airtel_investor_presentation ... - cloud object storage · investor presentation bharti airtel...
Post on 28-Jun-2018
237 Views
Preview:
TRANSCRIPT
Investor Presentation
Bharti Airtel LimitedDecember 2008
DisclaimerThe 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 has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon this presentation independent consultation / advise may be obtained and necessary due diligence, investigation etc may be done at your end. You may also contact us directly for any questions or clarifications at our end.
This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue’ and similar expressions identify forward looking statements.
Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive
This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.
Investor Relations :- http://www.bhartiairtel.inFor any queries, write to: ir@bharti.in
“The information contained herein does not constitute an offer of securities for sale in the United States. Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus and will contain detailed information about the Company and its management, as well as financial statements. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.”
3
Mobile Services Telemedia Services Enterprise Services
Advantage India
Deep Domestic Demand…Huge Growth Potential
Population: 1.1 billion→ increasing urbanisation→ relatively large youth population
GDP Growth (Real) : ~9%→ second highest growing economy
GDP Size (PPP adjusted): US$ 3 trillion→ fourth largest economy in the world
Telecom penetration: 31.50% (364 telecom subs)
→ one of the lowest→ Govt. target to reach 500 mn.
telecom subs by 2010Broadband penetration: 0.44% (5.05 mn)
→ one of the lowest→ Govt. target to reach 20 mn.
Broadband subs by 2010
Note: (1) Telecom and Broadband penetration is as at October 2008, as per TRAI press release.
4
Mobile Services Telemedia Services Enterprise Services
The Company...Bharti Airtel
Bharti Airtel – an integrated telco
Wireless Services
2G/3G
Rural Market
Telemedia Services
Fixed Line
Broadband
DTH (Media)
Enterprise Services
Carriers
Corporate
Passive Infrastructure Services
Fully integrated telecom player…end to end telecom offerings
5
Mobile Services Telemedia Services Enterprise Services
3rd LARGEST wireless operator in the world1
LARGEST TELECOM company listed on Indian Stock Exchanges
Bharti Airtel - placing 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) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers.
6
Mobile Services Telemedia Services Enterprise Services
Latest Results – Q2 FY08/09
Key operating and financial metrics
Q2 FY 09 Y-on-Y
Customers 79.99 mn 57.0%
Revenue $ 1,942 mn 42.3%
EBITDA $ 796 mn 36.5%
Cash Profit $ 673 mn 20.3%
Net Income $ 441 mn 26.8%
EBITDA Margin 41.0%
Net Profit Margin 22.7%
ROCE 33.9%
ROE 35.9%
Continued Strong Performance
Wireless Customer market share leadership at 24.6%.
Total minutes on network carried in Q2 – 134 billion
Total employee strength – 25,616
Balance sheet strength:
Assets - $ 12 billion
Net debt - $ 402 million*
Net debt to EBITDA - 0.14 times*
Note: * Net Debt is excluding fully and compulsory convertible, non-cumulative, unsecured and interest free Debentures of US$ 690.
7
Mobile Services Telemedia Services Enterprise Services
performance dashboard - 3 line graph
Productivity Indicators = growing revenues + cost efficiencies + capital productivity
(capital productivity)(operating efficiency)
1,942
1,826
1,683
1,499
1,364
32.6%32.4% 32.7%
33.8% 34.6%
70.8% 71.1%74.4% 73.3% 73.1%
1,000
1,200
1,400
1,600
1,800
2,000
2,200
Q208 Q308 Q408 Q109 Q209
Gro
ss R
even
ue (U
SD M
n)
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Gross Revenue (USD Mn) (LHS)
Opex to Gross Rev (RHS)
Revenue (annualized) to Gross Cummulative Capex (RHS)
8
Mobile Services Telemedia Services Enterprise Services
Segment investment & contribution
Note: (1) Revenue and EBITDA is gross of inter segment eliminations.
