Ir ppt-may-11
-
Upload
soumya-sahoo -
Category
Documents
-
view
256 -
download
0
Transcript of Ir ppt-may-11
Investor Presentation
Bharti airtel limitedBharti airtel limited
May 2011
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 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,
Disclaimer
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
“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.”
Investor Relations :- http://www.airtel.inFor any queries, write to: [email protected]
The Company...Bharti airtel – An Integrated Telco
� Wireless Services
� 2G
� 3G
� Rural Market
� Telemedia Services
� Enterprise Services
� Carriers
� Corporates
� Passive Infrastructure Services
� Infratel
� Indus� Fixed Line
� Broadband
� IPTV
� Indus
� DTH
� Pay per view / HD
� Interactive Services including Gaming
Fully integrated telecom player offering end to end solutions
and entering new geographies
The Company…Bharti airtel
No. of circles (India) Today Countries1 5 15 22 19
‘
1996 2001 2003 2004 2010
Fully integrated telecom player offering end to end solutions and entering new geographies
Growth trajectory reflected in the numbers
Single Circle Operator Company Profile Largest integrated private telecom
operator
< 25k Customers ~ 221 mn
~ USD 17 mn Revenue ~ USD 13 bn
~ USD 2.5 mn EBITDA ~ USD 4 bn
1996 2011
~ USD 2.5 mn EBITDA ~ USD 4 bn
~ USD 1.4 mn Cash Profit ~ USD 4 bn
~ USD 16 mn Market Capitalization ~ USD 30 bn
Continuing on our journey of Value Creation
Note: 1) 2011 financials are as per FY 2011 results. 2) Exchange rate: Financials as of 31st Mar 11 : Rs 44.65
Financials & Positioning
FY 11 (in Mn)
Customers 220.9
Revenue $ 13,319
EBITDA $ 4,472
Positioning in the world & in India
� 3rd LARGEST wireless operator in the world (1)
� LARGEST private INTEGRATED telecom company in
India
� 5th LARGEST INTEGRATED telecom operator in the
Key financial metrics
EBITDA $ 4,472
Cash Profit $ 3,983
Net Income $ 1,354
EBITDA Margin (%) 34.6
ROCE (%) 10.8
world
� LARGEST operator in NLD, ILD and VSAT business
� LARGEST TELECOM company listed on Indian Stock
Exchanges
Note: FY11 numbers are as per IFRS as per March11 quarterly report. Exchange rate for Re to $ conversion: 44.65. (1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers.
Latest Results – 4Q’11
Key operating and financial metrics Continued Strong Performance
Q4 FY 11* Y-on-Y
Customers 220.9 mn 65.9.%
Revenue $ 3,643 mn 51%
EBITDA $ 1,112 mn 33%
� Wireless CMS 19.9%
� Wireless RMS 31.2%
� Total MOU carried in Qtr 240.2 bn
� Balance sheet strength:EBITDA $ 1,112 mn 33%
Cash Profit $ 1,068 mn 16%
Net Income $ 314 mn -31%
EBITDA Margin 33.5%
ROCE 9.2%
� Balance sheet strength:
� Assets $ 32.8 bn
� Net debt $ 13.4 bn
� Net debt to EBITDA 2.8 Times
(annualized)
� Continues to be FCF positive on at South Asia
Level.
•Includes full quarter numbers for Africa
•Exchange rate as of 31st Mar 2011: 44.65
•**RMS as per December quarter released by TRAI
Performance dashboard - 3 line graph
122,308
152,150
157,560162,654
41.4%
42.4%
45.4%
46.9%44.8%
63.2%
73.6%72.1%
70.8%69.8%
115,000
125,000
135,000
145,000
155,000
165,000
Tota
l R
evenue (
Rs.m
n)
40%
50%
60%
70%
80%
Productivity Indicators = growing revenues + cost efficiencies + capital productivity
The above chart is for Airtel Consolidated including Africa
107,49142.4%
105,000
115,000
Q410 Q111 Q211 Q311 Q411
30%
Total Revenue (Rs. Mn) (LHS) Opex to Total Revenue (RHS) Capital Productivity (RHS)
Wireless Services
Indian Market
Overall Telecom Market Wireless Market
� Population 1.2 billion
→ Relatively large youth population
� Telecom penetration c.70.89%
(~846.32 mn telecom subs)
Sub number should go upto 1 Billion by 2015
� Sub Base c.811.59 mn
� Wireless Penetration c.67.98%
� Operational metrics per month
� Usage per user 449 min
� ARPU ~ US$ 3.67
� Broadband penetration 0.96% (11.87 mn)
→ Govt. target to reach 20 mn. Broadband subs by 2011
� ARPU ~ US$ 3.67
� Rate per minute ~ US$ 0.01
� VAS ~ 13.5%
Lot of opportunity ahead….
