Investor Presentation

Bharti airtel limited

February2012

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 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.

Investor Relations :- http://www.airtel.in For any queries, write to: [email protected]

The Company...Bharti airtel An Integrated Telco

Wireless Services 2G 3G Rural Market Telemedia Services Fixed Line Broadband B db d IPTV

Enterprise Services Carriers Corporates Passive Infrastructure Services Infratel Indus DTH Pay per view / HD Interactive Services including Gaming

Fully integrated telecom player offering end to end solutions and entering new geographies

The CompanyBharti airtel

No. of circles (India) 15 Today Countries 19

22

1996

2001

2003

2004

2010

Fully integrated telecom player offering end to end solutions and entering new geographies

Growth trajectory reflected in the numbers

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

2011
Largest integrated private telecom operator ~ 221 mn ~ USD 13 b bn ~ USD 4 bn ~ USD 4 bn ~ USD 30 bn

Continuing on our journey of Value Creation

Note:1)2011financialsareasperFY2011results.2)Exchangerate:Financialsasof31st Mar11:Rs44.65

Financials & Positioning

Key financial metrics

FY 11 (in Mn) Customers Revenue EBITDA Cash Profit Net Income EBITDA Margin (%) ROCE (%) 220.9

Positioning in the world & in India

3rdLARGESTincountrywirelessoperatorinthe 3rd LARGEST in country wireless operator in the world(1) LARGESTprivateINTEGRATEDtelecomcompanyin

$ 13,319 $ 4,472 $ 3 983 3,983 $ 1,354 34.6 10.8

India 5thLARGESTMobiletelecomoperatorintheworld AmongstthelargestprovidersofPassive infrastructure(bytowers)(2)

Note:FY11numbersareasperIFRSasperMarch11quarterlyreport.ExchangerateforReto$conversion:44.65. (1)3rd largestwirelessoperatorintheworldreferstoincountry(singlecountry)operatorbasedonthenumberof subscribers.5th largestmobileoperatoronbasisofnumberofsubscribers.(2)ThroughitssubsidiaryBhartiInfratel& IndusTowersinwhichBhartiInfratelowns42%stake.

Latest Results 2Q12

Key operating and financial metrics

Q3FY12* Customers Revenue EBITDA CashProfit NetIncome EBITDAMargin ROCE 243.3mn $3,649mn $1,177mn $1,021mn $200mn 32.2% 7.3% YonY 17% 17% 19%

Continued Strong Performance

WirelessCMS WirelessRMS TotalMOUcarriedinQtr Total MOU carried in Qtr Balancesheetstrength: Assets $31.9bn $12.7bn 2.6Times (annualized) ContinuestobeFCFpositiveonatSouthAsia Level. 19.7% 30.0% 253bn 253 bn

21% 22%

Netdebt NetdebttoEBITDA

IncludesfullquarternumbersforAfrica (a)ClosingExchangerateasof31srDec2011:53.27.(b)AverageExchangerateason31srDec2011:50.63 **RMSasperSeptquarterreleasedbyTRAI(IIFLreportdated24th Nov11)

Performance dashboard - 3 line graph

190,000

70.8% 69.9%
180,000 180 000

184,767 68.6% 71.2% 172,698 169,749 70.9%

80.0%

70.0% 70 0%

170,000

60.0%

162,930
160,000

157,721 157 721 46.9%

50.0%

150,000

44.8%

44.6%

44.5%

45.4%

40.0%

140,000

30.0%

Q3 FY11

Q4 FY11

Q1 FY12

Q2 FY12

Total Revenue (Rs mn) LHS

Opex to Total Rev (RHS)

ProductivityIndicators=growingrevenues+costefficiencies+capitalproductivity

TheabovechartisforAirtelConsolidatedincludingAfrica

Q3 FY12
Capex Productivity (RHS)

Wireless Services

Indian Market
Overall Telecom Market
Population Population 1.2billion 1 2 billion Relativelylargeyouthpopulation Telecompenetration c.76.7% (~926.5mntelecomsubs) Subnumbershouldgoupto1Billionby2015 Broadbandpenetration 40.2%(13.1mn) VAS SubBase WirelessPenetration Operationalmetricspermonth Usageperuser ARPU Rateperminute Govt.targettoreach20mn.Broadbandsubsby2011 ~13.3% 345min ~US$3.51 ~US$0.01

Wireless Market
c.893.8mn c.74.0%

Lotofopportunityahead.
Note: (1) Subscriber numbers and wireless penetration numbers as on December 31, 2011 are as per TRAI (2) Other indicators on the slide are based on Global Wireless Matrix 3Q11 dated 28th September 11 by Merrill Lynch, and reflective of Industry numbers.

