Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (October 2009)
40 slides from Bharti Airtel's investor presentation, October 2009
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited Oct 2009
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: Advantage India
Advantage India Population: 1.2 billion → increasing urbanisation → relatively large youth population GDP Growth (Real) : ~6.5% → second highest growing economy GDP Size (PPP adjusted): US$ 3 trillion → fourth largest economy in the world Telecom penetration: 43.50% (509.04 mn telecom subs)
Slide 4: The Company...Bharti Airtel – An Integrated Telco
The Company...Bharti Airtel – An Integrated Telco Wireless Services Enterprise Services 2G/3G Carriers Rural Market Corporate Telemedia Services Passive Infrastructure Services Fixed Line Broadband DTH (Media)/IPTV Fully integrated telecom player offering end to end solutions 4
Slide 5: Bharti Airtel - positioning in the world and India
Bharti Airtel - positioning in the world and India 3rd LARGEST wireless operator in the world1 LARGEST private INTEGRATED telecom company in India 6th LARGEST INTEGRATED telecom operator in the world LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST operator in
Slide 6: Latest Results – Q2 FY09/10
Latest Results – Q2 FY09/10 Key operating and financial metrics Continued Strong Performance Q2 FY 10 Y-on-Y Wireless Customer market share leadership at 23.5%. Customers 113.44 mn 41.8% Total minutes on network carried in Q2 – 164 billion Total employee strength – 18,598 Revenue $ 2,049 mn 9.
Slide 7: Segment contribution…Rev, EBITDA and Investment
Segment contribution…Rev, EBITDA and Investment REVENUE EBITDA 9% 1% 10% -6% 22% 27% 62% 9% 82% 9% Mobile Services Telemedia Services Mobile Services Telemedia Services Enterprise Services Passive Infrastructure Services Enterprise Services Passive Infrastructure Services Others Others INVESTMENTS 3
Slide 8: Performance dashboard - line graph
Performance dashboard - 3 line graph Productivity Indicators = growing revenues + cost efficiencies + capital productivity 8 Mobile Services Telemedia Services Enterprise Services
Slide 9: Recently in news...
Recently in news... • Announced Managed Services Joint Venture with Alcatel-Lucent to manage Bharti Airtel’s pan- India Broadband and Telephone services and help Airtel’s transition to Next Generation Networks. • Launched new terrestrial cable network to Bhutan which will help enterprises in Bhutan
Slide 10: Wireless Services
Wireless Services 10 Mobile Services Telemedia Services Enterprise Services
Slide 11: Indian Wireless Market…KPIs
Indian Wireless Market…KPIs JK Sub Base : 471.7 mn →second largest market HP PB Wireless Penetration: 40.31% UP(W) →lowest in the world HAR HHI Index: very high DELHI DEL →one of the most competitive market RAJ AS UP(E) Prepaid Base: 90%+ BH NE →one of the highest in the world GUJ MADHYA MP
Slide 12: Rapidly Growing Wireless Market
Rapidly Growing Wireless Market Net Adds in Sept 15 Mn…higher than 13.3 Mn S-curve triggered average net adds per month in 1H10 Series2 Series1 90% 500 16 15 80% 450 14 400 13 70% 12 350 11 60% 300 10 9 50% 250 8 7 40% 200 6 5 30% 150 4 100 3 20% 50 2 10% 1 - - 0% 1999 2001 2003 2005 2007 2009 2011
Slide 13: Wireless Market Structure
Wireless Market Structure Subscriber Trends Customer Market Share – CMS (%) 25.0% 23.4% 24.6% 23.0% 120.00 110.51 21.0% 100.00 18.3% 17.6% 86.12 19.0% 17.8% 82.85 17.3% 80.00 17.0% 15.2% 63.44 15.0% 13.4% (mn) 60.00 51.45 46.80 13.0% 10.9% 40.00 33.03 30.07 30.56 11.0% 9.6% 9.9% 9.3% 28.22 21.07 17.
