Global Group. An Introduction

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Erica Hamilton
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1 Global Group An Introduction 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.

2 Group Vision Provide affordable universal connectivity by offering quality & green network solutions to telecom carriers across the world 2

Group Structure Global Holding Corporation (GHC) GTL Limited GTL Infrastructure Global Towers Global ProServ Global InnovSource Global Rural NetCo India s Largest Network Services Player Largest

3 Group Structure Global Holding Corporation (GHC) GTL Limited GTL Infrastructure Global Towers Global ProServ Global InnovSource Global Rural NetCo 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 Active Telecom Infrastructure Provider 3

than 40 Countries over 70 Networks The Group is focused on Network Services and Shared Telecom Infrastructure Access to over 35,000

4 Global Group Profile 23 Years of Service in telecom industry Group Revenue of US$ 1.2 Bn for FY 11E Group Balance Sheet size of US$ 5 Bn as on March 11E Aggregate Market Cap of US$ 3 Bn* Project Execution in more than 40 Countries over 70 Networks The Group is focused on Network Services and Shared Telecom Infrastructure Access to over 35,000 dedicated and highly skilled manpower by FY11E Note: Conversion rate assumed at Rs. 45 = 1USD across the document ; *Market Cap calculated on fully diluted basis as on Dec 31,

5 Value Chain Active Infrastructure Services (Global Rural NetCo) Professional Services (Global InnovSource) Passive Infrastructure Services (GTL Infra) Network Services Back office Management (Global ProServe) Network Services (GTL Limited) Tower Manufacturing; Energy Optimization (Global Towers) Global Group serves across the entire spectrum of outsourced telecom solutions 5

6 GTL Infrastructure Ltd 6 6

7 GTL Infra at a Glance Business Telecom Towers Tower Portfolio Asset Base Presence 32,463 towers US$ 3.2 Bn Pan India Tower Presence Customers All major Indian Telecom Operators Awards Won Stock Listed on Innovative Infrastructure company of the year Infrastructure Excellence Award organized by CNBC TV 18 BSE (Code ), NSE (Code GTLINFRA) Market Cap US$ 1.9 Bn.* *Market Cap calculated on fully diluted basis as on Dec 31,

8 GTL Infra: Track Record Tower Growth Tenancy Growth Growth Highlights Operational Growth 33,500 Tenancy on Occupied Towers , ,456 9, ,221 6,010 7,198 4,037 1, FY07 FY08 FY09 FY10 FY11E FY07 FY08 FY09 FY10 FY11E All operators served on GTL Infrastructure sites 130% Tower CAGR 168% Tenancy CAGR Pan- India presence of towers 8% up-front reduction in energy cost Revenue and EBITDA Growth (1)(2) (USD Mn) Balance Sheet (USD Mn) Growth Highlights Growth in Financials Revenues (1) EBITDA Margin 58% 55% % 52% 48% (2) FY07 FY08 FY09 FY10 FY11E 3,662 1,408 1, FY07 FY08 FY09 FY10 FY11E 115% Revenue CAGR 87% EBITDA CAGR 1.3x D/E for FY 11E USD1.8 bn all cash acquisition of Aircel towers All leading banks funding GTL Infrastructure s expansion plan Notes: (1) FY11E financials includes only c.9 months of CNIL financials (2) FY07 EBITDA margin reflects margin of tower operations only

9 Industry Structure Demand for BTSes (in 000s) Technology No. of towers by FY11E (in 000s) FY 15E G FY 14E 964 3G & BWA FY 13E FY 12E G & BWA 3G FY 11E 615 2G - Indus BSNL Rcom Viom Bharti Infratel GTL Infra Others Source: Industry Research, TRAI GTL Infra is the only independent player in the Indian Tower Industry 9

10 Tenancy Growth Drivers India is expected to have c618mn active subscriber base by FY 11E which is estimated to reach c1bn by FY14E The Industry has paid cus$ 20 Bn as License fee for 3G/BWA to the government; Incremental capexon3g/bwarolloutisexpectedtobecus$ 70Bn 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 BTS projections* ( 000s) Subs in mn 2G 3G/BWA 1,089 1, , FY11 FY12 FY13 FY14 FY15 Source: Industry Estimates, TRAI 10

11 GTL Limited

12 GTL at a Glance Business Network Services Founded 1987 Global Headquarters Mumbai, India Global Presence More than 40 countries spread across Africa, Asia- Pacific, Middle East, Asia, North America, South Asia and Western Europe Domain Expertise Telecom Associates 7,733 (As of Dec 31, 2010) Listed on BSE, NSE 12

13 Business Network Planning & Design Professional Services Network Planning Deployment & Design Network Services Energy Management Network Operation & Maintenance Infrastructure Management 13

Customer Snapshot Telecom Brands Aircel Airtel AT&T BSNL China Mobile Cingular Etisalat NTT DoCoMo Orange RCom Saudi Telecom Sprint T-Mobile Verizon

