Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Day (March 2013)
33 slides from Bharti Airtel's investor day presentation, March 2013
Slide 1: SGX Announcement: SingTel Investor Day 2013 - Bharti Airtel
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * SINGTEL Company Registration No. 199201624D Announcement submitted on behalf of SINGTEL Announcement is submitted with SINGTEL respect to * Announcement is submitted by * Chan Su Shan
Slide 2: Bharti Airtel Limited, March 2013
Bharti Airtel Limited March 2013
Slide 3: 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 4: 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 and Conclusion 2 of 30
Slide 5: Bharti Airtel – Who we are
Bharti Airtel – Who we are
Slide 6: Bharti Airtel
Bharti Airtel 1.84bn Addressable Population 5 Present in US$14.9bn 20 Revenue 4 Countries #1 Operator In India 1 #4 #4 Operator Operator In Africa2 #3 in the World2 in-country wireless service operator in the world 3 Source: TRAI and Informa Telecoms and Media Notes: 1. As of December 31, 2012 2. Fo
Slide 7: Global Telecom Company
Global Telecom Company B2C B2B Tower Mobile Telemedia Services Digital TV Airtel Business Infrastructure Services Services • Cellular mobile • Offers fixed • Pan India DTH • Services to large • Bharti Infratel services across telephony and operations enterprises and (BIL) owns 34,668 20 countries br
Slide 8: Scale and Profitability across Diversified Segments
Scale and Profitability across Diversified Segments • FY12 Revenues of $14.9 bn and EBITDA of $5.0 bn • Q3FY13 Revenues of $3.7 bn and EBITDA of $1.1 bn • Bharti Airtel Africa contributed 25% of FY12 revenues (27% of Q3 FY13 revenues) FY12 Revenue: $14.9 bn 1 FY12 EBITDA: $5.0 bn 1 Telemedia Digital
Slide 9: Leader Amongst Global and Emerging Market Telcos
Leader Amongst Global and Emerging Market Telcos Wireless Subscribers as of September 20122 Key Highlights • One of the world’s leading providers of telecommunication services with significant China Mobile 683 presence in 20 countries including India, Bangladesh, Sri Lanka and 17 countries in Africa
Slide 10: The Company…Bharti Airtel
The Company…Bharti Airtel No. of circles (India) Today: Countries 1 5 15 22 20 ‘ 1996 2001 2003 2004 2011 2012 • Mobile services • IPO of • Becomes • Launched mobile • Expanded African under the brand Bharti Airtel India’s largest services in Sri Lanka operation to Rwanda name ‘Airtel’ through wirel
Slide 11: Unique Business Model
Unique Business Model
Slide 12: Bharti Airtel: Challenging mindsets
Bharti Airtel: Challenging mindsets Challenging Text The Mindset Text Challenging The Model • Mobiles for ‘classes’ not for the ‘masses’ • Outsourcing non core • Post-paid customer is better activities than pre–paid customer • From competition to • High ARPU performance competitive collaboration thr
Slide 13: 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 14: Built Strategic Partnerships in Business Delivery Model
Built Strategic Partnerships in Business Delivery Model • Network management • Information technology outsourcing Nortel, Avaya, Cisco, Wipro, IBM Daksh, Mphasis, Hinduja TMT, Aegis BPO • Call centers / customer service Teleperformance, Firstsource > 1.4m retail outlets • Distribution Indus Towers;
Slide 15: Bharti Airtel: India Wireless Overview
Bharti Airtel: India Wireless Overview
Slide 16: 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 21% 17% 14% 13% 12% 8% 7% 8% Share 182 Aircel Others 5% 4% 147 BSNL+MTNL Airtel Subscribers (millions) 7% 31% 119 114 105 Tata 9% 70 63 65 RCOM 8% Idea Vodafone 14%
