Investor Presentation Sept10

8/8/2019 Investor Presentation Sept10

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Investor Presentation

Bharti Airtel Limited





3

Mobile Services Telemedia Services Enterprise Services DTH

The Company...Bharti Airtel – An Integrated Telco

Wireless Services

2G

3GRural Market

Telemedia Services

Fixed LineBroadbandIPTV

Enterprise ServicesCarriersCorporates

Passive Infrastructure Services

InfratelIndus

DTH

Pay per view / HD

Interactive Services including

Gaming

Fully integrated telecom player offering end to end solutions

and entering new geographies



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Net Adds in Jul 16.9 Mn…lessor than over last 2 months average run rate of 17.1 Mn S-curve triggered

Rapidly Growing Indian Wireless Market

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

India - 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-

200

400

600

800

1,000

-

3

6

9

12

15

18

21

Closing Subscribers Net Adds



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Wireless Market Structure in India

• Airtel continuously consolidating its market leadership position despite intense competition

• Airtel current monthly net adds at 3.0 million vs. 2.8 million a year ago• Airtel ranks 1& 2 in 17 circles in terms of number of subscribers• Over 59% of net adds coming from B&C circles (rural India)

Airtel Continues to lead on Revenue Market Share

Subscriber Trends Customer Market Share – CMS (%)

Note: Based on subscriber data for India as on July 31th 2010 as per TRAI press release.

139.2

113.3 111.5

79.070.7

74.9

63.8

34.0 31.3 32.8

18.426.6

35.5 32.1

-

20

40

60

80

100

120

140

160

A i r t e l

R e l i a n c e

V o

d a f o

n e

B S N L + M

T N L

I d e a

T

a t a

O t h e r s

Jul-10 Jul-09 Net adds during the year

21.3%

17.4%

12.1% 11.5%

9.8%10.8%

17.1%

23.8%

18.6%

17.8%

13.7%

10.0%8.9%

7.2%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%19.0%

21.0%

23.0%

25.0%

A i r t e l

R e l i a n c e

V o d a

f o n e

B S N L + M T N L

I d e a

T a

t a

O t h e r s

CMS(Jul'10) CMS(Jul'09)



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Customer Base : 36.36 Mn

Performace Indicators:

Revenue: 9,583 Mn

EBITDA: 2,635 Mn

Prepaid Base: 99.3% → one of the highest in the world

Usage per sub per month: 103 Minutes → one of the lowest

ARPU: ~ US$ 7.4

Rate per minute: ~ US¢ 7.2 → one of the highest

VAS: ~ 7.9% → One of the lowest

Another Growth Engine - Africa



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Emerging Market Characteristics…

Telecom Penetration

Population (mm)

GDP Size, (PPP adjusted)

GDP Growth (Real) %

Broadband Penetration

India * Africa **

8.6%

1200 mm

US$ 3,530 bn

58.17% (688.38 mn telecom subs)

0.83% (9.77 mn)

465mm

3.1%

US$ 6,90 bn

NA

*Telecom and Broadband penetration for India as on July 31 th 2010 as per TRAI press release.

** Data pertaining to the 15 African countries where Zain Africa has operations (Source: IMF, Global Insight , Economist Intelligence Unit,CIA World Factbook, World Resource Institute.)

32%



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Bharti – a growth journey

‘ DELHI

1996 2001 2003 2004 2010

No. of circles Today1 5 15 22 19 countries



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Latest Results – FY10/1Q’11

Key operating and financial metrics

21.3%29.0%ROE

18.4%24.4%ROCE

13.7%21.5%Net Profit Margin

36.9%40.3%EBITDA Margin

$ 361 mn$ 1,989 mnNet Income

$ 857 mn$ 3,710 mnCash Profit

$ 947 mn$ 3,714 mnEBITDA

$ 2,625 mn$ 9,271 mnRevenue

183.4 mn137.0 mnCustomers

Q1FY11*FY 10

Continued Strong Performance

Wireless Customer market share leadership inIndia at 21.5%.

Total minutes on network carried in Q1 – 206.2 bn[Over 800 bn minutes per annum]

Total employee strength – 24,843 (Includes 6,600Africa employees)

Balance sheet strength:

Assets – $ 31 billionNet debt – $ 12.9 billion

Net debt to EBITDA (Annualised)– 2.9 Times

Continues to be FCF positive on a standalone basis

Note: (1) Wireless customer market share of India. (2) The approved dividend is for the shareholders in India.

