Bharti Airtel Limited · NSE:BHARTIARTL

Bharti Airtel — Investor Presentation (February 2021)

23 slides from Bharti Airtel's investor presentation, February 2021

  1. Slide 1: Bharti Airtel Investor Presentation February 2021

    BHARTI AIRTEL INVESTOR PRESENTATION FEBRUARY 2021 STRICTLY PRIVATE AND CONFIDENTIAL

  2. Slide 2: Disclaimer

    Disclaimer THIS PRESENTATION IS BEING PRESENTED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. This presentation and accompanying slides (the “Presentation”) is

  3. Slide 3: Airtel: Premier Digital Communications Company

    1 Airtel: Premier Digital Communications Company #2 RMS(1) in India #1 by TRAI VLR Subscribers(2) India #2 Operator in Africa Niger Bangladesh Bharti Airtel: Chad (Joint Venture) Leadership in Largest, Nigeria High-growth Telecom Markets Uganda Sri Lanka CUSTOMERS c.458mn(3) Kenya Gabon DRC Rwanda S

  4. Slide 4: Airtel: Robust Performance Across All Segments

    2 Airtel: Robust Performance Across All Segments Robust Performance across All Segments India Mobility India Non-Mobility1 India Airtel Africa Consolidated Customers 283.0 307.9 308.7 336.2 107.1 118.9 418.8 457.9 Revenue ($m) (mn) 5,679 2,016 10,249 2,911 7,695 8,440 4,519 1,896 6,415 2,427 EBITDA

  5. Slide 5: The Indian Telecom Market has undergone Significant Changes

    3 The Indian Telecom Market has undergone Significant Changes Industry Consolidation India Telecom Revenue Recovery Strong Growth in 4G Subscriber Base 4G Subs as % India Mobility Quarterly Revenue (2016-20)1 Increase in 4G Subscriber Base2 of Total Subs $mn mn 44.6% 60.8% 67.5% 8 9,108 9,340 Player

  6. Slide 6: Airtel India Mobility has seen Significant Improvement in Operating Metrics

    4 Airtel India Mobility has seen Significant Improvement in Operating Metrics… Increase in 4G subs from 77.1mn in Q3FY19 to 165.6mn in Q3FY21 Strong Growth in Data and Voice Usage 4G Subs (mn) Data Usage per Customer (GB/month) 4G Subs as % 37.8% 48.9% 56.7% Voice Usage per of Total Subs Customer 72

  7. Slide 7: … and has Outperformed other Telecom Peers in India

    5 … and has Outperformed other Telecom Peers in India Only Incumbent to Grow Market Share Robust Net Adds Momentum Best in Class ARPU Mobile RMS1 (%) Quarterly Net Subscriber Additions (mn) INR Airtel: +23% 33% 33% 17.5 14.8 166 162 31% 12.1 31% 9.7 9.9 157 4.6 154 1.7 0.5 6.9 #1 151 27% (11.1) 145

  8. Slide 8: Robust Spectrum Portfolio Across Bands

    6 Robust Spectrum Portfolio Across Bands Future Ready Spectrum Holdings First Indian Telco to 4G Services can be 5G Services tested Re-farmed the 900 MHz successfully test, over existing  launched on all of the and 2100 MHz bands to expand 4G capacity  available Spectrum Bands  demonstrate and or

  9. Slide 9: Proactive Investment to Build a Quality Network and Enhance User Experience

    7 Proactive Investment to Build a Quality Network and Enhance User Experience First Indian Telco to Test live 5G Proactive Investment to build a World-class Network Best-in Class Network Experience Service over a commercial network India Capex ($ mn)(1) Demonstrated and Best Download Speed (Mbps)(2)

  10. Slide 10: Targeting High-quality Customers through Innovative Services

    8 Targeting High-quality Customers through Innovative Services… Increase in Share of 4G Subscribers Airtel Home – Quad-play Airtel Business Platform Atrractive Proposition Airtel Thanks Loyalty Program Build New Verticals Partnership with Three Services Verizon to launch Bundled Pricing Plans Combin

  11. Slide 11: … and Building a High Growth Digital Services Ecosystem

    9 … and Building a High Growth Digital Services Ecosystem Right of Way to Win in Digital Services Comprehensive Portfolio of Enterprise Services Airtel Thanks Wynk Music 10 Large and 120+ Edge Data Cloud Centers Video Payments Bank IoT Cyber Security 190M+ 1B+ INR 1B+ 280M Monthly digitally engaged

  12. Slide 12: Comfortably Navigated External Challenges over the Last Year

    10 Comfortably Navigated External Challenges over the Last Year COVID-19 led Disruptions Headwinds on Account of AGR Navigated Well Nationwide Lockdown led to Restrictions on Movement and Economic Activity… Liquidity Managed 23.9% Airtel has already paid ~INR 180bn of the total ~INR 440bn AGR-relate

