Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (November 2014)
40 slides from Bharti Airtel's investor presentation, November 2014
Slide 1: Bharti Airtel Investor Presentation: Nov, 2014
Bharti Airtel Investor Presentation: Nov, 2014
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 India Wireless Operations • Bharti Airtel Africa • Overview of Other Businesses • Financial Overview • Outstanding Leadership • Key Highlights 3
Slide 4: Bharti Airtel: Who We Are
airtel BHARTI AIRTEL: WHO WE ARE
Slide 5: Who We Are
WHO WE ARE 1998 2004 2008 2010 2010 2011 2013 2014 Pan Acquired First Launch First India Zain; operator direct to New 3G Crossed launched footprint; Present to home brand services 300 million in Delhi India’s in over launch services launch launched customers and HP largest 20 4G in (DTH) telco count
Slide 6: Bharti Airtel
Bharti Airtel 1.85bn Addressable Population 4 Present in US$14.2bn 20 Countries Revenue 3 #1 Operator In India 1 #2 Operator #4 Operator In Africa 5 in the World 1 #3 in-country wireless service operator in the world 2 Source: TRAI and Informa Telecoms and Media Notes: 1. As of June 30, 2014 2. Base
Slide 7: Global Telecom Company with a Diversified Portfolio
Global Telecom Company with a Diversified Portfolio Mobile Services • Wireless mobile services across 20 countries • Market leader in India both in terms of subscribers and revenue • 290.8 mn1 wireless subscribers globally Airtel Business Telemedia Services • Services to large enterprises • Fixed te
Slide 8: Scale and Profitability across Diversified Segments
Scale and Profitability across Diversified Segments • FY14 Revenues of $14.2 bn and EBITDA of $4.6 bn • Q2 FY15 Revenues of $3.8 bn and EBITDA of $1.3 bn • International Operations contributed 31% of FY14 revenues FY14 Revenue: $14.2 bn 1 FY14 EBITDA: $4.6 bn 1 Telemedia India International Airtel A
Slide 9: Unique Business Model
airtel UNIQUE BUSINESS MODEL
Slide 10: Bharti Airtel: Challenging mindsets
Bharti Airtel: Challenging mindsets Challenging The Mindset Challenging The Model Text Text • Mobiles for ‘classes’ not for Outsourcing non core activities the ‘masses’ Network Management Nortel, Avaya, Cisco, Wipro, IBM Daksh, • Post-paid customer is Mphasis, Hinduja TMT, Aegis BPO Call Centre Mana
Slide 11: Created a Unique Business Model – Minutes Factory
Created a Unique Business Model – “Minutes Factory” • Improving affordability to gain positive elasticity • Focus on producing the is at the heart of our Minutes Factory model lowest cost minute whilst maintaining / growing Affordability margins • Drive affordability Improved Positive – more users P
Slide 12: GPS Pillars
GPS Pillars 1 2 3 4 5 Go to Win with War on Win with Win with Market Data valuable waste people Excellence customers 12
Slide 13: Go To Market Excellence
Go To Market Excellence India Africa 75.0 6.8 220.0 211.8 3.4 71.4 193.5 70.0 6.6 6.6 66.4 180.0 3.2 3.2 65.0 6.4 3.1 60.0 140.0 3.0 6.2 55.0 6.1 100.0 2.8 50.0 6.0 Q2 '14 Q2 '15 Q2 '14 Q2 '15 Customer Base (mn) Monthly Churn (%) Customer Base (mn) Monthly Churn (%) Airtel has the lowest Africa Chur
Slide 14: GPS Pillars
GPS Pillars • Win with Data - One Touch Internet - Airtel Zambia – first operator in the world to launch internet.org in partnership with Facebook • Win with Valuable Customers - Postpaid Myplan for customers and enterprises - Extended Myplan to prepaid customers - Expand company owned retail stores
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 23% 18% 15% 12% 10% 7% 8% 6% Share 3.7% 5.6% Bharti Airtel 210 Vodafone 7.1% 31.1% 171 RCOM 140 BSNL+MTNL 17.1% 109 Idea 92 74 Tata 63 59 5.5% Aircel 6.7% 23.2% Othe
Slide 17: India Wireless – Significant Upside From Data
India Wireless – Significant Upside From ‘Data’ Data as a percent of Mobile Revenues across Bharti Airtel’s Non Voice Revenues as a % of Mobile Emerging Markets Revenues 1 30% 20% 60 10% 51 51 49 49 45 0% (%) 34 34 33 33 32 31 22 24 24 Data Revenue Other Non Voice Non Data Revenue 14 14 16 8 Bharti
Slide 18: Data Drivers
Data Drivers 17 mn more Indians between 15 to 44 years 1 Smartphone penetration in Asia 2 625 Singapore 72% 619 Korea 69% 620 615 Japan 50% 610 APAC Avg 39% 605 602 China 30% 600 Thailand 26% 595 Indonesia 26% 590 India 10% 2013 2015 Smartphone shipments to India have tripled from 6.14 mn to 17.6 mn
Slide 19: Strong Spectrum Position