Note: (1) Subscriber numbers and wireless penetration numbers as on Mar 31, 2011 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 1Q11 dated 28th Apri11 by Merrill Lynch, and reflective of Industry numbers.
Rapidly Growing Indian Wireless Market
Net Adds in Feb 20.2 Mn…lesser than over last 3
months average run rate of 20.6 MnS-curve triggered
600
700
800
900
161820
222426
Closing Subscribers Net Adds
50%
60%
70%
80%
90%
-
100
200
300
400
500
No
v-0
3
Ma
y-0
4
No
v-0
4
Ma
y-0
5
No
v-0
5
Ma
y-0
6
No
v-0
6
Ma
y-0
7
No
v-0
7
Ma
y-0
8
No
v-0
8
Ma
y-0
9
No
v-0
9
Ma
y-1
0
No
v-1
0
(mn
)
-24
681012
1416
0%
10%
20%
30%
40%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
India - Fastest Growing Market in the World
Note: (1) Actual Data as per Industry Association Releases and Industry Estimates in India.
Wireless Market Structure in India
Subscriber Trends Customer Market Share – CMS (%)
162
136 135
9790 89
103
128
102 101
7564 66
49
35 33 3423 26 23
54
-
20
40
60
80
100
120
140
160
180
Airte
l
Relia
nce
Vodafo
ne
BS
NL+M
TN
L
Idea
Tata
Oth
ers
(mn)
20.0%
16.7%
12.0%11.0%
16.6%
11.0%
12.7%
21.8%
17.5%17.3%
12.8%
10.9% 11.3%
8.4%
5%
7%
9%
11%
13%
15%
17%
19%
21%
23%
25%
Airte
l
Relia
nce
Vodafo
ne
BS
NL+M
TN
L
Idea
Tata
Oth
ers
• Airtel continuously consolidating its market leadership position despite intense competition
• Airtel current monthly net adds at 3.2 million vs. 3.0 million a year ago
• Airtel ranks 1& 2 in 16 circles in terms of number of subscribers
• Over 57% of net adds coming from B&C circles (rural India)
Airtel Continues to lead on Revenue Market Share
Note: Based on subscriber data for India as on March 31 2011 as per TRAI press release.
Airte
l
Relia
nce
Vodafo
ne
BS
NL+M
TN
L
Idea
Tata
Oth
ers
M ar-11M ar-10
Airte
l
Relia
nce
Vodafo
ne
BS
NL+M
TN
L
Idea
Tata
Oth
ers
CMS(Mar '11) CMS(Mar '10)
Airtel…Performance Indicators (Operational)
Customers & Market Share Prepaid/Postpaid
127.6 136.6 143.3 152.5162.2
21.8% 21.5%20.8%
20.3% 20.0%
0
60
120
180
Q410 Q111 Q211 Q311 Q411
6%
10%
14%
18%
22%
Customers (mn) CM S (%)
95.8% 96.0% 96.1% 96.2% 96.3%
101.7%
99.2%97.5% 98.2% 98.1%
78%
82%
86%
90%
94%
98%
102%
Q410 Q111 Q211 Q311 Q411
Prepaid Subs Prepaid Net Adds
ARPU & RPM MoU/Sub/Month & MON
43.1344.1944.4444.8346.98
194198202215220
-
10
20
30
40
50
60
Q410 Q111 Q211 Q311 Q411
0
50
100
150
200
250
300
RPM (Paise) ARPU (INR)
449 449454480468
218,190205,018
196,196195,197
174,746
420
430
440
450
460
470
480
490
Q410 Q111 Q211 Q311 Q411
80,000
130,000
180,000
230,000
280,000
M oU/Sub (M in) Total minutes on Network (M n M in)
Current positioning and way forward…
Leadership Positioning Growth strategy and plans
RevenueRevenue New Revenue Streams
� Revenue size
(>$ 9 Bn)
� Revenue Market Share
� Changing face of growth
through M-Com, M-
entertainment & 3G
Cost
Non financial vitals
Maximizing usage
Net Adds
� Brand
� Distribution
� Churn lower than industry
� Spectrum Mix (900/1800 MHz)
� Improving cost efficiencies
� Lowest cost GSM network
� Increasing the usage through U&R drive
� Wallet share
� Driven by rural strategy
Telemedia Services
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. Customer base: 3.3 million (end Mar 2011)3. Customer base: 3.3 million (end Mar 2011)
