INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION BHARTI AIRTEL LIMITED September 05

2 Disclaimer This material has been prepared by Bharti Airtel Limited (the Company ) and has not been independently verified. This material has been prepared for the information of the parties to whom it is delivered and is being delivered to you solely in your capacity as a relevant person (as defined below). This document and its contents are confidential and may not be retransmitted, distributed, published, reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients to any other person. This material has been prepared solely for informational purposes and does not constitute or form part of, and should not be construed as, an offer to sell, or as an invitation or inducement to make, or a solicitation of, any offer to purchase or subscribe for any securities. No part of this material, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Any offer of securities would only be made pursuant to a formal prospectus which contains, among other things, a description of certain risks relating to the relevant securities, certain disclosure relating to the Company and a description of the relevant securities. The information contained herein is preliminary, limited in nature and subject to verification, completion and amendment. No representation or warranty, either express or implied, is given or made by any person in relation to the fairness, accuracy, completeness or reliability of the information or any opinions contained herein and no reliance whatsoever should be placed on such information or opinions. This material should not be regarded by recipients as a substitute for the exercise of their own judgment and assessment. Any opinions expressed in this material are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained herein. This material is not intended to be a prospectus in connection with an offer of securities and any investment decision with respect to any securities should be made solely upon the basis of the information contained in the formal prospectus relating to such securities. Neither the Company, nor its advisors nor any of their respective affiliates, agents, directors, partners and employees shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This presentation contains certain tables and other statistical information and analyses (the Statistical Information ) which have been prepared in reliance upon information furnished by the Company. Numerous assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. As such, no assurance can be given as to the Statistical Information s accuracy, appropriateness or completeness in any particular context; nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that is based on various assumptions and involves unknown risks and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding the future performance. Any investors or prospective investors are required to make their own independent investigation and appraisal of the business, financial condition and prospects of the Company and the nature of any relevant securities and no reliance may be placed upon the information herein for such purposes. Recipients should consult with their own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that they deem it necessary, and make their own investment, hedging and trading decisions based upon their own investigation and judgement and advice from such advisers as they deem necessary and not upon any view expressed in this material. This material constitutes a marketing communication and is only addressed to and directed at persons in Member States of the European Economic Area who are qualified investors within the meaning of Article ()(e) of the Prospectus Directive (Directive 00//EC) (as amended or replaced). In addition, in the United Kingdom, this material is being distributed only to, and is directed only at, Qualified Investors (i) who are investment professionals as defined by the Financial Services and Markets Act 000 (Financial Promotion) Order 005 (as amended or replaced) (the Order ) and (ii) high net worth individuals and other persons falling within Article 9()(a) to (d) of the Order to whom it may otherwise lawfully be communicated and in all cases are capable of being categorised as a Professional Client or Eligible Counterparty for the purposes of the FCA conduct of business rules (all such persons together being referred to as Relevant Persons ). This material must not be acted on or relied on (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any other Member State of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors. Nothing in this material constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any investment or investment activity to which this material relates is available only to (i) in the United Kingdom, Relevant Persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors, and will be engaged in only with such persons. This material and its contents is confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. This document and the information contained herein, are not for release, publication or distribution, in whole or in part, directly or indirectly, to persons in the United States (within the meaning of Regulation S under the US Securities Act of 9, as amended (the "Securities Act") or to entities in Canada, Australia or Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. You may not retain a copy of this material. By reviewing this material you acknowledge and agree to be bound by the foregoing. During the year ended March, 05, Company changed the presentation of certain line items to reflect more accurately the underlying business performance. The financial information as of and for fiscal year 0 above has been restated in, and extracted from, the financial statements as of and for fiscal year 05. The financial information as of and fiscal year 0 was extracted from the audited financial statements of the company as of and for fiscal year 0, and is not comparable to the financial information as of and for fiscal years 0 and 05. Please see section entitled Presentation of Financial information Comparability of Results of the Offering Memorandum for more information. 05 Bharti Airtel Limited of 0

3 Agenda Investment Highlights Appendices of 0

4 Investment Highlights

5 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong Shareholder Support Growth Strategy: Voice, Mobile Data and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies of 0

