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Investor Presentation

Bharti airtel limited


May2012

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 environment. context, 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 g g 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 U.S. 1933, amended. 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.airtel.in For any queries, write to: ir@bharti.in

The Company...Bharti airtel An Integrated Operator


B2C Airtel Business

Mobile Services
Cellularmobile servicesacross 20countries Customerand revenuemarket leaderinIndia ~241million wireless subscribers globally,asof Q4FY12

Telemedia Services
Offersfixed telephonyand broadband internet(DSL+ IPTV) Customerbase of3.3million; large broadband& internet customers Services providedacross 87cities

Digital TV Services
PanIndiaDTH operations 7.23mn customers Coverageacross Coverage across 609districts

Enterprise Services
Servicestolarge enterprisesand carriers Servesassingle pointofcontact foralltelecom needs Global infrastructureof over225,000 Rkmscovering 50countries across5 continents

Passive Infrastructure Services


BhartiInfratel owns33,326 towersacross11 circles Owns42%stake inIndusTowers, amongstthe largest independent towercompanies intheworld,with in the world with 109,114towers across15circles Averagetenancy ratioof~1.89

Fullyintegratedtelecomplayeroffering endtoendsolutions

The CompanyBharti airtel


No. of circles (India) 15 Today Countries 20

22

1996

2001

2003

2004

2012

Fully integrated telecom player offering end to end solutions and entering new geographies

Growth trajectory reflected in the numbers

1996
Single Circle Operator < 25k ~ USD 17 mn ~ USD 2.5 mn ~ USD 1.4 mn ~ USD 16 mn Company Profile Customers Revenue R EBITDA Cash Profit Market Capitalization

2012
Largest integrated private telecom operator ~ 252 mn ~ USD 15 b bn ~ USD 5 bn ~ USD 4 bn ~ USD 25 bn

Continuing on our journey of Value Creation

Note:1)2012financialsareasperFY2012results.2)Exchangerate:Financialsasof31st Mar12:Rs51.16

Financials & Positioning

Key financial metrics


FY 12 (in Mn) Customers Revenue EBITDA Cash Profit Net Income EBITDA Margin (%) ROCE (%) 251.6

Positioning in the world & in India


3rdLARGESTincountrywirelessoperatorinthe 3rd LARGEST in country wireless operator in the world(1) LARGESTprivateINTEGRATEDtelecomcompanyin

$ 14,937 $ 4,957 $ 4 282 4,282 $ 890 33.2 7.2

India 5thLARGESTMobiletelecomoperatorintheworld AmongstthelargestprovidersofPassive infrastructure(bytowers)(2)

Note:FY11numbersareasperIFRSasperMarch12quarterlyreport.ExchangerateforReto$conversion:51.16. (1)3rd largestwirelessoperatorintheworldreferstoincountry(singlecountry)operatorbasedonthenumberof subscribers.5th largestmobileoperatoronbasisofnumberofsubscribers.(2)ThroughitssubsidiaryBhartiInfratel& IndusTowersinwhichBhartiInfratelowns42%stake.

Latest Results 4Q12

Key operating and financial metrics


Q4FY12* Customers Revenue EBITDA CashProfit NetIncome EBITDAMargin ROCE 251.6mn $3,723mn $1,239mn $1,065mn $200mn 33.3% 7.2% 15% 14% 10% 28% YonY

Continued Strong Performance


WirelessCMS WirelessRMS 19.7% 29.7%

TotalminutesonnetworkcarriedinQtr,netof Total minutes on network carried in Qtr, net of eliminations Balancesheetstrength: Assets Netdebt NetdebttoEBITDA $30.7bn $ b $12.7bn 2.6Times (annualized) ContinuestobeFCFpositiveonatSouthAsia Level. 265bn

IncludesfullquarternumbersforAfrica (a)ClosingExchangerateasof31stMarch2012:51.16.(b)AverageExchangerateason31stMarch2012:50.30 **RMSasperDecquarterreleasedbyTRAI

Performance dashboard - 3 line graph


190,000 69.9% 180,000 Total Rev venue (Rs.mn) 71.2% 68.6% 70.9% 70 9% 170,000 162,930 160,000 160 000 169,749 50% 172,698 60% 71.1% 70% 184,767 187,294 80%

150,000

44.8%

44.6%

44.5%

45.4%

44.4%

40%

140,000 Q311 Q411 Q112 Q212 Q312


Capital Productivity (RHS)

30%

Total Revenue (Rs. Mn) (LHS)

Opex to Total Revenue (RHS)

