAREL_INFRA

VIOM VIOM

GILGIL

ATCATC

TOWER VISION

TOWER VISION

OTHERSOTHERS

Telecom Tower Industry – Global Peers

Source: Deloitte Indian Tower Industry Report – June 2015

Expected increase in

wireless subscribers

Traffic offloading to micro

sites

Increase in 3G and 4G adoption post auction of

spectrum

New network roll

outs

Demand for tower sharing due to Capexconstraints

Increase in tenancies

Growth drivers for Tower Industry…

Source: Deloitte Indian Tower Industry Report – June 2015

Macro Small Cell Wi-Fi

Growth drivers for Tower Industry…Digital India Opportunities :

Source: Government of India – Ministry of Urban Development

Source: Deloitte Indian Tower Industry Report – June 2015

Telecom Tower Industry – Future Trends

Projected 4G SitesProjected 3G Sites

Number of Sites and Tenancy RatioProjected Industry Average Tenancy Ratio

Source: Deloitte Indian Tower Industry Report – June 2015

GIL and CNIL combined at a Glance…

Business Telecom Towers

Presence

GIL Listed on BSE (Code –

532775), NSE (Code –

GTLINFRA)

Pan India

Tower Portfolio 27,839 towers

Customers All Telecom Operators in India

Tenancy Ratio 1.7x on occupied towers and 1.6x on overall portfolio of towers

Largest Independent and Neutral Tower Company in India

Key Operating Matrix:

Status Independent and Neutral

Tower portfolio c.28k towers, GBT (70%) and RTT (30%).

Pan India Presence All 23 telecom circles

Capacity RTT: c.3 Tenants, GBT: c4 Tenants

Tower Ageing average is only c. 7 years, this is lower than its peers

Tenants & Tenancy Over c.44k tenants; 1.71 Tenancy Ratio on occupied towers Substantial potential for tenancy growth

Inherent benefit Lower opex

ratio vis-à-vis peers

Key Financial Matrix

CAGR Revenue 8.6 %

CAGR EBITDA 11.7%

Key Business Matrix

Towers Tenants Tenancy Ratio

c.113,008 c.233,488 2.0x

c.61,600 c.67,500 1.1x

c.50,000 c.92,000 1.8x

c.42,000 c.96,600 2.3x

c.35,905 c.69,137 1.9x

27,839 43,775 1.6x

Source: Company websites & disclosures, Approximations

6%

2%

3%

8%

12%

10%

18%

30%

Others

Tower Vision

American Tower

Global Group

Reliance Infratel

Bharti

Infratel

BSNL/MTNL

Indus Tower

0% 10% 20% 30%

Market share of Tower Companies in India(As on June 2015)

Viom 11%

Peer Comparison

Source:

Deloitte Indian Tower Industry The Future Is Data –

June 2015

Group Customer Snapshot

Note: Partial List of Customers The logos used here are the trademarks of respective companies and are used here for representation purpose only

Awards & Recognition

• GTL Infra won “Innovative Infrastructure Company of the year”

2009 by CNBC TV18•

GTL Infra rated “Top Independent Infrastructure Provider of India”

Award by V&D•

GTL received Ramkrishna

Bajaj National Quality Award for Business Excellence•

GTL’s

Operations in Middle East, Africa & Canada received awards from

Huawei•

GTL ranked # 1 Telecom Turnkey company of the year –

V&D 100 in 2008, 2009 and 2010

Business Excellence

GTL and GTL Infra have received Greentech

Environment Excellence Award in 2010

GTL Foundation received Golden Peacock Award for Innovation in Social

Responsibility

GTL received Pegasus Award for Social Responsibility

GTL received enterprise Asia’s “Green Leadership”

Award for its energy management

initiatives

Corporate Social Responsibility

GTL Featured in S&P’s

ESG India Index•

GTL received “Certificate for Strong commitment”

from CII ITC Center of excellence for

Sustainable Development•

GTL wins “World Class Award”

from International Asia Pacific Quality Organisation

Corporate Governance & Excellence

CSR@ Global GroupCSR@ Global Group

Education Disability

• Gyanjyot(Financial Assistance Program)

• Gyan IT (Spreading IT literacy among rural areas)

• KNOW Bus(Mobile Computer lab)

• Antarjyot(Education for Peace)

• Netra (Advanced Computer

Lab for Blind), (Support to Cricket Association for Blind of Maharashtra)

Health

• Arogya(Mobile health van in Rural Areas)

• Emergency Medical Assistance(Curative medical care)

• Blood / Eye Donation

Community

• VKC(Village Knowledge Center)

• Pralay(Supporting victims of natural calamities)

Thank you

Contact Information:E-Mail : [email protected]

Registered Office : 201-A, 2nd Floor, Janmabhoomi Chambers, Walchand Hirachand Marg, Ballard Estate, Mumbai, 400038, Maharashtra, India.www.ghc.in CIN : U65990MH1994PTC076078