Investor Presentation

Bharti airtel limitedJanuary 2012

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 theapplicable laws and regulations as amended from time to time. There is no representation that all information relating to the context has been takencare off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, futureevents or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any informationcontained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in anyjurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon thispresentation independent consultation / advise may be obtained and necessary due diligence, investigation etc may be done at your end. You mayalso 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 generalbusiness plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive andregulatory environment In addition to statements which are forward looking by reason of context the words ‘may will should expects plans intendsregulatory 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 ordevelopments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and socialconditions in India. It is cautioned that the foregoing list is not exhaustiveg g

“The information contained herein does not constitute an offer of securities for sale in the United States. Securities may not be sold inthe United States absent registration or an exemption from registration under the U S Securities Act of 1933 as amended Any publicthe United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any publicoffering of securities to be made in the United States will be made by means of a prospectus and will contain detailed information aboutthe 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.inFor any queries, write to: ir@bharti.in

The Company...Bharti airtel – An Integrated Telco

Wireless Services2G

Enterprise ServicesCarriers

3GRural Market

Corporates

Passive Infrastructure Services

Telemedia ServicesFixed LineB db d

InfratelIndus

DTHBroadbandIPTV

DTHPay per view / HDInteractive Services including

GamingGaming

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

The Company…Bharti airtel

No. of circles (India) Today Countries1 5 15 22 19

‘

1996 2001 2003 2004 2010

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

Growth trajectory reflected in the numbers

Single Circle Operator Company Profile Largest integrated private telecom

1996 2011Single Circle Operator Company Profile Largest integrated private telecom

operator

< 25k Customers ~ 221 mn

USD 17 mn R USD 13 b~ USD 17 mn Revenue ~ USD 13 bn

~ USD 2.5 mn EBITDA ~ USD 4 bn

~ USD 1.4 mn Cash Profit ~ USD 4 bn

~ USD 16 mn Market Capitalization ~ USD 30 bn

Continuing on our journey of Value Creation

Note: 1) 2011 financials are as per FY 2011 results. 2) Exchange rate: Financials as of 31st Mar 11 : Rs 44.65

Financials & Positioning

Positioning in the world & in India3rd LARGEST in country wireless operator in the

Key financial metrics

FY 11 (in Mn)

Customers 220.9

3rd LARGEST in ‐country wireless operator in the 

world (1)

LARGEST private INTEGRATED telecom company in Revenue $ 13,319

EBITDA $ 4,472

Cash Profit $ 3 983

India

5th LARGEST Mobile telecom operator in the world

Cash Profit $ 3,983

Net Income $ 1,354

EBITDA Margin (%) 34.6

Amongst the largest providers of Passive 

infrastructure (by towers) (2)

ROCE (%) 10.8

Note: FY11 numbers are as per IFRS as per March11 quarterly report. Exchange rate for Re to $ conversion: 44.65.    (1) 3rd largest wireless operator in the world refers to in‐country (single country) operator based on the number of subscribers. 5th largest mobile operator on basis of number of subscribers.(2) Through its subsidiary Bharti Infratel & Indus Towers in which Bharti Infratel owns 42%  stake.

Latest Results – 2Q’12

Key operating and financial metrics Continued Strong Performance

Q2 FY 12* Y‐on‐Y

Customers 236.9 mn 21.6.%

Wireless CMS 19.8%

Wireless RMS 30.0%

Total MOU carried in Qtr 250 4 bnRevenue $ 3,782 mn 13%

EBITDA $ 1,273 mn 13%

Total MOU carried in Qtr 250.4 bn 

Balance sheet strength:

Assets $ 31.5 bn

Cash Profit $ 1,028 mn ‐2%

Net Income $ 225 mn ‐38%

Net debt  $ 13.2 bn

Net debt to EBITDA  2.7 Times

(annualized)EBITDA Margin 33.7%

ROCE 7.9%

Continues to be FCF positive on at South Asia 

Level.

•Includes  full quarter numbers for Africa•Exchange rate as of 30th Sep 2011: 48.93   •**RMS as per  Sept quarter released by TRAI (IIFL report dated 24th Nov’11)

Performance dashboard - 3 line graph

162,930 169,749 172,698

72.1%70.8%

80.0%

165,000

175,000

152,311 157,721

69.9% 71.2%68.6%

60.0%

70.0%

135 000

145,000

155,000

45.3% 46.9%44.8% 44.6% 44.5% 40.0%

50.0%

115,000

125,000

135,000

30.0%105,000

Q2 FY

11

Q3 FY

11

Q4 FY

11

Q1 FY

12

Q2 FY

12

Total Revenue (Rs mn) LHS Opex to Total Rev (RHS) Capex Productivity (RHS)

