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<strong>Reliance</strong> <strong>Communications</strong><br />
CLSA Inves<strong>to</strong>rs’ Forum<br />
Hong Kong<br />
September 2007
Forward looking statements – Important Note<br />
This presentation and the discussion that follows may contain “forward looking<br />
statements” by <strong>Reliance</strong> <strong>Communications</strong> Ltd (“RCOM”) that are not his<strong>to</strong>rical in nature.<br />
These forward looking statements, which may include statements relating <strong>to</strong> future<br />
results of operation, financial condition, business prospects, plans and objectives, are<br />
based on the current beliefs, assumptions, expectations, estimates, and projections of<br />
the direc<strong>to</strong>rs and management of RCOM about the business, industry and markets in<br />
which RCOM operates. These statements are not guarantees of future performance, and<br />
are subject <strong>to</strong> known and unknown risks, uncertainties, and other fac<strong>to</strong>rs, some of which<br />
are beyond RCOM’s control and difficult <strong>to</strong> predict, that could cause actual results,<br />
performance or achievements <strong>to</strong> differ materially from those in the forward looking<br />
statements. Such statements are not, and should not be construed, as a representation<br />
as <strong>to</strong> future performance or achievements of RCOM. In particular, such statements<br />
should not be regarded as a projection of future performance of RCOM. It should be<br />
noted that the actual performance or achievements of RCOM may vary significantly<br />
from such statements.<br />
2 of 51 confidential
Contents<br />
<br />
<br />
<strong>Reliance</strong> ADA Group<br />
<strong>Reliance</strong> <strong>Communications</strong><br />
- Indian Telecom Sec<strong>to</strong>r<br />
- Business Segments<br />
- Financials<br />
- Key Recent Developments<br />
3 of 51 confidential
<strong>Reliance</strong> ADA Group<br />
The vision of one man<br />
If you can dream it<br />
You can Do it<br />
Our legendary founder<br />
Sh. Dhirubhai Hirachand Ambani<br />
28 th December 1932 - Forever<br />
4 of 51 confidential
<strong>Reliance</strong> ADA Group<br />
Leadership Position in highest growth sec<strong>to</strong>rs<br />
<br />
<br />
<br />
Over 100 million individual cus<strong>to</strong>mers - 1 in every 10 Indians<br />
7 million shareowners<br />
100,000 young, trained and motivated people<br />
Mobile Wireless<br />
Enterprise Broadband<br />
Global – Voice/Data<br />
Retail S<strong>to</strong>res<br />
Generation<br />
Transmission<br />
Distribution<br />
Trading<br />
EPC<br />
Film Production/<br />
Processing/Distribution<br />
Multiplexes<br />
FM Radio Stations<br />
Gaming & Networking<br />
Portals<br />
Mutual Funds<br />
Life/General Insurance<br />
Broking & Distribution<br />
Investments<br />
Consumer Finance<br />
Exploration &<br />
Production<br />
Coal Bed Methane<br />
Fuel Sourcing/Trading<br />
Transportation<br />
Infrastructure<br />
Mumbai Metro<br />
Special Economic Zone<br />
Roads<br />
Bridges<br />
Real Estate Development<br />
Strong presence across high-growth consumer facing businesses<br />
5 of 51 confidential
<strong>Reliance</strong> ADA Group<br />
<strong>Reliance</strong> ADA Group – Key financials<br />
Market capitalization Rs 175,000 Cr $43 bn # 3<br />
Assets<br />
Rs 50,000 Cr<br />
$12bn<br />
# 3<br />
Net worth<br />
Rs 41,000 Cr<br />
$10bn<br />
# 3<br />
Operating cash flow<br />
Rs 10,000 Cr<br />
$2.5bn<br />
# 3<br />
Profit after tax<br />
Rs 6,000 Cr<br />
$1.5bn<br />
# 4<br />
Net debt<br />
Nil<br />
Nil -<br />
Among India’s <strong>to</strong>p 3 business groups<br />