ProductivityIndicators=growingrevenues+costefficiencies+capitalproductivity

TheabovechartisforAirtelConsolidatedincludingAfrica

Wireless Services

Indian Market
Overall Telecom Market
Population Population 1.2billion 1 2 billion Relativelylargeyouthpopulation Telecompenetration c.78.5% (~951.3mntelecomsubs) Subnumbershouldgoupto1Billionby2015 Broadbandpenetration 1.1%(13.8mn) VAS SubBase WirelessPenetration Operationalmetricspermonth Usageperuser ARPU Rateperminute Govt.targettoreach20mn.Broadbandsubsby2012 ~13.7% 330min ~US$3.06 ~US$0.01

Wireless Market
c.919.2mn c.75.9%

Lotofopportunityahead.
Note: (1) Subscriber numbers and wireless penetration numbers as on March 31, 2012 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 1Q12 dated 19th April12 by Merrill Lynch, and reflective of Industry numbers.

Rapidly Growing Indian Wireless Market

NetAddsinMar8.0Mnlessthanoverlast3 months averagerunrateof8.9Mn


Closing Subs 1,000 800 600 M illio n s 400 200 F eb-06 J un-06 O c t- 0 6 F eb-07 J un-07 O c t- 0 7 F eb-08 J un-08 O c t- 0 8 F eb-09 J un-09 O c t- 0 9 F eb-10 J un-10 O c t- 1 0 F eb-11 J un-11 O c t- 1 1 F eb-12 Net Adds 25 20 15 10 5 90% 80% 70% % 60% 50% 40% 30% 20% 10% 0%

S-curve triggered

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

India FastestGrowingMarketintheWorld India Fastest Growing Market in the World

Note:(1)ActualDataasperIndustryAssociationReleasesandIndustryEstimatesinIndia.

Wireless Market Structure in India


Subscriber Trends
25%

Customer Market Share CMS (%) C stomer


23%

200 180 160 (mn) 140 120 100 80 60 40 20 -

181 1 62 1 53 136 150 1 35 1 97 04 11 3 90 82 89 136 103

21% 19% 17% 15% 13% 11%

1 9.7% 20.0% 1 6.7% 1 6.7%

1 6.6% 1 6.4% 1 4.8% 1 2.0% 1 .3% 1 1 2.3% 1 .0% 1 1 .0% 1 8.9% 1 2.7%

19

17

16 L+MTNL BSNL

23 7 Tata Idea

33

9% 7% BS SNL+MTNL 5% Reliance Airtel

Tata

Idea

R Reliance

Vo dafone

CMS(Mar '12)

Vodafone

O thers

Airtel

CMS( Mar'11)

Mar- 12

Mar- 11

Net adds during the year

Airtelcontinuouslyconsolidatingitsmarketleadershippositiondespiteintensecompetition Ai l i l lid i i k l d hi ii d i i ii

Airtelcurrentmonthlynetaddsat2.5millionvs.3.2millionayearago Airtelranks1&2in16circlesintermsofnumberofsubscribers Over65%ofnetaddscomingfromB&Ccircles(ruralIndia)

AirtelContinuestoleadonRevenueMarketShare
Note:BasedonsubscriberdataforIndiaasonMarch312012asperTRAIpressrelease.

Others

AirtelPerformance Indicators (Operational)


Customers & Market Share
200 20.0% 19.9% 19.8% 19.8% 19.7% 22%
1 02% 98.1 % 98% 97.3% 93.7% 96.2%

Prepaid/Postpaid p p

95.8%

150

18%
94%

100 162.2 50 169.2 172.8 175.7

181.3

14%

90% 96.3% 96.3% 96.3% 96.3% 96.3%

86%

10%
82%

0 Q411 Q112
Cust omers (mn)

6% Q212 Q312
CMS (%)

78% Q41 1 P repaid Subs Q1 2 1 Q21 2 P repaid Net A dds Q31 2 Q41 2

Q412

ARPU & RPM


60 300
450

MoU/Sub/Month & MON


449 21 90 8,1 445 228,331 242,683 423 41 9 431 250,000 238,779

50

1 94

1 90

1 89 1 83 1 87

250

227,1 5 1

40

200

440 430

200,000 1 000 50,000 50

30 42.76 43.1 8 44.56 43.83

1 50

20

43.1 3

1 00

420 41 0

1 00,000 50,000

1 0

50

Q41 1 Q1 2 1 RP M (P aise) Q21 2 Q31 2 A RP U (INR) Q41 2

400 Q41 1 Q1 2 1 Q21 2 Q31 2 Q41 2 M o U/Sub (M in) To tal minutes o n Netwo rk (M n M in)

Current positioning and way forward


Leadership Positioning
Revenue
Revenuesize (>$12Bn) RevenueMarketShare

Growth strategy and plans


New Revenue Streams
Changingfaceofgrowth throughMCom,M entertainment&3G

Cost
Improvingcostefficiencies

Net Adds Maximizing usage


Drivenbyruralstrategy

Non financial vitals


Brand Distribution Churnlowerthanindustry SpectrumMix(900/1800MHz) Spectrum Mix (900/1800 MHz)

