RCOM Investor PPT May09

Reliance Communications
Investor Presentation
May 2009
Forward looking statements Important Note

This presentation and the discussion that follows may contain forward looking statements by Reliance Communications Ltd (RCOM) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the directors and management of RCOM about the business, industry and markets in which RCOM operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond RCOMs control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of RCOM. In particular, such statements should not be regarded as a projection of future performance of RCOM. It should be noted that the actual performance or achievements of RCOM may vary significantly from such statements.
Wireless | Infratel | Globalcom | Enterprise | Home
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Contents
Reliance Communications an integrated telco
Wireless Infratel Globalcom Enterprise Home
Key takeaways
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Reliance Communications Indias leading fully integrated & Converged service provider
Wireless

Enterprise

Mobile (CDMA & GSM) VAS (Mobile World) Wireless Data Fixed Wireless Public Access Business
Internet Data Center Broadband Leased Line Office Centrex MPLS & VPN WiMax
Tower (Infratel)

Home
DTH (Big TV) IPTV (Digital Home)
Multi tenancy towers (4x) Pan- India coverage Backhaul Support systems
Other businesses Tech Services

Leveraging Internal IT
Globalcom

Development Capabilities
Submarine cable (FLAG) Ethernet Data services Long Distance (NLD/ILD) Reliance Global Call Vanco Yipes
BPO
Expertise in Telecom
BFSI, Utilities & Media
Retail
Reliance World Reliance Mobile Store
Integrated play covering the entire value chain

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Complete range of telecom services

6th largest wireless operator in the world (customer base in a single country)
Wireless
Only Indian company to offer nationwide both CDMA & GSM services Largest network covering a billion people in India Services offered includes Mobile, Home phones, PCOs, Datacards, etc Largest portfolio of multi-tenancy towers with 4x tenancy Integrated solutions including towers, optic fiber, network management, etc
UK London Canada USA Netherland Spain Russia Austria France Netherland Japan Germany Belgium Switzerland Germany d Belgium Austria Italy Saudi Arabia Switzerland France China Italy Bahrain Japan UAE Spain Qatar Pakistan South Korea Pakistan Qatar Hong Kong Oman Bahrain India Bangladesh Oman Taiwan Malaysia Hong Kong Saudi Arabia UAE Sudan NigeriaSudan Malaysia Taiwan Sri Lanka New Zealand South Korea Nigeria South South Africa Africa Australia New Zealand
Infratel
Globalcom
Worlds largest submarine cable network with presence in 60 countries Wide range of services include Capacity services, MPLS-VPN, Ethernet, Managed services, etc One stop shop for all kinds of enterprise connectivity solutions >50% market share in high growth data products Services offered include MPLS-VPN, Centrex, Data centers, WiMax, etc Only Indian DTH operator to provide services in 6,500 towns Services offered by leveraging the existing infrastructure
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Home
Enterprise
Strategy
Objectives
Customer Growth Revenue Growth
Action Plans
Latest congestion free Next Generation network for highest quality Attractive plans & offers More revenue streams from new product launches Increased revenue from new service streams like GSM (share of VAS & Inroaming revenue) Focused participation in the entire value chain of telco business Would also be participating in the new technological developments to provide one-stop shop for all communication needs Profitable & sustainable growth Leveraging existing infrastructure for new launches leads to stable margins
Integration & Convergence Profitable Growth
Focused & profitable growth

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Building leadership position across all screens
4 screen strategy
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Recent performance
Financial Performance
4Q FY09
Revenue (Rs. Mn) EBITDA (Rs. Mn) Net Profit (Rs. Mn) 61,237 23,832 14,544
Balance Sheet Strength*

Y-o-Y
15.3% 2.9% -3.2%
(As on Dec 31, 2008)
Q-o-Q
4.7% 1.3% 3.1%
(Rs. Mn) 880,000 290,000 267,000 186,000 0.64
Assets Networth Gross Debt Net Debt Net Debt to Equity (x)
EBITDA Margin Net Profit Margin
38.9% 23.8%
-1.3ppt -0.3ppt
-4.7ppt -4.5ppt
* Balance Sheet as on 31st Dec 2008. Fiscal year 09 balance sheet will be published post the final approval of Shareholders and/ or the Honble High Court of Judicature at Mumbai on the Scheme of Arrangement for demerger of the Optical Fibre Division of the Company to Reliance Infratel Limited (RITL)
Maintaining the strong growth momentum

