Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Day (2017)
20 slides from Bharti Airtel's investor day presentation, 2017
Slide 1: Bharti Airtel Management Presentation – Singtel Investor Day
Bharti Airtel Management Presentation – Singtel Investor Day
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: 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 4: Investment Highlights
Investment Highlights 1 Large residual opportunity 2 Bulk investments already in place; good spectrum bank 3 Diversified operator with scale and dominance in marketplace 4 Demonstrated best in class execution With enabling Financial Flexibility & Balance Sheet Focus 4
Slide 5: 1. Large Residual Opportunity
1. LARGE RESIDUAL OPPORTUNITY S- Curve on Data • India mobile broadband (3G/4G) penetration at ~20%1 • Smartphone shipments show tremendous growth. Smartphone penetration at 24%2 • Data traffic to grow by a CAGR of 63% over the period 2015 - 20202 • Declining age dependency3 • Industry consolidation
Slide 6: 2. Bulk Investments in Place
2. BULK INVESTMENTS IN PLACE Spectrum Bank • Successful re-farming of sub-GHz spectrum for 3G • 3G/4G coverage pan-India • Highest spectrum market share ex-MTNL/BSNL • Largest capacity per site Largest network of towers and base stations • 95.3% voice population coverage • Mobile broadband sites up
Slide 7: India: Superior Spectrum Position
India: Superior Spectrum Position Spectrum holdings across bands; % of own revenues covered1 100% 4G multi band coverage 22 22 22 20 10 8 No. of circles present in 100 100 100 94 50 45 4G (1800) 4G (2300) 4G (1800 & 2300) 3G (2100) 3G (900) 3G (900 & 2100) 3G (900/1800) xx % of own revenues covered
Slide 8: Fast growing data business
Fast growing data business First brand to own and launch 4G in India Mobile broadband base stations (‘000) - India 3G and 4G Pan India 20000% Rated as India’s fastest 4G network 18000% 65.0% Annual data revenues c. $2 bn (India) - 16000% 55.0% 191 45.0% from $1.2bn in 2015 14000% 171 12000%
Slide 9: Africa: Invested for Growth
Africa: Invested for Growth 2010 4Q’17 Capex Investments till date: $ 5.4 bn Well funded out of EBITDA: $ 6.6 bn till date Thus OFCF = $ 1.2 bn Further focus on business re-contouring Tower Sales in 10 countries Divestment of 2 countries to Orange Announced merger of Ghana operations wit
Slide 10: 3. Airtel: Diversified Operator with Significant Scale
3. AIRTEL: DIVERSIFIED OPERATOR WITH SIGNIFICANT SCALE Profitability and scale across diversified segments • Dominant position to capitalize with bulk investments in place Allowing Airtel • Only operator with diversified portfolio the best • Scale leading to operating leverage, best EBITDA margin in
Slide 11: 4. Strategic Pillars for Execution
4. Strategic Pillars for Execution Grow share More Win with a Accelerate of high Products Brilliant Non War on ARPU per Existing Customer Wireless Waste customers Customer Experience Businesses A B C D E Vibrant Win withBrand People 11
Slide 12: A. Grow share of high ARPU customers
A. Grow share of high ARPU customers Post-Paid (as % of total Customer Base) Mobile Broadband Customer as a % of total data customers 1 6.6% 6.4% 74% 1 6.3% 6.2% 1 6.0% 69% 6.0% 66% 5.8% 1 5.6% 62% 61% 0 5.4% 5.4% 5.2% 0 5.0% 4.9% 0 4.8% Q4'14 Q4'15 Q4'16 Q4'17 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Bundle
Slide 13: B. More Products per Existing Customer
B. More Products per Existing Customer Game changing innovations Creating opportunities • Unlimited voice packs, huge data benefits, no bill shocks on roaming • Simplified Pricing. From 6500 Postpaid plans to • Myplan – Customized plans as per customer usage • Infinity – Options with unlimited benef
Slide 14: C. Win with Brilliant Network Experience
C. Win with Brilliant Network Experience More than doubled mobile broadband base stations in the last 2 years compared with last 20 years! Eliminate frustration Invest in tools An open network Blocked calls Repeat calls Dropped calls Frustration index FY’18 Capex Outflow FY’17 (Bn) Guidance Larg
Slide 15: D. Accelerate Non-Mobile Businesses
D. Accelerate Non-Mobile Businesses Non-Wireless Revenues India Revenue split by segments Rs Mn SA, 0.4% EBITDA Margin EBITDA Growth FY’2017 Y-o-Y Africa, 21.2% 232,082 48% 11% Tower Co, 60,829 Tower Co, 6.7% Wireless India, Airtel Business, 54.4% 31% 12% 109,429 Airtel Business, 10.8% DTH, 3.6% DTH
Slide 16: E. Win with War on Waste
E. Win with War on Waste Opex Growth YoY EBITDA % 37.3% 4.7% 2.8% 35.4% 34.2% 2015 2016 2017 -3.8% 2015 2016 2017 Increasing Opex Productivity Smart procurement Frugal cost structure Maximizing sharing Network re-design Divestment of towers Source: Company Filings Note: 2015 numbers are based on IFR
Slide 17: Enhancing India Revenue Market Share
Enhancing India Revenue Market Share1 RMS1 36% 23% 19% 4% 5% 6% 6% 1% Airtel + Telenor Vodafone Idea (Incl Spice) Reliance BSNL+MTNL Tata Tele Aircel Others Airtel 32.9% 33.1% RMS2 32.7% 31.6% 31.6% Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 1. RMS is calculated on the basis of gross revenues. RMS is as of 9M’17
Slide 18: Financial flexibility & Balance Sheet Focus
Financial flexibility & Balance Sheet Focus Diversified debt profile; focus on deleveraging Over last 3 years: Leverage: Net Debt (ex-DOT) to EBITDA down from 2.51x as of Mar 2013 to 1.36. Net debt to EBITDA (LTM) including DOT debt stands at 2.62 Average Maturity: Average tenors pushed out from 2 y
Slide 19: Investment Highlights
Investment Highlights 1 Large residual opportunity 2 Bulk investments already in place; good spectrum bank 3 Diversified operator with scale and dominance in marketplace 4 Demonstrated best in class execution With enabling Financial Flexibility & Balance Sheet Focus 19
Slide 20: Bharti Airtel Investor Day
Management Presentation – Singtel Bharti Airtel Investor Day