Professional Documents
Culture Documents
November 2010
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Fully integrated telecom player offering end to end solutions and entering new geographies
Growth trajectory reflected in the numbers
1996 2010
Single Circle Operator Company Profile Largest integrated private telecom
operator
Note: 1) 2010 financials are as per FY 2010 results. 2) Exchange rate: Financials as of 31st Mar 10 : Rs 45.14
3) The above numbers do not include Africa which has 40 mn subs as on 30th Sept’10.
Revenue & Profitability trends
Total revenues EBITDA
36% 5,000
CAGR 39%
10,000
8,776 CAGR
8,188
4,000 3,550
8,000 3,360
( In $ M n )
5,987 3,000 2,519
(In $ M n )
6,000
4,103
4,000
2,000 1,651
2,000 1,000
0 0
2007 2008 2009 2010 2007 2008 2009 2010
Years Years
3,000 1,484
( In $ M n )
2,467 1,500
(In $ M n)
2,500
2,000 943
1,619 1,000
1,500
1,000 500
500
0 0
2007 2008 2009 2010
2007 2008 2009 2010
Year s
Year s
Source: Financials for the year ended March 31, 2006, 2007, 2008, 2009 & 2010 are audited and as per
USGAAP.The above numbers are in Mn USD re-stated at 31st Mar 10 exchange rate..Exchange rate as of
31st Mar 10 : Rs 45.14
Financials & Positioning
Note: FY10 numbers are as per IFRS as per June10 quarterly report. Exchange rate for Re to $ conversion: 45.14.
* EBITDA Margin before acquisition related costs of Rs 976 mn for the quarter & FY ended Mar 31, 2010.
(1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of
subscribers.
Latest Results – 2Q’11
145,000 72%
66% 70.0%
63% 63%
Total Revenue (Rs.mn)
135,000
60.0%
125,000 122,308
50.0%
115,000
39.9% 41.4%
38.4% 45.7%
42.7% 40.0%
105,000
107,491
103,785 103,053
95,000 30.0%
Q210 Q310 Q410 Q111 Q211
Total Revenue (Rs. Mn) (LHS) Opex to Total Revenue (RHS) Capital Productivity (RHS)
Note: (1) Subscriber numbers and wireless penetration numbers as on Sept 30, 2010 are as per COAI &
AUSPI release as TRAI nos for Sept’10 are not yet released (2) Other indicators on the slide are based on
Global Wireless Matrix 3Q10 dated 24th September 10 by Merrill Lynch, and reflective of Industry
numbers.
Rapidly Growing Indian Wireless Market
80%
800 22
70%
700 20
18 60%
600 16
50%
500 14
12
(m n )
40%
400 10 30%
300 8
200 6 20%
4 10%
100 2
- - 0%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
M a y -0 4
M a y -0 5
M a y -0 6
M a y -0 7
M a y -0 8
M a y -0 9
M a y -1 0
N o v -0 3
N o v -0 4
N o v -0 5
N o v -0 6
N o v -0 7
N o v -0 8
N o v -0 9
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 (%)
25%
23.4%
23%
160 143 20.8%
21%
140 18.3%
117 116 19% 17.6%
111 17.1%
120 17%
16.8%
100 86 83 84 15%
74 79 75 13.4%
(mn)
80 63 13% 12.2%
11.5%
60 51 47 10.8%10.9% 10.8%
44 11% 9.9%
33 31 33 32 31
40 23 9%
20
20 7% 6.5%
- 5%
Airtel
Vodafone
BSN L+MTN L
Airtel
Vodafone
BSNL+MTNL
R eliance
Idea
Tata
Reliance
Idea
Tata
Others
Others
CM S(Sep'10) CM S(Sep'09)
Sep-10
Sep-09
• Airtel continuously consolidating its market leadership position despite intense competition
• Airtel current monthly net adds at 2.0 million vs. 2.8 million a year ago
• Airtel ranks 1& 2 in 17 circles in terms of number of subscribers
• Over 71% of net adds coming from B&C circles (rural India)
Note: Based on subscriber data for India as on August 31 2010 as per TRAI press release.
