Investor Presentation - Bharti Airtel Limited January 2009 - Amazon S3
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investor Presentation Bharti Airtel Limited January 2009
Disclaimer 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, 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. “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.bhartiairtel.in For any queries, write to: ir@bharti.in
Advantage India
Population: 1.1 billion
→ increasing urbanisation
→ relatively large youth population
GDP Growth (Real) : ~7.3%
→ second highest growing economy
GDP Size (PPP adjusted): US$ 3 trillion
→ fourth largest economy in the world
Telecom penetration: 33.23% (384.79 mn
telecom subs)
→ one of the lowest
→ Govt. target to reach 500 mn.
telecom subs by 2010
Broadband penetration: 0.47% (5.45 mn)
→ one of the lowest
→ Govt. target to reach 20 mn.
Broadband subs by 2010
Deep Domestic Demand…Huge Growth Potential
Note: (1) Telecom and Broadband penetration is as at December 31st 2008, as per TRAI press release.
3
Mobile Services Telemedia Services Enterprise Services
The Company...Bharti Airtel
Bharti Airtel – an integrated telco
Wireless Services Enterprise Services
2G/3G Carriers
Rural Market Corporate
Passive Infrastructure
Telemedia Services Services
Fixed Line
Broadband
DTH (Media)/IPTV
Fully integrated telecom player…end to end telecom offerings
4
Mobile Services Telemedia Services Enterprise Services
Bharti Airtel - placing in the world and India
3rd LARGEST wireless operator in the world1
LARGEST private INTEGRATED telecom company in India
LARGEST WIRELESS operator in India
LARGEST private FIXED LINE operator in India
LARGEST TELECOM company listed on Indian Stock Exchanges
Note: (1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers.
5
Mobile Services Telemedia Services Enterprise Services
Latest Results – Q3 FY08/09
Key operating and financial metrics Continued Strong Performance
Q3 FY 09 Y-on-Y Wireless Customer market share leadership at
24.7%.
Customers 88.27 mn 54.0%
Total minutes on network carried in Q3 – 143 billion
Revenue $ 1,983 mn 38.3% Total employee strength – 25,553
EBITDA $ 812 mn 33.12% Balance sheet strength:
Assets - $ 12 billion
Cash Profit $ 773 mn 38.07%
Net debt - $ 677 million*
Net Income $ 444 mn 25.37% Net debt to EBITDA - 0.21 times*
EBITDA Margin 41.0%
Net Profit Margin 22.4%
ROCE 32.5%
ROE 34.1%
Note: * Net Debt is excluding fully and compulsory convertible, non-cumulative, unsecured and interest free Debentures of US$ 659.
6
Mobile Services Telemedia Services Enterprise Services
performance dashboard - 3 line graph
110,000 74.4% 80.0%
73.6%
73.1% 72.3%
71.1%
100,000
70.0%
Amount in Rs. Mn
90,000 96,334
90,203 60.0%
80,000 84,833
78,191 50.0%
70,000
69,639
33.8% 34.6% 34.7% 40.0%
60,000 32.4% 32.7%
50,000 30.0%
Q3FY08
Q4FY08
Q1FY09
Q2FY09
Q3FY09
Gross Revenue (Rs mn.) (LHS) Opex to Gross Rev (RHS) Capital Productivity
Productivity Indicators
= growing revenues + cost efficiencies + capital productivity
7
Mobile Services Telemedia Services Enterprise Services
Segment investment & contribution
Revenue
EBITDA
13% 1% -3%
5% 11%
5%
19%
20% 59%
9% 81%
10%
Mobile Services Telemedia Services
Mobile Services Telemedia Services
Enterprise Services - Carriers Enterprise Services - Corporates
Enterprise Services - Carriers Enterprise Services - Corporates
Passive Infrastructure Services Others
Passive Infrastructure Services Others
INVESTMENTS
1%
24%
50%
1%
13% h
11%
Mobile Services Telemedia Services
Enterprise Services - Carriers Enterprise Services - Corporates
Passive Infrastructure Services Others
Note: (1) Revenue and EBITDA is gross of inter segment eliminations.
8
Mobile Services Telemedia Services Enterprise Services
few recent recognitions
Bharti Airtel top honors at the 7th edition of the Frost & Sullivan ICT awards 2008 in
the categories of Large Enterprise Telecom Services, Wholesale Data Services and
Mobile Service.
