Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (September 2018)
30 slides from Bharti Airtel's investor presentation, September 2018
Slide 1: #) eS en)
#) eS en) . BRILLIANTLY airtel | winbecisivety.
Slide 2: Agenda
Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy
Slide 3: Who we are
Who we are #1 #2 Telecom operator in India Telecom operator in Africa #3 16 Telecom operator globally* Countries presence globally *in terms of subscriber base
Slide 4: Our Size
Our Size $13.0 B $4.7 B $0.6 B Global revenues in FY 2017-18 EBITDA in FY 2017-18 Free Cash Flow in FY 2017-18 414 M+ 115 M+ 1.8 B+ Customers Wireless data customers Addressable population Customer data as on Mar’18 exit
Slide 5: Our Portfolio: India
Our Portfolio: India Mobile Services Airtel Business Homes #1 Private Broadband Operator 340 M+ Customers #1 Enterprise Telco in India 2 M+ customers Digital TV Tower Infrastructure Payments Bank Among world’s largest passive 14M+ customers 30 M Banking Customer infrastructure providers
Slide 6: Our Digital Services
Our Digital Services Wynk Music Airtel TV myAirtel 100 M+ Customers 60 M+ Customers 60 M+ Customers One Home Homes Platform Device Platform Payments Platform One Billing Layer on all Services Integration of Device Players, Lenders & 1 Mn Retailers on ‘Mitra’ app Logistics Partners
Slide 7: Agenda
Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy
Slide 8: 1a. Obsession with Network Experience: Spectrum
1a. Obsession with Network Experience : Spectrum Airtel’s Spectrum Share of Liberalized Spectrum Aircel Band Footprint Holding per Circle BSNL 3.2% 9.4% RCom Airtel 2 Low Band 16 Circles 5 – 10 Mhz 7.1% 28.8% 1 Mid Band Pan India 15 – 25 Mhz Jio 20.8% 30.8% High Band Pan India 20 – 30 Mhz Voda + Ide
Slide 9: 1b. Obsession with Network Experience
1b. Obsession with Network Experience Largest Ever Deployment Throughput (PBs/ Day) State of the Art Tools Geo-Spatial 27 Analysis 8 Self-Optimizing 2 Network 1,90,000+ Sites Aug'16 Aug'17 Aug'18 In last 2 years Digitization – Partnered with SK Telecom
Slide 10: 2. Obsession with Customer Experience
2. Obsession with Customer Experience Decision Tree Platform ‘Next Gen’ Digital Stores Call-center Calls per customer Open Network 0.23 0.20 0.15 0.11 0.06 FY'14 FY'15 FY'16 FY'17 FY'18
Slide 11: 3. Scientific Sales & Marketing
3. Scientific Sales & Marketing Micromarketing 707 Districts 1.2 M Retail Outlets 340M+ Customers Focused Customer Acquisition & Retention GOAL Geo Spatial Analytics REVENUE
Slide 12: 4. Obsession with Waste Reduction
4. Obsession with Waste Reduction Opex Growth YoY 8.0% 6.9% 6.0% 5.0% 4.0% 3.1% 2.0% • Smart Procurement 0.0% FY'15 FY'16 FY'17 FY'18 • Frugal cost culture -2.0% • Continuous process redesign -4.0% -3.2%
Slide 13: 5. Capacity to play multiple games
5. Capacity to play multiple games Dedicated Teams for the Core Preparing for the Future Design & Execution Machines Movies, Music, myAirtel Circles One Home Open Platforms Center New Products Excellence in Partnerships
Slide 14: Agenda
Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy
Slide 15: Business Environment Remains Challenging
Business Environment Remains Challenging • Pricing ARPU Erosion by 40% • Data Usage Traffic Explosion by 8 times • Network Unprecedented Investments and Roll-out
Slide 16: Competition: Structure of the Industry
Competition : Structure of the Industry “Unsustainable Market Structure” “Consolidated Market Structure” Operators: 8 14 8 4 9.1% 22 Others* 34 29 22.4% 20 16 14 34.7% 24 22 24 31 31 34 33.8% 2011 2014 2017 Today (Q1'19) * 4 Operators exited in FY18 – Telenor and Tata (acquired by Airtel). Reliance
