investor presentation sept10
TRANSCRIPT
8/8/2019 Investor Presentation Sept10
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Investor Presentation
Bharti Airtel Limited
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Mobile Services Telemedia Services Enterprise Services DTH
The Company...Bharti Airtel – An Integrated Telco
Wireless Services
2G
3GRural Market
Telemedia Services
Fixed LineBroadbandIPTV
Enterprise ServicesCarriersCorporates
Passive Infrastructure Services
InfratelIndus
DTH
Pay per view / HD
Interactive Services including
Gaming
Fully integrated telecom player offering end to end solutions
and entering new geographies
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Net Adds in Jul 16.9 Mn…lessor than over last 2 months average run rate of 17.1 Mn S-curve triggered
Rapidly Growing Indian Wireless Market
Note: (1) Actual Data as per Industry Association Releases and Industry Estimates in India.
India - Fastest Growing Market in the World
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019-
200
400
600
800
1,000
-
3
6
9
12
15
18
21
Closing Subscribers Net Adds
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Wireless Market Structure in India
• Airtel continuously consolidating its market leadership position despite intense competition
• Airtel current monthly net adds at 3.0 million vs. 2.8 million a year ago• Airtel ranks 1& 2 in 17 circles in terms of number of subscribers• Over 59% of net adds coming from B&C circles (rural India)
Airtel Continues to lead on Revenue Market Share
Subscriber Trends Customer Market Share – CMS (%)
Note: Based on subscriber data for India as on July 31th 2010 as per TRAI press release.
139.2
113.3 111.5
79.070.7
74.9
63.8
34.0 31.3 32.8
18.426.6
35.5 32.1
-
20
40
60
80
100
120
140
160
A i r t e l
R e l i a n c e
V o
d a f o
n e
B S N L + M
T N L
I d e a
T
a t a
O t h e r s
Jul-10 Jul-09 Net adds during the year
21.3%
17.4%
12.1% 11.5%
9.8%10.8%
17.1%
23.8%
18.6%
17.8%
13.7%
10.0%8.9%
7.2%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%19.0%
21.0%
23.0%
25.0%
A i r t e l
R e l i a n c e
V o d a
f o n e
B S N L + M T N L
I d e a
T a
t a
O t h e r s
CMS(Jul'10) CMS(Jul'09)
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Mobile Services Telemedia Services Enterprise Services DTH
Customer Base : 36.36 Mn
Performace Indicators:
Revenue: 9,583 Mn
EBITDA: 2,635 Mn
Prepaid Base: 99.3% → one of the highest in the world
Usage per sub per month: 103 Minutes → one of the lowest
ARPU: ~ US$ 7.4
Rate per minute: ~ US¢ 7.2 → one of the highest
VAS: ~ 7.9% → One of the lowest
Another Growth Engine - Africa
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Emerging Market Characteristics…
Telecom Penetration
Population (mm)
GDP Size, (PPP adjusted)
GDP Growth (Real) %
Broadband Penetration
India * Africa **
8.6%
1200 mm
US$ 3,530 bn
58.17% (688.38 mn telecom subs)
0.83% (9.77 mn)
465mm
3.1%
US$ 6,90 bn
NA
*Telecom and Broadband penetration for India as on July 31 th 2010 as per TRAI press release.
** Data pertaining to the 15 African countries where Zain Africa has operations (Source: IMF, Global Insight , Economist Intelligence Unit,CIA World Factbook, World Resource Institute.)
32%
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Bharti – a growth journey
‘ DELHI
1996 2001 2003 2004 2010
No. of circles Today1 5 15 22 19 countries
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Latest Results – FY10/1Q’11
Key operating and financial metrics
21.3%29.0%ROE
18.4%24.4%ROCE
13.7%21.5%Net Profit Margin
36.9%40.3%EBITDA Margin
$ 361 mn$ 1,989 mnNet Income
$ 857 mn$ 3,710 mnCash Profit
$ 947 mn$ 3,714 mnEBITDA
$ 2,625 mn$ 9,271 mnRevenue
183.4 mn137.0 mnCustomers
Q1FY11*FY 10
Continued Strong Performance
Wireless Customer market share leadership inIndia at 21.5%.
