Investor Presentation

Bharti Airtel Limited

July 2008
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
 The Road Map

India

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India – An Overview

Key Statistics

Population 1,110m
Area 3.3 mn sq km
GDP ~ $ 900 Bn
GDP growth (Q2FY08) 8.9%
Inflation (FY08) ~ 4.5%
Wireless penetration ~ 25%

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 India – placing in the world

4th Highest GDP in PPP terms 2nd Highest GDP Growth 2003-2006

China
14,000 India
11,628
Russia
10,500 Mexico
(In USD Bn)

Brazil
7,124
7,000 US

3,774 Canada
3,363
2,326 UK
3,500
Japan
France
0
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
US China Japan India Germany

¨ among the top 5 economies

¨ one of the fastest growing economies

Source: World Development Indicators 2006 & Citigroup Estimates

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 India – consumption driven growth

ƒ Rising income
level
60yrs &
above
15-59 yrs 0-14 yrs
6.9%
57.7% 35.4%

ƒ Increasing Increasing
consumerism consumer
spend

ƒ Largest youth population ƒ Growing

ƒ Growing literacy rate availability of
ƒ Large pool of professionals and
technocrats
retail credit

¨ telecom sector …..one of the key beneficiaries

Source: Population data as per projections of the National Commission on Population, Dec 2006

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 Indian Telecom

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 Indian telecom – growing share in world telecom

- Total Telecom Base ~ 320 Million 3rd largest in the world

- Tele-density ~ 27% Lowest in the World
- Wireless Sub Base ~ 280 Million 3rd largest in the world
- Wireless Penetration ~ 25% Lowest in the world
- ARPU ~ USD 9 One of the lowest
- Mou/Sub/Month ~ 450 minutes 3rd highest in the world
- Realised RPM ~ 2 US cents/ min Lowest in the world
(A ll Inc lus iv e )

- Fixed line Sub Base ~ 40 Million

- Broadband Sub Base ~ 4 Million Large potential market

¨ indian telecom – well placed in world telecom space

Source: Based on data in Global Wireless Matrix 4QCL07- Merrill Lynch .TRAI data as at May 31, 2008

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 Indian telecom – growth trajectory

350 30.0%
317
300 25.0%

Telecom subscribers (Mn)

278 250
300 25% 20.0%
Wireless Subscribers (Mn)

Tele-density
33

Wireless Penetration
240 20%
200

GR 15.0%
180
81%
15% 150
CA
GR 10.0%
CA
120 10% 100

60 5% 50 23 5.0%
1
0 0% 0 0.0%
Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 May-08 Mar-99Mar-00Mar-01Mar-02Mar-03Mar-04Mar-05Mar-06Mar-07 May-
08
Wireless Wireless Penetration
Telecom subscribers (LHS) Tele-density (RHS)

Indian telecom wireless led growth

¨ Largest country based on absolute net additions …

Source: TRAI and AUSPI & COAI data as at May 31, 2008

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competitive landscape - wireless

24.0%
75.0 25.0%
66.8 17.6%
60.0 17.6%
16.3% 20.0%

45.0 49.0 48.8 15.0%

45.2
9.4% 9.2%
30.0 5.9% 10.0%
40.7 26.1 25.5
15.0 30.9 30.3 30.6 5.0%
16.6 16.4 9.7
15.3
0.0 0.0%

(GSM)+BPL
(GSM+CDMA)

Tata (CDMA)
MTNL(GSM+CDMA)
Bharti Airtel (GSM)

Idea (GSM)

(GSM+CDMA)
Vodafone
Reliance

Others
BSNL &

Customers (May'08) Customers (May'07) CMS (%)

¨ highly competitive – top 4 garnering over 75% share

Source: TRAI data as at May 31, 2008. Vodafone subscriber base included BPL operations in Mumbai.

