Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (May 2014)
34 slides from Bharti Airtel's investor presentation, May 2014
Slide 1: Management Presentation
Management Presentation Bharti Airtel Limited May 2014
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context
Slide 3: Agenda
Agenda • Introduction to Bharti Airtel • Bharti Airtel Business Model • Bharti Airtel Wireless Operations • Bharti Airtel Africa • Overview of Other Businesses • Financial Overview • Key Highlights 2 of 33
Slide 4: Bharti Airtel – Who we are
Bharti Airtel – Who we are
Slide 5: Bharti Airtel
Bharti Airtel 1.85bn Addressable Population 4 Present in US$14.2bn 20 Revenue 3 Countries #1 Operator In India 1 #2 #5 Operator Operator In Africa 5 #3 in the World1 in-country wireless service operator in the world 2 Source: TRAI and Informa Telecoms and Media Notes: 1. As of December 31, 2013 2. F
Slide 6: The “airtel” Brand
The “airtel” Brand Vision: Become the most loved brand by 2015 • Multiplatform services in telecom, enterprise and digital television, unified under brand “airtel” Alive • Successfully unified operations across the globe under the umbrella of ‘airtel’ • Amongst the Top 100 of Most Valuable Global Br
Slide 7: Global Telecom Company with a Diversified Portfolio
Global Telecom Company with a Diversified Portoflio Mobile Services • Wireless mobile services across 20 countries • Market leader in India both in terms of subscribers and revenue • 283.6 mn1 wireless subscribers globally Telemedia Services Airtel Business • Fixed telephony and • Services to large
Slide 8: Scale and Profitability across Diversified Segments
Scale and Profitability across Diversified Segments • FY14 Revenues of $14.2 bn and EBITDA of $4.6 bn • Q4 FY14 Revenues of $ 3.6 bn and EBITDA of $1.2 bn • International Operations contributed 31% of FY14 revenues FY14 Revenue: $14.2 bn 1 FY14 EBITDA: $4.6 bn 1 Telemedia Airtel Digital TV 4% Busine
Slide 9: Strong Growth Trajectory
Strong Growth Trajectory Company Profile 20 Countries Customer Base1 295m Revenue (US$) 14.2bn EBITDA (US$) 4.6bn Cash Profit 2 (US$) 4.0bn Market Cap 3 (US$) 21.2bn Launched 3G services in India • Acquired 115.0 MHz of liberalized spectrum • Acquired Zain Africa B.V., launching entry in the Februar
Slide 10: Unique Business Model
Unique Business Model
Slide 11: Bharti Airtel: Challenging mindsets
Bharti Airtel: Challenging mindsets Challenging Text The Mindset Text Challenging The Model • Mobiles for ‘classes’ not for Outsourcing non core activities the ‘masses’ IT Network Management • Post-paid customer is Nortel, Avaya, Cisco, Wipro, IBM Daksh, better than pre–paid Mphasis, Hinduja TMT, Ae
Slide 12: Created a Unique Business Model – “Minutes Factory”
Created a Unique Business Model – “Minutes Factory” • Improving affordability to gain positive • Focus on producing the elasticity is at the heart of our Minutes lowest cost minute whilst Factory model maintaining / growing margins Affordability • Drive affordability – more users – more usage Improv
Slide 13: Bharti Airtel: India Wireless Overview
Bharti Airtel: India Wireless Overview
Slide 14: Bharti Airtel: The Leading Indian Wireless Operator
Bharti Airtel: The Leading Indian Wireless Operator Wireless Subscriber Market Share 1 Wireless Revenue Market Share 2 Customer Market 23% 18% 15% 13% 11% 7% 8% 6% Share Others Aircel 3.5% 204 Tata 5.4% 7.4% Bharti Airtel 30.5% 164 BSNL + MTNL 6.6% 134 118 Reliance Communicatio 98 ns 7.5% 69 63 53 I
Slide 15: India Wireless – Significant Upside From ‘Data’
India Wireless – Significant Upside From ‘Data’ Data as a percent of Mobile Revenues Bharti Airtel’s Non Voice Revenues as a % of across Emerging Markets Mobile Revenues 1 20% 15% 60 10% 51 51 49 49 5% 45 0% (%) 34 34 33 33 31 32 24 24 22 16 Data Revenue Other Non Voice Non Data Revenue 14 14 8 7 Bh
Slide 16: Strong Spectrum Position
Strong Spectrum Position Bharti Airtel’s Spectrum Position Spectrum Holding J&K • Acquired 115 Mhz of 20 year liberalized spectrum positions – Enhanced long term deployment flexibility Himachal Pradesh • Prime Spectrum to Lead Data Growth Story in Feb 2014 Delhi auctions Punjab Haryana Uttar Pradesh
Slide 17: International Operations on a Steady Path