6 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies 5 of 0

7 8 Global Telecom Major 6 5 # Operator in Africa Largest private integrated telecommunications operator in India.85bn Addressable Population # Operator In India Presence in all of India s telecom circles, Sri Lanka, Bangladesh and countries in Africa Revenue and EBITDA of US$5.bn and US$5.bn respectively # largest wireless service operator in the world 6 of 0 Source: TRAI and Ovum Notes:. Combined population for the regions in which Airtel has a footprint. FY05 Revenue. As of March, 05; Based on proportionate equity subscriptions with data from Ovum. In-country wireless operator refers to single country subscribers. As measured by proportionate equity subscription in a single country, according to 0 Ovum

8 Evolution to being a world s leading telecommunications Company Amongst the world s leading telecom players offering integrated solutions Mobile services under the brand name Airtel launched in Delhi and Himachal Pradesh SingTel comes in as a strategic investor in Bharti Group IPO of Bharti Airtel through India s first 00% bookbuilding issue Company Profile circles Customer Base.m Revenue (US$) EBITDA (US$) Cash Profit (US$) Market Cap (US$) 0m 8m 6m.5bn Launched direct to home network (DTH) services # Becomes India s largest wireless telecom operator with pan-india footprint Acquired Zain Africa B.V., launching entry into Africa Acquired 0% stake in Warid Telecom, Bangladesh Launched mobile services in Sri Lanka Launched G services in India Expanded African operation to Rwanda Acquired 00% stake in Qualcomm India Launched G services in Kolkata, Bengaluru, Pune, Mohali and Chandigarh IPO of Bharti Infratel Qatar Foundation Endowment invests US$.5bn Minority buyouts in Bangladesh and Nigeria In country acquisition in Congo Brazzaville and Uganda Acquired 5.0 MHz of liberalized spectrum in the February 0 spectrum auctions Plan to roll-out high speed G networks in various circles using FD-LTE technology in the 800 MHz band besides its existing TD-LTE roll-out in the 00 MHz band, giving Airtel a pan- India G footprint Crossed 00mn mobile customers mark in India in February 0 Launched 'G on Mobile' service in Bangalore in February 0 In February 05, acquired.6 MHz of prime spectrum across 900 MHz, 800 MHz and 00 MHz bands at auction for total consideration of INR 9 bn Completed sale of towers in 5 countries of Africa Company Profile Customer Base Revenue (US$) EBITDA (US$) Cash Profit (US$) Market Cap (US$) 0 nations m 5.bn 5.bn.bn 5.bn Source: Company Filings, Company website, BSE, NSE Notes:. Customer Base includes non-mobile customers (DTH, Enterprise, Telemedia, etc.). Cash profit defined as EBITDA Net Finance Cost excluding derivatives and exchange fluctuations impact. 00 market capitalization as on March, 00 ; FY05 market capitalization as on March, 05; (Source: BSE, NSE) of 0

9 8 Global telecom with a diversified portfolio offering Uniquely positioned with strong asset base Five key businesses creating an integrated global telecom company 6 5 Mobile Services across 0 countries 8.0 mn wireless subscribers globally Over. trillion minutes of calls in FY 05 Over petabytes of data over the last year Telemedia Services (Fixed Line & Broadband). mn broadband & internet customers Services provided across 8 cities Tower Infrastructure Services amongst the largest tower company globally Bharti Infratel,86 towers across circles % stake in Indus Tower which has 6,5 towers across 5 circles Current market cap: US$.5 bn Digital TV Pan India DTH, 0. mn subscribers Coverage across 69 districts Wireless: 0 growth markets Telemedia: One of four customers on Airtel, DSL ARPU> Rs 000 Airtel Business: 50 countries, 5 continents Integrated Telco DTH: EBIT positive, generating significant OFCF Airtel Money: Building Scale Tower Co: Consolidating the data growth, sharing factor> Airtel Business (Large enterprises and carriers) Over 5,000 Rkms across 50 countries, 5 continents 8 of 0 Source: TRAI and Ovum Notes:. Bharti Airtel Quarterly Report for quarter ending June 0, 05. Market Cap data as on the June 0, 05, closing exchange rate US$/INR = 6.8. Revenue pie chart based on pre inter-segment eliminations