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<strong>Reliance</strong> ADA Group<br />
Unprecedented value creation<br />
11x increase<br />
US$ 43 billion<br />
US$ XX bn<br />
US$ 4 billion<br />
Market cap<br />
at June 2005<br />
Market cap<br />
at present<br />
As on September 13, 2007<br />
Value creation of US$40 bn in just two years<br />
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<strong>Reliance</strong> ADA Group<br />
All group companies have outperformed the Sensex<br />
280<br />
260<br />
Rebased <strong>to</strong> 100<br />
240<br />
220<br />
200<br />
180<br />
160<br />
140<br />
120<br />
100<br />
Sensex<br />
80<br />
Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07<br />
<strong>Reliance</strong> <strong>Communications</strong> Reliace Energy <strong>Reliance</strong> Natural Resources <strong>Reliance</strong> Capital Sensex<br />
Share price performance (%)<br />
As of Sep 13, 2007<br />
<strong>Reliance</strong><br />
<strong>Communications</strong><br />
<strong>Reliance</strong> Energy<br />
<strong>Reliance</strong> Natural<br />
Resources <strong>Reliance</strong> Capital Sensex<br />
1 year returns 70% 91% 160% 163% 30%<br />
Source: Bloomberg<br />
8 of 51 confidential
<strong>Reliance</strong> ADA Group<br />
High liquidity across group companies<br />
MSCI Sensex Nifty F&O<br />
<strong>Reliance</strong> <strong>Communications</strong> <br />
<strong>Reliance</strong> Energy<br />
<strong>Reliance</strong> Capital<br />
Adlabs Films<br />
<br />
<br />
<br />
<br />
<br />
Foreign portfolio inves<strong>to</strong>rs own 20% in group s<strong>to</strong>cks valued at US$ 8 bn<br />
Daily s<strong>to</strong>ck market turnover of Group companies >US$400 mn<br />
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<strong>Reliance</strong> <strong>Communications</strong><br />
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Indian Telecom Sec<strong>to</strong>r<br />
The largest telecom growth opportunity in the world…<br />
Parameter Current status Global position<br />
Telecom subscribers 229 mn In the <strong>to</strong>p 5<br />
Wireless subscribers 189 mn 3 rd largest<br />
Wireless Minutes of Usage ~ 471 minutes Second highest<br />
Broadband subscribers 2.5 mn Lowest in the world<br />
Source: COAI, AUSPI, TRAI<br />
…even after adding 200 mn subscribers over the last 4 years<br />
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Indian Telecom Sec<strong>to</strong>r<br />
Among the lowest penetration rates in the world<br />
140%<br />
120%<br />
Low wireless penetration…<br />
117.0%<br />
…Leading <strong>to</strong> strong revenue growth<br />
60%<br />
55.5%<br />
50%<br />
100%<br />
80%<br />
60%<br />
79.0% 79.2% 79.6%<br />
40%<br />
30%<br />
40%<br />
20%<br />
16.9%<br />
37.3%<br />
20%<br />
10%<br />
9.2%<br />
12.0%<br />
15.3%<br />
0%<br />
0%<br />
0.4% 1.1%<br />
India China France US Japan UK<br />
France Japan UK US China India<br />
Source: Merrill Lynch Global Wireless Matrix; March ended 1Q07<br />
March ended 1Q07 over March ended 1Q06<br />
Low penetration + High Revenue growth = Huge opportunity<br />
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Indian Telecom Sec<strong>to</strong>r<br />
Mobile subscribers expected <strong>to</strong> cross 500 mn in 3 years…<br />
600<br />
44%<br />
50%<br />
Mobile Subscribers (mn)<br />
500<br />
400<br />
Penetration<br />
CAGR 35%<br />
30%<br />
38%<br />
444<br />
530<br />
40%<br />
30%<br />
300<br />
22%<br />
348<br />
20%<br />
200<br />
14%<br />
253<br />
100<br />
9%<br />
161<br />
10%<br />
96<br />
0<br />
2006 2007 2008E 2009E 2010E 2011E<br />
0%<br />
Year end March 31<br />
Source: Industry estimates<br />
