Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (January 2014)
34 slides from Bharti Airtel's investor presentation, January 2014
Slide 1: Management Presentation
Management Presentation Bharti Airtel Limited January 2014
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: 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 2 of 33
Slide 4: Bharti Airtel – Who we are
Bharti Airtel – Who we are
Slide 5: Bharti Airtel
Bharti Airtel 1.85bn Addressable Population 4 Present in US$14.7bn 20 Revenue 3 Countries #1 Operator In India 1 #2 #4 Operator Operator In Africa 5 #3 in the World1 in-country wireless service operator in the world 2 Source: TRAI and Informa Telecoms and Media Notes: 1. As of March 31, 2013 2. Four
Slide 6: The “airtel” Brand
The “airtel” Brand Vision: Become the most loved brand by 2015 • Multiplatform services in telecom, enterprise and digital television, unified under brand “airtel” Alive • Successfully unified operations across the globe under the umbrella of ‘airtel’ • Amongst the Top 100 of Most Valuable Global Br
Slide 7: Global Telecom Company with a Diversified Portfolio
Global Telecom Company with a Diversified Portoflio Mobile Services • Wireless mobile services across 20 countries • Market leader in India both in terms of subscribers and revenue • 275.2 mn1 wireless subscribers globally Telemedia Services Airtel Business • Fixed telephony and • Services to large
Slide 8: Scale and Profitability across Diversified Segments
Scale and Profitability across Diversified Segments • FY13 Revenues of $14.1 bn and EBITDA of $4.3 bn • Q3 FY14 Revenues of $ 3.5 bn and EBITDA of $1.1 bn • Bharti Airtel Africa contributed 32% of FY13 revenues FY13 Revenue: $14.1 bn 1 FY13 EBITDA: $4.3 bn 1 Telemedia Digital TV 4% Airtel Business 2
Slide 9: Strong Growth Trajectory
Strong Growth Trajectory Company Profile 20 Countries Customer Base1 271m Revenue (US$) 14.1bn EBITDA (US$) 4.3bn Cash Profit 2 (US$) 3.6bn Market Cap 3 (US$) 20.4bn Launched 3G services in India • Acquired Zain Africa B.V., launching entry into Africa • Acquired 70% stake in Warid Telecom, Banglade
Slide 10: Unique Business Model
Unique Business Model
Slide 11: Bharti Airtel: Challenging mindsets
Bharti Airtel: Challenging mindsets Challenging Text The Mindset Text Challenging The Model • Mobiles for ‘classes’ not for Outsourcing non core activities the ‘masses’ IT Network Management • Post-paid customer is Nortel, Avaya, Cisco, Wipro, IBM Daksh, better than pre–paid Mphasis, Hinduja TMT, Ae
Slide 12: 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 13: Bharti Airtel: India Wireless Overview
Bharti Airtel: India Wireless Overview
Slide 14: 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 22% 18% 15% 13% 12% 7% 7% 6% Share Others, 3.3% Tata Aircel, 5.3% Teleservices, Bharti Airtel, 197 7.6% 30.3% 158 BSNL (incl MTNL), 6.9% 128 117 102 RCOM, 7.9% 63 65
Slide 15: 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 % of across Emerging Markets Mobile Revenues 1 20% 18% 16% 14% 60 12% 51 51 10% 49 49 8% 45 6% (%) 4% 34 34 33 33 2% 31 32 0% 24 24 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4
Slide 16: 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 ~$3.5bn Delhi • Bharti Airtel acquired 100% of Qualcomm India Haryana Punjab (BWA venture), thereby ga
Slide 17: International Operations on a Steady Path
International Operations on a Steady Path
Slide 18: Transaction Rationale
Transaction Rationale Bharti Airtel Transaction Objectives Achievements Shareholding and Full Management Control Global Stature with focus on Emerging Markets Ability to use brand ‘Airtel’ Manageable Deal Size Significant Synergies Diversification of India Risk Avoiding Greenfield Strong Platform Re
Slide 19: Africa – Opportunity for Growth
Africa – Opportunity for Growth India Africa 1 Mobile Penetration ~71% ~60.2% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~434 ~141 per sub 2 ARPU (US$) 2 ~$3.1 ~$5.8 ARPM (US cents ¢) 2 0.6¢ 3.3¢ Africa presente
Slide 20: Africa Performance Indicators
Africa Performance Indicators Total Subscribers (mn) and Total Minutes (bn) Minutes of Usage per sub 144 143 141 70.0 66.4 68.4 30.0 134 61.7 63.7 64.2 123 60.0 27.8 28.3 25.0 26.2 26.0 50.0 23.4 20.0 40.0 15.0 30.0 10.0 20.0 10.0 5.0 0.0 0.0 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q3 FY13 Q4 FY13 Q
Slide 21: Other Businesses
Other Businesses
Slide 22: Telemedia Services
Telemedia Services • Pan-India presence of 87 cities • Operates in the entire broadband continuum - fixed line voice and high speed broadband across Homes and Office segments, broadband (via DSL), IPTV, internet leased line and MPLS services Revenue (US$m) EBITDA Margin (%) 42.4 43.1 45.0 42.5 42.5
Slide 23: Airtel Business
Airtel Business India’s leading and most trusted provider of ICT services Customer base across - enterprises, governments, carriers and small and medium business. Diverse portfolio of services - voice, data, video, network Revenue (US$m) integration, data centers, managed services, enterprise EBITDA
Slide 24: Digital TV Services
Digital TV Services • First Company in India which provides real integration of all the three screens viz. television, mobile and computer enabling our customers to record their favorite TV programs through mobile and web • Launched “Airtel Digital TV” service in October 2008 as fifth operator provi
Slide 25: Airtel Money
Airtel Money • Airtel Money, Airtel’s semi-closed wallet has witnessed phenomenal growth over the year • Key Performance Indicators (India) – Active subscribers: Stands at 1.3 million as on Dec 31, 2013 – Transaction Volume: 30.5 million during quarter ended Dec 31, 2013 Airtel Money is offered in –
Slide 26: Tower Infrastructure
Tower Infrastructure 2.00 120,000 1.93 2.00 • Bharti Infratel is a leading tower infrastructure 1.84 Sharing Factor (x) 100,000 provider 82,813 1.80 80,000 Towers • Also holds a 42% stake in Indus Towers, 60,000 1.60 112,615 47,298 amongst the largest tower companies in the 40,000 1.40 world, operat
Slide 27: Financial Overview
Financial Overview
Slide 28: Robust Financials (Consolidated)
Robust Financials (Consolidated) 1 Total Revenues (US$bn) EBITDA (US$bn) and EBITDA margin 14.3 14.1 13.1 5 4.6 50% 41% 4.4 4.3 40% 40% 3.3 3.5 34% 32% 8.8 30% 8.0 30% 3 20% 10% 0 0% FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Cash Flow from Operations (US$bn) Enterprise Value / EBITDA 4.0 4.1
Slide 29: Leadership
Leadership
Slide 30: Leadership in Business
Leadership in Business Ranked #71 in top 100 list of Sunil Bharti Mittal, Bharti Airtel was placed among the top Chairman 200 brands globally in the annual Global Brands by Millward Brown Optimer, published in Financial • Honorary Degree awarded by survey undertaken by Brand Finance, Times , with an
Slide 31: 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 32: Investment Highlights
Investment Highlights
Slide 33: 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 34: Management Presentation
Management Presentation Bharti Airtel Limited January 2014