Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (June 2009)
39 slides from Bharti Airtel's investor presentation, June 2009
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited June 2009
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 crosses 100 Mn customers
Bharti Airtel crosses 100 Mn customers 9 Third company in the world to cross 100 million subscriber mark in a Single country 9 Joins China Mobile and China Unicom in the 100M-Plus Club 9 Sixth largest integrated operator in the world after China Mobile, China Unicom, China Telecom, AT&T and Verizon
Slide 4: Advantage India
Advantage India Population: 1.1 billion → increasing urbanisation → relatively large youth population GDP Growth (Real) : ~6.7% → second highest growing economy GDP Size (PPP adjusted): US$ 3 trillion → fourth largest economy in the world Telecom penetration: 38.88% (452.91 mn telecom subs)
Slide 5: The Company...Bharti Airtel – An Integrated Telco
The Company...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)/IPTV Fully integrated telecom player offering end to end solutions 5
Slide 6: 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 7: Latest Results – Q4 FY08/09
Latest Results – Q4 FY08/09 Key operating and financial metrics Continued Strong Performance Q4 FY 09 Y-on-Y Wireless Customer market share leadership at 24.0%. Customers 96.65 mn 50.0% Total minutes on network carried in Q4 – 150 billion Revenue $ 1,928 mn 25.6% Total employee strength – 24,5
Slide 8: Segment contribution…Rev, EBITDA and Investment
Segment contribution…Rev, EBITDA and Investment Revenue EBITDA 4% 7% 1% 5% 7% -3% 18% 20% 9% 65% 84% 9% Mobile Services Telemedia Services Mobile Services Telemedia Services Enterprise Services - Carriers Enterprise Services - Corporates Enterprise Services - Carriers Enterprise Services - Corporate
Slide 9: Performance dashboard - line graph
Performance dashboard - 3 line graph 110,000 74% 74% 73% 72% 70% 70.0% 100,000 Amount in Rs. Mn 96,334 98,245 90,000 60.0% 90,2 03 80,000 84,833 50.0% 78,191 70,000 35% 40.0% 60,000 34% 35% 34 % 33% 50,000 30.0% Q4FY08 Q3FY 09 Q4FY 09 Q 1FY09 Q2FY09 Gross Revenue (Rs mn.) (LHS) Opex to Gross Rev (RH
Slide 10: Recently in news...
Recently in news... • Announced Managed Services Joint Venture with Alcatel-Lucent to manage Bharti Airtel’s pan- India Broadband and Telephone services and help Airtel’s transition to Next Generation Networks. • Offered Net PC by launching cloud computing service on broadband – a low-cost online co
Slide 11: Wireless Services
Wireless Services 11 Mobile Services Telemedia Services Enterprise Services
Slide 12: Indian Wireless Market…KPIs
Indian Wireless Market…KPIs JK Sub Base : 415.25 mn →second largest market HP PB Wireless Penetration: 35.8% 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: 90%+ BH NE →one of the highest in the world GUJ MADHYA MP
Slide 13: Rapidly Growing Wireless Market
Rapidly Growing Wireless Market Net Adds in May…11.6 Mn, a more sustainable number than 15 Mn average net adds per month S-curve triggered in last quarter Closing Customers (mn) Net Adds (mn) 90% 450 11 80% 400 10 70% 9 350 60% 8 300 7 50% 250 6 40% 200 5 4 30% 150 3 20% 100 2 50 10% 1 - - 0% 1999 2
Slide 14: Wireless Market Structure
Wireless Market Structure Subscriber Trends Customer Market Share – CMS (%) 25.0% 24.0% 24.0% 120.00 23.0% 99.55 21.0% 100.00 18.6% 17.8% 19.0% 77.22 17.6% 17.1% 80.00 74.08 17.0% 16.3% 58.17 15.0% 14.0% (mn) 60.00 41.24 13.0% 32.72 36.49 9.9% 40.00 28.18 28.50 11.0% 26.61 9.4% 8.8% 9.2% 12.96 15.10
Slide 15: Company Highlights on Wireless Services
Company Highlights on Wireless Services 15 Mobile Services Telemedia Services Enterprise Services
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
Slide 17: Performance Indicators - Financial
Performance Indicators - Financial Revenues (USD mn) EBITDA (USD mn) & Margin (%) 41.0 40.8 35.5 30.7 30.2 31.4 31.5 1,700 1,614 550 1,600 1,558 1,500 1,430 508 1,400 1,357 500 490 1,300 1,260 1,200 1,101 450 449 447 1,100 432 993 1,000 416 407 900 400 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q208 Q308 Q4
Slide 18: Performance Indicators - Operational
