Investor Presentation

Bharti airtel limitedBharti airtel limited

April 2011

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, 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 andActual 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

“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.”

Investor Relations :- http://www.airtel.in

For any queries, write to: ir@bharti.in

The Company...Bharti airtel – An Integrated Telco

� Wireless Services

� 2G

� 3G

� Rural Market

� Telemedia Services

� Enterprise Services

� Carriers

� Corporates

� Passive Infrastructure Services

� Infratel

� Indus� Fixed Line

� Broadband

� IPTV

� Indus

� DTH

� 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

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

1996 2010

~ 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

4,103

5,987

8,188 8,776

0

2,000

4,000

6,000

8,000

10,000

2007 2008 2009 2010

(In $

Mn)

Years

Total revenues

36%

CAGR

EBITDA

1,651

2,519

3,360 3,550

0

1,000

2,000

3,000

4,000

5,000

2007 2008 2009 2010

(In

$ M

n)

Years

39%

CAGR

Cash profit from operations Net profitCash profit from operations

1,619

2,467

3,103

3,679

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2007 2008 2009 2010

(In

$ M

n)

Years

42%

CAGR

943

1,484

1,876

2,017

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010

(In $

Mn)

Years

42%

CAGR

� 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

FY 10 (in Mn)

Customers 137.0

Revenue $ 9,271

EBITDA $ 3,714

Positioning in the world & in India

� 3rd LARGEST wireless operator in the world (1)

� LARGEST private INTEGRATED telecom company in

India

� 5th LARGEST INTEGRATED telecom operator in the

EBITDA $ 3,714

Cash Profit $ 3,710

Net Income $ 1,989

EBITDA Margin (%) 40.3*

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.

world

� LARGEST operator in NLD, ILD and VSAT business

� LARGEST TELECOM company listed on Indian Stock

Exchanges

Latest Results – 3Q’11

Key operating and financial metrics Continued Strong Performance

Q3 FY 11* Y-on-Y

Customers 207.8 mn 65.9.%

Revenue $ 3,516 mn 52.9%

EBITDA $ 1,112 mn 22.0%

� Wireless CMS 20.3%

� Wireless RMS 31.2%

� Total MOU carried in Qtr 227.3 bn

� Balance sheet strength:EBITDA $ 1,112 mn 22.0%

Cash Profit $ 945 mn 3.1%

Net Income $ 291 mn -40.6%

EBITDA Margin 33.8%

ROCE 11.2%

� Balance sheet strength:

� Assets $ 32.3 bn

� Net debt $ 13.4 bn

� Net debt to EBITDA 2.9 Times

(annualized)

� Continues to be FCF positive on at South Asia

Level.

•Includes full quarter numbers for Africa

•Exchange rate as of 31St Dec 2010: 44.81

•**RMS as per December quarter released by TRAI

Performance dashboard - 3 line graph

122,308

152,150157,560

39.9%41.4% 42.7%

45.7% 46.9%

63% 63%

74%

72%71%

120,000

130,000

140,000

150,000

160,000

To

tal

Re

ve

nu

e (

Rs

.mn

)

40%

50%

60%

70%

80%

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

The above chart is for Airtel Consolidated including Africa

103,053

107,491100,000

110,000

Q310 Q410 Q111 Q211 Q311

To

tal

Re

ve

nu

e (

Rs

.mn

)

30%

40%

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

Wireless Services

Indian Market

Overall Telecom Market Wireless Market

� Population 1.2 billion

→ Relatively large youth population

� Telecom penetration c.69.29%

(~826.25 mn telecom subs)

Sub number should go upto 1 Billion by 2015

� Sub Base c.791 mn

� Wireless Penetration c.66.34%

� Operational metrics per month

� Usage per user 449 min

� ARPU ~ US$ 4.4

� Broadband penetration 0.96% (11.47 mn)

→ Govt. target to reach 20 mn. Broadband subs by 2010

� ARPU ~ US$ 4.4

� Rate per minute US$ 0.01

� VAS ~ 13.8%

Lot of opportunity ahead….

Note: (1) Subscriber numbers and wireless penetration numbers as on Feb 28, 2011 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 Feb 20.2 Mn…lesser than over last 3

months average run rate of 21.5 MnS-curve triggered

50%

60%

70%

80%

90%

500

600

700

800

(mn

) 14

16

18

20

22

24

26

Closing Subscribers Net Adds

India - Fastest Growing Market in the World

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

0%

10%

20%

30%

40%

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

-

100

200

300

400

No

v-0

3

Ma

y-0

4

No

v-0

4

Ma

y-0

5

No

v-0

5

Ma

y-0

6

No

v-0

6

Ma

y-0

7

No

v-0

7

Ma

y-0

8

No

v-0

8

Ma

y-0

9

No

v-0

9

Ma

y-1

0

No

v-1

0

(mn

)

-

2

4

6

8

10

12

14

Wireless Market Structure in India

Subscriber Trends Customer Market Share – CMS (%)

20.1%

16.7%

12.1%11.1%

16.5%

11.0%

12.5%

22.1%

17.6%17.2%

12.7%

11.0% 11.2%

8.1%

5%

7%

9%

11%

13%

15%

17%

19%

21%

23%

25%

159

132 131

9687 88

99

125

99 97

7262 63

4534 33 34

24 25 24

54

-

20

40

60

80

100

120

140

160

180

(mn)

• Airtel continuously consolidating its market leadership position despite intense competition

• Airtel current monthly net adds at 3.2 million vs. 2.9 million a year ago

• Airtel ranks 1& 2 in 16 circles in terms of number of subscribers

• Over 51% 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 February 28 2011 as per TRAI press release.