10 8 Scale and profitability across diversified geographies 6 5 International operations contributed % of FY5 revenues Diversified suite of offerings with non-wireless segments contributing 0% to operating profit (FY5) Gross Revenue (FY5): US$5.bn Geographical split of mn overall customers US$mn Mobile Servcies Africa % Telemedia % Digital TV % Mobile Servcies S. Asia % Mobile Servcies India 69% Segment contribution EBITDA (FY5): US$ 5.bn, Segment Wise EBITDA Margins (FY5),.%.% 0.%.0%.0%.% India Wireless International Wireless Tower Infra Airtel Business Telemedia Digital TV 9 of 0 Source: Company Filings (NSE, BSE) Note:. Data as of March, 05; Revenue and EBITDA pie charts are based on pre inter-segment eliminations. EBITDA charts are based on pre inter-segment eliminations

11 8 The Leading Indian Wireless Operator 6 5 Customer Market Share % Wireless Subscriber Market Share.% Wireless Revenue Market Share % 9% 6% % 8% 8% 6% % Bharti Airtel Vodafone Idea Reliance Comm Aircel BSNL & MTNL Tata Others Airtel has leadership in circles of the total circles (Rank or ) with average RMS of 6.% in these circles 0 of 0 Source: Telecom Regulatory Authority of India and Ovum Notes:. As of May, 05. For quarter ended Jun 0, 05. Calculated on the basis of Gross Revenue for UASL + Mobile +CMTS licenses

12 8 The Airtel Brand Leadership 6 5 Multiplatform services in telecom, enterprise and digital television, unified under brand Airtel Successfully unified operations across the globe under the umbrella of Airtel One Touch Internet won the Best Mobile Service/Application of the Year for Consumers award at the GSMA Global Mobile Awards in 05 Interbrand s Best Indian Brands survey in 0, in which the survey valued the Bharti Airtel s brand at US$ 6.bn Ranked sixth among the Top 0 brands in the overall category and ranked second brand in the telecom sector at the annual afaqs poll on buzziest brands in 0 Ranked as India s number one service brand and third overall brand in The Economic Times Brand Equity Survey for September 0 Awarded Brand of the Year award at the Nigerian Telecom Awards in 0 of 0

13 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies of 0

14 8 Created a Unique Business Model Minutes Factory 6 5 Bharti Airtel successfully used its Minutes Factory model to move towards a high usage environment, while building its customer base profitably Improving affordability to gain positive elasticity is at the heart of our Minutes Factory model Focus on producing the lowest cost minute whilst growing margins Drive affordability with more users and more usage Increased scale of minutes; driving operating leverage Affordability Improved Profitability Positive Elasticity Economies of Scale (cost efficiency) Increase in Usage of 0

15 8 Bharti Airtel: Challenging mindsets 6 5 The strategic partnership model has been a key enabler for Bharti Airtel to lower its costs Challenging Text The Mindset Text Challenging The Model Mobiles for classes not for the masses Post-paid customer is better than pre paid customer High ARPU performance High tariffs performance Low usage is better A lower Capex / Sales Better Capital Usage IT Wipro, Mphasis, Hinduja TMT, Teleperformance, Firstsource Outsourcing non core activities Moving from Competition to Collaboration Innovative business delivery model Network Management Call Centre Management First ever tower company formed by a consortium of operators "Minutes Factory" Model of 0

