Investor Presentation Bharti Airtel Limited

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 This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.
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.

Investor Relations :- http://www.bhartiairtel.in For any queries, write to: ir@bharti.in

The Company...Bharti Airtel An Integrated Telco

Enterprise Services Carriers Corporates Passive Infrastructure Services Infratel Indus DTH Pay per view / HD Interactive Services including Gaming Fully integrated telecom player offering end to end solutions and entering new geographies
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Wireless Services 2G 3G Rural Market Telemedia Services Fixed Line Broadband IPTV

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Rapidly Growing Indian Wireless Market

Net Adds in Jul 16.9 Mnlessor than over last 2 months average run rate of 17.1 Mn
Closing Subscribers
1 ,000

S-curve triggered

Net Adds
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90% 80%

1 8 800 1 5 600

70% 60% 50% 40% 30%

1 2

400

6 200 3

20% 10% 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

India - Fastest Growing Market in the World

Note: (1) Actual Data as per Industry Association Releases and Industry Estimates in India. 4

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Wireless Market Structure in India

Subscriber Trends
160 140 120 100 80 60 40 20 Reliance Airtel Vodafone
34.0 31 .3 32.8 26.6 1 8.4 35.5 32.1 79.0 70.7 74.9 63.8 1 39.2

Customer Market Share CMS (%)

1 1 3.3

1 1 1 .5

25.0% 23.0% 21 .0% 1 9.0% 1 7.0% 1 5.0% 1 3.0% 1 1 .0% 9.0% 7.0%

23.8% 21 .3% 1 8.6% 1 7.4% 1 7.8% 1 3.7% 1 2.1 % 1 0.8% 1 0.0% 1 1 .5% 8.9% 9.8% 7.2%

1 7.1 %

BSNL+MTNL

5.0%

Idea

Reliance

Tata

BSNL+MTNL

Jul-10

Jul-09

Net adds during the year

CMS(Jul'10)

Vodafone

Others

CMS(Jul'09)

Airtel continuously consolidating its market leadership position despite intense competition
Airtel current monthly net adds at 3.0 million vs. 2.8 million a year ago Airtel ranks 1& 2 in 17 circles in terms of number of subscribers Over 59% of net adds coming from B&C circles (rural India)

Airtel Continues to lead on Revenue Market Share

Note: Based on subscriber data for India as on July 31th 2010 as per TRAI press release. 5

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Tata

Idea

Airtel

Another Growth Engine - Africa

Customer Base : 36.36 Mn Performace Indicators: Revenue: 9,583 Mn EBITDA: 2,635 Mn Prepaid Base: 99.3% one of the highest in the world Usage per sub per month: 103 Minutes one of the lowest ARPU: ~ US$ 7.4 Rate per minute: ~ US 7.2 one of the highest VAS: ~ 7.9% One of the lowest
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Emerging Market Characteristics

India* Africa**

Population (mm)

1200 mm

465mm

GDP Growth (Real) %

8.6%

3.1%

GDP Size, (PPP adjusted)

US$ 3,530 bn

US$ 6,90 bn

Telecom Penetration

58.17% (688.38 mn telecom subs)

32%

Broadband Penetration

0.83% (9.77 mn)

NA

*Telecom and Broadband penetration for India as on July 31th 2010 as per TRAI press release. ** Data pertaining to the 15 African countries where Zain Africa has operations (Source: IMF, Global Insight , Economist Intelligence Unit,CIA World Factbook, World Resource Institute.) 7

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Bharti a growth journey

No. of circles

15

22

Today 19 countries

DELHI

1996

2001

2003

2004

2010

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Latest Results FY10/1Q11

Key operating and financial metrics
FY 10 Customers Revenue EBITDA Cash Profit Net Income 137.0 mn $ 9,271 mn $ 3,714 mn $ 3,710 mn $ 1,989 mn Q1FY11* 183.4 mn $ 2,625 mn $ 947 mn $ 857 mn $ 361 mn Wireless Customer market share leadership in India at 21.5%. Total minutes on network carried in Q1 206.2 bn [Over 800 bn minutes per annum] Total employee strength 24,843 (Includes 6,600 Africa employees) Balance sheet strength: Assets $ 31 billion Net debt $ 12.9 billion EBITDA Margin Net Profit Margin ROCE ROE 40.3% 21.5% 24.4% 29.0% 36.9% 13.7% 18.4% 21.3% Net debt to EBITDA (Annualised) 2.9 Times Continues to be FCF positive on a standalone basis

Continued Strong Performance

Note: (1) Wireless customer market share of India. (2) The approved dividend is for the shareholders in India. * Includes 23 days of Airtel Africa 9

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Wireless Services - India

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Performance Indicators - Operational

Customers & Revenue Market Share Prepaid/Postpaid
1 05% 1 01.1% 1 00% 97.9% 99.6% 100.8% 98.4% 95% 92.3% 90% 92.9% 94.7% 93.5% 94.2% 95.2% 95.3% 100.4% 97.5% 101 .7% 99.2%

150 100 50 0

32.7% 32.1% 31.2% 30.6% 102.4 110.5 118.9 127.6 136.6 31.2%

33% 32% 31% 30% 29%

95.8% 96.0%

Q110

Q210

Q310

Q410

Q111

85% Q1 09 Q209 Q309 Q409 Q11 0 Q21 0 Q31 0 Q410 1Q11

Customers (mn)

RM S (%)

Prepaid Subs

Prepaid Net Adds

ARPU & RPM

0.8 0.6 0.4 0.2 Q110 Q210 Q310 Q410 Q111 0.60 0.58 0.53 0.48 0.45 100 0 278 252 230 300 220 215 200

MoU/Sub/Month & MON

500 480 460 440 420 Q110 Q210 Q310 Q410 Q111 478 140,713 143,680 450 153,241 446 172,797 195,197 300,000 200,000 480 100,000 0

468

RPM (Rs.)
RMS % is based on internal computations.

