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Investor Presentation Bharti Airtel Limited Feb 2010

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Page 1: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

Investor Presentation

Bharti Airtel LimitedFeb 2010

Page 2: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

DisclaimerThe 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, 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 conditions in India. It is cautioned that the foregoing list is not exhaustive

This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.

Investor Relations :- http://www.bhartiairtel.inFor any queries, write to: [email protected]

“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 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.”

Page 3: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

3

Mobile Services Telemedia Services Enterprise Services

Advantage India

Deep Domestic Demand…Huge Growth Potential

Population: 1.2 billion→ increasing urbanisation→ relatively large youth population

GDP Growth (Real) : ~6.5%→ second highest growing economy

GDP Size (PPP adjusted): US$ 3 trillion→ fourth largest economy in the world

Telecom penetration: 49.50% (581.81 mntelecom subs)

→ one of the lowest→ Govt. targets to reach 1 bn telecom

subs by 2015Broadband penetration: 0.68% (8.0 mn)

→ one of the lowest→ Govt. target to reach 20 mn.

Broadband subs by 2010

Note: (1) *Telecom and Broadband penetration as at Jan 31th 2010 as per TRAI press release.

Page 4: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

4

Mobile Services Telemedia Services Enterprise Services

The Company...Bharti Airtel – An Integrated Telco

Wireless Services

2G/3GRural MarketSri Lanka

Telemedia Services

Fixed Line

Broadband

DTH (Media)/IPTV

Enterprise Services

CarriersCorporate

Passive Infrastructure Services

Fully integrated telecom player offering end to end solutions

Page 5: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

5

Mobile Services Telemedia Services Enterprise Services

3rd LARGEST wireless operator in the world1

LARGEST operator in NLD, ILD and VSAT business

Bharti Airtel - positioning in the world and India

LARGEST private INTEGRATED telecom company in India

LARGEST WIRELESS operator in India

LARGEST private FIXED LINE operator in India

Note: (1) 3rd largest wireless operator in the world refers to in-country (single country) operator based on the number of subscribers.

LARGEST TELECOM company listed on Indian Stock Exchanges

6th LARGEST INTEGRATED telecom operator in the world

Page 6: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

6

Mobile Services Telemedia Services Enterprise Services

Latest Results – Q3 FY09/10

Key operating and financial metrics

Q3 FY 10 Y-on-Y

Customers 121.85 mn 38.0%

Revenue $ 2,093 mn 1.4%

EBITDA $ 838 mn -0.9%

Cash Profit $ 876 mn 8.9%

Net Income $ 473 mn 2.3%

EBITDA Margin 40.0%

Net Profit Margin 22.6%

ROCE 24.1%

ROE 28.4%

Continued Strong Performance

Wireless Customer market share leadership at 22.7%.

Total minutes on network carried in Q3 – 175 billion

Total employee strength – 18,201

Balance sheet strength:

Assets - $ 14 billion

Net debt - nil * ($414 million incl CCD)

Net debt to EBITDA – nil * (0.12 incl CCD)

Continues to be FCF positive on a standalone basis

Note: * Net Debt is excluding fully and compulsory convertible, non-cumulative, unsecured and interest free Debentures of US$ 661.

The company declared a Maiden dividend of 20% of face value for the year

The company has also splitted the then existing equity shares of Rs. 10/- each into two equity shares of Rs. 5 each. The shareholders have received the credit of the splitted shares on 31st July.

Page 7: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

7

Mobile Services Telemedia Services Enterprise Services

Segment contribution…Rev, EBITDA and Investment

Note: (1) Revenue and EBITDA is gross of inter segment eliminations.

REVENUE

81%9%

21%9% 1%

Mobile Services Telemedia ServicesEnterprise Services Passive Infrastructure ServicesOthers

EBITDA

62%

10%

26%

11% -6%

Mobile Services Telemedia ServicesEnterprise Services Passive Infrastructure ServicesOthers

INVESTMENTS

49%

11%14%

23%3%

Mobile Services Telemedia ServicesEnterprise Services Passive Infrastructure ServicesOthers

Page 8: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

8

Mobile Services Telemedia Services Enterprise Services

Performance dashboard - 3 line graph

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

Page 9: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

9

Mobile Services Telemedia Services Enterprise Services

Recently in news...