Bharti Airtel and IFFCO joint venture recently bagged the ‘Best Content Service’
award and the Gujarat E-GRAM project executed by Bharti Airtel has won ‘Best
Project Management’ award at the World Communications Awards held at London
Bharti 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
Sunil Bharti Mittal, Chairman & Group CEO
GSM Association Chairman’s Award 2008
Chosen for Padma Bhushan Awards in 2007Wireless Services
10
Mobile Services Telemedia Services Enterprise ServicesKPIs…Indian Wireless Market
Sub Base : 347 mn
JK →second largest market
Wireless Penetration: 29.9%
PB
HP
→lowest in the world
UP(W) HHI Index: very high
HAR
→one of the most competitive market
DELHI
DEL
Prepaid Base: 90%+
RAJ AS
UP(E) →one of the highest in the
BH
NE world
GUJ MADHYA MP
PRADESH` WB Usage per sub per month:
OR
Minutes: 449
Kol
MAH →one of the highest
MUM
Metros
ARPU: ~ US$ 6.83
→one of the lowest
AP A Cat.
KK Rate per minute: 1.4 cents
→ one of the lowest in the
CHN B Cat.
world
KER
TN C Cat. VAS: ~ 9%
→One of the lowest
Note: (1) Subscriber numbers and wireless penetration numbers as at December 31, 2008 as per TRAI. (2) Other indicators on the slide are based on QE Dec, 2008 Global
Wireless Matrix released by Merrill Lynch, and reflective of Industry numbers.
11
Mobile Services Telemedia Services Enterprise ServicesRapidly Growing Wireless Market
10 mn net adds per month S-curve triggered
Closing Customers (mn) Net Adds (mn) 90%
400 11 80%
350 10 70%
9
300 8 60%
250 7
6
50%
200
5 40%
150 4
100 3 30%
2
50 20%
1
- - 10%
Mar-01
Jun-01
Dec-01
Mar-02
Jun-02
Dec-02
Mar-03
Jun-03
Dec-03
Mar-04
Jun-04
Dec-04
Mar-05
Jun-05
Dec-05
Mar-06
Jun-06
Dec-06
Mar-07
Jun-07
Dec-07
Mar-08
Jun-08
Dec-08
Sep-01
Sep-02
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Sep-08
0%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
fastest growing market in the world
Note: (1) Actual Data as per Industry Association Releases and Industry Estimates.
12
Mobile Services Telemedia Services Enterprise ServicesWireless Market Structure
Subscriber Trends Customer Market Share – CMS (%)
24.7%
90.00 85.7 25.0%
Dec-08 Dec-07 Net adds during the year 23.6%
80.00 23.0% CMS(Dec'08) CMS(Dec'07)
21.0%
70.00 61.3 60.9
55.2 19.0% 17.7% 17.6%
60.00 50.4 17.5% 17.1% 17.1%
17.0%
50.00 41.0 14.5%
(mn)
40.0 39.9 15.0%
40.00 34.2 31.8
30.5 13.0%
30.00 20.4 21.1 21.1 21.7 22.6 9.9%
11.0%
20.00 13.2 14.8 9.0% 9.2% 9.3%
10.4 10.0 7.8 9.0%
10.00 6.5% 6.3%
7.0%
- 5.0%
Airtel
BSNL+MTNL
Vodafone
Reliance
Idea
Tata
Others
Airtel
BSNL+MTNL
Vodafone
Reliance
Idea
Tata
Others
• Airtel continuously consolidating its market leadership position despite intense competition.
• Airtel current monthly net adds at 2.73 million vs 2.2 million a year ago.
• Market share of net adds at 25.2%.
• Airtel ranks 1& 2 in 18 circles.
• 55% of net adds coming from B&C circles (rural India).
leads on revenue market share also
13
Mobile Services Telemedia Services Enterprise ServicesRoad map
Current March 2009
Presence Operational in 23 circles of India on Looking for options in primarily in
GSM technology. emerging markets
Launched Operations in Srilanka
Population 79% of population covering 5,057 • Poised to cover all census towns
Coverage census towns and over 4 lakhs non- and majority of non-census towns
census towns and villages. and villages
• Penetration wider and deeper into
rural India
Network Rollout & • Hive off of passive infrastructure • Network sites ~ 100,000 +
Strength into a separate independent tower
• Plan to get 3G license and
company
spectrum.
