Bharti Airtel. Management Presentation November 2016

Transcription

1 Bharti Airtel Management Presentation November 2016

2 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 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 :- For any queries, write to: ir@bharti.in 2

3 Journey Through The Times Start up ( ) Land Grab ( ) Multiple Plays (2011 onwards) First launched in Delhi and HP Pan India footprint; India s largest telco Launch direct to home services (DTH) Acquired Zain; Present in over 20 countries 3G services launched Launch of Airtel Money in India First operator to launch 4G in India #3 operator in the world - Crossed 300 million customers Pan India data operator with 4G across 334 towns and 3G in 21 of 22 circles Only operator in India with pan India 3G & 4G 300 million customers Source: Company Filings 3

4 What Guides Us Customer Centricity Win customers for life through differentiated experience, products and world class technology Performance Excellence Growth despite challenges Grow market share, strip out waste Accelerate non-mobile businesses Transparency & Ethical Governance Highest corporate governance and disclosure rankings 4

5 Investment Highlights 1 Large residual opportunity 2 Bulk investments already in place; good spectrum bank 3 Diversified operator with scale and dominance in marketplace 4 Demonstrated best in class execution 5

6 1. LARGE RESIDUAL OPPORTUNITY Voice Secularity Under-penetrated geographies Unique mobile users at c. 50% of total SIMs (large dual-sim user base) 1 Declining age dependency 2 Industry consolidation, top 3 operators account for 75% RMS 3 Data India mobile broadband (3G/4G) penetration under 13% 3 Smartphone shipments show tremendous growth Smartphone data traffic growth forecasted to grow 22x over 6 years 4 Untapped Opportunities Payments Bank and other non-mobile businesses Source: 1. Cisco VNI forecasts, Ericsson Mobility Report 2. UN estimates, 3. TRAI; RMS as of Q1 17 (RCOM s revenues assumed to be average of last 2 quarters due to unavailability of data), 4. Ericsson Mobility Report 6

7 India, Africa have the lowest wireless penetration Opportunity Overall 80% but Rural ~ 51% Source: Ericsson Mobility Report

8 India: 2 nd largest mobile market in Asia, but long way from saturation Opportunity : ~54% of total mobile connected devices % CAGR 2015: ~50% of total mobile connected devices India Unique Subscribers Source: TRAI; Ericsson Mobility Report; GSMA; CISCO VNI 8

9 India: Industry Consolidation Underway via Revenue Shares Opportunity 10 Operators 14 Operators 12 Operators 10 Operators 36% 34% 30% 27% 64% 66% 70% 73% Market share Top 3 Others irms ~95% Industry consolidation via market share gains, with top 3 now accounting for over 73% of the industry revenues as of FY2016 Exits by many operators post Feb 2012 SC verdict (122 licenses cancelled), many rationalized their footprints Spectrum auctions fortified consolidation story Industry wide focus on improving operational and financial health Source: TRAI 1. Revenue shares are based on Financial Year Gross Revenues 9

10 South Korea Japan Hong Kong Thailand Taiwan Singapore China Indonesia Malaysia Australia India Philippines India: Data only 22% of mobile revenues Opportunity 72% 71% 66% 46% 45% 42% 35% 35% 34% 29% 22% 12% Data as a % of Revenue (2015) Source: Company Reports, BAML 10

11 India: Transitioning to a Smartphone Market Opportunity % 30% 30% % 13% 27 11% % 25% 22% 21% 17% 34 19% Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 25% 20% 15% 10% 5% xx Smartphone shipments (Mn) 4G smartphones stock Smartphone Penetration 7 out of 10 smartphones shipped in Q2 FY2016 were 4G enabled and 9 out of 10 smartphone sold by etailers were 4G. Source: Ericsson Mobility Report; GSMA Intelligence, IDC, Gartner, GS Estimates 1. For smartphones, financial year data is considered 2. Smartphone penetration is defined as Stock of Smartphones/Total Mobile Subscriber Base 11

12 driven by increasingly affordable handsets Opportunity High end smartphones (~ USD 165+) Low end smartphones (~ USD 35) 30 Mn 240 Mn 75 Mn 360 Mn Prices are expected to fall by 40 50% over the next 3 years for high-end smartphones Source: Ericsson Mobility Report; GSMA Intelligence 12

13 and growing appetite for data services Opportunity Source: Ericsson Mobility Report Airtel owned apps 13

14 will drive increase in consumption Opportunity Source: Ericsson Mobility Report 14