• Presented Mobitude, India’s First Mobile Phone Usage Survey. It captures the preference and choice of over 116 million mobile users located across India.

• Launched India’s first ever Mobile Comics Portal on Airtel Live. This allows subscribers via WAP to access more than 300 Indianand International Comic.

• Launched Airtel Website Builder – an easy to use solution that offers customers, SMBs, SMEs and home users, the convenience to build and maintain personalized websites themselves with minimum time and effort. The service offers more than 15,000 rich templates, a free domain name and unlimited web space hosting at an affordable price starting at just Rs. 250 per month.

• Launched VPN in a Box for SMEs in alliance with Cisco – a first of its kind product based on infrastructure-as-a-service model. This MPLS based layer 3 VPN service is a ready-to-deploy bundle of a managed private leased line port, bandwidth, last mile connectivity and customer premise equipment.

• Announced expansion of its Middle East Connect network, to serve global carriers in the region. Bharti Airtel is the only outside operator with capacities on multiple cable routes in the region

• Signed a landmark agreement with other operators to build and operate the Southeast Asia Japan Cable system (SJC), a new international submarine cable system with the highest capacity in the world.

• Launched Ethernet services in more than 25 global cities across Asia, Europe, North America and Australia. The launch of the Global Ethernet Service Portfolio by Bharti Airtel is part of its strategy to become a truly global service provider with wide range of product offerings.

• Unveiled its Global Wireless Service Portfolio with a network that will reach 50 countries which will offer MPLS, Ethernet, IP and IPLC services to global carriers.

Page 10: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

10

Mobile Services Telemedia Services Enterprise Services

Wireless Services

Page 11: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

11

Mobile Services Telemedia Services Enterprise Services

Sub Base : 545.05 mn→second largest market

Wireless Penetration: 46.37%→lowest in the world

HHI Index: very high→one of the most competitive market

Prepaid Base: 90%+→one of the highest in the world

Usage per sub per month:Minutes: 404

→one of the highestARPU: ~ US$ 5.02

→one of the lowestRate per minute: 1.2 cents

→ one of the lowest in the worldVAS: ~ 9%

→One of the lowest

Indian Wireless Market…KPIs

MUM

HP

DELHI

AP

CHN

MADHYA PRADESH`

TNKER

PB

DEL

UP(W)

MP

RAJUP(E)

KK

OR

HAR

JK

BH

WBGUJ

MAH

AS

NE

Metros

A Cat.

B Cat.

C Cat.

MUM

HP

DELHI

AP

CHN

MADHYA PRADESH`

TNKER

PB

DEL

UP(W)

MP

RAJUP(E)

KK

OR

HAR

JK

BH

WBGUJ

MAH

AS

NE

Metros

A Cat.

B Cat.

C Cat.

MUM

HP

DELHI

AP

CHN

MADHYA PRADESH`

TNKER

PB

DEL

UP(W)

MP

RAJUP(E)

KK

OR

HAR

JK

BH

WBGUJ

MAH

AS

NE

Metros

A Cat.

B Cat.

C Cat.

Metros

A Cat.

B Cat.

C Cat.

Kol

Note: (1) Subscriber numbers and wireless penetration numbers as at Jan 31, 2010 are as per TRAI release (2) Other indicators on the slide are based on Global Wireless Matrix 3Q09 dated 28th Sept 09 by Merrill Lynch, and reflective of Industry numbers.

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12

Mobile Services Telemedia Services Enterprise Services

Net Adds in Dec 19.9 Mn…higher ever S-curve triggered

Rapidly Growing Wireless Market

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

Fastest Growing Market in the World

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019-

100

200

300

400

500

600

-12345678910111213141516

Series2 Series1

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13

Mobile Services Telemedia Services Enterprise Services

Wireless Market Structure

• Airtel continuously consolidating its market leadership position despite intense competition• Airtel current monthly net adds at 2.9 million vs. 2.7 million a year ago• Airtel ranks 1& 2 in 17 circles in terms of number of subscribers• Over 60% of net adds coming from B&C circles (rural India)

Customer Market Share – CMS (%)

Airtel Continues to lead on Revenue Market Share

Subscriber Trends

96.60 94.14

70.0359.89 60.31

42.3633.33 30.30 30.80

18.15 23.82 27.5218.82

121.71

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

Airte

l

Rel

ianc

e

Voda

fone

BSN

L+M

TNL

Idea

Tata

Oth

ers

(mn)

