Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (September 2009)
38 slides from Bharti Airtel's investor presentation, September 2009
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited Sept 2009
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: Advantage India
Advantage India Population: 1.2 billion → increasing urbanisation → relatively large youth population GDP Growth (Real) : ~6.5% → second highest growing economy GDP Size (PPP adjusted): US$ 3 trillion → fourth largest economy in the world Telecom penetration: 42.27% (494.07 mn telecom subs)*
Slide 4: The Company...Bharti Airtel – An Integrated Telco
The Company...Bharti Airtel – An Integrated Telco Wireless Services Enterprise Services 2G/3G Carriers Rural Market Corporate Telemedia Services Passive Infrastructure Services Fixed Line Broadband DTH (Media)/IPTV Fully integrated telecom player offering end to end solutions 4
Slide 5: Bharti Airtel - positioning in the world and India
Bharti Airtel - positioning in the world and India 3rd LARGEST wireless operator in the world1 LARGEST private INTEGRATED telecom company in India 6th LARGEST INTEGRATED telecom operator in the world LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST operator in
Slide 6: Latest Results – Q1 FY09/10
Latest Results – Q1 FY09/10 Key operating and financial metrics Continued Strong Performance Q1 FY 10 Y-on-Y Wireless Customer market share leadership at 24.0%. Customers 105.20 mn 46.6% Total minutes on network carried in Q1 – 160 billion Total employee strength – 23,789 Revenue $ 2,077 mn 5.
Slide 7: Segment contribution…Rev, EBITDA and Investment
Segment contribution…Rev, EBITDA and Investment Revenue EBITDA 8% 1% 9% -5% 21% 25% 9% 65% 83% 8% Mobile Services Telemedia Services Mobile Services Telemedia Services Enterprise Services Passive Infrastructure Services Enterprise Services Passive Infrastructure Services Others Others INVESTMENTS 2%
Slide 8: Performance dashboard - line graph
Performance dashboard - 3 line graph Productivity Indicators = growing revenues + cost efficiencies + capital productivity 8 Mobile Services Telemedia Services Enterprise Services
Slide 9: Recently in news...
Recently in news... • Announced Managed Services Joint Venture with Alcatel-Lucent to manage Bharti Airtel’s pan-India Broadband and Telephone services and help Airtel’s transition to Next Generation Networks. • Offered Net PC by launching cloud computing service on broadband – a low-cost online com
Slide 10: Wireless Services
Wireless Services 10 Mobile Services Telemedia Services Enterprise Services
Slide 11: Indian Wireless Market…KPIs
Indian Wireless Market…KPIs JK Sub Base : 456.74 mn →second largest market HP PB Wireless Penetration: 39.08% UP(W) →lowest in the world HAR HHI Index: very high DELHI DEL →one of the most competitive market RAJ AS UP(E) Prepaid Base: 90%+ BH NE →one of the highest in the world GUJ MADHYA MP
Slide 12: Rapidly Growing Wireless Market
Rapidly Growing Wireless Market Net Adds in July 15.1 Mn…higher than 11.8 Mn S-curve triggered average net adds per month in 1Q10 Series2 Series1 500 16 90% 15 80% 450 14 400 13 70% 12 350 11 60% 300 10 9 50% 250 8 7 40% 200 6 30% 150 5 4 20% 100 3 50 2 10% 1 - - 0% 1999 2001 2003 2005 2007 2009 201
Slide 13: Wireless Market Structure
Wireless Market Structure Subscriber Trends Customer Market Share – CMS (%) 120.00 25.0% 23.6% 24.5% 108.00 23.0% 100.00 21.0% 84.11 80.87 18.4% 17.7% 80.00 19.0% 17.8% 17.3% 61.97 17.0% 15.4% (mn) 60.00 50.06 15.0% 13.6% 42.79 33.22 13.0% 11.0% 40.00 29.82 28.12 28.95 20.78 11.0% 9.6% 9.4% 9.3% 20.
