Bharti Airtel Limited · NSE:BHARTIARTL
Bharti Airtel — Investor Presentation (August 2018)
26 slides from Bharti Airtel's investor presentation, August 2018
Slide 1: Bharti Airtel Investor Presentation August 2018
Bharti Airtel Investor Presentation August 2018
Slide 2: Bharti Airtel: Who Are We
Bharti Airtel: Who Are We Presence in Highest standards of #1 Corporate Third 16 operator in India2 Governance – ranked largest telecom countries1 serving and operator in the #2 #1 by Transparency world around mn 457 International customers operator in Africa3 Our Guiding Strategy Customer Performan
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 ~36.6%2 Mobile Broadband 250mn households Penetration ~0.7 bn unique wireless < 10% connected customers Mobile data3 traffic to grow 7-fold from Household disposable Rural Tele-Density income rising 2016 to 2021 C
Slide 6: Opportunity in African Telecom
Opportunity in African Telecom WIRELESS SMARTPHONE MOBILE BANKING2 DATA TRAFFIC 3 PENETRATION1 Banking Penetration low Mobile data traffic to 1.2 Bn Population Smartphone penetration to grow by a CAGR of 66% (Airtel Africa covers reach 50% by 2020 over the period of 547 Mn Population) Mobile money s
Slide 7: Leader in India Revenue Market Share
Leader in India Revenue Market Share1 34.1% ~$20 Bn Indian Telecom Industry 1.131 Bn total wireless subscribers in India 31.8% 21.0% 19.8% 16.5% 7.7% 1.2% 1.1% 0.8% Airtel Tata Teleservices Telenor Vodafone Idea Cellular Reliance Jio BSNL + MTNL RCom Rank4 No. of Circles Airtel’s strength across 1 1
Slide 8: And Customer Market Share..
And Customer Market Share.. 43.9% 32.8% 32.9% 22.7% 23.4% Value players have 17.9% 19.7% 18.9% lost subscriber 18.4% 18.2% market share to 16.7% 15.0% 10.3% incumbents 9.3% 0.0% Mar-14 Mar-17 May-18 Airtel Idea Voda Jio Others Airtel, Tata Tele Services & Telenor comprise 32.9% of total industry sub
Slide 9: 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 1 >40% >40% MTN Niger 330 4 1 >40% >40% Orange Malawi 225 2 1 >40% >40% TNM Madagascar 195 3 1 30-40% 20-30% Orange, Telma Nigeria 4,710 6 2 20-30% 30-40% M
Slide 10: Diversified portfolio
Diversified portfolio Revenue Split by segments1 EBITDA Split by segments Africa 26.7% Wireless India Africa, 23.9% 38.4% South Asia, Wireless India, 0.5% 47.4% South Asia Towers, 7.7% 0.0% Airtel Towers Business, 10.9% 13.5% Homes 4.0% Airtel Business Digital Services Digital Services, 14.5% 5.6% H
Slide 11: Investing for growth – Spectrum Holding
Investing for growth – Spectrum Holding Band (Avg holding Airtel Competitor 1 Competitor 2 across 22 circles) 800/900Mhz Paired 7.4 6.2 9.6 1800 Mhz Paired 16.1 17.9 7.4 2100 Mhz Paired 7.7 8.9 3.0 2300/2500 Mhz Unpaired 25.9 18.2 27.3 Spectrum Industry Spectrum ex- Airtel’s SMS1 excl. Band spectrum
Slide 12: Aggressive Network Build
Aggressive Network Build 167.3 157.1 162.8 2.2 1.7 146.4 120.1 Total 108.0 tower count 1.3 (‘000) Q1'17 Q1'18 Q1'19 Mobile Broadband Towers Total Mobile Towers Mobile Broadband Base Stations per Mobile Broadband Tower National long distance fiber –over 245,847 RKms1 Global sub-sea cable network of o
Slide 13: Africa: Invested for Growth
Africa: Invested for Growth Abundant spectrum across operations Mobile broadband towers (‘000) – Africa Frequency Band (Mhz) 19,895 OPCO 800 900 1800 2100 2600 2300 Total 18,998 1.62 Zambia 10 20 20 50 Total 14,653 Niger 10.2 10 15 35.2 12,732 Malawi 11.6 19.8 10 41.4 tower Madagascar 11.2 24.4 10 8
Slide 14: Strategy India
STRATEGY INDIA
Slide 15: 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 16: Indian telecom market dynamics is changing
Indian telecom market dynamics is changing 1 GSM data and voice consumption is increasing Explosion of Data – Spurt in 1,955 2,447 1,610 volumes and smartphone shipments 1,256 884 1,006 584 SIM Consolidation 381 377 366 405 428 437 495 360 134 143 236 Mar'16 Jun'16 Sept'16 Dec'16 Mar'17 June'17
Slide 17: Win the 4G Game decisively
Win the 4G Game decisively Win the primary 4G Mobile Broadband Customer Base SIM Slot As a % of Total 17.4% 19.6% 21.4% 25.2% 24.9% Customer Base Drive upgrades 85,706 through device 76,578 partnerships and 62,149 offers 55,218 48,911 Lock-in customers through postpaid and loyalty programs Q1'18 Q2'
Slide 18: 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 19: Build New Revenues
Build New Revenues Wynk and Airtel TV Customers (Mn) Build the largest Music Rapidly grow homes and TV service in India. through broadband and 102 DTH expansion 92 66 36 Accelerate SME through 23 1 Launch enterprise GTM re-invention and platforms to drive new Leverage Customer 360, Mar'17 Mar'18 Jun
Slide 20: War on Waste
War on Waste India Opex growth1 - YoY 1.5% Q1'18 Q1'19 -2.1% Drive down cost through end to end process re-engineering and digitization Mobile broadband BTS per mobile broadband tower 2.2 1.7 Q1'18 Q1'19 1. Excludes Access costs, COGS Bharti Airtel Limited 20
Slide 21: Strategy Africa
STRATEGY AFRICA
Slide 22: 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 23: Airtel Africa on solid footing
Airtel Africa on solid footing Gross Revenues (USD Mn) EBITDA (USD Mn) and Margin (%) 33.1% 35.5% 35.9% 794 36.4% 28.6% 767 772 289 272 277 743 246 200 697 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Operating Free Cash Flow (USD Mn) PBT (USD Mn) 240 106 113 196 197 156 69 47 27 4 Q1
Slide 24: While maintaining highest standards of Corporate Governance
While maintaining highest standards of Corporate Governance Ranked #1 by Transparency International for highest standards of Corporate 1 Governance Ranked amongst the “Forbes’ list of 100 most innovative companies in 2 the world” for 2017. Won the prestigious “Golden Peacock Award for Corporate 3 Su
Slide 25: 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 26: Thank You
THANK YOU