INDIA Idea Cellular

24 April 2009 Good 4Q results & operating metrics

IDEA IN Underperform Event
ƒ Idea Cellular reported good 4Q results, with consolidated revenue of
Stock price as of 22 Apr 09 Rs 57.05
12-month target Rs 45.00 Rs29.3bn, EBITDA of Rs8.1bn and PAT of Rs2.7bn. Idea’s consolidated
Upside/downside % -21.1 results include 41.09% proportionate consolidation of Spice Communications
Valuation Rs 45.02 (SPCM IN, Rs59.4, Not rated) and 16% proportionate consolidation of Indus
- DCF (WACC 13.0%, beta 1.0, ERP 6.0%, RFR 9.0%,
TGR 3.5%) Towers (Not listed). We maintain our Underperform rating. See detailed
results in Figure 1.
GICS sector telecommunication services
Market cap Rs m 176,860 Impact
30-day avg turnover US$m 2.1
Market cap US$m 3,514 ƒ Wireless operating metrics surprised positively in a crucial quarter that
Number shares on issue m 3,100 saw the launch of RCOM GSM in 14 new circles with free minutes
pricing. ARPU and ARPM (blended tariffs) surprised positively, by 1% and
Investment fundamentals 2%, respectively, although MOU was 1% below our expectation.
Year end 31 Mar 2008A 2009E 2010E 2011E
ƒ Idea’s results have very positive read-through into Bharti’s results,
Total revenue bn 67.2 93.7 111.2 126.4 slated for 29 April, led by ARPM and ARPU surprises, as Bharti Airtel
EBITDA bn 22.5 26.6 32.1 38.8
EBITDA growth % 53.8 18.0 20.9 21.0 (BHARTI IN, Rs708, Outperform) did not participate in the price competition
EBIT bn 13.7 13.6 14.2 17.1 started by RCOM. This, even while Idea did respond to RCOM’s free price
Adjusted profit bn 10.4 8.8 10.3 10.8
offer by dropping prices on two counts – local call rate cut to 60 paise per
EPS rep Rs 3.96 3.08 3.32 3.50 minute from Rs1 per minute, and dropped Lifetime Prepaid Joining Fees to
EPS adj Rs 3.96 3.09 3.32 3.50
EPS adj growth % 107.5 -22.0 7.6 5.2 Rs25 in Mumbai and Bihar, the two newly launched circles to compete with
PE adj x 14.4 18.5 17.2 16.3 RCOM. Bharti should logically fare better than Idea.
ƒ Standalone numbers beat our estimate by 3%. Idea’s standalone numbers
ROA % 12.8 7.3 5.6 6.3 comprised all India mobile operations but excluded Spice and Indus Towers.
ROE % 36.4 9.6 6.7 6.6
EV/EBITDA x 7.8 7.6 6.3 5.2 ƒ Standalone EBITDA margin posted significant improvement. Excellent
Net debt/equity % 160.7 1.3 26.8 32.1
Price/book x 4.2 1.2 1.1 1.0 cost control helped Idea beat our standalone EBITDA estimate by 17%.
EBITDA margin in 11 existing circles was 29.2% (vs estimate of 25.6%). The
IDEA IN rel SENSEX performance, & rec new circle EBITDA loss of Rs654m was lower than our Rs984m loss estimate.
history
ƒ Idea has provided breakdown of consolidated financials. In contrast to
last quarter, Idea provided selected financial information on Indus Towers,
giving more clarity on the various moving parts in the consolidated financials.
ƒ Expect more clarity on Indus Towers operations on 4Q earnings call.
Idea is hosting its earnings conference call tomorrow at 2:30 p.m. We expect
more clarity on Indus Towers and Spice consolidation on the call.
Earnings and target price revision
ƒ No change.

Source: FactSet, Macquarie Research, April 2009

Price catalyst
(all figures in INR unless noted) ƒ 12-month price target: Rs45.00 based on a DCF methodology.
ƒ Catalyst: Margin contraction due to seven new circle launches over the April-
December 2009 period that will lead to initial losses before turning around.
Action and recommendation
ƒ We maintain our Underperform rating, given lack of earnings catalysts in
Analyst
next three quarters. We continue to favour Bharti over Idea for its superior
Shubham Majumder
9122 66533049 shubham.majumder@macquarie.com
earnings growth and cashflow profile, strong execution and more attractive
Nitin Mohta valuations.
9122 66533050 nitin.mohta@macquarie.com
Tim Smart
852 3922 3565 tim.smart@macquarie.com Please refer to the important disclosures and analyst certification on inside back cover of
this document, or on our website www.macquarie.com.au/research/disclosures.
Macquarie Research Equities - Flyer Idea Cellular

Fig 1 4Q FY3/09 results – Idea Cellular quarterly P&L

Actual Estimate
(Amoutn in Rs miilion) Dec-08 Mar'09 QoQ (%) Mar'09 Deviation (%)

Revenues
11 Service Areas 25,726 27,642 7% 26,869 3%
New Service Areas 483 985 104% 894 10%
Idea Standalone 26,209 28,626 9% 27,762 3%
Spice 1,100 1,339 22% 1,397 -4%
Indus 172 1,870 987% na na
Eliminations (171) (2,479) na na
Idea Consolidated 27,311 29,356 7% na na

EBITDA
11 Service Areas 7,570 8,069 7% 6,890 17%
New Service Areas (765) (654) -15% (984) -34%
Idea Standalone 6,805 7,415 9% 5,906 26%
Spice 223 336 51% 179 88%
Indus (54) 358 -758% na na
Idea Consolidated 6,974 8,108 16% na na

EBITDA margins
11 Service Areas 29.4% 29.2% 25.6% na
New Service Areas -158.4% -66.4% -110.2% na
Idea Standalone 26.0% 25.9% 21.3% na
Spice 20.3% 25.1% 12.8% na
Indus -31.6% 19.1% na na
Idea Consolidated 25.5% 27.6% na na

Depreciation & Amortization

Idea Standalone 3,579 3,897 9% na na
Spice 214 262 22% na na
Indus 144 162 13% na na
Idea Consolidated 3,937 4,321 10% na na

EBIT
Idea Standalone 3,226 3,519 9% na na
Spice 9 73 711% na na
Indus (198) 194 -198% na na
Idea Consolidated 3,037 3,786 25% na na

Interest and Finance cost

Idea Standalone 600 491 -18% na na
Spice 151 326 116% na na
Indus 123 229 86% na na
Idea Consolidated 874 1,046 20% na na

PAT
Idea Standalone 2,562 3,032 18% na na
Spice (141) (254) 80% na na
Indus (226) (36) -84% na na
Idea Consolidated 2,195 2,742 25% na na

Wireless Operating Metrics for Idea Standalone

Subscriber Base (m) 34.2 38.9 14% 38.9 0%

ARPU (Rs per month) 266 254 -5% 251 1%
Average MoU per user 416 402 -3% 405 -1%
Average Revenue per Minute (Rs) 0.64 0.63 -2% 0.62 2%
Total network minutes 40,254 44,224 10%

Post-paid Churn 2.7% 3.0%

Prepaid Churn 4.4% 5.3%
Blended Churn 4.3% 5.2%

Source: Company data, Macquarie Research, April 2009

24 April 2009 2
24 April 2009

Macquarie Research Equities - Flyer

Fig 2 Global emerging market telecom valuation
Macquarie - Global Emerging Market Telecom Valuation