Slide 14: Company Highlights on Wireless Services
Company Highlights on Wireless Services 14 Mobile Services Telemedia Services Enterprise Services
Slide 15: First mover advantage / Product innovations
First mover advantage / Product innovations Electronic Easy Music Recharge / Micro Prepaid Life time validity product Hello Tunes (Ring Back Tones) Song Catcher Call Home Service Music on Demand Airtel Live (Portal) Google search Portfolio Manager (Stock Tracker) Money Transfers iPhone Blackberry M
Slide 16: Performance Indicators - Financial
Performance Indicators - Financial Revenues (INR mn) EBITDA (INR mn) & Margin (%) 40.8 35.5 30.7 30.2 31.4 31.5 33.0 31.9 28,000 27,183 85,000 82,216 82,285 27,000 79,392 80,994 25,860 80,000 26,000 72,843 24,963 75,000 25,000 25,860 69,150 70,000 24,000 64,201 23,000 22,887 22,779 65,000 22,009 60,
Slide 17: Performance Indicators - Operational
Performance Indicators - Operational Customers & Market Share Prepaid/Postpaid 105% 120.0 110.5 28.0% 110.0 100.4% 102.4 27.0% 100% 100.0 93.9 85.7 26.0% 94.7% 95.2% 90.0 95.4% 95% 93.5% 94.2% 80.0 77.5 25.0% 92.3% 92.9% 91.6% 69.4 90.4% 91.0% 70.0 55.2 62.0 24.6% 24.7% 23.5% 24.0% 24.2% 90% 60.0 24
Slide 18: Road map – Wireless Market
Road map – Wireless Market Current Proposed Presence Operational in 22 circles of India on GSM Looking for options primarily in technology. emerging markets. Launched Operations in Srilanka Population 83% of population covering 5072 census • Poised to cover all census towns and Coverage towns and ov
Slide 19: Road map – Wireless Market
Road map – Wireless Market Current Proposed Sales & • One of the widest distribution • Continue distribution expansion, Distribution network. especially in rural areas Network • Following the FMCG company distribution model - Match Box Approach • Present in over a million PoP in India. • Tie-up with
Slide 20: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size ($ 6 Bn) Changing face of Revenue Market growth through M-Com, Share M-entertainment & 3G Cost Net Adds Improving cost efficiencies Maximizing Non financial Driven
Slide 21: Telemedia Services
Telemedia Services 21 Mobile Services Telemedia Services Enterprise Services
Slide 22: A snapshot
A snapshot Largest private operator having presence in the voice , broadband , IPTV and data. Focus on SMB segment & Broadband at Homes Key Performance Indicators 1. Voice (wire-line) and Data (DSL) Presence in 95 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises
Slide 23: Telemedia Services
Telemedia Services Business Units SMBs Homes • Voice • Data • Broadband Products • Mobile Services • Voice • Applications • IPTV •SaaS Dominant Broadband & Fixed Voice Goal One-Stop Shop for All Airtel Services share of the affluent in targeted 95 and Solutions to SMBs cities • Deeper & Not Wider: 9
Slide 24: Product Portfolio
Product Portfolio 24 Mobile Services Telemedia Services Enterprise Services
Slide 25: Performance Indicators
Performance Indicators Revenues (INR mn) EBITDA (INR Mn) & Margin (%) 43.4 43.8 42.2 43.6 41.7 42.1 40.5 42.9 4,000.0 8,800 8,585 8,550 8,544 8,486 8,458 3,800.0 3,696 8,500 3,614 3,667 8,200 7,988 3,600.0 3,531 3,463 7,900 7,641 3,400.0 3,344 3,367 7,600 7,307 3,200.0 3,173 7,300 7,000 3,000.0 Q308
Slide 26: Enterprise Services
Enterprise Services 26 Mobile Services Telemedia Services Enterprise Services
Slide 27: A snapshot
A snapshot Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers Corporates: Single point of contact for all telecommunication needs for Top 2500 corporate customers, providing full suite of voice, data, and managed communications solutions Carrie
