Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (December 2019)
37 slides from Bharti Airtel's investor presentation, December 2019
Slide 1: December 2019
December 2019 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is provided by Bharti Airtel Limited (the “Company”) to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part thereof
Slide 3: India
INDIA 3
Slide 4: Our Portfolio: India
Our Portfolio: India Mobile Services Airtel Business Homes Broadband #2 Telecom Operator in India #1 Enterprise Telco in India #1 Private Broadband Operator Digital TV Tower Infra Payments Bank 16 M+ Customers Among Top Passive Infra Provider ~50 M Banking Customers 4
Slide 5: Our Portfolio: India
Our Portfolio: India Mobile Business Homes Broadband Customers (M) 283 Customers (M) 2.3 Revenue (Rs Mn) 415,541 Revenue (Rs Mn) 22,391 EBITDA % 22.7% EBITDA % 48.3% Airtel Business Digital TV Large Corporates ~2,000 Customers (M) 15.4 Revenue (Rs Mn) 124,538 Revenue (Rs Mn) 41,001 EBITDA % 32.6% EB
Slide 6: 30 Months of Turbulence
30 Months of Turbulence 2017 Indian Telecom Revenue 2019 30% Revenue Collapse $22 $32 B B Industry Consolidation 8 4 Players Value Players 2019 2016 Capex as % of Revenue Unprecedented Capex 22 41% % 6
Slide 7: 30 Months of Turbulence
30 Months of Turbulence 30% Revenue Collapse Explosive Data Usage (>10X) Industry Consolidation Disruption Regulatory Shocks Unprecedented Capex Subsidies 7
Slide 8: Airtel has held Market Share Despite all the Turbulence
Airtel has held Market Share Despite all the Turbulence Airtel RMS includes Telenor from Q2’19 onwards and Tata Mobile Revenue from Q2’20 onwards; RMS is calculated on the basis of adjusted gross revenue including NLD. Source: TRAI 8
Slide 9: And we have done so Efficiently – Grown ARPU, Held Costs
And we have done so Efficiently – Grown ARPU, Held Costs ARPU (Rs) Opex-India (Rs Bn) 135.0 300 132 284 150.0 272 130 280 260 264 130.0 140.0 260 126 129 128 130.0 240 125.0 120.0 220 123 120.0 122 200 110.0 104 120 100 180 100.0 115.0 160 90.0 110.0 140 80.0 120 105.0 70.0 100 Q2'19 Q3'19 Q4'19 Q1'
Slide 10: Massive Operating Leverage with ARPU Recovery
Massive Operating Leverage with ARPU Recovery Expanding 4G Customer Base (Mn) ARPU Directly Linked to India Mobile EBITDA % of Total 19.8 27.1 30.7 33.9 36.9 ARPU 100 104 123 129 128 (INR/Month) Custome % % % % % rs 35.7% 36.3% 103.0 24.1% 20.9% 19.1% 95.2 86.8 1,574 1,556 1,466 1,506 77.1 1,420 65.
