Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (December 2008)
36 slides from Bharti Airtel's investor presentation, December 2008
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited December 2008
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: 1.1 billion → increasing urbanisation → relatively large youth population GDP Growth (Real) : ~9% → second highest growing economy GDP Size (PPP adjusted): US$ 3 trillion → fourth largest economy in the world Telecom penetration: 31.50% (364 telecom subs) → one of
Slide 4: The Company...Bharti Airtel
The Company...Bharti Airtel 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) Fully integrated telecom player…end to end telecom off
Slide 5: Bharti Airtel - placing in the world and India
Bharti Airtel - placing in the world and India 3rd LARGEST wireless operator in the world1 LARGEST private INTEGRATED telecom company in India LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST TELECOM company listed on Indian Stock Exchanges Note: (1) 3rd larges
Slide 6: Latest Results – Q2 FY08/09
Latest Results – Q2 FY08/09 Key operating and financial metrics Continued Strong Performance Q2 FY 09 Y-on-Y Wireless Customer market share leadership at 24.6%. Customers 79.99 mn 57.0% Total minutes on network carried in Q2 – 134 billion Revenue $ 1,942 mn 42.3% Total employee strength – 25,6
Slide 7: Gross Revenue (USD Mn)
performance dashboard - 3 line graph 2,200 80.0% 74.4% 73.3% 73.1% 70.8% 71.1% 2,000 70.0% Gross Revenue (USD Mn) 1,942 1,800 1,826 60.0% 1,600 1,683 50.0% 1,400 1,499 1,364 40.0% 1,200 33.8% 34.6% 32.4% 32.7% 32.6% 1,000 30.0% Q208 Q308 Q408 Q109 Q209 Gross Revenue (USD Mn) (LHS) Opex to Gross Rev
Slide 8: Segment investment & contribution
Segment investment & contribution Revenue EBITDA 13% 1% 11% -3% 5% 5% 19% 20% 59% 9% 81% 10% Mobile Services Telemedia Services Mobile Services Telemedia Services Enterprise Services - Carriers Enterprise Services - Corporates Enterprise Services - Carriers Enterprise Services - Corporates Passive I
Slide 9: few recent recognitions
few recent recognitions Bharti Airtel was voted as India’s most innovative company in a survey conducted by The Wall Street Journal. Airtel won the Platinum Trusted Brand Award in the Mobile Service Provider Category in the Reader’s Digest Asia Trusted Brand’s Survey. Airtel was chosen as the
Slide 10: Wireless Services
Wireless Services 10 Mobile Services Telemedia Services Enterprise Services
Slide 11: KPIs…Indian Wireless Market
KPIs…Indian Wireless Market JK Sub Base : 325.7 mn →second largest market HP PB Wireless Penetration: 28.2% HAR UP(W) →lowest in the world DELHI DEL HHI Index: very high RAJ →one of the most competitive market AS UP(E) Prepaid Base: 90%+ BH NE →one of the highest in the world GUJ MADHYA MP P
Slide 12: Rapidly Growing Wireless Market
Rapidly Growing Wireless Market 9 mn net adds per month S-curve triggered 90% Closing Customers (mn) Net Adds (mn) 80% 350 11 70% 10 300 60% 9 250 8 50% 7 200 6 40% 150 5 30% 4 100 3 20% 2 10% 50 1 - - 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Mar-01 Oct-01 May-02 Dec-02 Jul-03 Feb-0
Slide 13: Wireless Market Structure
Wireless Market Structure Subscriber Trends Customer Market Share – CMS (%) 24.6% 25.0% 90.00 23.4% 80.2 Oct-08 Oct-07 Net adds during the year 23.0% 80.00 21.0% 70.00 19.0% 17.7% CMS(Oct'08) CMS(Oct'07) 57.8 56.7 17.4% 17.5%17.4%17.1% 60.00 50.9 17.0% 48.6 14.9% 50.00 15.0% (mn) 37.8 38.0 37.2 40.0
Slide 14: Road map
Road map Current March 2009 Presence Operational in 23 circles of India on Plan to launch in Srilanka. GSM technology. Population 77% of population covering 5,000+ • Poised to cover all census towns Coverage census towns and over 385 lakhs and majority of non-census towns non-census towns and villag
Slide 15: Road map
Road map Current March 2009 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 IFFCO, an edge
Slide 16: 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 C
Slide 17: Performance Indicators
