Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (April 2011)
29 slides from Bharti Airtel's investor presentation, April 2011
Slide 1: Investor Presentation
Investor Presentation Bharti airtel limited April 2011
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 – An Integrated Telco
The Company...Bharti airtel – An Integrated Telco Wireless Services Enterprise Services 2G Carriers Corporates 3G Rural Market Passive Infrastructure Services Infratel Telemedia Services Indus Fixed Line Broadband DTH IPTV Pay per view / HD Interactive Services including Gaming Fully integrated tele
Slide 4: The Company…Bharti airtel
The Company…Bharti airtel No. of circles (India) Today Countries 1 5 15 22 19 ‘ 1996 2001 2003 2004 2010 Fully integrated telecom player offering end to end solutions and entering new geographies
Slide 5: Growth trajectory reflected in the numbers
Growth trajectory reflected in the numbers 1996 2010 Single Circle Operator Company Profile Largest integrated private telecom operator < 25k Customers ~ 137 mn ~ USD 17 mn Revenue ~ USD 9 bn ~ USD 2.5 mn EBITDA ~ USD 4 bn ~ USD 1.4 mn Cash Profit ~ USD 4 bn ~ USD 16 mn Market Capitalization ~ USD 2
Slide 6: Revenue & Profitability trends
Revenue & Profitability trends Total revenues EBITDA 36% 5,000 CAGR 39% 10,000 8,776 CAGR 8,188 4,000 3,550 8,000 3,360 5,987 (In $ Mn) 3,000 2,519 (In $ Mn) 6,000 4,103 2,000 1,651 4,000 2,000 1,000 0 0 2007 2008 2009 2010 2007 2008 2009 2010 Years Years Cash profit from operations Net profit 2,500
Slide 7: Financials & Positioning
Financials & Positioning Key financial metrics Positioning in the world & in India 3rd LARGEST wireless operator in the world (1) FY 10 (in Mn) LARGEST private INTEGRATED telecom company in Customers 137.0 India Revenue $ 9,271 5th LARGEST INTEGRATED telecom operator in the EBITDA $ 3,714 world Cash
Slide 8: Latest Results – 3Q'11
Latest Results – 3Q’11 Key operating and financial metrics Continued Strong Performance Q3 FY 11* Y-on-Y Wireless CMS 20.3% Customers 207.8 mn 65.9.% Wireless RMS 31.2% Total MOU carried in Qtr 227.3 bn Revenue $ 3,516 mn 52.9% Balance sheet strength: EBITDA $ 1,112 mn 22.0% Assets $ 32.3 bn Cash Pr
Slide 9: Total Revenue (Rs.mn)
Performance dashboard - 3 line graph 160,000 80% 74% 152,150 157,560 150,000 71% 70% 63% 63% 72% Total Revenue (Rs.mn) 140,000 60% 130,000 122,308 50% 120,000 41.4% 42.7% 39.9% 45.7% 46.9% 40% 110,000 103,053 107,491 100,000 30% Q310 Q410 Q111 Q211 Q311 Total Revenue (Rs. Mn) (LHS) Opex to Total Rev
Slide 10: Wireless Services
v4) airtel Wireless Services
Slide 11: Indian Market
Indian Market Overall Telecom Market Wireless Market Sub Base c.791 mn Population 1.2 billion → Relatively large youth population Wireless Penetration c.66.34% Telecom penetration c.69.29% Operational metrics per month (~826.25 mn telecom subs) Usage per user 449 min Sub number should go upto 1 Bill
Slide 12: Rapidly Growing Indian Wireless Market
Rapidly Growing Indian Wireless Market Net Adds in Feb 20.2 Mn…lesser than over last 3 S-curve triggered months average run rate of 21.5 Mn Closing Subscribers Net Adds 90% 800 26 24 80% 700 22 70% 600 20 18 60% 500 16 50% (m n) 14 400 40% 12 300 10 30% 8 200 6 20% 4 100 10% 2 - - 0% N o v -0 3 M a
Slide 13: Wireless Market Structure in India
Wireless Market Structure in India Subscriber Trends Customer Market Share – CMS (%) 25% 180 23% 22.1% 159 160 21% 20.1% 140 132 131 125 19% 17.6% 16.7% 17.2% 120 17% 16.5% 99 97 96 99 100 87 88 15% (mn) 72 12.7% 80 13% 12.1% 12.5% 62 63 54 11.0%11.0% 11.1%11.2% 60 45 11% 34 33 34 40 24 25 24 9% 8.1
Slide 14: Airtel…Performance Indicators (Operational)