• Largest GSM (900/1800 Mhz)
network in India comprising of over
88,319 network sites
• Strong partners: Ericsson; Nokia
14
Mobile Services Telemedia Services Enterprise ServicesRoad map
Current March 2009
Sales & • One of the widest distribution • Continue distribution expansion,
Distribution network. especially in rural areas
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
Customer Service • Continuous improvement in CSAT • Focus on service through service
scores training and employee sensitivity
• Multi pronged service strategy in • Unified service backend for enhanced
place customer experience
Employee • Significant improvement in • Sustain employee engagement
Engagement employee engagement
• Focus on employee capability
• Awarded “Great Work Place 2008” by development and leadership pipeline
Gallup
15
Mobile Services Telemedia Services Enterprise Servicesfirst mover advantage/ product innovations
Electronic
Easy Music
Recharge /
Micro
Prepaid
Life time validity product
Hello Tunes
(Ring Back
Tones)
Song Catcher
Call Home Service
Music on Demand
Airtel Live
(Portal) Google
search Portfolio Manager
(Stock Tracker)
Money Transfers
iPhone
Blackberry
M Commerce
¨ focus on product innovations
16
Mobile Services Telemedia Services Enterprise ServicesPerformance Indicators
Customers & Market Share Prepaid/Postpaid
90.0 85.7 25.0% 105.0%
77.5
80.0 24.6% 24.7% 24.5% 99.6%
69.4 100.0%
70.0 24.2%
62.0 24.0%
60.0 95.4%
55.2 23.7% 95.0% 92.9% 93.5%
23.6% 91.6% 92.3%
23.5% 91.0%
50.0 90.4%
90.0%
40.0 23.0%
Q308 Q408 Q109 Q209 Q309
85.0%
Customers (Mn) CMS (%) Q208 Q308 Q408 Q109 Q209 Q309
Prepaid Subs Prepaid Net Adds
ARPU & RPM MoU/Sub/Month & MON
2.00 9.0
550 142,588 160,000
1.56 1.48 520
1.50 1.35 1.32 8.0 120,000
1.29
490 73,840
1.00 7.4 7.0 460 80,000
534 526
6.7
430 507 505
0.50 6.0 474 40,000
400
- 5.0
Q308 Q408 Q109 Q209 Q309 370 0
Q308 Q408 Q109 Q209 Q309
RPM (cents ) ARPU (US D)
MoU/Sub (Min) Total minutes on Network (Mn Min)
17
Mobile Services Telemedia Services Enterprise ServicesPerformance Indicators
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
40.8 35.5 30.7 30.2 31.4
550
1,700
1,600
1,634
1,500 500 514
1,400 1,499
1,300 1,423
1,200 1,322
471 469
1,100 450
1,155 453
1,000
900 437
Q308 Q408 Q109 Q209 Q309 400
Q308 Q408 Q109 Q209 Q309
18
Mobile Services Telemedia Services Enterprise ServicesTelemedia Services
19
Mobile Services Telemedia Services Enterprise ServicesA 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: 2.6 million (end December,2008)
4. Broadband (DSL with speeds>256 kbps) penetration at 37% of customer base.
5. Average ARPU for Quarter ended December 2008 $ 22.6 per month.
6. Segment contributing to 9% of overall revenues of the company.
7. EBITDA margin of over 41.7%.
Broadband revolution to follow wireless revolution in India
20
Mobile Services Telemedia Services Enterprise ServicesTelemedia Services
Business Units Media SMBs Homes
• Voice
• DTH • Broadband
Products • Data
• IPTV • Voice
• Mobile Services
A Pan-India DTH Dominant Broadband &
One-Stop Shop for All
Businesses; and a Fixed Voice share of the
Goal Airtel Services and
targeted IPTV Presence affluent in targeted 94
Solutions to SMBs
in top metros cities
• Deeper & Not Wider: 94
• Best-in-class
• Data Products: Cities
technology:
Internet, MPLS etc • Vertical & Not
• World-class Installation
• Integrated Solutions to Horizontal: Hi-Rise
& Customer Service
Strategies Drive Share of wallet • Network Enhancement
• Interactive VAS to Drive
• Strategic Alliances to Deliver 8+ MBPS
ARPU enhancement
• Indirect Channel to • New Products & VAS to
• One Airtel Synergies for
Drive Penetration drive Flat, Combo
Distribution, Brand & IT
Plans
21
Mobile Services Telemedia Services Enterprise ServicesProduct Portfolio
Our Media Play
22
Mobile Services Telemedia Services Enterprise ServicesPerformance Indicators
Customers (overall & DSL) ARPU (USD)
2,750 1,200
28.0
23.5 23.4 23.4 23.6 22.6
922 992 24.0
2,500 853 2,619 1,000
795
751 2,509 20.0
2,250 2,394 800
2,283 16.0
2,000 2,178 600
12.0
1,750 400
8.0
1,500 200
4.0
1,250 0 0.0
Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309
