Airtel India - Investor Day 16Th November Agenda
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Airtel India - Investor Day 16th November Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy Who we are : Bharti Airtel #2 #2 Telecom operator in India Telecom operator in Africa #3 16 Telecom operator globally* Countries presence globally * In terms of customer base Our Size : Global $12.1 B $4.2 B 4.2 Global Revenues (LTM) Global EBITDA (LTM) Net Debt : EBITDA (LTM) 448 M+ 125 M+ 1.8 B+ Customers Wireless Data Customers Addressable population LTM = Last Twelve Months as on Sep’18 Customer Data as on Sep’18 exit Our Portfolio : India Mobile Services Airtel Business Homes 330 Mn+ Customers #1 Enterprise Telco in India 2 Mn+ customers Digital TV Tower Infrastructure Payments Bank 15 Mn customers Among Top Passive Infra Providers 30 Mn Banking Customers Our Portfolio : India Mobile Business Homes Broadband Customers (M) 304 Customers (M) 2.2 Revenue (Rs Mn) 462,640 Revenue (Rs Mn) 25,265 EBITDA % 32.6% EBITDA % 46.7% Airtel Business Digital TV Large Corporates 2,000 Customers (M) 14.2 Revenue (Rs Mn) 113,566 Revenue (Rs Mn) 37,570 EBITDA % 37.4% EBITDA % 37.9% Above figures are for FY18 Our Digital Services Wynk Music Airtel TV myAirtel 100 Mn+ Customers 80 Mn+ Customers 80 Mn+ Customers One Home Homes Platform Device Platform Payments Platform One Billing Layer on all Services Solid Platforms – Device, Lenders, Delivery 1.2 Mn Retailers on one App Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy 1a. Obsession with Network Experience : Spectrum Airtel’s Spectrum Share of Liberalized Spectrum Aircel Band Footprint Holding per Circle BSNL 3.1% 9.3% 2 RCom Airtel Low Band 15 Circles 5 – 10 Mhz 7.0% 28.4% 1 Mid Band Pan India 15 – 25 Mhz Jio 20.5% 31.7% High Band Pan India 20 – 30 Mhz Voda + Idea Massive spectrum holdings across all bands 1. Except for Kolkata (9 Mhz) and West Bengal (6.2 Mhz) 2. Includes liberalized spectrum of Tata 1b. Obsession with Network Experience Largest Ever Deployment Extensive Fiber Roll-out State of the Art Tools Geo-Spatial Analysis 100 mbps 200 mbps 1 gbps Self-Optimizing Network ~200K Base Stations In last 2 years Bulk of our Sites are 200+ Mbps Digitization Continuously rated as India’s fastest network 2. Obsession with Customer Experience Decision Tree Platform ‘Next Gen’ Digital Stores Open Network Call-center Calls per customer x 75% reduction 0.25x FY'15 FY'18 3. Scientific Sales & Marketing Deep Customer Understanding Omni Channel Delivery Powerful Tools 1.2 M Retailers GOAL 2,850 Airtel Stores Customer 360 Mitra Own Digital Apps Geo Spatial Analytics Data Science 4. A War on Waste Opex Growth YoY 8.0% 6.9% 6.0% 5.0% 4.0% 3.1% 2.0% • Smart Procurement 0.0% FY'15 FY'16 FY'17 FY'18 • Frugal Cost Culture -2.0% • Continuous Process Redesign -4.0% -3.1% • Digitization and Automation 5. Capacity to play multiple games Dedicated Teams for the Core Preparing for the Future Design & Execution Machines Movies, Music, myAirtel Circles One Home Open Platforms Center New Products Excellence in Partnerships Business Environment Remains Challenging Massive Need for Capex ARPU Erosion by 45% Disruption Battle for 4G Primary Slot 10x Data Traffic Growth Financial Performance : India Reported Revenue (Rs. Cr) EBITDA % 84,000 Series 1 73,422 41.4% 74,000 70,844 40.9% 64,529 64,096 39.2% 64,000 37.2% 54,000 44,000 34,000 28.5% 24,000 14,000 4,000 FY'15 FY'16 FY'17 FY'18 FY'15 FY'16 FY'17 FY'18 Q2'19 YoY Growth % 12.1% 9.8% 3.6% -12.7% Operational Performance : Mobile India Mobile Customers (Mn) ARPU (Rs.) 350 220 333 188 330 170 310 145 282 290 260 120 100 270 250 70 230 210 20 Q2'17 Q2'18 Q2'19 Q2'17 Q2'18 Q2'19 Data Consumed (PB / Day) Voice Minutes per Day (Bn) 8 7.5 30 26.9 7 25 6 20 5 4.8 15 4 3.4 10 7.9 3 5 1.8 2 0 Q2'17 Q2'18 Q2'19 Q2'17 Q2'18 Q2'19 RMS Performance 34.4% Airtel 32.1% 31.3% 30.7% 33.8% A+T+T 22.9% Vodafone 21.5% 19.9% 18.7% 19.4% 19.3% Idea 34.7% 16.3% 15.4% V+I Others 28.5% 23.3% 21.4% 22.4% 22.4% Jio 10.80% 11.6% Jio 9.1% Others Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 RMS is calculated on the basis of adjusted gross revenue including NLD. Source: TRAI Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy The Industry and Opportunity Mobile Homes B2B Explosive 4G Growth # 4G Phones (Mn) Avg. Time Spent (Mins/Day) 300 Series 1 Series 1 320 250 250 220 200 200 120 180 150 Sep'16 Sep'17 Sep'18 More than a Sep'16 Sep'17 Sep'18 Phone Data usage per month (GBs) Voice Mins per month 750 9 686 Series 1 650 550 518 4 450 406 1 350 Sep'16 Sep'17 Sep'18 Sep'16 Sep'17 Sep'18 *BasesBased on oninternal internal estimates estimates and Statista.com and Statista.com data Data Opportunity Customer Revenue Contribution Postpaid Prepaid Smartphones Prepaid Mass Market Opportunity Customers Geography Different Customers, Different Needs High Potential Districts The Industry and Opportunity Mobile Homes B2B Homes Affluence Rising The Home Opportunity Households with Income > Rs 10 L p.a.