IDEA CELLULAR LIMITED INVESTOR PRESENTATION Restricted Restricted Idea Cellular – An Overview Pan India Pure Play Wireless Operator - Voice + Data Holds 16%^ (2G+3G*+4G**) shareholding in Indus (thru ABTL). No. 3 Additionally own 9,640 Operator in India with towers 18.5% RMS(1) 170,060 (2G+3G+4G) Serving ~ 182 million sites and ~105,600km subscribers(2) of OFC capability An Aditya Birla Group Company YTD Q3FY16 No.6 Ranked Operator Voice Minutes - 584.4bn Data Traffic - 215.7bn MB in the World by Subscribers (3) YTD Q3FY16 Consolidated Revenue ~$4.0bn; EBITDA ~$1.4bn; Enterprise Value ~$13.6bn (4) ^Providence Equity Partners, through its affiliates has invested INR 20,982mn in ABTL through Compulsorily Convertible Preference Shares, convertible into equity shares representing 30.3% of the total equity share capital of ABTL post conversion of these CCPS, which in turn reflects Providence Equity Partners’ beneficial equity interest in Indus Towers of 4.85% (assuming no other change in the equity share capital of Indus Towers) 1 Revenue Market Share based on TRAI Q2FY16 revenue for UAS and Mobile licenses only. 2 VLR subs as of December 31, 2015 *3G in 21 service areas including Intra-Circle Roaming arrangements2 3 Single Country Operations, data from GSMA Intelligence as of September 2015.. **4G in 8 service areas with scheduled launch in 2 more by Mar’16 4 As of December 31, 2015 USD 1 = INR 66.33, RBI Ref rate as of December 31, 2015 Restricted Since Inception, as Idea Grew & Evolved It Re-invented itself Thrice 2011 – 2015 2006 – 2010 1998 – 2005 1997 Upgraded to 3G Services & Single Promoter Expanded to 8 added 4G Spectrum Started with 2 Service Areas Became a Pan India Service Areas From No.3 to 3-Way JV Mobile Service Provider One Amongst Top 3 No Presence No Presence 2G Service Areas Spectrum Profile 2G+3G+4G (6 LSAs) 2G+3G (7 LSAs) 2G+4G (4 LASs) 2G only (5LSAs) Broadband Spectrum (3G/4G) coverage is over 87% of existing revenue Owns 3G spectrum in 13 LSAs 3 Owns spectrum to offer 4G services in 10 LSAs Restricted India Telecom Sector Backdrop Growth Drivers Competition Regulatory Voice Top 3 operators garnered 72.8%(3) of TRAI issued regulation on prohibition Indian Active subscriber penetration Indian Mobile revenue market share of discriminatory tariff for data services (measured on VLR) at 71.7% (~907 (“RMS”). (Feb’16). million subscribers)(1) Loop exited Mumbai circle in Nov’14 post license expiry. In Mar’15 auction RCom TRAI Recommendation (Jan’16) on Low rural subscriber penetration of lost its 20 year old expiring 900MHz spectrum pricing for 700, 800, 900, (1) ~49.5% (431.6 Mn) . In FY15 ~65% of spectrum in 5 circles, though in 2 of these 1800, 2100, 2300 & 2500 MHz spectrum. new subscribers came from rural it acquired 1800MHz spectrum. However, the reserve price of 700 MHz areas. is kept at 4x of 1800 MHz. Feb’14 and Mar’15 spectrum auction Data ~91% of spectrum by Value (total industry TRAI regulation on compensation to Wireless Internet penetration at 30.6% spent of $26bn) won by only 4 operators customer for call drop (Oct’15) w.e.f. (incl. Idea) – a trend towards (300Mn)(2) of Total Mobile Subscribers 01st Jan’16. The regulation was consolidation. Nascent 9.5%(2) penetration of mobile challenged by telecom association Consolidation in sector broadband subscriber (93 Mn Subs). COAI & AUSPI & penalty is stayed by oRCom & MTS announced merger court. Strong mobile data traffic growth – oRCom & Aircel exclusive talks on (75.8% y-o-y growth for Idea Q3FY16 combining wireless business Guidelines for Spectrum Sharing vs Q3FY15) oRJIO & RCom spectrum trading and (Sep’15) and for Spectrum Trading Emerging revenue streams spectrum sharing deal (Oct’15) are announced. oIdea to acquire, through spectrum Mobile Banking & Digital Wallet trading, Videocon’s 1800 MHz spectrum IUC for domestic calls reduced from Launch of 4G services on LTE in Gujarat and UPW circles to offer 4G 20p/min to 14p/min, (No IUC for calls platform services on LTE platform. originating from or terminating on M2M, IoT & Cloud wireline), IUC for International call WiFi Increase in Mobile Broadband increased from 40p/min to 53p/min Digital content Services: Music, competition (from 1st