Bloomberg Reco Price EV/EBITDA (x) PER (x) PEG ROE EBITDA CAGR EPS CAGR P/BV (x)
Company Name Ticker lcy FY3/10E FY3/11E FY3/10E FY3/11E (FY3/09-3/11E) (FY3/09E, %) (FY3/09-3/11E, %) (FY3/09-3/11E, %) FY3/10E FY3/11E
Bharti Airtel BHARTI IN OP 708 7.3 6.1 12.1 10.7 0.7 33.9 20.2 24.3 3.5 2.8
Reliance Communications RCOM IN OP 224 6.9 5.7 8.7 7.6 1.4 23.0 17.5 6.1 1.3 1.0
Idea Cellular IDEA IN UP 58 7.1 6.2 17.5 16.6 2.7 23.1 20.9 7.2 1.1 1.1
MTNL MTNL IN UP 73 7.8 7.9 80.1 -16.5 na 1.0 -0.3 na 0.4 0.4

China Mobile 941 HK N 69 4.4 4.3 10.9 11.2 -8.2 27.8 2.9 -1.3 2.4 2.2
China Unicom 762 HK UP 8 4.1 4.3 16.0 21.8 -0.5 7.4 0.2 -25.6 0.8 0.8
Indosat ISAT IJ N 5,250 4.4 4.3 12.1 10.6 0.9 12.4 3.9 14.9 1.6 1.5
SK Telecom 017670 KS OP 184,500 3.7 3.4 9.1 7.5 0.6 11.5 7.5 18.3 1.2 1.1
KT Freetel 032390 KS OP 25,600 3.3 2.7 16.8 9.7 -1.5 3.8 13.8 106.2 1.0 0.9
LG Telecom 032640 KQ OP 8,570 3.2 2.8 7.1 6.6 0.5 15.1 8.7 19.9 1.1 0.9
Digi.Com DIGI MK N 22 7.5 6.7 12.7 11.4 4.5 65.7 6.5 3.1 8.0 6.8
Axiata AXIATA MK N 2 5.8 5.1 12.3 10.6 -1.0 4.8 9.7 -21.7 0.9 0.8
Globe GLO PM OP 820 3.1 2.9 7.1 6.8 1.0 24.1 3.4 7.8 1.7 1.6
Far EasTone 4904 TT N 35 5.0 5.1 10.2 9.9 2.6 14.1 -3.0 4.1 1.9 1.8
Taiwan Mobile 3045 TT N 50 5.3 5.2 8.9 9.1 5.7 37.4 1.9 1.7 2.8 2.8
AIS ADVANC TB UP 78 5.6 5.8 13.2 12.7 -1.1 23.9 -6.4 -12.8 3.2 3.3
TAC DTAC TB UP 28 4.2 4.1 5.9 5.4 -0.3 17.0 -5.9 -22.0 1.0 0.9
MobileOne M1 SP OP 2 5.5 5.5 9.8 10.2 na 72.1 -6.3 -9.6 5.8 5.5
MTN Group Ltd MTN SJ OP 10,350 3.6 3.2 8.5 6.9 0.3 27.3 33.5 33.7 1.9 1.5
Orascom Telecom ORTE EY NR 30 3.9 3.8 7.8 6.0
Vivo Participacoes Sa VIVO3 BZ NR 33 3.0 2.8 9.9 7.5
America Movil AMXL MM NR 21 5.2 5.1 9.2 8.1
Etihad Etisalat Co EEC AB NR 36 5.8 5.7 9.5 8.4
Saudi Telecom Co STC AB NR 44 5.5 5.3 6.8 6.9
Qatar Telecom QTEL QD NR 103 4.2 4.2 4.0 3.9
Average 4.9 4.6 10.2 9.4
Average (ex-China Mobile) 4.9 4.6 10.2 9.3

RCOM's valuation (discount)/premium to Bharti -6% -6% -28% -29% -64% -64%
Idea's valuation (discount)/premium to Bharti -3% 1% 45% 55% -67% -63%

Note: Prices as of 23 April 2009.

Source: Bloomberg, Macquarie Research, April 2009

RCOM is trading at a 6% discount to Bharti on

March 2010E EV/EBITDA; Idea is trading at
only a 3% discount.

Idea Cellular
3
Macquarie Research Equities - Flyer Idea Cellular

Detailed financials for Idea Cellular

Fig 3 Idea Cellular – Income statement, fiscal year-end March

Particulars (Rs m except EPS) FY07 FY08 FY09E FY10E FY11E

Revenues
Service Revenue 43,500 67,199 93,716 111,193 126,398
Sales of Trading Goods 164 0 - - -
Total Revenues 43,664 67,199 93,716 111,193 126,398

Operating Expenses
Cost of Trading Goods (52) (0) (25) - -
(% of revenues from trading goods) 31.6%
Personnel Expenditure (2,609) (3,464) (5,125) (6,218) (6,839)
(% of total revenues) 6.0% 5.2% 5.5% 5.6% 5.4%
Network Operating Expenditure (5,336) (10,470) (18,024) (21,956) (24,268)
(% of total revenues) 12.2% 15.6% 19.2% 19.7% 19.2%
License and WPC Charges (4,487) (6,851) (10,224) (11,453) (12,893)
(% of total revenues) 10.3% 10.2% 10.9% 10.3% 10.2%
Roaming & Access Charges (7,321) (11,334) (16,801) (19,148) (21,488)
(% of total revenues) 16.8% 16.9% 17.9% 17.2% 17.0%
Subscriber Acquisition & Servicing Expenditure (5,643) (6,424) (8,405) (10,007) (11,376)
(% of total revenues) 12.9% 9.6% 9.0% 9.0% 9.0%
Advertisement and Business Promotion Expenditure (2,006) (3,225) (4,176) (5,004) (5,309)
(% of total revenues) 4.6% 4.8% 4.5% 4.5% 4.2%
Administration & other Expenses (1,558) (2,914) (4,368) (5,299) (5,389)
(% of total revenues) 3.6% 4.3% 4.7% 4.8% 4.3%
Total Operating Expense (29,011) (44,682) (67,148) (79,084) (87,562)
(% of total revenues) 66.4% 66.5% 71.7% 71.1% 69.3%

EBITDA 14,653 22,517 26,568 32,109 38,837

EBITDA Margin 33.6% 33.5% 28.3% 28.9% 30.7%
Other Income 209 175 180 178 178
Depreciation (5,637) (7,569) (11,227) (16,319) (20,135)
Amortisation of Intangible Assets (1,081) (1,199) (1,726) (1,611) (1,610)
Amortisation of Miscellaneous Expenditure - - - - 0

EBIT 8,144 13,924 13,794 14,357 17,270

EBIT Margin 18.7% 20.7% 14.7% 12.9% 13.7%

Interest Income 53 1,282 4,282 2,977 1,126

Interest and Financing Charges (3,104) (4,058) (8,174) (5,582) (5,832)

Profit Before Taxes (PBT) 5,093 11,148 9,902 11,752 12,564

Income tax (expense) / benefit (70) (725) (1,059) (1,453) (1,728)
Exceptionals - - - - 0
Profit After Taxes (PAT) 5,022 10,423 8,843 10,299 10,836

Adjusted Net Profit (pre-exceptionals) 5,022 10,423 8,843 10,299 10,836

Diluted EPS 2.15 3.96 3.04 3.32 3.50

YoY Growth (%)

