Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (December 2011)
27 slides from Bharti Airtel's investor presentation, December 2011
Slide 1: Investor Presentation
Investor Presentation Bharti airtel limited December 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: The Company...Bharti airtel – An Integrated Telco
The Company...Bharti airtel – An Integrated Telco Wireless Services Enterprise Services 9 2G 9 Carriers 9 Corporates 9 3G 9 Rural Market Passive Infrastructure Services 9 Infratel Telemedia Services 9 Indus 9 Fixed Line 9 Broadband B db d DTH 9 IPTV 9 Pay per view / HD 9 Interactive Servic
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 R Revenue ~ USD 13 bn b ~ USD 2.5 mn EBITDA ~ USD 4 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Market Capitalization ~
Slide 6: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST in ‐country 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 ope
Slide 7: Latest Results – 2Q'12
Latest Results – 2Q’12 Key operating and financial metrics Continued Strong Performance Q2 FY 12* Y‐on‐Y Wireless CMS 19.8% Customers 236.9 mn 21.6.% Wireless RMS 30.0% Total MOU carried in Qtr 250 4 bn 250.4 Revenue $ 3,782 mn 13% Balance sheet strength: EBITDA $ 1,273 mn 13% Assets $ 31.
Slide 8: Performance dashboard - line graph
Performance dashboard - 3 line graph 172,698 175,000 169,749 80.0% 72.1% 162,930 70.8% 165,000 70.0% 152,311 71.2% 155,000 69.9% 157,721 68.6% 60.0% 145,000 135 000 135,000 50.0% 125,000 46.9% 45.3% 44.8% 44.6% 44.5% 40.0% 115,000 105,000 30.0% Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Total Revenue (
Slide 9: Wireless Services
Wireless Services
Slide 10: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.873.61 mn Population 1 2 billion 1.2 → Relatively large youth population Wireless Penetration c.72.62% Telecom penetration c.75.4% Operational metrics per month (~906.93 mn telecom subs) Usage per user 345 min Sub number sho
Slide 11: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Aug 7.9 Mn…lesser than over last 3 S-curve triggered months average run rate of 8.5 Mn Closing Subs Net Adds 90% 900 25 800 80% 700 20 70% % 600 60% 15 500 50% 400 40% 10 300 30% 200 5 20% 100 10% - - 0% F eb-06 J un-06 O c t- 0 6 F eb-07 J un-07 O
Slide 12: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 200 25% 173 180 23% 20.8% 160 147 145 21% 143 19.8% 140 19% 17.1% 117 116 118 16.8% 16.8% 120 17% 16.6% 101 100 (mn) 100 89 15% 84 79 12.2% 13.6% 74 75 13% 80 11.6% 11.5% 11.5% 10.8% 10.8% 60 11% 10.2% 44 40 29 30 2
Slide 13: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 102% 20.8% 98.1% 98.2% 180 20.3% 20.0% 19.9% 19.8% 22% 98% 97.5% 97.3% 94% 93.7% 18% 120 90% 169.2 172.8 14% 96.3% 96.3% 96.3% 162.2 96.1% 96.2% 152.5 86% 143.3 60 10% 82% 78% 0 6% Q211 Q311 Q411 Q112 Q212 Q211 Q31
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 Driv
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
Slide 17: Enterprise Services
E Enterprise i Services S i
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 p g ffull suite off voice, data, and managed g communications solutions
Slide 19: Emerging Growth Engines: Passive Infra, Africa
Emerging Growth Engines Passive Infra Africa
Slide 20: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue EBITDA 37.1 38.6 37.0 37.7 37.5 220 490 493 500 486 471 200 189 192 183 182 450 175 180 400 160 140 350 120 300 Q211 Q311 Q411 Q112 Q212 100 Q211 Q311 Q411 Q112 Q212 Focus on tenancy enhancement…driving Revenue & Profitability The above nos for Revenue &
Slide 21: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 1.87 1.89 109,000 1.83 2.00 34 000 34,000 1 90 1.90 1.80 1.90 107,000 1.78 1.77 1.79 1.80 1.80 1.73 105,000 1.70 33,000 1.68 1.70 1.65 103,000 108,586 108,922 108,998 1.60 107,789 106,4
Slide 22: Transaction Rationale
Transaction Rationale 9 Shareholding and 100% Cash Transaction 9 Management Control Focus on Core 9Brand – ‘Airtel’ Airtel Global Middle East 9 Stature Operators Clean / Emerging Market 9 certainty Characteristics of transaction Strong Platform St Pl tf for Future Expansion Low Competitive 9Manageab
Slide 23: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 73% 40% Average Number of 10‐12 3‐5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~423 423 ~128 128 ARPU (US$) ~$4 ~$7 ARPM (US cents ¢) 1¢ 6¢ A d therefore And th f huge
Slide 24: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 48.4 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: 128 Minutes →one o e of thee lowest o es ARPU: ~ US$ 7.3 Rate per minute: ~ US¢ 6.1
Slide 25: Recent Honors
Recent Honors
Slide 26: Bharti airtel – Leadership in business
Bharti airtel – Leadership in business Recent Honours Economic Times Telecom Awards 2011 9 Innovative Product Value Added Service 9 Customer Experience Enhancement Frost & Sullivan 2011 Asia Pacific ICT Awards 9 Enterprise Telecom Service Provider of the Year 9 Wholesale Data Service Provider of
Slide 27: thank you
thank you i, airtel
Bharti Airtel — Investor Presentation (December 2011) on 6ix