Slide 14: Company Highlights on Wireless Services
Company Highlights on Wireless Services 14 Mobile Services Telemedia Services Enterprise Services
Slide 15: First mover advantage / Product innovations
First mover advantage / Product innovations Electronic Easy Music Recharge / Micro Prepaid Life time validity product Hello Tunes (Ring Back Tones) Song Catcher Call Home Service Music on Demand Airtel Live (Portal) Google search Portfolio Manager (Stock Tracker) Money Transfers iPhone Blackberry M
Slide 16: Performance Indicators - Financial
Performance Indicators - Financial Revenues (INR mn) EBITDA (INR mn) & Margin (%) 40.8 35.5 30.7 30.2 31.4 31.5 33.0 85,000 82,216 82,285 28,000 27,183 79,392 80,000 27,000 25,860 75,000 72,843 26,000 24,963 69,150 25,000 70,000 64,201 24,000 65,000 23,000 22,887 22,779 60,000 56,106 22,000 22,009 5
Slide 17: Performance Indicators - Operational
Performance Indicators - Operational Customers & Market Share Prepaid/Postpaid 110.0 28.0% 105.0% 102.4 100.0 101.1% 93.9 27.0% 100.0% 90.0 85.7 26.0% 80.0 77.5 95.4% 94.2% 94.7% 69.4 25.0% 95.0% 93.5% 70.0 92.3% 92.9% 62.0 91.6% 55.2 24.6% 24.7% 90.4% 91.0% 24.0% 60.0 24.2% 24.0% 24.0% 90.0% 23.6%
Slide 18: Road map – Wireless Market
Road map – Wireless Market Current Proposed Presence Operational in 22 circles of India on GSM Looking for options primarily in technology. emerging markets. Launched Operations in Srilanka Population 82% of population covering 5067 census • Poised to cover all census towns and Coverage towns and ov
Slide 19: Road map – Wireless Market
Road map – Wireless Market Current Proposed Sales & • One of the widest distribution • Continue distribution expansion, Distribution network. especially in rural areas Network • Following the FMCG company distribution model - Match Box Approach • Present in over a million PoP in India. • Tie-up with
Slide 20: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size ($ 6 Bn) Changing face of Revenue Market growth through M-Com, Share M-entertainment & 3G Cost Net Adds Improving cost efficiencies Maximizing Non financial Driven
Slide 21: Telemedia Services
Telemedia Services 21 Mobile Services Telemedia Services Enterprise Services
Slide 22: A snapshot
A snapshot Largest private operator having presence in the voice and data (broadband). Foraying into the media space - IPTV & DTH (Direct-To-Home) services. Key Performance Indicators 1. Voice (wire-line) and Data (DSL) Presence in 95 top cities of India. 2. Target Segment : Retail and Small a
Slide 23: Telemedia Services
Telemedia Services Business Units Media SMBs Homes • Voice • DTH • Broadband Products • Data • IPTV • Voice • Mobile Services A Pan-India DTH Dominant Broadband & One-Stop Shop for All Businesses; and a Fixed Voice share of the Goal Airtel Services and targeted IPTV Presence affluent in targeted 95
Slide 24: Product Portfolio
Product Portfolio Our Media Play 24 Mobile Services Telemedia Services Enterprise Services
Slide 25: Performance Indicators
Performance Indicators Revenues (INR mn) EBITDA (INR Mn) & Margin (%) 43.4 43.8 42.2 43.6 41.7 42.1 40.5 4,000.0 8,800 8,585 8,550 8,486 8,458 3,800.0 8,500 3,696 3,614 8,200 7,988 3,600.0 3,531 3,463 7,900 7,641 3,344 3,367 3,400.0 7,600 7,307 3,200.0 3,173 7,300 7,000 3,000.0 Q308 Q408 Q109 Q209 Q
Slide 26: Enterprise Services