5%

Airte

l

Relia

nce

Vodafo

ne

BS

NL+M

TN

L

Idea

Tata

Oth

ers

CMS(Feb'11) CMS(Feb'10)

-

Airte

l

Relia

nce

Vodafo

ne

BS

NL+M

TN

L

Idea

Tata

Oth

ers

Feb-11 Feb-10 Net adds during the year

Airtel…Performance Indicators (Operational)

Customers & Market Share Prepaid/Postpaid

96.2%96.1%96.0%95.8%95.3%

98.2%97.5%

99.2%

101.7%

97.5%

85%

90%

95%

100%

105%

Q310 Q410 Q111 Q211 Q311

Prepaid Subs Prepaid Net Adds

152.5143.3136.6127.6118.9

20.3%20.8%

21.5%21.8%22.7%

0

40

80

120

160

Q310 Q410 Q111 Q211 Q311

8%

12%

16%

20%

24%

Customers (mn) CM S (%)

ARPU & RPM MoU/Sub/Month & MON

44.1944.4444.8346.9851.69

198202215

220230

-

10

20

30

40

50

60

Q310 Q410 Q111 Q211 Q311

0

50

100

150

200

250

300

RPM (Paise) ARPU (INR)

446 468 480 454 449

153,241

174,746195,197

196,196

205,018

420

430

440

450

460

470

480

490

Q310 Q410 Q111 Q211 Q311

80,000

130,000

180,000

230,000

280,000

M oU/Sub (M in) Total minutes on Network (M n M in)

Current positioning and way forward…

Leadership Positioning Growth strategy and plans

RevenueRevenue

� Revenue size

(>$ 9 Bn)

� Revenue Market Share

New Revenue Streams

� Changing face of growth

through M-Com, M-

entertainment & 3G

Cost

Non financial vitals

� Brand

� Distribution

� Churn lower than industry

� Spectrum Mix (900/1800 MHz)

� Improving cost efficiencies

� Lowest cost GSM networkMaximizing

usage

Net Adds

� Increasing the usage through U&R drive

� Wallet share

� Driven by rural strategy

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: 3.3 million (end Feb 2011)3. Customer base: 3.3 million (end Feb 2011)

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

5. Average ARPU for Quarter ended Dec’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� 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 InfraPassive Infra

Africa

Financial Performance – Passive Infra

Revenue EBITDA

431438

471

490

450

500 189

175

155160

160

180

200 34.0 37.1 35.5 37.1 38.6

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 .

394

300

350

400

Q310 Q410 Q111 Q211 Q311

134

100

120

140

Q310 Q410 Q111 Q211 Q311

Operational Performance – Passive Infra

Towers (nos) & Sharing Factor Towers (nos) & Sharing Factor

Infratel Indus

29,80630,568

31,19631,831

32,424

1.57

1.621.65

1.651.68

28,000

29,000

30,000

31,000

32,000

33,000

Q3 10 Q410 Q111 Q211 Q311

1.40

1.50

1.60

1.70

No of t owers Shar ing Fact or

107,789106,438

104,901102,938102,696

1.801.78

1.751.71

1.66

97,000

99,000

101,000

103,000

105,000

107,000

109,000

Q310 Q410 Q111 Q211 Q311

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

No of t owers Sharing Fact or

Aims to enhance the tenancy ratio & be the preferred choice of vendor for all existing

and new operators

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

37,85938,041

36,29036,87838,107

25,000

29,000

33,000

37,000

41,000

Q3 10 Q410 Q111 Q211 Q311

Shar ing Revenue per Sharing Operat or per mont h

30,84731,38930,37929,674

28,333

15,000

20,000

25,000

30,000

35,000

Q310 Q410 Q111 Q211 Q311

Sharing Revenue per Sharing Operat or per mont h

Transaction Rationale

Clean /

certainty

of transaction

Shareholding and

Management

Control

����

Brand – ‘Airtel’����

����

100% Cash Transaction ����

Focus on Core

Middle East Operators����Global

Stature

Emerging Market

Characteristics

Strong Platform

for Future Expansion

Manageable

Deal Size����

Diversification of

India Risk����

Avoid Greenfield����

Speed in

Transaction ����

Repayment of Debt ����

Significant

Synergies

Low Competitive

Intensity

The proposed transaction meets the objectives of Airtel with long term strategic

benefits and creates tremendous shareholder value

Differences between the two markets

Mobile Penetration

Business Model Low usage, high pricing model

40%

High usage, low pricing model

66%

Average Number of Competitors

3-510-12

India Africa(1)

Minutes of Usage

ARPU (US$)

ARPM (US cents ¢)

~120

~$7

6¢

~449

~$4

1¢

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

Airtel Africa

450mnTotal Africa:

1,025mn

450575

Airtel Africa Footprint Other African Countries

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

Penetration, 2009

Leading African Operators

• Large addressable population with low tele-

density

• Leading telecom operations acquired through

Zain Africa

• Strong competitive positioning39

22 19 15

42

77

Subscribers, 2009 (mn)

Source: Zain Filings, WCIS.

Telecom Operators by Subs in Africa

Penetration, 2009

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

� ‘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

� Most Admired company

� Best National Mobile operator

� Best Internet and Broadband operator

� Best Enterprise services

thank you