Investor Presentation

Bharti airtel limited

February 2011
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Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and
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Investor Relations :- http://www.airtel.in

For any queries, write to: [email protected]
The Company...Bharti airtel – An Integrated Telco

Wireless Services
Enterprise Services

 2G  Carriers
 Corporates
 3G
 Rural Market

Passive Infrastructure Services
 Infratel

Telemedia Services
 Indus
 Fixed Line
 Broadband
DTH
 IPTV  Pay per view / HD
 Interactive Services including
Gaming

Fully integrated telecom player offering end to end solutions

and entering new geographies
 The Company…Bharti airtel

No. of circles (India) Today Countries

1 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

1996 2010
Single Circle Operator Company Profile Largest integrated private telecom
operator

< 25k Customers ~ 137 mn

~ USD 17 mn Revenue ~ USD 9 bn

~ USD 2.5 mn EBITDA ~ USD 4 bn

~ USD 1.4 mn Cash Profit ~ USD 4 bn

~ USD 16 mn Market Capitalization ~ USD 26 bn

Continuing on our journey of Value Creation

Note: 1) 2010 financials are as per FY 2010 results. 2) Exchange rate: Financials as of 31st Mar 10 : Rs 45.14
3) The above numbers do not include Africa which has 40 mn subs as on 30th Sept’10.
 Revenue & Profitability trends
Total revenues EBITDA
36% 5,000
CAGR 39%
10,000
8,776 CAGR
8,188
4,000
3,550
8,000 3,360

5,987

(In $ Mn)
3,000 2,519
(In $ Mn)

6,000

4,103
2,000 1,651
4,000

2,000 1,000

0 0

2007 2008 2009 2010 2007 2008 2009 2010

Years Years

Cash profit from operations Net profit

2,500 42%
42% CAGR
4,000 3,679
CAGR 2,017
2,000 1,876
3,500
3,103

3,000 1,484

(In $ Mn)
2,467
1,500
2,500
(In $ Mn)

2,000 1,619 943

1,000

1,500

1,000 500

500

0
0

2007 2008 2009 2010

Years 2007 2008 2009 2010
Years

Bharti Airtel – demonstrating robust performance

Source: Financials for the year ended March 31, 2006, 2007, 2008, 2009 & 2010 are audited and as per
USGAAP.The above numbers are in Mn USD re-stated at 31st Mar 10 exchange rate..Exchange rate as of
31st Mar 10 : Rs 45.14
 Financials & Positioning

Key financial metrics Positioning in the world & in India

 3rd LARGEST wireless operator in the world (1)
FY 10 (in Mn)
 LARGEST private INTEGRATED telecom company in
Customers 137.0
India
Revenue $ 9,271
 5th LARGEST INTEGRATED telecom operator in the
EBITDA $ 3,714
world

Cash Profit $ 3,710

 LARGEST operator in NLD, ILD and VSAT business
Net Income $ 1,989
 LARGEST TELECOM company listed on Indian Stock
EBITDA Margin (%) 40.3* Exchanges

ROCE (%) 24.4

Note: FY10 numbers are as per IFRS as per June10 quarterly report. Exchange rate for Re to $ conversion: 45.14.
* EBITDA Margin before acquisition related costs of Rs 976 mn for the quarter & FY ended Mar 31, 2010.
(1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of
subscribers.
 Latest Results – 3Q’11

Key operating and financial metrics Continued Strong Performance

Q3 FY 11* Y-on-Y  Wireless CMS 20.3%

Customers 207.8 mn 65.9.%  Wireless RMS 30.6%

 Total MOU carried in Qtr 227.3 bn

Revenue $ 3,516 mn 52.9%
 Balance sheet strength:
EBITDA $ 1,112 mn 22.0%
 Assets $ 32.3 bn
Cash Profit $ 945 mn 3.1%  Net debt $ 13.4 bn

Net Income $ 291 mn -40.6%  Net debt to EBITDA 2.9 Times

(annualized)
EBITDA Margin 33.8%
 Continues to be FCF positive on at South Asia
ROCE 11.2% Level.

