U900 U900
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 country. 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.” • Certain numbers in this presentation have been rounded off for ease of representation Investor Relations :- http://www.airtel.in For any queries, write to: ir@bharti.in 2
Bharti Airtel Africa Day 08 December 2017 Kampala, Uganda 3
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 4
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 5
Bharti Airtel In Uganda 1995 : Celtel Uganda – 1 st Telco in Uganda 2007 : Celtel Uganda changed to Zain 2010 : Airtel launched in Uganda 2013 : Successful acquisition of Warid 6
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 7
Uganda – Country profile Political: Government: Presidential Republic Area : 241,038 sq km Administration : 123 Districts Demographics: Population : 41.5 Mn Median Age: 15.7 years Growth Rate: 3.04% a 0-14 years (48.3%), 15-64 years (49.7%), > 65 years (2.01%) Languages: Official : English & Swahili. Others : 40+ a Catholic 39.3%, Anglican 32%, Pentecostal 11.1%, Muslim 13.7% Economy GDP 2017 est $27.2bn b . Per Capita $700.5 b Growth Rate: FY16/17 ≃ 3.9% b (FY15/16 – 4.7%) Core Inflation: 3.5% c . Exch. Rate: 1 US$ = UGX3,640 U900 The mean household is 4.7 persons with 80% of households involved in Agriculture a . a – National Population and Housing Census 2014 actual and 2017 forecast | b - IMF 2017 Estimate | c - Bank of Uganda 8
Uganda Macroeconomic Overview Real GDP (PPP) ($Bn) Population (Mn) 2010-2017 CAGR: 2.9% 41.5 41.5 2010-2017 CAGR: 3.3% 27.9 40.1 38.8 25.8 25.4 25.3 25.2 37.6 24.5 36.3 35.1 33.9 21.1 20.2 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 Consumer Price Inflation (1) (%) USD-UGX 2010-2017 15.0% 12.7% 3,463.0 3,369.0 2,693.7 2,565.5 2,546.5 2,518.9 2,296.1 2,148.7 5.8% 4.9% 5.5% 5.4% 3.1% 3.7% 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 Source: IMF Note: (1) End of Period consumer price inflation 9
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 10
Telecom Landscape – Regulators Telecommunications Ministry Of ICT & National Guidance Mobile Financial Services Ministry of Finance, Planning and Economic Development, Uganda 11
Telecom Landscape – Market Overview & Industry Players Strategic tilt to mass market Focus on mass market & voice Strong Distribution Network Gov’t Owned with limited Market GSM Activity Large Mobile Money Ecosystem Aggressive free SIM, Voice & data Largest 3G & 4G Network campaign (Jio Strategy) Under Administration. Debt burden Affordable & Youth oriented Various Promotions diluting including debt to other government overall market customer rate brand NW & Data quality decline agencies 4G MVNO 4G with no voice 4G Focus on 4G LTE, Aga Khan Fund for Economic Data Bundles and Devices MVNO Continued focus on 4G LTE Development Coverage remains limited (Franchisee Network ) Home and Business Solutions Mainly providing fiber and dedicated internet services to Others various partners including public WIFI 12
Telecom Landscape – Mobile SIM Penetration 45 100% 40.1 41.5 38.8 90% 40 37.6 80% 35 70% 30 55.0% 60% 50.4% 52.4% 25 48.1% Million 50% 22.8 20 20.4 20.2 40% 18.1 15 30% 10 20% 5 10% 0 0% 2013 2014 2015 2016 Uganda Popn - UN Est. (Mn) 37.6 38.8 40.1 41.5 Mobile SIMs - UCC Est. (Mn) 18.1 20.4 20.2 22.8 SIM Penetration % 48.1% 52.4% 50.4% 55.0% Penetration Opportunity *based on estimates from various sources 13
Telecom Landscape – Industry Revenue 3,000 25% 2,495 2,500 2,305 20% 2,170 18.2% 21.6% 2,000 15% UGX Bn 1,500 10% 1,050 1,000 864 8.2% 731 6.2% 5% 500 0 0% CY 2014 CY 2015 CY 2016 Airtel LC Bn 731 864 1,050 Ind Rev LC Bn 2,170 2,305 2,495 Airtel %age Growth 18.2% 21.6% Ind %age Growth 6.2% 8.2% Airtel growing faster than industry *based on Published data and estimates from various sources 14
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 15
Airtel In Uganda History and Milestones Fiber Expansion Warid Acquisition Merger Completion 300 Sites in Distribution Best Overall 300 Days Reorganization OpCo Entry into Launch Uganda 2010 2011 2012 2013 2014 2015 2016 2017 Mcommerce Uganda Cranes Strong Local Partnerships 4G Launch Services 16 16
Airtel Uganda CMS Evolution Telecom Operators in Uganda CMS Trends 65% 58.7% 50.7% 55% 6.7% 45% 36% 44.0% 35% Merger in 25% May-13 16.2% 15% 5% -5% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Jun-17 Bharti Airtel Op 1 Warid Others In December 2010, the CMS gap between Airtel and Operator 2 was 36.0%. With the Merger the gap reduced to 12.1% as of June 2013. As of June 2017, the CMS Gap between Airtel and Operator 2 is at 6.7%. *based on Published data and estimates from various sources 17 17
Airtel Uganda RMS Evolution Telecom Operators in Uganda RMS Trending Combined RMS of 70% 65.0% ~ 94% 60% 51.4% 50% Merger in 9.0% May-13 48.7% 40% 42.5% 30% 16.3% 20% 10% 0% Dec -08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Jun-17 Bharti Airtel Op 1 Warid Others In March 2010, the RMS gap between Airtel and Operator 2 was 48.7%. With the merger the gap reduced to 23.4% as of June 2013. As of June 2017, the RMS Gap between Airtel and Operator 2 is at 9.0%. *based on Published data and estimates from various sources 18 18 18
Uganda Ad Campaign Video 19
Agenda Bharti Airtel in Uganda Uganda Country Profile & Economic Overview Telecom Market Overview Airtel Journey So Far Airtel GPS Brand and CSR Positioning Financial Overview Key Priorities 20
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