Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (August 2010)
35 slides from Bharti Airtel's investor presentation, August 2010
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited Aug 2010
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: Emerging Market Characteristics
Emerging Market Characteristics… India Africa Population (mm) 1200 mm 465mm GDP Growth (Real) % 8.6% 3.1% GDP Size, (PPP adjusted) US$ 3,530 bn US$ 6,90 bn Telecom Penetration 56.83% (671.69 mn telecom subs) 32% Broadband Penetration 0.80% (9.45 mn) NA Note: (1) *Telecom and Broadband penetration fo
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 Sri Lanka Bangladesh Africa Passive Infrastructure Services Telemedia Services Fixed Line Broadband DTH (Media) IPTV Fully integrated telecom pl
Slide 5: Bharti – a growth journey
Bharti – a growth journey No. of circles Today 1 5 15 22 19 countries DELHI ‘ 1996 2001 2003 2004 2010 5 Mobile Services Telemedia Services Enterprise Services DTH
Slide 6: 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 5th LARGEST INTEGRATED telecom operator in the world LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST operator in
Slide 7: Latest Results – Q1 FY10/11
Latest Results – Q1 FY10/11 Key operating and financial metrics Continued Strong Performance Q1 FY 11 Y-on-Y Wireless Customer market share leadership at 21.5%. Customers 183.37 mn 71.0% Total minutes on network carried in Q1 – 206.2 bn Total employee strength – 24,843 Revenue $ 2,625 mn 17.4%
Slide 8: Segment contribution…Rev, EBITDA and Investment
Segment contribution…Rev, EBITDA and Investment REVENUE EBITDA -7% 17% 2% 16% 8% 6% 7% 9% 78% 80% INVESTMENTS 17% 2% 3% 9% 89% Mobile Services Telemedia Services Enterprise Services Infratel Services Others Note: (1) Revenue and EBITDA is gross of inter segment eliminations.(2) Investments are on gr
Slide 9: Gross Revenue (USD Mn)
Performance dashboard - 3 line graph 115,000 112,725 80% 69% 66% 110,000 63% 63% 65% 70% Gross Revenue (USD Mn) 105,000 107,491 60% 104,143 103,785 100,000 103,053 50% 95,000 40% 38.1% 39.9% 40.9% 40.6% 38.4% 90,000 30% 85,000 20% 80,000 10% Q110 Q210 Q310 Q410 Q111 Gross Revenue (USD Mn) (LHS) Opex
Slide 10: Wireless Services
Wireless Services 10 Mobile Services Telemedia Services Enterprise Services DTH
Slide 11: Indian Wireless Market…KPIs
Indian Wireless Market…KPIs JK Sub Base : 635.51 mn →second largest market HP PB Wireless Penetration: 53.77% HAR UP(W) →lowest in the world DELHI DEL HHI Index: very high RAJ AS →one of the most competitive market UP(E) Prepaid Base: 96% BH NE MADHYA MP PRADESH` →one of the highest in the w
Slide 12: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Jun 18.0 Mn…greater than over last S-curve triggered 2 months average run rate of 16.6 Mn Closing Subs Net Adds 800 22 90% 20 80% 18 600 70% 16 14 60% 12 50% 400 10 40% 8 30% 6 200 20% 4 2 10% - - 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Slide 13: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 25% 24% 160 23% 21% 136.6 140 21% 19% 19% 120 110.8 109.1 17% 17% 18% 17% 100 77.9 15% 14% (mn) 80 72.5 68.9 13% 12% 59.7 11% 60 11% 11% 10% 34.3 35.4 9% 40 31.2 32.6 26.1 29.7 9% 9% 18.9 7% 20 7% - 5% BSNL+MTNL BSN
Slide 14: Company Highlights on Wireless Services
Company Highlights on Wireless Services 14 Mobile Services Telemedia Services Enterprise Services DTH
Slide 15: Performance Indicators - Financial
Performance Indicators - Financial Revenues (INR mn) EBITDA (INR mn) & Margin (%) 90,000 88,237 40.5 40.2 37.6 36.4 35.9 34,106 33,310 35,000 86,000 84,301 30,400 31,710 83,174 30,237 82,902 30,000 82,000 80,898 25,000 20,000 78,000 15,000 10,000 74,000 5,000 70,000 0 Q110 Q210 Q310 Q410 Q111 Q110 Q
Slide 16: Performance Indicators - Operational
Performance Indicators - Operational Customers & Market Share Prepaid/Postpaid 105% 160 26% 101.1% 24.0% 99.6% 23.5% 100% 101.7% 99.2% 100.8% 97.5% 120 24% 97.9% 100.4% 22.7% 98.4% 95.2% 95.3% 95.8% 96.0% 95% 94.7% 80 21.8% 23% 93.5% 94.2% 21.5% 92.9% 92.3% 102.4 110.5 127.6 90% 40 118.9 136.6 21% 0
Slide 17: Africa Wireless Market…KPIs