Service Revenues 47.5 54.5 39.5 18.6 13.7
Total Revenues 47.2 53.9 39.5 18.6 13.7
Personnel Expenditure 46.5 32.8 48.0 21.3 10.0
Network Operating Expenditure 68.9 96.2 72.1 21.8 10.5
License and WPC Charges 48.6 52.7 49.2 12.0 12.6
Roaming & Access Charges 47.5 54.8 48.2 14.0 12.2
Subscriber Acquisition & Servicing Expenditure 72.4 13.8 30.8 19.1 13.7
Advertisement and Business Promotion Expenditure 60.1 60.7 29.5 19.8 6.1
Administration & other Expenses 6.9 87.0 49.9 21.3 1.7
Operating Expenses 52.8 54.0 50.3 17.8 10.7
EBITDA 37.3 53.7 18.0 20.9 21.0
Net Profit After Taxes 137.2 107.5 (15.2) 16.5 5.2
Diluted EPS 129.4 84.2 (23.2) 9.3 5.2
Source: Company data, Macquarie Research, April 2009

24 April 2009 4
Macquarie Research Equities - Flyer Idea Cellular

Fig 4 Idea Cellular – balance sheet, fiscal year-end March

Particulars (Rs m) FY07 FY08 FY09E FY10E FY11E

ASSETS
Cash and cash equivalents 18,199 4,975 53,370 13,203 6,459
Sundry Debtors 1,525 1,986 3,445 4,022 4,242
Inventories 179 276 413 483 537
Loans and Advances 4,000 7,742 6,116 6,914 8,547
Other Current Asset 758 521 2,205 2,574 2,857
Total Current Assets 24,660 15,500 65,549 27,196 22,642

Gross Block 70,473 110,141 182,784 254,654 301,172

Less: Depreciation (26,306) (31,242) (42,469) (58,788) (78,923)
Property and Equipment, net 44,167 78,899 140,315 195,865 222,249

Acquired intangible assets, net 11,864 17,892 16,366 14,954 13,544

Capital Work in progress 5,069 10,372 16,222 16,222 16,222
Other fixed assets 16,933 28,264 32,588 31,176 29,766

Goodwill 61 61 61 61 61
Investments 12 5,560 5,560 5,560 5,560
Deferred taxes (net) (11) (661) (1,006) (1,006) (1,006)
Total Assets 85,823 127,623 243,066 258,853 279,273

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Sundry Creditors 16,109 17,599 24,925 28,608 31,674
Bank overdraft 665 2,273 2,991 3,433 3,598
Advances from Customers 2,565 4,054 5,512 6,435 7,315
Deposits from Customers 570 557 689 804 914
Other Liabilities 1,055 1,627 2,193 2,517 2,879
Interest accrued but not due 18 93 - - -
Total Current Liability 20,982 26,203 36,310 41,798 46,382

Provisions 538 819 534 534 534

Total Current Liabilities 21,520 27,022 36,845 42,333 46,916

Secured Loans 35,398 54,549 27,071 27,071 27,071

Unsecured Loans 7,107 10,605 30,816 30,816 35,816
Total Borrowings 42,505 65,154 57,887 57,887 62,887

Stockholders' equity
Equity Share Capital 25,928.6 26,354 31,001 31,001 31,001
Preference Share Capital - - 31,360 31,360 31,360
Share Capital 25,928.6 26,354 62,361 62,361 62,361
Advance against Share capital - - - - -
Reserves and Surplus 20,371 23,134 91,253 91,253 91,253
Profit and Loss Account (24,502) (14,079) (5,279) 5,019 15,855
Total stockholders' equity 21,798 35,446 148,335 158,633 169,469
Total liabilities and stockholders' equity 85,823 127,623 243,066 258,853 279,273

Key Ratios
RoE (%) 30% 36% 10% 7% 7%
RoCE (%) 11% 13% 7% 6% 6%

Net debt 24,958 56,892 1,948 42,557 54,467

Net Debt / Equity 1.14 1.61 0.01 0.27 0.32
Gross Debt/Equity 1.95 1.84 0.39 0.36 0.4
Net Debt / EBITDA 1.7 2.5 0.1 1.3 1.4
Working Capital ex cash/Revenues (%) -33% -23% -26% -25% -24%
Net working capital days <Days of Gross Sales> -121.4 -85.2 -94.0 -91.3 -87.2
Source: Company data, Macquarie Research, April 2009

24 April 2009 5
Macquarie Research Equities - Flyer Idea Cellular

Fig 5 Idea Cellular – cashflow statement, fiscal year-end March

Particulars (Rs m) FY07 FY08 FY09E FY10E FY11E

Cashflow from operating activities

Net Profit/(Loss) after Tax 5,022 10,423 8,843 10,299 10,836

Adjustments For
Depreciation, Amortisation of assets 6,718 8,768 12,954 17,930 21,745
Interest charge and Forex 3,051 4,592 8,174 5,582 5,832
Profit on sale of current investment -81 -432 0 0 0
Provision for Bad & Doubtful Debts/Advances 368 245 0 0 0
Provision for Gratuity, Leave Encashment & ARO 160 54 -285 0 0
Provision for Fringe Benefit Tax 59 74 77 160 157
Provision for Tax (Net of Current Tax, Deferred Tax & MAT Credit) 11 651 982 1,293 1,570
Dividend income 0 0 0 0 0
Interest received -171 -850 -4,282 -2,977 -1,126
(Profit)/ Loss on sale of fixed assets/ assets discarded -2 9 0 0 0
Operating profit before working capital changes 14,961 23,433 26,463 32,287 39,015

Changes in current assets and current liabilities

(Increase)/Decrease in Sundry Debtors -590 -706 -1,459 -577 -220
(Increase)/Decrease in Inventories -70 -97 -137 -69 -54
(Increase)/Decrease in Other Current Assets 28 163 -1,684 -369 -283
(Increase)/Decrease in Loans and Advances -2,031 -3,381 1,627 -799 -1,633
Increase /(Decrease) in Current Liabilities 3,861 6,242 7,326 3,683 3,067

Cash generated from operations 16,159 25,654 32,136 34,155 39,891

Tax paid ( FBT & TDS ) -102 -431 -714 -1,453 -1,728
Net cash from operating activities 16,057 25,224 31,422 32,702 38,164

cashflow from investing activities

Purchase of Fixed assets (including CWIP ) -22,819 -55,726 -78,693 -72,070 -46,719
Investments in Subsidiaries 0 0 0 0 0
Proceeds from sale of Fixed assets 19 151 0 0 0
Sale/ (purchase) of Other Investments ( Net ) -102 -5,116 0 0 0
Interest and Dividend Received 145 923 4,282 2,977 1,126
Net cash used in investing activities -22,756 -59,768 -74,411 -69,093 -45,593

Cashflow from financing activities

Proceeds/ Advance received from issue of Share Capital 24,380 3,188 4,572 0 0
Redemption of preference shares -7,563 0 31,360 0 0
Proceeds from Long term borrowings 35,397 20,632 0 0 0
Repayment of Long Term Borrowings -15,690 -1,481 -27,477 0 0
Proceeds from Short Term Loan 17,875 22,121 30,211 0 5,000
Repayment of Short Term Loan -27,959 -18,623 -10,000 0 0
Proceeds from borrowings- Net 0 0 2,874 1,805 1,517
Short Term Loan from / to subsidiary & other Body Corporates 0 0 0 0 0
Dividends including dividend tax 0 0 0 0 0
Interest Paid -3,039 -4,517 -8,267 -5,582 -5,832
Others 0 0 68,119 0 0
Net cash from financing activities 23,401 21,319 91,391 -3,776 685