Rapidly Growing Indian Wireless Market

NetAddsinDec9.5Mngreaterthanoverlast3 monthsaveragerunrateof6.2Mn
Closing Subs Net Adds

S-curve triggered

900 800 700 600 500 400 300 200 100 -

25

90% 80%

20

70% % 60% 50% 40%

15

10

30% 20% 10% 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Note:(1)ActualDataasperIndustryAssociationReleasesandIndustryEstimatesinIndia.

F eb-06 J un-06 O c t- 0 6 F eb-07 J un-07 O c t- 0 7 F eb-08 J un-08 O c t- 0 8 F eb-09 J un-09 O c t- 0 9 F eb-10 J un-10 O c t- 1 0 F eb-11 J un-11 O c t- 1 1 -

India FastestGrowingMarketintheWorld India Fastest Growing Market in the World

Wireless Market Structure in India

Subscriber Trends
25%

Customer Market Share CMS (%)

23% 21%

200 180 160 140 120

1 76 1 52 1 50 1 26 1 48 1 24 1 02 92 1 06 82 83 84 92 1 28

20.3% 1 9.7% 1 6.7% 1 6.8% 1 6.5% 1 4.3% 1 .9% 1 1 0.9% 1 2.2% 1 .2% 1 9.3% 9 3%

19% 17% 15% 13% 11%

36

1 6.5%

(mn)

100 80 60 40 20 23 24 23

1 2.2% 1 .5% 1

25 1 0

9% 7% BSNL L+MTNL

BSNL L+MTNL

R eliance

Tata

Idea

Others

5% R Reliance Airtel Vodafone

Airtel

Tata

Idea

dafone Vod

Dec-1 1 D 1 0

CMS(Dec'11)

CMS(Dec'10)

Airtelcontinuouslyconsolidatingitsmarketleadershippositiondespiteintensecompetition Ai l i l lid i i k l d hi ii d i i ii

Airtelcurrentmonthlynetaddsat0.96millionvs.3.1millionayearago Airtelranks1&2in16circlesintermsofnumberofsubscribers Over65%ofnetaddscomingfromB&Ccircles(ruralIndia)

AirtelContinuestoleadonRevenueMarketShare
Note:BasedonsubscriberdataforIndiaasonDecember312011asperTRAIpressrelease.

Others

AirtelPerformance Indicators (Operational)

Customers & Market Share
20.3% 180 20.0% 19.9% 19.8% 19.8% 22%
1 02% 98% 98.2% 98.1 % 97.3% 96.2% 93.7%

Prepaid/Postpaid

18% 120 162.2 169.2 172.8 175.7 14%

94% 90% 86% 96.2% 96.3% 96.3%

152.5 60

96.3%

96.3%

10%

82% 78% Q31 1 Q41 1 Prepaid Subs Q1 2 1 Q21 2 Q31 2

0 Q311 Q411 Customers (mn) Q112 Q212 CM S (% ) Q312

6%

Prepaid Net Adds

ARPU & RPM

60 50 40 30 20 10 Q311 Q411 RPM (Paise) Q112 Q212 Q312 44.19 43.13 42.76 43.18 44.56 198 194 190 183 187 300 250 200 150 100 50 0

MoU/Sub/Month & MON

449 449 218,190 445 228,331 423 242,683 227,115 205,018 419 250,000 200,000 150,000 100,000 50,000 0 Q311 Q411 Q112 Q212 Q312

450 440 430 420 410 400

M oU/ Sub (M in)

Total minut es on Net work (M n M in)

ARPU (INR)

Current positioning and way forward

Leadership Positioning
Revenue
Revenuesize (>$12Bn) RevenueMarketShare

Growth strategy and plans

New Revenue Streams
Changingfaceofgrowth throughMCom,M entertainment&3G

Cost
Improvingcostefficiencies

Net Adds Maximizing usage

Drivenbyruralstrategy

Non financial vitals

Brand Distribution Churnlowerthanindustry SpectrumMix(900/1800MHz) Spectrum Mix (900/1800 MHz)

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(endDec 2011) Broadband(DSLwithspeeds>256kbps)penetrationat40.2%ofcustomerbase. AverageARPUforQuarterendedDec11$18.1permonth. Segmentcontributingto7% ofoverallrevenuesofthecompany. EBITDAmarginofover38.8%. EBITDA i f 38 8%

BroadbandrevolutiontofollowwirelessrevolutioninIndia SMBopportunityacrossICTstream

Enterprise Services E i S i

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 PanIndianetworkwith154,744Routekmsofopticalfiber,over4,150MPLSandSDHPOPs Accessnetwork(terrestrial)in87cities,Wimaxnetworkin143cities,andover1,500localPOIs Internationalnetworkwith225,000RouteKms,connectingover50countriesand5Continents. KeyPerformanceIndicators(Q312) NLDMinutesCarried:20.6Billion;ILDMinutesCarried:3.5Billion Revenue:Rs.11,881Million(9%SegmentContributionShare) IT A: Rs. ,008 Million ( 6.9% ITA Margin) EBITDA:Rs.2,008Million(16.9%EBITAMargin)

Emerging Growth Engines Passive Infra Africa

Financial Performance Passive Infra

Revenue
509 510 480
180

EBITDA
38.6
486 482
200 189 183

37.0

37.7
192

37.5

37.3

490

493

182

180

450 420 390 360 Q311 Q411 Q112 Q212 Q312

160

140

120

100 Q311 Q411 Q112 Q212 Q312

FocusontenancyenhancementdrivingRevenue&Profitability

TheabovenosforRevenue&EBITDAareinIFRSasperQuarterlyReport&includesproportionate share(42%)inIndus .