15 We continue to innovate across areas that matter Opportunity MyAirtel Wynk Music, Video & Games Airtel Money One App for all the Apps Suite of apps including Hike, Juggernaut, Wynk Music, Video, Games, Ditto TV, Airtel Money under My Airtel App Additional features Dialer, OpenNetwork Carrier agnostic music and video apps with a curated library of ~2.5 million songs and over 5000 movies & 20,000 other video content Wynk Music: 25 million downloads, most downloaded music app on Play Store in India Offered in India and all 15 opcos in Africa KPI: Africa (Q2 FY17) 9.1 mn active customers, up 15.3% YoY, transacting c $3.7 bn / quarter 15

16 Significant opportunities exist in payments bank and DTH Digital payments will touch $500bn in India by 2020 No. of pay DTH subscribers projected to increase to 74mn by 2017 Opportunity Payment Instrument Mix for Countries (2015) No. of DTH subscribers Card Digital Other Paper Cash P 2017P Source: BCG-Google Digital payments 2020, KPMG-FICCI Indian Media and Entertainment Report

17 Fixed broadband and enterprise services market has huge growth potential Opportunity Fixed broadband subscriptions per 100 capita, 2015 Enterprise data services market growth India South Africa China Collaboration services and Enterprise Mobility are fast growing verticals and are estimated to register growth of 18.9% and 20.7% respectively over the FY 15 to FY 21 period Russia Japan United States United Kingdom Source: Broadband Commission Report 2016, IDC Asia 17

18 2. BULK INVESTMENTS IN PLACE Spectrum Bank Successful re-farming of sub-ghz spectrum for 3G 3G/4G coverage pan-india Highest spectrum market share ex-mtnl/bsnl Largest network of towers and base stations 95.1% voice population coverage Mobile broadband towers up 57% over the last year Largest network of optic fiber Global and national long distance fiber over 448,799 RKms Added c. 4,768 RKms over the past quarter 18

19 India: Investments to Yield Results Investments Nominal value of liberalized spectrum at USD 15.5 billion 1 Industry leading revenue yield/mhz at 2x avg with same cost/mhz 2 Wide spectrum presence: ~20.6% spectrum market share Largest optical fiber network amongst private players Prime spectrum to yield data growth: Pan India 3G & 4G 1. Including Qualcomm, Videocon, Aircel licenses, excluding administered spectrum 2. Based on 2015 auctions 19

20 India: Superior Spectrum Position Investments Spectrum Band Industry Spectrum (Mhz) Industry Spectrum ex BSNL/MTNL (MHz) Spectrum Bharti spectrum held by Bharti Market Share ex (MHz) BSNL/MTNL % % % % Total % 3G sub-ghz available in 10 circles covering ~54% of own revenues and ~45% of industry revenue Pan India 3G and 4G No Gaps 4G Carrier aggregation covers ~85% of own revenues and ~85% industry revenues Spectrum holdings across bands; % of own revenues covered 1 No. of circles present in G (900) 3G (2100) 3G (900 & 2100) 4G (1800) 4G (2300) 4G (1800 & 2300) Source: TRAI, Department of Telecom, Company Filings 1. Including Qualcomm, Videocon, Aircel licenses, excluding administered spectrum 20

21 Pan India 3G and 4G footprint 3G (900) 3G (2100) 3G (Carrier Agg) 3G Total 4G (TDD) 4G (FDD) Investments 4G (TDD+FD D) 4G Total Andhra Pradesh Y Y Y Y Y Y Y Y Assam Y Y Y Y Y Y Y Y Bihar Y Y Y Y Y Y Delhi Y Y Y Y Y Y Y Y Gujarat Y Y Y Y Y Y Haryana Y Y Y Y Y Y Himachal Pradesh Y Y Y Y Y Y Y Y Jammu & Kashmir Y Y Y Y Y Y Karnataka Y Y Y Y Y Y Y Y Kerala Y Y Y Y Y Y Kolkata Y Y Y Y Y Y Madhya Pradesh Y Y Y Y Y Y Maharashtra Y Y Y Y Y Y Mumbai Y Y Y Y Y Y Y Y North East Y Y Y Y Y Y Y Y Orissa Y Y Y Y Y Y Punjab Y Y Y Y Y Y Rajasthan Y Y Y Y Y Y Tamil Nadu Y Y Y Y Y Y Uttar Pradesh (East) Y Y Y Y Uttar Pradesh (West) Y Y Y Y West Bengal Y Y Y Y Y Y Number of circles covered in % of own revenues covered 54% 94% 48% 100% 85% 100% 85% 100% 21