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Financial Highlights
Key Financial Parameters (Rs. Mn)
Revenue
9% +2
144,683 107,664 229,411 190,678
EBITDA
5% +5
57,208
Net Profit
% 37 +1
31,637 59,078
92,875 81,989
54,005
24,762
4,438
FY06
FY07
FY08
FY09
FY06
FY07
FY08
FY09
FY06
FY07
FY08
FY09
Consistent & Substantial increase in profitability

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Cost management (% of revenue) with stable margins

Margins
100% 90% 80%
42.3%
40.8%
40.2%
38.9%
Network expenses
- Increase in network cost due to
15.3%
18.2%
19.9%
22.2%
% of Total Revenue
70% 60% 50% 40% 30% 20% 10% 0% 1Q FY09 2Q FY09 3Q FY09 4Q FY09
expansion of coverage & GSM launch - Opex of other new businesses like DTH, Vanco, etc
18.6%
18.2%
SG&A expenses
17.5% 16.5%
- Focused marketing & various cost
control measures
6.6%
8.1%
7.5%
6.9%
Staff cost Access charges & LF

- Expansion of fiber optic assets &
17.2%
14.7%
14.9%
15.5%
increase in PoIs - Removal of ADC
inspite of launch of multiple new businesses

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Profitability
EBITDA Margin
50% 40% 30% 20% 10% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 Bharti RCOM Idea
30% 25% 20% 15% 10% 5% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 Idea RCOM Bharti
Net Profit Margin
Source: Company reports
Among the highest margins in the industry in spite of the launch of several new businesses Aimed at leveraging common infrastructure to protect/enhance margins
Profitable growth
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Capex intensity coming down significantly

30,000
20,000
Rs. Crore
Bharti 10,000
RCOM
0 FY06 FY07 FY08 FY09 FY10
Note: FY2010 capex amount is the companys guidance in the earnings call Source: Company reports
moving towards FCF positive

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Contents
Key takeaways
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Wireless Business
Targets the largest untapped population in the world

Low wireless penetration
140% 120% 100% 80% 60% 40% 20% 0% India China Brazil Japan US France UK
0% 0% Japan France
Leading to strong revenue growth

126%
40%
80%
86%
89%
92%
30%
26%
20%
18% 14%
48% 30%
10% 3% 2% 6%
UK
US
China Brazil
India
Source: Merrill Lynch Global Wireless Matrix, December 2008
Low penetration + High Revenue growth = Huge opportunity

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Wireless Business
Mobile subscribers in India to cross 600 mn in 2 years

700
Mobile Subscribers (mn) Penetration
60% 50% 50% 42%
400
600
Subscriber additions (mn)
15.2 13.7 15.4
386
500
400
R AG C
44
%
33% 496
596
40%
350 10.3
10.7
30% 22% 386

9.1 10.0
10.4
300 14% 9% 100 96 0 2006 2007 161
20% 256 10%
300
200
0% 2008 2009 2010E 2011E
250 Jul Aug Sept Oct Nov Dec Jan Feb Mar Mar
Year end March 31 Source: Industry estimates, COAI, AUSPI
even then there will be 600 mn unserved people in India

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Wireless Business RCOM: One of the fastest growing wireless companies globally
Among Indias top 2 operators with over 73 mn wireless subscribers
-
Prepaid subscriber additions drive growth - 93% of total subscribers
Key Performance Indicators

-
EBITDA margins among the highest in the industry - 37%... despite among the lowest tariffs in the world backed by the highest Minutes Of Usage 830 million minutes per day
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Wireless Business
Net adds market

Net adds (mn)
12.0 RCOM 10.0 Bharti Vodafone 6.0 Idea 4.0 2.0 0.0 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09
Net adds market share (%)

35.0%
Net adds (in mn)
8.0
25.0%
RCOM
Bharti 15.0% Vodafone Idea
5.0% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09
Source: COAI, AUSPI
Highest wireless subscriber acquisition in the world 5 mn in the first month of our GSM launch Achieved more than 25% market share in 7-8 telecom operator market
Significant acceleration in RCOM net adds post GSM launch

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Wireless Business
Mobility Over 73 million Happy customers Wireless Data
Fixed Wireless
Market leadership in all segments
*
*CDMA
PCO
shall replicate success with nationwide GSM service

