Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Conference Presentation (September 2017)
32 slides from Bharti Airtel's conference presentation, September 2017
Slide 1: Bharti Airtel Conference Presentation – September 2017
Bharti Airtel Conference Presentation – September 2017
Slide 2: What Guides Us
What Guides Us Customer Centricity • Win customers for life through differentiated experience, products and world class technology Performance Excellence • Growth despite challenges • Grow market share, strip out waste • Accelerate non-mobile businesses Transparency & Ethical Governance • Highest co
Slide 3: Bharti Airtel: Who Are We
Bharti Airtel: Who Are We 3rd largest telecom operator in the world Presence in 17 countries addressing to 1.87 Bn population Serving around 383.5 Mn customers with ~$14 Bn revenues No 1 operator in India and only integrated operator with wireless, wireline & satellite TV No 2 telecom oper
Slide 4: Investment Rationale
Investment Rationale 1 Large untapped market opportunity 2 Leading market share positions 3 The Airtel advantage 4
Slide 5: Large Untapped Opportunity
2 airtel LARGE UNTAPPED OPPORTUNITY
Slide 6: Indian Mobile Market
Untapped Opportunity Indian Mobile Market Wireless Subscribers1 Teledensity3 2nd largest telecom market in the world • 1,186 mn customers • Overall teledensity of 93.88% of which ~740 mn are unique (dual simmers) • Rural teledensity of 57.45% 2nd largest smartphone market in the world Broadband2 Sma
Slide 7: Opportunity in Telecom Sector
Untapped Opportunity Opportunity in Telecom Sector WIRELESS WIRELESS DATA PAYMENTS BANK 1.3 bn population ~28%1 Smartphone Cash based economy penetration ~0.7 bn unique 65% percent 4G handsets ~11%1 wireless customers consumer transaction Data penetration ~36%1 by value are currently (>3G+4G)
Slide 8: Leading Market Position
2 airtel LEADING MARKET POSITION
Slide 9: Leader in India Revenue and Customer Market Share
Leader in India Revenue and Customer Leading Position Market Share1 ~$30 Bn Indian Telecom Industry RMS 41.5% 1.186 Bn total wireless subscribers in India 34.2% 24.1% 18.9% 5.0% 4.8% 4.5% 3.3% 2.2% 2.5% Airtel (1) Tata Tele- Uninor Vodafone Idea Cellular Aircel BSNL + MTNL Reliance Reliance Jio serv
Slide 10: Industry consolidating to 3 players – Airtel, Voda & Idea, Jio
Leading Position Industry consolidating to 3 players – Airtel, Voda & Idea merged co and new entrant Jio 40.0% 33.8% 34.2% 35.0% 32.9% 33.1% 31.3% 30.0% 77.2 % 24.1% revenue 25.0% 23.3% 23.4% 23.5% 23.7% market 18.8% 18.9% share within 20.0% 18.7% 18.7% 18.7% top 3 incumbents 15.0% Q1FY16 Q2FY16 Q3F
Slide 11: Airtel - Leading Presence in Africa
Leading Position Airtel- Leading Presence in Africa 2nd Largest operator in Africa Leading operator - #1 or #2 in 12 of 15 markets Customer base of 81.9 mn - of which ~21.7 mn data customers 3G and Airtel Money in all 15 countries. 4G in 3 countries, U900 in 8 countries 9.5 mn mobile money subscribe
Slide 12: Leadership Position across African markets
Leading Position Leadership Position across African markets #1 or #2 ranking by RMS #3 or #4 ranking by RMS Kenya Ghana Nigeria Rwanda DRC Madagascar Tanzania Seychelles Congo B Bharti and Millicom International Cellular merged Uganda Gabon their respective units in Ghana to create the Chad second-l
Slide 13: Airtel Advantage
2 airtel AIRTEL ADVANTAGE
Slide 14: Diversified portfolio across telecom and geography
Airtel Advantage Diversified portfolio across telecom and geography Revenue Split by segments Non-Wireless Revenues India (Rs Mn) EBITDA Margin % Contribution Homes, 2.7% Q2FY’2018 to Consol DTH, 4.0% EBITDA 60,580 Airtel 43% 3.3% Business, Homes, 6,367 12.0% DTH, 9,369 38% 4.2% Tower Co, 7.0% Wirel
Slide 15: Airtel Payments Bank
Airtel Advantage Airtel Payments Bank 68% transactions in India are cash based1 Annual Retail Payments2– $ 2.5 tn Opportunity to tap 450 mn unbanked customers Leverage on Airtel’s massive retail presence Airtel Payments Bank launched in 2017 provides over 400,000 banking points in Key focus areas: D
Slide 16: Investing for growth – spectrum holding
Airtel Advantage Investing for growth – spectrum holding Band (Avg holding Airtel Competitor 1 Competitor 2 New Operator across 22 circles) 800/900Mhz Paired 5.5 3.5 2.7 4.9 1800 Mhz Paired 13.2 8.6 9.4 6.7 2100 Mhz Paired 7.8 5.2 3.6 NA 2300/2500 Mhz 25.9 9.1 9.1 27.3 Unpaired Spectrum Industry Spe
Slide 17: Aggressive Network Build - Monetize Spectrum
