Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Day (December 2011)
35 slides from Bharti Airtel's investor day presentation, December 2011
Slide 1: Bharti Airtel Limited
Bharti Airtel Limited December 2011
Slide 2: Disclaimer
Disclaimer Not for release, distribution or publication, whether directly or indirectly and whether in whole or part, in to or in the United States, Australia, Canada or Japan or anyy other jjurisdiction in which such release,, distribution or p publication would be unlawful. These materials have be
Slide 3: Agenda
Agenda Bharti Airtel – Who we are Bharti Airtel – Unique Business Model Bharti Airtel‐ India Wireless Overview Bharti Airtel‐ India & SA – Other Businesses Bharti Airtel‐ Africa Financial Overview Key Highlights and Conclusion 3
Slide 4: Bharti Airtel — Who we are
f) airtel Bharti Airtel — Who we are
Slide 5: Largest private integrated telecom company in India
Bharti Airtel LARGEST private INTEGRATED telecom company in India LARGEST WIRELESS service provider in India by subscribers – 5th LARGEST MOBILE telecom operator in the world (1) – 3rd LARGEST in‐country wireless service operator in the world (1) Amongst the LARGEST providers of passive infrastructu
Slide 6: An Integrated Global Telco
An Integrated Global Telco P i Passive Mobile Telemedia Enterprise Digital TV Infrastructure Services Services Services Services Services Cellular mobile Offers fixed Services to large Bharti Infratel Pan India DTH services across telephony and enterprises and owns 33,056 33 056 operations 19 countr
Slide 7: Scale and Profitability across Diversified Segments
Scale and Profitability across Diversified Segments Q2FY12 annualized Revenues of $15 13 bn ($16.9 $15.13 ($16 9 bn including inter segment inter‐segment revenues) and EBITDA of $5.1 bn Bharti Airtel Africa contributed 24% of Q2FY12 revenues (1) Q2FY12 annualized Revenue: $16.9 bn (3) Q2FY12 annuali
Slide 8: The Company…Bharti Airtel
The Company…Bharti Airtel No. of circles (India) Today Countries 1 5 15 22 19 ‘ 1996 2001 2003 2004 2011 Mobile services IPO through India’s largest Launched mobile services in Sri Lanka under the brand India’s first integrated Launched DTH services name ‘Airtel’ 100%% book‐ private telecom p launch
Slide 9: Strong Growth Trajectory Since IPO
Strong Growth Trajectory Since IPO 2002 2011 Company Profile Operations in five circles Leading emerging markets telecom operator Customer Base (4) 1.6 mn 220.9 mn Revenue $307.5 mn $13.1 bn EBITDA $83.3 mn $4.4 bn Cash Profit (2) $60.4 mn $4.0 bn Market Capitalization ~ $1.5 bn(3) ~ $30.4 bn(3) Bha
Slide 10: Unique Business Model
Unique Business Model
Slide 11: Business Model – "Minutes Factory"
Business Model – “Minutes Factory” Improving affordability to gain positive elasticity is at the heart of our Minutes Focus on producing the Factory model lowest cost minute whilst maintaining / growing margins Drive affordability – more users – more usage Increased scale of minutes; driving operati
Slide 12: Strategic Partnerships as part of Business Model
Strategic Partnerships as part of Business Model Network management Information technology outsourcing Nortel, Avaya, Cisco, Wipro, IBM Daksh, Mphasis, Hinduja TMT, Aegis BPO Call centers / customer service Teleperformance, Firstsource > 1.6mn retail outlets Distribution Indus Towers; Bharti I
Slide 13: Bharti Airtel: India Wireless Overview
Bharti Airtel: India Wireless Overview
Slide 14: India Wireless Performance Indicators
India Wireless Performance Indicators Sub Base c.870.78 mn Wireless Penetration c.72.39% Operational metrics per month – Usage per user ~345 min – ARPU ~ US$ 3.51 – Rate per minute ~ US$ 0.01 Wireless Revenue VAS ~ 13.3% Lot of opportunity ahead…. Note: (1) Subscriber numbers and wireless penetratio
Slide 15: Mobile Services
Mobile Services Largest wireless operator in India both, in terms of customers and revenue Network presence – In India: 5,115 5 115 census towns and 453148 non census towns and villages , covering approximately 86.8% of the country population – Srilanka: In all 25 administrative districts – Banglade
Slide 16: Bharti Airtel: The Leading Indian Wireless Operator
Bharti Airtel: The Leading Indian Wireless Operator Wireless WirelessSubscriber Subscriber Market Market Share (1) (1) Share Wireless WirelessRevenue RevenueMarket Share(2) MarketShare (2) Customer 20.0% 16.7% 16.6% 12.0% 11.0% 19.9% Market Share 16.8% 16.6% 11.7% 11.2% 10.7% 13.2% 35% 180 169 30.8%
Slide 17: India Wireless – Significant Upside From Data
