Investor Presentation

Bharti airtel limited
August 2011

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.”

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

.Bharti airtel – An Integrated Telco Wireless Services 2G 3G Rural Market Telemedia Services Fixed Line Broadband IPTV 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 ..The Company.

of circles (India) 15 Today Countries 19 1 5 22 ‘ 1996 2001 2003 2004 2010 Fully integrated telecom player offering end to end solutions and entering new geographies .The Company…Bharti airtel No.

5 mn ~ USD 1.Growth trajectory reflected in the numbers 1996 Single Circle Operator < 25k ~ USD 17 mn ~ USD 2. 2) Exchange rate: Financials as of 31st Mar 11 : Rs 44.4 mn ~ USD 16 mn Company Profile Customers Revenue EBITDA Cash Profit Market Capitalization 2011 Largest integrated private telecom operator ~ 221 mn ~ USD 13 bn ~ USD 4 bn ~ USD 4 bn ~ USD 30 bn Continuing on our journey of Value Creation Note: 1) 2011 financials are as per FY 2011 results.65 .

472 $ 3. (1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers.9 Positioning in the world & in India 3rd LARGEST in -country wireless operator in the world (1) LARGEST private INTEGRATED telecom company in $ 13.983 $ 1.319 $ 4.Financials & Positioning Key financial metrics FY 11 (in Mn) Customers Revenue EBITDA Cash Profit Net Income EBITDA Margin (%) ROCE (%) 220.354 34.65. 5th largest mobile operator on basis of number of subscribers. Exchange rate for Re to $ conversion: 44.(2) Through its subsidiary Bharti Infratel & Indus Towers in which Bharti Infratel owns 42% stake.8 India 5th LARGEST Mobile telecom operator in the world Amongst the largest providers of Passive infrastructure (by towers) (2) Note: FY11 numbers are as per IFRS as per March11 quarterly report. .6 10.

276 mn $ 1.2% Level.6% Y-on-Y 25.0% 251.Latest Results – 1Q’12 Key operating and financial metrics Q1 FY 12* Customers Revenue EBITDA Cash Profit Net Income EBITDA Margin ROCE 230.9.2 bn $ 13. •Includes full quarter numbers for Africa •Exchange rate as of 30th Jun 2011: 44.72 •**RMS as per March quarter released by TRAI .085 mn $ 272 mn 33.798 mn $ 1.% 45% 34% Continued Strong Performance Wireless CMS Wireless RMS Total MOU carried in Qtr Balance sheet strength: Assets $ 33.8% 30.4 bn 2.9 bn 26% -25% Net debt Net debt to EBITDA (annualized) Continues to be FCF positive on at South Asia 8.8 mn $ 3.8 Times 19.

000 135.000 Total Revenue (Rs.Performance dashboard .9% 80% 70% 60% 50% 122.000 145.3 line graph 175.000 125. Mn) (LHS) Productivity Indicators = growing revenues + cost efficiencies + capital productivity The above chart is for Airtel Consolidated including Africa .mn) 155.438 45.930 71.8% 162.8% 44.6% 40% 30% Q111 Q211 Q311 Opex to Total Revenue (RHS) Q411 Q112 Capital Productivity (RHS) Total Revenue (Rs.000 115.9% 44.6% 169.5% 46.000 105.294 69.749 72.3% 42.000 165.721 152.1% 70.2% 157.000 73.

Wireless Services .

target to reach 20 mn. .11% → Govt.01 ~ 13.64% (12. and reflective of Industry numbers.Indian Market Overall Telecom Market Population 1.67 ~ US$ 0.70 mn c.97% (~885.2 billion → Relatively large youth population Telecom penetration c.71.99 mn telecom subs) Sub number should go upto 1 Billion by 2015 Broadband penetration 1.851. Broadband subs by 2011 Lot of opportunity ahead….73. 2011 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 1Q11 dated 28th Apri11 by Merrill Lynch.5% Sub Base Wireless Penetration Operational metrics per month Wireless Market c. Note: (1) Subscriber numbers and wireless penetration numbers as on June 30.32 mn) VAS Usage per user ARPU Rate per minute 369 min ~ US$ 3.

3 Mn S-curve triggered Closing Subscribers 900 800 700 600 Net Adds 26 24 22 20 18 16 14 12 10 8 6 4 2 - 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 (m n) 500 400 300 200 100 - M ay -04 M ay -05 M ay -06 M ay -07 M ay -08 M ay -09 M ay -10 India .4 Mn…lesser than over last 3 months average run rate of 16.Rapidly Growing Indian Wireless Market Net Adds in June 11. M ay -11 N ov -03 N ov -04 N ov -05 N ov -06 N ov -07 N ov -08 N ov -09 N ov -10 .Fastest Growing Market in the World Note: (1) Actual Data as per Industry Association Releases and Industry Estimates in India.