Revenue
81%9%
19%5% 13% 1%
Mobile Services Telemedia ServicesEnterprise Services - Carriers Enterprise Services - CorporatesPassive Infrastructure Services Others
INVESTMENTS
50%
11%13%1%
24% 1%
Mobile Services Telemedia ServicesEnterprise Services - Carriers Enterprise Services - CorporatesPassive Infrastructure Services Others
h
EBITDA
59%
10%
20%
5%11% -3%
Mobile Services Telemedia ServicesEnterprise Services - Carriers Enterprise Services - CorporatesPassive Infrastructure Services Others
few recent recognitionsBharti Airtel was voted as India’s most innovative company in a survey conducted by The Wall Street Journal.
Airtel won the Platinum Trusted Brand Award in the Mobile Service Provider Category in the Reader’s Digest Asia Trusted Brand’s Survey.
Airtel was chosen as the 2nd most trusted service brand in India in the ‘Most Trusted Brands 2008 Survey’ conducted by the Economic Times - Brand Equity
Awarded with top honors at the GSMA Mobile World Congress Conference 2008 in Barcelona for the category “Best Billing/ Customer Care solution.”
Adjudged as the ‘Best Carrier India‘ at the Telecom Asia Award 2008
Ranked 2nd in the survey of India’s Most Respected companies by Businessworld
Adjudged as ‘Company of the Year’ at the CNBC India Business Leader Awards 2007
Economic Times ‘Company of the year 2007’ award for corporate excellence.
Sunil Bharti Mittal, Chairman & Group CEO
GSM Association Chairman’s Award 2008
Chosen for Padma Bhushan Awards in 2007
10
Mobile Services Telemedia Services Enterprise Services
Wireless Services
11
Mobile Services Telemedia Services Enterprise Services
Sub Base : 325.7 mn→second largest market
Wireless Penetration: 28.2%→lowest in the world
HHI Index: very high→one of the most competitive market
Prepaid Base: 90%+→one of the highest in the world
Usage per sub per month:Minutes: 455
→one of the highestARPU: ~ US$ 7.6
→one of the lowestRate per minute: 1.4 cents
→ one of the lowest in the worldVAS: ~ 9%
→One of the lowest
KPIs…Indian Wireless Market
MUM
HP
DELHI
AP
CHN
MADHYA PRADESH`
TNKER
PB
DEL
UP(W)
MP
RAJUP(E)
KK
OR
HAR
JK
BH
WBGUJ
MAH
AS
NE
Metros
A Cat.
B Cat.
C Cat.
MUM
HP
DELHI
AP
CHN
MADHYA PRADESH`
TNKER
PB
DEL
UP(W)
MP
RAJUP(E)
KK
OR
HAR
JK
BH
WBGUJ
MAH
AS
NE
Metros
A Cat.
B Cat.
C Cat.
MUM
HP
DELHI
AP
CHN
MADHYA PRADESH`
TNKER
PB
DEL
UP(W)
MP
RAJUP(E)
KK
OR
HAR
JK
BH
WBGUJ
MAH
AS
NE
Metros
A Cat.
B Cat.
C Cat.
Metros
A Cat.
B Cat.
C Cat.
Kol
Note: (1) Subscriber numbers and wireless penetration numbers as at October 31, 2008. (2) Other indicators on the slide are based on QE June, 2008 Global Wireless Matrix released by Merrill Lynch, and reflective of Industry numbers.
12
Mobile Services Telemedia Services Enterprise Services
9 mn net adds per month S-curve triggered
Rapidly Growing Wireless Market
Note: (1) Actual Data as per Industry Association Releases and Industry Estimates.
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-
50
100
150
200
250
300
350
Mar
-01
Oct
-01
May
-02
Dec
-02
Jul-0
3
Feb-
04
Sep-
04
Apr-
05
Nov
-05
Jun-
06
Jan-
07
Aug-
07
Mar
-08
Oct
-08
-1234567891011
Closing Customers (mn) Net Adds (mn)
13
Mobile Services Telemedia Services Enterprise Services
80.2
57.848.6
56.7
31.6 30.220.7
50.9
37.8 38.0 37.2
19.4 20.213.6
29.320.0
10.619.5
12.2 10.0 7.1
-10.0020.0030.0040.0050.0060.0070.0080.0090.00
Airte
l
Rel
ianc
e
BSN
L+M
TNL
Voda
fone
Idea
Tata
Oth
ers
(mn)
Oct-08 Oct-07 Net adds during the year
Wireless Market Structure
• Airtel continuously consolidating its market leadership position despite intense competition.• Airtel current monthly net adds at 2.7 million vs 2 million a year ago.• Market share of net adds at 26.1%.• Airtel ranks 1& 2 in 16 circles.• 56% of net adds coming from B&C circles (rural India).