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 Indian wireless – growth potential…

market estimates Subs in

Country Pen / Pop
Mn.
UBS (Yr '10) 459
India in 2010 (if) 500 45%

Merrill Lynch (Yr '10) 453 Current Status (Dec'07)

China 547 41%
Macquarie (Yr '10) 450 USA 255 84%
Russia 173 122%
Go ldman Sachs (Yr '10) 447 Brazil 122 65%
Japan 105 82%
Citigro up (Yr '10) 438 UK 74 122%
Philippines 54 61%
Credit Suis s e (Yr '10) 417
Thailand 53 80%
Korea 44 90%
Ko tak (Yr '10) 394
South Africa 42 87%
Malaysia 23 87%
J P Mo rgan (Yr '10) 383
Singapore 6 125%
0 50 100 150 200 250 300 350 400 450 500 world average 55%
Wireless Subscribers (Mn)

¨ key growth drivers

ƒ affordability (falling handset prices, lowest tariffs)
ƒ availability (network, distribution)

Source: Based on data in Global Wireless Matrix 4QCL07- Merrill Lynch.

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 Bharti Airtel Limited

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customer trends (wireless +fixed line)

9 months

80 14 months > 70
Customers in millions

60 129 months 50

40
25
20 12
0.02
0

Jun-08
Nov-95

Mar-05

Jul-06

Sep-07
¨ First Indian private telecom company to have achieved the milestone of
50 million customers

Source: Company database

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 a snapshot - operational

Total Customers 69 mn
Largest integrated private
Mobile 67 mn
telecom Operator
Telemedia 2 mn
Mobile coverage
Census Towns 5,023 (out of 5,161)
Non - Census towns & villages 342,623 (out of 586,000) Extensive mobile coverage
Population coverage 71%
Telemedia Coverage 94 cities High revenue potential areas
Total minutes on network ~ 420 bn
On Roll Employees No. 25,543 High employee productivity
Distribution outlets > 860 k One of the widest reach
Optic fiber laid (national) ~ 74,000 R.Km
i-2-i & SE-ME-WE4
International Bandwidth Unity & I-ME-WE & AAG Connectivity to the world
Cable landing station

¨ expanding operations

Note: Customers are as at end of May 31, 2008 & operational data is as at the end of fourth quarter ended Mar 31, 2008. Total minutes have been annualized based on Q4FY08 results

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 a snapshot - financial

Company Profile Largest private telecom operator

..…
bas e d o n te le c o m c us to m e rs

Investments ~ USD 12 bn

Revenues ~ USD 7 bn

EBITDA ~ USD 3 bn

Net Profits ~ USD 1.7 bn

Market Capitalisation ~ USD 35 bn

A m o ngs t the to p 5 lis te d e ntitie s in India

¨ poised to….. create wealth

Note: Financials are as per FY08 USGAAP results, except Market Capitalization.

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 overall financial performance

Amount in USD Million, except ratios

Quarter Ended Year Ended
Parameters Mar 31, Mar 31, Y-o-Y Mar 31, Mar 31, Y-o-Y
2008 2007 Growth 2008 2007 Growth
Revenues 1,954 1,348 45% 6,753 4,628 46%
EBITDA 813 560 45% 2,841 1,862 53%
EBITDA Margin 41.6% 41.5% 42.1% 40.2%
Cash Profit from Operations 759 548 38% 2,783 1,826 52%
Earning before tax 528 377 40% 1,912 1,221 57%
Net Profit 463 338 37% 1,674 1,064 57%

¨ robust growth……on all parameters

Source: Results for the fourth quarter and full year ended March 31, 2008 as per US GAAP.

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 overall performance trends
Customer Base Total Minutes on Network (Bn)

72.0 64.3
57.3 62.0 115.0 105.0
60.0 55.2
51.0 100.0
44.7 48.9 87.9
48.0 39.0 42.7 77.1
37.1 85.0
68.7
36.0 70.0 59.7
24.0 55.0
12.0 40.0
0.0 25.0
Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408
Total cust(Mn) Mobile (Mn)

Profitability Ratios
Revenues & Margins Return Ratios
45% 42%
41% 41%
38% 39%
40%
1,954 33%
2,000 1,767 45.0% 35% 33%
32%
1,750 40.8% 1,594 42.5% 29% 29%
1,455 30%
1,500 42.6% 40.0%
1,251
1,250 37.5% 25%
1,000 35.0%
20%
750 32.5%
500 30.0% 15%
Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408

Revenues (USD Mn) EBITDA Margin (%) ROE (LTM) ROCE (LTM)
Note: 1) All the financials are as per United States Generally Accepted Accounting Principles (US GAAP).
2) Total minutes are gross of inter-segment eliminations.

