Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (June 2010)
36 slides from Bharti Airtel's investor presentation, June 2010
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited June 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: Advantage India
Advantage India Population: 1.2 billion → increasing urbanisation → relatively large youth population GDP Growth (Real) : ~8.6% → second highest growing economy GDP Size (PPP adjusted): US$ 3 trillion → fourth largest economy in the world Telecom penetration: 55.38% (653.92 mn telecom subs)
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 Passive Infrastructure Services Telemedia Services Fixed Line DTH (Media) Broadband IPTV Fully integrated telecom player offe
Slide 5: 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 6th LARGEST INTEGRATED telecom operator in the world LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST operator in
Slide 6: Latest Results – Q4 FY09/10
Latest Results – Q4 FY09/10 Key operating and financial metrics Continued Strong Performance Q4 FY 10 Y-on-Y Wireless Customer market share leadership at 21.64%. Customers 130.69 mn 35.2% Total minutes on network carried in Q4 – 196 mn Total employee strength – 18,354 Revenue $ 2,228 mn 2.4%
Slide 7: Segment contribution…Rev, EBITDA and Investment
Segment contribution…Rev, EBITDA and Investment REVENUE EBITDA 9% 2% 12% -8% 21% 26% 63% 8% 82% 10% Mobile Services Telemedia Services Mobile Services Telemedia Services Enterprise Services Passive Infrastructure Services Enterprise Services Passive Infrastructure Services Others Others INVESTMENTS
Slide 8: Performance dashboard - line graph
Performance dashboard - 3 line graph 110,000 80% 70% 68% 105,000 64% 62% 70% 61% Amount in Rs. Mn 60% 100,000 100,557 98,245 99,416 98,455 50% 95,000 97,722 40% 38% 40% 90,000 37% 37% 34% 30% 85,000 20% 80,000 10% Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Gross Revenue (Rs mn) LHS Opex to Gross Rev (R
Slide 9: Wireless Services
Wireless Services 9 Mobile Services Telemedia Services Enterprise Services
Slide 10: Indian Wireless Market…KPIs
Indian Wireless Market…KPIs JK Sub Base : 617.53 mn →second largest market HP PB Wireless Penetration: 52.30% UP(W) →lowest in the world HAR HHI Index: very high DELHI DEL →one of the most competitive market RAJ AS UP(E) Prepaid Base: 95% BH NE →one of the highest in the GUJ MADHYA MP PRADES
Slide 11: Rapidly Growing Wireless Market
Rapidly Growing Wireless Market Net Adds in May 16.3 Mn…lesser than over S-curve triggered last 2 months average run rate of 18.7 Mn Series2 Series1 90% 700 16 80% 15 600 14 70% 13 500 12 60% 11 10 50% 400 9 8 40% 300 7 6 30% 200 5 4 20% 3 100 2 10% 1 - - 0% 1999 2001 2003 2005 2007 2009 2011 2013 2
Slide 12: Wireless Market Structure
Wireless Market Structure Subscriber Trends Customer Market Share – CMS (%) 160 25% 24.0% 133.62 140 23% 21.6% 120 107.97 106.35 21% 18.6% 19% 17.5% 17.8% 100 17.2% 76.85 17% (mn) 80 66.73 70.21 14.0% 15% 55.80 12.4% 60 13% 11.4% 10.8% 34.07 30.75 32.27 33.72 11% 9.9% 40 25.48 27.30 9.0% 18.70 8.8%
Slide 13: Company Highlights on Wireless Services
Company Highlights on Wireless Services 13 Mobile Services Telemedia Services Enterprise Services
Slide 14: 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
Slide 15: Performance Indicators - Financial
Performance Indicators - Financial Revenues (INR mn) EBITDA (INR mn) & Margin (%) 30.7 30.2 31.4 31.5 33.0 31.9 30.4 29.2 28,000 85,000 82,216 82,285 27,183 80,994 79,618 81,975 27,000 80,000 79,392 25,860 25,860 26,000 75,000 72,843 69,150 25,000 24,963 70,000 24,178 64,201 24,000 65,000 23,969 23,
Slide 16: Performance Indicators - Operational
Performance Indicators - Operational Customers & Market Share Prepaid/Postpaid 140.0 28.0% 105% 130.0 27.0% 120.0 101.1% 101.70% 26.0% 99.6% 110.0 24.0% 100% 100.8% 24.7% 97.9% 100.4% 100.0 24.6% 25.0% 97.5% 24.2% 24.0% 98.4% 23.7% 95.4% 94.7% 95.2% 95.3% 95.8% 90.0 23.4% 24.0% 96.3% 95% 93.5% 94.2%