leads on revenue market share also
Subscriber Trends Customer Market Share – CMS (%)24.6%
17.7%
14.9%
17.4%
9.7% 9.3%
6.3%6.3%
9.3%8.9%
17.1%17.5%17.4%
23.4%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
Airt
el
Rel
ianc
e
BS
NL+
MTN
L
Voda
fone
Idea
Tata
Oth
ers
CMS(Oct'08) CMS(Oct'07)
14
Mobile Services Telemedia Services Enterprise Services
Current March 2009
Presence Operational in 23 circles of India on GSM technology.
Plan to launch in Srilanka.
Population Coverage
77% of population covering 5,000+ census towns and over 385 lakhsnon-census towns and villages.
• Poised to cover all census towns and majority of non-census towns and villages
• Penetration wider and deeper into rural India
Network Rollout & Strength
• Hive off of passive infrastructure into a separate independent tower company
• Largest GSM (900/1800 Mhz) network in India comprising of over 83,000 network sites
• Strong partners: Ericsson; Nokia
• Network sites ~ 100,000 +
• Plan to get 3G license and spectrum.
Road map
15
Mobile Services Telemedia Services Enterprise Services
Current March 2009
Sales & Distribution Network
• One of the widest distribution network.
• Following the FMCG company distribution model - Match Box Approach
• Present in over a million PoP in India.
• Tie-up with IFFCO, an edge over others to reach out to Rural India
• Continue distribution expansion, especially in rural areas
Customer Service • Continuous improvement in CSAT scores
• Multi pronged service strategy in place
• Focus on service through service training and employee sensitivity
• Unified service backend for enhanced customer experience
Employee Engagement
• Significant improvement in employee engagement
• Awarded “Great Work Place 2008” by Gallup
• Sustain employee engagement
• Focus on employee capability development and leadership pipeline
Road map
16
Mobile Services Telemedia Services Enterprise Services16
Hello Tunes(Ring Back
Tones)
Portfolio Manager(Stock Tracker)
Blackberry
Airtel Live(Portal)
Life time validity product
Electronic Recharge /
Micro Prepaid
first mover advantage/ product innovations
focus on product innovations
Easy Music
Song Catcher
Call Home Service
Money Transfers
Music on Demand
Google search
M Commerce
iPhone
17
Mobile Services Telemedia Services Enterprise Services
Performance Indicators
62.0
69.4
77.5
48.9
55.2
23.4%23.6% 23.7%
24.2%24.6%
40.045.050.055.060.065.070.075.080.0
Q208 Q308 Q408 Q109 Q20923.0%
23.5%
24.0%
24.5%
25.0%
Customers (Mn) CMS (%)
90.4% 91.0% 91.6% 92.3% 92.9%
98.4%
95.4%
85.0%
90.0%
95.0%
100.0%
Q208 Q308 Q408 Q109 Q209
Prepaid Subs Prepaid Net Adds
Customers & Market Share Prepaid/Postpaid
MoU/Sub/Month & MONARPU & RPM
469
526474
507534
115,834
64,375
370
400
430
460
490
520
550
Q208 Q308 Q408 Q109 Q2090
40,000
80,000
120,000
160,000
MoU/Sub (Min) Total minutes on Netw ork (Mn Min)
1.69 1.64 1.551.351.41
7.9
7.1
-
0.50
1.00
1.50
2.00
Q208 Q308 Q408 Q109 Q2095.0
6.0
7.0
8.0
9.0
RPM (cents) ARPU (USD)
18
Mobile Services Telemedia Services Enterprise Services
Performance Indicators
1,0891,208
1,3821,489
1,568
9001,0001,1001,2001,3001,4001,5001,6001,700
Q208 Q308 Q408 Q109 Q209
EBITDA (USD mn) & Margin (%)Revenues (USD mn)
446
493 490
457474
400
450
500
550
Q208 Q308 Q408 Q109 Q209
41.0 40.8 35.5 30.7 30.2
19
Mobile Services Telemedia Services Enterprise Services
Telemedia Services
20
Mobile Services Telemedia Services Enterprise Services
A snapshot
Largest private operator having presence in the voice and data (broadband).