Operational Performance Passive Infra

Infratel
Towers(nos)&SharingFactor
34,000 1.77 1.73 1.68 33,000 1.60 32,792 32,424 32,000 32 000 Q311 Q411 Q112 Q212 Q312 1.40 1 40 32,942 33,056 33,203 1.50 1.70 1.79 1.81 1.80 1.90 109,000 107,000 105,000 103,000 101,000 99,000 97,000 97 000 Q311 Q411 Q112 Q212 Q312 107,789 108,586 108,922 108,998 109,101 1.80 1.83

Indus
Towers(nos)&SharingFactor
1.87 1.89 1.91 2.00 1.90 1.80 1.70 1.60 1.50 1.40 1.30 1.20 1 20

No of t owers

Shar ing Fact or

No of t ower s

Sharing Fact or

SharingRevenueperSharingOperatorperMonth(Rs)

SharingRevenueperSharingOperatorperMonth(Rs)

41,000 37,859 37,000 33,000 29,000 25,000 Q311 Q411 Q112 Q212 36,599 36203 37,117

35,000
37,623

30,847 30,000 25,000

20,000 15,000

31963 30,501

31112

32,272

Q312

Q311

Q411

Q112

Q212

Q312

Shar ing Revenue per Shar ing Oper at or per mont h

Shar ing Revenue per Shar ing Oper at or per mont h

Aimstoenhancethetenancyratio&bethepreferredchoiceofvendorforallexisting andnewoperators

Transaction Rationale

Shareholding and Management Control Brand Airtel Airtel Clean / certainty of transaction

100% Cash Transaction

Global Stature Emerging Market Characteristics Strong Platform St Pl tf for Future Expansion

Focus on Core Middle East Operators

Manageable Deal Size Diversification of India Risk Avoid Greenfield

Low Competitive Intensity Significant Synergies

Speed in Transaction Repayment of Debt

ThetransactionmeetstheobjectivesofAirtelwithlongtermstrategicbenefits andcreatestremendousshareholdervalue

Differences between the two markets

India
MobilePenetration 77%

Africa(1)
40%

AverageNumberof Competitors

1012

35

BusinessModel

Highusage,lowpricingmodel

Lowusage,highpricingmodel

MinutesofUsage Minutes of Usage

~419 419

~125 125

ARPU(US$)

~$3.7

~$7.1

ARPM(UScents)

0.9

5.7

Andthereforehugeopportunityspace A d th f h t it
Source: Global Insight, annual / quarterly reports. 1. Data pertaining to the 16African countries where Zain Africa has operations.

Another Growth Engine - Africa

CustomerBase:50.9Mn PerformanceIndicators(CY2011): Revenue:$2,878Mn EBITDA:$6,30Mn PrepaidBase:99.3% oneofthehighestinthe one of the highest in the world Usagepersubpermonth:125Minutes oneofthelowest o e of e o es ARPU:~US$7.1 Rateperminute:~US5.7 oneofthehighest VAS:~8.0% Oneofthelowest

Note:AbovenumbersbasedonQuarterlyreportended31Dec,2011.

Recent Honors

Bharti airtel Leadership in business

EconomicTimesTelecomAwards2011 InnovativeProductValueAddedService CustomerExperienceEnhancement Frost&Sullivan2011AsiaPacificICTAwards EnterpriseTelecomServiceProvideroftheYear WholesaleDataServiceProvideroftheyear MobileVASProvideroftheYear IndiasMostInnovativecompany WallStreetJournal TelecomOperatoraward2011 Wonin5categories.
MostAdmiredcompany BestNationalMobileoperator OperatorwithRuralperformance

Recent Honours

BestVASprovider BestEnterpriseservices

DSCIExcellenceAward2011forSecurityinTelecom SecurityLeaderoftheYear' BhartiAirtelratedasIndiasBestEnterpriseConnectivityProvider UserschoiceawardInstitutedbyPCQuest SunilBhartiMittal: GlobalGamechangeratEconomicTimesTelecomAwards2011 GlobalTelecomLeader Voice&Datamagazine AkhilGupta,DeputyGroupCEOandMD CFOIndiaHallofFamebyCFOIndia ManojKohli,CEO(International)&JointMD TelecomManoftheyear Tele.net StarNewsBrandExcellenceAwardintheTelecomSector2011

thank you