Slide 11: Airtel Strategy
Airtel Strategy aye Quality Brilliant Customers Experience Powerful Partnerships People : One Airtel 11
Slide 12: Quality Customers: Airtel Thanks
Quality Customers: Airtel Thanks Rewards to Customer Base of 150 Million Basis ARPU and Loyalty Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing Simplify War on Waste Experience Partnerships Airtel 12
Slide 13: Quality Customers: Deliver Differentiated Services
Quality Customers: Deliver Differentiated Services Rewards that Customers Really Value Delivered through Aspirational Tiers Best-in-class Content Premium Device Care Affordable Financial Services Core Telecom Service Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing
Slide 14: Quality Customers: Own the Home, Converged Solutions
Quality Customers: Own the Home, Converged Solutions Speed Content Mobile Surveillanc e Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing Simplify War on Waste Experience Partnerships Airtel 14
Slide 15: Quality Customers: Accelerate Enterprise Business
Quality Customers: Accelerate Enterprise Business Rapid Expansion Scale Data Centers Build New Verticals Grow SME, Expand Reach 10 Large, 120+ Edge DCs More Products, Stronger Partnerships Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing Simplify War on Waste Experi
Slide 16: Massive Spectrum Holdings Across All Bands
Massive Spectrum Holdings Across All Bands Massive Spectrum Holdings Deployed for 4G Share of Spectrum Spectrum band MHz spectrum Market Share (%) BSNL 16% Airtel 800 and 900 MHz 255.3 29% 1800 MHz 566.1 Over 33% market share in each of the 2100 MHz spectrum bands 25% 340.0 Jio + RCom 2300 MHz 570.0
Slide 17: Multiple Solutions to Create Capacity
Multiple Solutions to Create Capacity Largest Ever Deployment Maximize 4G spectrum Massive MIMO Sectorization LAA – 5GHz 2100 900 100K 4G sites in 2 years Augment current sites, VoLTE 3-5X Capacity Gain Hyper capacity sites Brilliant Powerful People: One Quality Customers Services at Scale Micro Mar
Slide 18: Backhaul Readiness for the Future
Backhaul Readiness for the Future Extensive Fiber Roll-out Extreme-scale Architecture 16QAM 8QAM 32QAM 100 mbps 200 mbps 1 gbps QPSK 64QAM 100G to 400G >70% of our Sites are 200+ Mbps 5G Ready Backbone Self Healing ‘IP over Photonics’ Brilliant Powerful People: One Quality Customers Services at Scal
Slide 19: Obsessed with Network Quality
Obsessed with Network Quality Tailored for Use Cases Customer Level Performance Open & Transparent Telco We're getting better every day! A new 4G tower has been added in Kailash colony K Block. Now enjoy faster data speeds & improve network coverage on your Airtel 4G Right Caching, Routing, Latency
Slide 20: Resulting in a Brilliant Customer Experience
Resulting in a Brilliant Customer Experience Network Complaints Data Speed -22% Q4'19 Q4'20 * Continuously Recognized as Fastest 4G Network by Third Party * Expected Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing Simplify War on Waste Experience Partnerships Airte
Slide 21: We have built a Digital Ecosystem on Top of the Core Telco
We have built a Digital Ecosystem on Top of the Core Telco Airtel Digital Services Enabled by Partners Airtel Thanks Wynk Music Payments Bank >150 Mn Customers #1 App in India 50 Mn Customers Content Connected Retail Lending 300 B Video streams >1Mn Retailers 100 Mn+ Credit scores TEAM APIs Network
Slide 22: We Prioritize, Track and Drive Performance at a District Level
We Prioritize, Track and Drive Performance at a District Level 244 Priority Districts based on 1 Economic Potential (4G Market size) 2 Capital Efficient (Revenue per Tower) 3 Brand Affinity (Airtel 4G share) Brilliant Micro Powerful People: One Quality Customers Services at Scale Simplify War on Was
Slide 23: Dramatic and Bold Simplification