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Wireless Business
24,000 Towns 600,000 Villages 1 Billion Indians
CDMA
GSM
Seamless coverage wherever you go

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Wireless Business Indias billion people can now expect an unbeatable choice and value proposition across. 1. 3. 5. Coverage Customer Choice Service Breadth 7. 2. 4. 6. Quality Handset Range Intl Roaming
Value Added Services
Reliance GSM Set to redefine mobility landscape in India

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Wireless Business
GSM network exploits huge capex and opex synergies

for n ew e ntran t:~ US$ 10 b n
Radio Electronics Retail Network Sales & Distribution BPO + Call Center IT Systems Billing + CRM + SAP Transport Backhaul + PoI Passive Infrastructure Leveraged for Multiple businesses incl. CDMA +GSM 3G Ready Infrastructure 85% of capex is Technology Agnostic
< 15% investment
Cape x
Nationwide GSM service at marginal incremental cost

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Wireless Business
Dual network offers additional market share levers

Existing growth momentum
Industry monthly net adds of 8 - 10 mn GSM subscribers Impetus from network expansion in semi-urban/ rural areas
Broad Market Segmentation Corporate Requirement Retail/Family Similar CUG family plans
Cross technology On-net plans: Unique Service offering
Senior executives GSM

-
Smart phones International travel
Field force RCOM CDMA

-
Large on-net talktime Remote email access
RCOM will bring both segments on-net, driving customer value & stickiness
Customer churn Probability
Low High
Mobile Number Portability (MNP)
CDMA Incumbent GSM
GSM RCOM GSM
Customer has invested in Handset Customer neither loses number nor investment in Handset
Unique advantage: Competition cant replicate

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Wireless Business
Drivers for additional revenue market share

International in-roaming revenue Participation in rapidly growing ~US$ 1 bn international in-roaming market Currently enjoyed by few GSM incumbents Extremely profitable segment GSM non-voice revenue contribution ~10% with SMS contributing ~5% vs ~1.2% in CDMA Attract high SMS/VAS usage groups who also look for trendy & sleek multimedia handsets
VAS revenue
Thru GSM Handsets Ecosystem
Mid to High-end range handset users contribute higher ARPU (incl. international roamers)
Significant revenue upside from GSM launch

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Wireless Business
Most comprehensive wireless portfolio

Technology
Advantages
Spectrum efficiency
CDMA
Unlimited usage plans PCO & FWP Mobile internet dominance ATM & PoS Near 3G experience
GSM
Wireless Data capacity Multimedia/Video capability Handset range at all price points International Roaming
GSM ecosystem - 75% of Indian mobile sector High ARPU segment In-roaming revenues
Only company to leverage strengths of both technologies

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Wireless Business
Best positioned to serve all customer segments

Segment
Light pockets
Need
-Low handset prices -Primarily incoming & low outgoing -E-mail -Browsers -Office tools -Roaming -Multimedia -Design (look & feel) -Fixed wireless -Data speeds -Data speeds -Value seeker of Handset and Minutes
Technology
GSM/EDGE
Supporting factors
-Presence of 2nd hand handsets -SIM Distribution reach -Mid and High end handset range -International Roaming
Business and Enterprise
GSM/EDGE
Lifestyle aspirants Anchored users
GSM/EDGE CDMA
-Mid and High end handset range -High data speeds possible with 1X -Low cost to operate limited mobility -High data speeds possible with 1X -Minutes bundled with handsets
Data hungry users Value seekers
CDMA CDMA
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Wireless Business
Netconnect Broadband Plus

Competitive differentiation
Fastest internet broadband service of up to 3.1 Mbps in Indias top 35 cities Seamless handover & connectivity through CDMA 1X in over 23K towns and 6 lakh villages covering 90% of the Indian population Wide reach compared to limited reach of wireline networks
- Broadband coverage expansion the wireless way
Easy plug & play USB devices Easy availability & instant activation within minutes compared to few weeks or even months in case of wired broadband
Fastest internet connectivity under wireless platform

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Wireless Business
Service Innovations: First to reach the market

Unlimited local & STD calls Mobile TV Yahoo on Reliance
Micro-billing Internet on the move MBlog MBanking MPay
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Wireless Business
Multi-channel customer delivery system