Net increase / (decrease) in cash and cash equivalent 16,702 -13,225 48,402 -40,168 -6,744
Cash and cash equivalent at the beginning 1,493 18,199 4,975 53,370 13,203
Add :
Cash and cash equivalents taken over on acquisition 5 0 0 0 0
Cash and cash equivalent at the end 18,199 4,975 53,370 13,203 6,459
Source: Company data, Macquarie Research, April 2009

24 April 2009 6
Macquarie Research Equities - Flyer Idea Cellular

Fig 6 Key quarterly operating and financial metrics – Wireless business: Bharti and RCOM
Bharti Airtel - Actuals for 3QFY09
March Year ends; Rs million 4QFY07 1QFY08 2QFY08 3QFY08 4QFY08 1QFY09 2QFY09 3QFY09A

Wireless Revenues (Rs m) 42,431 46,976 50,579 56,105 64,201 69,150 72,843 79,392
YoY growth (%) 75.8 65.3 53.2 49.3 51.3 47.2 44.0 41.5
QoQ growth (%) 12.9 10.7 7.7 10.9 14.4 7.7 5.3 9.0
Subscribers (m) 37.14 42.70 48.88 55.16 61.98 69.38 77.48 85.65
YoY growth (%) 89.7 85.1 80.6 72.5 66.9 62.5 58.5 55.3
QoQ growth (%) 16.2 15.0 14.5 12.9 12.4 11.9 11.7 10.5
Gross ARPU (Rs) 406 390 366 358 357 350 331 324
YoY growth (%) -8.1 -11.5 -16.5 -16.2 -12.1 -10.4 -9.5 -9.3
QoQ growth (%) -4.8 -3.9 -6.3 -2.2 -0.2 -2.1 -5.3 -2.0
Avg. monthly MoUs per subscriber 475 478 469 474 507 534 526 505
YoY growth (%) 10.1 8.3 3.9 1.4 6.8 11.8 12.2 6.7
QoQ growth (%) 1.6 0.7 -1.9 1.1 7.0 5.4 -1.6 -3.9
ARPM (Rs) 0.86 0.82 0.78 0.76 0.70 0.65 0.63 0.64
YoY growth (%) -16.6 -18.3 -19.6 -17.3 -17.7 -19.9 -19.4 -14.9
QoQ growth (%) -6.3 -4.5 -4.4 -3.3 -6.7 -7.1 -3.8 2.1
Total minutes carried (m) 49,240 57,125 64,375 73,840 89,058 105,217 115,834 123,626
YoY growth (%) 112.4 102.6 90.2 78.8 80.9 84.2 79.9 67.4
QoQ growth (%) 19.2 16.0 12.7 14.7 20.6 18.1 10.1 6.7
Avg. EBITDA per minute (Rs) 0.34 0.33 0.32 0.31 0.26 0.20 0.19 0.20
YoY growth (%) -10.4 -9.0 -10.3 -9.3 -24.2 -39.6 -41.0 -34.8
QoQ growth (%) -1.2 -1.1 -3.5 -3.8 -17.4 -21.2 -5.7 6.3
Wireless EBITDA (Rs m) 16,604 19,087 20,728 22,887 22,779 21,218 22,009 24,963
YoY growth (%) 89.8 84.6 70.2 62.0 37.2 11.2 6.2 9.1
QoQ growth (%) 17.5 15.0 8.6 10.4 -0.5 -6.9 3.7 13.4
EBITDA margin (%) 39.1 40.6 41.0 40.8 35.5 30.7 30.2 31.4
YoY expansion (basis points) 289.2 423.4 410.0 319.5 -365.1 -994.7 -1,076.7 -935.0
QoQ expansion (basis points) 153.4 150.0 35.0 -18.8 -531.2 -479.7 -47.0 122.8
Blended Churn 3.6% 4.0% 3.8% 3.9% 4.3% 3.8% 3.2% 2.9%
VAS as % of total revenue 10.1% 9.9% 9.8% 9.3% 9.4% 9.7% 10.0% 9.5%
YoY growth (%) -5.6 -8.3 -4.9 -10.6 -6.9 -2.0 2.0 2.2
QoQ growth (%) -2.9 -2.0 -1.0 -5.1 1.1 3.2 3.1 -5.0
Total Cell Sites 39,224 45,784 52,826 60,299 69,141 75,876 82,554 88,319
YoY growth (%) 87.0 81.9 75.9 75.8 76.3 65.7 56.3 46.5
QoQ growth (%) 14.3 16.7 15.4 14.1 14.7 9.7 8.8 7.0
Wireless Capex (Rs m) 10,706 32,806 28,661 27,538 17,995 32,227 23,396 29,012
YoY growth (%) -39.4 81.7 4.4 76.6 68.1 -1.8 -18.4 5.4
QoQ growth (%) -31.4 206.4 -12.6 -3.9 -34.7 79.1 -27.4 24.0
Total Population Centres covered 212,003 248,439 294,876 325,525 347,646 369,335 389,571 406,939
YoY growth (%) 151.2 135.2 85.0 79.7 64.0 48.7 32.1 25.0
QoQ growth (%) 17.0 17.2 18.7 10.4 6.8 6.2 5.5 4.5
Total employees 20,314 22,955 23,264 24,703 25,543 26,144 25,616 25,553
YoY growth (%) na na na 35.6 25.7 13.9 10.1 3.4
QoQ growth (%) 11.5 13.0 1.3 6.2 3.4 2.4 -2.0 -0.2

Reliance Communications - Actuals for 3QFY09

March Year ends; Rs million 4QFY07 1QFY08 2QFY08 3QFY08 4QFY08 1QFY09 2QFY09 3QFY09A

