Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (November 2018)
25 slides from Bharti Airtel's investor presentation, November 2018
Slide 1: Bharti Airtel Investor Presentation November 2018
Bharti Airtel Investor Presentation November 2018
Slide 2: Bharti Airtel: Who Are We
Bharti Airtel: Who Are We Presence in Highest standards of Third 18 16 Corporate largest telecom countries 1 countries 1 serving serving over Governance – ranked operator in the world 448 around mn457 customers mn #1 by Transparency customers International Our Guiding Strategy Customer Performance T
Slide 3: Bharti Airtel: Investment Rationale
Bharti Airtel: Investment Rationale Presence in underpenetrated markets of India and Africa with large 1 residual opportunity 2 Leading operator with scale and diversified businesses across markets Bulk investments already in place; best in class spectrum bank in 3 markets of operations 4 Demonstrat
Slide 4: India & Africa - Mobile Market
India & Africa - Mobile Market One of the fastest growing economic zone in the world 2nd largest telecom 444 Million2 mobile subscribers market in the world in 2017. Expected to grow to 634 nd 2 largest smartphone Million by 2025. market in the world nd Mobile broadband 2 highest interne
Slide 5: Opportunity in Indian Telecom
Opportunity in Indian Telecom WIRELESS WIRELESS DATA WIRED BROADBAND 1.3 bn population ~39.7%2 Mobile Broadband 250mn households Penetration ~0.7 bn unique wireless < 10% connected customers Mobile data3 traffic to grow 7-fold from Household disposable Rural Tele-Density income rising 2016 to 2021 C
Slide 6: Opportunity in African Telecom
Opportunity in African Telecom WIRELESS SMARTPHONE MOBILE BANKING2 DATA TRAFFIC 3 PENETRATION1 Banking Penetration low Mobile data traffic to 1.2 Bn Population Smartphone penetration to grow by a CAGR of 66% (Airtel Africa covers reach 50% by 2020 over the period of 547 Mn Population) Mobile money s
Slide 7: No. 2 operator in India Revenue Market Share
No. 2 operator in India Revenue Market Share1 ~$18.5 Bn Indian Telecom Industry 1.169 Bn total wireless subscribers in India 32.8% 30.9% 26.1% 7.0% 2.2% 0.8% Voda Idea Airtel Reliance Jio BSNL + MTNL Tata Teleservices RCom Airtel’s strength across Rank4 No. of Circles telecom circles in India 1 10 2
Slide 8: Leading presence in Africa
Leading presence in Africa Market size Key Telecom Country Our Position Airtel RMS % EBITDA range Key competitors (mn $) operators Zambia 480 3 2 >40% >40% MTN Niger 330 3 1 >40% >40% Orange Malawi 225 2 1 >40% >40% TNM Madagascar 195 3 1 30-40% 20-30% Orange, Telma Nigeria 4,710 6 2 20-30% >40% MTN
Slide 9: Diversified portfolio
Diversified portfolio Revenue Split by segments1 EBITDA Split by segments Africa, 24.9% Africa Wireless India 30.8% 31.5% Wireless India, South Asia, 45.2% 0.5% Towers, 7.6% South Asia 0.0% Homes 4.3% Towers 11.7% Digital Services Airtel Business, Digital Airtel Business 5.8% 14.8% Homes, 2.5% Servi
Slide 10: Investing for growth – Spectrum Holding
Investing for growth – Spectrum Holding Airtel’s Spectrum Share of total spectrum Aircel Band Footprint Holding per Circle BSNL 4.9% 14.8% RCom Airtel 2 Low Band 15 Circles 5 – 10 Mhz 5.7% 29.9% 1 Mid Band Pan India 15 – 25 Mhz Jio 16.7% 27.9% High Band Pan India 20 – 30 Mhz Voda + Idea 1. Except fo
Slide 11: Aggressive Network Build
Aggressive Network Build 171.0 158.9 163.0 2.2 1.8 154.5 123.2 Total 110.4 1.3 tower count (‘000) Q2'17 Q2'18 Q2'19 Mobile Broadband Towers Total Mobile Towers Mobile Broadband Base Stations per Mobile Broadband Tower National long distance fiber –over 263,507 RKms1 Global sub-sea cable network of o
