Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (March 2019)
25 slides from Bharti Airtel's investor presentation, March 2019
Slide 1: Bharti Airtel Investor Presentation March 2019
Bharti Airtel Investor Presentation March 2019
Slide 2: Bharti Airtel: Who Are We
Bharti Airtel: Who Are We Presence in Highest standards of Second 18 16 Corporate largest telecom countries 2 serving countries 1 serving over Governance – ranked operator in the world1 404 around mn457 customers mn #1 by Transparency customers International Our Guiding Strategy Customer Performance
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 ~42.5%2 Mobile Broadband 250mn households Penetration ~0.7 bn unique wireless < 10% connected customers Mobile data3 traffic to grow 6-fold from Household disposable Rural Tele-Density income rising 2017 to 2022 ~
Slide 6: Opportunity in African Telecom
Opportunity in African Telecom WIRELESS SMARTPHONE MOBILE BANKING2 DATA TRAFFIC 3 PENETRATION1 Banking Penetration low Mobile data traffic 1.2 Bn Population Mobile Broadband expected to see a more (Airtel Africa covers Connections to reach 87% than 10-fold increase by ~600 Mn Population) of total co
Slide 7: No. 2 operator in India Revenue Market Share
No. 2 operator in India Revenue Market Share1 ~$18.5 Bn Indian Telecom Industry 1.176 Bn total wireless subscribers in India 31.4% 30.0% 29.7% 5.9% 1.9% 1.1% Voda Idea Airtel Reliance Jio BSNL + MTNL Tata Teleservices RCom 1. #2 operator after merger of Vodafone and Idea. RMS is calculated on the ba
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% <20% Orange Malawi 250 2 1 >40% >40% TNM Madagascar 170 3 1 30-40% <20% Orange, Telma Nigeria 4,710 6 2 20-30% >40% MTN K
Slide 9: Diversified portfolio
Diversified portfolio Revenue Split by segments1 EBITDA Split by segments Africa, 26.1% Wireless India Africa 29.5% 33.0% Wireless India, 45.0% South Asia, 0.5% Towers, 7.7% Homes South Asia 3.9% Airtel 0.1% Digital Services Business, Towers 5.8% 13.7% Airtel Business Digital Homes, 2.4% 12.9% 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 175.3 163.8 160.2 2.25 1.99 165 Total 113 1.51 130 tower count (‘000) Q3'17 Q3'18 Q3'19 Mobile Broadband Towers Total Mobile Towers Mobile Broadband Base Stations per Mobile Broadband Tower National long distance fiber –over 273,600 RKms1 Global sub-sea cable network of over
Slide 12: Africa: Invested for Growth
Africa: Invested for Growth Abundant spectrum across operations Mobile broadband towers (‘000) – Africa Frequency Band (Mhz) 20,582 OPCO 800 900 1800 1900 2100 2600 2300 3500 Total 19,054 1.88 Zambia 10 20 20 50 Total Niger 10 10.2 18 15 53 15,734 Malawi 11.6 19.8 10 30 71 12,933 tower Madagasc 1.30
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 Average Data Usage per unique data subscriber per month– GSM (2G+3G+4G LTE+CDMA) : 8.32GB as of Sept’18 1 GSM data and voice consumption is increasing Explosion of Data – Spurt in 3,216 2,447 volumes and smartphone shipments 1,955 1,610 1,256 SIM Consol
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 12.5% 15.7% 16.9% 19.8% 27.1% Customer Base Drive upgrades through device 77,068 partnerships and 65,731 offers 58,281 47,862 Lock-in customers 36,367 through postpaid and loyalty programs Q3'18 Q4'18 Q1'19 Q2'19
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 120 platforms to drive new Leverage Customer 360, 102 112 92 revenues. training a
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 2.25 1.99 Q3'18 Q3'19 Bharti Air
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 (%) 305 317 853 37.2% 289 37.1% 824 794 277 36.4% 772 272 767 35.9% 35.5% Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Operating Free Cash Flow (USD Mn) PBT (USD Mn) 113 121 120 240 106 197 200 147 69 27
Slide 23: While maintaining highest standards of Corporate Governance
While maintaining highest standards of Corporate Governance Ranked in ‘Top 10’ (out of India’s top 100 companies) on Indian Corporate 1 Governance Scorecard. Ranked amongst the “Forbes’ list of 100 most innovative companies in 2 the world” for 2017. Won the prestigious “Golden Peacock Award for Corp
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