Global Group Presentation feb 10 - Welcome to Global Groupghc.in/Downloads/Global_Group_Presentation_feb_10.pdf · Group Values Group Vision-“Provide better connectivity by offering

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

Feb-1/2010

Group Values

Group Vision-

“Provide better connectivity by offering quality network solutions and services to telecom

carriers across the world”2

Group Philosophy-

“To enable people to be in touch with each other and improve the quality of life of the communities we serve”

Group Values-• Ethics & Transparency

• Proactively Manage Change

• Delight customers through superior services

• Develop entrepreneurs through an achievement-

oriented culture

• Build a sustainable global organization

• Share knowledge and focus on end-result

Group Structure

Global Holding Corporation (GHC)

GTLGTL

Infrastructure

Largest

independent

tower company

in the world

India’s

Largest

Network

Services

Player

Global

Projects

Procurement

and Project

services

- Listed Companies

Global

InnovSource

Recruitment

& Staffing

Services

Global

ProServ

Process

Management

Services

Global

Rural NetCo

Shared

Active Telecom

Infrastructure

Provider

Global

Towers

Tower

manufacturing

for Telecom and

Transmission

Sector

3

The Group is focused on Network

Services and Shared Telecom Infrastructure

22 Years of Service in telecom industry

Group Revenue of US$ 1.5 Bn for FY 11E

Group Balance Sheet size of US$ 5 Bn as on March 11E

Aggregate Market Cap of US$ 1.9 Bn*

Project Execution in 44 Countries across 70 Networks

Access to over 35,000 dedicated and highly skilled

manpower by FY11E

`

Global Group Profile

Note: Conversion rate assumed at Rs. 46 = 1USD across the document ;

*Market Cap calculated on fully diluted basis as on Feb 02, 10

4

Revenues (US$ mn)

130 130

1,265

833

715

201

Relacom GTL Telcordia Leadcom LCC Aircom

Peer Comparison

Unlisted,

owned by

Providence

Equity and

Warburg

Pincus

AIM Listed Unlisted,

privately

owned

GTL is now the

2nd largest

player in the

Telecom

Infrastructure

and Network

Services space

in the world

Note: All mentioned revenues are as per the latest information available in public domain;

*- FY 11 Projections

Unlisted,

privately

owned

Unlisted,

65% owned

by Altor

Equity

Partners

Listed on

BSE & NSE

6

Value Chain

Network Services

NetworkServices

(GTL Limited)

Back office Management(Global ProServe)

TowerManufacturing & Fabrication

(Global Towers)

Procurement & Project Management(Global Projects)

Professional Services(Global InnovSource)

PassiveTelecom Infrastructure

Services(GTL Infra)

Active Telecom Infrastructure Services(Global Rural NetCo)

Global Group serves across the entire spectrum of outsourced telecom solutions

Group has worked for 8 of the Top 10 telecom brands in the world*

* Source: Informa Telecom & Internal Research

Customer Snapshot

Revenue by Services

Revenue by Geography

7

India

82%

APAC/Europe

12%

MENA & Others

6%

Procurement &

Project Services

19%

Tower Fabrication

3%

Recruitment & Staffing

5%

Shared Infrastructure

8%

Network Services

65%

Aircel

Airtel

AT&T

BSNL

China Mobile

Cingular

Etisalat

NTT DoCoMo

Orange

RCom

Saudi Telecom

Sprint

T-Mobile

Verizon

Vodafone

Telecom Brands

8 8

GTL Limitedwww.gtllimited.com

Business

NetworkServices

Network

Planning & Design

Network

Planning & Design

Professional Services

Infrastructure Management

NetworkOperation & Maintenance

Network Deployment

Energy

Management

9

Global Spend on Telecom - 2012

Total Telecom Spend - US$ 57 Billion by 2012

The emerging sub

segment of Network

Services

Network transformation to

include 3G, WiMAX, IP to provide

huge opportunities in both

developed and emerging markets

O&M, Energy Management to

drive sustainable and

recurring cash flows

Addressable

market for

Professional

services to grow

Source: Light Reading Insider

& Internal estimates

10

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.

� GTL formed a strategic alliance with Vanu Inc to develop solutions for sharing of Active

Telecom infrastructure by mobile operators.

� The solution will also allow carriers to serve new markets, save time and cost involved in

a traditional network rollout.