Slide 17: 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 % across Emerging Markets of Mobile Revenues 1 17.3 16.1 15.8 16.2 16.3 16.8 15.0 15.6 13.8 12.7 60 11.6 51 51 49 49 45 (%) 34 34 33 33 31 32 24 24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 18: Start of the Data Revolution (3G + 4G)
Start of the Data Revolution (3G + 4G) Bharti Airtel’s 3G/4G Position 3G and 4G Update J&K • Allocated 3G and/or BWA licenses in 16 telecom Himachal Pradesh circles and for a total consideration of ~$3.5bn Delhi • Bharti Airtel acquired 49% of Qualcomm India (BWA Haryana Punjab venture), thereby gai
Slide 19: Venture into Africa
Venture into Africa
Slide 20: Transaction Rationale
Transaction Rationale Bharti Airtel Transaction Objectives Achievements Shareholding and Full Management Control Global Stature with focus on Emerging Markets Ability to use brand ‘Airtel’ Manageable Deal Size Significant Synergies Diversification of India Risk Avoiding Greenfield Strong Platform Re
Slide 21: Africa – Opportunity for Growth
Africa – Opportunity for Growth India Africa 1 Mobile Penetration ~71% ~56% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~435 ~144 per sub 2 ARPU (US$) 2 ~$3.4 ~$6.2 ARPM (US cents ¢) 2 0.8¢ 4.3¢ Africa presented
Slide 22: Africa Performance Indicators
Africa Performance Indicators Total Subscribers (mn) and Total Minutes (bn) Minutes of Usage per sub 61.7 144 58.7 55.9 138 50.9 53.1 26.2 23.6 19.7 125 18.5 19.1 122 120 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 MoU per sub. per month Subscribers (m) Total Minu
Slide 23: Other Businesses
Other Businesses
Slide 24: Telemedia Services
Telemedia Services • Operates in the entire broadband continuum with a presence in voice, broadband, IPTV and data Revenue (US$m) EBITDA Margin (%) 42.4 43.1 45.0 42.5 42.1 • Focus on Retail and Small & Medium 797 779 Business (“SMB”) segment 717 658 524 • Key Performance Indicators – Voice (wire-li
Slide 25: Airtel Business
Airtel Business • Airtel Business provides a broad portfolio of services to large Corporates and Carrier Revenue (US$m) customers: EBITDA Margin (%) 44.5 28.1 24.1 18.7 16.2 • Corporates: Single point of contact for all 1,666 telecom needs for large corporate customers • Carriers: Wholesale voice an
Slide 26: Digital TV Services
Digital TV Services • Launched “Airtel Digital TV” service in October 2008 as fifth operator providing Direct- to-Home (DTH) services in India • Current subscriber base of ~7.9 million subscribers – Currently offers a total of 324 channels including 15 HD channels and 6 interactive services – First
Slide 27: Tower Infrastructure
Tower Infrastructure 1.99x 1.92x • Bharti Infratel is a tower infrastructure 1.82x provider to telecom operators in 11 81,389 Towers circles in India 46,721 111,240 • Bharti Infratel also holds a 42% stake in Indus Towers, amongst the largest tower 34,668 34,668 companies in the world, operating in
Slide 28: Financial Overview
Financial Overview
Slide 29: Robust Financials (Consolidated)
Robust Financials (Consolidated) 1 Total Revenues (US$bn) EBITDA (US$bn) and EBITDA margin 14.9 41% 40% 13.1 34% 33% 11.0 31% 4.4 8.8 8.0 3.5 3.3 5.0 3.4 FY09 FY10 FY11 FY12 9M FY13 FY09 FY10 FY11 FY12 9M FY13 Cash Flow from Operations (US$bn) Enterprise Value / EBITDA 4.3 4.0 9.8x 3.3 3.4 8.1x 2.8
Slide 30: 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 31: Investment Highlights
Investment Highlights
Slide 32: 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 33: Bharti Airtel Limited, March 2013
Bharti Airtel Limited March 2013