Slide 12: Africa: Invested for Growth
Africa: Invested for Growth Abundant spectrum across operations Mobile broadband towers (‘000) – Africa Frequency Band (Mhz) 20,060 18,926 OPCO 800 900 1800 1900 2100 2600 2300 3500 Total 1.72 Zambia 10 20 20 50 15,280 Total Niger 10.2 18 15 43 12,709 Malawi 11.6 19.8 10 30 71 tower Madagasc 1.23 co
Slide 13: Strategy India
STRATEGY INDIA
Slide 14: Pillars of India Strategy
PILLARS OF INDIA STRATEGY Win the 4G Win with Build New Win with Win with game brilliant Revenues War on People decisively Network Waste Experience Bharti Airtel Limited 15
Slide 15: Indian telecom market dynamics is changing
Indian telecom market dynamics is changing 1 GSM data and voice consumption is increasing Explosion of Data – Spurt in 2,447 3,216 1,955 volumes and smartphone shipments 1,610 1,256 884 1,006 SIM Consolidation 495 584 608 381 377 366 360 405 428 437 134 143 236 Mar'16 Jun'16 Sept'16 Dec'16 Mar'1
Slide 16: Win the 4G Game decisively
Win the 4G Game decisively Win the primary 4G 4G Customer Base SIM Slot As a % of Total 10.4% 12.5% 15.7% 16.9% 19.8% Customer Base Drive upgrades through device 65,731 58,281 partnerships and 47,862 offers 36,367 28,306 Lock-in customers through postpaid and loyalty programs Q2'18 Q3'18 Q4'18 Q1'19
Slide 17: Brilliant Network Experience
Brilliant Network Experience Capex - India (Rs. Mn) 239,682 240,000 151,655 169,231 118,069 Future proof network across access, transport and core layers. FY15 FY16 FY17 FY18 FY19 E Average 4G data speeds by Operator in India (Mbps) 10.1 Airtel rated as India’s fastest mobile 8.3 6.7 6.9 network by
Slide 18: Build New Revenues
Build New Revenues Build the largest Music Rapidly grow homes and TV service in India. through broadband and DTH expansion Wynk and Airtel TV Customers (Mn) Accelerate SME through Launch enterprise GTM re-invention and 102 112 platforms to drive new Leverage Customer 360, 92 79 revenues. training an
Slide 19: War on Waste
War on Waste Drive Opex Savings Improve Capex Productivity • Process Re-engineering • Infrastructure Sharing • Digitization and Automation • Smart Procurement • Business Simplification • Adopting Disruptive Technologies Mobile broadband BTS per mobile broadband tower 1.8 2.2 Q2'18 Q2'19 Bharti Airte
Slide 20: Strategy Africa
STRATEGY AFRICA
Slide 21: Pillars of Africa Strategy
PILLARS OF AFRICA STRATEGY Win with Win with Win with Win with Win with more Mobile Network right cost People customers Money and design Data Growth Key Enablers Bharti Airtel Limited 22
Slide 22: Airtel Africa on solid footing
Airtel Africa on solid footing Gross Revenues (USD Mn) EBITDA (USD Mn) and Margin (%) 305 824 277 289 272 37.1% 246 36.4% 794 35.9% 35.5% 767 772 743 33.1% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Operating Free Cash Flow (USD Mn) PBT (USD Mn) 121 240 113 106 196 197 200 69 47 27
Slide 23: While maintaining highest standards of Corporate Governance
While maintaining highest standards of Corporate Governance Ranked #1 by Transparency International for highest standards of Corporate 1 Governance Ranked amongst the “Forbes’ list of 100 most innovative companies in 2 the world” for 2017. Won the prestigious “Golden Peacock Award for Corporate 3 Su
Slide 24: Airtel: Financial flexibility & Balance Sheet Focus
Airtel : Financial flexibility & Balance Sheet Focus Focus on deleveraging: Actions undertaken since 2012 Infratel IPO and Allotment of 5% Sale of 2 Opcos to DTH stake sale to Africa tower sales subsequent stake stake of Airtel to Orange Warburg Pincus selldowns QFE Diversified debt profile Leverage
Slide 25: Thank You
THANK YOU
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