Performance Indicators - Operational Customers & Market Share Prepaid/Postpaid 100.0 28.0% 105.0% 93.9 90.0 27.0% 100.8% 85.7 100.0% 80.0 77.5 26.0% 69.4 95.4% 94.2% 70.0 25.0% 95.0% 92.3% 92.9% 93.5% 62.0 90.4% 91.0% 91.6% 60.0 55.2 24.6% 24.7% 24.0% 48.9 24.2% 24.0% 23.7% 90.0% 50.0 23.4% 23.6% 23
Slide 19: Road map – Wireless Market
Road map – Wireless Market Current Proposed Presence Operational in 22 circles of India on GSM Looking for options primarily in technology. emerging markets. Launched Operations in Srilanka Option in emerging markets…. Population 81% of population covering 5060 census • Poised to cover all census to
Slide 20: Road map – Wireless Market
Road map – Wireless Market Current Proposed 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
Slide 21: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size ($ 6 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 22: Telemedia Services
Telemedia Services 22 Mobile Services Telemedia Services Enterprise Services
Slide 23: 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 24: 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 95
Slide 25: Product Portfolio
Product Portfolio Our Media Play 25 Mobile Services Telemedia Services Enterprise Services
Slide 26: Performance Indicators
Performance Indicators Revenues (USD mn) EBITDA (USD Mn) & Margin (%) 190 39.7 43.4 43.8 42.2 43.6 41.7 42.1 80.0 180 75.0 73 69 71 168 70.0 66 167 66 170 166 65.0 62 157 60.0 160 55.0 55 150 150 50.0 143 45.0 140 40.0 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Customers (
Slide 27: Enterprise Services
Enterprise Services 27 Mobile Services Telemedia Services Enterprise Services
Slide 28: 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 29: 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 captive traffic (group traffic) ~ 90 % Legend Existing OFC Route NLD minutes carried (Q4FY09) 11.7 Bn Min Under Execution
Slide 30: Enterprise Services – Carriers ILD
Enterprise Services – Carriers ILD London Bude EIG Marseilles Monaco Sesimbra Palermo Los Angeles Catania Gibraltar Annaba IMEWE Chikura Bizerte Tripoli EIG UNITY San Luis Tajoura Obispo Alexandria Suez Fujairah Karachi SJC Hong Kong Hawaii Cox’s Bazaar Muscat La Union AAG Port Sudan Jeddah E Mumbai
Slide 31: Performance Indicators - Carriers
Performance Indicators - Carriers Revenues (USD mn) EBITDA (USD mn) & Margin (%) 34.5 32.2 32.0 43.9 43.2 45.4 45.1 400.0 160.0 158 155 348 144 360.0 334 344 140.0 135 308 120.0 320.0 100.0 280.0 80.0 72 79 247 68 240.0 223 60.0 197 40.0 200.0 20.0 160.0 0.0 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q208 Q
Slide 32: 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 33: Performance Indicators - Corporates
Performance Indicators - Corporates Revenues (USD mn) EBITDA (USD mn) & Margin (%) 41.9 41.9 57.0 45.7 41.4 42.9 49.3 60.0 120.0 40.0 100.0 96 42 40 40 35 34 80 81 28 27 80.0 74 76 20.0 67 65 60.0 0.0 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q208 Q308 Q408 Q109 Q209 Q309 Q409 33 Mobile Services Telemedia
Slide 34: Passive Infrastructure Services
Passive Infrastructure Services 34 Mobile Services Telemedia Services Enterprise Services
Slide 35: 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 1.34 for Infratel and 1.48 for Indus. Provide en
Slide 36: Recent Honours
Recent Honours 36 Mobile Services Telemedia Services Enterprise Services
Slide 37: Bharti Airtel – Leadership in business Recent Honours
Bharti Airtel – Leadership in business Recent Honours Bharti Airtel and IFFCO JV Awarded with top honors at the Adjudged Wireless Service bagged the “Best Content GSMA Mobile World Congress Provider of the Year 2009 - Service” award and Gujrat E- Conference 2008 in Barcelona Frost & Sullivan Asia Pa
Slide 38: 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 39: Option in emerging markets….
Option in emerging markets…. 9 Renewed effort of possible partnership between Bharti and MTN 9 Potential transaction between the two would create a leading telecommunications service provider with combined subscriber base of over 200 million and revenues of over $20 billion. 9 Pursuant to the scheme