…even then t<strong>here</strong> will be 800 mn unserved people in India<br />
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Indian Telecom Sec<strong>to</strong>r<br />
Net annual subscriber adds have now surpassed China<br />
Net annual wireless additions (million)<br />
90<br />
80<br />
70<br />
60<br />
50<br />
62<br />
66<br />
59<br />
68<br />
65<br />
India<br />
84<br />
77<br />
China<br />
40<br />
30<br />
20<br />
18<br />
22<br />
31<br />
10<br />
0<br />
2003 2004 2005 2006 2007E<br />
Source: Industry research<br />
Wireless subscribers – India: 200 million vs. China: 500 million<br />
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Indian Telecom Sec<strong>to</strong>r<br />
Among highest EBITDA margins globally…<br />
70%<br />
EBITDA Margins<br />
60%<br />
50%<br />
40%<br />
30%<br />
28.3% 30.3% 33.2% 35.1% 38.5% 40.1% 41.4% 41.7% 42.2%<br />
51.3% 51.8% 54.0%<br />
20%<br />
10%<br />
0%<br />
British Telecom<br />
Deutsche<br />
Verizon<br />
AT&T<br />
Vodafone<br />
KPN<br />
Bharti<br />
Telstra<br />
<strong>Reliance</strong><br />
China Telecom<br />
Singtel<br />
China Mobile<br />
…despite the lowest tariffs<br />
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RCOM: India’s Largest Integrated Telecom Company<br />
Personal Business<br />
Global Business<br />
Enterprise Business<br />
Infrastructure Business<br />
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Leading position in the Asian telecom market<br />
Opera<strong>to</strong>r Market cap Subscribers<br />
China Mobile US$ 269 bn 338 mn<br />
China Telecom US$ 45 bn 244 mn<br />
Singtel US$ 39 bn 52 mn*<br />
Bharti Airtel US$ 39 bn 48 mn<br />
<strong>Reliance</strong> <strong>Communications</strong> US$ 28 bn 36 mn<br />
* Includes proportionate cus<strong>to</strong>mers of affiliates<br />
Ranks among <strong>to</strong>p 5 telecom companies in Asia<br />
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Among the 3 most valuable private sec<strong>to</strong>r companies<br />
in India<br />
Market Capitalisation<br />
+ 210%<br />
De-merged<br />
entity – M-cap<br />
US$ 20 bn<br />
US$ 28 bn<br />
US$ XX bn<br />
US$ 9 bn<br />
As on 13 September 2007<br />
Market cap<br />
at March 2006<br />
Market cap<br />
at present<br />
Created shareholder wealth of US$ 19 billion in 19 months<br />
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Who do we serve<br />
<br />
Over 36 million cus<strong>to</strong>mers in India<br />
<br />
Over 1 million individual global cus<strong>to</strong>mers<br />
<br />
Over 200 major global carriers<br />
<br />
Over 250 MNCs<br />
<br />
Over 800 out of Top 1,000 Indian large enterprises<br />
<br />
Over 10,000 Indian SMEs<br />
Unparalleled cus<strong>to</strong>mer franchise in India and globally<br />
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Dominant position across multiple segments<br />
# Largest mobile network in the country: 85% population coverage<br />
Largest carrier of wireless data: >60% market share<br />
Largest in enterprise data services: >50% market share<br />
Largest private PCO opera<strong>to</strong>r: >50% market share<br />
Largest carrier of international voice: >40% market share<br />
Largest IP enabled optic fiber cable network in the world<br />
Largest retailer of wireless handsets<br />
Largest independent wireless infrastructure provider<br />
“Youngest, Fastest, Largest”<br />
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Partnerships with global leaders<br />
Network<br />
IT<br />
Best in class technologies<br />
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Business Segments: Wireless<br />
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Wireless Business<br />
One of the fastest growing wireless companies globally<br />
