BHARTIHEXA — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

PRESENTATION · Vaidehi Sharma – Moderator

Vaidehi Sharma – Moderator Good afternoon, ladies and gentlemen.

I am Vaidehi Sharma, the moderator for this webinar.

Welcome to the Bharti Airtel Limited and Bharti Hexacom Limited fourth quarter ended March 31, 2024 Earnings Webinar.

Present with us today is the senior leadership team of Bharti Airtel Limited and Bharti Hexacom Limited.

I must remind you that the overview and discussions today may include certain forward-looking statements that must be viewed in conjunction with the risks that we face.

Post the management opening remarks, we will open up for an interactive Q&A session.

Interested participants may click on “Raise Hand Option” on your Zoom application to join the Q&A queue.

The participants may click this option during the management opening remarks itself to ensure you find a place in the queue.

Upon announcement of name, participants to kindly click on “Unmute Myself” in the pop up screen and start asking the question post introduction.

With this, I would now like to hand over to Mr. Gopal Vittal for his opening remarks.

Gopal Vittal — Managing Director & Chief Executive Officer, Bharti Airtel Limited Thank you very much.

A very warm welcome to this earnings call.

With me on the call I have Soumen, our CFO; Harjeet, Naval and Akhil Garg.

I want to start by thanking our investors for showing confidence in us through the recently concluded Bharti Hexacom IPO.

This speaks well about the brand Airtel, about our execution capabilities, high standards of integrity and corporate governance.

This quarter’s earnings call focus will be on a stock take of FY2024. In addition, I will provide an update on the development of our

strategy. · A quick update on ESG, we were recognized globally for our ESG initiatives. We were awarded the most sustainable emerging

A quick update on ESG, we were recognized globally for our ESG initiatives.

We were awarded the most sustainable emerging market telco as per future investment initiative institutes top 250 emerging market ESG ranking.

We were also included in the S&P Global’s Sustainability Yearbook in 2024 in recognition of our sustainability efforts for the third year in a row.

Finally, we were awarded ISO certification for over 27,000 sites across our operations including our network MSCs by DNV which is one of the leading global providers of accredited management system certification.

We continued the momentum on our ESG initiatives.

We are industry first in India, we partnered with IDEMIA Secure Transactions to switch from virgin plastic to recycled PVC SIM cards.

The initiative will limit generation of over 165 tonnes of virgin plastic leading to a reduction in CO2 equivalent of 690 tonnes in a year.

On diversity we made significant progress in FY2024, the share of women in our workforce moved up by over 40% in just one year and all our stores are now gender balanced.

Let me turn to our financial performance with a quick roundup on the full year 2024.

Overall, we delivered another solid year.

Our consolidated revenue came in at just under 150,000 Crores and was impacted by currency devaluation in Africa.

India performance was steady despite the continued absence of tariff repair.

EBITDA margins were at 53.8% a 1.6% expansion despite 5G costs.

We delivered strong operating free cash flow this is EBITDA minus capex of over 25,650 Crores for India despite the higher capex loading in the year.

We paid 16,350 Crores of debt.

India net debt to EBITDA is now at a comfortable level of 2.86.

We expect further debt reduction going forward.

Performance continues to be based on solid execution and we saw sustained growth across all businesses.

We hit a lifetime high in revenue market share across all our businesses.

On mobility every single one of our circles gained share.

We also saw green shoots emerging on DTH.

I do want to underscore that we have a simple and very clear strategy winning with quality customers, delivering a great experience for them, putting digital at the core of all we do and stripping out waste.

We expanded our network Final Transcript