Total minutes on network carried in Q1 – 206.2 bn[Over 800 bn minutes per annum]
Total employee strength – 24,843 (Includes 6,600Africa employees)
Balance sheet strength:
Assets – $ 31 billionNet debt – $ 12.9 billion
Net debt to EBITDA (Annualised)– 2.9 Times
Continues to be FCF positive on a standalone basis
Note: (1) Wireless customer market share of India. (2) The approved dividend is for the shareholders in India.
* Includes 23 days of Airtel Africa
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Mobile Services Telemedia Services Enterprise Services DTH
Wireless Services - India
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Performance Indicators - Operational
Customers & Revenue Market Share Prepaid/Postpaid
MoU/Sub/Month & MON ARPU & RPM
0.450.480.600.58 0.53
215220230252278
-
0.2
0.4
0.6
0.8
Q110 Q210 Q310 Q410 Q111
0
100
200
300
RPM (Rs.) ARPU ( INR)
480468446450478
195,197172,797
153,241143,680140,713
420440
460
480
500
Q110 Q210 Q310 Q410 Q111
0
100,000
200,000
300,000
MoU/Sub (Min) Total minutes on Network (Mn Min)
96.0%95.8%95.3%95.2%94.7%94.2%93.5%92.9%92.3%
99.2%101.7%97.5%100.4%
101.1%
100.8%97.9%98.4%
99.6%
85%
90 %
95%
100%
105%
Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 1Q11
Prepaid Subs Prepaid Net A dds
RMS % is based on internal computations. MON: Minutes on Network
136.6127.6118.9102.4 110.5
31.2%
32.7%32.1%
31.2%30.6%
0
50
100
150
Q110 Q210 Q310 Q410 Q111
29%
30%
31%
32%
33%
Customers (mn) RMS (%)
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Mobile Services Telemedia Services Enterprise Services DTH
Current positioning and way forward…
Brand
Distribution
Churn lower than industry
Spectrum Mix (900/1800 MHz)
Improving cost efficiencies
Lowest cost GSM network
Revenue size
(>$ 9 Bn)
Revenue MarketShare
Increasing the usage through U&R drive
Wallet share
Driven by rural strategy
Changing face ofgrowth through M-Com,M-entertainment & 3G
Leadership Positioning Growth strategy and plans
Revenue
Non financial vitals
Cost
New Revenue Streams
Net Adds
Maximizing usage
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Mobile Services Telemedia Services Enterprise Services DTH
Telemedia Services - India
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Mobile Services Telemedia Services Enterprise Services DTH
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 88 top cities of India.
2. Target Segment : Retail and Small and Medium Enterprises.
3. Customer base: 3.18 million (end July2010)
4. Broadband (DSL with speeds>256 kbps) penetration at 42.6% of customer base.
5. Average ARPU for Quarter ended Jun’10 $ 20.6 per month.
6. Segment contributing to 7% of overall revenues of the company.
7. EBITDA margin of over 44.0%.
Broadband revolution to follow wireless revolution in India
SMB opportunity across ICT stream
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Mobile Services Telemedia Services Enterprise Services DTH
Enterprise Services - India
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Mobile Services Telemedia Services Enterprise Services DTH
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: Wholesale voice and data services to over 130 domestic and 450 international telecommunications carriers, as well as ILD and NLD carriage for Airtel’s own customers
Extensive national and international infrastructure
Pan-India network with 129,244 Route kms of optical fiber, over 4,150 MPLS and SDH POPs
Access network (terrestrial) in 88 cities, Wimax network in 143 cities, and over 1,500 local POIs
International network with 225,000 Route Kms, connecting over 50 countries and 5 Continents.