Among India’s <strong>to</strong>p 2 opera<strong>to</strong>rs with over 34 mn wireless subscribers<br />
- Prepaid subscriber additions drive growth - 85% of <strong>to</strong>tal subscribers<br />
<br />
Key Performance Indica<strong>to</strong>rs<br />
- EBITDA margins among the highest in the industry ~40%...<br />
- … despite the lowest tariffs in the world…<br />
- … backed by the highest Minutes Of Usage – 500 million minutes per day<br />
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Wireless Business<br />
Unrivalled wireless multimedia platform<br />
<strong>Reliance</strong> Mobile<br />
World<br />
<br />
<br />
Unparalleled user experience in India<br />
“<strong>Click</strong>, Browse and Select”<br />
Multi-media content delivery available on the entire range<br />
of handsets<br />
Platform, phones and network superiority<br />
<br />
<br />
Over 20 million multimedia enabled phones active<br />
Only platform globally <strong>to</strong> support WAP, Java, BREW, BREW<br />
VLE, Windows Mobile and Blackberry<br />
Widely used services - popular across all segments<br />
<br />
<br />
<br />
Top 10 global opera<strong>to</strong>r on mobile data/content penetration<br />
Homogenous usage across demographics and geographies<br />
Over 200,000 Indian and international content titles<br />
>4 times data-enabled phones as all GSM handsets put <strong>to</strong>gether<br />
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Wireless Business<br />
Largest distribution network of 2,000 exclusive retail<br />
s<strong>to</strong>res & >500,000 third party retailers<br />
Largest chain of company<br />
owned and franchised s<strong>to</strong>res<br />
Provides high level of branding<br />
and visibility<br />
Services include<br />
- Multi-city, multi-player gaming<br />
- High speed internet surfing<br />
- Video conferencing<br />
- Wireless activation<br />
- Cus<strong>to</strong>mer service support<br />
- Branded Java Green coffee shop<br />
<br />
<br />
Channel Dimensions<br />
Channel strength of 2000 distribu<strong>to</strong>r &<br />
>500,000 retailers<br />
Presence in >23,000 <strong>to</strong>wns<br />
By far the largest retail distribution network in the industry<br />
25 of 51 confidential
Wireless Business<br />
World’s largest network roll-out<br />
<br />
Covering almost a billion Indians<br />
- Towers portfolio up from 14,000 <strong>to</strong> 40,000<br />
- Coverage from 10,000 <strong>to</strong> >23,000 <strong>to</strong>wns<br />
- Population coverage expansion from 55% <strong>to</strong> 85%<br />
- Almost 100% coverage of railway routes<br />
- Almost 100% coverage of national highways<br />
Wireless coverage<br />
<br />
Ability <strong>to</strong> host on 8,000 third party <strong>to</strong>wers rent<br />
free for the first 5 years<br />
Coverage and connectivity leadership<br />
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Wireless Business<br />
Pioneered wireless affordability in India<br />
<br />
<br />
Driven call rates down from >10 cents <strong>to</strong> US$ 50<br />
Handset prices<br />
>10 cents<br />
Wireless Business<br />
Recent innovations<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Bundled Offerings: handsets & talk time<br />
Lifetime validity schemes<br />
Affordable roaming tariffs & connectivity<br />
Pioneer in unlimited on-net calls<br />
First “World Edition” Dual Standard CDMA / GSM<br />
Blackberry in India<br />
- Bloomberg access across the world<br />
- First <strong>to</strong> offer internet based trading on Blackberry<br />
M-Commerce initiatives on multimedia platform<br />
Micro recharge vouchers for less than 25 cents<br />
What RCOM does <strong>to</strong>day, the industry does <strong>to</strong>morrow<br />