Jan-10 Jan-09 Net adds during the year

22.3%

17.7%

12.8%

11.1%

17.3%

11.0%

7.8%6.5%

9.1%10.0%

14.3%

17.5%18.3%

24.4%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

23.0%

25.0%

Airte

l

Rel

ianc

e

Voda

fone

BSN

L+M

TNL

Idea

Tata

Oth

ers

CMS(Jan'10) CMS(Jan'09)

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14

Mobile Services Telemedia Services Enterprise Services

Company Highlights on Wireless Services

Page 15: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

15

Mobile Services Telemedia Services Enterprise Services15

Hello Tunes(Ring Back

Tones)

Portfolio Manager(Stock Tracker)

Blackberry

Airtel Live(Portal)

Life time validity product

Electronic Recharge /

Micro Prepaid

First mover advantage / Product innovations

focus on product innovations

Easy Music

Song Catcher

Call Home Service

Money Transfers

Music on Demand

Google search

M Commerce

iPhone

Page 16: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

16

Mobile Services Telemedia Services Enterprise Services

Performance Indicators - Financial

EBITDA (INR mn) & Margin (%)Revenues (INR mn)

79,61880,994

56,106

64,201

69,15072,843

79,39282,216 82,285

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

24,178

22,779

25,860

27,183

25,860

21,21822,009

24,963

20,000

21,000

22,000

23,000

24,000

25,000

26,000

27,000

28,000

Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

35.5 30.7 30.2 31.4 31.5 33.0 31.9 30.4

Page 17: Investor Presentation - Amazon S3...RAJ UP(E) KK OR HAR JK BH GUJ WB MAH AS NE Metros A Cat. B Cat. C Cat. Kol Note: (1) Subscriber numbers and wireless penetration numbers as at Jan

17

Mobile Services Telemedia Services Enterprise Services

Performance Indicators - OperationalCustomers & Market Share Prepaid/Postpaid

MoU/Sub/Month & MONARPU & RPM

110.5118.9

102.493.9

85.777.5

69.4

55.2 62.0

22.7%

23.5%

24.0%

24.6%24.2%

24.0%23.6% 23.7%

24.7%

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q31022.0%

23.0%

24.0%

25.0%

26.0%

27.0%

28.0%

Customers (Mn) CMS (%)

90.4%91.0% 91.6% 92.3% 92.9% 93.5%

94.2% 94.7% 95.2% 95.3%

97.5%96.3%

95.4%

95.4% 97.9%

98.4%99.6%

100.8%101.1%

100.4%

85%

90%

95%

100%

105%

Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

Prepaid Subs Prepaid Net Adds

0.520.56

0.79 0.76 0.72 0.580.63 0.64 0.630.66 230

252

278

305

324331350

357358366

-

0.25

0.50

0.75

1.00

1.25

1.50

Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310200

230

260

290

320

350

380

RPM (Rs.) ARPU (INR)

446450478485505534507474 526469

153,241

143,680

140,713

130,669

123,626

64,375

73,84089,058

105,217115,834

370

400

430

460

490

520

550

Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q3100

40,000

80,000

120,000

160,000

200,000

MoU/Sub (Min) Total minutes on Netw ork (Mn Min)

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18

Mobile Services Telemedia Services Enterprise Services

Current Proposed

Presence Operational in 22 circles of India on GSM technology.

Launched Operations in Srilanka

Looking for options primarily in emerging markets.

Population Coverage

84% of population covering 5078 census towns and over 4 lakh non-census

towns and villages.

• Poised to cover all census towns and majority of non-census towns and

villages

• Penetration wider and deeper into rural India

Network Rollout & Strength

• Hive off of passive infrastructure into a separate independent tower company

• Largest GSM (900/1800 Mhz) network in India comprising of over 102,190

network sites

• Strong partners: Ericsson; Nokia; Huawei; Alcatel Lucent

• Plans to get 3G spectrum.

Road map – Wireless Market

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19

Mobile Services Telemedia Services Enterprise Services

Current Proposed

Sales & Distribution

Network

• One of the widest distribution network.

• Following the FMCG company distribution model - Match Box

Approach

• Present in over a million PoP in India.