India Wireless – Significant Upside From “Data” D t as a percentt off M Data Mobile bil Revenues R Bh ti Ai Bharti Airtel’s t l’ Non-Voice N V i Revenues R as a % off across Emerging Markets Mobile Revenues 80 16 15.0 14.6 14.5 13.8 60 14 12.7 60 11.8 11.6 51 51 12 11.0 49 49 45 9.8 10 (%) 40 34 (%
Slide 18: 3G and Evolving Technologies – Accelerators for Data demand
3G and Evolving Technologies – Accelerators for Data demand Bharti Airtel’s 3G Position 3G Launch plans J&K 3G auctions in India were completed, and Himachal Pradesh Delhi D lhi spectrum was allocated in September Punjab 2010 Haryana Uttar Pradesh (W) Assam NE Rajasthan Uttar Pradesh (E) Allocated 3
Slide 19: India SA – Other Businesses
India SA – Other Businesses
Slide 20: Telemedia Services
Telemedia Services Largest private telecom operator having presence in voice, broadband, IPTV and data FFocus on R Retailil and d SSmallll & M Medium di B Business i (“SMB”) segment Key Performance Indicators – Voice (wire‐line) and Data (DSL) Presence in 87 cities in India – Customer C t b base: 3
Slide 21: Enterprise Services
Enterprise Services Enterprise p Services provides p a broad p portfolio of services to large Corporates and Carrier customers: Corporates: Single point of contact for all telecom needs g corporate for large p customers Carriers: Wholesale voice and data services to domestic and international teleco
Slide 22: Passive Infrastructure
Passive Infrastructure Bharti Infratel is a passive infrastructure provider to telecom operators in 11 circles in India Bharti Infratel also holds a 42% stake in Indus Towers, amongst the largest tower companies in the world, operating in 15 circles, thereby enabling the Company to provide leading p
Slide 23: Digital TV Services
Digital TV Services Launched “Airtel Digital TV” service in October 2008 as fifth operator providing Direct‐to‐Home (DTH) services in India Current subscriber base of ~6 6.6 6 million customers – Adding 1 out of every 4 new customers joining the DTH platform – Currently offer a total of 258 channels
Slide 24: Venture Into Africa
Venture Into Africa
Slide 25: Venture into Africa - Transaction Rationale
Venture into Africa- Transaction Rationale Bharti Airtel Transaction Objectives Achievements Shareholding g and Full Global Gl b l St Stature t Management Control with focus on Emerging Markets Ability to use brand ‘Airtel’ Airtel Manageable Deal Size Significant Synergies Diversification of India R
Slide 26: Africa - Opportunity for Growth
Africa- Opportunity for Growth India Africa((1)) Mobile Penetration ~68% ~51% Average Number of 10‐14 3‐5 (2) Competitors Business Model High usage usage, low tariff model Low usage, usage high tariff model Minutes of Usage ~423 ~128 per sub (2) ARPU (US$) (3) $4.0 $7.3 ( cents ¢)) (3) ARPM (US < 1.
Slide 27: Bharti Airtel Africa - Market Position
Bharti Airtel Africa- Market Position Leadership Position in African Markets Licences & Spectrum No of markets Positioning All 16 countries have 900 Mhz spectrum 7 1st Average 2G spectrum across 17 countries: 5 2nd 19 Mhz (1) 3 3rd – Average of 8 Mhz of 900 Mhz spectrum 1 4th – Average of 12 Mhz of
Slide 28: Financial Overview
Financial Overview
Slide 29: Robust Financials (Consolidated)
Robust Financials (Consolidated) (1) Total Revenues EBITDA and EBITDA margin 14,000 13,063 42.1% 41.0% 40.1% 33.7% 5000 12,000 4403 10,000 8,797 4000 3531 8 036 8,036 3298 (In $ Mn) 8,000 2841 (In $ Mn) 6,753 3000 6,000 2000 4,000 2,000 1000 0 0 2008 2009 Years 2010 2011 2008 2009 2010 2011 Net Prof
Slide 30: India & South Asia Performance Indicators
Bharti Airtel… India & South Asia Performance Indicators Total Revenues EBITDA a and d EBITDA margin ag 37.4% 36.1% 36.8% 36.4% 36.1% 2,900 2,823 1,200 2,776 2,800 1 028 1,028 987 1,001 2,683 1,000 940 2,700 915 2,607 2,600 800 In $ M n 2,500 2,444 In $ M n 600 2 400 2,400 2,300 400 2,200 200 2,100
Slide 31: Africa Performance Indicators
Bharti Airtel…Africa Performance Indicators Total Revenues EBITDA and EBITDA margin 1,200 23.2% 23.3% 24.3% 25.2% 26.2% 1030 320 979 911 924 270 838 246 800 240 225 212 194 ( In $ M n ) (In $ M n ) 160 400 80 0 0 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212 Huge opportunity space 31 Note: Above
Slide 32: Leadership and Corporate Governance
Leadership and Corporate Governance
Slide 33: Leadership in Business
Leadership in Business Sunil Bharti Mittal, Chairman & Group CEO Rated as the ‘Strongest Brand’ in No.1 Service Brand and No.3 in the Honorary degree of Doctor of the Economic Times- Brand Finance overall rankings in the annual Laws by University of Leeds (UK) ‘Brand Power for 2009 Brand Equity's Mo
Slide 34: 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 35: Thank You
Th k You Thank Y