Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Jefferies India Forum 2024
46 slides from Bharti Airtel's conference presentation, Sep 17, 2024
Slide 1: Regulation 30 disclosure letter to NSE and BSE
September 17, 2024 National Stock Exchange of India Limited Exchange Plaza, C-1 Block G Bandra Kurla Complex, Bandra (E) Mumbai – 400051, India Symbol: BHARTIARTL/ AIRTELPP BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400001, India Scrip Code: 532454/ 890157 Sub: Disclosure under Reg
Slide 2: 17th September 2024
17th September 2024
Slide 3: Disclaimer
Disclaimer The information contained in this presentation is provided by Bharti Airtel Limited (the “Company”) to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part thereof
Slide 4: Agenda
Agenda Who are we The opportunity Our strategy
Slide 5: Who are we?
Who are we? International India 14 countries in Africa, 21 in South Asia ~352 Mn Mobile Customers, 30 Mn+ Homes 210 Mn+ Customers 220 Mn MAUs on Digital Assets 3.3 Mn+ Retail Touch points in Africa 3500+ Enterprises $112 Bn Airtel Money# Transaction Value 1M+ offices International includes Airtel Af
Slide 6: Who are we?
Who are we? International FY’24 India Revenue (Cr) 149,982 14 countries in Africa, 21 in South Asia ~352 Mn Mobile Customers, 30 Mn+ Homes EBITDA Margin 52.7% 210 Mn+ Customers 220 Mn MAUs on Digital Assets 3.3 Mn+ Retail Touch points in Africa 3500+ Enterprises Net Debt/EBITDA 2.59 $112 Bn Airtel M
Slide 7: Who are we? Increasingly diversified portfolio
Who are we? Increasingly diversified portfolio 57% 27% 16% India Mobile Airtel Africa India – Enterprise & Homes1 1 Homes includes Broadband and DTH Basis FY’24
Slide 8: Who are we? A resilient institution
Who are we? A resilient institution Growth Disruption Momentum Revenue CAGR at 14% 1,097 EBITDA Margin doubled Revenues (INR Billion) 708 567 1995 FY’16 FY’19 FY’24 Started Operations EBITDA % 41% 26% 54%
Slide 9: Who are we? Humble culture with obsession on governance
Who are we? Humble culture with obsession on governance Ownership mindset Culture Humility Do more than talk Definition of customers: Stringent Governance Segmental Disclosures: Detailed financials up to EBIT with capex and KPIs Prudent Accounting Policies: In all areas, especially amortization and
Slide 10: Massive amount of heavy lifting in capital investments
Who are we? Massive amount of heavy lifting in terms of Capital investments done International 355K Towers 12 Data Centers and 120 Edge DCs INR 1.7 Lakh Cr Spectrum Investment* 7 Sub Marine Cables Strategic assets 440K+ RKms of Domestic Fiber Towers for India, SA & Africa *Cumulative Spectrum Invest
Slide 11: Airtel India performance: lifetime high mobile market shares
Airtel India performance in the recent past Lifetime high market shares Mobile RMS% Others 2.8% Others 3.1% Player 3 7.2% Player 3 4.7% 4.8% 5.1% 10.1% 9.3% 15.4% Player 2 6.8% 7.3% 32.8% 8.2% 4.5% Player 2 15.1% 18.6% Player 1 42.1% Player 1 32.2% 22.0% 21.4% 37.9% 30.2% 30.7% 27.8% FY'13 FY'16 FY'
Slide 12: Airtel India performance: lifetime high market shares
Airtel India performance in the recent past Lifetime high market shares Broadband DTH Airtel Business Customer market share (%) Customer market share (%) Revenue market share (%) 19.3% 36.8% 28.5% 26.6% 12.8% 22.0% FY'19 FY'24 FY'19 FY'24 FY'19 FY'24 Broadband & DTH customer market share based on TR
Slide 13: Airtel India performance: industry leading ARPU
Airtel India performance in the recent past Industry leading ARPU ARPU Growth (Last 5 years) 209 70% 182 Player 1 44% 146 Player 2 40% 126 123 104 FY'19 FY'24 ARPU figures are for year exits (Q4)
Slide 14: Airtel India performance: robust balance sheet