Performance Indicators Customers & Market Share Prepaid/Postpaid 77.5 100.0% 80.0 25.0% 98.4% 75.0 69.4 70.0 95.4% 24.6% 24.5% 95.0% 65.0 62.0 92.9% 24.2% 92.3% 91.0% 91.6% 60.0 24.0% 90.4% 55.2 55.0 23.7% 90.0% 48.9 23.6% 50.0 23.5% 23.4% 45.0 40.0 23.0% 85.0% Q208 Q308 Q408 Q109 Q209 Q208 Q308 Q40
Slide 18: Performance Indicators
Performance Indicators Revenues (USD mn) EBITDA (USD mn) & Margin (%) 41.0 40.8 35.5 30.7 30.2 1,700 550 1,600 1,500 1,568 1,400 1,489 500 1,300 1,382 493 490 1,200 474 450 1,100 1,208 457 446 1,000 1,089 900 400 Q208 Q308 Q408 Q109 Q209 Q208 Q308 Q408 Q109 Q209 18 Mobile Services Telemedia Services
Slide 19: Telemedia Services
Telemedia Services 19 Mobile Services Telemedia Services Enterprise Services
Slide 20: 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 21: 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 94
Slide 22: Product Portfolio
Product Portfolio Our Media Play 22 Mobile Services Telemedia Services Enterprise Services
Slide 23: Performance Indicators
Performance Indicators Customers (overall & DSL) ARPU (USD) 2,750 853 922 1,000 28.0 24.8 24.7 795 24.5 24.5 24.5 751 24.0 2,500 705 800 2,509 2,250 2,394 20.0 2,283 600 2,178 16.0 2,000 2,075 400 12.0 1,750 8.0 1,500 200 4.0 1,250 0 0.0 Q208 Q308 Q408 Q109 Q209 Q208 Q308 Q408 Q109 Q209 B&T Customer
Slide 24: Enterprise Services
Enterprise Services 24 Mobile Services Telemedia Services Enterprise Services
Slide 25: A snapshot
A snapshot Carrier: - one of the largest carriers of voice and data, both domestic and international. Corporate: - providing end to end telecom solutions to large corporate and Small & Medium Businesses. Present Competition: National Long Distance: BSNL; Reliance; VSNL; Vodafone; Tata Inte
Slide 26: 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 Legend Existing OFC Route captive traffic (group traffic) ~ 90 % Under Execution NLD minutes carried (Q2FY09) > 11 Bn Min
Slide 27: Enterprise Services – Carriers ILD
Enterprise Services – Carriers ILD Legend SEA-ME-WE-4 Connectivity to West i-2-i i-2-i Connectivity to East SEA-ME-WE-4 ILD minutes carried (Q2FY09) 2.3 Bn Min Other Int’l Connectivity ILD gateways 4 Int’l Gateways Connectivity landing stations 2 27 Mobile Services Telemedia Services Enterprise Serv
Slide 28: Performance Indicators - carriers
Performance Indicators - carriers Voice Minutes on Network Revenues (USD mn) 11,349 400.0 12,000 10,322 366 9,398 10,000 360.0 338 7,898 8,000 6,774 320.0 6,000 271 280.0 4,000 244 1,850 2,048 2,284 1,345 1,591 240.0 2,000 216 0 200.0 Q208 Q308 Q408 Q109 Q209 Q208 Q308 Q408 Q109 Q209 NLD Minutes (mn
Slide 29: 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 30: Performance Indicators - corporates
Performance Indicators - corporates Revenues (USD mn) EBITDA (USD mn) & Margin (%) 41.9 41.9 57.0 45.7 41.4 120.0 60.0 105 100.0 40.0 46 43 38 81 83 31 30 80.0 74 20.0 71 60.0 0.0 Q208 Q308 Q408 Q109 Q209 Q208 Q308 Q408 Q109 Q209 30 Mobile Services Telemedia Services Enterprise Services
Slide 31: Passive Infrastructure Services
Passive Infrastructure Services 31 Mobile Services Telemedia Services Enterprise Services
Slide 32: Market landscape
Market landscape No of Towers Description (Estimates) Indus Towers 88,000 JV between Airtel;Idea & Vodafone operational in 16 circles Bharti Infratel 25,000 Subsidiary of Airtel operating in 7 circles Reliance Infratel 30,295 Subsidiary of Reliance operating in all 23 circles BSNL+MTNL 40,000 State
Slide 33: A snapshot
A snapshot Bharti Infratel operates in 7 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 1.26. Provide energy optimization solutions and o
Slide 34: To conclude
To conclude 34 Mobile Services Telemedia Services Enterprise Services
Slide 35: Key Strategic Objectives
Key Strategic Objectives Sustain revenue share in mobile profitably Achieve deeper penetration in home and SMB Product & vertical focus to gain client Revenue Market Share (cRMS) in Enterprise business Become a benchmark in customer experience through service quality & innovation Build a robust lead
Slide 36: 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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