World-class design , fit out & ambience at 2,000 exclusive retail showrooms on High streets/Malls High Quality Reach & National footprint through 5,000 distributors & 1 million retailers 5,000+ Direct & indirect outbound sales force to cater to customers at their premises Dimensioned to handle over 35 mn sales transactions annually
By far the largest retail distribution network in the industry

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Wireless Business
Revenue (Rs. Mn)
46,000 44,000 42,000 40,000 38,000 36,000 34,000 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 14,000 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 15,000 41,608 41,187 43,356 44,119 45,015 17,000 16,763
EBITDA (Rs. Mn)

16,623 16,859 16,616 16,629
16,000
EBITDA Margin
80% 60% 40.3% 40% 20% 0% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 40.4% 38.9% 37.7% 36.9%
Maintained growth momentum with stable margins

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Contents
Key takeaways
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Reliance Infratel
Infrastructure Tenancy Slots Market
RITL Ground based tower
2G, 3G & BWA
700,000
400,000 200,000
RITL Roof top tower
2008A
2009A
2010E
Source: Industry Estimates Wireless | Infratel | Globalcom | Enterprise | Home

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Reliance Infratel
Infrastructure sharing
Growth drivers Operator imperatives GSM and 3G roll outs Access large rural population Spectrum scarcity vs. coverage Speed of deployment
Pressure on site sharing Active sharing allowed USO scheme for sharing infrastructure
Growth
Regulation
Government imperatives
Rural roll out Reduced cost of service Increase penetration
Key drivers of infrastructure sharing Financial & business impact
Capex burden Profitability amid falling ARPUs Network quality Focus on core business
Operator imperatives
Social responsibility
Infrastructure sharing All drivers are in place

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Reliance Infratel
Infrastructure overview
Operational in all 22 circles ~48,000 multi-tenancy towers as on March 31, 2009. Anchor customer (Reliance Communications) driven strategy Current captive tenancy of 1.6x post our GSM launch; will further increase by 3rd party (external) tenants Financial performance (FY2008)
-
Revenue: Rs. 14,566 mn EBITDA: Rs. 6,746 mn; Margins: 46.3% Total Assets: Rs. 117,205 mn
Aim to be a preferred infrastructure provider for new operators

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Contents
Key takeaways
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Globalcom Business
Business structure
Completed restructuring of our services under four core business segments of Data, Voice, WiMax and NLD
Data
Voice
WiMAX
NLD
Accelerate growth into $290 Billion communications market by providing comprehensive voice, video & data network services
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Globalcom Business
Market potential
Past scope of services
Business Unit
2008F Global Market Demand ($bn)
Typical margins
35%55% 15%-25%
WiMAX $185 bn NLD
$2.2 bn $1.5 bn
20%40%
Data $100 bn 15%35% Voice
Sources: Telegeography, Ovum, Gartner Research
Addressable market revenue is ~US$ 290 bn with EBITDA in range of 15% to 55% based on service and geography
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Globalcom Business
Voice Business
Global Reach
Retail services in U.S., Canada, U.K., Australia, New Zealand, Hong Kong and Malaysia. Reliance Global Call offers Calling services for 200 countries across the globe.
Netherland Spain Russia Austria France Netherland Japan Germany Belgium Switzerland Germany d Belgium Austria Saudi Arabia Italy Switzerland France China Italy Bahrain Japan UAE Spain Qatar Pakistan South Korea Pakistan Qatar Hong Kong Oman Bahrain India Bangladesh Oman Taiwan Malaysia Hong Kong Saudi Arabia UAE Sudan NigeriaSudan Malaysia Taiwan Sri Lanka New Zealand South Korea Nigeria South South Africa Africa Australia New Zealand
Innovative Product Suite

Reliance Global Call
- International Calling Service - Web based service delivery,
Leadership Position
Market share of 30% for ILD wholesale inbound traffic Over 2 million customers for Reliance Global Call service. Usage of Reliance Global Call accounts for 40% of total retail market calls from the United States to India.
fulfillment
Reliance Passport
- Single SIM for 110
countries with free incoming calls in 57 countries
UK London Canada USA
Market leader in International Long Distance

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Globalcom Business
Business Performance & Product Development

RGC continues to be #1 Retail Service from US user base of over 2 mn for India calling
Special promotional offers were given for Pongal, Holi, Valentines day, etc Launched South Asia based calling card portal as part of RGC expansion strategy Beta launch of MindBridge Audio conference services Reliance Global Call: New customer friendly features to existing products being added e.g. Express Dial for Java based mobile Extending RGC services to Singapore and New Zealand enterprise customers in
Continues to be #1 Retail Service for India calling from US

