Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Bharti Airtel Africa Day 2017
36 slides from Bharti Airtel's conference presentation, Dec 8, 2017
Slide 1: U90 U900
U90 U900
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 Africa Day
Bharti Airtel Africa Day 08 December 2017 Kampala, Uganda 3
Slide 4: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 4
Slide 5: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 5
Slide 6: Bharti Airtel In Uganda
Bharti Airtel In Uganda 1995 : Celtel Uganda – 1st Telco in Uganda 2007 : Celtel Uganda changed to Zain 2010 : Airtel launched in Uganda 2013 : Successful acquisition of Warid 6
Slide 7: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 7
Slide 8: Uganda – Country profile
Uganda – Country profile Political: Government: Presidential Republic Area: 241,038 sq km Administration : 123 Districts Demographics: Population: 41.5 Mn Median Age: 15.7 years Growth Rate: 3.04%a 0-14 years (48.3%), 15-64 years (49.7%), > 65 years (2.01%) Languages: Official : English & Swahili. O
Slide 9: Uganda Macroeconomic Overview
Uganda Macroeconomic Overview Real GDP (PPP) ($Bn) Population (Mn) 2010-2017 CAGR: 3.3% 2010-2017 CAGR: 2.9% 41.5 41.5 27.9 40.1 38.8 25.8 25.2 25.3 25.4 37.6 24.5 36.3 35.1 33.9 21.1 20.2 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 USD-UGX 2010-2017 Consumer Pric
Slide 10: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 10
Slide 11: Telecom Landscape – Regulators
Telecom Landscape – Regulators Telecommunications Ministry Of ICT & National Guidance Mobile Financial Services Ministry of Finance, Planning and Economic Development, Uganda 11
Slide 12: Telecom Landscape – Market Overview & Industry Players
Telecom Landscape – Market Overview & Industry Players Strong Distribution Network Strategic tilt to mass market Focus on mass market & voice Gov’t Owned with limited Market GSM Activity Largest 3G & 4G Network Large Mobile Money Ecosystem Aggressive free SIM, Voice & data campaign (Jio Strategy) Un
Slide 13: Telecom Landscape – Mobile SIM Penetration
Telecom Landscape – Mobile SIM Penetration 45 100% 40.1 41.5 38.8 90% 40 37.6 35 80% 70% 30 52.4% 50.4% 55.0% 60% 25 48.1% Million 50% 20 22.8 20.4 20.2 40% 18.1 15 30% 10 20% 5 10% 0 0% 2013 2014 2015 2016 Uganda Popn - UN Est. (Mn) 37.6 38.8 40.1 41.5 Mobile SIMs - UCC Est. (Mn) 18.1 20.4 20.2 22.
Slide 14: Telecom Landscape – Industry Revenue
Telecom Landscape – Industry Revenue 3,000 25% 2,495 2,500 2,305 20% 2,170 18.2% 21.6% 2,000 15% UGX Bn 1,500 1,050 10% 1,000 864 8.2% 731 6.2% 5% 500 0 0% CY 2014 CY 2015 CY 2016 Airtel LC Bn 731 864 1,050 Ind Rev LC Bn 2,170 2,305 2,495 Airtel %age Growth 18.2% 21.6% Ind %age Growth 6.2% 8.2% Airt
Slide 15: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 15
Slide 16: Airtel In Uganda History and Milestones
Airtel In Uganda History and Milestones Fiber Expansion Warid Acquisition Merger Completion 300 Sites in 300 Days Distribution Best Overall Reorganization OpCo Entry into Uganda Launch 2010 2011 2012 2013 2014 2015 2016 2017 Mcommerce Services Uganda Cranes Strong Local Partnerships 4G Launch16 16
Slide 17: Airtel Uganda CMS Evolution
Airtel Uganda CMS Evolution Telecom Operators in Uganda CMS Trends 65% 58.7% 55% 50.7% 6.7% 45% 36% 44.0% 35% Merger in 25% May-13 16.2% 15% 5% -5% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Jun-17 Bharti Airtel Op 1 Warid Others In December 2010, the CMS gap between Airtel and O
Slide 18: Airtel Uganda RMS Evolution
Airtel Uganda RMS Evolution Telecom Operators in Uganda RMS Trending Combined 70% 65.0% RMS of ~ 94% 60% 51.4% 50% Merger in May-13 9.0% 48.7% 40% 42.5% 30% 20% 16.3% 10% 0% Dec -08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Jun-17 Bharti Airtel Op 1 Warid Others In March 2010, the RMS
Slide 19: Uganda Ad Campaign Video
? airtel THINK LIKE AN Uganda Ad Campaign Video
Slide 20: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 20
Slide 21: Airtel Uganda GPS
