Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Singtel Investor Day 2016
20 slides from Bharti Airtel's conference presentation, May 31, 2016
Slide 1: Presentation to the Investors cover letter to stock exchanges
bhartt May 31, 2016 National Stock Exchange of India Limited Exchange Plaza, C-1 Block G Bandra Kurla Complex, Bandra (E) Mumbai — 400051 BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai ~ 400001 Ref: Bharti Airtel Limited (532454 / BHARTIARTL) Sub: Presentation to the Investors Dear Sir/ M
Slide 2: Management Presentation – Singtel Investor Day
Bharti Airtel Management Presentation – Singtel Investor Day
Slide 3: 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 4: What Guides Us
What Guides Us Customer Centricity • Win customers for life through differentiated experience, products and world class technology Performance Excellence • Growth despite challenges • Grow market share, strip out waste • Accelerate non-mobile businesses Transparency & Ethical Governance • Highest co
Slide 5: Investment Highlights
Investment Highlights 1 Large residual opportunity 2 Bulk investments in place; good spectrum bank 3 Diversified operator with scale and dominance in marketplace 4 Best in class execution 4
Slide 6: 1. Large Residual Opportunity
1. LARGE RESIDUAL OPPORTUNITY Voice Secularity • Under-penetrated geographies • Unique mobile users at c. 50% of total SIMs (large dual-SIM user base) • Declining age dependency • Industry consolidation, top 3 operators account for 75% RMS Data • India mobile broadband (3G/4G) penetration under 13%
Slide 7: 2. Bulk Investments in Place
2. BULK INVESTMENTS IN PLACE Spectrum Bank • Successful re-farming of sub-GHz spectrum for 3G • 3G gap circles covered • 4G coverage pan-India Largest network of towers and base stations • 95.6% voice population coverage • Mobile broadband towers up 2.3x over the last year Largest network of optic f
Slide 8: India: Superior Spectrum Position
Investments India: Superior Spectrum Position Spectrum Industry Industry Spectrum Spectrum held Bharti spectrum Band Spectrum ex BSNL/MTNL by Bharti Market Share ex Pan India 4G, 3G available in 21 circles (MHz) (MHz) (MHz) BSNL/MTNL 900 421.0 282.8 110.2 39.0% 3G sub-Ghz available in 10 circles
Slide 9: Africa: Invested for Growth
Investments Africa: Invested for Growth 2010 2016 Capex Investments till date: $ 5.0 bn Well funded out of EBITDA: $ 5.8 bn till date Thus OFCF = $ 0.8 bn Further focus on business re-contouring Tower Sales in 9 countries Already received: $ 1.8 bn To be closed: $ 0.5 bn - $ 0.7 bn (indu
Slide 10: 3. Airtel: Diversified with Scale Operator
3. AIRTEL: DIVERSIFIED WITH SCALE OPERATOR Profitability and scale across diversified segments • Dominant position to capitalize with bulk investments in place • Only operator with diversified portfolio • Scale leading to operating leverage • Generating c. $1 bn yearly organic free cash Leadership a
Slide 11: Scale brings Operating Leverage
Scale Scale brings Operating Leverage Overview Consolidated Revenues ($ Mn)1 15,000 14,742 Presence in 20 countries 14,500 14,056 #3 Operator in the World 14,000 13,500 #1 in India & #1 or #2 in 14 countries in Africa 13,000 13,095 US$ 14.74 bn Revenue 12,500 US$ 5.22 bn EBITDA 12,000 11,7
Slide 12: 4. Best in Class Execution
4. BEST IN CLASS EXECUTION Go to Win with a Win with War on Win with Market Brilliant Valuable Waste People Excellence Network Customers Experience VibrantVibrant Digital Airtel, Brand Brand 11
Slide 13: Strategic Pillars: Go to Market Excellence
Execution Strategic Pillars: Go to Market Excellence Game changing innovations Creating opportunities • Night cash back, night plans – Reduced rates during night usage • Myplan – Customized plans as per customer usage • Family – Tailor made plan and share benefits with family • Infinity – Options wi
Slide 14: Fastest Growing Data Business in India
Execution Fastest Growing Data Business in India Data as a % of Mobile revenues First brand to own and launch 4G in India 4G services Pan India post spectrum deals with Aircel Q4'15 6.10% 17.60% Other Non and Videocon Voice Non Q1'16 6.10% 19.20% Data 4G at 3G prices Q2'16 5.90% 21.50% Data %
Slide 15: Strategic Pillars: Win with Brilliant Network Experience
Execution Strategic Pillars: Win with Brilliant Network Experience Eliminate frustration Invest in tools An open network Blocked calls Repeat calls Dropped calls Frustration index Capex Outflow FY’16 (mn) Guidance (bn) Largest capital expenditure of Rs. 60,000 crore over 3 years India & SA $2,379
Slide 16: Strategic Pillars: Win with Valuable Customers
Execution Strategic Pillars: Win with Valuable Customers 205 6.1% 6.0% 5.9% 6.0% 200 5.9% 195 5.8% 5.8% 190 5.7% 185 5.6% 200 Airtel India: Postpaid 196 5.6% subscriber base inching up, 193 180 Data ARPU up 12% YoY 5.4% 5.5% 175 181 5.4% 176 170 5.3% Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Data ARPU Post Pa
Slide 17: Strategic Pillars: War on Waste
Execution Strategic Pillars: War on Waste 1.2 44.30% 44.50% Opex to Total Revenues 44% 43.90% • Increasing Opex 44.00% 1 Productivity 43.50% 0.8 43.0% • Smart procurement 43.3% 43.2% 43.00% 43.1% • Frugal cost structure 0.6 42.50% 42.00% • Maximizing sharing 0.4 41.8% 41.50% • Network re-design 0.2
Slide 18: Leader in India Revenue Market Share
Execution Leader in India Revenue Market Share1 32% 23% 19% 5% 6% 6% 6% 2% 1% Airtel Vodafone Idea (Incl Reliance BSNL+MTNL Tata Tele Aircel Uninor Others Spice) 32.1% 31.9% 31.9% 31.7% 31.6% 31.5% Airtel 31.3% 31.1% 31.6% Incremental 31.1% revenue market share 30.9% 30.7% 55.2% YoY 30.7% 30.5% Q3FY
Slide 19: Balance Sheet Focus
BALANCE SHEET FOCUS Diversified debt profile; focus on deleveraging Over last 3 years: Leverage: Net Debt to EBITDA down from 3x to 2.5x 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 diversificat
Slide 20: Thank You
THANK YOU