14 Customer Snapshot Telecom Brands Aircel Airtel AT&T BSNL China Mobile Cingular Etisalat NTT DoCoMo Orange RCom Saudi Telecom Sprint T-Mobile Verizon Vodafone APAC/Europe 5% Revenue by Services Prof. Services O&M 14% 9% Network Deployment 69% Planning & Design Revenue by Geography MENA & Others 17% India 78% 8% 14

15 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 ProfessionalServicestooperatorslikeVodafone, O 2 andmtn 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 15

16 Growth drivers 3G & BWA Rollout US$ 20 Bn of 3G/BWA license fees paid to Government; Incremental capex spending for 3G/BWA rollout estimated to be over US$ 70 Bn over next 2-3 years This is expected to drive demand for Network Deployment & Network Planning and also improve tenancy on GTL Infra telecom towers Energy Management Solution GTL plans to reduce cost through use of energy efficient products and also alternate sources of energy GTL signed multi-year contract to provide Energy Management solutions on 17,500 existing Aircel sites; Recurring Revenue of US$ 150 Mn p.a. GTL has also entered into similar agreement with Idea and Tata Tele on 2,000+ sites Alliances with partners GTL has entered into a global partnerships with leading technology providers like Ericsson, Huawei & ZTE GHC has acquired 13% stake in Qualcomm s India operations to rollout BWA network; GTL plans to offer the entire range of Network Services for Qualcomm s rollout of BWA Network in India 16

17 Energy Management Solutions 17 17

18 Energy requirement of Telecom Industry India currently has 346,000 towers which are expected to go up to 463,000 over next 3 years Due to prevailing power situation in the Country, each Telecom tower consumes on an average 7,000 litres of diesel on annual basis This means the entire industry consumes 2.5 Bn litres of diesel every year Energy expenses constitutes nearly 20% of operators Networking expenditure Excessive use of diesel generators lead to CO 2 environment contributing to global warming emission in the 18

19 GTL s Energy Management Approach Two pronged Demand side Focus on Reducing energy footprint of equipments at site through: Energy Saving solutions Intelligent power management Supply Side Supplying alternate/renewable energy to equipments: Solar Wind Focus on Smarter processes 19

20 Awards & Recognitions 20 20

Recent Awards & Recognitions Business Excellence GTL ranked # 1 Telecom Turnkey company of the year V&D 100 in

rated Top Independent Infrastructure Provider of India AwardbyV&D Corporate Governance & Excellence

Center of excellence for Sustainable Development GTL received Ramkrishna Bajaj National Quality Award for

Award in 2009 and 2010 GTL Foundation received Golden Peacock Award for Innovation in Social Responsibility GTL

21 Recent Awards & Recognitions Business Excellence GTL ranked # 1 Telecom Turnkey company of the year V&D 100 in 2008, 2009 and 2010 GTL Infra won Innovative Infrastructure Company of the year 2009 by CNBC TV18 GTL Infra rated Top Independent Infrastructure Provider of India AwardbyV&D Corporate Governance & Excellence GTLfeaturedinS&P sesgindiaindexforthethirdyearinarow GTL received Certificate for Strong commitment from CII ITC Center of excellence for Sustainable Development GTL received Ramkrishna Bajaj National Quality Award for Business Excellence Corporate Social Responsibility GTL & GTL Infra 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 21

CSR@ Global Group Education Disability Health Community Gyan IT (Spreading IT literacy among rural areas) KNOW (Mobile Computer lab) VKC (Village Knowledge Center) Gyan Deep (Train the trainer)

Emergency Medical Assitance (Curative medical care) Blood Donation (Donate blood save life) Pralay (Supporting victims of natural calamities) Gyan Deep (Counselling the street children)

22 Global Group Education Disability Health Community 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) Arogya (Mobile health van in Rural Areas) Emergency Medical Assitance (Curative medical care) Blood Donation (Donate blood save life) 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 two percent of it s profits towards CSR activities and encourages active employee participation 22

23 Conclusion Strong Growth Story Revenue growth of 30% and EBITDA growth of 40% on compounded basis for last 3 years US$ 70 Bn of planned investments in Indian telecom sector over next 2-3 years Strong Project execution track record Expertise across the spectrum of Network Services needs of Operators, OEMs and Tower Companies Executed Projects in more than 40 countries across the world Tower Network in excess of 42,000 with a pan-india presence by FY 14E Group Financial strengths Balance Sheet size in excess of US$ 5 Bn Cash Balance of US$ 700 Mn as on March 2010 Promoters commitment to the group Promoter s commitment of over US$ 590 Mn in last 4 years Investor-friendly Organization Returned cash to shareholders in excess of US$ 183 Mn in last 3 years 23

24 Thank you

Global Group. An Introduction

Global Group. An Introduction Global Group An Introduction 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