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Investor Presentation

Bharti airtel limited


November2012

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 B2B

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

Passive Infrastructure Services


BhartiInfratel owns34,220 towersacross11 circles Owns42%stake inIndusTowers, amongstthe largest independent towercompanies intheworld,with in the world with 110,561towers across15circles Averagetenancy ratioof~1.91

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 4thLARGESTMobiletelecomoperatorintheworld AmongstthelargestprovidersofPassive infrastructure(bytowers)(2)

Note:FY12numbersareasperIFRSasperMarch12quarterlyreport.ExchangerateforReto$conversion:51.16. (1)3rd largestwirelessoperatorintheworldreferstoincountry(singlecountry)operatorbasedonthenumberof subscribers.4th largestmobileoperatoronbasisofnumberofsubscribers.(2)ThroughitssubsidiaryBhartiInfratel& IndusTowersinwhichBhartiInfratelowns42%stake.

Latest Results 2Q13

Key operating and financial metrics


Q2FY13* Customers Revenue EBITDA CashProfit NetIncome EBITDAMargin ROCE 262.6mn Rs.202.7bn Rs.63.5bn Rs.53.5bn Rs.7.2bn 31.3% 6.2% 17% 9% 8% 30% YonY

Continued Strong Performance


WirelessCMS WirelessRMS 20.5% 30.3%

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

Performance dashboard - 3 line graph

205,000

202,732 68.6% 70.9% 71.1% 70.2% 193,501 72.2%

80.0%

195,000 195 000

70.0% 70 0%

185,000

184,767
175,000

187,294

60.0%

172,698 172 698 44.5% 45.4% 44.4% 47.4% 46.0%

50.0%

165,000

40.0%

155,000

30.0%

Q Q2 FY12

Q Q3 FY12

Q Q4 FY12

Q Q1 FY13

Total Revenue (Rs mn) LHS

Opex to Total Rev (RHS)

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.

Rapidly Growing Indian Wireless Market

NetAddsinSeptwereNegative1.7Mnlessthan overlast3 monthsaveragerunrateof7.0Mn

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

30 25 20 15 10 5 ( ) (5) (10) (15) (20) (25)

80% 70% % 60% 50% 40% 30% 20% 10% 0% 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
200 180 160 140 (mn) 120 100 80 60 40 20 R Reliance Airtel Vo odafone 13 8 BSNL L+MTNL 4 15 16
1 35 01 1 05 1 15 1 1 00 89 78 1 86 1 73 1 47 1 53 1 45 1 34 19 1

Customer Market Share CMS (%) C stomer


25% 23% 21% 19% 17% 15% 13% 11% 9% 7%
1 4.9% 1 .6% 1 1 .6% 1 1 2.7% 1 .5% 1 1 0.2% 8.6% 20.5% 1 9.8% 1 6.8%

6.6% 1 6.8% 1 1 4.8% 1 3.6%

Tata

Idea

Others

BSNL L+MTNL

5% R Reliance Airtel Vodafone

Tata

Idea

Sep- 12

Sep- 11

Net adds during the year

CMS( Sept '12)

CMS( Sept '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

AirtelPerformance Indicators (Operational)


Customers & Market Share
200 150 100 50 0 Q212 Q312 Customers(mn) Q412 1Q13 CMS(%) 2Q13 19.8% 19.8% 19.7% 20.6% 21.8% 22% 18%
92% 98% 93.7%

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%

80% Q212 Q312 PrepaidSubs Q412 1Q13 PrepaidNetAdds 2Q13

ARPU & RPM


50 183 40 187 189 185 177 200
210,000

MoU/Sub/Month & MON


250
280,000 423 419 431 433 417 450

300

30 43.18 20 44.56 43.83 42.66

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)

0 Q412 1Q13 2Q13

ARPU (INR)

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(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)

Emerging Growth Engines Passive Infra Africa

Financial Performance Passive Infra

Revenue(USDMln) Revenue (USD Mln)


510 486 480 463
150 250 37.5%

EBITDA(USDMln) EBITDA (USD Mln)


37.3% 38.6% 186 163 36.5% 37.5%

482

481

200

182

180

174

450

445
100

420

50 0

390 Q212 Q312 Q412 Q113 Q213

Q212

Q312

Q412

Q113

Q213

FocusontenancyenhancementdrivingRevenue&Profitability

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

Operational Performance Passive Infra


Infratel
Towers(nos)&SharingFactor
34,000 1.79 1.81 1 81 1.82 1 82 1.82 1 82 1.9 1.81 1.8 1.7 33,000 32,942 32,000 Q112 Q212 Q312 Nooftowers Q412 Q113 32,993 ` 33,094 33,147 33,446 1.6 1.5 1.4 97,000 Q212 Q312 Q412 Nooftowers Q113 Q213 102,000 107,000 109,204 109,328 109,325 109,539 110,561 112,000 1.89 1 89

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)

41,000 37,000 33,000 29,000 25,000 Q212 36,293

37,493

37,151

36,170

36,839

31,117

32,083

32,114 29,777

31,711

30,000 25,000 20,000 15,000

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

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 74%

Africa(1)
46%

AverageNumberof Competitors

1012

35

BusinessModel

Highusage,lowpricingmodel

Lowusage,highpricingmodel

MinutesofUsage Minutes of Usage

~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.

Another Growth Engine - Africa


CustomerBase:58.7Mn PerformanceIndicators(CY2012): Revenue:$4,137Mn EBITDA:$1,097Mn PrepaidBase:99.3% oneofthehighestinthe one of the highest in the world Usagepersubpermonth:138Minutes oneofthelowest o e of e o es ARPU:~US$6.4 Rateperminute:~US4.6 oneofthehighest VAS:~6.9% Oneofthelowest

Note:AbovenumbersbasedonQuarterlyreportended30September,2012.

Recent Honors

Bharti airtel Leadership in business


Won :Best National Mobile : Best Operator, Best VAS Provider, Best Enterprise Services Provider , Best Ad Campaign by an Operator at the Telecom Operator Awards 2012. Ranked #71 in top 100 list of Global Brands by Millward Brown Optimer, published in Financial Times , with an estimated brand value of over USD 11 billion,2012

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.

thank you