Slide 17: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size ($ 9 Bn) Changing face of Revenue Market growth through M-Com, Share M-entertainment & 3G Cost Net Adds Improving cost efficiencies Maximizing Non financial Driven
Slide 18: Telemedia Services
Telemedia Services 18 Mobile Services Telemedia Services Enterprise Services
Slide 19: 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 89 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises
Slide 20: 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 21: Product Portfolio
Product Portfolio 21 Mobile Services Telemedia Services Enterprise Services
Slide 22: Performance Indicators
Performance Indicators Revenues (INR mn) EBITDA (INR Mn) & Margin (%) 42.2 43.6 41.7 42.1 40.5 42.9 46.1 43.5 9,100 4,000.0 3,944 8,800 8,585 8,550 8,544 8,550 8,510 8,486 3,800.0 8,500 8,458 3,696 3,667 8,200 3,614 3,702 7,988 3,600.0 3,531 7,900 3,463 7,641 3,400.0 3,367 7,600 3,344 7,300 3,200.0
Slide 23: Enterprise Services
Enterprise Services 23 Mobile Services Telemedia Services Enterprise Services
Slide 24: 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 25: Highlights
Highlights # 1 Operator in India in terms of: NLD Revenue (Voice & Data) ILD Revenue (Voice & Data) Corporate Fixed Line Operator Corporate Internet Provider Corporate Mobility Provider VSAT Provider (installed base) 25 Mobile Services Telemedia Services Enterprise Services
Slide 26: Domestic Network
Domestic Network Fiber commissioned for over 126,357 Kms Transmission Network (14,000 SDH nodes) High resilience via ring structure & automatic switching Tier-1 MPLS network (across 120 Cities) Internet backbone capacity > 60 Gbps Proactive 24 x 7 x 365 NOC 304 LDCAs & 1680 SDCAs cover
Slide 27: International Network
International Network 27 Infrastructure Coverage Interconnects with about 400 International Carriers TDM and IP Voice traffic termination in 230+ countries NGN with 4 Global Media Gateways Major International PoPs for carrier interconnect at Los Angeles, New 100% Ownership of i2i Cable sys
Slide 28: What We Offer
What We Offer • Wholesale Voice • Retail Voice - Mobility Solutions - NLD Voice Carriage Services - Corporate Mobile Ser Voice Services - International & Domestic Toll Free services - Mobile Data (Blackberry, Data card, applications) - International Calling Services - SMS-Based Tools & Bulk SMS Solu
Slide 29: Performance Indicators – Enterprise Services
Performance Indicators – Enterprise Services Revenues (INR mn) EBITDA (INR mn) & Margin (%) 44.2 42.8 44.9 45.9 48.8 51.7 48.8 47.5 21,874 21,808 21,628 11,000.0 11,023 22,000 21,331 10,246 20,982 9,920 21,000 20,546 20,738 10,000.0 9,369 9,799 10,035 9,846 19,572 9,000.0 20,000 8,655 19,000 8,000.0
Slide 30: Passive Infrastructure Services
Passive Infrastructure Services 30 Mobile Services Telemedia Services Enterprise Services
Slide 31: A snapshot
A snapshot Bharti Infratel operates in 11 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 1.62 for Infratel and 1.71 for Indus. Provide en
Slide 32: Performance Indicators - Bharti Infratel
Performance Indicators - Bharti Infratel Revenues (INR mn) EBITDA (INR mn) & Margin (%) 12,702 36.6 33.3 33.5 40.1 44.4 46.8 46.1 47.2 13,000 5,000 11,983 4,507 4,500 4,258 4,269 3,991 4,020 11,000 10,563 4,000 3,870 3,557 9,267 9,552 3,500 8,586 2,903 9,000 3,000 8,020 7,241 2,500 7,000 2,000 1,500
Slide 33: Indus Towers
Indus Towers Roof Top Tower 102,938 1.90 102,696 103,000 100,728 1.80 101,000 97,925 1.70 99,000 1.71 1.61 1.60 97,000 1.61 95,000 1.55 1.50 93,000 1.40 Q110 Q210 Q310 Q410 No o f to wers Sharing Facto r Ground Based Tower First of its kind deal…Bharti (42%), Voda (42%) & Idea (16%) Largest inde
Slide 34: Recent Honours
Recent Honours 34 Mobile Services Telemedia Services Enterprise Services
Slide 35: 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 Provider of the Year 2009 - 14 categories including Most Finance ‘Brand Power Frost & Sulliv
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