16 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies 5 of 0

17 India trends (Wireless business) Customer Base Net Additions Customer base growth continues.. Mn Mar- Jun- Sep- Dec- Mar-5 Jun-5 Customer base Steady growth in minutes on network Bn Mar- Jun- Sep- Dec- Mar-5 Jun-5 Minutes on the network Largest wireless services customer base in India, with.0 million mobile subscribers as at June 0, 05, which represents a customer market share of %, according to TRAI Network covered 5, census cities and towns and 6,5 noncensus towns and villages in India, covering a geographic area of c.86.% of the country s population with its extensive sales and distribution network covering more than. million retail outlets Churn rates for customers stabilizing.. %.%.%.%.% Site and coverage expansion.. No. of sites 6,59,66 8,55 9,89,90,898 In February 05, acquired.6 MHz of prime spectrum across 900 MHz, 800 MHz and 00 MHz bands at auction for a total consideration of INR 9bn.0%.5% Mar- Jun- Sep- Dec- Mar-5 Jun-5 Churn % Mar- Jun- Sep- Dec- Mar-5 Jun-5 Sites on Network 6 of 0 Source:. Company quarterly results release for Q 06

18 Africa trends (Wireless business) Customer Base Net Additions Growing customer base.. Mn Steady growth in minutes on network Bn Present in countries in Africa with a total subscriber base in Africa of approximately 8. million customers and G services across all countries Africa headquarters are in Nairobi, Kenya Nigeria accounts for largest of operations in terms of revenues Mar- Jun- Sep- Dec- Mar-5 Jun-5 Customer base Churn rates for customers stabilizing.. Mar- Jun- Sep- Dec- Mar-5 Jun-5 Minutes on the network Site and Coverage Expansion Airtel Money, a mobile money service is a big push as a strategy to increase non voice revenues in Africa %.0% No. of sites 6.0% 6.% 5.8%,9,8,95 8, 8,89 9,6 5.5% 5.% Mar- Jun- Sep- Dec- Mar-5 Jun-5 Churn % Mar- Jun- Sep- Dec- Mar-5 Jun-5 Sites on Network of 0 Source:. Company quarterly results release for Q 06

19 8 First mover in new technologies 6 5 G Significant potential for growth in India and Africa Launched G network in India in January 0 and expanded to across more than 9,000 cities in India covering. million active G data customers National long distance infrastructure included 99,99 route kilometers ( Rkms ) of optical fiber, providing coverage across a substantial portion of India G services launched in all countries in Africa G Key to tap into the data opportunity Launched in nearly 00 towns and cities in India on mobiles, mifi, dongles, home wifi routers Partnering Nokia Networks to launch ultrafast G services in India s first FDD-LTE on 800 MHz Strategic collaboration with China Mobile Limited to work towards growing the Long- Term Evolution ( LTE ) system and evolving mobile technology standards Launched G in countries in Africa Airtel Money Offered in India and all opcos in Africa Awarded a payments bank license by the Reserve Bank of India In Africa- have a sub base of million (up 6% YoY), using the Airtel Money Platform - transaction Value: $,5 million in QFY6 (up % YoY) 8 of 0

20 New and growing income streams- Data revenue trends - India Data Customer Base 000 s 5,605 9,0 0,08,9 6, Growth in Data Customers,55 5,5 6,90 9,,60 Mar- Jun- Sep- Dec- Mar-5 Jun-5 No. of G data customers G sites and Data on network continue to rise significantly Bn MBs,0,56 8,055,850 Data usage per customer has been growing Data ARPU trends favorable MBs , , ,886 Mar- Jun- Sep- Dec- Mar-5 Jun-5 INR Number of G sites 9 50 Total MBs on the network No. Airtel launched India s first G wireless network in Kolkata in April 0, which provides much faster upload and download speeds as compared with G wireless networks G services are available in over 9,000 cities and towns in India Expanded its G platform to nearly 00 cities and towns The mobile data customers represented.% of the Company s mobile subscriber base as at June 0, 05, compared to 8.8% as at June 0, 0 The increase in subscribers and usage reflected the greater availability in India of smartphones and higher quality of mobile apps, games and other content, which create demand for data services Mar- Jun- Sep- Dec- Mar-5 Jun-5 Data Usage per Customer per month Mar- Jun- Sep- Dec- Mar-5 Jun-5 Data Average Revenue per User per month 9 of 0 Source:. Company quarterly results release for Q 06