Slide 28: Highlights
Highlights # 1 Operator in India in terms of: NLD Revenue (Voice & Data) ILD Revenue (Voice & Data) Corporate Fixed Line Operator Corporate Internet Provider Corporate Mobility Provider VSAT Provider (installed base) 28 Mobile Services Telemedia Services Enterprise Services
Slide 29: Domestic Network
Domestic Network Fiber commissioned for over 113,326 Kms Transmission Network (14,000 SDH nodes) High resilience via ring structure & automatic switching Tier-1 MPLS network (across 120 Cities) Internet backbone capacity > 60 Gbps Proactive 24 x 7 x 365 NOC 301 LDCAs & 1275 SDCAs cover
Slide 30: International Network
International Network 30 Infrastructure Coverage Interconnects with about 400 International Carriers TDM and IP Voice traffic termination in 230+ countries NGN with 4 Global Media Gateways Major International PoPs for carrier interconnect at Los Angeles, New York, London, Hong Kong & Singapo
Slide 31: What We Offer
What We Offer • Wholesale Voice • Retail Voice - Mobility Solutions - NLD Voice Carriage Services - Corporate Mobile Ser Voice Services - International & Domestic Toll Free services - Mobile Data (Blackberry, Data card, applications) - International Calling Services - SMS-Based Tools & Bulk SMS Solu
Slide 32: Certifications
Certifications ISO 27001: 2005 Certified on Pan India basis. Information Management Security System including policies, procedures, physical, legal and technical security controls forming part of the organization’s overall risk management processes. TL 9000/ ISO9001-2000 Certified on Pan I
Slide 33: Performance Indicators – Enterprise Services
Performance Indicators – Enterprise Services Revenues (INR mn) EBITDA (INR mn) & Margin (%) 34.4 37.8 44.2 42.8 44.9 45.9 48.8 51.7 21,874 21,808 21,628 11,000.0 22,000 20,982 21,331 10,000.0 9,799 9,920 10,246 21,000 9,369 19,572 9,000.0 8,655 20,000 19,000 8,000.0 18,000 7,000.0 17,000 16,340 6,17
Slide 34: Passive Infrastructure Services
Passive Infrastructure Services 34 Mobile Services Telemedia Services Enterprise Services
Slide 35: A snapshot
A snapshot Bharti Infratel operates in 11 circles. Indus Tower operates in 16 circles. Standard Master Services Agreement with competitive rates already in place. Key focus areas: To increase sharing factor (tenancy) from current levels of 1.49 for Infratel and 1.61 for Indus. Provide en
Slide 36: Performance Indicators - Bharti Infratel
Performance Indicators - Bharti Infratel Revenues (INR mn) EBITDA (INR mn) & Margin (%) 12,702 37.1 36.6 33.3 33.5 40.1 44.4 46.8 13,000 11,983 5,000 4,500 4,257 10,563 3,870 3,992 11,000 4,000 3,557 3,667 3,500 8,586 2,903 9,000 8,020 3,000 7,241 2,500 2,236 7,000 6,023 2,000 1,500 5,000 1,000 Q408
Slide 37: Indus Towers
Indus Towers Roof Top Tower 102,000 1.70 101,000 100,728 100,000 99,000 97,925 1.6 1 1.60 98,000 97,000 95,154 1.55 96,000 1.50 95,000 1.4 8 94,000 93,000 1.40 Q409 Q110 Q210 No of towers Sharing Factor Ground Based Tower First of its kind deal…Bharti (42%), Voda (42%) & Idea (16%) Largest indep
Slide 38: Recent Honours
Recent Honours 38 Mobile Services Telemedia Services Enterprise Services
Slide 39: Bharti Airtel – Leadership in business Recent Honours
Bharti Airtel – Leadership in business Recent Honours Bharti Airtel and IFFCO JV Awarded the “Most Preferred Adjudged Wireless Service bagged the “Best Content Cellular Service Provider” Provider of the Year 2009 - Service” award and Gujrat E- Award at CNBC Awaaz Frost & Sullivan Asia Pacific Gram p
Slide 40: 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