Dramatic and Bold Simplification Zero Tolerance on Faults Digitize Processes Simplify Organization War on Failures Workforce Management Fewer, Bigger Roles Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing Simplify War on Waste Experience Partnerships Airtel 23
Slide 24: Partnerships Play a Central Role in our Strategy Execution
Partnerships Play a Central Role in our Strategy Execution Partnership Principles T Transparent Commercials E Ease of Integration on our Platform A Accelerated Adoption of Partner Propositions M Mutual Growth Brilliant Powerful People: One Quality Customers Services at Scale Micro Marketing Simplify
Slide 25: Summary: Indian Telecom now at a decisive cusp
Summary Indian Telecom now at a decisive cusp 25
Slide 26: Africa
AFRICA 26
Slide 27: One of the Leading Telcos & Mobile Money Platform
One of the Leading Telcos & Mobile Money Platform Nigeria 14 Countries East Africa Premium Listed London Rest of Africa Stock Ex FTSE 250 #2 Largest Telecom Operator in Africa (1) Niger $3.8bn Market Cap (4th Dec’19) Chad $3.2bn Sep’19 Net Debt #1 or #2 in 12 out of 14 Markets(1) Nigeria (includes L
Slide 28: Airtel Africa: Two Opportunities in One
Airtel Africa: Two Opportunities in One Airtel Africa Telecom Payments Leading Telecom operator in Sub Dedicated platform of Airtel Money Saharan Africa Scalable, with low capital intensity Scaled and well invested Sizable growth opportunity with Large growth opportunity ahead captive customer
Slide 29: Clear Strategy for Growth
Clear Strategy for Growth Smart network for 4G Our Aspirations: leadership Quality customers Growing ahead of market to increase revenue market share Data Airtel Money to become the currency of choice Africa Airtel money Monetization of all revenue streams Multiple areas of additional upside To cont
Slide 30: Strong Set of Results Across the Business
Strong Set of Results Across the Business Subscriber Base (mn) ARPU ($/sub/month) Revenue ($m) Gross 10.4% (6.0%) 3.2% 956.5 Revenue 103.9 1.7 953.1 1.6 $ 1,640 Mn Voice 94.1 + 11.4% yoy 17.7% 18.5% 37.8% 433.6 EBITDA 31.9 2.4 $ 719 Mn Data 27.1 + 13.7% yoy 2.1 322.6 EBITDA Margin 43.9 % + 100bps Mo
Slide 31: Track Record of Consistent Delivery
Track Record of Consistent Delivery Revenue (Constant currency 5.0% 10.9% 14.4% 11.7% 12.0% 10.0% 10.2% 12.6% growth; %) Underlying EBITDA margin 40.4% 41.7% 42.6% 43.2% 43.3% 44.0% 43.7% 44.1% (%) 844 783 781 796 751 745 769 Revenue 736 ($m) 372 332 339 344 348 303 307 317 Underlying EBITDA ($m) Q3
Slide 32: Transparent and Balanced Capital Allocation Policy
Transparent and Balanced Capital Allocation Policy Reduction of leverage including Clear dividend policy aiming to IPO proceeds to a leverage distribute at least 80% of Return cash target of 2.0-2.5x net debt / consolidated FCF, subject to: Sustainable EBITDA to • Net debt to Underlying EBITDA capit
Slide 33: Consolidated
CONSOLIDATED 33
Slide 34: Financial Performance – Consolidated
Financial Performance – Consolidated Consol Revenues ($mn) EBITDA ($mn) EBITDA Margin 37.8% 14,033 36.8 12,823 5,304 % 32.5 11,567 4,725 % 3,768 41.0 42.3% % 2,979 2,969 1,220 1,256 FY17 FY18 FY19 1QFY20 2QFY20 FY17 FY18 FY19 1QFY20 2QFY20 Consol Capex ($mn) Total Opex1($mn) India South 2,547 3,740
Slide 35: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends Airtel Consolidated Revenues ($mn) 26.1 19.0% 23.9% 23.3 36.1 Revenues ($mn) % % %1,583 Mobile Services 1,557 1,590 31.5 31.2 33.0 41.0 42.3 India + SA 1,502 1,493 % % % % % 2,979 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 EBITDA 2,969 Margin India – Other Revenues (
Slide 36: Timely Equity Infusions & Diversified Debt Profile
Timely Equity Infusions & Diversified Debt Profile Recent Activities Undertaken Sep 2014; Oct 2015 Feb 2015 May 2017 Aug 2017; Nov 2017 Dec 2017 Jan - Nov 2018 May 2019 June 2019 Total Africa tower sales Monetization of Infratel stake sale Monetization of DTH partial stake Airtel Africa Pre- Issuanc
Slide 37: Thank You
THANK YOU 37
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