Wireless Revenues (Rs m) 29,692 33,730 37,230 39,567 41,608 41,187 43,356 44,119
YoY growth (%) 40.0 38.7 44.6 43.8 40.1 22.1 16.5 11.5
QoQ growth (%) 7.9 13.6 10.4 6.3 5.2 -1.0 5.3 1.8
Subscribers (m) 28.01 31.87 36.32 40.96 45.79 50.79 56.05 61.35
YoY growth (%) 38.6 41.5 39.8 36.6 63.5 59.4 54.3 49.8
QoQ growth (%) -6.6 13.8 14.0 12.8 11.8 10.9 10.4 9.5
Gross ARPU (Rs) 377 375 361 339 317 282 271 251
YoY growth (%) -0.5 -1.1 2.0 3.4 -15.9 -24.8 -24.9 -26.0
QoQ growth (%) 14.9 -0.5 -3.7 -6.1 -6.5 -11.0 -3.9 -7.4
Avg. monthly MoUs per subscriber 541 510 490 449 430 425 423 410
YoY growth (%) 1.7 3.9 6.3 -1.1 -20.5 -16.7 -13.7 -8.7
QoQ growth (%) 19.2 -5.7 -3.9 -8.4 -4.2 -1.2 -0.4 -3.1
ARPM (Rs) 0.70 0.74 0.74 0.76 0.74 0.66 0.64 0.61
YoY growth (%) -2.2 -4.7 -4.1 4.5 5.8 -9.7 -13.0 -18.9
QoQ growth (%) -3.5 5.5 0.2 2.5 -2.4 -9.9 -3.5 -4.4
Total minutes carried (m) 47,057 45,805 50,122 52,054 55,959 61,527 67,786 72,195
YoY growth (%) na na na na na na na na
QoQ growth (%) na na na na na na na na
Avg. EBITDA per minute (Rs) 0.27 0.29 0.26 0.30 0.30 0.27 0.25 0.23
YoY growth (%) 6.3 5.2 -4.9 12.5 10.7 -7.4 -5.6 -24.3
QoQ growth (%) 0.2 8.0 -9.9 15.3 -1.4 -9.7 -8.1 -7.5
Wireless EBITDA (Rs m) 11,511 13,392 14,873 15,819 16,763 16,623 16,859 16,616
YoY growth (%) 52.0 53.1 60.0 53.7 45.6 24.1 13.4 5.0
QoQ growth (%) 11.8 16.3 11.1 6.4 6.0 -0.8 1.4 -1.4
EBITDA margin (%) 38.8 39.7 39.9 40.0 40.3 40.4 38.9 37.7
YoY expansion (basis points) 306.6 374.1 384.6 257.1 152.0 65.6 -106.4 -231.9
QoQ expansion (basis points) 135.9 93.6 24.5 3.1 30.8 7.2 -147.5 -122.3
Blended Churn nmf nmf 1.5% 1.4% 1.4% 1.4% 1.3% 1.0%
VAS as % of total revenue 6.3% 5.7% 6.2% 6.4% 6.9% 7.6% 7.3% 7.4%
YoY growth (%) 3.3 -8.1 -1.6 1.6 9.5 33.3 17.7 15.6
QoQ growth (%) 0.0 -9.5 8.8 3.2 7.8 10.1 -3.9 1.4
Total Cell Sites na na na na na na na na
YoY growth (%) na na na na na na na na
QoQ growth (%) na na na na na na na na
Wireless Capex (Rs m) 9,860 14,973 49,685 60,605 46,442 56,926 33,260 32,508
YoY growth (%) na 110.2 231.6 401.3 371.0 280.2 -33.1 -46.4
QoQ growth (%) -18.4 51.9 231.8 22.0 -23.4 22.6 -41.6 -2.3

Source: Company data, Macquarie Research, April 2009

24 April 2009 7
Macquarie Research Equities - Flyer Idea Cellular

Fig 7 Key quarterly operating and financial metrics – Wireless business: Vodafone Essar, Idea and MTNL
Vodafone Essar - Actuals for 3QFY09
March Year ends; Rs million 4QFY07 1QFY08 2QFY08 3QFY08 4QFY08 1QFY09 2QFY09 3QFY09A
Wireless revenues (in Rsm) na na 34,891 36,300 41,887 46,474 47,498 51,481
YoY growth (%) na na na na na na 36.1 41.8
QoQ growth (%) na na na 4.0 15.4 11.0 2.2 8.4
Wireless revenues (in GBPm) na na 440 491 559 565 574 674
YoY growth (%) na na na na na na 30.5 37.3
QoQ growth (%) na na na 11.6 13.8 1.1 1.6 17.4
Subscribers (m) 26.44 30.75 33.68 35.66 44.13 49.20 54.63 60.93
YoY growth (%) 72.1 75.3 65.5 53.0 66.9 60.0 62.2 70.9
QoQ growth (%) 13.5 16.3 9.5 5.9 23.7 11.5 11.0 11.5
Gross ARPU (Rs) 405 na 361 349 350 332 305 297
YoY growth (%) -10.7 na -14.0 -15.7 -13.6 na -15.5 -14.9
QoQ growth (%) -2.1 na na -3.3 0.3 -5.1 -8.1 -2.6
Avg. monthly MoUs per subscriber 432 415 373 384 391 374 364 355
YoY growth (%) 14.3 5.9 -8.2 -10.5 -9.6 na -2.2 -7.4
QoQ growth (%) 0.7 -3.9 -10.3 3.0 1.8 -4.2 -2.6 -2.5
ARPM (Rs) 0.94 na 0.97 0.91 0.90 0.89 0.84 0.84
YoY growth (%) -21.9 na -6.3 -5.8 -4.4 na -13.6 -8.1
QoQ growth (%) -2.8 na na -6.1 -1.5 -0.9 -5.7 -0.2
Total minutes carried (m) 32,242 35,626 36,011 39,913 46,734 52,349 56,745 61,606
YoY growth (%) na na na na na na 57.6 54.4
QoQ growth (%) na na na 10.8 17.1 12.0 8.4 8.6
Blended Churn na na na na na na na na
Total Cell Sites na na na 41,000 48,000 52,000 59,000 69,000
YoY growth (%) na na na na na na na 68.3
QoQ growth (%) na na na na 17.1 8.3 13.5 16.9

Idea Cellular - Actuals for 3QFY09

March Year ends; Rs million 4QFY07 1QFY08 2QFY08 3QFY08 4QFY08 1QFY09 2QFY09 3QFY09A

Wireless Revenues (Rs m) 13,057 14,773 15,622 17,081 19,724 21,735 22,992 27,286
YoY growth (%) na 65.2 56.1 49.0 51.1 47.1 47.2 59.7
QoQ growth (%) 13.9 13.1 5.7 9.3 15.5 10.2 5.8 18.7
Subscribers (m) 14.01 16.13 18.67 21.05 24.00 27.19 30.38 34.21
YoY growth (%) na 88.9 80.2 69.2 71.3 68.6 62.7 42.5
QoQ growth (%) 12.6 15.1 15.8 12.8 14.0 13.3 11.7 12.6
Gross ARPU (Rs) 317 320 288 279 287 278 261 266
YoY growth (%) na -15.2 -14.0 -13.4 -9.5 -13.1 -9.4 -4.7
QoQ growth (%) -1.6 0.9 -10.0 -3.1 2.9 -3.1 -6.1 1.9
Avg. monthly MoUs per subscriber 387 381 360 377 411 428 417 410
YoY growth (%) na 7.0 4.7 2.2 6.2 12.3 15.8 8.8
QoQ growth (%) 4.9 -1.6 -5.5 4.7 9.0 4.1 -2.6 -1.7
ARPM (Rs) 0.82 0.84 0.80 0.74 0.70 0.65 0.62 0.65
YoY growth (%) na -20.8 -17.9 -15.2 -14.8 -22.7 -22.5 -12.3
QoQ growth (%) -6.1 2.5 -4.8 -7.5 -5.6 -7.0 -4.5 4.6
Total minutes carried (m) 15,469 17,100 18,831 22,457 27,824 33,087 36,315 40,254
YoY growth (%) na 111.2 93.4 77.8 79.9 93.5 92.8 79.2
QoQ growth (%) 22.5 10.5 10.1 19.3 23.9 18.9 9.8 10.8
Avg. EBITDA per minute (Rs) 0.27 0.30 0.27 0.25 0.24 0.22 0.17 na
YoY growth (%) na -16.1 -21.1 -14.0 -12.7 -26.4 -38.5 na
QoQ growth (%) -7.3 9.6 -8.9 -7.1 -5.8 -7.6 -23.8 na
Wireless EBITDA (Rs m) 4,363 5,128 5,107 5,672 6,606 7,219 6,024 6,950
YoY growth (%) na 69.8 43.9 53.1 51.4 40.8 18.0 22.5
QoQ growth (%) 17.7 17.5 -0.4 11.1 16.5 9.3 -16.6 15.4
EBITDA margin (%) 33.4 34.7 32.7 33.2 33.5 33.2 26.2 25.5
YoY expansion (basis points) na 93.7 -275.2 88.1 7.9 -149.6 -649.1 -773.7
QoQ expansion (basis points) 108.8 129.6 -201.9 51.6 28.6 -27.8 -701.5 -73.0
Blended Churn 4.2% 4.2% 4.5% 4.7% 4.6% 4.0% 3.9% 4.3%
VAS as % of total revenue 9.0% 8.4% 8.3% 8.0% 8.2% 8.9% 9.8% 9.5%
YoY growth (%) na -8.7 -13.5 -13.0 -8.9 6.0 18.1 18.8
QoQ growth (%) -2.2 -6.7 -1.2 -3.6 2.5 8.5 10.1 -3.1
Total Cell Sites na 13,160 17,105 21,197 24,793 27,594 33,377 39,286
YoY growth (%) na na na na na 109.7 95.1 85.3
QoQ growth (%) na na 30.0 23.9 17.0 11.3 21.0 17.7
Total capex (Rs m) na 11,062 12,352 11,946 19,161 19,817 11,950 13,525
YoY growth (%) na na na na na 79.1 -3.3 13.2
QoQ growth (%) na na 11.7 -3.3 60.4 3.4 -39.7 13.2
Total Population Centres covered 4,432 6,066 8,413 11,104 13,308 na na na
YoY growth (%) na 167.1 177.6 207.8 200.3 na na na
QoQ growth (%) 22.9 36.9 38.7 32.0 19.8 na na na
Total employees 5,532 5,638 5,865 5,923 6,107 6,380 6,521 6,670
YoY growth (%) na 27.5 27.6 27.5 10.4 13.2 11.2 12.6
QoQ growth (%) 19.0 1.9 4.0 1.0 3.1 4.5 2.2 2.3

