Bharti Airtel Limited Annual General Meeting July 19, 2007
Indian telecom growing share in world telecom -Total Telecom Base ~ 23 Crore 3 rd largest in the world - Tele-density ~ 20 % Lowest in the World - Wireless Sub Base ~ 18 Crore 3 rd largest in the world - Wireless Penetration ~ 16 % One of the lowest -ARPU < USD 9 One of the lowest - Mou/Sub/Month ~ 490 minutes 2 nd highest in the world -Realised RPM -Fixed line Sub Base ~ 2 US cents/ min Lowest in the world (A ll Inclus iv e ) ~ 5 Crore - Broadband Sub Base ~ 20 Lakh Large potential market Indian telecom well placed in world telecom space Source: Based on data in Global Wireless Matrix 1Q07- Merrill Lynch. COAI & AUSPI data June 30, 2007 2
competitive scenario services offered wireless technology no. of operational circles (of 23) wireless market share (Jun - 07) no. of wireless subscribers (mn) a. Private GSM 1. Bharti Integrated GSM 23 23.5% 42.7 2. Hutch Mobile GSM 16 17.6% 31.8 3. Idea Mobile GSM 11 8.9% 16.1 4. Others Mobile GSM - 5.6% 10.2 b. Private CDMA 5. Reliance Integrated CDMA, GSM 23 17.7% 32.1 6. Tata Integrated CDMA 20 9.6% 17.3 c. Government Owned 7. BSNL + MTNL Integrated GSM, CDMA 23 17.2% 31.1 Total 100.0% 181.4 Bharti Airtel an undisputed leader Source: COAI and AUSPI data as at June 30, 2007 3
Integrated play - service offerings Bharti Airtel Limited Mobile services Broadband & Telephone services Enterprise services Carriers Corporates deriving synergies.financial & operational 5
Bharti Airtel - a snapshot Over Rs 18,400 crores of revenue.amongst the top Indian companies Over Rs. 4,000 crores of profit.up 100% over FY06 Over Rs 24,500 crores of investments Rs 1,69,000 crores of market capitalization 3 rd largest in India 2 nd largest private sector company in India Note: Financials are for full year ended March 31, 2007, as per IGAAP. 4
revenue & profitability trends (In Rs. Crores) 20,000 15,000 10,000 5,000 0 Total revenues 1,504 3,055 (CAGR 65%) 5,037 8,156 11,664 18,420 2002 2003 2004 2005 2006 2007 Years Cash profit from operations (In Rs. Crores) 7,500 6,000 4,500 3,000 1,500 0 EBITDA 7,441 4,164 3,066 1,706 380 763 2002 2003 2004 2005 2006 2007 Net profit (CAGR 81%) Years (In Rs. Crores) 7,500 6,000 4,500 3,000 1,500 271 490 0 (CAGR 93%) 2,822 1,436 7,304 4,001 2002 2003 2004 2005 2006 2007 Years (In Rs. Crores) 4,750 3,750 2,750 1,750 750 (181) (205) (250) (Growth 91%) Source: Financials for the year ended March 31, 2002, 2003, 2004, 2005, 2006 and 2007 are audited and as per IGAAP. 2,028 1,212 584 4,062 2002 2003 2004 2005 2006 2007 Years Bharti Airtel demonstrating robust performance 6
first mover advantage/ product innovations Electronic Recharge / Micro Prepaid Life time validity product Easy Music 18,000 songs, Available in Over 100,000 Outlets Hello Tunes (Ring Back Tones) Being First Song Catcher Airtel Live (Portal) Blackberry Call Home Service Portfolio Manager (Stock Tracker) focus on product innovations
few recent recognitions Ranked 3rd globally for best returns to the shareholders by the BusinessWeek Magazine in The Infotech 100 list in July 2007 Airtel was chosen as the second most trusted service brand in India in the prestigious Most Trusted Brands 2007 Survey conducted by the Economic Times Brand Equity Bharti Airtel won the Forbes Global IT Excellence award for its Outsourcing arrangement with Nortel in May 2007. Conferred with the Best Emerging Market Carrier Award at the Telecom Asia Awards 2007 Adjudged Most Customer Responsive Telecom Company in India in 2006 by Avaya Economic Times Global Connect Awards Awarded Most Admired Knowledge Enterprises (MAKE) in 2006, at INFOVISION summit, October 2006 Telecom Asia Award 2006 for best Indian carrier Sunil Bharti Mittal, Chairman & Group CEO Chosen for Padma Bhushan Awards in 2007 Asia Businessman of the Year 2006 by Fortune magazine CEO of the Year - Frost and Sullivan 2006
to summarize Our Vision By 2010 Airtel will be the most admired brand in India: loved by more customers targeted by top talent benchmarked by more businesses 9
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 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 This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision. 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.bhartiairtel.in For any queries, write to: ir@bharti.in
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