Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (October 2010)
29 slides from Bharti Airtel's investor presentation, October 2010
Slide 1: Investor Presentation
Investor Presentation Bharti Airtel Limited October 2010
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 2G Carriers Corporates 3G Rural Market Passive Infrastructure Services Infratel Telemedia Services Indus Fixed Line Broadband DTH IPTV Pay per view / HD Interactive Services including Gaming Fully integrated tele
Slide 4: Bharti – a growth journey
Bharti – a growth journey No. of circles Today 1 5 15 22 19 countries DELHI ‘ 1996 2001 2003 2004 2010 4 Mobile Services Telemedia Services Enterprise Services DTH
Slide 5: Growth trajectory reflected in the numbers
Growth trajectory reflected in the numbers 1996 2010 Single Circle Operator + telephone Company Profile Largest integrated private telecom instruments operator < 25k Customers ~ 137 mn ~ USD 17 mn Revenue ~ USD 9 bn ~ USD 2.5 mn EBITDA ~ USD 4 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Marke
Slide 6: Revenue & Profitability trends
Revenue & Profitability trends Total revenues 36% EBITDA CAGR 39% 5,000 CAGR 10,000 8,776 8,188 8,000 4,000 3,550 3,360 5,987 6,000 3,000 2,519 4,103 4,000 2,000 1,651 2,000 1,000 0 0 2007 2008 2009 2010 2007 2008 2009 2010 Years Years Cash profit from operations Net profit 42% 42% 42% CAGR CAGR CAG
Slide 7: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST wireless operator in the world (1) FY 10 (in Mn) LARGEST private INTEGRATED telecom Customers 137.0 company in India Revenue $ 9,271 5th LARGEST INTEGRATED telecom operator EBITDA $ 3,714 in the world Cash
Slide 8: Latest Results – 1Q'11
Latest Results – 1Q’11 Key operating and financial metrics Continued Strong Performance Q1 FY 11* Y-on-Y Wireless CMS 21.5% Customers 183.37 mn 71.0% Wireless RMS 31.2% Total MOU carried in Qtr 206.2 bn Revenue $ 2,625 mn 17.4% Balance sheet strength: EBITDA $ 947 mn 3.0% Assets $ 31 bn Cash Profit
Slide 9: Performance dashboard - Gross Revenue (USD Mn)
Performance dashboard - 3 line graph 115,000 112,725 80% 69% 66% 110,000 63% 63% 65% 70% Gross Revenue (USD Mn) 105,000 107,491 60% 104,143 103,785 100,000 103,053 50% 95,000 40% 38.1% 39.9% 40.9% 40.6% 38.4% 90,000 30% 85,000 20% 80,000 10% Q110 Q210 Q310 Q410 Q111 Gross Revenue (USD Mn) (LHS) Opex
Slide 10: Wireless Services
Wireless Services 10 Mobile Services Telemedia Services Enterprise Services DTH
Slide 11: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.652 mn Population 1.2 billion Wireless Penetration c.55% → Relatively large youth population Telecom penetration c.58% Operational metrics per month (~688 mn telecom subs) Usage per user 480 min → Sub number should go upto 1 Billion by
Slide 12: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Aug 18.2 Mn…greater than over S-curve triggered last 3 months average run rate of 17.1 Mn Closing Subscribers Net Adds 90% 800 22 80% 20 70% 700 18 600 60% 16 500 14 50% 12 400 40% 10 300 8 30% 200 6 20% 4 100 10% 2 - - 0% 1999 2001 2003 2005 2007 2
Slide 13: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 160 141 140 25% 23.6% 120 115 114 108 23% 21.1% 21% 100 18.4% 84 81 81 19% 17.7% 17.2% 77 17.0% 80 73 69 17% 62 15% 13.6% 60 50 13% 12.1% 43 40 11.5% 34 10.8% 11.0% 40 33 31 33 11% 10.3% 29 9.4% 19 23 9% 20 7% 6.3%
Slide 14: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 105% 160 26% 101.1% 24.0% 99.6% 23.5% 100% 101.7% 99.2% 100.8% 97.5% 120 24% 97.9% 100.4% 22.7% 98.4% 95.2% 95.3% 95.8% 96.0% 95% 94.7% 80 21.8% 21.5% 23% 93.5% 94.2% 92.9% 92.3% 40 102.4 110.5 118.9 127.6 21% 90%
Slide 15: 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 (>$ 9 Bn) growth through M-Com, Revenue Market M-entertainment & 3G Share Cost Net Adds Improving cost efficiencies Maximizing Non financial Driven by rural
Slide 16: Telemedia Services
Telemedia Services 16 Mobile Services Telemedia Services Enterprise Services DTH
Slide 17: 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 88 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises. 3. C
Slide 18: Enterprise Services
Enterprise Services 18 Mobile Services Telemedia Services Enterprise Services DTH
Slide 19: 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 full suite of voice, data, and managed communications solutions Carriers: Wh
Slide 20: Emerging Growth Engines
Emerging Growth Engines ►Passive Infra ► Africa iiiiiiiiii 20 Mobile Services Telemedia Services Enterprise Services DTH
Slide 21: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue EBITDA 10,000 32.6 34.2 34.0 37.1 35.5 30,000 9,000 26,000 8,000 7,224 7,240 20,412 7,000 6,267 22,000 19,459 18,407 5,831 17,049 6,000 18,000 15,937 5,201 5,000 14,000 4,000 10,000 3,000 Q110 Q210 Q310 Q410 Q111 Q110 Q210 Q310 Q410 Q111 EBITDA (INR Mn)
Slide 22: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 104,901 32,000 31,196 1.70 105,000 1.80 102,938 102,696 31,000 30,568 103,000 29,806 1.75 1.70 1.65 100,728 30,000 1.62 1.60 101,000 1.71 29,112 97,925 1.66 29,000 99,000 1.60 28,078 1.
Slide 23: Transaction Rationale
Transaction Rationale Shareholding and 100% Cash Transaction Management Control Focus on Core Brand – ‘Airtel’ Global Middle East Stature Operators Clean / Emerging Market certainty Characteristics of transaction Strong Platform for Future Expansion Low Competitive Manageable Intensity Deal Size Div
Slide 24: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 55% 32% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~480 ~100 ARPU (US$) ~$5 ~$7 ARPM (US cents ¢) 1¢ 7¢ And therefore huge opportunity space
Slide 25: Africa – Strong Platform
Africa – Strong Platform Airtel Africa Coverage Addressable Market Opportunity Population, 2009 (mn) Population, 2009 (mn) 50.9% 32.0% Total Africa: Airtel Africa 1,025mn 450mn 575 450 Airtel Africa Footprint Other African Countries Penetration, 2009 Leading African Operators Telecom Operators by Su
Slide 26: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 36.36 Mn Performace Indicators (CY 2009): Revenue: $ 3,667 Mn EBITDA: $ 1,160 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 103 Minutes →one of the lowest ARPU: ~ US$ 7.4 Rate per minute: ~ US¢ 7.2 → one of the highest
Slide 27: Recent Honours
Recent Honours 27 Mobile Services Telemedia Services Enterprise Services DTH
Slide 28: Bharti Airtel – Leadership in business
Bharti Airtel – Leadership in business Recent Honours NDTV Profit Business Leadership Awards 2010 Top Telecom Company Sunil Bharti Mittal - Business Innovator of the Year India’s Most Innovative company - Wall Street Journal Most Preferred Cellular Service Provider - 2010 CNBC Awaaz Consumer Awards
Slide 29: 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