MTNL- Actuals for 3QFY09

March Year ends; Rs million 4QFY07 1QFY08 2QFY08 3QFY08 4QFY08 1QFY09 2QFY09 3QFY09A

Wireless Revenues (Rs m) 1,974 2,241 2,523 2,329 2,409 2,298 2,332 2,269
YoY growth (%) 15.1 11.1 26.4 6.3 22.0 2.5 -7.6 -2.6
QoQ growth (%) -9.9 13.5 12.6 -7.7 3.4 -4.6 1.5 -2.7
Subscribers (m) 2.94 2.81 2.99 3.21 3.53 3.72 3.96 4.18
YoY growth (%) 43.7 25.0 26.3 26.5 20.1 32.2 32.2 30.2
QoQ growth (%) 15.9 -4.4 6.5 7.2 10.0 5.3 6.4 5.6
Blended ARPU GSM (Rs) 228 253 284 242 237 213 207 188
YoY growth (%) -24.2 -12.5 4.2 -12.6 3.7 -15.7 -27.2 -22.2
QoQ growth (%) -17.7 10.7 12.6 -14.8 -2.3 -10.0 -2.8 -9.0

Source: Company data, Macquarie Research, April 2009

24 April 2009 8
Macquarie Research Equities - Flyer Idea Cellular

Idea Cellular (IDEA IN, Underperform, Target price: Rs45.00)

Balance Sheet 2008A 2009E 2010E 2011E Profit & Loss 2008A 2009E 2010E 2011E

Cash m 10,535 58,931 18,763 12,019 Revenue m 67,200 93,716 111,193 126,398
Receivables m 1,986 3,445 4,022 4,242 Gross Profit m 38,574 48,643 58,637 67,750
Inventories m 276 413 483 537 Cost of Goods Sold m 28,626 45,074 52,556 58,649
Investments m 0 0 0 0 EBITDA m 22,513 26,568 32,109 38,837
Fixed Assets m 107,163 172,902 227,042 252,015 Depreciation m 7,404 11,227 16,319 20,135
Intangibles m 61 61 61 61 Amortisation of Goodwill m 0 0 0 0
Other Assets m 8,263 8,320 9,488 11,404 Other Amortisation m 1,364 1,726 1,610 1,610
Total Assets m 128,284 244,072 259,859 280,279 EBIT m 13,744 13,615 14,179 17,092
Payables m 17,599 24,925 28,608 31,674 Net Interest Income m -2,771 -3,892 -2,605 -4,706
Short Term Debt m 2,273 2,991 3,433 3,598 Associates m 0 0 0 0
Long Term Debt m 65,154 57,887 57,887 62,887 Exceptionals m 0 0 0 0
Provisions m 819 534 534 534 Forex Gains / Losses m 0 0 0 0
Other Liabilities m 6,992 9,400 10,763 12,115 Other Pre-Tax Income m 176 180 178 178
Total Liabilities m 92,837 95,738 101,226 110,809 Pre-Tax Profit m 11,149 9,902 11,752 12,564
Shareholders' Funds m 35,408 148,335 158,633 169,469 Tax Expense m -725 -1,059 -1,453 -1,728
Minority Interests m 0 0 0 0 Net Profit m 10,424 8,843 10,299 10,836
Other m 0 0 0 0 Minority Interests m 0 0 0 0
Total S/H Equity m 35,408 148,335 158,633 169,469
Total Liab & S/H Funds m 128,246 244,072 259,859 280,279 Reported Earnings m 10,424 8,843 10,299 10,836
Adjusted Earnings m 10,424 8,843 10,299 10,836

EPS (rep) 3.96 3.08 3.32 3.50

EPS (adj) 3.96 3.09 3.32 3.50
EPS Growth (adj) % 107.5 -22.0 7.6 5.2
PE (rep) x 14.4 18.5 17.2 16.3
PE (adj) x 14.4 18.5 17.2 16.3

Total DPS 0.00 0.00 0.00 0.00

Total Div Yield % 0.0 0.0 0.0 0.0
Weighted Average Shares m 2,635 2,868 3,100 3,100
Period End Shares m 2,636 3,100 3,100 3,100

Profit and Loss Ratios 2008A 2009E 2010E 2011E Cashflow Analysis 2008A 2009E 2010E 2011E