•Includes full quarter numbers for Africa

•Exchange rate as of 31St Dec 2010: 44.81
•**RMS as per September quarter as Dec quarter nos are not yet released by TRAI
 Performance dashboard - 3 line graph

160,000 80%
74%
152,150
157,560
150,000 71% 70%
63% 63% 72%
Total Revenue (Rs.mn)

140,000
60%
130,000
122,308
50%
120,000 41.4% 42.7%
39.9% 45.7% 46.9%
40%
110,000
103,053
107,491
100,000 30%
Q310 Q410 Q111 Q211 Q311

Total Revenue (Rs. Mn) (LHS) Opex to Total Revenue (RHS) Capital Productivity (RHS)

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

The above chart is for Airtel Consolidated including Africa

Wireless Services
 Indian Market

Overall Telecom Market Wireless Market

 Sub Base c.729 mn

 Population 1.2 billion

→ Relatively large youth population  Wireless Penetration c.61.4%

 Telecom penetration c.64.34%  Operational metrics per month

(~764.76 mn telecom subs)
 Usage per user 449 min
Sub number should go upto 1 Billion by 2015
 ARPU ~ US$ 4.4
 Broadband penetration 0.89% (10.71 mn)  Rate per minute US$ 0.01
→ Govt. target to reach 20 mn. Broadband subs by 2010
 VAS ~ 13.8%

Lot of opportunity ahead….

Note: (1) Subscriber numbers and wireless penetration numbers as on Nov 30, 2010 are as per TRAI (2)
Other indicators on the slide are based on Global Wireless Matrix 3Q10 dated 24th September 10 by
Merrill Lynch, and reflective of Industry numbers.
 Rapidly Growing Indian Wireless Market

Net Adds in Oct 22.9 Mn…greater than over last 3

S-curve triggered
months average run rate of 18.1 Mn

Closing Subscribers Net Adds

90%
800 22 80%
700
20
70%
18
600 16 60%
500 14 50%
12
(m n )

400 40%
10
300 8 30%
200 6 20%
4
100 2 10%
- - 0%
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
M a y -0 4

M a y -0 5

M a y -0 6

M a y -0 7

M a y -0 8

M a y -0 9

M a y -1 0
N o v -0 3

N o v -0 4

N o v -0 5

N o v -0 6

N o v -0 7

N o v -0 8

N o v -0 9

N o v -1 0

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 (%)
25%
22.9%
160 149 23%
20.5%
140 21%
122 121
116 19% 18.0%
120 16.8%
17.5%
16.6%
17%
100 91 89 89 86
79 83 15%
(mn)

80 66
13.0%
12.2%
13% 11.8%
56 54 51 11.3%
60 11%
10.8%11.0% 10.7%
33 31 33 35
40 24 23
29 9%
6.9%
20 7%
- 5%

BSNL+MTNL
BSNL+MTNL

Reliance

Idea

Tata

Others
Airtel
Reliance

Idea

Tata

Others

Vodafone
Airtel

Vodafone

CMS( Nov'10) CMS( Nov' 09)

No v-10
No v-09

• Airtel continuously consolidating its market leadership position despite intense competition
• Airtel current monthly net adds at 3.1 million vs. 2.8 million a year ago
• Airtel ranks 1& 2 in 16 circles in terms of number of subscribers
• Over 62% 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 2010 as per TRAI press release.
Airtel…Performance Indicators (Operational)
Customers & Market Share Prepaid/Postpaid
22.7%
160 21.8% 24% 105%
21.5%
20.8%
20.3%
101.7%
120 20% 99.2%
100%
98.2%
97.5% 97.5%
95.8% 96.0% 96.1% 96.2%
80 16% 95.3%
143.3 152.5 95%
136.6
118.9 127.6

40 12%
90%

0 8%
85%
Q310 Q410 Q111 Q211 Q311
Q310 Q410 Q111 Q211 Q311
Customers (mn) CM S (%)
Pr epaid Subs Prepaid Net Adds

ARPU & RPM MoU/Sub/Month & MON

44 6 46 8 4 80 454 44 9
490 2 80 ,000

60 230 300 480

220 215 2 30 ,000
4 70
50 202 198 250 19 6,19 6
460 174,746 2 05,0 18
19 5,197 18 0,00 0
40 200 4 50

440 153 ,2 41
30 150 13 0,00 0
51.69 46.98 430
20 44.83 44.44 44.19 100 420 8 0,0 00
Q3 10 Q410 Q111 Q2 11 Q3 11
10 50 M oU/ Sub (M in) Tot al minut es on Net work (M n M in)

- 0
Q310 Q410 Q111 Q211 Q311

RPM (Paise) ARPU (INR)

 Current positioning and way forward…

Leadership Positioning Growth strategy and plans

Revenue New Revenue

Streams

Revenue size
Changing face of growth
(>$ 9 Bn) through M-Com, M-

Revenue Market Share entertainment & 3G

Cost
Net Adds

Improving cost efficiencies
Non financial Maximizing
Driven by rural strategy

Lowest cost GSM network
vitals usage

Brand
Increasing the usage through U&R drive

Distribution
Wallet share

Churn lower than industry

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: 3.2 million (end Nov 2010)