28 of 51 confidential
Wireless Business<br />
New growth opportunities…<br />
<br />
RCOM can launch GSM services in all 15 additional circles & create national GSM<br />
footprint at a nominal entry fee of 30% market share in dual technology circles vs 20% in rest of the country<br />
- RCOM can replicate this success nationwide <strong>to</strong> further improve growth momentum<br />
RCOM network coverage roll out <strong>to</strong> result in reduced license fee from 5% <strong>to</strong> 3%<br />
of revenue - savings of US$ 100 mn<br />
<br />
<br />
Recommendations on rollout obligations and spectrum allocation <strong>to</strong> increase<br />
passive infrastructure sharing – Towerco <strong>to</strong> benefit<br />
No impact on RCOM’s operations and growth plans from:<br />
- Increase in subscriber criteria for spectrum allocation and<br />
- Increase in spectrum charges for >8 MHz spectrum<br />
- Regula<strong>to</strong>r’s intent <strong>to</strong> distribute scarce GSM spectrum in line with global benchmarks may<br />
impact GSM incumbents<br />
…from proposed regula<strong>to</strong>ry changes<br />
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Business Segments: Global (Voice + Data)<br />
30 of 51 confidential
Global Business<br />
At the forefront of US$ 90 bn enterprise data opportunity<br />
Global<br />
Infrastructure<br />
Cus<strong>to</strong>mer<br />
Relationships<br />
<br />
<br />
<br />
<br />
<br />
Flag NGN - world’s largest IP network over<br />
submarine cable system<br />
Capacity <strong>to</strong> carry 2.5 bn voice calls, 300 mn<br />
web chats and 52 mn video chats<br />
Over 200 international telco cus<strong>to</strong>mers of FLAG<br />
1,000 enterprise cus<strong>to</strong>mers of Yipes<br />
850 out of 1,000 corporates in India<br />
<br />
Moving up in the value chain from pure bandwidth provider <strong>to</strong> value<br />
added service provider<br />
FY2003<br />
FY2007<br />
Value added<br />
services<br />
Margin: 30-60%<br />
35%<br />
45%<br />
Capacity<br />
services<br />
Margin: 15-30%<br />
65%<br />
55%<br />
Will change the way the world communicates & does business<br />
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Global Business<br />
World’s largest IP enabled optic fiber cable<br />
<br />
Significant asset base drives leadership in voice and data segments<br />
230,000 Rkms of submarine and terrestrial optic fiber cable<br />
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Global Business<br />
Achievements<br />
<br />
Leadership position in voice<br />
- #<br />
1 International wholesale carrier<br />
- #<br />
1 ILD and NLD opera<strong>to</strong>r in India<br />
- #<br />
1 US <strong>to</strong> India calling service for retail<br />
cus<strong>to</strong>mers<br />
Largest carrier of international voice: >40%<br />
market share<br />
<br />
<br />
Only Indian company with > 1 million retail<br />
cus<strong>to</strong>mers in the US<br />
Clients include several international<br />
industry leaders and telcos<br />
Acquired leadership rapidly across all segments<br />
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Global Business<br />
Rolling out Next Generation Network (NGN)<br />
<br />
US$ 450 mn Falcon cable in the Middle East commissioned last year has<br />
expanded FLAG’s presence from 28 <strong>to</strong> 40 countries<br />
- Financed through long term bandwidth sales<br />
<br />
US$ 1.5 bn FLAG NGN project <strong>to</strong> build 50,000 Kms cable<br />
- Connecting 4 underserved segments with strong growth potential<br />
- FLAG will connect 60 countries representing 90% of global population<br />
TRANS PACIFIC<br />
FA-1<br />
FEA<br />
MED<br />
FNAL<br />
FALCON SOUTH EAST<br />