LowestcostGSMnetwork L t t GSM t k

IncreasingtheusagethroughU&Rdrive Walletshare

Telemedia Services

A Snapshot
Largestprivateoperatorhavingpresenceinthevoice,broadband,IPTVanddata. FocusonSMBsegment&BroadbandatHomes KeyPerformanceIndicators
1. 2. 3. 4. 5. 6. 7. 7 Voice(wireline)andData(DSL)Presencein87topcitiesofIndia. TargetSegment:RetailandSmallandMediumEnterprises. Customerbase:3.3million(endMarch 2012) Broadband(DSLwithspeeds>256kbps)penetrationat42.4%ofcustomerbase. AverageARPUforQuarterendedDec11$18.6permonth. Segmentcontributingto7% ofoverallrevenuesofthecompany. EBITDAmarginofover41.0%. EBITDA i f 41 0%

BroadbandrevolutiontofollowwirelessrevolutioninIndia SMBopportunityacrossICTstream

Digital Services

A Snapshot
LaunchedAirtelDigitalTVserviceinOctober2008asfifth operatorprovidingDirecttoHome(DTH)servicesinIndia
Currentsubscriberbaseof~7.2millioncustomers C t b ib b f ~7 2 illi t

Adding1outofevery4newcustomersjoiningtheDTHplatform Currentlyofferatotalof310channelsincluding14HDchannels Currently offer a total of 310 channels including 14 HD channels and7interactiveservices

Presentacross609districts,partneringwithlocalservicepartnersto providecustomerserviceandoperatecallcenters provide customer service and operate call centers AlsoofferHighDefinition(HD)SetTopBoxesandDigitalTVRecorders with3Dcapabilitiesdeliveringsuperiorcustomerexperience KeyPerformanceIndicators(Q412) Revenue:Rs.3,565Million(3%SegmentContributionShare) EBITDA: Rs. 209 Million (5.9% EBITDA Margin) EBITDA:Rs.209Million(5.9%EBITDAMargin) AverageARPUof$3.3permonthforquarterendedMar12
___________________________ Source:CompanyFilings

Enterprise S i E i Services

A Snapshot
EnterpriseServicesprovidesabroadportfolioofservicestolargeEnterpriseandCarriercustomers Corporates:SinglepointofcontactforalltelecommunicationneedsforTop2500corporatecustomers, p providingfullsuiteofvoice,data,andmanagedcommunicationssolutions gf f g Carriers:Wholesalevoiceanddataservicestoover130domesticand450international telecommunicationscarriers,aswellasILDandNLDcarriageforAirtelsowncustomers Extensivenationalandinternationalinfrastructure E t i ti l di t ti li f t t PanIndianetworkwith157,886Routekmsofopticalfiber,over4,150MPLSandSDHPOPs Accessnetwork(terrestrial)in87cities,Wimaxnetworkin143cities,andover1,500localPOIs Internationalnetworkwith225,000RouteKms,connectingover50countriesand5Continents. KeyPerformanceIndicators(Q412) NLDMinutesCarried:21.6Billion;ILDMinutesCarried:3.5Billion Revenue:Rs.11,209Million(8%SegmentContributionShare) IT A: Rs. ,63 Million ( 4.5% ITA Margin) EBITDA:Rs.1,631Million(14.5%EBITAMargin)

Emerging Growth Engines Passive Infra Africa

Financial Performance Passive Infra

Revenue
509 510 493 486 480 482 481
180 200 183

EBITDA
37.0 37.7
192 182 186 180

37.5

37.3

38.6

160

450
140

420
120

390 Q411 Q112 Q212 Q312 Q412

100 Q411 Q112 Q212 Q312 Q412

FocusontenancyenhancementdrivingRevenue&Profitability

TheabovenosforRevenue&EBITDAareinIFRSasperQuarterlyReport&includesproportionate share(42%)inIndus .