Africa Wireless Market…KPIs Customer Base : 36.36 Mn Performace Indicators: Revenue: 9,583 Mn EBITDA: 2,635 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 103 Minutes →one of the lowest ARPU: ~ US$ 7.4 →one of the competitive market Rate per minute: ~ US
Slide 18: 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 (>$ 9 Bn) growth through M-Com, Revenue Market M-entertainment & 3G Share Cost Net Adds Improving cost efficiencies Maximizing Non financial Drive
Slide 19: Telemedia Services
Telemedia Services 19 Mobile Services Telemedia Services Enterprise Services DTH
Slide 20: 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 88 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises
Slide 21: Telemedia Services
Telemedia Services Business Units SMBs Homes • Voice • Data • Broadband Products • Mobile Services • Voice • Applications • IPTV •SaaS Dominant Broadband & Fixed Voice Goal One-Stop Shop for All Airtel Services share of the affluent in targeted 95 and Solutions to SMBs cities • Deeper & Not Wider: 9
Slide 22: Product Portfolio
Product Portfolio 22 Mobile Services Telemedia Services Enterprise Services DTH
Slide 23: Performance Indicators
Performance Indicators Revenues (INR mn) EBITDA (INR Mn) & Margin (%) 40.5 42.7 46.0 43.3 44.0 4,000 9,100 8,960 3,933 3,938 8,800 3,800 8,551 8,543 8,549 8,511 3,684 8,500 3,646 3,600 8,200 3,466 7,900 3,400 7,600 3,200 7,300 7,000 3,000 Q110 Q210 Q310 Q410 Q111 Q110 Q210 Q310 Q410 Q111 Customers (
Slide 24: Enterprise Services
Enterprise Services 24 Mobile Services Telemedia Services Enterprise Services DTH
Slide 25: 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 Carrie
Slide 26: Highlights
Highlights # 1 Operator in India in terms of: NLD Revenue (Voice & Data) ILD Revenue (Voice & Data) Private Fixed Line Operator Corporate Internet Provider VSAT Provider (installed base) 26 Mobile Services Telemedia Services Enterprise Services DTH
Slide 27: What We Offer
What We Offer • Wholesale Voice • Retail Voice - Mobility Solutions - Domestic & International Voice Carriage - Corporate Mobile Ser Voice Services Services - Mobile Data (Blackberry, Data card, applications) - International & Domestic Toll Free - SMS-Based Tools & Bulk SMS Solutions services - Work
Slide 28: Performance Indicators – Enterprise Services
Performance Indicators – Enterprise Services Revenues (INR mn) EBITDA (INR mn) & Margin (%) 25.3 27.7 29.6 29.9 24.5 4,000 12,000 11,627 3,500 3,274 3,221 11,355 3,141 11,048 2,942 10,768 3,000 11,000 10,186 2,497 2,500 10,000 9,000 2,000 1,500 8,000 1,000 7,000 500 6,000 0 5,000 Q110 Q210 Q310 Q410
Slide 29: Passive Infrastructure Services
Passive Infrastructure Services 29 Mobile Services Telemedia Services Enterprise Services DTH
Slide 30: A snapshot
A snapshot Bharti Infratel operates in 11 circles. Indus Tower operates in 15 circles. Standard Master Services Agreement with competitive rates already in place. Key focus areas: To increase sharing factor (tenancy) from current levels of 1.65 for Infratel and 1.75 for Indus. Provide en
Slide 31: Performance Indicators - Bharti Infratel
Performance Indicators - Bharti Infratel Revenues (INR mn) EBITDA (INR mn) & Margin (%) 22,000 32.6 34.2 34.0 37.1 35.5 20,412 7,500 19,459 7,224 7,240 20,000 18,407 7,000 18,000 17,049 15,937 6,500 16,000 6,267 14,000 6,000 5,831 12,000 5,500 5,201 10,000 Q110 Q210 Q310 Q410 Q111 5,000 Q110 Q210 Q3
Slide 32: Indus Towers
Indus Towers Roof Top Tower 105,000 104,901 1.80 102,696 102,938 103,000 1.75 100,728 1.70 101,000 1.71 1.61 99,000 1.60 97,925 1.61 97,000 1.55 1.50 95,000 93,000 1.40 Q110 Q210 Q310 Q410 Q111 No o f to wers Sharing Facto r Ground Based Tower First of its kind deal…Bharti (42%), Voda (42%) & Idea
Slide 33: Recent Honours
Recent Honours 33 Mobile Services Telemedia Services Enterprise Services DTH
Slide 34: Bharti Airtel – Leadership in business: Recent Honours
Bharti Airtel – Leadership in business Recent Honours Rated as the ‘Powerful Brand’ Adjudged Wireless Service Bharti Airtel won tele.net Telecom in the Economic Times- Brand Operator awards in 6 out of total 14 Provider of the Year 2009 - categories including Most Admired Finance ‘Brand Power Frost
Slide 35: 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