  13. Slide 13: Airtel Africa: Track Record of Consistent Delivery

    11 Airtel Africa: Track Record of Consistent Delivery Revenue (Constant currency 9.5% 10.9% 4.9% 10.1% 11.6% 17.7% 16.4% 21.1% 7.8% growth; %) Underlying EBITDA margin 38.9% 39.2% 43.7% 44.1% 45.2% 44.1% 44.1% 45.3% 46.9% (%) 1,046 955 865 860 836 789 491 Revenue 749 735 739 433 ($m) 378 382 379 348

  14. Slide 14: Comfortable Leverage Position and Stable Credit Rating

    12 Comfortable Leverage Position and Stable Credit Rating Diversified Debt Profile with a Decreasing Proportion of Market Debt1 Easy Maturity Profile as of Dec 31, 2019 as of Dec 31, 2020 as of Dec 31, 2020(3) US$20.0bn US$21.6bn Lease ST Debt • Well spread out and comfortable Lease Obligations Obli

  15. Slide 15: Ready Access to Capital Markets and Strong Asset Monetization Track-Record

    13 Ready Access to Capital Markets and Strong Asset Monetization Track-Record Debt Capital Market Transactions Dec-13 Dec-13 Mar-14 May-14 May-14 Jun-15 Oct-19 Feb-20 EUR 750mn EUR 250mn CHF 350mn USD 1,000 mm EUR 750mn USD 1,000 mm USD 750 mm USD 250 mm Bharti Airtel Bharti Airtel Bharti Airtel Bha

  16. Slide 16: Improving Credit Outlook Reflected in Bond Prices

    141 0 Improving Credit Outlook Reflected in Bond Prices 03-Oct-18 09-Nov-18 15-Oct-19 12-Feb-20 Any-and-All Any-and-All Issuance of $250 mm Tap of Tender Offer for Tender Offer for $750 mm the Perpetual EUR 1.00 bn $1.50 bn Notes Perpetual Bond Bond notes Due 2018 Due 2023 100 08-Aug-17 ~ $400 mm st

  17. Slide 17: Summary Highlights

    Summary Highlights 1 Rapidly Growing Market Share with Secular 4G Growth 2 Industry Consolidation to a 3+1 Player Market; Airtel India Leader in VLR Subscribers Strong Execution Capabilities translating into Revenue Momentum and Operating 3 Leverage 4 Peak Capex Investments are Already Done 5 Non-Mo

  18. Slide 18: Bharti Airtel: Sustainability and Corporate Governance

    Bharti Airtel: Sustainability and Corporate Governance Sustainability Corporate Governance • CRISIL has assigned 'CRISIL GVC Level-1' rating • 78.3% reduction in carbon emissions/terabyte(1) • Airtel's capability with respect to corporate governance, • 11.57% reduction in CO2 emission/square feet (2

  19. Slide 19: Thank You

    ® airtel THANK YOU

  20. Slide 20: Appendix

    ® airtel Appendix

  21. Slide 21: Financial Performance – Consolidated

    Financial Performance – Consolidated Total Revenue ($mn) EBITDA ($mn) YoY 9.0% 21.4% Margin 30.0% 41.1% 40.6% 44.8% Growth (%) (%) 4,760 4,594 11,592 10,630 10,249 3,423 3,189 8,440 FY2019 FY2020 9MFY20 9MFY21 FY2019 FY2020 9MFY20 9MFY21 Capex ($mn) Operating FCF1 ($mn) Capex 35.8% 28.9% 21.8% 23.1%

  22. Slide 22: Financial Performance – Quarterly Trends

    Financial Performance – Quarterly Trends Revenues ($mn) Airtel Consolidated 35.6% 39.0% 40.3% 42.3% 43.4% Revenues ($mn) Airtel Consolidated Mobile Services – 1,909 2,038 41.3% 42.4% 43.4% 44.9% 45.9% India + SA 1,544 1,790 1,778 3,630 3,431 3,151 3,188 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 2,922 Reven

  23. Slide 23: Healthy Liquidity and Credit Metrics

    Healthy Liquidity and Credit Metrics Cash and Debt ($mn)1 Net Debt / EBITDA (Annualized)1 (x) 2 EBITDA / Interest Expense (x) 1 Net Debt/ 3.4x 21,617 LTM EBITDA 20,260 4.3x 3.0x 17,209 2.8x 2.7x 3.6x 3.0x 3,214 1,742 1,433 FY2019 FY2020 Q3FY21 FY2019 FY2020 Q3FY21 FY2019 FY2020 Q3FY21 Cash and Cash

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