Airtel Uganda GPS GPS Win through Win with Win with Win with more from Win with Distribution Network right cost Existing People Excellence Excellence model Customers Key Position Airtel as the Smartphone Network Build an enabling IT infrastructure and support Enablers Leverage legal and regulatory f
Slide 22: Win with Distribution Excellence
Win with Distribution Excellence Direct Indirect Own Store SSO Mini Shops Kiosks • Airtel Shops (owned + • Independent multi • Exclusive Franchise • Exclusive Kiosks Franchised) brand outlets shops AM float supply, shops AM float • Sales and Services SIM and RCV supply, SIM and RCV 22
Slide 23: Win through more from existing customers
Win through more from existing customers Grow data penetration Our Existing Products & Services and consumption through Grow Airtel money through CLM comprehensive service offerings Airtel Money Data Enhance customer ARPU through relevant price offering Voice SMS Deliver simplest customer experience
Slide 24: Win with Data Growth
Win with Data Growth Data & VAS contribution to GR 35% 30% Launch of Combo Bundles 25% 20% 15% 10% Launch of 100 Days of Launch 5% Happiness 0% 2013 2014 2015 2016 Data Revenue in absolute and as a % of GR is consistently growing 24 *includes Data & VAS revenue streams 24
Slide 25: Win with Airtel Money Growth
Win with Airtel Money Growth AM contribution to GR Business Growth Initiatives 2017/18 14% Scale up Distribution 12% Improve Liquidity 10% 8% Aggressive Customer Acquisition and Retention campaigns 6% 4% Drive Merchant acquisition 2% Product Development 0% Airtel Money platform 2013 2014 2015 2016 A
Slide 26: Win with Network Excellence
Win with Network Excellence Network Coverage & Infill Milestones Up-country U900 & LTE improvements Modernization & OCS upgrade Technology Improvement focus Launch TowerCo. Sale Coverage Expansion + 300 Warid Sites Consolidation 2010 2011 2012 2013 2014 2015 2016 2017 Technology Key Facts Key Partne
Slide 27: Win with IT Excellence
Win with IT Excellence 2017 Projects Completed 2017 Projects In Progress OCS 1.2 to OCS 5.5 KYC UCC regulatory Airtel Money Re-registration Platform Global KYC 27 27
Slide 28: Win with Right Cost Model
Win with Right Cost Model Improve profitability and cash flow Build functional operating model through effective asset management aligned to scale of operations Reduce CWIP > 180 days Bandwidth/ Backhaul Optimization Improve working Capital through Zonal Structure re-alignment Old debts recovery Opt
Slide 29: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities
Slide 30: Brand Positioning
Brand Positioning 80 80 TOMA Consideration 70 71 70 69 60 51 60 50 50 48 50 47 47 40 44 40 34 40 35 30 30 20 22 20 30 26 26 10 10 0 0 Oct-14 May'15 Dec-15 Oct 2017 Oct-14 May'15 Dec-15 Oct 2017 Airtel Operator 2 Airtel Operator 2 Uganda Cranes Sponsors from 2013 30 30
Slide 31: Our CSR Projects
Our CSR Projects Our Corporate Social Responsibility Pillars Education Health Sport Adopt A School Blood Donation Kabaka Birthday Run Uganda Cranes Maths and Reading Programs Regional Health Camps Masaza Cup ICT For Schools Airtel Rising Stars U900 31 31
Slide 32: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities
Slide 33: Airtel Uganda Financials
Airtel Uganda Financials Gross Revenue (Bn) EBITDA Margin (%) 2013-2016 CAGR: 28.5% 60.0% 1,033 50.0% 53.3% 846 722 40.0% 487 30.0% 34.7% 20.0% 22.6% 10.0% 11.8% 0.0% 2013 2014 2015 2016 2013 2014 2015 2016 • The revenue does not include Other Operating Income • 2014 – includes one-time integration
Slide 34: Agenda
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities
Slide 35: Our Priorities
Slide 35 Our Priorities Drive Customer Revenue Financial Experience Streams Superior Network Data Grow RMS & GR Hold Costs & & & Airtel Money Airtel Money Grow EBITDA Experience Network Expansion Distribution Rebalancing Brand U900 Airtel Money Platform 35 Innovation Culture
Slide 36: Thank You
ry AY | / airtel pisruptively f \