4. Broadband (DSL with speeds>256 kbps) penetration at 43.1% of customer base.
5. Average ARPU for Quarter ended Dec’10 $ 20.9 per month.
6. Segment contributing to 8% of overall revenues of the company.
7. EBITDA margin of over 45.2%.
Broadband revolution to follow wireless revolution in India
SMB opportunity across ICT stream
Enterprise Services
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 134,026 Route kms of optical fiber, over 4,150 MPLS and SDH POPs� Pan-India network with 134,026 Route kms of optical fiber, over 4,150 MPLS and SDH POPs
� Access network (terrestrial) in 87 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 (Q4‘11)
� NLD Minutes Carried: 19.5 Billion ; ILD Minutes Carried: 3.0 Billion
� Revenue: Rs.10,179 Million (8 % Segment Contribution Share)
� EBITDA: Rs. 2,619 Million (25.7% EBITA Margin)
Emerging Growth Engines
Passive Infra
Africa
Financial Performance – Passive Infra
Revenue EBITDA
431438
471
490 493
400
450
500
160155
175
189183
140
160
180
200
37.1 35.5 37.1 38.6 37.0
Focus on tenancy enhancement…driving Revenue & Profitability
The above nos for Revenue & EBITDA are in IFRS as per Quarterly Report & includes proportionate
share (42%) in Indus .
300
350
Q410 Q111 Q211 Q311 Q411 100
120
Q410 Q111 Q211 Q311 Q411
Operational Performance – Passive Infra
Infratel Indus
Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor
30,56831,196
31,83132,424
32,792
1.621.65 1.65
1.68
1.73
29,000
30,000
31,000
32,000
33,000
Q410 Q111 Q211 Q311 Q411
1.4
1.5
1.6
1.7
1.8
No of t owers Shar ing Fact or
108,586107,789106,438
104,901102,938
1.831.801.781.75
1.71
97,000
99,000
101,000
103,000
105,000
107,000
109,000
Q410 Q111 Q211 Q311 Q411
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
No of t owers Sharing Fact or
Sharing Revenue per Sharing Operator per Month (Rs) Sharing Revenue per Sharing Operator per Month (Rs)
Aims to enhance the tenancy ratio & be the preferred choice of vendor for all existing
and new operators
36,59937,85938,041
36,29036,878
25,000
29,000
33,000
37,000
41,000
Q410 Q111 Q211 Q311 Q411
Shar ing Revenue per Sharing Operat or per mont h
30,50130,84731,389
30,37929,674
15,000
20,000
25,000
30,000
35,000
Q410 Q111 Q211 Q311 Q411
Shar ing Revenue per Sharing Operat or per mont h
Transaction Rationale
Clean / certaintyof transaction
Shareholding and Management Control
����
Brand – ‘Airtel’����
����
100% Cash Transaction ����
Focus on CoreMiddle East
Operators
����Global Stature
Emerging Market Characteristics
Strong Platformfor Future Expansion
ManageableDeal Size����
Diversification of India Risk����
Avoid Greenfield����
Speed inTransaction ����
Repayment of Debt ����
Significant Synergies
Low Competitive Intensity
The transaction meets the objectives of Airtel with long term strategic benefits
and creates tremendous shareholder value
Differences between the two markets
Mobile Penetration
Business Model Low usage, high pricing model
40%
High usage, low pricing model
66%
Average Number of Competitors
3-510-12
India Africa(1)
Minutes of Usage
ARPU (US$)
ARPM (US cents ¢)
~115
~$7
6¢
~449
~$4
1¢
And therefore huge opportunity space
Source: Global Insight, annual / quarterly reports.1. Data pertaining to the 16African countries where Zain Africa has operations.
Another Growth Engine - Africa
� Customer Base : 44.2 Mn
� Performance Indicators (CY 2011):
Revenue: $ 2,878 Mn
EBITDA: $ 6,30 Mn
� Prepaid Base: 99.3%
→one of the highest in the
world
� Usage per sub per month: 115 Minutes
→one of the lowest
� ARPU: ~ US$ 7.2
� Rate per minute: ~ US¢ 6.2
→ one of the highest
� VAS: ~ 7.8%
→One of the lowest
Note: Above numbers based on Quarterly report ended 31 March ,2011.
Recent Honors
Bharti airtel – Leadership in business Recent Honours
� Economic Times Telecom Awards 2011
� Innovative Product Value Added Service
� Customer Experience Enhancement
� 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
� Telecom Operator award 2011 - Won in 5 categories.
Most Admired company� Most Admired company
� Best National Mobile operator
� Operator with Rural performance
� Best VAS provider
� Best Enterprise services
� ‘Powerful Brand’ - Economic Times (the only corporate brand to be awarded the AAA rating)
� Bharti Airtel rated as India’s Best Enterprise Connectivity Provider- Users choice award Instituted by PC Quest
� Sunil Bharti Mittal : – Global Game changer at Economic Times Telecom Awards 2011
– Global Telecom Leader - Voice & Data magazine
� Akhil Gupta, Deputy Group CEO and MD - CFO India Hall of Fame by CFO India
� Manoj Kohli, CEO( International) & Joint MD - Telecom Man of the year - Tele.net
� Business world – FICCI – SEDF Corporate Social Responsibility Awards 2009-10
thank you