Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (November 2013)
37 slides from Bharti Airtel's investor presentation, November 2013
Slide 1: Management Presentation
Management Presentation Bharti Airtel Limited November 2013
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: Agenda
Agenda • Introduction to Bharti Airtel • Bharti Airtel Business Model • Bharti Airtel Wireless Operations • Bharti Airtel Africa • Overview of Other Businesses • Financial Overview • Key Highlights 2 of 34
Slide 4: Bharti Airtel – Who we are
Bharti Airtel – Who we are
Slide 5: Bharti Airtel
Bharti Airtel 1.85bn Addressable Population 4 Present in US$14.7bn 20 Revenue 3 Countries #1 Operator In India 1 #4 #4 Operator Operator In Africa 1 #3 in the World1 in-country wireless service operator in the world 2 Source: TRAI and Informa Telecoms and Media Notes: 1. As of March 31, 2013 2. Four
Slide 6: The "airtel" Brand
The “airtel” Brand • Vision: Become the most loved brand by 2015 • Multiplatform services in telecom, enterprise and digital television, unified under brand “airtel” Alive • Amongst the Top 100 of Most Valuable Global Brands List 1 • No. 1 service brand in India 2 • One of the top 10 brands in Afric
Slide 7: Global Telecom Company
Global Telecom Company B2C B2B Tower Mobile Telemedia Services Digital TV Airtel Business Infrastructure Services Services • Cellular mobile • Offers fixed • Pan India DTH • Services to large • Bharti Infratel services across telephony and operations enterprises and (BIL) owns 35,376 20 countries br
Slide 8: Scale and Profitability across Diversified Segments
Scale and Profitability across Diversified Segments • FY13 Revenues of $14.1 bn and EBITDA of $4.3 bn • Q2 FY14 Revenues of $ 3.4 bn and EBITDA of $1.1 bn • Bharti Airtel Africa contributed 32% of FY13 revenues FY13 Revenue: $14.1 bn 1 FY13 EBITDA: $4.3 bn 1 Telemedia Digital TV 4% Airtel Business 2
Slide 9: The Company…Bharti Airtel
The Company…Bharti Airtel No. of circles (India) Today: Countries 1 5 15 22 20 ‘ 1996 2001 2003 2004 2011 2012 & 2013 • Mobile services • IPO of • Becomes • Launched mobile • Expanded African operation to under the brand Bharti Airtel India’s largest services in Sri Lanka Rwanda name ‘Airtel’ throug
Slide 10: Strong Growth Trajectory Since IPO
Strong Growth Trajectory Since IPO FY2002 FY2013 Operations in 7 circles Operations in 20 Company Profile (In India) Countries Customer Base1 1.4m 271m Revenue (US$) 310m 14.7bn EBITDA (US$) 83m 4.6bn Cash Profit 2 (US$) 64m 3.8bn Market Cap 3 (US$) ~1.5bn 20.4bn Amongst the world’s leading telecom
Slide 11: Unique Business Model
Unique Business Model
Slide 12: Bharti Airtel: Challenging mindsets
Bharti Airtel: Challenging mindsets Challenging Text The Mindset Text Challenging The Model • Mobiles for ‘classes’ not for the ‘masses’ • Outsourcing non core • Post-paid customer is better activities than pre–paid customer • From competition to • High ARPU performance competitive collaboration thr
Slide 13: Created a Unique Business Model – "Minutes Factory"
Created a Unique Business Model – “Minutes Factory” • Improving affordability to gain positive • Focus on producing the elasticity is at the heart of our Minutes lowest cost minute whilst Factory model maintaining / growing margins Affordability • Drive affordability – more users – more usage Improv
Slide 14: Built Strategic Partnerships in Business Delivery Model
Built Strategic Partnerships in Business Delivery Model • Network management • Information technology outsourcing Nortel, Avaya, Cisco, Wipro, IBM Daksh, Mphasis, Hinduja TMT, Aegis BPO • Call centers / customer service Teleperformance, Firstsource > 1.4m retail outlets • Distribution Indus Towers;
Slide 15: Bharti Airtel: India Wireless Overview
Bharti Airtel: India Wireless Overview
Slide 16: Bharti Airtel: The Leading Indian Wireless Operator
Bharti Airtel: The Leading Indian Wireless Operator Wireless Subscriber Market Share 1 Wireless Revenue Market Share 2 Customer Market 22% 18% 15% 13% 12% 7% 7% 6% Share Others, 2.7% Tata Aircel, 5.0% Teleservices, 7.5% Bharti Airtel, 193 30.9% BSNL (incl 156 MTNL), 6.6% 127 116 102 RCOM, 7.6% 64 63
Slide 17: India Wireless – Significant Upside From 'Data'
India Wireless – Significant Upside From ‘Data’ Data as a percent of Mobile Revenues Bharti Airtel’s Non Voice Revenues as a % of across Emerging Markets Mobile Revenues 1 Q2 FY14 7.30% 9.20% Q1 FY14 9.90% 7.40% 60 Q4 FY13 10.90% 6.50% Q3 FY13 11.60% 5.70% 51 51 49 49 Q2 FY13 11.60% 5.20% 45 Q1 FY13
Slide 18: Start of the Data Revolution (3G + 4G)
Start of the Data Revolution (3G + 4G) Bharti Airtel’s 3G/4G Position 3G and 4G Update J&K • Allocated 3G and/or BWA licenses in 16 telecom Himachal Pradesh circles and for a total consideration of ~$3.5bn Delhi • Bharti Airtel acquired 100% of Qualcomm India Haryana Punjab (BWA venture), thereby ga
