Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (May 2011)
27 slides from Bharti Airtel's investor presentation, May 2011
Slide 1: Investor Presentation Bharti airtel limited
Investor Presentation Bharti airtel limited May 2011
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: The Company...Bharti airtel – An Integrated Telco
The Company...Bharti airtel – An Integrated Telco Wireless Services Enterprise Services 2G Carriers Corporates 3G Rural Market Passive Infrastructure Services Infratel Telemedia Services Indus Fixed Line Broadband DTH IPTV Pay per view / HD Interactive Services including Gaming Fully integrated tele
Slide 4: The Company…Bharti airtel
The Company…Bharti airtel No. of circles (India) Today Countries 1 5 15 22 19 ‘ 1996 2001 2003 2004 2010 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 2011 Single Circle Operator Company Profile Largest integrated private telecom operator < 25k Customers ~ 221 mn ~ USD 17 mn Revenue ~ USD 13 bn ~ USD 2.5 mn EBITDA ~ USD 4 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Market Capitalization ~ USD
Slide 6: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST wireless operator in the world (1) FY 11 (in Mn) LARGEST private INTEGRATED telecom company in Customers 220.9 India Revenue $ 13,319 5th LARGEST INTEGRATED telecom operator in the EBITDA $ 4,472 world Cas
Slide 7: Latest Results – 4Q’11
Latest Results – 4Q’11 Key operating and financial metrics Continued Strong Performance Q4 FY 11* Y-on-Y Wireless CMS 19.9% Customers 220.9 mn 65.9.% Wireless RMS 31.2% Total MOU carried in Qtr 240.2 bn Revenue $ 3,643 mn 51% Balance sheet strength: EBITDA $ 1,112 mn 33% Assets $ 32.8 bn Cash Profit
Slide 8: Total Revenue (Rs.mn)
Performance dashboard - 3 line graph 165,000 80% 73.6% 157,560 72.1% 162,654 155,000 69.8% 70% 63.2% Total Revenue (Rs.mn) 70.8% 145,000 152,150 60% 135,000 50% 122,308 45.4% 125,000 41.4% 46.9% 44.8% 40% 115,000 42.4% 107,491 105,000 30% Q410 Q111 Q211 Q311 Q411 Total Revenue (Rs. Mn) (LHS) Opex to
Slide 9: Wireless Services
Wireless Services
Slide 10: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.811.59 mn Population 1.2 billion → Relatively large youth population Wireless Penetration c.67.98% Telecom penetration c.70.89% Operational metrics per month (~846.32 mn telecom subs) Usage per user 449 min Sub number should go upto 1 B
Slide 11: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Feb 20.2 Mn…lesser than over last 3 S-curve triggered months average run rate of 20.6 Mn Closing Subscribers Net Adds 90% 80% 900 26 24 70% 800 22 700 20 60% 600 18 16 50% 500 14 (m n) 40% 400 12 10 30% 300 8 200 6 20% 4 100 10% 2 - - 0% N ov -03 M
Slide 12: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 25% 180 23% 21.8% 162 160 21% 20.0% 136 135 19% 140 128 17.5% 16.7% 17.3% 16.6% 120 17% 102 101 103 97 100 90 89 15% (mn) 12.8% 12.7% 75 13% 12.0% 80 66 64 11.0%10.9% 11.0%11.3% 54 11% 60 49 35 33 34 9% 8.4% 40 26 2
Slide 13: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 102% 101.7% 21.8% 21.5% 99.2% 20.8% 97.5% 98.2% 98.1% 180 20.3% 20.0% 22% 98% 96.0% 96.1% 96.2% 96.3% 95.8% 94% 18% 120 90% 14% 162.2 143.3 152.5 86% 127.6 136.6 60 10% 82% 78% 0 6% Q410 Q111 Q211 Q311 Q411 Q410 Q1
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 (>$ 9 Bn) through M-Com, M- Revenue Market Share entertainment & 3G Cost Net Adds Improving cost efficiencies Non financial Maximizing Driven by rura
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. 3. C
Slide 17: Enterprise Services
eo / airtel Enterprise Services
Slide 18: 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 Carriers: Wh
Slide 19: Emerging Growth Engines: Passive Infra, Africa
Emerging Growth Engines Passive Infra Africa
Slide 20: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue EBITDA 37.1 35.5 37.1 38.6 37.0 200 490 493 189 500 183 471 175 180 438 450 431 160 155 160 400 140 350 120 300 Q410 Q111 Q211 Q311 Q411 100 Q410 Q111 Q211 Q311 Q411 Focus on tenancy enhancement…driving Revenue & Profitability The above nos for Revenue &
Slide 21: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 33,000 1.8 109,000 1.83 1.90 1.78 1.80 1.73 1.75 107,000 1.71 1.80 32,000 1.68 1.7 1.65 1.65 1.70 105,000 1.62 1.60 31,000 32,792 1.6 103,000 108,586 32,424 107,789 1.50 31,831 106,438
Slide 22: Transaction Rationale
Transaction Rationale Shareholding and 100% Cash Transaction Management Control Focus on Core Brand – ‘Airtel’ Global Middle East Stature Operators Clean / Emerging Market certainty Characteristics of transaction Strong Platform for Future Expansion Low Competitive Manageable Intensity Deal Size Div
Slide 23: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 66% 40% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~449 ~115 ARPU (US$) ~$4 ~$7 ARPM (US cents ¢) 1¢ 6¢ And therefore huge opportunity space
Slide 24: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 44.2 Mn Performance Indicators (CY 2011): Revenue: $ 2,878 Mn EBITDA: $ 6,30 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 115 Minutes →one of the lowest ARPU: ~ US$ 7.2 Rate per minute: ~ US¢ 6.2 → one of the highest
Slide 25: Recent Honors
Recent Honors
Slide 26: Bharti airtel – Leadership in business Recent Honours
Bharti airtel – Leadership in business Recent Honours Economic Times Telecom Awards 2011 Innovative Product Value Added Service Customer Experience Enhancement NDTV Profit Business Leadership Awards 2010 Top Telecom Company Sunil Bharti Mittal - Business Innovator of the Year India’s Most Innovative
Slide 27: thank you
thank you 2