Airtel India performance in the recent past Robust Balance Sheet Net Debt/EBITDA (times) Return on Capital Employed (%) Raised ~$16B capital over 2019 to 2022 9.3% 5.1 3.0 -0.3% FY'19 FY'24 FY'19 FY'24 Figures are for India SA
Slide 15: Agenda
Agenda Who are we The opportunity Our strategy
Slide 16: Opportunity: B2C (1/2)
Opportunity B2C (1/2) ARPU 2012 2019 2023 CAGR: 3% CAGR: 20% High end homes 1600 15M 19M 40M 230 CAGR: 41% CAGR: 8% Mid market 35M 390M 530M 140 CAGR: -8% CAGR: -11% Mass market 800M 440M 270M DTH Broadband Smartphone Feature phone
Slide 17: Opportunity: B2C (2/2)
Opportunity B2C (2/2) ARPU 2019 2023 Implication High end homes 1600 19M CAGR: 20% Lock in 40M 230 Mid market 390M CAGR: 8% 530M Upgrading 140 CAGR: -11% Mass market 440M 270M DTH Broadband Smartphone Feature phone
Slide 18: Opportunity: Homes – Broadband market exploding
Opportunity Homes – Broadband market exploding Market size Consolidation Consumer, Mn CMS% CAGR: 15% Others 53% CAGR: 8% Others 91% 53 40 Player 1 28% 15 19% 9% FY'13 FY'24 FY'26 FY'13 FY'24 FY'26
Slide 19: Opportunity: Homes – Convergence
Opportunity Homes – Convergence 50 Million High Value Homes Airtel already present in 2 of 3 high value homes + 1 Service Rs. 650 incremental ARPA
Slide 20: Opportunity: Mobile – ARPU Opportunity
Opportunity Mobile – ARPU Opportunity Lowest prices in India (compared to global benchmarks) ARPU (US$) $43.7 $34.8 $30.1 $20.3 $10.7 $6.3 $7.1 $1.8 $3.0 India Indonesia Thailand China Malaysia Korea Singapore US Canada • Airtel: ~$2.5 ARPU : ~9% ROCE. ~$3.0 ARPU : ~14% ROCE. ~$2.1Bn Incremental Rev
Slide 21: Opportunity: Mobile – Postpaid Opportunity
Opportunity Mobile – Postpaid Opportunity Current contribution lower than benchmark Pricing now favorable India Thailand Brazil Ratio : Postpaid to Prepaid Growth 2015 2 8% 44 70 Prepaid % 96 95 2018 3 0% 56 30 Today ? Postpaid % ~5 ~1.6 ~4 2019 2023 2023 2023 *Based on Global Wireless Matrix report
Slide 22: Opportunity: B2B – Big continue getting bigger (1/2)
Opportunity B2B: Big continue getting bigger. Adjacencies drive market growth (1/2) Market size (in Crores) 2012 2019 2023 CAGR: 6% CAGR: 15% 29,300 43,200 75,300 Top 500 CAGR: 2% CAGR: 10% Next 3000 8,100 9,500 14,100 CAGR: 5% CAGR: 1% SMB 6,900 10,000 10,600 Total market 44,300 62,700 100,000
Slide 23: Opportunity: B2B – Adjacencies drive market growth (2/2)
Opportunity B2B: Big continue getting bigger. Adjacencies drive market growth (2/2) Market size (in Crores) 2019 2023 Evolving product needs Market size (INR Cr) CAGR: 15% Core 28,600 43,200 75,300 Top 500 Cloud 45,500 CPaaS 10,700 CAGR: 10% IoT 5,700 Next 3000 9,500 14,100 Security 5,000 90%+ of gr
Slide 24: Opportunity: B2B – Go deeper into top accounts
Opportunity B2B: Opportunity to go deeper into top accounts Sharply targeting top accounts Proven track record ~37% Lifetime high market share 500 90% Top 500 accounts Of incremental growth
Slide 25: Agenda
Agenda Who are we The opportunity Our strategy
Slide 26: Our strategy
? airtel Our strategy Quality Customers
Slide 27: Quality Customers: Accelerate Homes
Quality Customers Accelerate Homes Land grab – accelerating Home Passes Ubiquitous coverage via FWA Lock-in Home entertainment ~32 Now Million FY’25 40 Million
Slide 28: Quality Customers: Drive Postpaid
Quality Customers Drive Postpaid Seamless upgrade Journey Lock-in with Family Stores: Expansion
Slide 29: Quality Customers: Differentiate
Quality Customers Differentiate
Slide 30: Quality Customers: B2B Retool
Quality Customers B2B Retool Revamped go-to-market Raising the game on execution From To Enterprise Farming Hunting and Farming Account planning excellence Channel Led Insourced Consistent experience delivery SME Locking-in with adjacencies SOHO Diffused accountability Ownership at Store Ubiquitous
Slide 31: Our strategy