Key Performance Indicators (Q1 ‘11)
NLD Minutes Carried: 17.3 Billion ; ILD Minutes Carried: 3.0 Billion
Revenue: Rs.10,186 Million (8 % Segment Contribution Share)
EBITDA: Rs. 2,497 Million (24.5% EBITA Margin)
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Mobile Services Telemedia Services Enterprise Services DTH
Passive Infrastructure Services - India
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Mobile Services Telemedia Services Enterprise Services DTH
A snapshot
Bharti Infratel operates in 11 circles.
Indus Tower operates in 15 circles.
Between the two, they have 136,000 towers – world’s largest tower portfolio.
Key performance Indicators (Infratel):
Total Towers: 31,196 (nos)Sharing Factor: 1.65 Sharing Revenue per sharing operator per month at Rs. 36,290.EBITDA margin: 35.5%
Key performance Indicators (Indus): Total Towers: 104,901 (nos)Sharing Factor: 1.75 Sharing Revenue per sharing operator per month at Rs. 30,379.
Key focus areas: To increase sharing factor (tenancy) from current levels of 1.65 for Infratel and 1.75 for Indus.Provide energy optimization solutions and other network management services.Evaluate other revenue streams.
Aims to be the preferred choice of vendor for all existing and new operators
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Mobile Services Telemedia Services Enterprise Services DTH
Summary
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Performance dashboard - 3 line graph
Productivity Indicators = growing revenues + cost efficiencies + capital productivity
112,725
107,491
103,053103,785104,143
38.1% 38.4% 39.9% 40.9% 40.6%
69%66%
63% 63% 65%
80,000
85,000
90,000
95,000
100,000
105,000
110,000
115,000
Q110 Q210 Q310 Q410 Q111
G r o s s
R e v e n u e
( U
S D M n
10%
20%
30%
40%
50%
60%
70%
80%
Gross Revenue (USD Mn) (LHS)
Opex to Gross Rev (RHS)
Revenue (annualized) to Gross Cummulative Capex (RHS)
Note: (1) The graph shown above is based on Bharti Airtel (India & South Asia), excluding Bharti Airtel African Operations as it is for less than one month in this quarter
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Mobile Services Telemedia Services Enterprise Services DTH
Segment contribution…Rev, EBITDA and Investment
Note: (1) Revenue and EBITDA is gross of inter segment eliminations.(2) Investments are on gross basis.
REVENUE
80%
7%
8%
17% 2%
EBITDA
78%9%
6%
16%-7%
INVESTMENTS
89%
9%3%
17% 2%
Mobile Services Telemedia Services Enterprise ServicesInfratel Services Others
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Mobile Services Telemedia Services Enterprise Services DTH
3 rd LARGEST wireless operator in the world 1
LARGEST operator in NLD, ILD and VSAT business
Bharti Airtel - positioning in the world and India
LARGEST private INTEGRATED telecom company in India
LARGEST WIRELESS operator in India
LARGEST private FIXED LINE operator in India
Note: (1) 3 rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers.
LARGEST TELECOM company listed on Indian Stock Exchanges
5 th LARGEST INTEGRATED telecom operator in the world
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Mobile Services Telemedia Services Enterprise Services DTH
Recent Honours
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Bharti Airtel – Leadership in business Recent Honours
NDTV Profit Business Leadership Awards 2010Top 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
Tele.net Telecom Operator awardWon in 6 out of total 14 categories. Few among them being
‘Powerful Brand’ - Economic Times (the only corporate brand to be awarded the AAA rating)
Sunil Bharti Mittal - Global Telecom Leader - Voice & Data magazine
Akhil Gupta, Deputy Group CEO and MD - Asia Corporate Dealmaker Award 2010
Manoj Kohli, CEO( International) & Joint MD - Telecom Man of the year - Tele.net
Business world – FICCI – SEDF Corporate Social Responsibility Awards 2009-10
Most Admired company
Best National Mobile operatorBest Internet and Broadband operatorBest Enterprise services
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