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 earnings & debt servicing

40.0 1.6
37.46

1.2
35.0
gross debt: USD 2,425 Mn

Times
Times

0.8
0.57 net debt: USD 1,045 Mn
30.0 0.37
0.4
shareholders equity: USD 5,561 Mn
28.48

25.0 0.0
Q4FY07

Q4FY08
Interest Coverage Ratio (LHS) Net Funded Debt to EBITDA (LTM) (RHS)

¨ low gearing……high Interest cover……….further leverage available …..

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 mobile services

customer base (May'08) 66.83 mn

wireless market share (May'08) 24.0%
net additions (May'08) 2.46 mn
operational (as at end of Mar'08)
mobile minutes carried (Q4FY08) ~90 Bn Min
census towns 5,023
non census towns & villages 342,623
population covered 71%
strategy mass market

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 mobile performance trends

Customer Base (Mn) Revenues & Margins

1,800 39.1% 42.0%

Y )
Y-on-
67% (
70.0 1,604
62.0 38.0%
60.0 55.2 1,500
48.9 1,402 34.0%
50.0 42.7 35.5%
37.1 1,264
40.0 1,174 30.0%
1,200
30.0 1,060
26.0%
20.0
10.0 900 22.0%
Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408
Revenues (USD Mn) EBITDA Margin (%)

Customer Net Additions & ARPU MoU/Sub (Min) & Total Minutes on Network

7.5 11.0 89,058

6.8 520 100,000
507
6.5 6.2 6.3
10.1 490 475 478 474 80,000
5.6 9.0 469
5.5 5.2 49,240
8.9 460 60,000

4.5 430 40,000

7.0
3.5 400 20,000

2.5 5.0 370 0

Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408
MoU/Sub (Min) Total minutes on Network (Mn Min)
Net Additions (Mn) ARPU (USD)

Note: All the financials are as per United States Generally Accepted Accounting Principles (US GAAP).

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telemedia services

customer base (May'08) 2.36 mn

DSL customers (% of total cust.) ~35 %
net additions (May'08) 37 k
coverage (as at end of Mar'08) 94 cities
strategy cherry picking

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enterprise services – carriers NLD
Voice Network

Jalandhar

Chandigarh

Delhi
Jaipur Lucknow

Ahmedabad
Bhopal
Kolkata
Nagpur

Mumbai
Hyderabad

Bangalore Chennai

Coimbatore
Ernakulam

captive traffic (group traffic) ~ 70 %

Legend NLD minutes carried (Q4FY08) 9.4 Bn Min
Existing OFC Route optic fibre capacity (Q4FY08) 73,787 km
Under Execution

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enterprise services – carriers ILD
Major international carriers connected to the ILD gateways through i2i, SMW4,
SMW3 and Flag Submarine cable systems

Legend SEA-ME-WE-4 Connectivity to West

i-2-i i-2-i Connectivity to East
SEA-ME-WE-4 ILD minutes carried (Q4FY08) 1.8 Bn Min
Other Int’l Connectivity ILD gateways 4
Int’l Gateways Connectivity landing stations 2

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enterprise services - corporates

Mobile services Voice services

Satellite services Managed data &

Internet services
competition limited
segment one stop telecom solution
1000 top large corporates
target 2,000 - 3,000 medium multi
location companies
leveraging integrated play
Managed e - Managed customized
business services integrated solutions

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non-mobile performance trends
Customer Base – Telemedia (overall) & Broadband (DSL) Telemedia ARPUs (in USD)

2,500 1,000 32.0

751 28.0 28.7 28.5 28.4
795 27.8
2,250 705 800 28.0
643 653
2,283
2,178 24.0
2,000 2,075 600
1,972
1,750 1,871 400 20.0

1,500 200 16.0

1,250 0 12.0
Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408
B&T Customers ('000) DSL Customers ('000)

Revenues & Margins

39.7%
700 35.4% 40.0%
599
600 557 32.0%
516
500 471 464 24.0%

400 16.0%

300 8.0%

200 0.0%
Q407 Q108 Q208 Q308 Q408

Revenues (USD Mn) EBITDA MARGIN (%)

Note: All the financials are as per United States Generally Accepted Accounting Principles (US GAAP).