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Globalcom Business
Voice Business - Plan to drive profitable growth

Value adds to drive retention and usage
Loyalty and reward program Money transfer services Entertainment and content features Web based Audio and Video Conferencing
Continued Product Innovation
Launch new products like:

-
Expand Customer Base
Expand retail reach to new territories like Bahrain Aggressively target Enterprise customers through cross sell and up sell through Reliance Vanco sales team
Maintain low cost leadership while aggressively growing business

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Globalcom Business
Data Business
Global presence in over 60 countries. Worlds largest IP optical network Leadership in Global Ethernet (Yipes) and MPLS VPN (Vanco). Among top 3 IDC suppliers
Unmatched Capabilities
Blue Chip Customers

Diverse base of over 200 carriers, ISPs and content providers. Over 1,200 Blue Chip enterprise customers.
Leadership Position
Ranked amongst top 5 in Global Network Service Providers by Gartner.
Coverage
Among Top 5 Managed Network Services providers

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Globalcom Business
Data Business - Plan to drive profitable growth

Vertical Expansion
Enhance revenue contribution from higher margin value added services Sell to, sell through, sell with channel partners to extend the customer franchise
Expand Geographical Coverage:

-
Reach of cable network VPoPs Product suite
Horizontal Expansion
Low risk investment strategy based on securing prebuild commitments
Maintain low cost leadership while aggressively growing business

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Globalcom Business
WiMAX Business
Building a Spectrum Bank
Focused on acquiring licenses and spectrum in emerging markets; market size of WiMAX estimated to be US$ 10 bn by 2010
Way Forward
Operationalise WiMAX business in select geographies Leverage the low cost and scalable delivery center in Mumbai
Deliver affordable broadband access across emerging markets

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Globalcom Business
Revenue (Rs. Mn)
20,000 15,257 15,000 10,000 5,000 0 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 15,260 16,915 16,783 18,803 6,000 5,000 4,000 3,000 2,000 1,000 0 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 4,089 3,222 4,315 3,608
EBITDA (Rs. Mn)

5,025
EBITDA Margin
50% 40% 30% 20% 10% 0% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 26.8% 21.1% 21.3% 25.7% 26.7%
Short term margin impact due to VANCO acquisition

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Contents
Key takeaways
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Enterprise Business
Underserved market: Provides strong growth opportunity

Broadband market segment revenue (US$ bn)
US$ 13 bn
bn
US$ 5.5 bn
US
FY2008
Household
Source : Industry Report
FY2012
SMB + SME Enterprise
Indian Market to grow to US$ 13 bn in the next 3 years

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Enterprise Business
RCOM: Best positioned to drive growth

>50% market share in highest growth data products like IDC, Centrex solutions, VPN, etc 1 Million buildings connected across top 44 cities to our fiber network, to cross 1.5 mn by next year end Have built the largest capability in India to serve >7.5 mn Voice & Data customers
Fiber Ring
Atlantic
Meshed Core
Pacific
Who do we Serve
Servicing over 900 of top 1000 top Enterprises 250 MNCs and 50,000 SMB businesses Over 1.4 mn access subscribers
Indias leading provider of enterprise services

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Enterprise Business - IDC
IDC: Largest in India with >60% market share

Six data centres with level 3+ accreditation more than 300,000 sq ft of facilities space Hosting >20,000 systems and >1400 terabyte of information Geographic redundancy Wide & complex application hosted
-
Core Banking, ATM/ Internet Banking Complex ERP/ SAP Applications Complex Intranet/ Customized Apps. Large Messaging Applications
Expanding capacity 4 times to cater to fast growing demand

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Enterprise Business
Revenue (Rs. Mn)
8,000 6,000 4,000 2,000 0 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 5,100 5,603 6,023 6,542 7,075 4,000 3,000 2,000 1,000 0 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09 2,714 2,941 3,160 2,760
EBITDA (Rs. Mn)
2,492
EBITDA Margin
80% 60% 40% 20% 0% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09
48.9%
48.4%
48.8% 42.2%
44.7%
Consistent growth with strong margins

