IR-PPT-Feb-3-Feb

8/7/2019 IR-PPT-Feb-3-Feb

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Investor Presentation

February 2011


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The Company...Bharti airtel An Integrated Telco

Wireless Services

2G

3G Rural Market

Telemedia Services

Enterprise Services

Carriers

Corporates

Passive Infrastructure Services

Infratel

Fixed Line Broadband

IPTV

n us

DTH

Pay per view / HD

Interactive Services includingGaming

Fully integrated telecom player offering end to end solutions

and entering new geographies


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The CompanyBharti 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


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Revenue & Profitability trends

4,103

5,987

8,1888,776

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

3,3603,550

0

1,000

2,000

3,000

4,000

5,000

2007 2008 2009 2010

(In$Mn)

Years

39%

CAGR

Cash rofit from o erations Net profit

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$Mn)

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 perUSGAAP.Theabove numbers are in Mn USD re-stated at 31stMar 10 exchange rate..Exchange rate as of31st Mar 10 : Rs 45.14


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Latest Results 3Q11

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%

Wireless CMS 20.3%

Wireless RMS 30.6%

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%

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 AfricaExchange rate as of 31StDec 2010: 44.81

**RMS as per September quarter as Dec quarter nos are not yet released by TRAI


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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

otalRevenue(Rs

.mn

50%

60%

70%

80%

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

The above chart is for Airtel Consolidated including Africa

103,053107,491

100,000

110,000

Q310 Q410 Q111 Q211 Q311

30%

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


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Wireless Services


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Indian Market

Overall Telecom Market Wireless Market

Population 1.2 billion

Relatively large youth population

Telecom penetration c.64.34%

(~764.76 mn telecom subs)

Sub number should go upto 1 Billion by 2015

Sub Base c.729 mn

Wireless Penetration c.61.4%

Operational metrics per month

Usage per user 449 min

Broadband penetration 0.89% (10.71 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 Nov 30, 2010 are as per TRAI (2)

Other indicators on the slide are based on Global Wireless Matrix 3Q10 dated 24th September 10 byMerrill Lynch, and reflective of Industry numbers.


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Rapidly Growing Indian Wireless Market

Net Adds in Oct 22.9 Mngreater than over last 3

months average run rate of 18.1 MnS-curve triggered

50%

60%

70%

80%

90%

500

600

700

800

1416182022

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 20012003 2005 2007 2009 2011 2013 2015 2017 2019

-

100

200

300

400

No

v-03

Ma

y-04

No

v-04

Ma

y-05

No

v-05

Ma

y-06

No

v-06

Ma

y-07

No

v-07

Ma

y-08

No

v-08

Ma

y-09

No

v-09

Ma

y-10

No

v-10

(m

n)

-246810


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Wireless Market Structure in India

Subscriber Trends Customer Market Share CMS (%)

149

122 121

8979 83

86

116

91 89

6656 54

3533 31 3324 23

29

51

20

40

60

80

100

120

140

160

(mn)

20.5%

16.8%

12.2%11.3%

16.6%

10.8%11.8%

22.9%

18.0%17.5%

13.0%

11.0%10.7%

6.9%7%

9%

11%

13%

15%17%

19%

21%

23%

25%

Airtel continuously consolidating its market leadership position despite intense competition Airtel current monthly net adds at 3.1 million vs. 2.8 million a year ago

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

Over 62% 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 November 30 2010 as per TRAI press release.

-

Airtel

Reliance

Vodafon

e

BSNL+MT

NL

Idea

Ta

ta

Othe

rs

No v-10

Airtel

Reliance

Vodafo

ne

BSNL+MTNL

Idea

T

ata

Others

CMS( Nov'10) CMS( Nov'09)


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AirtelPerformance 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

Pr epai d S ubs P repai d Net A dds

152.5143.3136.6

127.6118.9

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 %

Cust omers (mn) CM S (%)

ARPU & RPM MoU/Sub/Month & MON

44.1944.4444.8346.9851.69

198202215

22 023 0

-

10

20

30

40

50

60

Q310 Q410 Q111 Q211 Q311

0

50

100

150

20 0

250

30 0

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

MoU/Sub (Min) Total minutes on Network (Mn Min)


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Telemedia Services


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A Snapshot

Largest private operator having presence in the voice , broadband , IPTV and data.

Focus on SMB segment & Broadband at Homes

Key Performance Indicators1. Voice (wire-line) and Data (DSL) Presence in 87 top cities of India.

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

end Nov 2010. .

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

5. Average ARPU for Quarter ended Jun10 $ 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


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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 internationaltelecommunications carriers, as well as ILD and NLD carriage for Airtels own customers

Extensive national and international infrastructure

Pan-India network with 134 026Route kms o o tical iber over4 150MPLS and SDH POPs

Access network (terrestrial) in 88cities, Wimax network in 143 cities, and over1,500local 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)


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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 ower s S har ing Fa ct 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 ower s S har ing Fac t 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

Sharing Revenue per Shari ng Operat or per month

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 Operator per month


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Transaction Rationale

Clean /

certainty

of transaction

Shareholding and

Management

Control

Brand Airtel

100% Cash Transaction

Focus on Core

Middle East OperatorsGlobal

Stature

Emerging Market

Characteristics

Strong Platform

for Future Expansion

ManageableDeal 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


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Differences between the two markets

Mobile Penetration

Business Model Low usage, high pricing model

40%

High usage, low pricing model

64%

Average Number ofCompetitors

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.


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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)

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


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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.


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Recent Honors


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Bharti airtel Leadership in business Recent Honours

NDTV Profit Business Leadership Awards 2010

Top Telecom Company

Sunil Bharti Mittal - Business Innovator of the Year

Indias 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

Powerful Brand - Economic Times (the only corporate brand to be awarded the AAA rating)

Bharti Airtel rated as Indias 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


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thank you

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