Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (November 2012)
29 slides from Bharti Airtel's investor presentation, November 2012
Slide 1: Investor Presentation
Investor Presentation Bharti airtel limited November 2012
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 – An Integrated Operator
The Company...Bharti airtel – An Integrated Operator B2C B2B Passive Mobile Telemedia Digital TV Airtel Business Infrastructure Services Services Services Services Cellular mobile Offers fixed Pan India DTH Services to large Bharti Infratel services across telephony and operations enterprises and ow
Slide 4: The Company…Bharti airtel
The Company…Bharti airtel No. of circles (India) Today Countries 1 5 15 22 20 ‘ 1996 2001 2003 2004 2012 Fully integrated telecom player offering end to end solutions and entering new geographies
Slide 5: Growth trajectory reflected in the numbers
Growth trajectory reflected in the numbers 1996 2012 Single Circle Operator Company Profile Largest integrated private telecom operator < 25k Customers ~ 252 mn ~ USD 17 mn R Revenue ~ USD 15 bn b ~ USD 2.5 mn EBITDA ~ USD 5 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Market Capitalization ~
Slide 6: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST in ‐country country wireless operator in the FY 12 (in Mn) world (1) Customers 251.6 LARGEST private INTEGRATED telecom company in Revenue $ 14,937 India EBITDA $ 4,957 4th LARGEST Mobile telecom ope
Slide 7: Latest Results – 2Q'13
Latest Results – 2Q’13 Key operating and financial metrics Continued Strong Performance Q2 FY 13* Y‐on‐Y Wireless CMS 20.5% Customers 262.6 mn Wireless RMS 30.3% Total minutes on network carried in Qtr, net of Revenue Rs. 202.7 bn 17% eliminations 275 bn EBITDA Rs. 63.5 bn 9% Balance sheet s
Slide 8: Performance dashboard - line graph
Performance dashboard - 3 line graph 205,000 202,732 80.0% 70.9% 71.1% 70.2% 68.6% 195 000 195,000 70 0% 70.0% 72.2% 193,501 185,000 60.0% 187,294 184,767 172 698 172,698 175,000 50.0% 47.4% 46.0% 44.5% 45.4% 44.4% 165,000 40.0% 155,000 30.0% Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q Q Q Q Q Total R
Slide 9: Wireless Services
Wireless Services
Slide 10: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.906.6 mn Population 1 2 billion 1.2 → Relatively large youth population Wireless Penetration c.74.49% Telecom penetration c.77.0% Operational metrics per month (~937.7 mn telecom subs) Usage per user 339 min Sub number shoul
Slide 11: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Sept were Negative 1.7 Mn… less than S-curve triggered over last 3 months average run rate of ‐7.0 Mn Closing Subs Net Adds 90% 1,000 30 80% 25 70% % 800 20 60% 15 10 50% 600 5 40% - 400 30% ((5)) (10) 20% M illio n s 200 (15) 10% (20) - (25) 0% 199
Slide 12: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer C stomer Market Share – CMS (%) 200 186 25% 180 173 23% 20.5% 160 153 21% 147 145 19.8% 135 134 140 119 19% 16.8% 115 16.8% 16.6% 120 105 101 100 17% (mn) 89 14.9% 14.8% 100 15% 78 13.6% 80 11.6% 12.7% 13% 11.6% 11.5% 60 11% 10.2% 40 8.6%
Slide 13: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share p p Prepaid/Postpaid 200 19.8% 19.8% 20.6% 21.8% 22% 98% 93.7% 96.2% 95.8% 95.1% 89.1% 19.7% 150 18% 92% 100 187.3 185.9 14% 172.8 175.7 181.3 96.3% 96.3% 96.3% 96.2% 96.0% 86% 50 10% 0 6% 80% Q212 Q312 Q412 1Q13 2Q13 Q212 Q312 Q41
Slide 14: 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 growth (>$ 12Bn) through M‐Com, M‐ Revenue Market Share entertainment & 3G Cost Net Adds Improving cost efficiencies Non financial Maximizing Driv
Slide 15: Telemedia Services
Telemedia Services
Slide 16: 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 87 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises
Slide 17: Digital Services
Digital Services
Slide 18: A Snapshot – Digital TV
A Snapshot Launched “Airtel Digital TV” service in October 2008 as fifth operator providing Direct‐to‐Home (DTH) services in India C Current t subscriber b ib baseb off ~7 ~7.5 5 million illi customers t – Adding 1 out of every 4 new customers joining the DTH platform – Currently offer a total of 30
Slide 19: Airtel Business
Ai l B Airtel Business i
Slide 20: A Snapshot
A Snapshot Airtel Business 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 p g ffull suite off voice, data, and managed g communications solutions Ca
Slide 21: Emerging Growth Engines
Emerging Growth Engines Passive Infra Africa
Slide 22: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue (USD Mln) EBITDA (USD Mln) 37.5% 37.3% 38.6% 36.5% 37.5% 510 250 486 482 481 182 186 200 180 174 480 163 463 150 445 450 100 420 50 0 390 Q212 Q312 Q412 Q113 Q213 Q212 Q312 Q412 Q113 Q213 Focus on tenancy enhancement…driving Revenue & Profitability The a
Slide 23: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 34,000 1.9 112,000 2.20 1.91 1.94 1.96 1.98 1 81 1.81 1 82 1.82 1 82 1.82 1.81 1 89 1.89 1.79 1.8 2.00 107,000 1.7 1.80 33,000 110,561 1.6 109,204 109,328 109,325 109,539 1.60 33,446 10
Slide 24: Transaction Rationale
Transaction Rationale 9 Shareholding and 100% Cash Transaction 9 Management Control Focus on Core 9Brand – ‘Airtel’ Airtel Global Middle East 9 Stature Operators Clean / Emerging Market 9 certainty Characteristics of transaction Strong Platform St Pl tf for Future Expansion Low Competitive 9Manageab
Slide 25: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 74% 46% Average Number of 10‐12 3‐5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~417 417 ~138 138 ARPU (US$) ~$3.2 ~$6.4 ARPM (US cents ¢) 0.8¢ 4.6¢ A d therefore And th
Slide 26: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 58.7 Mn Performance Indicators (CY 2012): Revenue: $ 4,137 Mn EBITDA: $ 1,097 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 138 Minutes →one o e of thee lowest o es ARPU: ~ US$ 6.4 Rate per minute: ~ US¢ 4.
Slide 27: Recent Honors
Recent Honors
Slide 28: Bharti airtel – Leadership in business
Bharti airtel – Leadership in business Recent Honours Sunil Bharti Mittal, Won :‘Best : Best National Mobile Ranked #71 in top 100 list of Chairman & Group CEO Operator’, ‘Best VAS Provider’, Global Brands by Millward Brown ‘Best Enterprise Services Provider’ , Global Game changer at Optimer, publis
Slide 29: thank you
thank you i, airtel
Bharti Airtel — Investor Presentation (November 2012) on 6ix