global groupghc.in/downloads/global-group-presentation.pdf · global group an introduction sept...

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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 Sept 2011

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Page 1: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Safe harbor

• Neither the i nformation nor any opinion expressed in this presentation c onstitutes an offer , or i nvitation to make an offer, or to buy any sec urity issued by the company. This presentation contains predictions, estimates or other information regarding the Company's operations which are forward l ooking i n nature. While these forward l ooking statements represent our best current judgment on what the future holds, they are subject to risks and

uncertainties that c ould cause actual results to di ffer materially and may i nvolve 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

Sept 2011

Page 2: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Group Vision

“Provide affordable universal connectivity by offering quality

& green network solutions to telecom carriers across the

world”

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Page 3: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

GTL

Limited

GTL

Infrastructure

Global

Towers

Global

ProServ

Global

InnovSource

India’s Largest Network Services Player

Largest Independent &

Neutral Tower Company

in the World

Manufacturing of Telecom towers and

Energy Optimisation

Process Management

& KPO services

Recruitment & Staffing Services

Global

Rural NetCo

Active Telecom Infrastructure

Provider

Global Holding Corporation (GHC)

Group Structure

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Page 4: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

The Group is

focused on

Network

Services and

Shared Telecom

Infrastructure

24 Years of Service in telecom industry

Group Revenue of US$ 1.5 Bn for FY 12E

Group Balance Sheet size of US$ 5 Bn as on March 12E

Project Execution in more than 40 Countries over 70

Networks

Access to over 35,000 dedicated and highly skilled

manpower by FY12E

Global Group Profile

Note: Conversion rate assumed at Rs. 45 = 1USD across the document ;

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Page 5: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

5 5

GTL Infrastructure Ltd www.gtlinfra.com

Page 6: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

GTL Infra at a Glance

Business Telecom Towers

Presence

Stock Listed on BSE (Code – 532775), NSE (Code – GTLINFRA)

Pan India Tower Presence

Tower Portfolio 32,633 towers

Customers All major Indian Telecom Operators

Awards Won „Innovative Infrastructure company of the year‟ Infrastructure

Excellence Award organized by CNBC TV 18

Asset Base US$ 3.7 Bn

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Page 7: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

1128

4977

224

Growth Highlights O

pera

tio

nal G

row

th

Gro

wth

in F

inancia

ls

Tower Growth Tenancy Growth

Revenue and EBITDA Growth (USD Mn) Balance Sheet (USD Mn)

Notes:

(1) FY07 EBITDA margin reflects margin of tower

operations only

48%(1)

52%

52%

55%

58%

EBITDA Margin

1.01

1.16

1.23

1.33

1.41 Tenancy on Occupied Towers

Growth Highlights

112% Revenue CAGR

123% EBITDA CAGR

USD1.8bn all cash acquisition

of Aircel towers

All leading banks funding GTL

Infrastructure‟s expansion plan

Growth Highlights

All operators served on GTL

Infrastructure sites

128% Tower CAGR

164% Tenancy CAGR

Pan- India presence of towers

8% up-front reduction in energy

cost

Exchange rate considered at Rs. 45 per 1 US$ across the document

7

1,200

6,010 9,411

12,456

32,633

FY 07 FY 08 FY 09 FY 10 FY 11 FY 07 FY 08 FY 09 FY 10 FY 11

840 4,037

7,198 13,221

40,798

246

795 1,089

1,408

3,662

FY 07 FY 08 FY 09 FY 10 FY 11 FY 07 FY 08 FY 09 FY 10 FY 11

Page 8: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Industry Structure

Technology Demand for BTSes (in ‘000s) No. of towers by FY11 (in ‘000s)

4G

3G & BWA

3G & BWA

3G

2G

Source: Industry Research, TRAI

GTL Infra is the only independent player in the Indian Tower Industry

615

767

885

964

1023

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E 109

50 50

3933 33

28

0

20

40

60

80

100

120

Indus BSNL Rcomm Viom GTL Infra Bharti

Infratel

Others

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Page 9: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

553 625 681 718 736

62 142

204 246 287

615 767

885 964

1,023

FY11 FY12 FY13 FY14 FY15

2G 3G/BWA

Tenancy Growth Drivers

The Industry has paid cUS$ 20 Bn as License fee for

3G/BWA to the government; Incremental capex on 2G,

3G/BWA rollout is expected to be cUS$ 110 Bn

MNP is expected to drive improvement in Network

Quality of the operators

Will drive operators to install more BTSes leading

to drop in number of subscriber/ BTS from current

1,400 to 1,000 creating further demand for towers

India has c574mn active subscribers by FY 11 and is

estimated to reach c1bn by FY14E

BTS projections* (‘000s)