Airtel…Performance Indicators (Operational)
Customers & Market Share Prepaid/Postpaid
105%
101.1%
- 0 420 80,000
Q210 Q310 Q410 Q111 Q211
Q210 Q310 Q410 Q111 Q211
M oU/ Sub (M in) Tot al minut es on Net work (M n M in)
RPM (Paise) A RPU (INR)
Current positioning and way forward…
Cost
Net Adds
Improving cost efficiencies
Non financial Maximizing Driven by rural strategy
Lowest cost GSM network
vitals usage
Brand Increasing the usage through U&R drive
Distribution Wallet share
Churn lower than industry
Spectrum Mix (900/1800 MHz)
Telemedia Services
A Snapshot
Largest private operator having presence in the voice , broadband , IPTV and data.
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
Pan-India network with 134,026 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.
NLD Minutes Carried: 17.7 Billion ; ILD Minutes Carried: 3.0 Billion
Passive Infra
Africa
Financial Performance – Passive Infra
Revenue EBITDA
10,000
500 34.2 34.0 37.1 35.5 37.1
471 9,000
7,858
431 438 8,000 7,240
450 7,224
7,000 6,267
394
400 5,831
6,000
355
5,000
350
4,000
300 3,000
Q210 Q310 Q410 Q111 Q211 Q210 Q310 Q410 Q111 Q211
The above nos for Revenue & EBITDA are in IFRS as per Quarterly Report & includes proportionate
share (42%) in Indus .
Operational Performance – Passive Infra
Infratel Indus
Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor
106,438
107,000 1.90
33,000 1.70 104,901
31,196 31,831 105,000
32,000 30,568 102,696 102,938 1.80
1.65 1.65 103,000 100,728 1.78
31,000 29,806 1.62 1.60 1.75 1.70
101,000
1.71
30,000
29,112 1.57 99,000 1.66 1.60
1.61
29,000 1.50 97,000
1.49 1.50
28,000 95,000
27,000 1.40 93,000 1.40
Q2 10 Q3 10 Q410 Q111 Q211 Q210 Q310 Q410 Q111 Q211
Sharing Revenue per Sharing Operator per Month (Rs) Sharing Revenue per Sharing Operator per Month (Rs)
41,000 38,041
38,107 36,878
36,696 40,000
37,000 36,290
35,000 31,389
29,674 30,379
33,000 30,000 28,333
25,917
25,000
29,000
20,000
25,000 15,000
Q2 10 Q3 10 Q410 Q111 Q211 Q210 Q310 Q410 Q111 Q211
Aims to enhance the tenancy ratio & be the preferred choice of vendor for all existing
and new operators
Transaction Rationale
Shareholding and
Management
100% Cash Transaction
Control
Global Focus on Core
Brand – ‘Airtel’ Middle East Operators
Stature
Strong Platform
for Future Expansion
Low Competitive
Manageable Intensity
Deal Size
Diversification of
Significant
Speed in
India Risk Synergies Transaction
Avoid Greenfield
Repayment of Debt
The proposed transaction meets the objectives of Airtel with long term strategic
benefits and creates tremendous shareholder value
Differences between the two markets
India Africa(1)
Average Number of
10-12 3-5
Competitors
Business Model High usage, low pricing model Low usage, high pricing model
Airtel Africa
Total Africa:
450mn
1,025mn
575
450
Penetration, 2009
VAS: ~ 7.1%
→One of the lowest
Most Preferred Cellular Service Provider - 2010 CNBC Awaaz Consumer Awards
‘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 Telecom Leader - Voice & Data magazine
Manoj Kohli, CEO( International) & Joint MD - Telecom Man of the year - Tele.net