22 Africa: Invested for Growth Investments H 17 Capex Investments till date: $ 5.2 bn Well funded out of EBITDA: $ 6.2 bn till date Thus OFCF = $ 1 bn Further focus on business re-contouring Tower Sales in 11 countries Divestment of 2 countries to Orange Total proceeds: $ 3.25 bn Already received: ~$3.1 bn 22

23 3. AIRTEL: DIVERSIFIED OPERATOR WITH SIGNIFICANT SCALE Profitability and scale across diversified segments Dominant position to capitalize with bulk investments in place Only operator with diversified portfolio Scale leading to operating leverage Generating c. $1 bn yearly organic free cash Leadership across geographies Leader in India, #1 or #2 in 12 African countries Leading market shares Highest revenue market share and subscriber market share 1 Incremental RMS 53.7% 1 Y-o-Y Incremental subscriber share 46.2% 1 Y-o-Y Allowing Airtel the best chance to capitalize on the opportunities ahead, with bulk of investments already done Source: 1. TRAI. Incremental based on Jun 15-Jun

24 Multiple plays, multiple opportunities Scale Mobile Services across 18 countries 363 mn 1 wireless subscribers globally Over 1.44 trillion minutes of calls (LTM) Over 753Bn MBs of data over the last year Airtel Business (Large enterprises and carriers) Over 230,000 Rkms 1 across 50 countries, 5 continents Homes Services (Fixed Line & Broadband) 2.1 mn 1 broadband & internet customers Revenue growth 15% YoY Tower Infrastructure Services Bharti Infratel 38,832 towers 1 across 11 circles 42% stake in Indus Tower which has 121,330 towers 1 across 15 circles Revenue growth 9% YoY EBITDA contribution (Q2 17) SA 0.2% Africa 12.5% Tower Co 7.3% Airtel Business 8.7% Wireless India Digital TV Pan India DTH, 12.4 mn 1 subscribers top 3 player Revenue growth 20.9% YoY Digital TV 3.1% Homes 3.5% 64.6% 1. Bharti Airtel Quarterly Report for quarter ending September 30,

25 Profitability & Scale across Diversified Segments 1 Scale $9,000 USD Rev $8,000 YoY Revenue Growth $8, % 71.1% 32.3% 33.0% 28.0% $7,000 EBITDA Growth $6,000 $5,000 $3,838 $4, % 13.0% 16.2% 17.8% 23.0% 18.0% 13.0% $3,000 $2,000 $1,000 $- 9.9% 5.4% 7.9% 4.4% 7.4% $1, % 3.5% $727 $446 $858 $251 Africa Tower Infra SA Telemedia India Wireless Airtel Business Digital TV 8.0% 3.0% -2.0% 363 million customers as of Sept 2016 Global Telco Multiple businesses create opportunity for Convergence 1. As of FY

26 Scale brings Operating Leverage 1 Scale Overview Consolidated Revenues ($ Mn) 2 Presence in 18 countries #3 Operator in the World #1 in India & #1 or #2 in 12 countries in Africa 14,151 15,064 14,742 14,992 US$ bn Revenue US$ 5.22 bn EBITDA 2.02 addressable population 11,745 Only operator with Pan India 3G & 4G 10, E* Significant Margin Expansion 2 Operating Free Cash ($ Mn) 38.0% Organic Inorganic 35.4% 34.2% 1,603 1,603 1, % 30.3% 32.5% 102%+ YoY Incremental Margins 795 1, H' H'17 Source: Company filings 1. As of FY H 17 numbers are annualized to derive 2017 numbers 26

27 4. BEST IN CLASS EXECUTION Q2 17 highlights India Broad based revenue growth across mobile, DTH, Homes, Enterprise segments Mobile revenue up 7.9% YoY via industry leading net subscriber additions, incremental RMS Data volumes up 55%, Data ARPU up 4.2% YoY Voice volumes grew 11.1% YoY, highest in the last 20 quarters Africa Revenue growth 3.7% YoY Data volumes up by 116% YoY, now 16.3% of mobile revenues Voice volumes up 9.2% YoY Airtel Money has 9.1 mn active customers, up 15% YoY, transacting c. $3.7 bn / quarter Strong operating leverage EBITDA margin expansion of 370 bps YoY Net Income before exceptional items up 18.3% YoY 27

28 Driving increased Profitability Execution Incremental EBITDA margins at 79% YoY Scale and Profitability across diversified segments Among Top 3 in every non-mobile segment (TowerCo, DTH, Homes, B2B) 34% of consolidated EBITDA comes from businesses other than India mobility 23% from India non-mobile businesses 11% from International mobility businesses Robust EBITDA growth in Indian non-mobility businesses 7.1% YoY in Airtel Business and 29.3% in Digital TV Non wireless segments contribute 27% to India operating profit (Q2 17) Africa showing signs of growth with bulk operating investments already in place monetization to catalyze FCF growth 28