* Home Broadband Pay TV 36 Mn 18 Mn 140 Mn 30 Mn 2 Mn 15 Mn 2018 2020 * Source: BCG - The New Indian The Industry and Opportunity Mobile Homes B2B B2B Significant Potential Use Occasions Exploding Market Size Connectivity Non-Connectivity Top 3000 12,000 Cr Data Centers Connectivity SME Huge (1.4 Mn) Opportunity 10,000 Cr SOHO (8.5 Mn) Video Conferencing Audio conferencing Source: Frost & Sullivan Research Reports and Internal Estimates Agenda • Introduction to Airtel • Our Strengths • The Industry and Opportunity • Our Strategy Airtel Strategy Win 4G decisively Win 4G Decisively Our Strategy Postpaid • Gain Decisive Leadership through an Exceptional Experience Prepaid Smartphones • Win in Urban India and Top Villages Prepaid Mass Market • Upgrade to 4G. Win 4G Decisively Services Devices Network Experience Airtel Strategy Win 4G Win with Brilliant decisively Experience Win with Brilliant Experience Superior Network Experience Create Capacity Focus on Quality Disrupt and Innovate • Massive Spectrum Holdings • Track Quality at Customer Level • Reduce Cost per GB • L900 Re-farming • New Age NOC • Work with Disruptive Vendors • Fiber Densification • Drive VoLTE • VRan, ePC etc Transparency and Personalization : Open Network 2.0 Win with Brilliant Experience Automation and Digitization Digital Experience at Stores Personalized Network Experience Airtel Strategy Win 4G Win with Brilliant Build New decisively Experience Revenues Build New Revenues Accelerate Homes Broadband DTH Integrated Homes Focused Expansion Rapid Expansion Converged Solutions Build New Revenues Accelerate B2B Expansion Alliances Build New Verticals Grow SME & Go Deep More Products, Stronger Relationships Build New Revenues Grow Digital Services Content Services FinTech Services Build New Revenues Partnership Principles T Transparent Commercials E Ease of Integration on our Platform A Accelerated Adoption of Partner Propositions M Mutual Growth Build New Revenues The Open Telco Platform Alliances (Examples) Services Device Mobile Platform Hardware Fixed Customer Internet 360 TV Services Home Products Platform Office Software 3P SW & HW Payments Payments Bank Utilities Platform Goods & Services Airtel Strategy Win 4G Win with Brilliant Build New Win with a War decisively Experience Revenues on Waste Win with a War on Waste Drive Opex Savings Improve Capex Productivity • Process Re-engineering • Infrastructure Sharing • Digitization and Automation • Smart Procurement • Business Simplification • Adopting Disruptive Technologies Airtel Strategy Win 4G Win with Brilliant Build New Win with a War Win with People decisively Experience Revenues on Waste Win with People Cross Functional Team Work Passion and Motivation Simplify Organization Build Airtel of the Future Airtel Strategy Win 4G Win with Brilliant Build New Win with a War Win with People decisively Experience Revenues on Waste Win with a Digital Airtel Summary Simultaneously Consolidating in the Short Term And Building for the Longer Term Winning with Customers & New Age Go To Market Customer Scale| 800 Mn Mobile Users in the Country 1.2 Billion Indians 800 Mn Mobile Users Win with Customers Winning with Customers| Few Customers = Significant Revenue Few Significant Industry Revenue Customers Exceptional Service to Customers – Exciting Content and Privileged Experience We have a deep understanding of who our customers are Using Data Science and Customer Insights What do they want to buy, spend on? Services - Content - Financial Access Identifying our Customers! Demographics Psychographics Attitudes & Who are they? What are their needs, aspirations? Age Personality Behavior Gender Values Profession Activity Location Interests What devices do they aspire for? Devices What do they enjoy using? Where are they from? Geography Clarity about how this will be delivered Services Devices Network Experience Priority Resolution Exciting Services, Device & Privileged Experience | Seamlessly delivered through our Omni-Channel Touch points! Open Partner Ecosystem to get the very best for Customers Transparency Ease of Integration Adoption made easy Mutual Growth and margins Multiple touch points| Consistent engagement with customers 1.2 Mn Retailers 2,850 Stores Exclusive Promoters Digital Touchpoints Right Conversation Pitch Book Tool Kit Digital Tools In Summary | Well geared to Win With Customers! Services 360o Go To Market Devices Experience Strong Network Rollout Brilliant Partnerships Delivering World Class Digital services We have built the two largest media products