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

Total Revenue (Rs mn) LHS Opex to Total Rev (RHS) Capex Productivity (RHS)

The above chart is for Airtel Consolidated including Africa

Wireless Services

Indian Market

Overall Telecom Market Wireless Market

Population 1 2 billion Sub Base   c.873.61 mn Population  1.2 billion

→ Relatively large youth population

Telecom penetration c.76.2% 

Wireless Penetration   c.72.62%

Operational metrics per month(~917.3 mn telecom subs) 

Sub number should go upto 1 Billion by 2015

Broadband penetration  39.8% (13.1 mn)

Usage per user 345 min

ARPU ~ US$ 3.51

Rate per minute ~ US$ 0.01→ Govt. target to reach 20 mn. Broadband subs by 2011

VAS  ~ 13.3%

Lot of opportunity ahead….

Note: (1) Subscriber numbers and wireless penetration numbers as on November 30, 2011 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 3Q11 dated 28th September 11 by Merrill Lynch, and reflective of Industry numbers.

Rapidly Growing Indian Wireless Market

Net Adds in Nov 3.0 Mn…lesser than over last 3months average run rate of 7.7 Mn S-curve triggered

70%

80%

90%

700

800

900

20

25

Closing Subs Net Adds

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40%

50%

60%

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300

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India ‐ Fastest Growing Market in the World

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India  Fastest Growing Market in the World

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

Wireless Market Structure in India

Subscriber Trends Customer Market Share – CMS (%)

175180

200 19.8%20.5%21%

23%

25%

149 147

102 104

83

125

149

122 121

8979 83 86

80

100

120

140160

180

(mn) 11.5%

9.4%

16.9% 16.6%

11.8%

14.1%

16.8%16.6%

12.2%

10.8% 11.3%11.8%

11%

13%

15%

17%

19%

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• Airtel continuously consolidating its market leadership position despite intense competition• Airtel current monthly net adds at 0.96 million vs. 3.1 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  November 30 2011 as per TRAI press release. 

Airtel…Performance Indicators (Operational)

Customers & Market Share Prepaid/PostpaidCustomers & Market Share Prepaid/Postpaid

19.8%19.9%20.0%20.3%20.8%

120

180

18%

22%

93.7%

97.3%98.1%98.2%

97.5%

94%

98%

102%

172.8169.2162.2152.5143.3

0

60

Q211 Q311 Q411 Q112 Q2126%

10%

14% 96.3%96.3%96.3%96.2%96.1%

78%

82%

86%

90%

Q211 Q311 Q411 Q112 Q212

ARPU & RPM MoU/Sub/Month & MON

Customers (mn) CM S (%) Prepaid Subs Prepaid Net Adds

202 198 194 190 183

40

50

60

200

250

300

454 449 449 445 423

205,018 218,190228,331

224,734450

460

470

480

230,000

280,000

44.44 44.19 43.13 42.76 43.18

-

10

20

30

40

0

50

100

150

200196,196

400

410

420

430

440

450

Q211 Q311 Q411 Q112 Q21280,000

130,000

180,000

M U/S b (M i ) T t l i t N t k (M M i )Q211 Q311 Q411 Q112 Q212

RPM (Paise) ARPU (INR)

M oU/Sub (M in) Total minutes on Network (M n M in)

Current positioning and way forward…

Leadership Positioning Growth strategy and plans

RevenueRevenue New RevenueRevenueRevenue New Revenue Streams

Revenue size (>$ 12Bn)

Revenue Market Share

Changing face of growth through M‐Com,  M‐entertainment & 3G

Cost

Non financial Maximizing

Net AddsImproving cost efficiencies

L t t GSM t kDriven by rural strategy

vitals usage

BrandDistribution Churn lower than industrySpectrumMix (900/1800 MHz)

Lowest cost GSM network

Increasing the usage through U&R driveWallet share  

Spectrum Mix (900/1800 MHz)

Telemedia Services

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. Voice (wire‐line) and Data (DSL) Presence in 87 top cities of India.