29 Strategic Pillars for execution Execution Go to Market Excellence Win with a Brilliant Network Experience Win with Valuable Customers War on Waste Win with People Digital Airtel, Vibrant Vibrant Brand Brand 29

30 Strategic Pillars: Go to Market Excellence Execution Game changing innovations Creating opportunities Night cash back, night plans Reduced rates during night usage Myplan Customized plans as per customer usage Family Tailor made plan and share benefits with family Infinity Options with unlimited benefits Wynk Music, movies, games Ditto TV, Juggernaut Payments Bank, Airtel Money Strategic Partnerships Airtel + Uber Integrated mobile money wallet & free 4G internet usage in parts of the country Airtel + Oyo Partners for WiFi and DTH services Source: Ericsson Mobility Report 30

31 Driving increased brand awareness Execution Airtel 4G ad Top television in April 2016 Awareness (%) - 84 Brand recall (%) - 96 Ad reach index - 81 Ad diagnostic score Likeability (%) - 84 Enjoyability (%) - 84 Believability (%) - 75 Claim (%) 75 Ad diagnostic - 80 Source: Mint Ipsos TV AdIndx Survery 31

32 Voice: Significant growth Execution 314, ,403 36, ,988 33,488 33,771 34, ,459 32, ,138 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Airtel carries over 1.41 trillion minutes Secular volume growth 10.4% Y-o-Y Volume Growth Value Growth Significant gap b/w realized & rack rates; 1 paisa upside adds ~$200 mn to top line Source: Company Filings 32

33 INCREASING MARKET SHARE IN RURAL INDIA Execution Airtel: Rural subscriber share 25.7% 26.1% 26.5% 27.1% 27.3% % % 49.0% % % 47.1% 47.6% 47.9% 48.5% 48.0% 47.5% 47.0% Q4'15 Q1'16 Q2'16 Q3'16 Q4' % No. of rural subscribers % of rural subscribers out of total subscribers Source: TRAI 33

34 Fastest Growing Data Business in India Execution First brand to own and launch 4G in India 3G and 4G Pan India 4G at 3G prices Annualized data revenues c. $2.15 bn Airtel recognized as the smartphone network Data usage per customer up 31% YoY Data as a % of Mobile revenues Q2'16 5.9% 21.5% Q3'16 5.8% 23.1% Q4'16 5.6% 23.3% Q1'17 5.4% 23.7% Q2'17 5.3% 24.6% Other Non Voice Non Data Data % Data revenues and growth Data volumes growth (bn MBs) 32,278 34,146 35,667 36, , Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Source: Company Filings 34

35 Data Growing Exponentially in Africa Execution Africa data volumes (mn MBs) Africa data revenues (USD mn 1 ) 34, , , , ,805 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'FY16 Q3'FY16 Q4'FY16 Q1'FY17 Q2'17 Source: Company filings 1. In Constant Currency 35

36 Strategic Pillars: Win with Brilliant Network Experience Execution Eliminate frustration Invest in tools An open network Blocked calls Repeat calls Dropped calls Frustration index Capex Outflow FY 16 (mn) Guidance (bn) 1H 17 India & SA $2,379 $2.2 - $2.4 ~ $1.3 Bn Africa $771 $0.7 - $0.8 $211 Mn Largest capital expenditure of Rs. 60,000 crore over 3 years towards a comprehensive network transformation 36

37 Strategic Pillars: Win with Valuable Customers Execution 1 Post-Paid (as % of total Customer Base) 6.4% Mobile Broadband Customer Base % 5.9% 6.0% 6.1% 6.3% 6.3% 45, % 40,000 35, % 30, % 25, % 20, % 15, % 10, % 5,000 25, % 30, % 35, % 36, % 17.0% 41, % 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 0 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 5.5% 0 2Q'16 3Q'16 4Q'16 1Q'17 2Q' % Mobile broadband customers % of mobile customer base India Source: Company Filings 37

38 Quality Subscriber Acquisitions Execution India: Churn % Africa: Churn % 3.5% 3.4% 3.3% 3.6% 3.7% 5.7% 6.0% 6.8% 4.9% 5.3% Sept'15 Dec'15 Mar'16 June'16 Sept'16 Sept'15 Dec'15 Mar'16 June'16 Sept'16 Airtel has industry wide lowest churn at 3.7% Led to rationalization of Gross Acquisition Costs In Africa, churn decreased from 6.8% in March 2016 to 5.3% in Sept 2016 Source: As per company s reported numbers 38