Mar’15). Roaming charges Movies & Video, Games, Rich oLaunch of 4G services band during FY16 celling has been revised downward Messaging, VoIP etc. & FY17. ( around 100 networks)* (from 1st May’15). oNew 3G networks launch & expansion of existing 3G networks 1 As of November 30, 2015 based on TRAI report 4 2 As of June 30, 2015, TRAI performance Indicator Report *On 800 MHz, 1800 MHz and 2300 MHz spectrum 3 TRAI Q2FY16 revenue for UAS and Mobile licenses only. USD 1 = INR 66.33, RBI Ref rate as of December 31, 2015 Indian Wireless Sector – Revenue Trend Sector Quarterly Gross Revenue (INR bn) Idea – Highest Revenue Market Share (RMS) improvement Idea has grown ~2.0x faster than industry over last 4 years [4.1% RMS increase in last 3 years] Industry Idea Rs bn 473.7 RMS, 444.9 81.5% 450.0 401.6 371.3 375.0 RMS, 18.5% Q2FY16 300.0 225.0 Incremental RMS 33.3% 150.0 Others 75.0 87.6 76.7 63.7 85.6% 53.4 0.0 Idea, Q2FY13 Q2FY14 Q2FY15 Q2FY16* 14.4% In USD mn Q2FY13 Industry 5,597 6,054 6,708 7,143 Idea 805 961 1,156 1,320 *Q2FY16 revenue is negatively impacted due to reduction in IUC settlement and Cap on Roaming charges as well as increase in Service Tax rate RMS = Revenue Market Share 5 Source: TRAI revenue for UAS and Mobile licenses only. USD 1 = INR 66.33, RBI Ref rate as of December 31, 2015 Industry & Idea - Subscriber Trends Restricted In Millions Rural Subs Urban Subs Rural Penetration Urban Penetration 1200.0 200.0% • Subscriber (subs) growth in India to continue as 1000.0 162.8% 146.9% the VLR subs penetration is still at 71.7% 150.0% 800.0 • Primarily new subscriber additions are from Rural 555.7 577.8 600.0 595.9 525.3 532.7 100.0% India. Idea leads the industry rural %, with 54.9%* 400.0 of Idea’s 172 mn EoP consumer base from rural 50.0% 49.5% India. 200.0 38.3% 323.3 342.5 371.8 414.2 431.6 0.0 0.0% • Pan India mobility rural penetration at 49.5% only FY12 FY13 FY14 FY15 Nov'15 and will be the key driver for future mobility EoP subs 919 868 905 970 1009 industry subscriber growth. Only Top 3 Telecom operators with wide scale rural presence will VLR subs 683 723 791 863 907 benefit from Rural mobility future growth VLR Pen% 56.5% 59.0% 63.8% 68.7% 71.7% • Industry VLR growth revival – Post FY13 addition of In Million FY12 FY13 FY14 FY15 Nov'15 only 40 mn VLR subs, FY14 and FY15 witnessed yearly Industry EoP VLR 682.9 723.0 790.9 862.6 907.1 VLR addition of nearly 70 mn Industry Incr. VLR 112.0 40.1 67.9 71.8 44.4 • Idea enjoys highest incremental VLR Market Share, in Idea EoP VLR 105.3 120.2 137.9 161.4 176.8 2 out of last 4 years. Idea Incr. VLR 22.0 14.9 17.7 23.5 15.4 • Idea’s VLR market share improved by 3.3% to 18.7% in Idea EoP VLR MS 15.4% 16.6% 17.4% 18.7% 19.5% FY15 (from 15.4% in FY12) Idea Incr. VLR MS 19.7% 37.2% 26.0% 32.8% 34.6% VLR = Visitor Location Register (surrogate for active subscribers) Source: TRAI 6 * As of Se 30, 2015 Restricted Idea – The fastest growing Indian Telco Now One Amongst the Top 3 in Incremental Revenue Market Share RMS IRMS Q2’12-’16 FY12-15 FY14-15 31.0% 31.2% 30.3% 30.4% Telco 1 30.0% 33.2% 32.5% [ +1.2% ] 23.3% Telco 2 23.0% 23.1% 26.6% 24.4% 22.0% 22.1% [ +1.1% ] 18.5% Idea 17.2% [ +4.5% ] 27.3% 29.7% 15.8% 14.0% 14.4% 9.0% 8.4% Telco 4 [ -1.6% ] 7.7% 6.8% Telco 5 [ -3.5% ] 5.7% 5.6% Telco 6 [+1.0% ] 4.7% 5.5% Telco 7 [ -2.2% ] 4.1% 3.7% Others [ -0.5% ] Q2FY12 Q2FY13 Q2FY14 Q2FY15 Q2FY16 7 Restricted Idea 15 Service Areas – Core Strength Idea offers 3G services on its own spectrum in all its 8 8 Established Service Areas (Leadership) Leadership Service Areas and RMS RMS Spectrum Service Area Rank2 launched its 4G services in 5 Q2FY131 Q2FY161 Profile service areas during Dec’15- Kerala 33.0% 41.6% 1 2G/3G/4G 41% of India Jan’16. Maharashtra 4G launch M.P. 32.3% 41.3% 1 2G/3G/4G scheduled before Mar’16. Mobility UP (W) 25.5% 32.0% 1 2G/3G Revenue and 67.3% Maharashtra 26.3% 31.8% 1 2G/3G/4G of Idea Haryana 23.1% 27.3% 2 2G/3G/4G Revenue Punjab 20.6% 26.1% 2 2G/3G/4G Idea Incremental A.P. 17.9% 23.2% 2 2G/3G/4G RMS Gujarat 17.9% 21.7% 2 2G/3G @51.7% Total 24.1% 30.3% 1 7 Other Established Service Areas RMS RMS Spectrum 39.1% of Service Area Rank2 Q2FY131 Q2FY161 Profile India Mobility Bihar 9.9% 13.5% 2 2G Revenue H.P.