Revenue Growth % 53.9 39.5 18.6 13.7 EBITDA m 22,513 26,568 32,109 38,837
EBITDA Growth % 53.8 18.0 20.9 21.0 Tax Paid m -64 -714 -1,453 -1,728
EBIT Growth % 73.6 -0.9 4.1 20.5 Chgs in Working Cap m -2,574 5,673 1,868 877
Gross Profit Margin % 57.4 51.9 52.7 53.6 Net Interest Paid m -4,468 -8,174 -5,582 -5,832
EBITDA Margin % 33.5 28.3 28.9 30.7 Other m 4,925 8,069 5,760 6,010
EBIT Margin % 20.5 14.5 12.8 13.5 Operating Cashflow m 20,332 31,422 32,702 38,164
Net Profit Margin % 15.5 9.4 9.3 8.6 Acquisitions m 0 0 0 0
Payout Ratio % 0.0 0.0 0.0 0.0 Capex m -54,521 -78,693 -72,070 -46,719
EV/EBITDA x 7.8 7.6 6.3 5.2 Asset Sales m 28 0 0 0
EV/EBIT x 12.7 14.8 14.2 11.8 Other m -3,851 4,282 2,977 1,126
Investing Cashflow m -58,345 -74,411 -69,093 -45,593
Balance Sheet Ratios Dividend (Ordinary) m 0 0 0 0
ROE % 36.4 9.6 6.7 6.6 Equity Raised m 3,188 35,932 0 0
ROA % 12.8 7.3 5.6 6.3 Debt Movements m 26,294 -4,393 1,805 6,517
ROIC % 27.5 13.2 8.3 7.3 Other m -4,393 59,852 -5,582 -5,832
Net Debt/Equity % 160.7 1.3 26.8 32.1 Financing Cashflow m 25,089 91,391 -3,776 685
Interest Cover x 5.0 3.5 5.4 3.6
Price/Book x 4.2 1.2 1.1 1.0 Net Chg in Cash/Debt m -12,924 48,402 -40,168 -6,744
Book Value per Share 13.4 47.8 51.2 54.7

All figures in INR unless noted.

Source: Company data, Macquarie Research, April 2009

24 April 2009 9
Macquarie Research Equities - Flyer Idea Cellular

Important disclosures:
Recommendation definitions
Macquarie - Australia/New Zealand
Outperform – return >5% in excess of benchmark return
Neutral – return within 5% of benchmark return
Underperform – return >5% below benchmark return
Macquarie – Asia/Europe
Outperform – expected return >+10%
Neutral – expected return from -10% to +10%
Underperform – expected return <-10%
Macquarie First South - South Africa
Outperform – expected return >+10%
Neutral – expected return from -10% to +10%
Underperform – expected return <-10%
Macquarie - Canada
Outperform – return >5% in excess of benchmark return
Neutral – return within 5% of benchmark return
Underperform – return >5% below benchmark return
Macquarie - USA
Outperform (Buy) – return >5% in excess of benchmark
return (Russell 3000)
Neutral (Hold) – return within 5% of benchmark return
(Russell 3000)
Underperform (Sell)– return >5% below benchmark
return (Russell 3000)
Recommendations – 12 months
Note: Quant recommendations may differ from
Fundamental Analyst recommendations
Volatility index definition*
This is calculated from the volatility of historical
price movements.
Very high–highest risk – Stock should be
expected to move up or down 60–100% in a year –
investors should be aware this stock is highly
speculative.
High – stock should be expected to move up or
down at least 40–60% in a year – investors should
be aware this stock could be speculative.
Medium – stock should be expected to move up or
down at least 30–40% in a year.
Low–medium – stock should be expected to move
up or down at least 25–30% in a year.
Low – stock should be expected to move up or
down at least 15–25% in a year.
* Applicable to Australian/NZ/Canada stocks only
Financial definitions
All "Adjusted" data items have had the following
adjustments made:
Added back: goodwill amortisation, provision for
catastrophe reserves, IFRS derivatives & hedging,
IFRS impairments & IFRS interest expense
Excluded: non recurring items, asset revals, property
revals, appraisal value uplift, preference dividends &
minority interests
EPS = adjusted net profit / efpowa*
ROA = adjusted ebit / average total assets
ROA Banks/Insurance = adjusted net profit /average
total assets
ROE = adjusted net profit / average shareholders funds
Gross cashflow = adjusted net profit + depreciation
*equivalent fully paid ordinary weighted average
number of shares
All Reported numbers for Australian/NZ listed stocks
are modelled under IFRS (International Financial
Reporting Standards).

Recommendation proportions – For quarter ending 31 March 2009

AU/NZ Asia RSA USA CA EUR
Outperform 40.44% 49.55% 44.83% 38.49% 67.19% 43.84%
Neutral 38.60% 15.57% 39.66% 46.43% 28.12% 39.04%
Underperform 20.96% 34.88% 15.52% 15.08% 4.69% 17.12%

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24 April 2009 10
Macquarie Research Equities - Flyer Idea Cellular

