Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (March 2009)
36 slides from Bharti Airtel's investor presentation, March 2009
Slide 1: Investor Presentation Bharti Airtel Limited
Investor Presentation Bharti Airtel Limited March 2009
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: Advantage India
Advantage India Population: 1.1 billion → increasing urbanisation → relatively large youth population GDP Growth (Real) : ~7.3% → second highest growing economy GDP Size (PPP adjusted): US$ 3 trillion → fourth largest economy in the world Telecom penetration: 35.65% (413.85 mn telecom subs)
Slide 4: The Company...Bharti Airtel
The Company...Bharti Airtel Bharti Airtel – an integrated telco Wireless Services Enterprise Services 2G/3G Carriers Rural Market Corporate Passive Infrastructure Telemedia Services Services Fixed Line Broadband DTH (Media)/IPTV Fully integrated telecom player…end to end teleco
Slide 5: Bharti Airtel - placing in the world and India
Bharti Airtel - placing in the world and India 3rd LARGEST wireless operator in the world1 LARGEST private INTEGRATED telecom company in India LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST TELECOM company listed on Indian Stock Exchanges Note: (1) 3rd larges
Slide 6: Latest Results – Q3 FY08/09
Latest Results – Q3 FY08/09 Key operating and financial metrics Continued Strong Performance Q3 FY 09 Y-on-Y Wireless Customer market share leadership at 24.7%. Customers 88.27 mn 54.0% Total minutes on network carried in Q3 – 143 billion Revenue $ 1,983 mn 38.3% Total employee strength – 25,5
Slide 7: Performance dashboard
performance dashboard - 3 line graph 110,000 74.4% 80.0% 73.6% 73.1% 72.3% 71.1% 100,000 70.0% Amount in Rs. Mn 90,000 96,334 90,203 60.0% 80,000 84,833 78,191 50.0% 70,000 69,639 33.8% 34.6% 34.7% 40.0% 60,000 32.4% 32.7% 50,000 30.0% Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Gross Revenue (Rs mn.) (LHS)
Slide 8: Segment investment & contribution
Segment investment & contribution Revenue EBITDA 13% 1% -3% 5% 11% 5% 19% 20% 59% 9% 81% 10% Mobile Services Telemedia Services Mobile Services Telemedia Services Enterprise Services - Carriers Enterprise Services - Corporates Enterprise Services - Carriers Enterprise Services - Corporates Passive I
Slide 9: Few recent recognitions
few recent recognitions Bharti Airtel top honors at the 7th edition of the Frost & Sullivan ICT awards 2008 in the categories of Large Enterprise Telecom Services, Wholesale Data Services and Mobile Service. Bharti Airtel and IFFCO joint venture recently bagged the ‘Best Content Service’ award a
Slide 10: Wireless Services
Wireless Services 10 Mobile Services Telemedia Services Enterprise Services
Slide 11: KPIs…Indian Wireless Market
KPIs…Indian Wireless Market Sub Base : 376.12 mn JK →second largest market Wireless Penetration: 32.4% PB HP →lowest in the world UP(W) HHI Index: very high HAR →one of the most competitive market DELHI DEL Prepaid Base: 90%+ RAJ AS UP(E) →one of the highest in the world BH NE Usage per su
Slide 12: Rapidly Growing Wireless Market
Rapidly Growing Wireless Market Net Adds in Feb…13 MN, higher than 10 MN S-curve triggered net adds per month over past few months 90% Closing Customers (mn) Net Adds (mn) 80% 400 11 70% 350 10 60% 9 300 8 50% 250 7 6 40% 200 5 30% 150 4 100 3 20% 2 50 10% 1 - - 0% Mar-01 Jun-01 Dec-01 Mar-02 Jun-02
Slide 13: Wireless Market Structure
Wireless Market Structure Subscriber Trends Customer Market Share – CMS (%) 25.0% 24.2% 100.00 91.1 23.9% Feb-09 Feb-08 Net adds during last 12months 23.0% 90.00 CMS(Feb'09) CMS(Feb'08) 80.00 21.0% 69.6 18.5% 70.00 65.9 19.0% 17.5% 59.9 17.6% 16.8% 17.0% 60.00 53.6 17.0% (mn) 44.2 14.3% 50.00 42.1 4
Slide 14: Road map
Road map Current March 2009 Presence Operational in 23 circles of India on Looking for options in primarily in GSM technology. emerging markets Launched Operations in Srilanka Population 79% of population covering 5,057 • Poised to cover all census towns Coverage census towns and over 4 lakhs non- a
Slide 15: Road map
Road map Current March 2009 Sales & • One of the widest distribution • Continue distribution expansion, Distribution network. especially in rural areas Network • Following the FMCG company distribution model - Match Box Approach • Present in over a million PoP in India. • Tie-up with IFFCO, an edge
Slide 16: First mover advantage/ product innovations
first mover advantage/ product innovations Electronic Easy Music Recharge / Micro Prepaid Life time validity product Hello Tunes (Ring Back Tones) Song Catcher Call Home Service Music on Demand Airtel Live (Portal) Google search Portfolio Manager (Stock Tracker) Money Transfers iPhone Blackberry M C
Slide 17: Performance Indicators
Performance Indicators Customers & Market Share Prepaid/Postpaid 90.0 85.7 25.0% 105.0% 77.5 80.0 24.6% 24.7% 24.5% 99.6% 69.4 100.0% 70.0 24.2% 62.0 24.0% 60.0 95.4% 55.2 23.7% 95.0% 92.9% 93.5% 23.6% 91.6% 92.3% 23.5% 91.0% 50.0 90.4% 90.0% 40.0 23.0% Q308 Q408 Q109 Q209 Q309 85.0% Customers (Mn)