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

5. Average ARPU for Quarter ended Jun’10 $ 20.8 per month.

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

7. EBITDA margin of over 44.6%.

Broadband revolution to follow wireless revolution in India

SMB opportunity across ICT stream

Enterprise 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

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

Extensive national and international infrastructure

Pan-India network with 134,026 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 (Q3 ‘11)

NLD Minutes Carried: 18.1 Billion ; ILD Minutes Carried: 3.2 Billion

Revenue: Rs.10,503 Million (9 % Segment Contribution Share)

EBITDA: Rs. 2,260 Million (21.5% EBITA Margin)

Emerging Growth Engines

Passive Infra
Africa
 Financial Performance – Passive Infra

Revenue EBITDA

200 34.0 37.1 35.5 37.1 38.6

500 490 189

471 180 175

450 438 160

431
160 155

394
400
140 134

350 120

300 100
Q310 Q410 Q111 Q211 Q311 Q310 Q410 Q111 Q211 Q311

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

33,000 1.68 1.70 109,000 1.80 1.90

1.65 1.78
1.65 1.75 1.80
107,000 1.71
32,000 1.62 1.66
1.70
1.60 105,000
31,000 1.57 1.60
103,000
32,424 107,789 1.50
30,000 31,831 106,438
31,196 1.50 101,000 104,901
1.40
30,568 102,696 102,938
29,000 29,806 99,000 1.30

28,000 1.40 97,000 1.20

Q3 10 Q410 Q111 Q211 Q311 Q310 Q410 Q111 Q211 Q311

No of t owers Shar ing Fact or No of t owers Shar ing Fact or

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

41,000 35,000
38,107 37,859 31,389 30,847
38,041 30,379
36,878 36,290 29,674
37,000 30,000 28,333

33,000 25,000

29,000 20,000

25,000 15,000
Q3 10 Q410 Q111 Q211 Q311 Q310 Q410 Q111 Q211 Q311

Shar ing Revenue per Sharing Operat or per mont h Shar ing Revenue per Shar ing Oper at 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
100% Cash Transaction 
Control
Global Focus on Core 
Brand – ‘Airtel’ Middle East Operators
Stature

Clean / Emerging Market

 certainty Characteristics
of transaction

Strong Platform
for Future Expansion

Low Competitive
Manageable Intensity
Deal Size

Diversification of
Significant
Speed in
 India Risk Synergies Transaction 

 Avoid Greenfield
Repayment of Debt 

The proposed transaction meets the objectives of Airtel with long term strategic
benefits and creates tremendous shareholder value
 Differences between the two markets

India Africa(1)

Mobile Penetration 64% 40%

Average Number of
10-12 3-5
Competitors

Business Model High usage, low pricing model Low usage, high pricing model

Minutes of Usage ~449 ~120

ARPU (US$) ~$4 ~$7

ARPM (US cents ¢) 1¢ 6¢

And therefore huge opportunity space

Source: Global Insight, annual / quarterly reports.

1. Data pertaining to the 16African countries where Zain Africa has operations.
 Africa – Strong Platform

Airtel Africa Coverage Addressable Market Opportunity

Population, 2009 (mn)
Population, 2009 (mn)

Airtel Africa
Total Africa:
450mn
1,025mn
575
450

Airtel Africa Footprint Other African Countries

Penetration, 2009

Leading African Operators

Telecom Operators by Subs in Africa • Large addressable population with low tele-
Subscribers, 2009 (mn)
density
• Leading telecom operations acquired through
77 Zain Africa
42 39
22 19 15 • Strong competitive positioning

Source: Zain Filings, WCIS.

 Another Growth Engine - Africa

 Customer Base : 42.12 Mn

 Performace Indicators (CY 2009):
Revenue: $ 3,667 Mn
EBITDA: $ 1,160 Mn

 Prepaid Base: 99.3%

→one of the highest in the
world

 Usage per sub per month: 120 Minutes

→one of the lowest

 ARPU: ~ US$ 7.3

 Rate per minute: ~ US¢ 6.1

→ one of the highest

 VAS: ~ 7.9%
→One of the lowest

Note: Above numbers based on Quarterly report ended 31 December ,2010.

Recent Honors
Bharti airtel – Leadership in business Recent Honours

NDTV Profit Business Leadership Awards 2010

 Top Telecom Company

 Sunil Bharti Mittal - Business Innovator of the Year

India’s Most Innovative company - Wall Street Journal

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 Internet and Broadband operator

 Best National Mobile operator  Best Enterprise services

‘Powerful Brand’ - Economic Times (the only corporate brand to be awarded the AAA rating)

Bharti Airtel rated as India’s Best Enterprise Connectivity Provider- Users choice award Instituted by PC Quest

Sunil Bharti Mittal – Global Telecom Leader - Voice & Data magazine

– ‘Philanthropist of the Year’ at Asian Awards 2010

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

thank you