21 New and growing income streams- Data revenue trends - Africa As % of Customer Base 000 s.% 5.5% 5.% 6.% 6.6% 9,88 Growth in Data customers,09,,89,09 Jun- Sep- Dec- Mar-5 Jun-5 Data customers G sites and Data on network continue to rise significantly Bn MBs Data usage per customer has been growing Data ARPU trends stable MBs ,65 US$ 8.0 8, ,8.0 0, , Jun- Sep- Dec- Mar-5 Jun-5 Number of G sites Total MBs on the network. No. In Africa, G services and Airtel Money (m-commerce platform) are provided across all countries Services cover voice, VAS, messaging and data telecom services offered to customers in countries in Africa The mobile data customers represented 6.6% of the Company s mobile subscriber base as at June 0, 05, compared to.% as at June 0, 0 As at June 0, 05, G sites represented 56% of the total network sites, as compared to 0.% as at June 0, 0 Jun- Sep- Dec- Mar-5 Jun-5 Data Usage per Customer per month Jun- Sep- Dec- Mar-5 Jun-5 Data Average Revenue per User per month 0 of 0 Source:. Company quarterly results release for Q 06

22 Significant investments in spectrum to create strong asset base India operations Spectrum across 900/800/00/00 bands, more or less fungible across technologies Hold 55.5 MHz (9.5 MHz paired & 60 MHz unpaired) spectrum Only private operator with pan India G presence (excepting one circle) based on February 05 auction Bharti has rolled out G in over 9000 towns and cities and and G services across 00 towns and cities and towns in India Bharti Airtel s Spectrum Position post February 05 auction Spectrum Band Bharti s Spectrum Market Share (exbsnl/mtnl) 900MHz.% 800MHz 9.% 00MHz.% 00MHz 8.% Uniquely positioned with strong Pan-India spectrum assets through a combination of 900MHz, 800MHz, 00MHz and 00MHz band spectrum Africa operations Operates in 900 MHz and 800Mhz band spectrum in all African countries Average G spectrum across these countries is close to 0 MHz G spectrum across African countries. Bharti Airtel plans to leverage its existing network and superior spectrum position for data roll-outs of 0 Source:. Including Qualcomm licenses, excluding administered spectrum. Annualized 9M Revenues for FY5, Utilization based on G/G spectrum. Ex 0 MHz BWA spectrum holding in 8 circles

23 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies of 0

24 8 Other Businesses 6 5 Telemedia Services Airtel Business Digital TV Services Offers a range of services including fixedline telephone services as well as broadband internet access Operates in the entire broadband continuum - fixed line voice and high speed broadband across Homes and Office segments, broadband (via DSL), IPTV services in Bangalore and the Delhi-National Capital Region, internet leased line and MPLS services Pan-India presence of 8 cities Focus on developing its services in cities with high revenue potential such as New Delhi, Mumbai, Kolkata and Chennai Key Performance Indicators Customer base:. million Broadband penetration at.8% of customer base FY5: % YoY revenue growth, % YoY EBITDA growth One of India s leading providers of communications services to large enterprise and carrier customers in India Customer base across - enterprises, governments, carriers and small and medium business. Diverse portfolio of services - voice, data, video, network integration, data centers, managed services, enterprise mobility applications and digital media. Strategically located submarine cables and satellite network - global network running across 5,000 Rkms, covering 50 countries and 5 continents International infrastructure includes ownership of the ii submarine cable system connecting Chennai to Singapore FY5: 6% YoY revenue growth, % YoY EBITDA growth Company provides real integration of all the three screens viz. television, mobile and computer enabling customers to record their favorite TV programs through mobile and web Launched Airtel Digital TV service in October 008 as fifth operator providing Direct-to-Home (DTH) services in India Subscriber base of ~0. million subscribers with one of the lowest industry churn of 0.8% Present across 69 districts offers 0 channels including 0 HD channels including interactive services Also offers High Definition (HD) Set Top Boxes and Digital TV Recorders with D capabilities delivering superior customer experience FY5: 9% YoY revenue growth, 0% YoY EBITDA growth of 0 Note:. Data as on June 0, 05