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our partners - alliances with best in class

Strategic Equity Partner Business Partners

Asia’s telecom
power house
ƒIBM Daksh
ƒMphasis
ƒHinduja TMT
ƒAegis BPO
ƒNortel
ƒBharti Infratel
ƒIndus Towers

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performance dashboard - 3 line graph

2,400 76.5% 80.0%

73.7% 74.4%
70.8% 71.1%
2,200
70.0%
Gross Revenue (USD Mn)

2,000
1,984
60.0%
1,800

1,767
1,600
50.0%
1,608
1,400 1,498

1,368 40.0%
1,200 33.3% 32.6% 32.4% 32.7%
31.7%
1,000 30.0%
Q407 Q108 Q208 Q308 Q408
Gross Revenue (USD Mn) (LHS) Opex to Gross Rev (RHS) Revenue (annualized) to Gross Cummulative Capex (RHS)

(operating efficiency) (capital productivity)

¨ growth in revenues + cost efficiencies + capital productivity = profitability

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transformational business innovations – outsourcing & capex
Outsourcing
Vendors Features/ Advantages
Deals
ƒ Pricing linked to capacity - US$ per erlang
Network ƒ Payments linked to
outsourcing & ƒ usage and network quality Assured network
ƒ service level agreements (SLAs)
Maintenance quality
ƒ Ease in network planning

ƒ Pricing & payment as a % of revenues

ƒ SDP – to deliver Service Delivery Platform enabling
delivery of content to end – user devices like mobiles,
Information PCs etc
Technology ƒ SLA’s for quality and deployment.

ƒ Bharti Infratel ƒ Increased focus on sharing passive infrastructure

Passive ƒ Indus Towers
Infrastructure ƒ Reduced capex spend

ƒ IBM Daksh
ƒ Mphasis ƒ Enhanced & consistent customer experience
Call Center ƒ Common platform across the group
ƒ Hinduja TMT
ƒ Aegis BPO ƒ Scalable business model to meet business needs
Outsourcing
ƒ Nortel

¨ focus on core competence

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 first mover advantage/ product innovations
Easy Music
Electronic Recharge / 18,000 songs,
Micro Prepaid Available in
Over 100,000
Outlets
Life time validity product

Hello Tunes
(Ring Back
Tones)
Song Catcher

Airtel Live
(Portal) Call Home Service

Portfolio Manager
(Stock Tracker)
Money Transfers
Blackberry

¨ focus on product innovations

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 few recent recognitions
ƒ Awarded with top honors at the GSMA Mobile World Congress Conference 2008 in
Barcelona for the category “Best Billing/ Customer Care solution.”
ƒ Adjudged as the ‘Best Carrier India‘ at the Telecom Asia Award 2008
ƒ Ranked 2nd in the survey of India’s Most Respected companies by Businessworld
ƒ Adjudged as ‘Company of the Year’ at the CNBC India Business Leader Awards
2007
ƒ Economic Times ‘Company of the year 2007’ award for corporate excellence.
ƒ Outlook Money-NDTV Profit award in the Best Value Creator category in October
2007
ƒ Ranked 3rd globally for best returns to the shareholders by the BusinessWeek
Magazine in ‘The Infotech 100’ list in July 2007
ƒ 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

Sunil Bharti Mittal, Chairman & Group CEO

ƒ GSM Association Chairman’s Award 2008
ƒ Chosen for Padma Bhushan Awards in 2007
key focus areas

highest quality network, seamless customer service, a consistent

Customer experience brand experience

Being first product innovations

Speed to market network reach, product availability (distribution)

Economies of scale operating cost & capex

Strong management management depth & creating leadership

execution

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to summarize

Our Vision

By 2010 Airtel will be the most admired brand in India:

ƒ loved by more customers

ƒ targeted by top talent
ƒ benchmarked by more businesses

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