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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 ~241million wireless subscribers globally,asof Q4FY12
Telemedia Services
Offersfixed telephonyand broadband internet(DSL+ IPTV) Customerbase of3.3million; large broadband& internet customers Services providedacross 87cities
Digital TV Services
PanIndiaDTH operations 7.23mn customers Coverageacross Coverage across 609districts
Enterprise Services
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 $30.7bn $ b $12.7bn 2.6Times (annualized) ContinuestobeFCFpositiveonatSouthAsia Level. 265bn
150,000
44.8%
44.6%
44.5%
45.4%
44.4%
40%
30%
ProductivityIndicators=growingrevenues+costefficiencies+capitalproductivity
TheabovechartisforAirtelConsolidatedincludingAfrica
Wireless Services
Indian Market
Overall Telecom Market
Population Population 1.2billion 1 2 billion Relativelylargeyouthpopulation Telecompenetration c.78.5% (~951.3mntelecomsubs) Subnumbershouldgoupto1Billionby2015 Broadbandpenetration 1.1%(13.8mn) VAS SubBase WirelessPenetration Operationalmetricspermonth Usageperuser ARPU Rateperminute Govt.targettoreach20mn.Broadbandsubsby2012 ~13.7% 330min ~US$3.06 ~US$0.01
Wireless Market
c.919.2mn c.75.9%
Lotofopportunityahead.
Note: (1) Subscriber numbers and wireless penetration numbers as on March 31, 2012 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 1Q12 dated 19th April12 by Merrill Lynch, and reflective of Industry numbers.
S-curve triggered
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Note:(1)ActualDataasperIndustryAssociationReleasesandIndustryEstimatesinIndia.
1 6.6% 1 6.4% 1 4.8% 1 2.0% 1 .3% 1 1 2.3% 1 .0% 1 1 .0% 1 8.9% 1 2.7%
19
17
16 L+MTNL BSNL
23 7 Tata Idea
33
Tata
Idea
R Reliance
Vo dafone
CMS(Mar '12)
Vodafone
O thers
Airtel
CMS( Mar'11)
Mar- 12
Mar- 11
Airtelcontinuouslyconsolidatingitsmarketleadershippositiondespiteintensecompetition Ai l i l lid i i k l d hi ii d i i ii
AirtelContinuestoleadonRevenueMarketShare
Note:BasedonsubscriberdataforIndiaasonMarch312012asperTRAIpressrelease.
Others
Prepaid/Postpaid p p
95.8%
150
18%
94%
181.3
14%
86%
10%
82%
0 Q411 Q112
Cust omers (mn)
6% Q212 Q312
CMS (%)
78% Q41 1 P repaid Subs Q1 2 1 Q21 2 P repaid Net A dds Q31 2 Q41 2
Q412
50
1 94
1 90
1 89 1 83 1 87
250
227,1 5 1
40
200
440 430
1 50
20
43.1 3
1 00
420 41 0
1 00,000 50,000
1 0
50
400 Q41 1 Q1 2 1 Q21 2 Q31 2 Q41 2 M o U/Sub (M in) To tal minutes o n Netwo rk (M n M in)
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(endMarch 2012) Broadband(DSLwithspeeds>256kbps)penetrationat42.4%ofcustomerbase. AverageARPUforQuarterendedDec11$18.6permonth. Segmentcontributingto7% ofoverallrevenuesofthecompany. EBITDAmarginofover41.0%. EBITDA i f 41 0%
BroadbandrevolutiontofollowwirelessrevolutioninIndia SMBopportunityacrossICTstream
Digital Services
A Snapshot
LaunchedAirtelDigitalTVserviceinOctober2008asfifth operatorprovidingDirecttoHome(DTH)servicesinIndia
Currentsubscriberbaseof~7.2millioncustomers C t b ib b f ~7 2 illi t
Adding1outofevery4newcustomersjoiningtheDTHplatform Currentlyofferatotalof310channelsincluding14HDchannels Currently offer a total of 310 channels including 14 HD channels and7interactiveservices
Presentacross609districts,partneringwithlocalservicepartnersto providecustomerserviceandoperatecallcenters provide customer service and operate call centers AlsoofferHighDefinition(HD)SetTopBoxesandDigitalTVRecorders with3Dcapabilitiesdeliveringsuperiorcustomerexperience KeyPerformanceIndicators(Q412) Revenue:Rs.3,565Million(3%SegmentContributionShare) EBITDA: Rs. 209 Million (5.9% EBITDA Margin) EBITDA:Rs.209Million(5.9%EBITDAMargin) AverageARPUof$3.3permonthforquarterendedMar12
___________________________ Source:CompanyFilings
Enterprise S i E i Services
A Snapshot
EnterpriseServicesprovidesabroadportfolioofservicestolargeEnterpriseandCarriercustomers 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 PanIndianetworkwith157,886Routekmsofopticalfiber,over4,150MPLSandSDHPOPs Accessnetwork(terrestrial)in87cities,Wimaxnetworkin143cities,andover1,500localPOIs Internationalnetworkwith225,000RouteKms,connectingover50countriesand5Continents. KeyPerformanceIndicators(Q412) NLDMinutesCarried:21.6Billion;ILDMinutesCarried:3.5Billion Revenue:Rs.11,209Million(8%SegmentContributionShare) IT A: Rs. ,63 Million ( 4.5% ITA Margin) EBITDA:Rs.1,631Million(14.5%EBITAMargin)
Revenue
509 510 493 486 480 482 481
180 200 183
EBITDA
37.0 37.7
192 182 186 180
37.5
37.3
38.6
160
450
140
420
120
FocusontenancyenhancementdrivingRevenue&Profitability
TheabovenosforRevenue&EBITDAareinIFRSasperQuarterlyReport&includesproportionate share(42%)inIndus .
Indus
Towers(nos)&SharingFactor
1.89 1.91 1.94 2.00
32,792
1.40
1.20
SharingRevenueperSharingOperatorperMonth(Rs)
SharingRevenueperSharingOperatorperMonth(Rs)
35,000
31963 30,501
31112
32,272
32,563
37,000
33,000
25,000
29,000
20,000
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
~431 431
~122 122
ARPU(US$)
~$3.8
~$6.8
ARPM(UScents)
0.9
5.6
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:AbovenumbersbasedonQuarterlyreportended31Mar,2012.
Recent Honors
Recent Honours
Sunil Bharti Mittal, Chairman & Group CEO GlobalGamechangerat EconomicTimesTelecomAwards 2011. GlobalTelecomLeader Voice& Datamagazine Rajan Bharti Mittal, Vice Chairman & MD Vi Ch i CABusinessAchieverAwardby InstituteofChartered AccountantsofIndia Akhil Gupta, Deputy Group CEO & MD CABusinessAchieverAwardin 2009 CFOIndiaHallofFamebyCFO India Manoj Kohli, CEO (International) & Joint MD TelecomManoftheyearby Tele.netinApr10 p
Ranked first in Indias Buzziest Brands, a survey conducted by agency faqs, a media communication portal
Airtel money won the Best Innovation awards at the Telecom Operator Awards 2012
'The Most Impactful HR Practise Award for the 'use of mobile technologies for employee services' at the recently concluded National Conference by th NHRD i C f b the in Bangalore..
Conferred the prestigious NDTV Profit Business Leadership Awards 2011 in the Teleocm Sector category
Won the Golden Peacock National Quality Award for the year 2011
Airtel digital TV (HD) was recognized as the Product of the year 2012, by AC Nielsen, an international research firm.
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