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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.
Mobile Services
Cellularmobile servicesacross 20countries Customerand revenuemarket leaderinIndia ~252million wireless subscribers globally,asof Q2FY13
Telemedia Services
Offersfixed telephonyand broadband internet(DSL+ IPTV) Customerbase of3.3million; large broadband& internet customers Services providedacross 87cities
Digital TV Services
PanIndiaDTH operations 7.5mn customers Coverageacross Coverage across 632districts
Airtel Business
Servicestolarge enterprisesand carriers Servesassingle pointofcontact foralltelecom needs Global infrastructureof over225,000 Rkmscovering 50countries across5 continents
Fullyintegratedtelecomplayeroffering endtoendsolutions
22
1996
2001
2003
2004
2012
Fully integrated telecom player offering end to end solutions and entering new geographies
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
Note:1)2012financialsareasperFY2012results.2)Exchangerate:Financialsasof31st Mar12:Rs51.16
TotalminutesonnetworkcarriedinQtr,netof Total minutes on network carried in Qtr, net of eliminations Balancesheetstrength: Assets Netdebt NetdebttoEBITDA Rs.1,620 b bn Rs.668bn 2.72Times (annualized) ContinuestobeFCFpositiveatSouthAsiaaswell asAfricalevel. 275bn
IncludesfullquarternumbersforAfrica **RMSforthequarterendedJune302012asperreportpublishedbyTrai
205,000
80.0%
70.0% 70 0%
185,000
184,767
175,000
187,294
60.0%
50.0%
165,000
40.0%
155,000
30.0%
Q Q2 FY12
Q Q3 FY12
Q Q4 FY12
Q Q1 FY13
ProductivityIndicators=growingrevenues+costefficiencies+capitalproductivity
TheabovechartisforAirtelConsolidatedincludingAfrica
Q Q2 FY13
Capex Productivity (RHS)
Wireless Services
Indian Market
Overall Telecom Market
Population Population 1.2billion 1 2 billion Relativelylargeyouthpopulation Telecompenetration c.77.0% (~937.7mntelecomsubs) Subnumbershouldgoupto1Billionby2015 Broadbandpenetration 1.2%(15.1mn) VAS SubBase WirelessPenetration Operationalmetricspermonth Usageperuser ARPU Rateperminute Govt.targettoreach20mn.Broadbandsubsby2012 ~13.7% 339min ~US$3.06 ~US$0.01
Wireless Market
c.906.6mn c.74.49%
Lotofopportunityahead.
Note: (1) Subscriber numbers and wireless penetration numbers as on September 30, 2012 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 3Q12 dated 1st Oct 12 by Merrill Lynch, and reflective of Industry numbers.
S-curve triggered
Closing Subs
Net Adds
90%
1,000 800 600 400 M illio n s 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 J un-12
80% 70% % 60% 50% 40% 30% 20% 10% 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Note:(1)ActualDataasperIndustryAssociationReleasesandIndustryEstimatesinIndia.
Tata
Idea
Others
BSNL L+MTNL
Tata
Idea
Sep- 12
Sep- 11
Airtelcontinuouslyconsolidatingitsmarketleadershippositiondespiteintensecompetition Ai l i l lid i i k l d hi ii d i i ii
Airtelcurrentmonthlynetaddsare(1.3)millionvs.0.9millionayearago Airtelranks1&2in16circlesintermsofnumberofsubscribers
AirtelContinuestoleadonRevenueMarketShare
Note:BasedonsubscriberdataforIndiaasonSeptember302012asperTRAIpressrelease.