Strong Spectrum Position Bharti Airtel’s Spectrum Position Spectrum Holding J&K • Acquired 115 Mhz of 20 year liberalized spectrum positions – Enhanced long term deployment flexibility Himachal Pradesh Delhi • Prime Spectrum to Lead Data Growth Story in Feb 2014 Punjab auctions Haryana Uttar Pradesh
Slide 20: International Operations on a Steady Path
INTERNATIONAL OPERATIONS ON A STEADY PATH
Slide 21: Africa – Opportunity for Growth
Africa – Opportunity for Growth India Africa 1 Mobile Penetration ~73% ~63% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~418 ~138 per sub 2 ARPU (US$) 2 ~$3.3 ~$5.4 VRPM (US cents ¢) 2 0.6¢ 3.0¢ Africa presented
Slide 22: Africa Performance Indicators
Africa Performance Indicators Total Subscribers (mn) and Total Minutes (bn) Minutes of Usage per sub 80.0 68.4 69.4 69.1 71.4 30.0 143 141 66.4 136 136 138 25.0 60.0 28.3 29.0 27.8 28.3 28.2 20.0 40.0 15.0 10.0 20.0 5.0 0.0 0.0 Q2 FY14 Q3 FY14 Q4FY14 Q1FY15 Q2FY15 Q2 FY14 Q3 FY14 Q4FY14 Q1FY15 Q2FY1
Slide 23: Africa: Data, Airtel Money are the stars
Africa: Data, Airtel Money are the stars Net adds Data, Messaging and VAS close to 20% 9.80% 9.70% 9.20% 9.30% 8.80% 10.11% 7.69% 8.77% 6.55% 7.35% Q2' 14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Data Revenue (%) Messaging %Vas Revenue (%) Data consumption up 23.2% Q-o-Q, 91.2% Y-o-Y Airtel Money transaction val
Slide 24: Geographical Opportunity & Performance
Geographical Opportunity & Performance Mobile Penetration(%) Number of Countries < 60% 9 60% - 90% 5 > 90% 3 Market Position Number of Countries #1 9 #2 5 #3 3 Source: Company data, CIA World Factbook, World Bank 24
Slide 25: Other Businesses
airtel OTHER BUSINESSES
Slide 26: Multiple Games, Multiple Opportunities
Multiple Games, Multiple Opportunities • Telemedia – Data Story • Airtel Business - Reach Deep • DTH - Build Scale • Airtel Money - Develop Ecosystem • Tower Infrastructure Source: Company Filings 26
Slide 27: 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 • Key Performance Indicators – Voice (wire-line) and Data
Slide 28: 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 integration, data centers, managed services, enterprise mobility applications
Slide 29: 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 30: Airtel Money
Airtel Money • Airtel Money, Airtel’s semi-closed wallet has witnessed phenomenal growth over the year • Key Performance Indicators (Africa, Q2FY15) – Total customer base: 5.3 million (up 2.9x YoY) – Transaction Value: $ 3,345 million (up four- fold YoY) – Total number of transactions: 131 million (
Slide 31: Tower Infrastructure
Tower Infrastructure • Bharti Infratel is a leading tower infrastructure provider • Also holds a 42% stake in Indus Towers, 2.11 amongst the largest tower companies in the 120,000 1.97 2.05 2.00 world, operating in 15 circles, thereby enabling Sharing Factor (x) 100,000 1.80 84,303 the Company to pr
Slide 32: Financial Overview
airtel FINANCIAL OVERVIEW
Slide 33: Robust Financials (Consolidated)
ROBUST FINANCIALS (CONSOLIDATED) 1 * KPI FY Ending 31st March, 2014 HY Ending 30th Sept, 2014 Revenue Growth 11.5% 10.1% EBITDA Growth 19.3% 15.0% EBITDA Margin (%) 32.5% 33.7% EBIT Growth 43.1% 33.8% EBIT Margin (%) 14.2% 16.5% PBT Growth 63.2% 92.3% PBT Margin (%) 9.1% 12.8% note: in INR terms Con
Slide 34: Robust Financials (Consolidated)
Robust Financials (Consolidated) 1 Net Income (INR mn) and EPS (INR) Net Debt (USD mn) and Net Debt-EBITDA Ratio 16000 16 30000 3.00 13,832 2.20 2.05 2.19 11,085 13.85 2.04 2.06 2.25 12000 12 9,616 11.1 9.63 1.50 8000 8 6,102 10,074 9,609 10,098 9,773 9,313 5,120 6.11 0.75 4000 5.13 4 0 - 0 0 Q2' 14
Slide 35: Leadership
airtel LEADERSHIP
Slide 36: Leadership in Business
Leadership in Business Ranked #71 in top 100 list of Sunil Bharti Mittal, Chairman Bharti Airtel was placed among the top Global Brands by Millward Brown 200 brands globally in the annual survey Optimer, published in Financial • Honorary Degree awarded by undertaken by Brand Finance, an Times , with
Slide 37: 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 38: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 39: Investment Highlights
Investment Highlights Leading Emerging Growth Strategy: Mobile Markets Telco Data, Increased Experienced (Asia and Africa) Penetration and New management team Services Innovative business Focused on Free Cash model driving value Flow Generation and efficiency from scale Strong financial and Present
Slide 40: Thank You
THANK YOU
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