AFRICA<br />
PACIFIC<br />
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Yipes Acquisition<br />
RCOM’s acquisition of Yipes <strong>to</strong> accelerate growth<br />
<br />
Yipes is a leading Ethernet services company in the US<br />
Yipes is highly profitable, with gross operating margins at 55%<br />
<br />
Plan <strong>to</strong> further expand Yipes network in US and in 40 new markets globally<br />
Seattle<br />
San Francisco<br />
San Jose<br />
Los Angeles<br />
San Diego<br />
Denver<br />
Dallas<br />
Hous<strong>to</strong>n<br />
Chicago<br />
Bos<strong>to</strong>n<br />
New York<br />
Philadelphia<br />
Washing<strong>to</strong>n DC<br />
Miami<br />
22,000 Metro RKms<br />
Demand growth: 32% p.a.<br />
Acquired at an attractive<br />
price of US$ 300 mn<br />
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Yipes Acquisition<br />
Yipes industry vertical coverage<br />
Financial Legal Government Healthcare<br />
<br />
Solutions for 4 verticals, accounting for 50% of ethernet market<br />
Nearly 1,000 blue-chip cus<strong>to</strong>mers in US<br />
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Business Segments: Enterprise<br />
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Enterprise Business<br />
Market <strong>to</strong> grow by US$ 8 bn in the next 3 years alone<br />
Broadband market segment revenue (US$ Bn)<br />
US$ 13 bn<br />
US$ 5.5 bn<br />
+ US$ 8 bn<br />
FY06<br />
FY09F<br />
Household S<strong>MB</strong> + SME Enterprise<br />
Source : Industry Report<br />
Underserved market: Provides strong growth opportunity<br />
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Enterprise Business<br />
Strong in-roads in<strong>to</strong> marquee accounts…<br />
IT/ ITES Segment<br />
BFSI Segment<br />
Media Segment<br />
…representing leading players in the largest usage verticals<br />
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Enterprise Business<br />
850 of Top 1,000 Indian enterprises are our cus<strong>to</strong>mers<br />
FMCG Segment<br />
Services Segment<br />
Telecom Opera<strong>to</strong>rs<br />
Winning >50% of new business generated in the segment<br />
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Enterprise Business<br />
Achievements<br />
<br />
>50% market share in highest growth data<br />
products<br />
- Internet data centers<br />
Fiber<br />
Ring<br />
Meshed Core<br />
Atlantic<br />
- Centrex solutions: virtual, multi-location PBX<br />
- Virtual private networks<br />
Pacific<br />
<br />
>600,000 buildings connected <strong>to</strong> our fiber<br />
network, <strong>to</strong> cross 1 mn by year end<br />
<br />
Deploying Broadband and WiMax network<br />
in <strong>to</strong>p 10 cities in the country <strong>to</strong> cover 4<br />
million SMEs<br />
From start up <strong>to</strong> leading enterprise data franchise in 1st year<br />
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Financials<br />
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RCOM Financials<br />
Highlights<br />
Revenue, EBITDA & Net Profit (US$ Mn)<br />
Revenue<br />
EBITDA<br />
Net Profit<br />
2,625<br />
+34%<br />
3,530<br />
+126%<br />
1,395<br />
+600%<br />
772<br />
620<br />
108<br />
FY06<br />
FY07<br />
FY06<br />
FY07<br />
FY06<br />
FY07<br />
Consistent & Substantial increase in profitability<br />
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RCOM Financials<br />
Consistent Performance<br />
2.5X PAT growth in 5 quarters...<br />
…3 rd highest in India<br />
301<br />
(US$ Mn) Q1 FY08 PAT Growth<br />
226<br />
250<br />
<strong>Reliance</strong> Industries 796 28%<br />
Bharti Airtel<br />
372 100%<br />
98<br />
125<br />
171<br />
<strong>Reliance</strong><br />
<strong>Communications</strong><br />