Slide 19: Venture into Africa
Venture into Africa
Slide 20: Transaction Rationale
Transaction Rationale Bharti Airtel Transaction Objectives Achievements Shareholding and Full Management Control Global Stature with focus on Emerging Markets Ability to use brand ‘Airtel’ Manageable Deal Size Significant Synergies Diversification of India Risk Avoiding Greenfield Strong Platform Re
Slide 21: Africa – Opportunity for Growth
Africa – Opportunity for Growth India Africa 1 Mobile Penetration ~71% ~56% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~437 ~143 per sub 2 ARPU (US$) 2 ~$3.1 ~$5.7 ARPM (US cents ¢) 2 0.7¢ 4.0¢ Africa presented
Slide 22: Africa Performance Indicators
Africa Performance Indicators Total Subscribers (mn) and Total Minutes (bn) Minutes of Usage per sub 144 143 66.4 138 134 70.0 63.7 64.2 30.0 61.7 123 58.7 60.0 27.8 25.0 26.2 26.0 50.0 23.6 23.4 20.0 40.0 15.0 30.0 10.0 20.0 10.0 5.0 0.0 0.0 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q2 FY13 Q3 FY13 Q
Slide 23: Other Businesses
Other Businesses
Slide 24: Telemedia Services
Telemedia Services • Pan-India presence of 87 cities • Operates in the entire broadband continuum - fixed line voice and high speed broadband across Homes and Office segments, broadband (via DSL), IPTV, internet leased line and MPLS services Revenue (US$m) EBITDA Margin (%) 42.4 43.1 45.0 42.5 42.5
Slide 25: Airtel Business
Airtel Business India’s leading and most trusted provider of ICT services Customer base across - enterprises, governments, carriers and small and medium business. Diverse portfolio of services - voice, data, video, network Revenue (US$m) integration, data centers, managed services, enterprise EBITDA
Slide 26: Digital TV Services
Digital TV Services • First Company in India which provides real integration of all the three screens viz. television, mobile and computer enabling our customers to record their favorite TV programs through mobile and web • Launched “Airtel Digital TV” service in October 2008 as fifth operator provi
Slide 27: Airtel Money
Airtel Money • Airtel Money, Airtel’s semi-closed wallet has witnessed phenomenal growth over the year • Key Performance Indicators (India) – Active subscribers: Increased by 169% Y-o- Y to 1.4 million as on Sept 30, 2013 – Transaction Value: Rs 6.5 billion during quarter ended Sept 30, 2013 Airtel
Slide 28: Tower Infrastructure
Tower Infrastructure 2.00 120,000 1.93 2.00 • Bharti Infratel is a leading tower infrastructure 1.84 Sharing Factor (x) 100,000 provider 82,476 1.80 80,000 Towers • Also holds a 42% stake in Indus Towers, 60,000 1.60 112,144 47,100 amongst the largest tower companies in the 40,000 1.40 world, operat
Slide 29: Financial Overview
Financial Overview
Slide 30: Robust Financials (Consolidated)
Robust Financials (Consolidated) 1 Total Revenues (US$bn) EBITDA (US$bn) and EBITDA margin 14.3 14.1 13.1 5 4.6 50% 41% 4.4 4.3 40% 40% 3.3 3.5 34% 32% 8.8 30% 8.0 30% 3 20% 10% 0 0% FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Cash Flow from Operations (US$bn) Enterprise Value / EBITDA 4.0 4.1
Slide 31: Leadership
Leadership
Slide 32: Leadership in Business
Leadership in Business Ranked #71 in top 100 list of Sunil Bharti Mittal, Bharti Airtel was placed among the top Chairman 200 brands globally in the annual Global Brands by Millward Brown Optimer, published in Financial • Honorary Degree awarded by survey undertaken by Brand Finance, Times , with an
Slide 33: Highest Standards of Corporate Governance
Highest Standards of Corporate Governance Credit Rating and Information Services of India (“CRISIL”) has assigned its Governance and Value Creation rating “CRISIL GVC Level 1” to the corporate governance and value creation practices of Bharti Airtel Quarterly financials audited on IFRS, IGAAP basis
Slide 34: Transparency International Rankings
Transparency International Rankings Bharti Airtel is ranked No. 4 for “Transparency in Corporate Reporting” among top 100 emerging market MNCs awarded by “Transparency International” A snapshot of the transparency score awarded to Airtel is also given below Parameter Airtel Score Average Score Repor
Slide 35: Investment Highlights
Investment Highlights
Slide 36: Investment Highlights
Investment Highlights Leading Emerging Growth Strategy: Markets Telco Experienced Mobile Data, (Asia and Africa) management team Increased Penetration and New Services Innovative business Focused on Free model driving value Cash Flow Generation and efficiency from scale Present across Strong financi
Slide 37: Management Presentation
Management Presentation Bharti Airtel Limited November 2013
Bharti Airtel — Investor Presentation (November 2013) on 6ix