Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (February 2018)
28 slides from Bharti Airtel's investor presentation, February 2018
Slide 1: Bharti Airtel Investor Presentation – February 2018
Bharti Airtel Investor Presentation – February 2018
Slide 2: What Guides Us
What Guides Us Customer Centricity • Win customers for life through differentiated experience, products and world class technology Performance Excellence • Grow market share, strip out waste • Accelerate non-mobile businesses Transparency & Ethical Governance • Highest corporate governance and discl
Slide 3: Bharti Airtel: Who Are We
Bharti Airtel: Who Are We 3rd largest telecom operator in the world Presence in 16 countries1 addressing to 1.84 Bn population Serving around 394.2 Mn customers with ~$13.2 Bn revenues2 No 1 operator in India and only integrated operator with wireless, wireline & satellite TV No 2 telecom
Slide 4: Investment Rationale
Investment Rationale 1 Large untapped market opportunity 2 Leading market share positions 3 The Airtel advantage 4
Slide 5: Indian Mobile Market
Untapped Opportunity Indian Mobile Market Wireless Subscribers1 Teledensity3 2nd largest telecom market in the world • 1,167 mn customers • Overall teledensity of 91.90% of which ~740 mn are unique (dual simmers) • Rural teledensity of 56.66% 2nd largest smartphone market in the world Broadband2 Sma
Slide 6: Opportunity in Indian Telecom
Untapped Opportunity Opportunity in Indian Telecom WIRELESS WIRELESS DATA WIRED BROADBAND 1.3 bn population ~28%1 Smartphone and Data 250mn households penetration ~0.7 bn unique 4G handsets ~11%1 wireless customers < 5% connected Rural Penetration ~ 56.31% ENTERPRISES MOBILE BANKING DTH AND CA
Slide 7: Leader in India Revenue and Customer Market Share
Leader in India Revenue and Customer Leading Position Market Share1 RMS 36% ~$22 Bn Indian Telecom Industry 1.167 Bn total wireless subscribers in India 30.9% 20.3% 16.6% 15.4% 6.3% 3.7% 3.7% 1.4% 1.7% Airtel Tata Tele-services Uninor Vodafone Idea Cellular Reliance Jio BSNL + MTNL Aircel Reliance A
Slide 8: Value players are fast losing subscriber market share to incumbents
Leading Position Value players are fast losing subscriber market share to incumbents 43.9% 26.4% 22.7% 24.9% 18.2% 18.4% 16.8% 15.0% 13.7% 0.0% March'14 March'17 Dec'17 Airtel Idea Voda Jio Others Airtel,Tata Tele Services & Telenor comprise 32% of total industry subscriber base as of Dec’17 Note: A
Slide 9: Airtel- Leading Presence in Africa
Leading Position Airtel- Leading Presence in Africa 2nd Largest telecom operator in Africa after MTN Leading operator - #1 or #2 in 13 of 14 markets1 Customer base of 84.1 mn - of which ~23.3 mn data customers 3G and Airtel Money in all 15 countries. 4G in 8 countries, likely to have 4G in all count
Slide 10: Leadership Position across African markets
Leading Position Leadership Position across African markets Market Key Telecom Our Airtel RMS Country size operators Position % (mn $) Bharti and Millicom International Cellular Zambia 3 1 479 >40% Niger 4 1 329 >40% merged their respective units in Ghana to Malawi 4 1 222 >40% create the second-lar
Slide 11: Diversified portfolio across telecom and geography
Airtel Advantage Diversified portfolio across telecom and geography Revenue Split by segments1 Non-Wireless Revenues India (Rs Mn) EBITDA Margin EBITDA YoY 61,750 Q3FY’2018 Growth Homes, 6,153 50% -10% Africa Africa, 23% DTH, 9,642 38% 23% Airtel 40% 41% Others, Wireless Business, 0.9% India 29,005
Slide 12: Airtel Payments Bank
Airtel Advantage Airtel Payments Bank 68% transactions in India are cash based1 Annual Retail Payments2– $ 2.5 tn Opportunity to tap 450 mn unbanked customers Leverage on Airtel’s massive retail presence Airtel Payments Bank launched in 2017 provides over 400,000 banking points in Key focus areas: D
Slide 13: Investing for growth – spectrum holding
Airtel Advantage Investing for growth – spectrum holding Band (Avg holding Airtel Competitor 1 Competitor 2 New Operator across 22 circles) 800/900Mhz Paired 5.5 3.5 2.7 6.7 1800 Mhz Paired 13.2 8.6 9.4 7.4 2100 Mhz Paired 7.8 5.2 3.6 3.0 2300/2500 Mhz 25.9 9.1 9.1 27.3 Unpaired Spectrum Industry Sp
Slide 14: Aggressive Network Build - Monetize Spectrum
Airtel Advantage Aggressive Network Build - Monetize Spectrum 180.0 160.2 163.8 2.50 160.0 151.2 140.0 1.99 2.00 120.0 Total 100.0 1.50 88.4 1.51 tower 80.0 1.12 1.00 count 60.0 113.4 130.3 (‘000) 40.0 0.50 20.0 0.0 0.00 Q3'16 Q3'17 Q3'18 Mobile broadband towers MBB BTS per MBB tower Airtel’s acquis
Slide 15: Africa: Invested for Growth
Airtel Advantage Africa: Invested for Growth Abundant spectrum across operations Mobile broadband towers (‘000) – Africa Frequency Band (MHz) 25000.0 1.80 OPCO 800 900 1800 2100 2600 2300 Total 1.70 Seychelles 10.0 12.0 20.0 20.0 - - 62.020000.0 18,864 19,054 1.60 Gabon 10.0 8.0 14.0 15.0 20.0 - 67.