Foraying into the media space - IPTV & DTH (Direct-To-Home) services.
Key Performance Indicators 1. Voice (wire-line) and Data (DSL) Presence in 95 top cities of India.
2. Target Segment : Retail and Small and Medium Enterprises.
3. Customer base: 2.58 million (end October,2008)
4. Broadband (DSL with speeds>256 kbps) penetration at 37% of customer base.
5. Customer ARPU of $ 25 per month.
6. Segment contributing to 9% of overall revenues of the company.
7. Robust EBITDA margin of over 43.6%.
Broadband revolution to follow wireless revolution in India
21
Mobile Services Telemedia Services Enterprise Services
Telemedia Services
Business Units Media SMBs Homes
Products • DTH• IPTV
• Voice• Data• Mobile Services
• Broadband• Voice
Goal
A Pan-India DTH Businesses; and a targeted IPTV Presence in top metros
One-Stop Shop for All Airtel Services and Solutions to SMBs
Dominant Broadband & Fixed Voice share of the affluent in targeted 94 cities
Strategies
• Best-in-class technology:
• World-class Installation & Customer Service
• Interactive VAS to Drive ARPU enhancement
• One Airtel Synergies for Distribution, Brand & IT
• Data Products: Internet, MPLS etc
• Integrated Solutions to Drive Share of wallet
• Strategic Alliances• Indirect Channel to
Drive Penetration
• Deeper & Not Wider: 94 Cities
• Vertical & Not Horizontal: Hi-Rise
• Network Enhancement to Deliver 8+ MBPS
• New Products & VAS to drive Flat, Combo Plans
22
Mobile Services Telemedia Services Enterprise Services
Product Portfolio
Our Media Play
23
Mobile Services Telemedia Services Enterprise Services
Performance Indicators
2,1782,283
2,3942,509
2,075
922853795751705
1,250
1,500
1,750
2,000
2,250
2,500
2,750
Q208 Q308 Q408 Q109 Q2090
200
400
600
800
1,000
B&T Customers ('000) DSL Customers ('000)
24.8 24.5 24.5 24.5 24.7
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
Q208 Q308 Q408 Q109 Q209
151157
164
172
183
140
150
160
170
180
190
Q208 Q308 Q408 Q109 Q209
Customers (overall & DSL) ARPU (USD)
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
60
6872 72
80
40.045.050.055.060.065.070.075.080.0
Q208 Q308 Q408 Q109 Q209
39.7 43.4 43.8 42.2 43.8
24
Mobile Services Telemedia Services Enterprise Services
Enterprise Services
25
Mobile Services Telemedia Services Enterprise Services
A snapshotCarrier: - one of the largest carriers of voice and data, both domestic and international.
Corporate: - providing end to end telecom solutions to large corporate and Small & Medium Businesses.