* Includes 23 days of Airtel Africa



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Wireless Services - India



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Performance Indicators - Operational

Customers & Revenue Market Share Prepaid/Postpaid

MoU/Sub/Month & MON ARPU & RPM

0.450.480.600.58 0.53

215220230252278

-

0.2

0.4

0.6

0.8

Q110 Q210 Q310 Q410 Q111

0

100

200

300

RPM (Rs.) ARPU ( INR)

480468446450478

195,197172,797

153,241143,680140,713

420440

460

480

500

Q110 Q210 Q310 Q410 Q111

0

100,000

200,000

300,000

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

96.0%95.8%95.3%95.2%94.7%94.2%93.5%92.9%92.3%

99.2%101.7%97.5%100.4%

101.1%

100.8%97.9%98.4%

99.6%

85%

90 %

95%

100%

105%

Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 1Q11

Prepaid Subs Prepaid Net A dds

RMS % is based on internal computations. MON: Minutes on Network

136.6127.6118.9102.4 110.5

31.2%

32.7%32.1%

31.2%30.6%

0

50

100

150

Q110 Q210 Q310 Q410 Q111

29%

30%

31%

32%

33%

Customers (mn) RMS (%)



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Current positioning and way forward…

Brand

Distribution

Churn lower than industry

Spectrum Mix (900/1800 MHz)

Improving cost efficiencies

Lowest cost GSM network

Revenue size

(>$ 9 Bn)

Revenue MarketShare

Increasing the usage through U&R drive

Wallet share

Driven by rural strategy

Changing face ofgrowth 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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Telemedia Services - India



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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 Indicators

1. Voice (wire-line) and Data (DSL) Presence in 88 top cities of India.

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

3. Customer base: 3.18 million (end July2010)

4. Broadband (DSL with speeds>256 kbps) penetration at 42.6% of customer base.

5. Average ARPU for Quarter ended Jun’10 $ 20.6 per month.

6. Segment contributing to 7% of overall revenues of the company.

7. EBITDA margin of over 44.0%.

Broadband revolution to follow wireless revolution in India

SMB opportunity across ICT stream



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Enterprise Services - India



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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 international telecommunications carriers, as well as ILD and NLD carriage for Airtel’s own customers

Extensive national and international infrastructure

Pan-India network with 129,244 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 (Q1 ‘11)

NLD Minutes Carried: 17.3 Billion ; ILD Minutes Carried: 3.0 Billion

Revenue: Rs.10,186 Million (8 % Segment Contribution Share)

EBITDA: Rs. 2,497 Million (24.5% EBITA Margin)



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Passive Infrastructure Services - India



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A snapshot

Bharti Infratel operates in 11 circles.

Indus Tower operates in 15 circles.

Between the two, they have 136,000 towers – world’s largest tower portfolio.

Key performance Indicators (Infratel):

Total Towers: 31,196 (nos)Sharing Factor: 1.65 Sharing Revenue per sharing operator per month at Rs. 36,290.EBITDA margin: 35.5%

Key performance Indicators (Indus): Total Towers: 104,901 (nos)Sharing Factor: 1.75 Sharing Revenue per sharing operator per month at Rs. 30,379.

Key focus areas: To increase sharing factor (tenancy) from current levels of 1.65 for Infratel and 1.75 for Indus.Provide energy optimization solutions and other network management services.Evaluate other revenue streams.

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



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Summary



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Performance dashboard - 3 line graph

Productivity Indicators = growing revenues + cost efficiencies + capital productivity

112,725

107,491

103,053103,785104,143

38.1% 38.4% 39.9% 40.9% 40.6%

69%66%

63% 63% 65%

80,000

85,000

90,000

95,000

100,000

105,000

110,000

115,000

Q110 Q210 Q310 Q410 Q111

G r o s s

R e v e n u e

( U

S D M n

10%

20%

30%

40%

50%

60%

70%

80%

Gross Revenue (USD Mn) (LHS)

Opex to Gross Rev (RHS)

Revenue (annualized) to Gross Cummulative Capex (RHS)

Note: (1) The graph shown above is based on Bharti Airtel (India & South Asia), excluding Bharti Airtel African Operations as it is for less than one month in this quarter



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Segment contribution…Rev, EBITDA and Investment

Note: (1) Revenue and EBITDA is gross of inter segment eliminations.(2) Investments are on gross basis.

REVENUE

80%

7%

8%

17% 2%

EBITDA

78%9%

6%

16%-7%

INVESTMENTS

89%

9%3%

17% 2%

Mobile Services Telemedia Services Enterprise ServicesInfratel Services Others



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3 rd LARGEST wireless operator in the world 1

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) 3 rd 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

5 th LARGEST INTEGRATED telecom operator in the world



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Recent Honours



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Bharti Airtel – Leadership in business Recent Honours

NDTV Profit Business Leadership Awards 2010Top 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 awardWon 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)

Sunil Bharti Mittal - Global Telecom Leader - Voice & Data magazine

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 operatorBest Internet and Broadband operatorBest Enterprise services



Investor Presentation Sept10

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