Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (June 2018)
26 slides from Bharti Airtel's investor presentation, June 2018
Slide 1: Bharti Airtel Investor Presentation June 2018
Bharti Airtel Investor Presentation June 2018
Slide 2: Bharti Airtel: Who Are We
Bharti Airtel: Who Are We Presence in Highest standards of #1 Corporate Third 16 operator in India2 Governance – ranked largest telecom countries1 serving and operator in the #2 #1 by world around mn 414 Transparency customers operator in Africa3 International Our Guiding Strategy Customer Performan
Slide 3: Bharti Airtel: Investment Rationale
Bharti Airtel: Investment Rationale Presence in underpenetrated markets of India and Africa with large 1 residual opportunity 2 Leading operator with scale and diversified businesses across markets Bulk investments already in place; best in class spectrum bank in 3 markets of operations 4 Demonstrat
Slide 4: India & Africa - Mobile Market
India & Africa - Mobile Market Second-fastest1 growing economic zone in the nd 2 largest telecom world market in the world 420 Million2 mobile nd 2 largest smartphone subscribers in 2016. Expected market in the world to grow to 532 Million by nd 2 highest internet users 2020. in the world
Slide 5: Opportunity in Indian Telecom
Opportunity in Indian Telecom WIRELESS WIRELESS DATA WIRED BROADBAND 1.3 bn population ~30.37%2 Mobile 250mn households Broadband Penetration ~0.7 bn unique wireless < 5% connected customers Mobile data3 traffic to grow 7-fold from Household disposable Rural Penetration1 income rising 2016 to 2021 ~
Slide 6: Opportunity in African Telecom
Opportunity in African Telecom SMARTPHONE 2 3 WIRELESS MOBILE BANKING DATA TRAFFIC 1 PENETRATION Banking Penetration low Mobile data traffic to 1.2 Bn Population Smartphone penetration to grow by a CAGR of 66% (Airtel Africa covers reach 50% by 2020 over the period of 547 Mn Population) Mobile money
Slide 7: Leader in India Revenue Market Share
Leader in India Revenue Market Share1 36% ~$22 Bn Indian Telecom Industry* 30.9% 1.183 Bn total wireless subscribers in India 20.3% 16.6% 15.4% 6.3% 3.7% 3.7% 1.4% 1.7% Airtel Tata Teleservices Telenor Vodafone Idea Cellular Reliance Jio BSNL + MTNL Aircel RCom Rank4 No. of Circles 1 13 Airtel’s str
Slide 8: And Customer Market Share..
And Customer Market Share.. 43.9% 28.9% Value players are fast losing 22.7% 21.9% 18.4% 18.8% subscriber market 17.8% share to incumbents 15.0% 15.8% 0.0% Mar-14 Mar-17 Mar-18 Airtel Idea Voda Jio Others Airtel,Tata Tele Services & Telenor comprise 32% of total industry subscriber base as of March’1
Slide 9: Leading presence in Africa
Leading presence in Africa Market size Key Telecom Country Our Position Airtel RMS % EBITDA range Key competitors (mn $) operators Zambia 480 3 1 >40% >40% MTN Niger 330 4 1 >40% >40% Orange Malawi 225 4 1 >40% >40% TNM Madagascar 195 3 1 30-40% 20-30% Orange, Telma Nigeria 4,710 6 2 20-30% 30-40% M
Slide 10: Diversified portfolio
Diversified portfolio Revenue Split by segments1 EBITDA Split by segments Africa Africa 23.1% 24.3% Wireless India 39.9% South Asia Wireless 0.5% India South Asia 48.2% 0.1% Towers 7.8% Towers 11.1% Airtel Business 13.1% Airtel Homes Digital Homes Business Digital 4.1% Services 2.8% 15.5% Services 4
Slide 11: Investing for growth – Spectrum Holding
Investing for growth – Spectrum Holding Band (Avg holding Airtel Competitor 1 Competitor 2 across 22 circles) 800/900Mhz Paired 7.4 6.2 9.6 1800 Mhz Paired 16.1 17.9 7.4 2100 Mhz Paired 7.7 8.9 3.0 2300/2500 Mhz Unpaired 25.9 18.2 27.3 Spectrum Industry Spectrum ex- Airtel’s SMS1 excl. Band spectrum
Slide 12: Aggressive Network Build