2. Target Segment : Retail and Small and Medium Enterprises.

3. Customer base: 3.3 million (end Sept 2011)

4. Broadband (DSL with speeds>256 kbps) penetration at 43.1% of customer base.

5. Average ARPU for Quarter ended Jun’11 $ 20.9 per month.

6. Segment contributing to 8% of overall revenues of the company.

7 EBITDA i f 44 2%7. EBITDA margin of over 44.2%.

Broadband revolution to follow wireless revolution in India

SMB opportunity across ICT stream

E i S iEnterprise Services

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  p g f f g

Carriers: Wholesale voice and data services to over 130 domestic and 450 international 

telecommunications carriers, as well as ILD and NLD carriage for Airtel’s own customers 

E t i ti l d i t ti l i f t tExtensive national and international infrastructure 

Pan‐India network with 151,719 Route kms of optical fiber, over 4,150 MPLS and SDH POPs

Access network (terrestrial) in 87 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  (Q2‘12)

NLD Minutes Carried: 20.3 Billion ; ILD Minutes Carried: 3.5 Billion 

Revenue:  Rs.11,042 Million (9% Segment Contribution Share)

EBITDA:  Rs. 2,371 Million  (21.4% EBITA Margin) IT A: Rs. ,37 Million ( .4% ITA Margin)

Emerging Growth EnginesEmerging Growth Engines

Passive InfraAfricaAfrica

Financial Performance – Passive Infra

Revenue EBITDARevenue EBITDA

471

490 493486

450

500

182192

183189

175180

200

22037.1 38.6 37.0 37.7 37.5

300

350

400

Q211 Q311 Q411 Q112 Q212 100

120

140

160

180

Q211 Q311 Q411 Q112 Q212 100Q211 Q311 Q411 Q112 Q212

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 . 

Operational Performance – Passive Infra

Infratel Indus

Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor

34 000 1 90 1.801.83

1.87 1.89109,000 2.00

33,05632,94232,79232,424

31,831

1.791.771.73

1.681.65

32,000

33,000

34,000

1.50

1.60

1.70

1.80

1.90

106,438107,789 108,586 108,922 108,998

1.78

97,000

99,000

101,000

103,000

105,000

107,000

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

Sharing Revenue per Sharing Operator per Month (Rs) Sharing Revenue per Sharing Operator per Month (Rs)

31,000Q211 Q311 Q411 Q112 Q212

1.40

No of t owers Shar ing Fact or

Q211 Q311 Q411 Q112 Q212

No of t owers Shar ing Fact or

38,041 37,859 36,599 36,20337,117

33,000

37,000

41,000

31,389 30,847 30,501 31,963 31,112

25,000

30,000

35,000

25,000

29,000

Q211 Q311 Q411 Q112 Q212

Sharing Revenue per Sharing Operat or per mont h

15,000

20,000

Q211 Q311 Q411 Q112 Q212

Sharing 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

Transaction Rationale

Shareholding and Management Control

Brand – ‘Airtel’

100% Cash Transaction

Focus on CoreMiddle EastGlobal

Clean / certaintyof transaction

Brand Airtel Middle East Operators

Global Stature

Emerging Market Characteristics

St Pl tf

ManageableDeal Size

Strong Platformfor Future Expansion

Low Competitive Intensity

Diversification of India Risk

Avoid Greenfield

Speed inTransaction

Repayment of Debt

Significant Synergies

Avoid Greenfield Debt

The transaction meets the objectives of Airtel with long term strategic benefits and creates tremendous shareholder value

Differences between the two markets

Mobile Penetration 40%73%

India Africa(1)

Average Number of Competitors 3‐510‐12

Business Model

Minutes of Usage

Low usage, high pricing model

~128

High usage, low pricing model

~423Minutes of Usage

ARPU (US$)

128

~$7

423

~$4

ARPM (US cents ¢) 6¢1¢

A d th f h t itAnd therefore huge opportunity space

Source: Global Insight, annual / quarterly reports.1. Data pertaining to the 16African countries where Zain Africa has operations.

Another Growth Engine - Africa

Customer  Base : 48.4 Mn

Performance Indicators (CY 2011):

Revenue: $ 2,878 Mn

EBITDA: $ 6,30 Mn

Prepaid Base: 99.3%

→one of the highest in the→one of the highest in the world

Usage per sub per month: 128 Minutes

→one of the lowest o e of e o es

ARPU: ~ US$ 7.3

Rate per minute: ~ US¢ 6.1

→ one of the highest

VAS: ~ 8.5%

→One of the lowest

Note: Above numbers based on Quarterly report ended 30 Sept ,2011. 

Recent Honors

Bharti airtel – Leadership in business Recent HonoursEconomic 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  ‐Wall Street Journal 

Telecom Operator award 2011 ‐Won in 5 categories.

Most Admired companyBest VAS provider

Best National Mobile operator

Operator with Rural performanceBest Enterprise services 

DSCI Excellence Award 2011 for Security in Telecom‐ ‘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 ‐ Voice & Data magazine

Akhil Gupta, Deputy Group CEO and MD  ‐ CFO India Hall of Fame by CFO India

Manoj Kohli, CEO( International) & Joint MD ‐ Telecom Man of the year ‐ Tele.net

Star News Brand Excellence Award in the Telecom Sector 2011

thank youthank you