Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (March 2012)
27 slides from Bharti Airtel's investor presentation, March 2012
Slide 1: Investor Presentation
Investor Presentation Bharti airtel limited March 2012
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: The Company...Bharti airtel – An Integrated Telco
The Company...Bharti airtel – An Integrated Telco Wireless Services Enterprise Services 9 2G 9 Carriers 9 Corporates 9 3G 9 Rural Market Passive Infrastructure Services 9 Infratel Telemedia Services 9 Indus 9 Fixed Line 9 Broadband B db d DTH 9 IPTV 9 Pay per view / HD 9 Interactive Servic
Slide 4: The Company…Bharti airtel
The Company…Bharti airtel No. of circles (India) Today Countries 1 5 15 22 19 ‘ 1996 2001 2003 2004 2010 Fully integrated telecom player offering end to end solutions and entering new geographies
Slide 5: Growth trajectory reflected in the numbers
Growth trajectory reflected in the numbers 1996 2011 Single Circle Operator Company Profile Largest integrated private telecom operator < 25k Customers ~ 221 mn ~ USD 17 mn R Revenue ~ USD 13 bn b ~ USD 2.5 mn EBITDA ~ USD 4 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Market Capitalization ~
Slide 6: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST in ‐country country wireless operator in the FY 11 (in Mn) world (1) Customers 220.9 LARGEST private INTEGRATED telecom company in Revenue $ 13,319 India EBITDA $ 4,472 5th LARGEST Mobile telecom ope
Slide 7: Latest Results – 3Q'12
Latest Results – 3Q’12 Key operating and financial metrics Continued Strong Performance Q3 FY 12* Y‐on‐Y Wireless CMS 19.7% Customers 243.3 mn 17% Wireless RMS 30.0% Total MOU carried in Qtr 253 bn Revenue $ 3,649 mn 17% Balance sheet strength: EBITDA $ 1,177 mn 19% Assets $ 31.9 bn Cash P
Slide 8: Performance dashboard - line graph
Performance dashboard - 3 line graph 190,000 80.0% 70.8% 184,767 69.9% 68.6% 180 000 180,000 70 0% 70.0% 71.2% 70.9% 170,000 172,698 60.0% 162,930 169,749 157 721 157,721 160,000 50.0% 46.9% 45.4% 150,000 44.8% 44.6% 44.5% 40.0% 140,000 30.0% Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Total Revenue (Rs
Slide 9: Wireless Services
Wireless Services
Slide 10: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.903.7 mn Population 1 2 billion 1.2 → Relatively large youth population Wireless Penetration c.74.8% Telecom penetration c.77.6% Operational metrics per month (~936.1 mn telecom subs) Usage per user 345 min Sub number should
Slide 11: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Jan 9.9 Mn… greater than over last 3 S-curve triggered months average run rate of 6.7 Mn Closing Subs Net Adds 90% 900 25 80% 800 20 70% % 700 60% 600 15 50% 500 400 40% 10 300 30% 200 20% 5 100 10% - - 0% F eb-06 J un-06 O c t- 0 6 F eb-07 J un-07
Slide 12: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer C stomer Market Share – CMS (%) 25% 23% 200 177 21% 20.2% 180 19.6% 156 151 153 19% 160 149 16.7% 16.5% 17.0% 140 129 127 17% 16.7% 16.4% (mn) 120 108 15% 94 95 12.2% 100 84 84 86 82 13% 12.3% 12.0% 80 59 10.9% 11.2% 11% 60 9.3% 9 1% 9.1
Slide 13: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 20.3% 20.0% 19.9% 19.8% 19.8% 102% 180 22% 98.2% 98.1% 97.3% 98% 96.2% 18% 93.7% 94% 120 90% 172.8 175.7 14% 162.2 169.2 152.5 96.2% 96.3% 96.3% 96.3% 96.3% 86% 60 10% 82% 78% 0 6% Q311 Q411 Q112 Q212 Q312 Q311 Q41
Slide 14: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size Changing face of growth (>$ 12Bn) through M‐Com, M‐ Revenue Market Share entertainment & 3G Cost Net Adds Improving cost efficiencies Non financial Maximizing Driv
Slide 15: Telemedia Services
Telemedia Services
Slide 16: A Snapshot
A Snapshot Largest private operator having presence in the voice , broadband , IPTV and data. Focus on SMB segment & Broadband at Homes Key Performance Indicators 1. Voice (wire‐line) and Data (DSL) Presence in 87 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises
Slide 17: Enterprise Services
E Enterprise i Services S i
Slide 18: A Snapshot
A Snapshot Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers Corporates: Single point of contact for all telecommunication needs for Top 2500 corporate customers, providing p g ffull suite off voice, data, and managed g communications solutions
Slide 19: Emerging Growth Engines
Emerging Growth Engines Passive Infra Africa
Slide 20: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue EBITDA 509 38.6 37.0 37.7 37.5 37.3 510 490 493 200 486 192 482 189 480 183 182 180 180 450 160 420 390 140 360 120 Q311 Q411 Q112 Q212 Q312 100 Q311 Q411 Q112 Q212 Q312 Focus on tenancy enhancement…driving Revenue & Profitability The above nos for Reven
Slide 21: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 1.87 1.89 1.91 1.83 34,000 1.90 109,000 1.80 2.00 1.79 1.81 1.90 1.80 107,000 1.77 1.73 1.80 105,000 1.68 1.70 1.70 33,000 103,000 108,586 108,922 108,998 109,101 1.60 107,789 1.60 1.50
Slide 22: Transaction Rationale
Transaction Rationale 9 Shareholding and 100% Cash Transaction 9 Management Control Focus on Core 9Brand – ‘Airtel’ Airtel Global Middle East 9 Stature Operators Clean / Emerging Market 9 certainty Characteristics of transaction Strong Platform St Pl tf for Future Expansion Low Competitive 9Manageab
Slide 23: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 77% 40% Average Number of 10‐12 3‐5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~419 419 ~125 125 ARPU (US$) ~$3.7 ~$7.1 ARPM (US cents ¢) 0.9¢ 5.7¢ A d therefore And th
Slide 24: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 50.9 Mn Performance Indicators (CY 2011): Revenue: $ 2,878 Mn EBITDA: $ 6,30 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 125 Minutes →one o e of thee lowest o es ARPU: ~ US$ 7.1 Rate per minute: ~ US¢ 5.7
Slide 25: Recent Honors
Recent Honors
Slide 26: Bharti airtel – Leadership in business, Recent Honours
Bharti airtel – Leadership in business Recent Honours Economic Times Telecom Awards 2011 9 Innovative Product Value Added Service 9 Customer Experience Enhancement Frost & Sullivan 2011 Asia Pacific ICT Awards 9 Enterprise Telecom Service Provider of the Year 9 Wholesale Data Service Provider of
Slide 27: thank you
thank you i, airtel