Investor Presentation - Amazon Simple Storage Service · Investor Presentation ... Sunil Bharti...
Transcript of Investor Presentation - Amazon Simple Storage Service · Investor Presentation ... Sunil Bharti...
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: [email protected]
“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.”
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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) : ~7.3%→ second highest growing economy
GDP Size (PPP adjusted): US$ 3 trillion→ fourth largest economy in the world
Telecom penetration: 36.98% (429.72 mntelecom subs)
→ one of the lowest→ Govt. target to reach 500 mn.
telecom subs by 2010Broadband penetration: 0.54% (6.22 mn)
→ one of the lowest→ Govt. target to reach 20 mn.
Broadband subs by 2010
Note: (1) Telecom and Broadband penetration is as at March 31st 2009, as per TRAI press release.
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Mobile Services Telemedia Services Enterprise Services
The Company...Bharti Airtel
Bharti Airtel – an integrated telco
Wireless Services
2G/3GRural Market
Telemedia Services
Fixed Line
Broadband
DTH (Media)/IPTV
Enterprise Services
CarriersCorporate
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 – Q4 FY08/09
Key operating and financial metrics
Q4 FY 09 Y-on-Y
Customers 96.65 mn 50.0%
Revenue $ 1,928 mn 25.6%
EBITDA $ 785 mn 23.1%
Cash Profit $ 743 mn 24.8%
Net Income $ 440 mn 20.9%
EBITDA Margin 40.7%
Net Profit Margin 22.8%
ROCE 30.8%
ROE 32.6%
Continued Strong Performance
Wireless Customer market share leadership at 24.0%.
Total minutes on network carried in Q4 – 150 billion
Total employee strength – 24,538
Balance sheet strength:
Assets - $ 12 billion
Net debt - $ 629 million*
Net debt to EBITDA - 0.25 times*
Note: * Net Debt is excluding fully and compulsory convertible, non-cumulative, unsecured and interest free Debentures of US$ 738.
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Mobile Services Telemedia Services Enterprise Services
performance dashboard - 3 line graph
Productivity Indicators = growing revenues + cost efficiencies + capital productivity
98,24596,33490,203
84,833
78,191
33%34% 35% 35% 34%
74% 74% 73% 72% 70%
50,000
60,000
70,000
80,000
90,000
100,000
110,000
Q4F
Y08
Q1F
Y09
Q2F
Y09
Q3F
Y09
Q4F
Y09
Am
ount
in R
s. M
n
30.0%
40.0%
50.0%
60.0%
70.0%
Gross Revenue (Rs mn.) (LHS) Opex to Gross Rev (RHS) Capital Productivity
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Mobile Services Telemedia Services Enterprise Services
Segment investment & contribution
Revenue
84%9%
18%4% 7% 1%
Mobile Services Telemedia ServicesEnterprise Services - Carriers Enterprise Services - CorporatesPassive Infrastructure Services Others
EBITDA
65%9%
20%
5% 7% -3%
Mobile Services Telemedia ServicesEnterprise Services - Carriers Enterprise Services - CorporatesPassive Infrastructure Services Others
Note: (1) Revenue and EBITDA is gross of inter segment eliminations.
INVESTMENTS
49%
11%13%1%
24% 1%
Mobile Services Telemedia ServicesEnterprise Services - Carriers Enterprise Services - CorporatesPassive Infrastructure Services Others
few recent recognitionsBharti 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 2007
Sarvjit Dhillon, Group Director
Best Performing CFO in Telecommunications Sector by CNBC-TV18 in March 2009
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Mobile Services Telemedia Services Enterprise Services
Sub Base : 391.76 mn→second largest market
Wireless Penetration: 33.7%→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: 430
→one of the highestARPU: ~ US$ 5.95
→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 March 31, 2009 as per TRAI. (2) Other indicators on the slide are based on QE Mar, 2009 Global Wireless Matrix released by Merrill Lynch, and reflective of Industry numbers.
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Mobile Services Telemedia Services Enterprise Services
Net Adds in Feb…15.6 MN, higher than 12 MN average net adds per month over last 6
monthsS-curve triggered
Rapidly Growing Wireless Market
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Note: (1) Actual Data as per Industry Association Releases and Industry Estimates.
fastest growing market in the world
-50
100150200250300350400450
Mar
-01
Sep-
01
Mar
-02
Sep-
02
Mar
-03
Sep-
03
Mar
-04
Sep-
04
Mar
-05
Sep-
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Mar
-06
Sep-
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Mar
-07
Sep-
07
Mar
-08
Sep-
08
Mar
-09
-1234567891011
Closing Customers (mn) Net Adds (mn)
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Mobile Services Telemedia Services Enterprise Services
Wireless Market Structure
72.67 68.7756.63
38.89 35.1225.76
31.9426.87 24.64
12.30 14.89 10.79 9.24
93.92
-10.0020.0030.0040.0050.0060.0070.0080.0090.00
100.00
Airt
el
Rel
ianc
e
Vod
afon
e
BSN
L+M
TNL
Idea
Tata
Oth
ers
(mn)
Mar-09 Mar-08 Net adds during the year
• Airtel continuously consolidating its market leadership position despite intense competition.• Airtel current monthly net adds at 2.81 million vs 2.25 million a year ago.• Airtel ranks 1& 2 in 18 circles in terms of number of subscribers.• 56% of net adds coming from B&C circles (rural India).