7%1 9.6% 1 06 17% 15% 13% 11% 9% 7% (mn) 1 00 80 60 40 20 1 2.0 million a year ago • Airtel ranks 1& 2 in 16 circles in terms of number of subscribers • Over 65% 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 June 30 2011 as per TRAI press release.1 million vs.7% 1 1 3.Wireless Market Structure in India Subscriber Trends 25% Customer Market Share – CMS (%) 23% 21 .4% 1 .8% 1 7.2% 1 . Others Airtel Airtel .6% 1 80 1 60 1 40 1 20 1 69 1 43 1 34 1 08 1 42 12 1 99 77 67 95 91 70 56 57 36 35 35 22 28 21% 19% 1 9.4% 1 0.2%1 1 0. 3.9% 1 7.5% 1 6.0% 21 BSNL+MTNL BSNL+MTNL - 5% Reliance Idea Reliance Idea Tata Tata Others Vodafone Jun-1 Jun-1 1 0 Net adds during the year CMS( June' 11) Vodafone CMS( June' 10) • Airtel continuously consolidating its market leadership position despite intense competition • Airtel current monthly net adds at 2.8% 1 .2% 1 6.

Airtel…Performance Indicators (Operational) Customers & Market Share 100% 99.197 196.000 480 470 460 195.190 228.0% 96.3% 18% 120 162.83 44.1 3 42.3% 20.5% 180 20.1 9 43.000 218.000 450 440 430 420 Q111 Q211 Q311 Q411 Q112 M oU/ Sub (M in) Tot al minut es on Net work (M n M in) 80.2 169.2 14% 60 136.1% 96.0% 19.2% 97.018 180.8% 20.3% 97.5 84% 10% 80% 76% Q111 Q211 Prepaid Subs Q311 Q411 Q112 0 Q111 Q211 Cust omers (mn) Q311 Q411 CM S (% ) Q112 6% Prepaid Net Adds ARPU & RPM 490 60 50 40 30 20 1 0 Q11 1 Q211 RPM (Paise) Q311 Q411 Q11 2 44.2% 96.2% 98.000 ARPU (INR) .76 21 5 300 202 1 98 194 1 90 250 200 1 50 1 00 50 0 MoU/Sub/Month & MON 480 454 449 449 445 280.331 230.000 130.196 205.44 44.5% Prepaid/Postpaid 98.6 143.1% 21.3 152.8% 22% 96% 92% 88% 96.3% 96.

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. Mentertainment & 3G Cost Improving cost efficiencies Net Adds Maximizing usage Driven by rural strategy Non financial vitals Brand Distribution Churn lower than industry Spectrum Mix (900/1800 MHz) Lowest cost GSM network Increasing the usage through U&R drive Wallet share .

Telemedia Services .

A Snapshot Largest private operator having presence in the voice . 6. 4. broadband . Broadband revolution to follow wireless revolution in India SMB opportunity across ICT stream .5%. 7. Segment contributing to 7% of overall revenues of the company. Focus on SMB segment & Broadband at Homes Key Performance Indicators 1. Customer base: 3.3 per month.3 million (end June 2011) Broadband (DSL with speeds>256 kbps) penetration at 43. 2. EBITDA margin of over 45. Voice (wire-line) and Data (DSL) Presence in 87 top cities of India. IPTV and data. Average ARPU for Quarter ended Jun’11 $ 21. 3. Target Segment : Retail and Small and Medium Enterprises. 5.1% of customer base.

Enterprise Services .

over 4.9 Billion . and managed communications solutions Carriers: Wholesale voice and data services to over 130 domestic and 450 international telecommunications carriers.792 Route kms of optical fiber. Key Performance Indicators (Q1‘12) NLD Minutes Carried: 19. Wimax network in 143 cities.500 local POIs International network with 225. and over 1.150 MPLS and SDH POPs Access network (terrestrial) in 87 cities.303 Million (22.000 Route Kms. 2. ILD Minutes Carried: 3.10. data.410 Million (8 % Segment Contribution Share) EBITDA: Rs.1 Billion Revenue: Rs.1% EBITA Margin) .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. as well as ILD and NLD carriage for Airtel’s own customers Extensive national and international infrastructure Pan-India network with 148. providing full suite of voice. connecting over 50 countries and 5 Continents.