11

12 12

GTL Infrastructure Ltdwww.gtlinfra.com

Industry Structure

Drivers for Shared InfrastructureDrivers for Shared InfrastructureDrivers for Shared Infrastructure

� Aggressive rollout plan by regional/ new operators

� Aircel, IDEA, Reliance GSM, TATA-DoCoMo, Unitech-Telenor, Swan-Etisalat, DataCom

� Impending auction of 3G & WiMAX spectrum in second half of CY10

� Incremental Capex plan for Network Quality improvement by incumbent operators

� BSNL agrees to co-locate on third party towers

•Source: JM Financial & Industry Estimates

*Projected tower roll outs as on May 2010

13

270

337

389

437

463

2009

2010

2011

2012

2013 4G

3G &

WiMAX

3G &

WiMAX

2G

TechnologyTower Demand (in ‘000s) Current availability of Towers (in ‘000s)*

46

108

50

33 32 31

11

Operator

Ow ned

Indus RTIL GTL Infra Bharti Infratel Tata-Quipo Other

Independent

Tow er Cos2G

Operator

Owned

RTIL GTL

Infra

Bharti

Infratel

Tata

Quippo

Other

Independent

players

Indus

14 14

Purchase of Aircel Tower Business

Enterprise Value US$ 1.8 Bn

Future Commitment 20,000 towers over the next 3 years

Financial Advisors Citi; Barclays

Aircel Tower purchase at Glance

No. of Towers acquired 17,500

Largest all cash asset purchase transaction in Indian Corporate history

No. of Tenants acquired 21,000

Transaction Rationale

� Accelerated Growth

� Assured immediate recurring revenue of US$ 152 Mn 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 US$ 152 Mn on p.a. basis

� Total recurring revenue opportunity from this transaction alone to be US$ 304 Mn 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

50,500

32,500 25,413 24,025

7,991

-

10,000

20,000

30,000

40,000

50,000

60,000

GTL Infra

with

commitment

of 20,000

towers

GTL Infra American

Towers

Crown

Castle

SBAC

Creation of Largest Independent Tower Co in the world

Post Deal Industry Scenario

Independent & Neutral global players

Source: Deutsche Bank Research Report. Dec 09

18 18

Awards & Recognitions

Recent Awards & Recognitions

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

100, 2008 and 2009

� 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

Business ExcellenceBusiness Excellence

� GTL received Greentech Environment Excellence award

� GTL Foundation received Golden peacock Award for Innovation in Social Responsibility

� GTL received Pegasus Award for Social Responsibility

Corporate Social ResponsibilityCorporate Social Responsibility

� GTL Featured amongst Top 10 in S&P’s ESG India Index for

the second year in a row

� 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 Governance & ExcellenceCorporate Governance & Excellence

19

CSR@ Global Group

GTL sets aside up to One Percent of it’s profits towards CSR activities and encourages active employee participation

Bridging the Digital Divide Cause of Physically Challenged

• Gyan IT (Spreading IT literacy among rural areas)

• Know(Mobile Computer lab)

• VKC(Village Knowledge Center)

• Gyan Deep(IT Literacy for AASRA Children)

• Netra(Computer Lab for Blind)

• Talk 64(Chess software for Blind)

• Swayam(Employment opportunities for Blind)

• Samman(Mobility for the disabled)

GTL Foundation – CSR Arm of Global Group

Other Community Initiatives

• Gyan Jyot (Scholarships for higher studies)

• Samrakshan (Financial assistance to bereaved families, critical illness and accident cases)

• Idaya (Assistance to Tsunami Victims)

• Pralay (Assistance in case of natural disasters)

• Arogya (Mobile health van in Rural Areas)

20

Conclusion

� Strong Growth Story

� Revenue growth of 44% and Profitability growth of 37% on compounded basis for last two years

� US$ 30 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

� Presence in all 23 circles in India

� Executed Projects in 44 countries across the world

� Group Financial strengths

� Balance Sheet size in excess of US$ 5 Bn

� Cash Balance of US$ 700 Mn as on March 2009

� Investor-friendly Organization

� Returned cash to shareholders in excess of US$ 175 Mn in last 3 years

� High standards of Corporate Governance in Group Companies

21

Thank you

Contact Information:E-Mail : [email protected]: +91 22 22715221