• Tie-up with IFFCO, an edge over others to reach out to Rural India

• Continue distribution expansion, especially in rural areas

Customer Service • Continuous improvement in CSAT scores

• Multi pronged service strategy in place

• Focus on service through service training and employee sensitivity

• Unified service backend for enhanced customer experience

Employee Engagement

• Significant improvement in employee engagement

• Awarded “Great Work Place 2009” by Gallup

• Sustain employee engagement

• Focus on employee capability development and leadership pipeline

Road map – Wireless Market

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20

Mobile Services Telemedia Services Enterprise Services

Current positioning and way forward…

BrandDistribution Churn lower than industrySpectrum Mix (900/1800 MHz)

Improving cost efficiencies

Lowest cost GSM network

Revenue size ($ 6 Bn)Revenue Market

Share

Increasing the usage through U&R driveWallet share

Driven by rural strategy

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

Leadership Positioning Growth strategy and plans

Revenue

Non financial vitals

Cost

New Revenue Streams

Net Adds

Maximizing usage

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21

Mobile Services Telemedia Services Enterprise Services

Telemedia Services

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22

Mobile Services Telemedia Services Enterprise 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 95 top cities of India.

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

3. Customer base: 3.0 million (end Jan2010)

4. Broadband (DSL with speeds>256 kbps) penetration at 41.5% of customer base.

5. Average ARPU for Quarter ended June’09 $ 20.6 per month.

6. Segment contributing to 9% of overall revenues of the company.

7. EBITDA margin of over 46.1%.

Broadband revolution to follow wireless revolution in India

SMB opportunity across ICT stream

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23

Mobile Services Telemedia Services Enterprise Services23

Telemedia Services

Business Units SMBs Homes

Products

• Voice• Data• Mobile Services• Applications•SaaS

• Broadband• Voice• IPTV

Goal One-Stop Shop for All Airtel Services and Solutions to SMBs

Dominant Broadband & Fixed Voice share of the affluent in targeted 95 cities

Strategies

• Data Products: Internet, MPLS etc.• Integrated Solutions to drive share of

wallet like hosted e mail, online desktop etc.

• Strategic Alliances• Indirect Channel to Drive Penetration

• Deeper & Not Wider: 95 Cities• Enhancing Broadband experience :

Speed on Demand, Games on Demand & VAS

• Vertical & Not Horizontal: Hi-Rise• Drive Triple Play• Drive Higher spends for better

customer experience

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24

Mobile Services Telemedia Services Enterprise Services24

Product Portfolio

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25

Mobile Services Telemedia Services Enterprise Services

Performance Indicators

Customers (overall & DSL) ARPU (INR)

Revenues (INR mn) EBITDA (INR Mn) & Margin (%)

7,307

7,641

7,988

8,4588,585 8,550 8,544 8,550

8,486

7,000

7,300

7,600

7,900

8,200

8,500

8,800

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

3,944

3,667

3,463

3,6143,531

3,696

3,3673,344

3,000.0

3,200.0

3,400.0

3,600.0

3,800.0

4,000.0

Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

43.8 42.2 43.6 41.7 42.1 40.5 42.9 46.1

2,9892,928

2,8282,726

2,2832,394 2,509

2,619

2,1781,2411,1871,138

1,072992922853795751

1,250

1,500

1,750

2,000

2,250

2,500

2,750

3,000

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q3100

2,000

Fixed Line Customers ('000) DSL Cust. ('000)

1,140 1,137 1,138

1,071

989964

1,027

1,098

1,147

800

850

900

950

1,000

1,050

1,100

1,150

1,200

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

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26

Mobile Services Telemedia Services Enterprise Services

Enterprise Services

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27

Mobile Services Telemedia Services 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 30 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 118,337 Route kms of optical fiber, over 4,150 MPLS and SDH POPs

Access network (terrestrial) in 95 cities, Wimax network in 143 cities, and over 1,500 local POIs

International network with 225,000 Route Kms, connecting over 50 countries

Key Performance Indicators (Q3 ‘10)

NLD Minutes Carried: 13.9 Billion ; ILD Minutes Carried: 3.1 Billion

Revenue: Rs.20,546 Million (21 % Segment Contribution Share)

EBITDA: Rs. 10,035 Million (48.8% EBITA Margin)

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Mobile Services Telemedia Services Enterprise Services

Highlights

# 1 Operator in India in terms of:

NLD Revenue (Voice & Data)

ILD Revenue (Voice & Data)