TCS<br />
301 138%<br />
293 36%<br />
Q4FY06 Q1FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08<br />
(US$ Mn)<br />
Infosys<br />
Technologies<br />
263 35%<br />
(US$ Mn)<br />
Youngest company <strong>to</strong> achieve >US$ 300 mn quarterly PAT<br />
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RCOM Financials<br />
Strong Financial Platform<br />
Raised US$ 2.5 bn, including US$ 1.5 bn through FCCBs…<br />
Total Assets<br />
US$ 13,659 mn<br />
Net worth<br />
US$ 5,610 mn<br />
Operating<br />
Cash Flow<br />
US$ 1,463 mn*<br />
*15 months period<br />
ROE 36% #<br />
#1Q annualized and adjusted<br />
…Net debt <strong>to</strong> equity at 0.1– potential <strong>to</strong> borrow US$ 12 bn for growth<br />
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Key Recent Developments<br />
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Value Unlocking Initiatives<br />
5% of Towerco placed with major global inves<strong>to</strong>rs<br />
<br />
Valuation Achieved<br />
- Equity value of US$ 6.75bn<br />
- Translates <strong>to</strong> Rs 135 per RCOM share<br />
- Capital gains of US$ 300 mn<br />
<br />
<br />
From 14,000 <strong>to</strong> 40,000 <strong>to</strong>wers in six months<br />
Towers built for passive infrastructure sharing<br />
- Ability <strong>to</strong> initially host 4 tenants<br />
- Expandable <strong>to</strong> 7 tenants at marginal cost<br />
<br />
<br />
Optic fiber connectivity across all <strong>to</strong>wers<br />
RCOM is the anchor tenant through various<br />
platforms: CDMA, GSM, WiMAX, etc<br />
Underleveraged net worth of US$ 1.2 bn<br />
47 of 51 confidential
Value Unlocking Initiatives<br />
FLAG<br />
<br />
<br />
World’s largest IP network over<br />
submarine cable system<br />
RCOM plans private placement<br />
<strong>to</strong> unlock value<br />
Special Economic Zone<br />
BPO<br />
<br />
<br />
<br />
40 acres SEZ in Mumbai<br />
Strong interest from leading IT/ITES<br />
companies <strong>to</strong> set up operations<br />
Government approvals already received<br />
Strong capability <strong>to</strong> service BFSI, telecom &<br />
utilities sec<strong>to</strong>r<br />
Competency in front & back office operations<br />
More than 8,000 strong people<br />
Key mantra - Maximisation of shareholder value<br />
48 of 51 confidential
Planned launch of DTH & IPTV<br />
DTH Network – <strong>to</strong> launch before end of 2007<br />
India has 110 million TV households of which 50%<br />
are not connected through cable or DTH<br />
<br />
<br />
Our DTH services will tap this opportunity<br />
This modern network will provide DVD quality picture<br />
and better viewing experience<br />
IPTV services – <strong>to</strong> be launched in <strong>to</strong>p cities<br />
<br />
IPTV <strong>to</strong> provide interactive TV & Video services<br />
using our existing Ethernet network<br />
<br />
Our cus<strong>to</strong>mers will enjoy movies and music on<br />
demand, interactive programme guide and<br />
gaming<br />
49 of 51 confidential
RCOM: Looking Ahead<br />
<br />
<br />
<br />
<br />
<br />
India among the most attractive growth markets in the world<br />
RCOM is India’s only integrated telecom company<br />
RCOM <strong>to</strong> have world’s largest network covering a billion people in more<br />
than 23,000 <strong>to</strong>wns and 600,000 villages<br />
RCOM is the most profitable telecom company in India with EBITDA<br />
margin >42%<br />
RCOM has an underleveraged balance sheet with the ability <strong>to</strong> finance<br />
future growth through debt<br />
The journey of growth has just begun…<br />
50 of 51 confidential
Thank you<br />
September 2007
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