Others
p p Prepaid/Postpaid
96.2% 95.8% 95.1% 89.1%
172.8
175.7
181.3
187.3
185.9
14% 10% 6%
86%
96.3%
96.3%
96.3%
96.2%
96.0%
300
150
140,000 140 000 242,683 227,115 238,779 247,860 243,134 150 70,000
42.59
100
10
50
0 Q212 Q312 Q412 1Q13 2Q13
MoU/Sub (Min)
0
Total minutes on Network (Mn Min)
Q212 Q312
RPM (Paise)
ARPU (INR)
Cost
Improvingcostefficiencies
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(endSeptember 2012) Broadband(DSLwithspeeds>256kbps)penetrationat42.1%ofcustomerbase. AverageARPUforQuarterendedDec11$17.6permonth. Segmentcontributingto7% ofoverallrevenuesofthecompany. EBITDAmarginofover42.4%. EBITDA i f 42 4%
BroadbandrevolutiontofollowwirelessrevolutioninIndia SMBopportunityacrossICTstream
Digital Services
A Snapshot
LaunchedAirtelDigitalTVserviceinOctober2008asfifth operatorprovidingDirecttoHome(DTH)servicesinIndia
Currentsubscriberbaseof~7.5millioncustomers C t b ib b f ~7 5 illi t
Adding1outofevery4newcustomersjoiningtheDTHplatform Currentlyofferatotalof304channelsincluding15HDchannels Currently offer a total of 304 channels including 15 HD channels and5interactiveservices
Presentacross632districts,partneringwithlocalservicepartnersto providecustomerserviceandoperatecallcenters provide customer service and operate call centers AlsoofferHighDefinition(HD)SetTopBoxesandDigitalTVRecorders with3Dcapabilitiesdeliveringsuperiorcustomerexperience KeyPerformanceIndicators(Q213) Revenue:Rs.3,937Million(3%SegmentContributionShare) EBITDA: Rs. 33 Million (0.8% EBITDA Margin) EBITDA:Rs.33Million(0.8%EBITDAMargin) AverageARPUof$3.2permonthforquarterendedSept12
___________________________ Source:CompanyFilings
Airtel Business Ai l B i
A Snapshot
AirtelBusinessprovidesabroadportfolioofservicestolargeEnterpriseandCarriercustomers 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 PanIndianetworkwith162,457Routekmsofopticalfiber,over4,150MPLSandSDHPOPs Accessnetwork(terrestrial)in87cities,Wimaxnetworkin143cities,andover1,500localPOIs Internationalnetworkwith225,000RouteKms,connectingover50countriesand5Continents. KeyPerformanceIndicators(Q213) NLDMinutesCarried:23.0Billion;ILDMinutesCarried:4.3Billion Revenue:Rs.13,934Million(10%SegmentContributionShare) IT A: Rs. , 48 Million ( 5.4% ITA Margin) EBITDA:Rs.2,148Million(15.4%EBITAMargin)
482
481
200
182
180
174
450
445
100
420
50 0
Q212
Q312
Q412
Q113
Q213
FocusontenancyenhancementdrivingRevenue&Profitability
TheabovenosforRevenue&EBITDAareinIFRSasperQuarterlyReport&includesproportionate share(42%)inIndus .
Indus
Towers(nos)&SharingFactor
1.91 1.94 1.96 1.98 2.20 2.00 1.80 1.60 1.40 1.20
SharingRevenueperSharingOperatorperMonth(Rs)
35,000
SharingRevenueperSharingOperatorperMonth(Rs)
37,493
37,151
36,170
36,839
31,117
32,083
32,114 29,777
31,711
Q312
Q412
Q113
Q213
Q212
Q312
Q412
Q113
Q213
SharingRevenueperSharingOperator
SharingRevenueperSharingOperator
Aimstoenhancethetenancyratio&bethepreferredchoiceofvendorforallexisting andnewoperators
Transaction Rationale
Shareholding and Management Control Brand Airtel Airtel Clean / certainty of transaction
Global Stature Emerging Market Characteristics Strong Platform St Pl tf for Future Expansion
ThetransactionmeetstheobjectivesofAirtelwithlongtermstrategicbenefits andcreatestremendousshareholdervalue
Africa(1)
46%
AverageNumberof Competitors
1012
35
BusinessModel
Highusage,lowpricingmodel
Lowusage,highpricingmodel
~417 417
~138 138
ARPU(US$)
~$3.2
~$6.4
ARPM(UScents)
0.8
4.6
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.
Note:AbovenumbersbasedonQuarterlyreportended30September,2012.
Recent Honors
Recent Honours
Sunil Bharti Mittal, Chairman & Group CEO GlobalGamechangerat EconomicTimesTelecomAwards 2011. BusinessLeaderfortheWorld f AwardfromINSEADin2011. Rajan Bharti Mittal, Vice Chairman & MD IndianBusinessLeadersofthe f Year awardattheGlobalIndia BusinessMeeting,2011. Akhil Gupta, Deputy Group CEO & MD OutstandingContributiontothe SectorawardattheTelecom OperatorAwards2012. CFOIndiaHallofFamebyCFO India,2011. Manoj Kohli, CEO (International) & Joint MD TelecomManoftheyear by Tele.netinApr10.
Airtel money won the Best Innovation awards at the Telecom Operator Awards 2012
Airtel digital TV (HD) was recognized as the Product of the year 2012, by AC Nielsen, an international research firm. Airtel has been felicitated for the Best Mobile Service Provider and Innovation in mMoney awards at the Aegis Graham Bell Awards held on November 1, 2012...
Airtel has been awarded with the Brand of the Year award at the CNBC TV18s flagship initiative, the India Business Leader Awards (IBLA) for its Har Ek Friend Zaroori Hota Hai campaign.. Airtel has won the highly prestigious Porter Prize in the Exploiting Trade-offs category. T d ff t
Won the Golden Peacock National Quality Award for the year 2011
2nd time in the row Airtel has been ranked as the No. 1 service brand in the Brand Equitys Most Trusted Brands Annual survey in 2012.
Airtel Nigeria won three industry Awards at the prestigious 8th edition of the Nigerian Telecoms Awards namely the Telecoms Brand of the Year, Customer Service and the Most Innovative Network.
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