Indus Towers Limited · NSE:INDUSTOWER
Indus Towers — Bharti Infratel — Shareholder Meeting (July 2019)
34 slides from Indus Towers's shareholder meeting presentation, July 2019
Slide 1: Annual General Meeting FY18-19
Annual General Meeting FY18-19 July 2019 Building and Sharing Vital Infrastructure
Slide 2: Contents
Contents • About us • Telecom Industry Landscape • Bharti Infratel – Performance • Merger Update • Way Forward 2 of 34
Slide 3: About Us
Y . Bharti Infratel Limited About Us 3 of 34
Slide 4: Bharti Infratel – Who We Are?
Bharti Infratel – Who We Are? A Leading Tower Infrastructure Operator Pan India Presence across all 22 Telecommunications Circles Indus Towers – JV between Bharti Infratel, Vodafone Group and Vodafone Idea Limited Relationships with all Operators and 2 leading operators as Anchor Customers Marquee p
Slide 5: Our Vision
Our Vision ‘To be the best and most innovative passive communications infrastructure provider globally’ Known for Highest uptime Speed & Quality of deployment Cost & Energy efficiencies Environment friendliness 5 of 34
Slide 6: A Leading Global Tower Infrastructure Operator
A Leading Global Tower Infrastructure Operator Key Indian Tower Companies(1) Key Global Listed Tower Companies(1) 1.88(2) NA 1.0 1.0 NA NA 1.6 NA 2.1 1.8 1.6 1.7 Sharing Factor 2000 1800 180 1968 160 140 Towers (‘000s) 72 120 100 Bharti Infratel + 42% equity interest in Indus 169 80 60 92 40 75 69 2
Slide 7: Telecom Industry Landscape
Telecom Industry Landscape 7 of 34
Slide 8: Regulatory: National Digital Communications Policy
Regulatory : National Digital Communications Policy Release of National Digital Communications Policy 2018 Envisioned to transition India to a digitally empowered economy and society Establishment of a ubiquitous, resilient and affordable Digital Communications Infrastructure and Services. Missi
Slide 9: Impact of NDCP on Tower Companies
Impact of NDCP on Tower Companies 60% towers fiberization Cabling (IBS) for Accelerated rollout of buildings compulsory fiber in government through NBC premises Incentives and Impetus to 5G exemptions for tower Key takeaways deployment construction Scope enhancement Common service of IP1s to include
Slide 10: Customer: Transformation in telecom landscape
Customer : Transformation in telecom landscape… Top 3 operators dominate the Telecom space Telecom industry consolidated into a three private player market – Bharti Airtel, Voda-Idea and Reliance Jio One nation wide Government operator in the form of BSNL and MTNL Stronger operators with abili
Slide 11: Leading to consolidation in tower market
….Leading to consolidation in tower market Key Players OpCo owned towers / Captive Towers Other players Accelerated consolidation in tower market as well 11 of 34
Slide 12: Bharti Infratel: Performance
Bharti Infratel : Performance 12 of 34
Slide 13: Our Journey: FY10 – FY18
Our Journey : FY10 – FY18 Stable tower growth… 88,808 90,646 91,451 82,083 83,368 85,892 78,442 79,064 73,921 Towers 2.7% CAGR FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 …coupled with an increase in co-locations 1.69 1.81 1.90 1.91 2.01 2.12 2.19 2.32 2.25 Co-locations 210,606 205,596 195
Slide 14: Strong financial performance
Strong financial performance Revenue 144,897 (INR Mn) 123,313 134,237 108,267 116,683 102,720 70,074 84,988 94,521 9.5% CAGR FY10* FY11* FY12* FY13* FY14* FY15* FY16 FY17 FY18 64,272 (INR Mn) 59,418 EBITDA EBITDA Margin 50,108 54,478 44,118 31,085 35,342 38,103 13.2% 23,905 CAGR 34.1% 36.6% 37.4% 37
Slide 15: Return ratios
Return ratios +30.0% 34.0% +13.4% 15.4% 4.0% 2.0% ROCE ROE (post Tax) FY 10 FY 18 Driving capital efficiency and maximizing return to shareholders 15 of 34
Slide 16: Performance at a Glance: FY 19
Performance at a Glance: FY 19 (Proportionate Consolidation) Operating Indicators : 31 March 2019 92,277 172,724 1.87 Total Towers up 1%Y-o-Y Total Co-locations down 16% Y-o-Y Closing sharing factor Financial Indicators UoM FY 18 FY 19 Change Y-o-Y Revenue Rs. Mn 144,897 145,823 1% EBITDA Rs. Mn 64,
Slide 17: Focus on Delivering Shareholder Value
Focus on Delivering Shareholder Value INR 171 Bn of profit distributed during the period FY13-19 Dividend payout has exceeded 100% of PAT consistently Note: FY refers to fiscal year ending March 31 Profit figures for FY’13 is as per IGAAP and from FY14 onwards are as per IND AS *Profit distribution
Slide 18: Leading the way in Smart City projects
Leading the way in Smart City projects Development of Smart Cities key for ‘Digital India’ Program Government has announced the creation of 100 Smart Cities Communication backbone is key to a Smart City Entails setting up of telecom infrastructure which will include towers, micro sites and fiber