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Contents
Key takeaways
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Home
Indian Market
Indias TV Viewership
(as of March09)
400 350 300
2nd largest in the world 120 Mn TV Homes 90 Mn C&S Homes 12 Mn Pay TV DTH Homes
TV HH (in mn)
250 200 150 100 50 0
China
India
US
Japan
TV Technology Evolution Analog Cable Digital Cable DTH DTH to grow multi-fold by 2015
Analog cable HH 90%
Digital HH 1%
DTH HH 9%
One of the largest Pay TV markets globally

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Home Business
Big TV (DTH) - Commercially launched

Key service differentiators
-
More channel choice Pure Digital viewing 32 Cinema channels Easy program guide Quick channel select Interactive applications (iNews, iGames, iCricket, etc) Superior Mpeg 4 technology
Pioneering HD Experience in India Pioneering DVR Watch when you want

Digital viewing experience will create revolution in TV entertainment platforms
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Home Business
BIG TV Services: Complete suite of services

BroadcastTV and Radio EPG / Mini EPG Mosaic Portal
Information
News
Stock
Entertainment
Game
VoD / MoD / PVR
Karaoke / Photo Album
Services
Advertisments
Interactive Promotion
Dedicated Advertiser Location
Messaging
SMS / MMS
Mail
Polling / Voting
Commerce
Shopping / Banking
Public Service
T - Government / T - Learning
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Contents
Key takeaways
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Looking ahead
Key Takeaways
Drivers for growth
RCOM launched nationwide GSM service with presence in 20,000 towns in March 2009 RCOM GSM expanding coverage to 24K towns to cover 1 billion people by mid CY2009 Huge growth opportunity in Business segments like Infratel, DTH & expansion of Enterprise/IDC Time -to- Market advantage for launching new & unique products & services
Impact
Increases the Revenue generating ability High EBITDA margin Businesses improves the overall profitability Robust pipeline of business to support growth
Integration of Telecom, Media, IT will be levers of tremendous future growth

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Thank you

RCOM Investor PPT May09

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Reliance Communications

Forward looking statements Important Note

Wireless | Infratel | Globalcom | Enterprise | Home

Other businesses Tech Services

BFSI, Utilities & Media

Integrated play covering the entire value chain

Complete range of telecom services

Wireless | Infratel | Globalcom | Enterprise | Home

Integration & Convergence Profitable Growth

Focused & profitable growth

Building leadership position across all screens

Balance Sheet Strength*

(Rs. Mn) 880,000 290,000 267,000 186,000 0.64

EBITDA Margin Net Profit Margin

Maintaining the strong growth momentum

Consistent & Substantial increase in profitability

Cost management (% of revenue) with stable margins

- Focused marketing & various cost

Staff cost Access charges & LF

increase in PoIs - Removal of ADC

inspite of launch of multiple new businesses

Net Profit Margin

Source: Company reports

Capex intensity coming down significantly

0 FY06 FY07 FY08 FY09 FY10

moving towards FCF positive

Wireless | Infratel | Globalcom | Enterprise | Home

Targets the largest untapped population in the world

Leading to strong revenue growth

Source: Merrill Lynch Global Wireless Matrix, December 2008

Low penetration + High Revenue growth = Huge opportunity

Mobile subscribers in India to cross 600 mn in 2 years

60% 50% 50% 42%

Subscriber additions (mn)

15.2 13.7 15.4

30% 22% 386

300 14% 9% 100 96 0 2006 2007 161

20% 256 10%

0% 2008 2009 2010E 2011E

Year end March 31 Source: Industry estimates, COAI, AUSPI

even then there will be 600 mn unserved people in India

Prepaid subscriber additions drive growth - 93% of total subscribers

Key Performance Indicators

Wireless | Infratel | Globalcom | Enterprise | Home

Net adds market

Net adds market share (%)

Net adds (in mn)

Bharti 15.0% Vodafone Idea

5.0% 4Q FY08 1Q FY09 2Q FY09 3Q FY09 4Q FY09

Source: COAI, AUSPI

Significant acceleration in RCOM net adds post GSM launch

Market leadership in all segments

shall replicate success with nationwide GSM service

Seamless coverage wherever you go

Value Added Services

Reliance GSM Set to redefine mobility landscape in India

GSM network exploits huge capex and opex synergies

< 15% investment

Nationwide GSM service at marginal incremental cost

Dual network offers additional market share levers

Cross technology On-net plans: Unique Service offering

Senior executives GSM