Present Competition: National Long Distance: BSNL; Reliance; VSNL; Vodafone; Tata
International Long Distance: VSNL, Bharti, Reliance, BSNL
26
Mobile Services Telemedia Services Enterprise Services
Enterprise Services – Carriers NLD
LegendExisting OFC RouteUnder Execution
Kolkata
Mumbai
Chennai
Hyderabad
Bangalore
Jaipur
Ahmedabad Bhopal
Chandigarh
Delhi
Nagpur
Lucknow
Jalandhar
ErnakulamCoimbatore
Kolkata
Mumbai
Chennai
Hyderabad
Bangalore
Jaipur
Ahmedabad Bhopal
Chandigarh
Delhi
Nagpur
Lucknow
Jalandhar
ErnakulamCoimbatore
Voice Network
captive traffic (group traffic) ~ 90 %NLD minutes carried (Q2FY09) > 11 Bn Minoptic fibre capacity (Q2FY09) 83,389 km
27
Mobile Services Telemedia Services Enterprise Services
Enterprise Services – Carriers ILD
Legendi-2-iSEA-ME-WE-4Other Int’l ConnectivityInt’l Gateways Connectivity
SEA-ME-WE-4 Connectivity to Westi-2-i Connectivity to EastILD minutes carried (Q2FY09) 2.3 Bn MinILD gateways 4landing stations 2
28
Mobile Services Telemedia Services Enterprise Services
Performance Indicators - carriers
6,7747,898
9,39810,322
11,349
1,345 1,591 1,850 2,048 2,284
0
2,000
4,000
6,000
8,000
10,000
12,000
Q208 Q308 Q408 Q109 Q209
NLD Minutes (mn) ILD Minutes (mn)
216
244271
338
366
200.0
240.0
280.0
320.0
360.0
400.0
Q208 Q308 Q408 Q109 Q209
Voice Minutes on Network Revenues (USD mn)
EBITDA (USD mn) & Margin (%)
75 79 87
148158
0.020.040.060.080.0
100.0120.0140.0160.0
Q208 Q308 Q408 Q109 Q209
34.5 32.2 32.0 43.9 43.2
29
Mobile Services Telemedia Services Enterprise Services
Enterprise Services - Corporates
Voice services
Satellite services Managed data & Internet services
Managed e -business services
Managed customized integrated solutions
Mobile services
competition limitedsegment one stop telecom solutiontarget 2,000 top large corporatesleveraging integrated play
30
Mobile Services Telemedia Services Enterprise Services
Performance Indicators - corporates
74 71
81 83
105
60.0
80.0
100.0
120.0
Q208 Q308 Q408 Q109 Q209
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
31 30
46
3843
0.0
20.0
40.0
60.0
Q208 Q308 Q408 Q109 Q209
41.9 41.9 57.0 45.7 41.4
31
Mobile Services Telemedia Services Enterprise Services
Passive Infrastructure Services
32
Mobile Services Telemedia Services Enterprise Services
Market landscape
Industry estimated to have 350,000 towers by 2010
No of Towers (Estimates) Description
Indus Towers 88,000 JV between Airtel;Idea & Vodafone operational in 16 circles
Bharti Infratel 25,000 Subsidiary of Airtel operating in 7 circles
Reliance Infratel 30,295 Subsidiary of Reliance operating in all 23 circles
BSNL+MTNL 40,000 State Owned Telephone Company
Tata 7,600 Present in 18 circles. TTML is operational in 2 circles
Aircell 7,000 Operator owned towers, present in 13 circles
Essar 3,200 Part of Essar Group, present in 13 circles
Quippo 3,405 Present in 15 circles. Includes the acquisition of Spice Towers
GTL 4,400 Present in 15 circles
TOTAL 208,900 No of Subs (in million) 285 Subs/Tower Approx 1,300
Source: Company data and Industry Estimates
33
Mobile Services Telemedia Services Enterprise Services
A snapshotBharti Infratel operates in 7 circles.
Indus Tower operates in 16 circles.
Standard Master Services Agreement with competitive rates already in place.
Key focus areas:
To increase sharing factor (tenancy) from current levels of 1.26.
Provide energy optimization solutions and other network management services.
Evaluate other revenue streams.
Key performance Indicators:Sharing Factor: 1.26
Sharing Revenue per sharing operator per month at Rs. 32,177.
EBITDA margin: 33.3%
Aim to be the preferred choice of vendor for all existing and new operators
34
Mobile Services Telemedia Services Enterprise Services
To conclude
35
Mobile Services Telemedia Services Enterprise Services
Key Strategic Objectives
Sustain revenue share in mobile profitably
Achieve deeper penetration in home and SMB
Product & vertical focus to gain client Revenue Market Share (cRMS) in Enterprise business
Become a benchmark in customer experience through service quality & innovation
Build a robust leadership pipeline to support growth
Benchmark in cost efficiency & productivity
DisclaimerThe 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 has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon this presentation independent consultation / advise may be obtained and necessary due diligence, investigation etc may be done at your end. You may also contact us directly for any questions or clarifications at our end.
This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue’ and similar expressions identify forward looking statements.
Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive
This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.
Investor Relations :- http://www.bhartiairtel.inFor any queries, write to: ir@bharti.in
“The information contained herein does not constitute an offer of securities for sale in the United States. Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus and will contain detailed information about the Company and its management, as well as financial statements. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.”
top related