Continues to lead on revenue market share
Subscriber Trends
24.0%
18.5%
14.5%
9.0%
17.6%
9.9%
6.6% 6.3%
9.3%9.2%
17.0%16.9%17.5%
23.7%
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
Vod
afon
e
BS
NL+
MTN
L
Idea
Tata
Oth
ers
CMS(Mar'09) CMS(Mar'08)
Customer Market Share – CMS (%)
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Mobile Services Telemedia Services Enterprise Services14
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
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Mobile Services Telemedia Services Enterprise Services
Performance Indicators
90.4% 91.0% 91.6% 92.3% 92.9% 93.5% 94.2%
100.8%
95.4%
85.0%
90.0%
95.0%
100.0%
105.0%
Q208 Q308 Q408 Q109 Q209 Q309 Q409
Prepaid Subs Prepaid Net Adds
7.0
6.06.46.5
6.97.0
7.2
1.21.31.21.3
1.41.5
1.5
5.0
5.5
6.0
6.5
7.0
7.5
Q208 Q308 Q408 Q109 Q209 Q309 Q4091.01.11.21.31.41.51.6
ARPU (US$) RPM (US Cents)
507
469 474
534 526 505 485130.7123.6
115.8105.289.173.864.4
300
350
400
450
500
550
Q208 Q308 Q408 Q109 Q209 Q309 Q4090.0
50.0
100.0
150.0
MOU / sub Total mins (bn)
Customers & Market Share Prepaid/Postpaid
MoU/Sub/Month & MONARPU & RPM
93.985.7
77.5
69.4
62.0
48.955.2 23.7%
24.2%
24.7%
24.0%
23.4%23.6%
24.6%
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Q208 Q308 Q408 Q109 Q209 Q309 Q40923.0%
23.5%
24.0%
24.5%
25.0%
Customers (Mn) CMS (%)
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Mobile Services Telemedia Services Enterprise Services
Performance Indicators
9931,101
1,2601,357
1,4301,558
1,614
9001,0001,1001,2001,3001,4001,5001,6001,700
Q208 Q308 Q408 Q109 Q209 Q309 Q409
EBITDA (USD mn) & Margin (%)Revenues (USD mn)
407
508490
432449 447
416
400
450
500
550
Q208 Q308 Q408 Q109 Q209 Q309 Q409
41.0 40.8 35.5 30.7 30.2 31.4 31.5
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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: 2.7 million (end March,2009)
4. Broadband (DSL with speeds>256 kbps) penetration at 38% of customer base.
5. Average ARPU for Quarter ended March’09 $ 21.0 per month.
6. Segment contributing to 9% of overall revenues of the company.
7. EBITDA margin of over 42.1%.
Broadband revolution to follow wireless revolution in India
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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 95 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: 95 Cities
• Vertical & Not Horizontal: Hi-Rise
• Network Enhancement to Deliver 8+ MBPS
• New Products & VAS to drive Flat, Combo Plans
20
Mobile Services Telemedia Services Enterprise Services
Product Portfolio
Our Media Play
21
Mobile Services Telemedia Services Enterprise Services
Performance Indicators
2,7262,619
2,1782,283 2,394
2,509
2,075
9921,072
922853795751705
1,250
1,500
1,750
2,000
2,250
2,500
2,750
Q208 Q308 Q408 Q109 Q209 Q309 Q4090
200
400
600
800
1,000
1,200
B&T Customers ('000) DSL Customers ('000)
143
150
157
167 166 168
140
150
160
170
180
190
Q208 Q308 Q408 Q109 Q209 Q309 Q409
716973
666662
55
40.045.050.055.060.065.070.075.080.0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
39.7 43.4 43.8 42.2 43.6 41.7 42.1
Customers (overall & DSL) ARPU (USD)
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
22.6 22.4 22.3 22.3 22.5 21.6 21.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
28.0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
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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
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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 (Q4FY09) 11.7 Bn Minoptic fibre capacity (Q4FY09) 101,337 km
25
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 (Q4FY09) 2.8 Bn MinILD gateways 4landing stations 2
26
Mobile Services Telemedia Services Enterprise Services
Performance Indicators - carriers
6,7747,898
9,39810,322
11,349 11,609 11,690
2,7722,6032,2842,0481,8501,5911,345
0
2,000
4,000
6,000
8,000
10,000
12,000
Q208 Q308 Q408 Q109 Q209 Q309 Q409
NLD Minutes (mn) ILD Minutes (mn)
197223
247
308334
348 344
160.0
200.0
240.0
280.0
320.0
360.0
400.0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
Voice Minutes on Network Revenues (USD mn)
EBITDA (USD mn) & Margin (%)
68 72 79
135 144158 155
0.020.040.060.080.0
100.0120.0140.0160.0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
34.5 32.2 32.0 43.9 43.2 45.4 45.1
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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
28
Mobile Services Telemedia Services Enterprise Services
Performance Indicators - corporates
28 27
4235
4034
40
0.0
20.0
40.0
60.0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
41.9 41.9 57.0 45.7 41.4 42.9 49.3
Revenues (USD mn) EBITDA (USD mn) & Margin (%)
67 65
74 76
96
80 81
60.0
80.0
100.0
120.0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
30
Mobile Services Telemedia Services Enterprise Services
A snapshotBharti 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. 33,586.
EBITDA margin: 40.1%
Aim to be the preferred choice of vendor for all existing and new operators
32
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: [email protected]
“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.”