International Operations on a Steady Path
Slide 18: Transaction Rationale
Transaction Rationale Bharti Airtel Transaction Objectives Achievements Shareholding and Full Management Control Global Stature with focus on Emerging Markets Ability to use brand ‘Airtel’ Manageable Deal Size Significant Synergies Diversification of India Risk Avoiding Greenfield Strong Platform Re
Slide 19: Africa – Opportunity for Growth
Africa – Opportunity for Growth India Africa 1 Mobile Penetration ~73% ~63% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~437 ~136 per sub 2 ARPU (US$) 2 ~$3.2 ~$5.5 ARPM (US cents ¢) 2 0.6¢ 3.2¢ Africa presented
Slide 20: Africa Performance Indicators
Africa Performance Indicators Total Subscribers (mn) and Total Minutes (bn) Minutes of Usage per sub 70.0 66.4 68.4 69.4 30.0 143 141 63.7 64.2 134 136 123 60.0 27.8 28.3 28.2 25.0 26.0 50.0 23.4 20.0 40.0 15.0 30.0 10.0 20.0 10.0 5.0 0.0 0.0 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q4 FY13 Q1 FY14 Q
Slide 21: Other Businesses
Other Businesses
Slide 22: Telemedia Services
Telemedia Services • Pan-India presence of 87 cities • Operates in the entire broadband continuum - fixed line voice and high speed broadband across Homes and Office segments, broadband (via DSL), IPTV, internet leased line and MPLS services • Key Performance Indicators – Voice (wire-line) and Data
Slide 23: Airtel Business
Airtel Business India’s leading and most trusted provider of ICT services Customer base across - enterprises, governments, carriers and small and medium business. Diverse portfolio of services - voice, data, video, network integration, data centers, managed services, enterprise mobility applications
Slide 24: Digital TV Services
Digital TV Services • First Company in India which provides real integration of all the three screens viz. television, mobile and computer enabling our customers to record their favorite TV programs through mobile and web • Launched “Airtel Digital TV” service in October 2008 as fifth operator provi
Slide 25: Airtel Money
Airtel Money • Airtel Money, Airtel’s semi-closed wallet has witnessed phenomenal growth over the year • Key Performance Indicators (India) – Active subscribers: Stands at 1.7 million as on Mar 31, 2014 – Transaction Volume: 38 million during quarter ended Mar 31, 2014 Airtel Money is offered in – A
Slide 26: Tower Infrastructure
Tower Infrastructure • Bharti Infratel is a leading tower infrastructure provider • Also holds a 42% stake in Indus Towers, amongst the largest tower companies in the 2.05 120,000 1.99 2.00 world, operating in 15 circles, thereby enabling 1.9 Sharing Factor (x) 100,000 the Company to provide leading
Slide 27: Financial Overview
Financial Overview
Slide 28: Robust Financials (Consolidated)
Robust Financials (Consolidated) 1 Total Revenues (US$bn) EBITDA (US$bn) and EBITDA margin 5 50% 14.3 14.1 14.2 13.1 40% 34% 32% 40% 30% 32% 8.8 30% 3 4.4 4.6 4.3 4.6 20% 3.5 10% 0 0% FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Cash Flow from Operations (US$bn) Enterprise Value / EBITDA 9.8x 8
Slide 29: Leadership
Leadership
Slide 30: Leadership in Business
Leadership in Business Ranked #71 in top 100 list of Sunil Bharti Mittal, Bharti Airtel was placed among the top Chairman 200 brands globally in the annual Global Brands by Millward Brown Optimer, published in Financial • Honorary Degree awarded by survey undertaken by Brand Finance, Times , with an
Slide 31: Highest Standards of Corporate Governance
Highest Standards of Corporate Governance Credit Rating and Information Services of India (“CRISIL”) has assigned its Governance and Value Creation rating “CRISIL GVC Level 1” to the corporate governance and value creation practices of Bharti Airtel Quarterly financials audited on IFRS, IGAAP basis
Slide 32: Investment Highlights
Investment Highlights
Slide 33: Investment Highlights
Investment Highlights Leading Emerging Growth Strategy: Markets Telco Experienced Mobile Data, (Asia and Africa) management team Increased Penetration and New Services Innovative business Focused on Free model driving value Cash Flow Generation and efficiency from scale Present across Strong financi
Slide 34: Management Presentation
Management Presentation Bharti Airtel Limited May 2014