Operational Performance Passive Infra


Infratel
Towers(nos)&SharingFactor
34,000 1.81 1.77 1.73 107,000 1.70 33,000 1.60 32,942 33,056 33,203 33,326 1.50 102,000 1.40 108,586 108,922 108,998 109,101 109,114 1.60 1.79 1.82 1 82 1.80 1.80 1.90 112,000 1.83 1.87

Indus
Towers(nos)&SharingFactor
1.89 1.91 1.94 2.00

32,792

32,000 Q411 Q112 No of t ower s Q212 Q312 Sharing Fact or Q412

1.40

97,000 Q411 Q112 No of t ower s Q212 Q312 Sharing Fact or Q412

1.20

SharingRevenueperSharingOperatorperMonth(Rs)

SharingRevenueperSharingOperatorperMonth(Rs)
35,000

41,000 36,599 36203 37,117 37,623 38,400 30,000

31963 30,501

31112

32,272

32,563

37,000

33,000

25,000

29,000

20,000

25,000 Q411 Q112 Q212 Q312 Q412

15,000 Q411 Q112 Q212 Q312 Q412

Shar ing Revenue per Shar ing Oper at or per mont h

Shar ing Revenue per Shar ing Oper at or per mont h

Aimstoenhancethetenancyratio&bethepreferredchoiceofvendorforallexisting andnewoperators

Transaction Rationale

Shareholding and Management Control Brand Airtel Airtel Clean / certainty of transaction

100% Cash Transaction

Global Stature Emerging Market Characteristics Strong Platform St Pl tf for Future Expansion

Focus on Core Middle East Operators

Manageable Deal Size Diversification of India Risk Avoid Greenfield

Low Competitive Intensity Significant Synergies


Speed in Transaction Repayment of Debt

ThetransactionmeetstheobjectivesofAirtelwithlongtermstrategicbenefits andcreatestremendousshareholdervalue

Differences between the two markets


India
MobilePenetration 76%

Africa(1)
46%

AverageNumberof Competitors

1012

35

BusinessModel

Highusage,lowpricingmodel

Lowusage,highpricingmodel

MinutesofUsage Minutes of Usage

~431 431

~122 122

ARPU(US$)

~$3.8

~$6.8

ARPM(UScents)

0.9

5.6

Andthereforehugeopportunityspace A d th f h t it
Source: Global Insight, annual / quarterly reports. 1. Data pertaining to the 17African countries where Zain Africa has operations.

Another Growth Engine - Africa


CustomerBase:53.1Mn PerformanceIndicators(CY2012): Revenue:$4,137Mn EBITDA:$1,097Mn PrepaidBase:99.3% oneofthehighestinthe one of the highest in the world Usagepersubpermonth:122Minutes oneofthelowest o e of e o es ARPU:~US$6.8 Rateperminute:~US5.6 oneofthehighest VAS:~8.6% Oneofthelowest

Note:AbovenumbersbasedonQuarterlyreportended31Mar,2012.

Recent Honors

Bharti airtel Leadership in business


Telecom Center of Excellence (TCOE) Award for Service Provider with customer focus for best delivery of Network Services - for the year 2011. Won in 4 Categories : Best National Mobile Operator, Best VAS Provider, Best Enterprise Services Provider , Best Ad Campaign by an Operator at the Telecom Operator Awards 2012. Placed among the top 200 brands globally in the annual survey undertaken by Brand Finance, an international agency

Recent Honours
Sunil Bharti Mittal, Chairman & Group CEO GlobalGamechangerat EconomicTimesTelecomAwards 2011. GlobalTelecomLeader Voice& Datamagazine Rajan Bharti Mittal, Vice Chairman & MD Vi Ch i CABusinessAchieverAwardby InstituteofChartered AccountantsofIndia Akhil Gupta, Deputy Group CEO & MD CABusinessAchieverAwardin 2009 CFOIndiaHallofFamebyCFO India Manoj Kohli, CEO (International) & Joint MD TelecomManoftheyearby Tele.netinApr10 p

Ranked first in Indias Buzziest Brands, a survey conducted by agency faqs, a media communication portal

Airtel money won the Best Innovation awards at the Telecom Operator Awards 2012

'The Most Impactful HR Practise Award for the 'use of mobile technologies for employee services' at the recently concluded National Conference by th NHRD i C f b the in Bangalore..

Conferred the prestigious NDTV Profit Business Leadership Awards 2011 in the Teleocm Sector category

Won the Golden Peacock National Quality Award for the year 2011

Airtel digital TV (HD) was recognized as the Product of the year 2012, by AC Nielsen, an international research firm.

thank you