Slide 16: Financial flexibility & Balance Sheet Focus
Airtel Advantage Airtel : Financial flexibility & Balance Sheet Focus Diversified debt profile; focus on deleveraging Strategic initiatives undertaken include Airtel QIP, Infratel IPO & further sell downs, DTH sale to Warburg Pincus Deleveraging in Africa via tower sales, merger and divestment of 2
Slide 17: While maintaining highest Standards of Corporate Governance
Airtel Advantage While maintaining highest Standards of Corporate Governance Won ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2016 Ranked first in a listing of 100 emerging market multinational companies as part of a study on corporate transparency and reporting by Tran
Slide 18: India telecom market dynamics is changing
Airtel Advantage India telecom market dynamics is changing Explosion of Data – Spurt in volumes and GSM data and voice consumption is increasing smartphone shipments 1610 1256 Bundled products – Voice and data 884 1006 bundling; total customer ARPU focus 381 377 366 360 405 428 437 134 143 236
Slide 19: Strategy - INDIA
Airtel Advantage Strategy - INDIA 5 Strategic Pillars for Execution More Brilliant More high services per customer Win with the War on ARPU customer experience Portfolio Waste customers Vibrant Win withBrand People 19
Slide 20: More High Value Customers
Airtel Advantage More High Value Customers Mobile broadband customers as a % of total customers 21.4% • Grab increased with share of 4G 14.2% devices. • Drive rapid data consumption through bundling voice and data. Q3'17 Q3'18 • Accelerate SIM consolidation Post-Paid (Mn) • Accelerate postpaid throu
Slide 21: More services per customer
Airtel Advantage More services per customer Airtel Payments Bank Customers (Mn) • Build the largest Payments Bank 26 • Accelerate Airtel homes through brilliant service 7 bundling Mar'17 Dec'17 • Gain adoption of digital services like introduction of Wynk Downloads (Mn) OTT apps – Airtel TV, Wynk. 7
Slide 22: Brilliant customer experience
Airtel Advantage Brilliant customer experience Average 4G data speeds by Operator in India (Mbps) • Eliminate customer frustration 9.2 7.4 7.4 5.8 • Deliver a world class network experience • Digitize customer on Airtel Competitor 1 Competitor 2 Competitor 3 boarding, care and analytics Driving down
Slide 23: Win with the Portfolio
Airtel Advantage Win with the Portfolio Non mobile revenues as a % of total India 29.7% • Accelerate home broadband through rapid expansion and 23.3% speed upgrades Q3'17 Q3'18 • Accelerate B2B growth Global network – Fiber (RKms) • Accelerate DTH through driving HD upgrades 233,720 • Drive new reve
Slide 24: War on Waste
Airtel Advantage War on Waste Opex growth1 - YoY Q3'17 Q3'18 -0.5% • Drive zero based costing -8.1% • Accelerate active sharing, fiber and joint sourcing of bandwidth Mobile broadband BTS per mobile broadband tower • Optimize network investment 1.99 1.51 Q3'17 Q3'18 1. Excludes Access costs, COGS 24
Slide 25: Strategy - AFRICA
Airtel Advantage Strategy - AFRICA 5 Strategic Pillars for Execution Enhance customer Grow Airtel Provide Build efficient ARPU Money through excellent Build optimal network through comprehensive customer cost structure coverage relevant service offering experience pricing Vibrant Win withBrand Peopl
Slide 26: Airtel Africa on solid footing
Airtel Advantage Airtel Africa on solid footing Gross Revenues (USD Mn) EBITDA (USD Mn) and Margin (%) 35.5% 33.0% 783 28.8% 24.7% 25.5% 754 744 715 708 248 278 184 183 204 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 PBT (USD Mn) Operating Free Cash Flow (USD Mn) 130 198 202 97 158 1
Slide 27: Investment Summary
Investment Summary Presence in underpenetrated markets of India and Africa with large 1 residual opportunity Leading operator with scale and diversified businesses across 2 markets Bulk investments already in place; best in class spectrum bank in 3 markets of operations 4 Demonstrated superior execu
Slide 28: THANK YOU
THANK YOU
Bharti Airtel — Investor Presentation (February 2018) on 6ix