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24 April 2009 11
Asia Research
Head of Equity Research Media Transport & Infrastructure
Stephen O’Sullivan (852) 3922 3566 Jessie Qian (China, Hong Kong) (852) 3922 3568 Gary Pinge (Asia) (852) 3922 3557
Shubham Majumder (India) (9122) 6653 3049 Anderson Chow (Asia, China) (852) 3922 4773
Automobiles/Auto Parts
Prem Jearajasingam (Malaysia) (603) 2059 8989 Jonathan Windham (Asia, China) (852) 3922 5417
Kenneth Yap (Indonesia) (6221) 515 7343 Alex Pomento (Philippines) (632) 857 0899 Wei Sim (China, Hong Kong) (852) 3922 3598
Clive Wiggins (Japan) (813) 3512 7856 Oil and Gas Janet Lewis (Japan) (813) 3512 7475
Dan Lucas (Japan) (813) 3512 6050 Eunsook Kwak (Korea) (822) 3705 8644
Eunsook Kwak (Korea) (822) 3705 8644 David Johnson (Asia, China) (852) 3922 4691
Heather Kang (Korea) (822) 3705 8677
Linda Huang (Taiwan) (8862) 2734 7521 Jal Irani (India) (9122) 6653 3040
Sunaina Dhanuka (Malaysia) (603) 2059 8993
Polina Diyachkina (Japan) (813) 3512 7886
Banks and Non-Bank Financials Christina Lee (Korea) (822) 3705 8670 Utilities
Ismael Pili (Asia, Japan) (813) 3512 5979 Edward Ong (Malaysia) (603) 2059 8982 Carol Cao (China, Hong Kong) (852) 3922 4075
Nick Lord (Asia, China, Hong Kong) (852) 3922 4774 Sunaina Dhanuka (Malaysia) (603) 2059 8993 Adam Worthington (Indonesia) (6221) 515 7338
Sarah Wu (China) (8621) 2412 9035 Ashwin Sanketh (Singapore) (65) 6231 2830 Kakutoshi Ohori (Japan) (813) 3512 7296
Seshadri Sen (India) (9122) 6653 3053 Pharmaceuticals Prem Jearajasingam (Malaysia) (603) 2059 8989
Ferry Wong (Indonesia) (6221) 515 7335 Alex Pomento (Philippines) (632) 857 0899
Abhishek Singhal (India) (9122) 6653 3052
Chin Seng Tay (Malaysia, S’pore) (65) 6231 2837 Naomi Kumagai (Japan) (813) 3512 7474
Nadine Javellana (Philippines) (632) 857 0890 Commodities
Christina Lee (Korea) (822) 3705 8670
Matthew Smith (Taiwan) (8862) 2734 7514 Jim Lennon (4420) 3037 4271
Alastair Macdonald (Thailand) (662) 694 7741 Property Adam Rowley (4420) 3037 4272
Chemicals/Textiles Matt Nacard (Asia) (852) 3922 4731 Jonathan Butcher (4420) 3037 4276
Eva Lee (China, Hong Kong) (852) 3922 3573 Max Layton (4420) 3037 4273
Jal Irani (India) (9122) 6653 3040 Chris Cheng (China, Hong Kong) (852) 3922 3581 Bonnie Liu (8621) 2412 9008
Christina Lee (Korea) (822) 3705 8670 Unmesh Sharma (India) (9122) 6653 3042 Henry Liu (8621) 2412 9005
Sunaina Dhanuka (Malaysia) (603) 2059 8993 Chang Han Joo (Japan) (813) 3512 7885 Rakesh Arora (9122) 6653 3054
Conglomerates Hiroshi Okubo (Japan) (813) 3512 7433
Tuck Yin Soong (Singapore) (65) 6231 2838
Data Services
Gary Pinge (Asia) (852) 3922 3557 Elaine Cheong (Singapore) (65) 6231 2839 Andrea Clohessy (Asia) (852) 3922 4076
Leah Jiang (China) (8621) 2412 9020 Corinne Jian (Taiwan) (8862) 2734 7522
Kenneth Yap (Indonesia) (6221) 515 7343 Economics
Patti Tomaitrichitr (Thailand) (662) 694 7727
Ashwin Sanketh (Singapore) (65) 6231 2830 Bill Belchere (Asia) (852) 3922 4636
Resources / Metals and Mining Rajeev Malik (ASEAN, India) (65) 6231 2841
Consumer Andrew Dale (Asia) (852) 3922 3587 Richard Gibbs (Australia) (612) 8232 3935
Mohan Singh (Asia) (852) 3922 1111 Xiao Li (China) (852) 3922 4626 Paul Cavey (China) (852) 3922 3570
Jessie Qian (China, Hong Kong) (852) 3922 3568 YeeMan Chin (China) (852) 3922 3562 Richard Jerram (Japan) (813) 3512 7855
Unmesh Sharma (India) (9122) 6653 3042 Rakesh Arora (India) (9122) 6653 3054
Toby Williams (Japan) (813) 3512 7392 Adam Worthington (Indonesia) (6221) 515 7338 Quantitative
Heather Kang (Korea) (822) 3705 8677 Polina Diyachkina (Japan) (813) 3512 7886 Martin Emery (Asia) (852) 3922 3582
HongSuk Na (Korea) (822) 3705 8678 Christina Lee (Korea) (822) 3705 8670 Viking Kwok (Asia) (852) 3922 4735
Edward Ong (Malaysia) (603) 2059 8982 Technology George Platt (Australia) (612) 8232 6539
Alex Pomento (Philippines) (632) 857 0899 Tsumugi Akiba (Japan) (813) 3512 7560
Warren Lau (Asia) (852) 3922 3592
Linda Huang (Taiwan) (8862) 2734 7521 Strategy/Country
Do Hoon Lee (Hong Kong) (852) 3922 1119
Emerging Leaders Patrick Yau (Hong Kong) (852) 3922 1264 Tim Rocks (Asia) (852) 3922 3585
Jake Lynch (Asia) (8621) 2412 9007 Damian Thong (Japan) (813) 3512 7877 Daniel McCormack (Asia) (852) 3922 4073
Minoru Tayama (Japan) (813) 3512 6058 David Gibson (Japan) (813) 3512 7880 Desh Peramunetilleke (Asia) (852)3922 3564
Robert Burghart (Japan) (813) 3512 7853 George Chang (Japan) (813) 3512 7854 Mahesh Kedia (Asia) (852) 3922 3576
Heather Kang (Korea) (822) 3705 8677 Yukihiro Goto (Japan) (813) 3512 5984 Michael Kurtz (China) (8621) 2412 9002
Michael Bang (Korea) (822) 3705 8659 Seshadri Sen (India) (9122) 6653 3053
Industrials Chia-Lin Lu (Taiwan) (8862) 2734 7526
Ferry Wong (Indonesia) (6221) 515 7335
Inderjeetsingh Bhatia (India) (9122) 6653 3166 Daniel Chang (Taiwan) (8862) 2734 7516
Chris Hunt (Japan) (813) 3512 7878
Christopher Cintavey (Japan) (813) 3512 7432 James Chiu (Taiwan) (8862) 2734 7517
Peter Eadon-Clarke (Japan) (813) 3512 7850
Janet Lewis (Japan) (813) 3512 7475 Nicholas Teo (Taiwan) (8862) 2734 7523
Prem Jearajasingam (Malaysia) (603) 2059 8989
Michael Na (Korea) (822) 2095 7222 Telecoms Edward Ong (Malaysia) (603) 2059 8982
Sunaina Dhanuka (Malaysia) (603) 2059 8993 Tim Smart (Asia, China) (852) 3922 3565 Alex Pomento (Philippines) (632) 857 0899
David Gambrill (Thailand) (662) 694 7753 Bin Liu (China) (852) 3922 3634 Tuck Yin Soong (ASEAN, Singapore) (65) 6231 2838
Insurance Shubham Majumder (India) (9122) 6653 3049 Daniel Chang (Taiwan) (8862) 2734 7516
Mark Kellock (Asia) (852) 3922 3567 Kenneth Yap (Indonesia) (6221) 515 7343 Alastair Macdonald (Thailand) (662) 694 7741
Seshadri Sen (Asia, India) (9122) 6653 3053 Nathan Ramler (Japan) (813) 3512 7875
Makarim Salman (Japan) (813) 3512 7421 Prem Jearajasingam (Malaysia) (603) 2059 8989
Ramakrishna Maruvada Find our research at
(Philippines, Singapore, Thailand) (65) 6231 2842 Macquarie: www.macquarie.com.au/research
Thomson: www.thomson.com/financial
Reuters: www.knowledge.reuters.com
Bloomberg: MAC GO
Factset: http://www.factset.com/home.aspx
Email macresearch@macquarie.com for access

Sales
Regional Heads of Sales Regional Heads of Sales cont’d Sales Trading cont’d
Peter Slater (Boston) (1 617) 598 2502 Giles Heyring (Singapore, Malaysia) (65) 6231 2888 Brendan Rake (India) (9122) 6653 3204
Michelle Paisley (China, Hong Kong) (852) 3922 3516 Angus Kent (Thailand) (662) 694 7601 Edward Robinson (London) (44) 20 3037 4902
Thomas Renz (Geneva) (41) 22 818 7712 Michael Newman (Tokyo) (813) 3512 7920 Robert Risman (New York) (1 212) 231 2555
Ajay Bhatia (India) (9122) 6653 3200 Charles Nelson (UK/Europe) (44) 20 3037 4832 Isaac Huang (Taiwan) (8862) 2734 7582
Stuart Smythe (India) (9122) 6653 3200 Rob Fabbro (UK/Europe) (44) 20 3037 4865 Jon Omori (Tokyo) (813) 3512 7838
Chris Gray (Indonesia) (6221) 515 7304 Nick Ainsworth (Generalist) (852) 3922 2010
Gino C Rojas (Philippines) (632) 857 0761
Alternative Strategies
Sales Trading Convertibles - Roland Sharman (852) 3922 2095
Greg Norton-Kidd (New York) (1 212) 231 2527
Luke Sullivan (New York) (1 212) 231 2507 Adam Zaki (Asia) (852) 3922 2002 Depository Receipts - Robert Ansell (852)3922 2094
Scot Mackie (New York) (1 212) 231 2848 Mona Lee (Hong Kong) (852) 3922 2085 Derivatives - Wayne Edelist (852) 3922 2134
Sheila Schroeder (San Francisco) (1 415) 835 1235 Mike Keen (Europe) (44) 20 3037 4905 Futures - Tim Smith (852) 3922 2113
Structured Products - Andrew Terlich (852) 3922 2013

April 09