Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Conference Presentation (September 2015)
22 slides from Bharti Airtel's conference presentation, September 2015
Slide 1: Bharti Airtel Investor Conference Presentation – Sep 2015
Bharti Airtel Investor Conference Presentation – Sep 2015
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: Bharti Airtel
Bharti Airtel 2.02 bn Addressable Population 4 Present in US$15.1 bn 20 Countries Revenue 3 #1 Operator In India 1 #2 Operator #3 Operator In Africa 5 in the World 1 #3 in-country wireless service operator in the world 2 Source: TRAI and Informa Telecoms and Media Notes: 1. As of Mar 31, 2015 2. Bas
Slide 4: The Leading Indian Wireless Operator
The Leading Indian Wireless Operator 24% Wireless Subscriber Market Share1 31.3% Wireless Revenue Market Share2 Others, 3.6% Aircel, 5.6% Customer Market 24% 19% 16% 11% 8% 8% 6% 7% Tata, 6.8% Share 229 BSNL + MTNL, 185 4.9% Airtel, 31.3% 160 RCom, 5.6% 109 83 81 62 67 Idea, 18.7% Vodafone, 23.3% Bh
Slide 5: Q1'16 Highlights
Q1’16 HIGHLIGHTS • India – Broad based revenue growth across mobile, DTH, enterprise segments – Industry leading net subscriber additions, incremental RMS – Mobile revenue up 12.2% YoY – Data volumes up 83.4%, Data ARPU up 30% YoY – Voice volumes grew 7.4% YoY • Africa – Revenue growth 4.4% YoY (ex
Slide 6: Investments, Opportunities & Results
INVESTMENTS, OPPORTUNITIES & RESULTS
Slide 7: India: Investments To Yield Results
Investments India: Investments To Yield Results Industry Prime Nominal Wide Largest leading spectrum to Value of spectrum optical fiber revenue2 yield data liberalized presence: network yield/MHz at growth: spectrum at 16.1%3 amongst 2x avg with Virtually Pan USD 12 spectrum private same India 3G &
Slide 8: India: Strong Spectrum Position
Investments India: Strong Spectrum Position Bharti Airtel’s Spectrum Position Spectrum Holdings Spectrum Industry Industry Spectrum Spectrum held Bharti spectrum Spectrum across 900/1800/2100/2300 bands, more or Band Spectrum ex BSNL/MTNL by Bharti Market Share ex less fungible across technologies
Slide 9: Africa: Invested for Growth
Investments Africa: Invested for Growth Market Position Number of Countries 2010 2015 #1 8 #2 6 #3 3 Capex Investments till date: $ 4.5 bn Well funded out of EBITDA: $ 5.2 bn till date Thus OFCF = $ 0.7 bn Further focus on business re-contouring Tower Sales in 10 countries Already received
Slide 10: India: Growth Lever: Voice Secularity
Opportunities India: Growth Lever: Voice Secularity Volume Growth Value Growth Strong net additions and volume growth Significant gap between realized and rack rates Carries over 1 trillion minutes 1 paisa upside adds over $200 mn to top line Secular Volume growth Y-o-Y Significant headroom for valu
Slide 11: Africa: Opportunity and Strategic Pillars
Opportunities Africa: Opportunity and Strategic Pillars Customer growth with quality adds as focus Mobile Penetration(%) Number of Countries < 60% 8 Stronger data network rollout, 60% - 90% 6 thus garnering higher incremental RMS > 90% 3 Mobile devices are the main means with which Airtel money ad
Slide 12: Major Momentum for Data Growth
Opportunities Major Momentum for Data Growth Mobile Subscriptions, India (million) 1 Driving 2G to 3G Growth 2 India is expected to have one of the fastest growth rates in the data segment driven by low cost mobile handsets and new technologies (3G/4G) Notes: 1. Ericsson Mobility Report 2015 2. Noki
Slide 13: 4G Services Launched
Opportunities 4G Services Launched Key to tap into the data opportunity Launched in 296 cities in India on mobiles, mifi, dongles, home wifis 4G launch Africa in the Seychelles, Gabon, Rwanda Unmatched value Innovative Mega Airtel 4G brand and seamless alliances campaign customer experience • Airtel
Slide 14: India: Significant Upside From 'Data'
Results India: Significant Upside From ‘Data’ Bharti Airtel’s Non Voice Revenues as a % of Volumes doubling YoY (bn MBs) Mobile Revenues 1 83% YoY 102.0 86.6 30% 77.3 25% 67.7 55.6 20% 15% 10% 5% 0% Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Data Revenue Other Non Voice Non Data Revenue Annualized data reve
Slide 15: Africa: Data and Mobile Money Are The Stars
Results Africa: Data and Mobile Money Are The Stars Data Customer Base (‘000s) Volumes up 112% YoY (Mn MBs) 32% YoY 13,039 12,289 112% YoY 13,843 11,242 9,882 11,049 11,256 9,475 8,061 6,541 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 3G sites up 50% YoY 1 Mobile Money: Tra
Slide 16: Increasing High Value Customers
Results Increasing High Value Customers 203 202 202 5.7% 198 198 198 5.6% • Postpaid Myplan for customers and enterprise 193 5.6% 5.5% 5.4% 5.4% • Extended Myplan for prepaid customers 5.4% 5.3% 183 5.3% 5.2% • Expand company owned retail stores 5.1% 5.1% 173 • Strengthen DTH & Enterprise businesses
Slide 17: Focus On Efficient Utilization Of Opex/Capex
Results Focus On Efficient Utilization Of Opex/Capex 238,000 236,709 90.00% Capex Outflow Q1’16 (mn) Guidance (bn) 77.70% 76.60% 78.90% 77.40% 236,000 80.00% India & SA $479 $2.2 - $2.3 76.20% 70.00% 234,000 Africa $150 $0.7 - $0.8 232,171 60.00% 232,000 44.30% 44% 43% 43.10% 50.00% 230,000 40.00% 4
Slide 18: Driving increased Profitability
Results Driving increased Profitability • 170 bps expansion in EBIT margins YoY • Incremental EBITDA margins at 70% YoY • Scale and Profitability across diversified segments • Among Top 3 in every non-mobile segment (TowerCo, DTH, Telemedia, B2B) • 37% of consolidated EBITDA comes from businesses ot
Slide 19: Strong Corporate Profile
ry, airtel STRONG CORPORATE PROFILE
Slide 20: Diversified debt profile; focus on deleveraging
Diversified debt profile; focus on deleveraging Over last 3 years: Leverage: Net Debt to EBITDA down from 3x to 2x Average Maturity: Average tenors pushed out from 2 years to 6 years Diversified debt mix: 100% bank to a mix of bonds, bank, ECA and DoT debt Currency diversification: 75% USD to a mix
Slide 21: 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 22: Thank You
THANK YOU
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