•Source: Industry Estimates, TRAI

Active Subs (mn)

574

834987

1089

1136

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Page 10: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

10 10

GTL Limited www.gtllimited.com

Page 11: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Telecom

Business Network Services & Power Management

Global Headquarters Mumbai, India

Founded 1987

Global Presence

Domain Expertise

More than 40 countries spread across Africa, Asia- Pacific,

Middle East, Asia, North America, South Asia and Western

Europe

GTL at a Glance

Listed on BSE, NSE

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Page 12: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Our Services

Network

Transmission & Distribution

Energy

Management

Network Operations &

Maintenance

Network Deployment

Power

Distribution

Network Planning & Design

& Prof. Services

Network &

Power

Management

Services

- Network services business

- Energy business

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Page 13: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Network Services Offering Network Deployment

GTL offers deployment services of active and passive infrastructure for wireless networks

The scope of activity includes Site Engineering, Management

Services, Site Implémentation etc.

Network Planning & Design & Professional Services

GTL designs the network architecture for telecom operators.

The scope of activity involves RF Planning & Design, RF

Optimization, In – Building Solutions etc.

GTL also provides its engineers to telecom operators & OEMs

for short term and mid term projects

Operation & maintenance

GTL provides regular maintenance of active and passive infrastructure of telecom operators & tower cos.

The scope of activity includes Network Monitoring & Operations, Network Field Maintenance, Technical Support and Process Management

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Page 14: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Overview of Strategic Alliances

In 2007, formed a strategic tie-up with Ericsson to address the Managed

Network Infrastructure Services (MNS) Market in UK

Under MNS, GTL offers Network Deployment, O&M, Infrastructure Management

and Professional Services to operators like Vodafone, O2 and MTN

GTL entered into a engineering co-operation agreement with ZTE

This will give GTL access to ZTE‟s Network Infrastructure projects in all its 120

countries of operations

GTL has entered into a "Global Supplier Co-operation Agreement" with Huawei

for worldwide co-operation in Network Services space

As a part of this agreement, Huawei will train GTL's engineers on its various

Technology platforms

GHC has acquired 13% stake in Qualcomm‟s India operations to rollout BWA

network

GTL plans to offer Network Deployment, O&M, Active Infrastructure and Energy

Management Services on Qualcomm sites

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Page 15: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Transmission & Distribution

GTL undertakes turnkey contracts for

rolling out power distribution networks for

state electricity boards

The Scope includes:

Construction, erection, testing and

commissioning of sub transmission

lines, distribution line, power

transformers

Augmentation of existing substations

& distribution transformers of varying

capacities

Renovation and modernization works

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Page 16: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Power Distribution Franchisee

Generation Transmission Distribution

Energy Input Metering

Fault Restoration

O&M

Customer Care

Revenue Collection

Construction

CAPEX

Planning

Meter Reading

All Obligation and Rights of a

Distribution Licensee

MSEDCL

to supply power at

EHV substations

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Page 17: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Fundamentals of Power Distribution Business

Long term contract for a period of 15 years

The key revenue growth drivers are:

Residential to Commercial Mix

Increase in Electricity availability

Increase in consumption of electricity

Increased industrialization

Profitability is tied to reduction in T&D losses

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Awards & Recognitions

Page 19: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Awards & Recognitions

GTL ranked # 1 Telecom Turnkey company of the year – V&D 100 in

2008, 2009 and 2010

GTL received Ramkrishna Bajaj National Quality Award for

Business Excellence

“Engineering Silver Partner Award” from Huawei

Business Excellence

GTL has received Greentech Environment Excellence Award in

2009 and 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

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Page 20: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

CSR@ Global Group

Education Disability

• Gyan IT (Spreading IT literacy

among rural areas)

• KNOW (Mobile Computer lab)

• VKC (Village Knowledge

Center)

• Gyan Deep (Train the trainer)

• Netra (Computer Lab for Blind)

• Talk 64 (Chess software for Blind)

• Swayam (Employment

opportunities for Blind)

• Samman (Mobility for the disabled)

Health

• Arogya

(Mobile health van in

Rural Areas)

• Emergency Medical

Assistance (Curative medical care)

• Blood Donation

(Donate blood save life)

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Community

• Pralay

(Supporting victims of

natural calamities)

• Gyan Deep

(Counselling the street

children)

• Marathon run (Participated in the

sporting event to support

visually challenged persons)

GTL sets aside up to one percent of it’s profits towards

CSR activities and encourages active employee participation

Page 21: Global Groupghc.in/Downloads/Global-Group-Presentation.pdf · Global Group An Introduction Sept 2011 . ... The scope of activity involves RF Planning ... formed a strategic tie-up

Thank you