Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (August 2012)
29 slides from Bharti Airtel's investor presentation, August 2012
Slide 1: Investor Presentation
Investor Presentation Bharti airtel limited August 2012
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: Bharti airtel – An Integrated Operator
The Company...Bharti airtel – An Integrated Operator B2C B2B Passive Mobile Telemedia Digital TV Airtel Business Infrastructure Services Services Services Services Cellular mobile Offers fixed Pan India DTH Services to large Bharti Infratel services across telephony and operations enterprises and ow
Slide 4: The Company…Bharti airtel
The Company…Bharti airtel No. of circles (India) Today Countries 1 5 15 22 20 ‘ 1996 2001 2003 2004 2012 Fully integrated telecom player offering end to end solutions and entering new geographies
Slide 5: Growth trajectory reflected in the numbers
Growth trajectory reflected in the numbers 1996 2012 Single Circle Operator Company Profile Largest integrated private telecom operator < 25k Customers ~ 252 mn ~ USD 17 mn Revenue ~ USD 15 bn ~ USD 2.5 mn EBITDA ~ USD 5 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Market Capitalization ~ USD
Slide 6: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST in -country wireless operator in the FY 12 (in Mn) world (1) Customers 251.6 LARGEST private INTEGRATED telecom company in Revenue $ 14,937 India EBITDA $ 4,957 5th LARGEST Mobile telecom operator in the w
Slide 7: Latest Results – 1Q'13
Latest Results – 1Q’13 Key operating and financial metrics Continued Strong Performance Q1 FY 13* Y-on-Y Wireless CMS 20.1% Customers 260.7 mn Wireless RMS 29.1% Total minutes on network carried in Qtr, net of Revenue Rs. 193.5 bn 14% eliminations 275 bn EBITDA Rs. 58.5 bn 2.5% Balance sheet strengt
Slide 8: Total Revenue (Rs.mn)
Performance dashboard - 3 line graph 200,000 80% 70.9% 71.1% 193,501 71.2% 69.9% 68.6% 190,000 70% 184,767 Total Revenue (Rs.mn) 70.2% 187,294 180,000 60% 170,000 172,698 50% 162,930 169,749 47.4% 44.8% 44.6% 44.5% 45.4% 44.4% 160,000 40% 150,000 30% Q311 Q411 Q112 Q212 Q312 Total Revenue (Rs. Mn) (
Slide 9: Wireless Services
Wireless Services
Slide 10: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.934.1 mn Population 1.2 billion → Relatively large youth population Wireless Penetration c.76.99% Telecom penetration c.79.6% Operational metrics per month (~965.5 mn telecom subs) Usage per user 330 min Sub number should go upto 1 Bill
Slide 11: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Jun 4.7 Mn… less than over last 3 months S-curve triggered average run rate of 6.1 Mn Closing Subs Net Adds 90% 1,000 25 80% 70% 800 20 60% 600 15 50% M illio n s 40% 400 10 30% 20% 200 5 10% - - 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Slide 12: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 200 187 25% 180 169 23% 20.1% 155 154 21% 160 143 142 19.9% 137 140 19% 16.8% (mn) 117 112 16.6% 120 104 99 17% 16.6% 16.5% 95 91 14.7% 100 15% 80 11.7% 13.2% 13% 12.5% 80 11.1% 11.2% 60 11% 10.7% 8.6% 40 22 25 9% 1
Slide 13: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 200 19.9% 19.8% 19.8% 19.7% 20.6% 22% 102% 97.3% 95.8% 95.1% 98% 96.2% 150 18% 93.7% 94% 100 14% 181.3 187.3 90% 169.2 172.8 175.7 96.3% 96.3% 96.3% 96.3% 96.2% 86% 50 10% 82% 0 6% 78% Q112 Q212 Q312 Q412 1Q13 Q112
Slide 14: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size Changing face of growth (>$ 12Bn) through M-Com, M- Revenue Market Share entertainment & 3G Cost Net Adds Improving cost efficiencies Non financial Maximizing Driven by rura
Slide 15: Telemedia Services
Telemedia Services
Slide 16: 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 87 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises. 3. C
Slide 17: Digital Services
Digital Services
Slide 18: A Snapshot – Adding 1 out of every 4 new customers joining the DTH
A Snapshot Launched “Airtel Digital TV” service in October 2008 as fifth operator providing Direct-to-Home (DTH) services in India Current subscriber base of ~7.4 million customers – Adding 1 out of every 4 new customers joining the DTH platform – Currently offer a total of 298 channels including 15
Slide 19: Airtel Business
Airtel Business
Slide 20: A Snapshot
A Snapshot Airtel Business 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 Carriers: Wholes
Slide 21: Emerging Growth Engines: Passive Infra, Africa
Emerging Growth Engines Passive Infra Africa
Slide 22: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue (USD Mln) EBITDA (USD Mln) 509 37.7% 37.5% 37.3% 38.6% 36.5% 510 250 486 482 481 192 200 182 186 180 480 163 150 450 445 100 420 50 0 390 Q112 Q212 Q312 Q412 Q113 Q112 Q212 Q312 Q412 Q113 Focus on tenancy enhancement…driving Revenue & Profitability The a
Slide 23: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 112000 2.2 34,000 1.9 1.94 1.97 1.89 1.91 1.87 1.81 1.82 1.82 2 1.79 1.77 1.8 107000 1.8 1.7 33,000 109,318 108,922 108,998 109,101 109,114 1.6 33,660 1.6 102000 33,326 33,203 33,056 1.
Slide 24: Transaction Rationale
Transaction Rationale Shareholding and 100% Cash Transaction Management Control Focus on Core Brand – ‘Airtel’ Global Middle East Stature Operators Clean / Emerging Market certainty Characteristics of transaction Strong Platform for Future Expansion Low Competitive Manageable Intensity Deal Size Div
Slide 25: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 77% 46% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~433 ~120 ARPU (US$) ~$3.4 ~$6.5 ARPM (US cents ¢) 0.8¢ 5.4¢ And therefore huge opportuni
Slide 26: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 55.9 Mn Performance Indicators (CY 2012): Revenue: $ 4,137 Mn EBITDA: $ 1,097 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 120 Minutes →one of the lowest ARPU: ~ US$ 6.5 Rate per minute: ~ US¢ 5.4 → one of the highest
Slide 27: Recent Honors
Recent Honors
Slide 28: Bharti airtel – Leadership in business
Bharti airtel – Leadership in business Recent Honours Sunil Bharti Mittal, Won :‘Best National Mobile Ranked #71 in top 100 list of Chairman & Group CEO Operator’, ‘Best VAS Provider’, Global Brands by Millward Brown ‘Best Enterprise Services Provider’ , Global Game changer at Optimer, published in
Slide 29: thank you
thank you 2