Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (August 2011)
27 slides from Bharti Airtel's investor presentation, August 2011
Slide 1: Investor Presentation Bharti airtel limited
Investor Presentation Bharti airtel limited August 2011
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 Telco
The Company...Bharti airtel – An Integrated Telco Wireless Services Enterprise Services 2G Carriers Corporates 3G Rural Market Passive Infrastructure Services Infratel Telemedia Services Indus Fixed Line Broadband DTH IPTV Pay per view / HD Interactive Services including Gaming Fully integrated tele
Slide 4: The Company…Bharti airtel
The Company…Bharti airtel No. of circles (India) Today Countries 1 5 15 22 19 ‘ 1996 2001 2003 2004 2010 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 2011 Single Circle Operator Company Profile Largest integrated private telecom operator < 25k Customers ~ 221 mn ~ USD 17 mn Revenue ~ USD 13 bn ~ USD 2.5 mn EBITDA ~ USD 4 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 11 (in Mn) world (1) Customers 220.9 LARGEST private INTEGRATED telecom company in Revenue $ 13,319 India EBITDA $ 4,472 5th LARGEST Mobile telecom operator in the w
Slide 7: Latest Results – 1Q'12
Latest Results – 1Q’12 Key operating and financial metrics Continued Strong Performance Q1 FY 12* Y-on-Y Wireless CMS 19.8% Customers 230.8 mn 25.9.% Wireless RMS 30.0% Total MOU carried in Qtr 251.9 bn Revenue $ 3,798 mn 45% Balance sheet strength: EBITDA $ 1,276 mn 34% Assets $ 33.2 bn Cash Profit
Slide 8: Total Revenue (Rs.mn)
Performance dashboard - 3 line graph 175,000 169,749 80% 73.6% 72.1% 70.8% 162,930 165,000 71.2% 70% Total Revenue (Rs.mn) 155,000 69.9% 157,721 152,294 60% 145,000 135,000 50% 125,000 122,438 46.9% 45.3% 44.8% 44.6% 40% 115,000 42.5% 105,000 30% Q111 Q211 Q311 Q411 Q112 Total Revenue (Rs. Mn) (LHS)
Slide 9: Wireless Services
Wireless Services
Slide 10: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.851.70 mn Population 1.2 billion → Relatively large youth population Wireless Penetration c.71.11% Telecom penetration c.73.97% Operational metrics per month (~885.99 mn telecom subs) Usage per user 369 min Sub number should go upto 1 B
Slide 11: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in June 11.4 Mn…lesser than over last 3 S-curve triggered months average run rate of 16.3 Mn Closing Subscribers Net Adds 90% 900 26 80% 24 800 22 70% 700 20 60% 600 18 16 50% 500 14 (m n) 40% 400 12 10 30% 300 8 6 20% 200 4 10% 100 2 - - 0% N ov -03 M
Slide 12: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 25% 180 169 23% 21.6% 160 21% 19.9% 143 142 140 134 19% 17.5% 16.8% 17.2% 120 112 16.6% 108 106 17% 99 95 100 91 15% (mn) 77 13.2% 80 70 13% 12.4% 67 11.7% 56 57 11.2%10.8% 10.7%11.4% 60 11% 36 35 35 9.0% 40 28 9% 2
Slide 13: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 100% 99.2% 98.2% 21.5% 98.1% 20.8% 97.5% 97.3% 180 20.3% 20.0% 19.8% 22% 96% 18% 92% 120 88% 96.0% 96.1% 96.2% 96.3% 96.3% 14% 162.2 169.2 143.3 152.5 136.6 84% 60 10% 80% 0 6% 76% Q111 Q211 Q311 Q411 Q112 Q111 Q21
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 (>$ 9 Bn) 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: Enterprise Services
eo / airtel Enterprise Services
Slide 18: 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 Carriers: Wh
Slide 19: Emerging Growth Engines
Emerging Growth Engines Passive Infra Africa
Slide 20: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue EBITDA 35.5 37.1 38.6 37.0 37.7 550 200 509 192 493 189 490 500 471 183 180 175 438 450 160 155 400 350 140 300 120 Q111 Q211 Q311 Q411 Q112 100 Q111 Q211 Q311 Q411 Q112 Focus on tenancy enhancement…driving Revenue & Profitability The above nos for Reven
Slide 21: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 34,000 1.77 1.80 109,000 2.00 1.87 1.73 1.80 1.83 1.90 107,000 1.78 1.68 1.70 1.75 33,000 1.80 1.65 1.65 105,000 1.70 32,000 1.60 103,000 108,586 108,922 1.60 107,789 32,942 106,438 1.5
Slide 22: 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 23: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 70% 40% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~445 ~121 ARPU (US$) ~$4 ~$7 ARPM (US cents ¢) 1¢ 6¢ And therefore huge opportunity space
Slide 24: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 46.3 Mn Performance Indicators (CY 2011): Revenue: $ 2,878 Mn EBITDA: $ 6,30 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 121 Minutes →one of the lowest ARPU: ~ US$ 7.3 Rate per minute: ~ US¢ 6.3 → one of the highest
Slide 25: Recent Honors
Recent Honors
Slide 26: Bharti airtel – Leadership in business, Recent Honours
Bharti airtel – Leadership in business Recent Honours Economic Times Telecom Awards 2011 Innovative Product Value Added Service Customer Experience Enhancement Frost & Sullivan 2011 Asia Pacific ICT Awards Enterprise Telecom Service Provider of the Year Wholesale Data Service Provider of the year Mo
Slide 27: thank you
thank you 2