B&T Customers ('000) DSL Customers ('000)
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
190 43.4 43.8 42.2 43.8 41.7
80.0
180 175 174 75.0
76
170 70.0 73
164
65.0 69 69
160 157 65
60.0
150
55.0
150
50.0
140 45.0
Q308 Q408 Q109 Q209 Q309 40.0
Q308 Q408 Q109 Q209 Q309
23
Mobile Services Telemedia Services Enterprise ServicesEnterprise Services
24
Mobile Services Telemedia Services Enterprise ServicesA snapshot
Carrier: - 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
25
Mobile Services Telemedia Services Enterprise ServicesEnterprise Services – Carriers NLD
Voice Network
Jalandhar
Chandigarh
Delhi
Jaipur Lucknow
Ahmedabad
Bhopal
Kolkata
Nagpur
Mumbai
Hyderabad
Bangalore Chennai
Coimbatore
Ernakulam
Legend Capative Traffic (Group Traffic) ~ 90%
Existing OFC Route
Under Execution
NLD minutes carrierd (Q3 FY 09) >11.6 Bn Min
Optic fiber Capacity (Q3 FY 09) 90,205
26
Mobile Services Telemedia Services Enterprise ServicesEnterprise Services – Carriers ILD
Legend SEA-ME-WE-4 Connectivity to West
i-2-i i-2i Conectivity to East
SEA-ME-WE-4 ILD minutes carried (Q3 FY 09) 2.6 Bn Min
Other Int’l Connectivity ILD Gateways 3
Int’l Gateways Connectivity Landing Stations 2
27
Mobile Services Telemedia Services Enterprise ServicesPerformance Indicators - carriers
Voice Minutes on Network Revenues (USD mn)
11,349 11,609
12,000
10,322
400.0
9,398 365
10,000 350
7,898 360.0
8,000 323
6,000 320.0
4,000 2,603
1,850 2,048 2,284 280.0 259
1,591
2,000
234
0
240.0
Q308 Q408 Q109 Q209 Q309
200.0
NLD Minutes (mn) ILD Minutes (mn) Q308 Q408 Q109 Q209 Q309
EBITDA (USD mn) & Margin (%)
32.2 32 43.9 43.2 45.4
160.0
166
140.0 151
142
120.0
100.0
80.0
83
60.0 75
40.0
20.0
0.0
Q308 Q408 Q109 Q209 Q309
28
Mobile Services Telemedia Services Enterprise ServicesEnterprise Services - Corporates
Mobile services Voice services
Satellite services Managed data &
Internet services
competition limited
s egment one s top telecom s olution
target 2,000 top large corporates
Managed e - Managed customized leveraging integrated play
business services integrated solutions
29
Mobile Services Telemedia Services Enterprise ServicesPerformance Indicators - corporates
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
41.9 57 45.7 41.4 42.9
120.0 60.0
100
100.0 40.0 44
42
84 36 36
78 80
28
80.0 20.0
68
60.0 0.0
Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309
30
Mobile Services Telemedia Services Enterprise ServicesPassive Infrastructure Services
31
Mobile Services Telemedia Services Enterprise ServicesMarket landscape
No of Towers
Description
(Estimates)
Indus Towers 91,715 JV between Airtel;Idea & Vodafone operational in 16 circles
Bharti Infratel 26,289 Subsidiary of Airtel operating in 11 circles
Reliance Infratel 40,000 Subsidiary of Reliance operating in all 23 circles
BSNL+MTNL 40,000 State Owned Telephone Company
Tata + Quippo 18,000 Present in 23 Circles
Aircell 7,000 Operator owned towers, present in 13 circles
Essar 4,500 Part of Essar Group, present in 13 circles
GTL 6,300 Present in 15 circles
TOTAL 233,804
No of Subs (in
million) 347
Subs/Tower Approx 1,484
Industry estimated to have 350,000 towers by 2010
Source: Company data and Industry Estimates
32
Mobile Services Telemedia Services Enterprise ServicesA snapshot
Bharti Infratel operates in 11 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 1.34.
Provide energy optimization solutions and other network management
services.
Evaluate other revenue streams.
Key performance Indicators:
Sharing Factor: 1.34
Sharing Revenue per sharing operator per month at Rs. 31,488.
EBITDA margin: 33.5%
Aim to be the preferred choice of vendor for all existing and new
operators
33
Mobile Services Telemedia Services Enterprise ServicesTo conclude
34
Mobile Services Telemedia Services Enterprise ServicesKey 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
35
Mobile Services Telemedia Services Enterprise ServicesDisclaimer 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, 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. “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.bhartiairtel.in For any queries, write to: ir@bharti.in
You can also read