Slide 18: Performance Indicators
Performance Indicators Revenues (USD mn) EBITDA (USD mn) & Margin (%) 40.8 35.5 30.7 30.2 31.4 550 1,700 1,600 1,634 500 514 1,500 1,400 1,499 1,300 1,423 471 450 469 1,200 1,322 453 1,100 1,155 437 1,000 900 400 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 18 Mobile Services Telemedia Services
Slide 19: Telemedia Services
Telemedia Services 19 Mobile Services Telemedia Services Enterprise Services
Slide 20: A snapshot
A snapshot Largest private operator having presence in the voice and data (broadband). Foraying into the media space - IPTV & DTH (Direct-To-Home) services. Key Performance Indicators 1. Voice (wire-line) and Data (DSL) Presence in 95 top cities of India. 2. Target Segment : Retail and Small a
Slide 21: Telemedia Services
Telemedia Services Business Units Media SMBs Homes • Voice • DTH • Broadband Products • Data • IPTV • Voice • Mobile Services A Pan-India DTH Dominant Broadband & One-Stop Shop for All Businesses; and a Fixed Voice share of the Goal Airtel Services and targeted IPTV Presence affluent in targeted 95
Slide 22: Product Portfolio
Product Portfolio Our Media Play 22 Mobile Services Telemedia Services Enterprise Services
Slide 23: Performance Indicators
Performance Indicators Customers (overall & DSL) ARPU (USD) 2,750 1,200 28.0 23.5 23.4 23.4 23.6 22.6 922 992 24.0 2,500 853 2,619 1,000 795 751 2,509 20.0 2,250 2,394 800 2,283 16.0 2,000 2,178 600 12.0 1,750 400 8.0 1,500 200 4.0 1,250 0 0.0 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 B&T Cu
Slide 24: Enterprise Services
Enterprise Services 24 Mobile Services Telemedia Services Enterprise Services
Slide 25: A snapshot
A snapshot Carrier: - one of the largest carriers of voice and data, both domestic and international. Corporate: - providing end to end telecom solutions to large corporate and Small & Medium Businesses. Present Competition: National Long Distance: BSNL; Reliance; VSNL; Vodafone; Tata Inte
Slide 26: Enterprise Services – Carriers NLD
Enterprise Services – Carriers NLD Voice Network Jalandhar Chandigarh Delhi Jaipur Lucknow Ahmedabad Bhopal Kolkata Nagpur Mumbai Hyderabad Bangalore Chennai Coimbatore Ernakulam Legend Capative Traffic (Group Traffic) ~ 90% Existing OFC Route Under Execution NLD minutes carrierd (Q3 FY 09) >11.6 Bn
Slide 27: Enterprise Services – Carriers ILD
Enterprise Services – Carriers ILD Legend SEA-ME-WE-4 Connectivity to West i-2-i i-2i Conectivity to East SEA-ME-WE-4 ILD minutes carried (Q3 FY 09) 2.6 Bn Min Other Int’l Connectivity ILD Gateways 3 Int’l Gateways Connectivity Landing Stations 2 27 Mobile Services Telemedia Services Enterprise Serv
Slide 28: Performance Indicators - carriers
Performance Indicators - carriers Voice Minutes on Network Revenues (USD mn) 11,349 11,609 12,000 400.0 10,322 365 9,398 10,000 350 7,898 360.0 8,000 323 6,000 320.0 4,000 2,603 280.0 1,850 2,048 2,284 259 1,591 2,000 234 240.0 0 Q308 Q408 Q109 Q209 Q309 200.0 NLD Minutes (mn) ILD Minutes (mn) Q308
Slide 29: Enterprise Services - Corporates
Enterprise Services - Corporates Mobile services Voice services Satellite services Managed data & Internet services competition limited segment one stop telecom solution target 2,000 top large corporates Managed e - Managed customized leveraging integrated play business services integrated solutions
Slide 30: Performance Indicators - corporates
Performance Indicators - corporates Revenues (USD mn) EBITDA (USD mn) & Margin (%) 41.9 57 45.7 41.4 42.9 120.0 60.0 100 100.0 40.0 44 42 84 36 36 78 80 28 80.0 20.0 68 60.0 0.0 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 30 Mobile Services Telemedia Services Enterprise Services
Slide 31: Passive Infrastructure Services
Passive Infrastructure Services 31 Mobile Services Telemedia Services Enterprise Services
Slide 32: Market landscape
Market landscape No of Towers Description (Estimates) Indus Towers 91,715 JV between Airtel;Idea & Vodafone operational in 16 circles Bharti Infratel 26,289 Subsidiary of Airtel operating in 11 circles Reliance Infratel 40,000 Subsidiary of Reliance operating in all 23 circles BSNL+MTNL 40,000 State
Slide 33: A snapshot
A snapshot Bharti Infratel operates in 11 circles. Indus Tower operates in 16 circles. Standard Master Services Agreement with competitive rates already in place. Key focus areas: To increase sharing factor (tenancy) from current levels of 1.34. Provide energy optimization solutions and
Slide 34: To conclude
To conclude 34 Mobile Services Telemedia Services Enterprise Services
Slide 35: Key Strategic Objectives
Key Strategic Objectives Sustain revenue share in mobile profitably Achieve deeper penetration in home and SMB Product & vertical focus to gain client Revenue Market Share (cRMS) in Enterprise business Become a benchmark in customer experience through service quality & innovation Build a robust lead
Slide 36: 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