Enterprise Services 26 Mobile Services Telemedia Services Enterprise Services
Slide 27: 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 corporate customers in India by providing full suite of communication services across data, voice and managed se
Slide 28: Enterprise Services – Carriers (NLD)
Enterprise Services – Carriers (NLD) Voice Network Jalandhar Chandigarh Delhi Jaipur Lucknow Ahmedabad Bhopal Kolkata Nagpur Mumbai Hyderabad Bangalore Chennai Coimbatore Ernakulam captive traffic (group traffic) ~ 90 % Legend NLD minutes carried (Q1FY10) 11.8 Bn Min Existing OFC Route Under Executi
Slide 29: Enterprise Services – Carriers (ILD)
Enterprise Services – Carriers (ILD) London Bude EIG Marseilles Monaco Sesimbra Palermo Los Angeles Catania Gibraltar Annaba IMEWE Chikura Bizerte Tripoli EIG UNITY San Luis Tajoura Obispo Alexandria Suez Fujairah Karachi SJC Hong Kong Hawaii Cox’s Bazaar Muscat La Union AAG Port Sudan Jeddah E Mumb
Slide 30: Enterprise Services - Corporates
Enterprise Services - Corporates Mobile services Voice services Satellite services Managed data & Internet services competition limited segment one stop telecom solution target 2,000 top large corporates Managed e - Managed customized leveraging integrated play business services integrated solutions
Slide 31: Performance Indicators – Enterprise Services
Performance Indicators – Enterprise Services Revenues (INR mn) EBITDA (INR mn) & Margin (%) 34.4 37.8 44.2 42.8 44.9 45.9 49.1 21,874 21,808 21,628 11,000.0 22,000 21,333 10,468 21,000 10,000.0 9,799 9,920 9,369 19,572 20,000 9,000.0 8,655 19,000 8,000.0 18,000 7,000.0 17,000 16,340 6,179 6,000.0 16
Slide 32: Passive Infrastructure Services
Passive Infrastructure Services 32 Mobile Services Telemedia Services Enterprise Services
Slide 33: A snapshot
A snapshot Bharti Infratel operates in 11 circles. Indus Tower operates in 16 circles. Standard Master Services Agreement with competitive rates already in place. Key focus areas: To increase sharing factor (tenancy) from current levels of 1.43 for Infratel and 1.55 for Indus. Provide en
Slide 34: Performance Indicators - Bharti Infratel
Performance Indicators - Bharti Infratel Revenues (INR mn) EBITDA (INR mn) & Margin (%) 12,702 37.1 36.6 33.3 33.5 40.1 44.1 13,000 11,983 5,000 4,500 4,257 10,563 3,870 3,992 11,000 4,000 3,557 3,500 2,903 9,000 8,020 3,000 7,241 2,500 2,236 7,000 6,023 2,000 1,500 5,000 1,000 Q408 Q109 Q209 Q309 Q
Slide 35: Indus Towers
Indus Towers Roof Top Tower 99,000 1.60 97,925 98,000 97,000 1.55 96,000 95,154 1.50 95,000 1.48 94,000 93,000 1.40 Q409 Q110 No of towers Sharing Factor Ground Based Tower First of its kind deal…Bharti (42%), Voda (42%) & Idea (16%) Largest independent tower company in the world ~ 100,000 tower
Slide 36: Recent Honours
Recent Honours 36 Mobile Services Telemedia Services Enterprise Services
Slide 37: Bharti Airtel – Leadership in business Recent Honours
Bharti Airtel – Leadership in business Recent Honours Bharti Airtel and IFFCO JV Awarded with top honors at the Adjudged Wireless Service bagged the “Best Content GSMA Mobile World Congress Provider of the Year 2009 - Service” award and Gujrat E- Conference 2008 in Barcelona Frost & Sullivan Asia Pa
Slide 38: 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
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