GTL Infra Acquisition Presentation mailv6 by bbp19290

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									                                                                    GTL Infrastructure

                                                      Purchase of Aircel Tower Business
                                                    (Investors, Analyst & Media Presentation)



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.

GTL Infra-Analyst Jan 10 (1)
                                                                                                                                                                                                                   1
Presentation Outline

 Global Group Profile

 GTL Infra at a Glance

 Aircel Tower purchase at glance

 Transaction Rationale

 Road Ahead

 Conclusion


                                   2
  Global Group Profile

    22 Years of Service in telecom industry



    Group Revenue of US$ 1.2 Bn for FY 11E




                                                                       `
                                                                            The Group is
  Group Balance Sheet size of US$ 5 Bn as on March 11E                       focused on
                                                                              Network
                                                                            Services and
    Aggregate Market Cap of US$ 1.9 Bn*
                                                                               Shared
                                                                              Telecom
    Project Execution in 44 Countries across 70 Networks
                                                                           Infrastructure


    Access to over 35,000 dedicated and highly skilled
    manpower by FY11
Note: Conversion rate assumed at Rs. 46 = 1USD across the document ;
* Market Cap calculated on fully diluted basis as on Jan 13, 09
                                                                                        3
GTL Infra at a Glance (Post deal)
  Business                             Shared Passive Telecom Infrastructure Provider


  Tower Portfolio                      32,500 towers



  Balance Sheet Size                   US$ 3.5 Bn


  Presence                             23 Circles across India

  Customers                            All major Indian Telecom Operators

  Awards Won                           ‘Innovative Infrastructure Company of the Year’


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


Market Cap                             US$ 1.1 Bn.*
(On a fully diluted basis)


                        Largest Independent Tower Co in India
  Market Cap calculated on fully diluted basis as on Jan 13, 09                          4
Aircel Tower purchase at Glance

   Enterprise Value                  Rs. 8,400 Crores

    No. of Towers
                                          17,500
      acquired

No. of Tenants acquired                   21,000


 Future Commitment          20,000 towers over the next 3 years


  Financial Advisors                   Citi; Barclays



Largest all cash asset purchase transaction in Indian Corporate history


                                                                          5
Terms of Agreement

 Site Rentals (GBT)          GBT- Rs. 31,500 p.m.


 Site Rentals (RTT)          RTT- Rs. 21,000 p.m.


  Tenure of the
                                   15 years
    contract


    Escalation          Annual rental escalation of 3 %


 Future Commitment    20,000 towers over the next 3 years




                                                            6
Transaction Rationale
 Accelerated Growth

     Assured immediate recurring revenue of Rs. 700 Crores for next 15 years on p.a. basis
     Additional Commitment of at least 20,000 anchor sites over next 3 years to provide
     additional recurring revenue of Rs. 700 Crs on p.a. basis
     Total recurring revenue opportunity from this transaction alone to be Rs. 1,400 Crores
     on p.a. basis

 Pan-India Tower Footprint

     Pan- India presence in all 23 telecom circles
     Portfolio of over 50,000 towers by FY 13E
     Tenancy expected to grow to 2.3 by FY 13E

 Increase presence in Urban areas to cater to new 2G/3G operators

     No.of towers in urban areas to increase from current 1,350 to 9,400 towers


                                                                                              7
Complementary Network Footprint




                                                         Post Acquisition
                                    GTL Infra*                Aircel Towers   Pro-forma

 No.of Towers                          15,000                     17,500       32,500

 Tenancy                                 1.14                      1.20         1.17
 GBT/RTT Mix                            88/12                      63/37        74/26
 * Expected at the time of Completion of the deal in May 10

            Comprehensive Tower footprint on pan India basis
                                                                                          8
Financing the transaction

  Fully funded financing to undertake transformational
  transaction


  Transaction size Rs. 8,400 Crores

    Equity investment of Rs. 3,400 Crores from GTL Infrastructure and
    its promoters

    Debt funding of Rs. 5,000 Crores by consortium of banks




                                                                        9
           Comparable Valuations (Global Peers)
           EV/Tower

              3.75
                      3.30     3.17
              3.00
                                                  2.51
Rs. Crs.