ARPU (INR)
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MoU/Sub (Min)

Total minutes on Network (Mn Min)

MON: Minutes on Network

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Current positioning and way forward

Leadership Positioning
Revenue
Revenue size (>$ 9 Bn) Revenue Market Share

Growth strategy and plans

New Revenue Streams
Changing face of growth through M-Com, M-entertainment & 3G

Cost Non financial vitals

Brand Distribution Churn lower than industry Spectrum Mix (900/1800 MHz) Improving cost efficiencies Lowest cost GSM network

Net Adds Maximizing usage

Driven by rural strategy

Increasing the usage through U&R drive Wallet share

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Telemedia Services - India

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A snapshot
Largest private operator having presence in the voice , broadband , IPTV and data. Focus on SMB segment & Broadband at Homes Key Performance Indicators
1. 2. 3. 4. 5. 6. 7. Voice (wire-line) and Data (DSL) Presence in 88 top cities of India. Target Segment : Retail and Small and Medium Enterprises. Customer base: 3.18 million (end July2010) Broadband (DSL with speeds>256 kbps) penetration at 42.6% of customer base. Average ARPU for Quarter ended Jun10 $ 20.6 per month. Segment contributing to 7% of overall revenues of the company. EBITDA margin of over 44.0%.

Broadband revolution to follow wireless revolution in India SMB opportunity across ICT stream
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Enterprise Services - India

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A snapshot
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 Airtels own customers Extensive national and international infrastructure Pan-India network with 129,244 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. Key Performance Indicators (Q1 11) NLD Minutes Carried: 17.3 Billion ; ILD Minutes Carried: 3.0 Billion Revenue: Rs.10,186 Million (8 % Segment Contribution Share) EBITDA: Rs. 2,497 Million (24.5% EBITA Margin)

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Passive Infrastructure Services - India

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A snapshot
Bharti Infratel operates in 11 circles. Indus Tower operates in 15 circles. Between the two, they have 136,000 towers worlds largest tower portfolio. Key performance Indicators (Infratel):
Total Towers: 31,196 (nos) Sharing Factor: 1.65 Sharing Revenue per sharing operator per month at Rs. 36,290. EBITDA margin: 35.5%

Key performance Indicators (Indus):

Total Towers: 104,901 (nos) Sharing Factor: 1.75 Sharing Revenue per sharing operator per month at Rs. 30,379.

Key focus areas:

To increase sharing factor (tenancy) from current levels of 1.65 for Infratel and 1.75 for Indus. Provide energy optimization solutions and other network management services. Evaluate other revenue streams.

Aims to be the preferred choice of vendor for all existing and new operators
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Summary

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Performance dashboard - 3 line graph

115,000 69% 110,000 Gross Revenue (USD Mn) 105,000 100,000 95,000 38.1% 90,000 85,000 80,000 Q110 Q210 Q310 Q410 Q111 38.4% 39.9% 40.9% 40.6% 30% 20% 10% 104,143 103,785 103,053 66% 63% 63% 107,491 112,725 65% 80% 70% 60% 50% 40%

Gross Revenue (USD Mn) (LHS) Opex to Gross Rev (RHS) Revenue (annualized) to Gross Cummulative Capex (RHS)

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

Note: (1) The graph shown above is based on Bharti Airtel (India & South Asia), excluding Bharti Airtel African Operations as it is for less than one month in this quarter 20

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Segment contributionRev, EBITDA and Investment

REVENUE
EBITDA

17% 8%

2%
6%

-7% 16%

7% 80%

9% 78%

INVESTMENTS
2%

3% 9%

17%

89%

Mobile Services Infratel Services

Telemedia Services Others

Enterprise Services

Note: (1) Revenue and EBITDA is gross of inter segment eliminations.(2) Investments are on gross basis. 21

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Bharti Airtel - positioning in the world and India

3rd LARGEST wireless operator in the world1 LARGEST private INTEGRATED telecom company in India 5th LARGEST INTEGRATED telecom operator in the world LARGEST WIRELESS operator in India LARGEST private FIXED LINE operator in India LARGEST operator in NLD, ILD and VSAT business LARGEST TELECOM company listed on Indian Stock Exchanges
Note: (1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers. 22

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Recent Honours

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Bharti Airtel Leadership in business

NDTV Profit Business Leadership Awards 2010 Top Telecom Company Sunil Bharti Mittal - Business Innovator of the Year Indias Most Innovative company - Wall Street Journal

Recent Honours

Most Preferred Cellular Service Provider - 2010 CNBC Awaaz Consumer Awards Tele.net Telecom Operator award Won in 6 out of total 14 categories. Few among them being
Most Admired company Best National Mobile operator Best Internet and Broadband operator Best Enterprise services

Powerful Brand - Economic Times (the only corporate brand to be awarded the AAA rating) Sunil Bharti Mittal - Global Telecom Leader - Voice & Data magazine Akhil Gupta, Deputy Group CEO and MD - Asia Corporate Dealmaker Award 2010 Manoj Kohli, CEO( International) & Joint MD - Telecom Man of the year - Tele.net Business world FICCI SEDF Corporate Social Responsibility Awards 2009-10
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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 This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.
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.

Investor Relations :- http://www.bhartiairtel.in For any queries, write to: ir@bharti.in