Slide 17: Customers: A new customer segment has emerged
Customers: A new customer segment has emerged Earlier Now Role of Smartphone Voice, Some Data Gateway to Entertainment Pricing Top ups, Vouchers Bundles SIMs Dual Single Consolidated KPI Traffic 4G net adds 2G Acquisition Upgradation
Slide 18: Explosive 4G Growth
Explosive 4G Growth # 4G Phones (Mn) Avg. Time Spent (Mins/Day) 260 Series 1 280 Series 1 240 240 220 160 200 190 70 180 180 160 Jun'16 Jun'17 Jun'18 Jun'16 Jun'17 Jun'18 More than a Phone Data usage per month (GBs) Voice Mins per month 750 700 8.8 Series 1 650 550 500 3.2 450 400 1.0 350 Jun'16 Jun
Slide 19: Market Evolution
Market Evolution Shape of Industry Two markets exist simultaneously: For now Non-Data Customers Data Customers Today’s Market 4G Market 2016-17 75% 25% Customers (Mn) 650 350 2017-18 60% 40% ARPU (Rs.) 65 130 2018-19 P 45% 55% GB/ User/ Month 0.7 GB 9 GB 2020-21 P 20% 80% Rev. Growth -6% 12%
Slide 20: With Pricing Stability, this Market will Explode
With Pricing Stability, this Market will Explode Massive Opportunity Massive Growth with Price Repair Pricing No Change Repaired 4G ARPU (Rs) 130 195
Slide 21: Homes Opportunity
Homes Opportunity India is Booming Connected Homes Households with Income > Rs 5L p.a. Home Broadband Pay TV 60 Mn 18 Mn 150 Mn 2 Mn 14 Mn 2018 Homes Opportunity is Huge
Slide 22: B2B Opportunity
B2B Opportunity Growth% Top Sub 10% 500 10%+ Next 1500 Small & Medium Enterprises Very High Small Office / Home Office Use occasions exploding : Connectivity Audio conferencing Video Conferencing Data Centers
Slide 23: Agenda
Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy
Slide 24: Airtel GPS
Airtel GPS Win 4G Win with Brilliant Build New Win with a War Win with People decisively Network Revenues on Waste Experience Win with a Digital Airtel
Slide 25: How will we win in this market: Win 4G Decisively
How will we win in this market Win 4G Decisively Channels Alliances Grow Share of Devices Drive Upgrades Platform Wrest Back Primary Slot Lock-in Customers Brilliant Micro-marketing
Slide 26: How will we win: Win with Brilliant Network Experience
How will we win in this market Win with Brilliant Network Experience One More Year of High Capex (Rs Cr) 23,980 24,000 Accelerate Capacity • More Bits per Hz • Extreme scale Flat IP FY'18 FY'19 E Ubiquitous Coverage Dramatically Improved Quality • 4G Everywhere • Network Digitization • Densify Fiber
Slide 27: How will we win: Build New Revenues
How will we win in this market Build New Revenues Accelerate Homes Grow SME and go Deep Grow Payments Bank, Video, Music Accelerate Data Centers, IOT, Security
Slide 28: How will we win: The Open Telco
How will we win in this market The Open Telco : Attract Multiple Partners to help build new revenues Open Platforms & Alliances Platforms Alliances (Examples) Services Device Mobile Platform Hardware Fixed Customer Internet 360 TV Home Products Services Office Software Platform 3P SW & HW Payments U
Slide 29: How will we win: Win with People
How will we win in this market Win with People New Organization – Design & Delivery High People Engagement Scores Design Products, solutions Activation Demand Generation – Top 20k Outlets Sales Deliver superior distribution everywhere Way of Working Drive Cross Functional Team Work Build Airtel of t
Slide 30: Summary
Summary • We are very well positioned • A 3+1 player industry is a great outcome • The long term opportunity is massive • Going forward, our vision is to be an Open Telco
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