25 8 Other Businesses 6 5 Tower Infrastructure Services Tower Infrastructure Services include setting up, operating and maintaining telecom infrastructure towers including the non-active components of a wireless telecommunications infrastructure network, including the tower structure, shelters, industrial air conditioners, diesel generators, batteries, switch mode power supplies and voltage stabilizers Tower infrastructure for telecom operations are managed through subsidiary Bharti Infratel and Indus Towers (indirectly held through Bharti Infratel s.0% stake) Bharti Infratel is amongst the largest providers of Tower Infrastructure in India and in the world as measured by number of towers Indus Towers is a joint venture between Bharti Infratel, Idea Cellular and Vodafone India Key Performance Indicators Number of Towers : Bharti Infratel,86 towers Indus Towers 6,5 towers Colocations and Tenancy : Bharti Infratel,9 co-locations for a sharing ratio of.0 Indus Towers 56,960 co-locations for a sharing ratio of. Taking into consideration Bharti Infratel s proportionate ownership of Indus Towers, Bharti Infratel owned and maintained 86,9 towers with 85,5 co-locations for a sharing ratio of. of 0 Note:. Data as on June 0, 05

26 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies 5 of 0

27 8 Robust Financials (Consolidated) 6 5 Total Revenue (US$bn) EBITDA (US$bn) Total Revenue EBIT (US$bn) Growth witnessed across all segments Indian growth led by increase in customer base and data, besides improvement in realizations Africa growth continues at the back of Data and Non-Voice Services 6 of 0 Source: Company Filings and quarterly releases Note:. Average exchange rates for conversion to US$ is (a) FY: INR 5. (b) FY: INR (c) FY5: INR 6.0 (d) Q5: INR (e) Q6: INR 6.8. During the year ended March, 05, Company changed the presentation of certain line items to reflect more accurately the underlying business performance. The financial information as of and for fiscal year 0 above has been restated in, and extracted from, the financial statements as of and for fiscal year 05. The financial information as of and fiscal year 0 was extracted from the audited financial statements of the company as of and for fiscal year 0, and is not comparable to the financial information as of and for fiscal years 0 and 05. Please see section entitled Presentation of Financial information Comparability of Results of the Offering Memorandum for more information.

28 8 Strong Credit profile 6 5 Net Debt (US$bn) Maturity profile of Long term Borrowings (US$bn) # FY FY FY5 QFY6 Net Debt Shareholders Equity Deferred payment liability Interest Coverage ratio (times) 0 < year - years -5 years >5 years 05 < year - years -5 years Net Debt/EBITDA (LTM) and Net Debt/Equity (times) >5 years # During FY5, Company designated certain of its foreign currency borrowings as a cashflow hedge of the foreign currency risk arising from the expected sale consideration receivable from the highly probable forecasted transaction relating to the sale of telecom towers FY FY FY5 QFY6 FY FY FY5 QFY6 Net Debt/EBITDA (LTM) Net Debt/Equity Source: Company Filings and quarterly releases Note:. Average exchange rates for conversion to US$ is (a) FY: INR 5. (b) FY: INR (c) FY5: INR 6.0 (d) Q5: INR (e) Q6: INR 6.8. During the year ended March, 05, Company changed the presentation of certain line items to reflect more accurately the underlying business performance. The financial information as of and for fiscal year 0 above has been restated in, and extracted from, the financial statements as of and for fiscal year 05. The financial information as of and fiscal year 0 was extracted from the audited financial statements of the company as of and for fiscal year 0, and is not comparable to the financial information as of and for fiscal years 0 and 05. Please see section entitled Presentation of Financial information Comparability of Results of the Offering Memorandum for more information. of 0

29 8 Strong Credit profile (contd.) 6 5 Operating Free Cashflow (US$bn) Capex (US$bn) 8 of 0 Source: Company Filings and quarterly releases Note:. Average exchange rates for conversion to US$ is (a) FY: INR 5. (b) FY: INR (c) FY5: INR 6.0 (d) Q5: INR (e) Q6: INR 6.8. During the year ended March, 05, Company changed the presentation of certain line items to reflect more accurately the underlying business performance. The financial information as of and for fiscal year 0 above has been restated in, and extracted from, the financial statements as of and for fiscal year 05. The financial information as of and fiscal year 0 was extracted from the audited financial statements of the company as of and for fiscal year 0, and is not comparable to the financial information as of and for fiscal years 0 and 05. Please see section entitled Presentation of Financial information Comparability of Results of the Offering Memorandum for more information.