? airtel Our strategy Quality Brilliant Customers Experience
Slide 32: Brilliant Experience: Largest portfolio of mid-band spectrum
Brilliant Experience Network: Largest portfolio of mid-band spectrum Our Portfolio Share of Spectrum Band Footprint Holding per Circle Player 3 Low Band Pan India 5 – 15 Mhz Airtel 27% 29% Mid Band Pan India 50 – 75 Mhz 10% 3.5 GHz Pan India 100 Mhz 35% Player 2 mmWave Pan India 800 Mhz Player 1 ~80
Slide 33: Brilliant Experience: Network footprint
Brilliant Experience Network: Footprint 4G coverage 5G coverage Towns All 7,900 towns All 7,900 towns Villages 8 lacs villages 1.4 lacs villages
Slide 34: 5G: Proven bet with NSA technology (1/2)
Brilliant Experience 5G: Proven bet with NSA technology (1/2) Non-Standalone (NSA) Standalone (SA) 5G band 5G band 4G band 4G band 4G Core 5G Core 4G Core + 30% higher coverage Proven benefits of NSA + Better experience + Lower capex + Lower carbon footprint
Slide 35: 5G: Proven bet with NSA technology (2/2)
Brilliant Experience 5G: Proven bet with NSA technology (2/2) Demonstrated in the market Won 5 out of 6 Open Signal awards
Slide 36: World class micro marketing
Brilliant Experience World class micro marketing Customer experience measured at 1 Million micro markets Insight into action for the frontline
Slide 37: Our strategy
? airtel Our strategy Quality Brilliant Customers Experience
Slide 38: Compelling Capabilities: Digital at the core
Compelling Capabilities Digital at the core • Industry leading Digital assets Digital services • One Customer. One Airtel. Omni channel Digital experience Digital infrastructure • $50B+ digital highway: data infrastructure
Slide 39: Digital Infrastructure: Data at the heart
Digital Infrastructure Data at the heart Strong Data team Capabilities Extracted Customer-360 with 2K+ attributes Data engineers Moment store with contextual triggers for upsell Data product specialists Data scientist AI models – e.g. recommendation engine, credit score
Slide 40: Digital Experience: Omni Channel Experience
Digital Experience Omni Channel Experience – One view of the customer “One Airtel” view of customer Platform-based architecture All channels App Web Mitra Airtel Work … Mobile Platforms Buy Bill Pay Serve Bank Broadband One Customer Platform DTH
Slide 41: Omni Channel Experience: One view of our go-to-market
Digital Experience Omni Channel Experience: One view of our Go-to-market From: A Business specific go-to-market To: A One Airtel go-to-market Traditional Trade MOBILITY Integrated Mass Retail channel Omni channel and Digital layer DISTRIBUTOR Traditional Trade. Modern Trade DTH DISTRIBUTOR Broadband
Slide 42: Several digital services that ride on our strengths
Digital Services Several digital services that ride on our strengths Financial Services Cloud Communication Cloud and Security Finance Data Centers Entertainment Payments Xstream
Slide 43: Our strategy
? airtel Our strategy Quality Brilliant Customers Experience
Slide 44: How should you look at Airtel India
How should you look at Airtel India FY 24 Immediate Goal Post ARPU (in INR) 209 (Q4) 300 Non-Mobile Contribution (%) 22% Expand EBITDA (INR Cr) 59,009 > Revenue growth Capex/Revenues (%) 30% Moderate Free Cashflow (INR Cr) 25,657 Strong cash generation Net Debt/EBITDA (times) 3.0 Meaningfully lower
Slide 45: Summary
Summary Well positioned as a portfolio : Businesses and Capabilities The opportunity is exciting and attractive A Proven Execution model with a cohesive and simple strategy Now at a cusp to become a strong digital services provider
Slide 46: Disclaimer
Disclaimer The information contained in this presentation is provided by Bharti Airtel Limited (the “Company”) to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part thereof