Corporate Fixed Line Operator

Corporate Internet Provider

Corporate Mobility Provider

VSAT Provider (installed base)

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29

Mobile Services Telemedia Services Enterprise Services

Domestic Network

Fiber commissioned for over 118,337

Kms

Transmission Network (14,000 SDH

nodes)

High resilience via ring structure &

automatic switching

Tier-1 MPLS network (across 120

Cities)

Internet backbone capacity > 60 Gbps

Proactive 24 x 7 x 365 NOC

304 LDCAs & 1680 SDCAs covered

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Mobile Services Telemedia Services Enterprise Services

International Network 30

InfrastructureInterconnects with about 400 International Carriers

NGN with 4 Global Media Gateways

100% Ownership of i2i Cable system and landing station

Consortium ownership of Sea Me We 4 cable and landing station

IRU capacity on TAT-14, Apollo, EAC, APCN2, JUCN, etc.

Consortium partner in major cable systems under construction: IMEWE, EIG, AAG, Unity, EASSy

CoverageTDM and IP Voice traffic termination in 230+ countries

Major International PoPs for carrier interconnect at Los Angeles, New York, London, Hong Kong & Singapore

Far-East Connect Platform to cater to high growth markets across Asia and the Pacific

Extensive MPLS Coverage across the globe - more than 70 countries, 700+ PoPs via carrier-grade NNI’s

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Mobile Services Telemedia Services Enterprise Services

What We Offer

• Wholesale Voice - NLD Voice Carriage Services- International & Domestic Toll Free services- International Calling Services- Signaling Based Services- International Voice Carriage Services- Global Wholesale Voice (Hubbing & Transit)- Roaming Hub - Prepaid Roaming

• Wholesale Data- Transport Services- Access Services – Terrestrial/WiMax in India- Managed Network Services- Internet Access Services- MPLS, Multicast, Managed MPLS Services- Hosting & Services for Carrier PoPs - Carrier Outsourcing & Content Distribution

• Retail Voice - Mobility Solutions

- Corporate Mobile Ser Voice Services- Mobile Data (Blackberry, Data card, applications)- SMS-Based Tools & Bulk SMS Solutions- Workforce Mobility Solutions (Vehicle Tracking, etc.)

- Fixed line Solutions- Fixed Line/ PRI/ Centrex Services- Domestic Toll Free Service- Hosted Contact Centre Services- Premium International Toll Free Service

• Retail Data- Internet Services- Managed MPLS Services- Domestic and Int’l Private Leased Lines- Data Center & Managed Services- Network Integration & Professional Services- Satellite Services- Audio and Video Conferencing Solutions

31

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Mobile Services Telemedia Services Enterprise Services

ISO 27001: 2005Certified on Pan India basis.Information Management Security System including policies, procedures, physical, legal and technical security controls forming part of the organization’s overall risk management processes.

TL 9000/ ISO9001-2000Certified on Pan India basis.Quality Management System (QMS) specifically addressing the needs in a telecommunication organization.

CISCO Managed Services CertificationsTier-1 Certification for CISCO managed servicesFirst player in Asia Pac to obtain the Tier 1 (highest level certification)Telepresence Certification

Certifications

Strictly For Private Circulation

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Mobile Services Telemedia Services Enterprise Services

Performance Indicators – Enterprise Services

Voice Minutes on Network

Revenues (INR mn) EBITDA (INR mn) & Margin (%)

14,636

16,340

19,572

21,874 21,808 21,62820,982

21,331

20,546

14,000

15,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

10,03510,2469,9209,799

9,3698,655

6,179

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

9,000.0

10,000.0

11,000.0

Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

37.8 44.2 42.8 44.9 45.9 48.8 51.7 48.8

9,39810,322

11,349 11,609 11,690 11,78112,417

3,181 3,100

7,898

13,944

2,8692,7722,6032,2842,0481,8501,591

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

NLD Minutes (mn) ILD Minutes (mn)

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Mobile Services Telemedia Services Enterprise Services

Passive Infrastructure Services

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Mobile Services Telemedia Services Enterprise Services

A snapshotBharti Infratel operates in 11 circles.Indus Tower operates in 16 circles.Standard Master Services Agreement with competitive rates already in place.Key focus areas:

To increase sharing factor (tenancy) from current levels of 1.57 for Infratel and 1.66 for Indus.Provide energy optimization solutions and other network management services.Evaluate other revenue streams.To reduce sharing revenue per sharing operator through increased sharing factor and efficiencies

Key performance Indicators (Infratel):Total Towers: 29,806 (nos)Sharing Factor: 1.57Sharing Revenue per sharing operator per month at Rs. 38,107.EBITDA margin: 46.1%

Key performance Indicators (Indus):Total Towers: 102,696 (nos)Sharing Factor: 1.66

Aim to be the preferred choice of vendor for all existing and new operators

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Mobile Services Telemedia Services Enterprise Services

29,806

59,966

29,11228,07827,548

61,35558,01353,083

1.571.49

1.431.34

1.341.26

1.221.22

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Q408 Q109 Q209 Q309 Q409 Q1 10 Q2 10 Q3 101.00

1.10

1.20

1.30

1.40

1.50

1.60

No of tow ers Sharing Factor

6,023

10,563

11,98312,702

7,241

8,0208,586

9,267

5,000

7,000

9,000

11,000

13,000

Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310

Towers (nos) & Sharing Factor Sharing Revenue per Sharing Operator per Month (Rs)

Performance Indicators - Bharti InfratelRevenues (INR mn) EBITDA (INR mn) & Margin (%)

Note: Figures for revenue, EBITDA and number of towers for quarters ending 4Q09 and beyond have taken the impact of 35,066 towers transferred to Indus

38,10736,69636,420

33,58631,48831,893

30,01732,177

25,000

29,000

33,000

37,000

41,000

Q408 Q109 Q209 Q309 Q409 Q1 10 Q2 10 Q3 10

Sharing Revenue per Sharing Operator per month

4,020

2,236

3,870 3,9924,257

2,903

3,557

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Q408 Q109 Q209 Q309 Q409 Q110 Q210

36.6 33.3 33.5 40.1 44.4 46.8 46.1

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Mobile Services Telemedia Services Enterprise Services

Indus TowersRoof Top Tower

Ground Based TowerFirst of its kind deal…Bharti (42%), Voda (42%) & Idea (16%)

Largest independent tower company in the world

~ 100,000 towers under its management

Benefits from captive tenancy as well as external tenants

Incremental investment in towers to come from new operators / subscriber growth / 3G

95,154

97,925

102,696

100,728

1.48

1.55

1.61

1.66

93,000

95,000

97,000

99,000

101,000

103,000

Q409 Q110 Q210 Q3101.40

1.50

1.60

1.70

No of towers Sharing Factor

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Mobile Services Telemedia Services Enterprise Services

Recent Honours

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Mobile Services Telemedia Services Enterprise Services

Rated as the ‘Strongest Brand’in the Economic Times- Brand

Finance ‘Brand Power (the only corporate brand to be awarded the

AAA rating)

Rated as India's Best Enterprise Connectivity Provider for 2009 at the

annual Users’ Choice Awards instituted by PC Quest.

Bharti Airtel – Leadership in business Recent Honours

Bharti Airtel and IFFCO JV bagged the “Best Content

Service” award and Gujrat E-Gram project executed by

Bharti Airtel won “Best Project Management” award at the world Communications

Awards at London

Sunil Bharti Mittal, Chairman & Group CEO•Honorary degree of Doctor of Laws by University of Leeds (UK) in 2009•Tenth Lal Bahadur Shastri National Award by the Hon’ble President of India in 2009 Akhil Gupta, Deputy Group CEO & MD•CA Business Achiever Award by Institute of Chartered Accountants of India. Sarvjit Dhillon, Group Director• Best Performing CFO in Telecom sector by CNBC-TV18 in Mar’09

Best Cellular Service Provider and Best VSAT &

NLD player Service Provider at the 2009 Voice

& Data 100 Awards

Adjudged Wireless Service Provider of the Year 2009 -Frost & Sullivan Asia Pacific

ICT Awards( in recognition of innovation, vision ,

strategy and profitability)

Best Global Wholesale Carrier for 2009 at the

Telecoms World Awards Middle East.

Voted as the India’s Most Innovative company in a survey conducted by Wall

Street Journal

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DisclaimerThe 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, 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 conditions in India. It is cautioned that the foregoing list is not exhaustive

This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision.

Investor Relations :- http://www.bhartiairtel.inFor any queries, write to: [email protected]

“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 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.”