39 Adding valuable customers across verticals Execution Mobile broadband net adds 1 ( 000) DTH net adds ( 000) Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Airtel customer base (Q2 17) Home broadband net adds ( 000) Data: 62.6 mn, growth 23% YoY DTH: 12.4 mn, growth 17% YoY DSL: 1.9 mn, growth 22% YoY Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 39

40 Strategic Pillars: Win with War on Waste Execution 1.2 Opex to Total Revenues EBITDA % 44.0% % 43.4% 43.0% 37.5% 38.4% % 41.7% 42.0% 35.4% % 34.2% % 40.0% 32.5% % 0 Q2'16 Q3'16 Q4'16 Q1'17 Q2' % Q'17 2Q'17 Increasing Opex Productivity Smart procurement Frugal cost structure Maximizing sharing Network re-design Divestment of towers Source: Company Filings Note: 2014 and 2015 EBITDA margins are based on IFRS accounting 40

41 Strategic Pillars: Win with People Execution Build capabilities and help people grow Learning, mentoring, succession planning Build a high performance culture 41

42 Enhancing leadership Position across Geographies Execution No 1 Share No 2 Share No 3 Share RMS 1 Rank # of circles Avg. RMS Market Position # of Countries # % # % # % #1 5 #2 7 # RMS is as of June For Africa, only for GSMA telecoms are considered Source: TRAI; Company data, CIA World Factbook, World Bank 42

43 Enhancing India Subscriber Market Share Execution 25% 19% 17% 10% 6% 5% 19% Subs in mn Airtel Vodafone Idea (Incl Spice) Reliance Tata Tele Uninor Others Airtel Industry wide lowest churn 3.7% 23.5% 0.1% 4G Launch pan India 0.5% Project Leap, Wynk Games 0.2% Entered into an agreement to acquire Videocon and Aircel s spectrum 0.4% 24.7% Airtel Incremental market share 46.2% YoY Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Source: TRAI 1. Subscriber market share is as of June 2016 above. 43

44 Enhancing India Revenue Market Share 1 Execution 33% 23% 19% 5% 5% 6% 6% 3% 1% Airtel Vodafone Idea (Incl Spice) Reliance BSNL+MTNL Tata Tele Aircel Uninor Others 32.7% 31.3% 31.3% 31.6% 31.6% 30.4% Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4'16 Q1'17 Airtel Incremental revenue market share 53.7% YoY 1. RMS is calculated on the basis of gross revenues. Source: TRAI 2. RMS is as of Q

45 with gaining highest incremental share Execution 30.8% 31.3% 32.7% 0.5% 1.4% 23.3% 23.3% 23.3% 16.2% 0.1% 18.7% -0.1% 19.2% 2.5% 0.5% Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Airtel Vodafone Idea 45

46 STRONG CORPORATE PROFILE

47 Financial flexibility & Balance Sheet Focus Diversified debt profile; focus on deleveraging Over last 3 years: Leverage: Net Debt to EBITDA down from 3x to 2.2x Average Maturity: Average tenors pushed out from 2 years to 6 years Diversified debt mix: 100% bank to a mix of bonds, bank, ECA and DoT debt Currency diversification: 75% USD to a mix of USD (41%), INR (37%), EUR (15%), Rest (7%) Interest: 100% floating to predominantly a fixed portfolio Strategic initiatives undertaken include Airtel QIP, Infratel IPO & further sell down Deleveraging in Africa via tower sales and divestment of 2 countries to Orange 47

48 Highest Standards of Corporate Governance Credit Rating and Information Services of India ( CRISIL ) has assigned its Governance and Value Creation rating CRISIL GVC Level 1 to the corporate governance and value creation practices of Bharti Airtel Quarterly financials audited on Ind-AS basis IG rating from 3 International Rating Agencies Diversified Board 50% independent directors SingTel representatives on the Board of the company Ranked first in a listing of 100 emerging market multinational companies as part of a study on corporate transparency and reporting by Transparency International Ranked #1 in FTI Consulting s India Disclosure Index for Mandatory & Voluntary disclosure practices, for the second year in a row 48

49 Summary India & Africa remain attractive markets, with large opportunities Bulk investments in place, asset restructuring in progress Spectrum Network Deleveraging via asset monetization (Tower sales, sale to Orange, Bangladesh merger) We are extremely well positioned Large customer base Only operator with diversified portfolio Scale leading to operating leverage Generating c. $1 bn yearly organic free cash We have to continue to drive best in class execution while maintaining strong balance sheet focus for returns as well as enhanced financial flexibility 49

50 THANK YOU