Aggressive Network Build 154.1 162.0 165.7 2.1 1.6 Total 144.7 tower 105.5 116.7 count 1.1 (‘000) Q4'16 Q4'17 Q4'18 Total Mobile Towers Mobile Broadband Towers Mobile Broadband Base Stations per Mobile Broadband Tower National long distance fiber –over 237,893 RKms1 Global sub-sea cable network of o
Slide 13: Africa: Invested for Growth
Africa: Invested for Growth Abundant spectrum across operations Mobile broadband towers (‘000) – Africa Frequency Band (Mhz) 18,959 19,731 1.46 OPCO 800 900 1800 2100 2600 2300 Total Zambia 10 20 20 50 12,663 13,725 Total Niger 10.2 10 15 35.2 Malawi 11.6 19.8 10 41.4 1.03 tower Madagascar 11.2 24.4
Slide 14: Strategy India
STRATEGY INDIA
Slide 15: Pillars of India Strategy
PILLARS OF INDIA STRATEGY Win the 4G Win with Build New Win with Win with game brilliant Revenues War on People decisively Network Waste Experience Bharti Airtel Limited 15
Slide 16: Indian telecom market dynamics is changing
Indian telecom market dynamics is changing GSM data and voice consumption is increasing1 Explosion of Data – Spurt in 1,610 1,955 1,256 volumes and smartphone shipments 884 1,006 405 428 437 495 381 377 366 SIM Consolidation 360 134 143 236 Mar'16 Jun'16 Sept'16 Dec'16 Mar'17 June'17 Sep'17 Dec'
Slide 17: Win the 4G Game decisively
Win the 4G Game decisively Win the primary 4G Mobile Broadband Customer Base SIM Slot As a % of Total 15.6% 17.4% 19.6% 21.4% 25.2% Customer Base Drive upgrades 76,578 through device 62,149 partnerships and 55,218 offers 48,911 42,716 Lock-in customers through postpaid and loyalty programs Q4'17 Q1'
Slide 18: Brilliant Network Experience
Brilliant Network Experience Capex - India (Rs. Mn) 239,682 240,000 151,655 169,231 118,069 Future proof network across access, transport and core layers. FY15 FY16 FY17 FY18 FY19 E Average 4G data speeds by Operator in India (Mbps) 9.05 8.02 Airtel rated as India’s fastest mobile 7.52 7.34 network
Slide 19: Build New Revenues
Build New Revenues Wynk and Airtel TV Customers (Mn) Build the largest Music Rapidly grow homes and TV service in India. through broadband and 92 DTH expansion 36 Accelerate SME through 23 Launch enterprise GTM re-invention and 1 platforms to drive new Leverage Customer 360, revenues. training and t
Slide 20: War on Waste
War on Waste Opex growth1 - YoY Q4'17 Q4'18 -4.5% -7.1% Drive down cost through end to end process re-engineering and digitization Mobile broadband BTS per mobile broadband tower 2.1 1.6 Q4'17 Q4'18 1. Excludes Access costs, COGS Bharti Airtel Limited 20
Slide 21: Strategy Africa
STRATEGY AFRICA
Slide 22: Pillars of Africa Strategy
PILLARS OF AFRICA STRATEGY Win with Win with Win with Win with Win with more Mobile Network right cost People customers Money and design Data Growth Key Enablers Bharti Airtel Limited 22
Slide 23: Airtel Africa on solid footing
Airtel Africa on solid footing Gross Revenues (USD Mn) EBITDA (USD Mn) and Margin (%) 791 783 33.0% 35.5% 35.9% 28.8% 754 25.5% 248 278 284 715 708 204 183 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 EBIT (USD Mn) PBT (USD Mn) 169 177 145 130 127 97 79 53 54 24 Q4'17 Q1'18 Q2'18 Q3'1
Slide 24: While maintaining highest standards of Corporate Governance
While maintaining highest standards of Corporate Governance Ranked #1 by Transparency International for highest standards of 1 Corporate Governance Ranked amongst the “Forbes’ list of 100 most innovative companies in 2 the world” for 2017. Won the prestigious “Golden Peacock Award for Corporate 3 Su
Slide 25: Airtel: Financial flexibility & Balance Sheet Focus
Airtel : Financial flexibility & Balance Sheet Focus Focus on deleveraging: Actions undertaken since 2012 Infratel IPO and Allotment of 5% Sale of 2 Opcos to DTH stake sale to Africa tower sales subsequent stake stake of Airtel to Orange Warburg Pincus selldowns QFE Diversified debt profile Leverage
Slide 26: Thank You
THANK YOU