Airtel Advantage Aggressive Network Build - Monetize Spectrum 220 2.00 200 1.84 1.80 180 1.60 158.9 163.0 1.40 160 149.5 1.34 1.20 140 1.15 1.00 120 0.80 100 0.60 80 110 123 0.40 60 0.20 70 40 0.00 Q2'16 Q2'17 Q2'18 Mobile broadband towers Total mobile towers MBB BTS per MBB tower National long dist
Slide 18: Africa: Invested for Growth
Airtel Advantage Africa: Invested for Growth Spectrum holding across opcos Mobile broadband towers (‘000) – Africa1 Spectrum Band Avg. holding per 68.3% country 66.8% 800/900Mhz Paired 10.4 1800 Mhz Paired 15.3 2100 Mhz Paired 13.3 60.6% >2300/2500 Mhz 19.6 11.1 13.3 13.9 Unpaired (only 4 opcos) Q2'
Slide 19: Financial flexibility & Balance Sheet Focus
Airtel Advantage Airtel : Financial flexibility & Balance Sheet Focus Diversified debt profile; focus on deleveraging Over last 3 years: Leverage: Net Debt (ex-DOT) to EBITDA down from 2.51x as of Mar 2013 to 1.57. Net debt to EBITDA (LTM) including DOT debt stands at 2.91 – Lowest in the industry M
Slide 20: While maintaining highest Standards of Corporate Governance
Airtel Advantage While maintaining highest Standards of Corporate Governance Won ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2016 Ranked first in a listing of 100 emerging market multinational companies as part of a study on corporate transparency and reporting by Tran
Slide 21: Execution Strategy
2 airtel EXECUTION STRATEGY
Slide 22: India telecom market dynamics is changing
India telecom market dynamics is changing Explosion of Data – Spurt in volumes and GSM data and voice consumption is increasing smartphone shipments 1256 Bundled products – Voice and data bundling; 376 884 1006 381 377 366 405 428 360 total customer ARPU focus 123 134 143 236 Unlimited Voice P
Slide 23: Strategy - India
Execution Strategy Strategy - INDIA 5 Strategic Pillars for Execution More Brilliant More high services per customer Win with the War on ARPU customer experience Portfolio Waste customers Vibrant Win withBrand People 23
Slide 24: Increasing share of high ARPU customers
Execution Strategy Increasing share of high ARPU customers Mobile broadband customers as a % of total customers 20% • Grab increased share of 4G 16% devices • Drive rapid data consumption leveraging capacity Q2'17 Q2'18 • Accelerate SIM consolidation Post-Paid Customers (Mn) • Accelerate postpaid 17
Slide 25: More services per customer
Execution Strategy More services per customer Airtel Payments Bank Customers (Mn) • Build the largest Payments 20 Bank 7 • Accelerate Airtel homes through brilliant service Mar'17 Sep'17 bundling Wynk Downloads (Mn) • Gain adoption of digital services 70 • Drive depth of product portfolio in B2B 23
Slide 26: Brilliant customer experience
Execution Strategy Brilliant customer experience Peak data speeds by Operator in India (Mbps) • Eliminate customer frustration 56.9 50.0 29.8 36.5 • Deliver a world class network experience • Digitize customer on Airtel Competitor 1 Competitor 2 Competitor 3 boarding, care and analytics Lowest Churn
Slide 27: Win with the Portfolio
Execution Strategy Win with the Portfolio Non mobile revenues as a % of total India 33.1% • Accelerate home broadband through rapid expansion and speed upgrades 29.1% Q2'17 Q2'18 • Accelerate B2B growth Global network – Fiber (RKms) • Accelerate DTH through driving HD upgrades 250,000 • Drive new re
Slide 28: War on Waste
Execution Strategy War on Waste Opex growth1 - YoY Q2'17 Q2'18 -2.2% • Drive zero based costing • Accelerate active sharing, -4.9% fiber and joint sourcing of bandwidth Mobile broadband BTS per mobile broadband tower • Optimize network investment 1.34 1.84 Q2'17 Q2'18 1. Excludes Access costs, COGS
Slide 29: Strategy - Africa
Execution Strategy Strategy - AFRICA 5 Strategic Pillars for Execution Enhance customer Grow Airtel Provide Build efficient ARPU Money through excellent Build optimal network through comprehensive customer cost structure coverage relevant service offering experience pricing Vibrant Win withBrand Peo
Slide 30: Airtel Africa on solid footing
Airtel Africa on solid footing Gross Revenues (USD Mn) EBITDA (USD Mn) and Margin (%) 782 32% 23% 762 176 251 Q2'17 Q2'18 Q2'17 Q2'18 PBT (USD Mn) Operating Free Cash Flow (USD Mn) 92 201 74 Q2'17 Q2'18 Q2'17 Q2'18 (20) Note: Based on 15 countries operation. Numbers are in constant currency Source:
Slide 31: Investment Summary
Investment Summary Presence in underpenetrated markets of India and Africa with large 1 residual opportunity Leading operator with scale and diversified businesses across 2 markets Bulk investments already in place; best in class spectrum bank in 3 markets of operations 4 Demonstrated superior execu
Slide 32: Thank You
THANK YOU
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