30 8 Continued deleveraging 6 5 Asset-light strategy for Africa Agreements with Helios, Eaton, I.H.S, and American Towers Corporation for sale of towers in Africa As of July, 05, Bharti has completed the sale in 5 markets, for a total consideration of USD. billion Balance markets are underway, with the exception of Tanzania, Chad and DRC, where the transactions were cancelled following their long stop dates being breached Secondary sale of stake in Tower Assets (BIL) Bharti Infratel Limited (BIL), tower infrastructure subsidiary was listed on Indian stock exchanges on December 8, 0 raising approximately INR. billion In QFY05 Company sold.5% stake (85mn shares) in Bharti Infratel for INR.bn Further, in QFY05 a.9% stake (55mn shares) in Bharti Infratel was diluted for INR 9.6bn Funds raised through secondary sale have been used for deleveraging Strategic equity investments In June 0, Qatar Foundation Endowment ("QFE") invested US$.5, billion for a 5% (post issue share capital) stake in Bharti Airtel QFE is a long-term global investor with a broad mandate to make direct investments 9 of 0 Source: Company Filings and quarterly releases

31 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies 0 of 0

32 8 Investment Grade Status 6 5 BBB- Stable Baa- Stable BBB-- Stable On April 6, 05, Standard & Poor's Ratings Services affirmed its 'BBB- long-term corporate credit rating on Bharti Airtel Ltd. (Bharti) The outlook is stable. They also affirmed our 'BBB-' longterm issue rating on the senior unsecured notes issued by Bharti Airtel International (Netherlands) B.V. that Bharti guarantees. On March 6, 0, S&P raised its long-term corporate credit rating to 'BBB-' from 'BB+'. The stable outlook reflects expectation that Bharti will maintain its improved market position and EBITDA margins, while reducing leverage over the next - months. The rating reflects Bharti s strong market leadership, business diversity, strong financial profile and the improving regulatory and competitive environment in India. Press Release on Ratings Upgrade April 6, 05 Moody's Investors Service says that Bharti Airtel Ltd.'s spectrum payments of INR9 billion (US$.6 billion) can be accommodated in its Baa issuer rating with a stable outlook, as the company will likely opt for a deferred payment structure. This structure minimizes the upfront cash outflow and stretches out payments over a -year period, which Bharti can comfortably fund from cash flow. Company has a proven track record of reducing core leverage, as evidenced by its reported debt levels (excluding deferred payment liabilities related to spectrum) declining to around INR 659 billion (US$0.5 billion) at December 0 from INR 59 billion (US$. billion) at March 0. Bharti will remain committed to debt reduction in 05, as cash flow from operations and proceeds from other monetization activities are used to reduce debt levels further such that adjusted debt/ebitda trends towards.5x over the next - months. Moody's March, 05 Fitch believes that Bharti's 'BBB-' credit profile will remain intact, albeit with a reduced ratings headroom. Spectrum auction will exert pressure on telcos' balance sheets and cash flow and limit their ability to invest in capex over the medium term, however, we believe that the auction strengthen the telcos' pricing power Bharti would add at least US$550m-600m of additional annual EBITDA if average revenue per user increases by 0%. Fitch March, 05 of 0

33 Investment Highlights 8 Global Telecom Major with focus on Emerging Experienced management Innovative business model Markets team & high corporate driving value (Asia and Africa) governance and efficiency from scale Strong Shareholder Support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies of 0