Emerging Growth Engines Passive Infra Africa .

5 550 509 500 450 400 350 300 Q111 Q211 Q311 Q411 Q112 100 Q111 Q211 140 200 EBITDA 37.1 38.7 192 183 180 175 490 471 438 493 189 160 155 120 Q311 Q411 Q112 Focus on tenancy enhancement…driving Revenue & Profitability The above nos for Revenue & EBITDA are in IFRS as per Quarterly Report & includes proportionate share (42%) in Indus . .0 37.6 37.Financial Performance – Passive Infra Revenue 35.

77 1.000 30.40 1.942 1.65 1.196 30.000 25.83 Indus Towers (nos) & Sharing Factor 1.000 31.000 20.000 36.000 Q111 Q211 36.80 1.70 105.40 32.60 1.65 1.000 1.424 31.75 1.290 38.73 33.000 Q111 Q211 Q311 Q411 Q112 104.847 30.87 2.963 Q311 Q411 Q112 Q111 Q211 Q311 Q411 Q112 Shar ing Revenue per Shar ing Operat or per mont h Shar ing Revenue per Sharing Operat or per mont h Aims to enhance the tenancy ratio & be the preferred choice of vendor for all existing and new operators .000 33.90 1.501 31.438 107.80 109.000 99.50 1.789 108.Operational Performance – Passive Infra Infratel Towers (nos) & Sharing Factor 34.70 1.586 108.50 1.20 No of t ower s Shar ing Fact or No of t owers Sharing Fact or Sharing Revenue per Sharing Operator per Month (Rs) Sharing Revenue per Sharing Operator per Month (Rs) 41.000 97.792 32.00 1.389 30.000 37.000 31.68 1.000 29.859 36.379 31.60 103.922 1.000 1.831 32.000 Q111 Q211 Q311 Q411 Q112 1.000 32.901 106.000 1.000 107.80 1.30 1.000 25.041 37.000 15.203 30.599 35.000 101.78 1.

Transaction Rationale Shareholding and Management Control Brand – ‘Airtel’ 100% Cash Transaction Global Stature Emerging Market Characteristics Strong Platform for Future Expansion Focus on Core Middle East Operators Clean / certainty of transaction Manageable Deal Size Diversification of India Risk Avoid Greenfield Low Competitive Intensity Significant Synergies Speed in Transaction Repayment of Debt The transaction meets the objectives of Airtel with long term strategic benefits and creates tremendous shareholder value .

annual / quarterly reports. Data pertaining to the 16African countries where Zain Africa has operations. high pricing model Minutes of Usage ~445 ~121 ARPU (US$) ~$4 ~$7 ARPM (US cents ¢) 1¢ 6¢ And therefore huge opportunity space Source: Global Insight. . 1. low pricing model Low usage.Differences between the two markets India Mobile Penetration 70% Africa(1) 40% Average Number of Competitors 10-12 3-5 Business Model High usage.

878 Mn EBITDA: $ 6.2011.3% →one of the highest in the world Usage per sub per month: 121 Minutes →one of the lowest ARPU: ~ US$ 7.30 Mn Prepaid Base: 99.3 → one of the highest VAS: ~ 8. .Africa Customer Base : 46.3 Mn Performance Indicators (CY 2011): Revenue: $ 2.Another Growth Engine .4% →One of the lowest Note: Above numbers based on Quarterly report ended 30 June .3 Rate per minute: ~ US¢ 6.

Recent Honors .

Deputy Group CEO and MD . CEO( International) & Joint MD .CFO India Hall of Fame by CFO India Manoj Kohli.Telecom Man of the year .Won in 5 categories.Tele.Wall Street Journal Telecom Operator award 2011 .Bharti airtel – Leadership in business Economic Times Telecom Awards 2011 Innovative Product Value Added Service Customer Experience Enhancement Frost & Sullivan 2011 Asia Pacific ICT Awards Enterprise Telecom Service Provider of the Year Wholesale Data Service Provider of the year Mobile VAS Provider of the Year India’s Most Innovative company .Voice & Data magazine Akhil Gupta.‘Security Leader of the Year' Bharti Airtel rated as India’s Best Enterprise Connectivity Provider.Users choice award Instituted by PC Quest Sunil Bharti Mittal : – Global Game changer at Economic Times Telecom Awards 2011 – Global Telecom Leader .net Business world – FICCI – SEDF Corporate Social Responsibility Awards 2009-10 . Most Admired company Best National Mobile operator Recent Honours Best VAS provider Best Enterprise services Operator with Rural performance DSCI Excellence Award 2011 for Security in Telecom.

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