Airtel…Performance Indicators (Operational) Customers & Market Share Prepaid/Postpaid 22.7% 160 21.8% 24% 105% 21.5% 20.8% 20.3% 101.7% 120 20% 99.2% 100% 98.2% 97.5% 97.5% 95.8% 96.0% 96.1% 96.2% 80 16% 95.3% 143.3 152.5 95% 136.6 118.9 127.6 40 12% 90% 0 8% 85% Q310 Q410 Q111 Q211 Q311 Q310 Q410 Q
Slide 15: Current positioning and way forward…
Current positioning and way forward… Leadership Positioning Growth strategy and plans Revenue New Revenue Streams Revenue size Changing face of growth (>$ 9 Bn) through M-Com, M- Revenue Market Share entertainment & 3G Cost Net Adds Improving cost efficiencies Non financial Maximizing Driven by rura
Slide 16: Telemedia Services
Telemedia Services
Slide 17: A Snapshot
A Snapshot Largest private operator having presence in the voice , broadband , IPTV and data. Focus on SMB segment & Broadband at Homes Key Performance Indicators 1. Voice (wire-line) and Data (DSL) Presence in 87 top cities of India. 2. Target Segment : Retail and Small and Medium Enterprises. 3. C
Slide 18: Enterprise Services
Enterprise Services
Slide 19: A Snapshot
A Snapshot Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers Corporates: Single point of contact for all telecommunication needs for Top 2500 corporate customers, providing full suite of voice, data, and managed communications solutions Carriers: Wh
Slide 20: Emerging Growth Engines: Passive Infra, Africa
Emerging Growth Engines Passive Infra Africa
Slide 21: Financial Performance – Passive Infra
Financial Performance – Passive Infra Revenue EBITDA 200 34.0 37.1 35.5 37.1 38.6 500 490 189 471 180 175 450 438 160 431 160 155 394 400 140 134 350 120 300 100 Q310 Q410 Q111 Q211 Q311 Q310 Q410 Q111 Q211 Q311 Focus on tenancy enhancement…driving Revenue & Profitability The above nos for Revenue &
Slide 22: Operational Performance – Passive Infra
Operational Performance – Passive Infra Infratel Indus Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor 33,000 1.68 1.70 109,000 1.80 1.90 1.65 1.78 1.65 1.75 1.80 107,000 1.71 32,000 1.62 1.66 1.70 1.60 105,000 31,000 1.57 1.60 103,000 32,424 107,789 1.50 30,000 31,831 106,438 31,196 1.5
Slide 23: Transaction Rationale
Transaction Rationale Shareholding and 100% Cash Transaction Management Control Global Focus on Core Brand – ‘Airtel’ Middle East Operators Stature Clean / Emerging Market certainty Characteristics of transaction Strong Platform for Future Expansion Low Competitive Manageable Intensity Deal Size Div
Slide 24: Differences between the two markets
Differences between the two markets India Africa(1) Mobile Penetration 66% 40% Average Number of 10-12 3-5 Competitors Business Model High usage, low pricing model Low usage, high pricing model Minutes of Usage ~449 ~120 ARPU (US$) ~$4 ~$7 ARPM (US cents ¢) 1¢ 6¢ And therefore huge opportunity space
Slide 25: Africa – Strong Platform
Africa – Strong Platform Airtel Africa Coverage Addressable Market Opportunity Population, 2009 (mn) Population, 2009 (mn) Airtel Africa Total Africa: 450mn 1,025mn 575 450 Airtel Africa Footprint Other African Countries Penetration, 2009 Leading African Operators Telecom Operators by Subs in Africa
Slide 26: Another Growth Engine - Africa
Another Growth Engine - Africa Customer Base : 42.12 Mn Performace Indicators (CY 2009): Revenue: $ 3,667 Mn EBITDA: $ 1,160 Mn Prepaid Base: 99.3% →one of the highest in the world Usage per sub per month: 120 Minutes →one of the lowest ARPU: ~ US$ 7.3 Rate per minute: ~ US¢ 6.1 → one of the highest
Slide 27: Recent Honors
Recent Honors
Slide 28: Bharti airtel – Leadership in business
Bharti airtel – Leadership in business Recent Honours NDTV Profit Business Leadership Awards 2010 Top Telecom Company Sunil Bharti Mittal - Business Innovator of the Year India’s Most Innovative company - Wall Street Journal Most Preferred Cellular Service Provider - 2010 CNBC Awaaz Consumer Awards
Slide 29: thank you
thank you D