34 8 Strong Shareholder Support 6 5 Singapore Telecommunications Limited ("SingTel") is a leading communications group providing a diverse range of telecom services across South and South East Asia and Australia. Listed with a market capitalization of US$50.8bn In 000, SingTel invested US$650 million in Bharti Group SingTel subsequently invested in Bharti Airtel in multiple smaller tranches SingTel holds a.% effective stake in Bharti Airtel one of their largest investments made in the world outside Singapore Today, SingTel contributes relevant strategic and business insights through representation on the Board of Bharti Airtel Limited and Bharti Airtel International (Netherlands) B.V. Bharti Airtel continues to leverage SingTel s industry experience and technical expertise to help enhance its position in the global telecom market On June, 0, Qatar Foundation Endowment ("QFE") invested US$.5, billion for a 5% (post issue share capital) stake in Bharti Airtel QFE is committed to supporting the long term strategic growth of Bharti Airtel QFE is a long-term global investor with a broad mandate to make direct and managed investments The strategic partnership with QFE demonstrates the confidence in the Company and its growth potential Source: Company Filings, BSE, SGX, SingTel Company website Note As on March, 05 As announced by Bharti Airtel's to BSE/NSE on June, 0 At the closing exchange rate of FY0 of 0

35 Investment Highlights 8 Experienced management team & high corporate governance Global Telecom Major with focus on Emerging Markets (Asia and Africa) Innovative business model driving value and efficiency from scale Strong shareholder support Growth Strategy: Voice, Mobile Data, and New Services 6 Stable Investment Grade Credit with Stable Outlook and focus on deleveraging 5 Strong financial profile Diversified offering in geographies of 0

36 8 Experienced Management Team of 0 Sunil Bharti Mittal Chairman Honorary Degree awarded by Newcastle University 0 Business Leader for the World Award from INSEAD in 0 Rajan Bharti Mittal Vice Chairman & Managing Director Indian Business Leaders of the Year award at the Global India Business Meeting, 0 Gopal Vittal MD &CEO, India Outstanding Contribution to the Sector award at the Telecom Operator Awards 0 CFO India Hall of Fame by CFO India, 0 Bharti Airtel was placed among the top 00 brands globally in the annual survey undertaken by Brand Finance, an international agency Airtel has bagged the Brand Leadership Award in Telecom Sector for the year 0 and Emerging Brand Award for Airtel money at the Brand Leadership Awards Airtel bags five awards at tele.net Telecom Operator Awards 0 which includes - Telecom Operator Awards 0, Most Admired Telecom Operator, Best National Mobile Operator, Best Ad Campaign by an Operator, Best G Operator and Best VAS Provider (for Airtel money) categories. Bharti Airtel Nigeria won industry Awards at the prestigious 8 th edition of the Nigerian Telecoms Awards:Telecoms Brand of the Year, Best Customer Service and the Most Innovative Network. Ranked # in top 00 list of Global Brands by Millward Brown Optimer, published in Financial Times, with an estimated brand value of over USD billion,0 Airtel digital TV (HD) was recognized as the Product of the year 0, by AC Nielsen, an international research firm. Airtel s myairtel application has won the App of the Year award for Best Application using Network Application Programming Interfaces (APIs) at the prestigious GSMA (Groupe Speciale Mobile Association) Global Mobile Awards 0 Airtel bagged the Quality Excellence Award for Fastest growing Company at the National Quality Excellence Awards

37 8 Highest Standards of Corporate Governance 6 5 CRISIL has assigned its Governance and Value Creation rating CRISIL GVC Level to the corporate governance and value creation practices of Bharti Airtel Quarterly financials audited on IFRS, IGAAP basis Stable IG rating from S&P, Fitch and Moody's Diversified Board 50% independent directors SingTel representatives on the Board of the company Professional organization with empowerment to operating team 6 of 0

38 Appendices

39 Group Corporate Structure Bharti Airtel Limited 00% 5% Bharti Airtel International (Mauritius) Ltd. 9% Bharti International (Singapore) Pte Ltd. Share 9% Bharti Airtel International (Netherlands) B.V. 5% 00% Bharti Airtel Africa B.V. 00% WOS 00% WOS 90% Malawi Madagascar 9.06% Nigeria Gabon Kenya Seychelles 98.50% DRC Niger Chad Sierra Leone 96.6% Zambia Congo B Burkina Faso Rwanda 60% Tanzania 00% Warid Congo Uganda 5% Ghana 8 of 0

40 INVESTOR PRESENTATION BHARTI AIRTEL LIMITED September 05