              2.25

              1.50

              0.75                                                               0.42

                -
                      AMT     SBAC          Crown Castle                 GTL Infra-Aircel


                                      Source: Market Data & Deutsche Bank Research Reports, Dec 09




                                                                                                     10
           Comparable Valuations (Domestic Peers)
           EV/Tower
            2.00
                       1.75

            1.50
Rs. Crs.




            1.00
                                     0.95

                                            0.55                     0.52
            0.50                                                                                0.42


              -
                   Bharti InfraTel   RTIL   Indus               Tata-Quippo              GTL Infra-Aircel


                                            Source: Reliance Equity & ICICI Research Report and Market Data




                                                                                                              11
           Comparable Valuations (Global Peers)
           EV/Tenant


            1.50
                                  1.27
                                                               0.94
Rs. Crs.




            1.00
                                                                                   0.77

            0.50                                                                                                   0.35

              -
                                 SBAC                          AMT          Crown Castle                   GTL Infra-Aircel

                                                                      Source: Market Data & Deutsche Bank Research Reports, Dec 09




             Source: ICICI Research, Internal Team estimates
                                                                                                                                     12
           Comparable Valuations (Domestic Peers)
           EV/Tenant

             1.50        1.31

             1.00
Rs. Crs.




                                      0.59
                                             0.50
             0.50                                                      0.39                      0.35

               -
                    Bharti InfraTel   RTIL   Indus               Tata-Quippo             GTL Infra-Aircel

                                             Source: Reliance Equity & ICICI Research Report and Market Data




                                                                                                               13
               Comparable Capital Structure
               Debt/Equity


                   5.00
                                    4.06
Debt/ Equity




                   4.00

                   3.00
                                                           2.08
                   2.00
                                                                          1.26                     1.21
                   1.00

                      -
                                    SBAC              Crown Castle   American Tower                  *
                                                                                             GTL Infra (post
                                                                                                 Deal)
                                                                      Source: Deutsche Bank Research Report. Dec 09


                * Assuming full conversion of outstanding Debt

                                                                                                                      14
The Road Ahead

 Completion of transaction expected by May 2010, subject to
 necessary statutory, regulatory & lenders approvals

 Formation of a joint Integration Committee

 Commencement of additional Rollout of 20,000 towers for
 Aircel’s Network requirement

 Maintain robust capital structure and financial flexibility




                                                               15
Post Deal Industry Scenario
                 Independent & Neutral global players

  60,000
            50,500
  50,000
  40,000                32,500
  30,000                           25,413     24,025
  20,000
                                                                7,991
  10,000
      -
             GTL Infra GTL Infra   American   Crown              SBAC
               with                 Towers    Castle
           commitment
             of 20,000
              towers                           Source: Deutsche Bank Research Report. Dec 09



 Creation of Largest Independent Tower Co in the world
                                                                                               16
Deal Impact on Semi-urban and Rural India

    Investment of Rs 10,000 Crores in semi urban and
    rural India

    No. of towers in semi urban and rural India
       9900 towers on DEC 09E
       24000 towers on completion of deal



     Creation of 50,000 new jobs
 Connectivity to the poorest of poor in semi-urban and
                      rural India


                                                         17
Deal Impact on Environment

     Expected Consumption of Diesel by 450,000 towers
     in FY 13E – 1.8 bn litre

     GTL Infra will save around 20% consumption of
     diesel through
        Sharing of telecom towers
        Providing Energy Management Solutions
        Usage of alternative fuel and technologies


 Greener environment through reduction in Carbon & RF
                      emissions


                                                        18
Conclusion

 Transformational Deal - Creating the world’s largest independent & neutral
 tower Company; building partnership with one of the leading National operators in
 the country


 US$ 1.8 Bn -Largest all cash purchase transaction in Indian Corporate history

 Value Added Services –Substantial cost saving for operators through Energy
 Management and Operation & Maintenance services provided on GTL Infra sites


 Rs 10,000 Crores – Investment for the development of passive telecom
 infrastructure in rural India

  Transformational deal for us, society and the country
                                                                                 19
                           Thank you

Contact Information:
E-Mail : ir@gtlinfra.com
Tel: +91 22 22715308
   : +91 22 22715370

								
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