Slide 19: Our Green Initiatives - P7 Energy Program
Our Green Initiatives - P7 Energy Program Institutionalized „Green Towers P7‟ program, aimed at minimizing dependency on diesel consumption and thereby, reducing the carbon footprint Program initiated originally with seven innovative ideas deploying cleaner energy technologies; and kept growing
Slide 20: CSR at Infratel
CSR at Infratel Our CSR Vision: “To build an empowered society through education, community development and environment sustainability” Our CSR Policy focuses on promoting: 1 Education / Skill / Rural Development Satya Bharti School Program for free & quality education for 46,100+ marginalized chi
Slide 21: Disaster Management
Disaster Management Site and network restoration during extreme weather condition Picture showing site restoration Picture showing aftermath of Kerala flood disaster activity in JK Rescue and rehabilitation enabled by robust planning and preparedness *Indus Towers is a JV between Bharti Infratel, Vo
Slide 22: Key Recognitions
Key Recognitions Mr. Akhil Gupta, Executive Chairman, Bharti Infratel and Vice Chairman of Bharti Group has been bestowed with the Lifetime Contribution Award at the Voice & Data Awards (2018). Bharti Infratel has been awarded for the category Innovation in Telecom Infrastructure at the 9th edition
Slide 23: Proposed Merger with Indus Towers
Proposed Merger with Indus Towers 23 of 34
Slide 24: Merger with Indus Towers
Merger with Indus Towers Merged & Entity Via All Stock Transaction Or Via Part Stock Part Cash Transaction Note: 1. The merged entity will fully own the respective businesses of Bharti Infratel and Indus Towers, will change its name to Indus Towers Limited and will continue to be listed on the India
Slide 25: Rationale for the Transaction
Rationale for the Transaction Simplified shareholding structure with no single operator holding majority in the merged entity Shares in a listed entity provides exit opportunity to shareholder operators of Indus Operational synergies in the form of capex/opex envisioned Efficient capital structure –
Slide 26: Current Shareholding Structure
Current Shareholding Structure Vodafone Vodafone Public(1) Providence Group Idea 46.49% 42% 4.85% 11.15% Bharti Infratel Indus Towers 53.51%(4) 42% Bharti Airtel 92,277 Towers(2) 123,546 Towers(2) #2 Tower Company(3) #1 Tower Company(3) Together with Indus Towers, Bharti Infratel is a leading tower
Slide 27: Indicative Post Merger Shareholding Structures
Indicative Post Merger Shareholding Structures All Stock Transaction Bharti Airtel Public Providence Vodafone Idea Vodafone Group 33.8% 29.3% 3.1% 7.1% 26.7% Indus 163,934 Towers Assumption: (i) Idea group elects to receive shares for their 11.15% (ii) Providence elects to receive shares for their 4
Slide 28: Indicative Post Merger Shareholding Structures
Indicative Post Merger Shareholding Structures Bharti Airtel Public Providence Vodafone Group 37.2% 32.3% 1.1% 29.4% Indus 163,934 Towers Assumption: (i) Idea group sells it‟s 11.15% shares for cash (ii) Providence sells it‟s 3.35% shares for cash • The final number of shares issued will be subject
Slide 29: Merger Timelines
Merger Timelines April12018: Merger Announcement Jun22018 Approval received from Competition Commission of India (CCI) Jul 32018 No adverse objection received from SEBI through- Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) Feb42019 NCLT convened Shareholders‟ and creditors‟ meeting
Slide 30: Way Forward
S Y . Bharti Infratel Limited Way Forward 30 of 34
Slide 31: Our strategy remains..
Our strategy remains.. Promote Tower Sharing Capitalize on opportunities of Data Organic Growth and Acquisition growth, Digital India, Smart City Opportunities Initiatives of government Achieving Cost Efficiencies Across Increasing Revenue and Capital Tower Portfolios Productivity 31 of 34
Slide 32: Annual General Meeting FY18-19
Annual General Meeting FY18-19 July 2019 Building and Sharing Vital Infrastructure
Slide 33: Glossary
Glossary Abbreviations Full forms / definitions CSR Corporate Social Responsibility EBITDA Earnings Before Interest, Tax, Depreciation & Amortization FY Fiscal Year GDP Gross Domestic Product IBS In-Building Solutions IND AS Indian Accounting Standard JV Joint Venture KW Kilo Watt MW Mega Watt NBC N
Slide 34: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by Bharti Infratel Limited (the “Company”) for use in presentations by the Company