Sale of 45% of the existing issued share capital of a

FULLY INTEGRATED

TELECOMUNICATIONS SERVICE PROVIDER

In Sri LankaTransaction ticket size US$ 245 Mn

•The company is the largest telecommunications services provider in Sri Lanka and one of the country’s largest companies with an annual turnover in excess of Rs 50 billion (approx: US$ 400 Mn).

• The company is the nation's number one integrated communications service provider and the leading broadband and backbone infrastructure services provider in the country. Listed on the Colombo Stock Exchange, the company's market capitalization topped Rs 70 Billion (Approx: US% 540 Mn).

• The Company has a customer base of over five million including multinational corporations, large and small corporate, public sector, retail and domestic customers.

Summary information

• The company has a long history of over 150 years, having started its operations in 1858 with the establishment of the first Telegraphic Circuit between Galle and Colombo.

• In the same year it established its first international Telegraph Communication between then called Ceylon, and India.

• Since then, the company has passed several milestones, including: in 1991 Sri Lanka Telecom became a Corporation and in 1997 the Company was privatised with the collaboration of Nippon Telegraph and Telephone Corporation (NTT) and listed on the Colombo Stock Exchange.

Early beginnings

Product PortfolioFixed line telephony

•The company is the country’s largest fixed line telephony provider.

•Though the emergence of wireless technology has hampered growth in many similar companies, the company’s fibre optic cable technologies which allows for the transmission of both voice and data has granted fixed lines a new lease of life.

•The introduction of SLT Megaline which has a “triple pay” offering of Telephone, broadband and digital TV has revolutionized fixed line telephony in Sri Lanka.

•The new product has been well received by SLT’s existing customers with 39% having migrated to the new system by end 2012. The firm expects this trend to continue and expects 66% cumulative migration to the new system by its existing subscribers by the end 2013

Product PortfolioBroadband

•Broadband – SLT possesses a strong presence in the fixed line broadband services given its first mover advantage and in 2012, it accounted for approx. 78% of total fixed broadband subscribers in Sri Lanka.

•Increasing connectivity and rising household incomes have driven the growth in broadband services in the island which has grown exponentially to a record 10-year CAGR growth of 21%.

• Fixed line broadband penetration rate for Sri Lanka stands at 1.7 per 100 subscribers compared with 5 per 100 subscribers for developing countries. This implies that the exponential growth witnessed amongst broadband subscribers in the past is likely to persist in the short-medium term given the space for growth within Sri Lanka.

Product PortfolioDigital Television

• The company’s digital TV offering which commenced operations in end 2009 is the first and only IPTV service in the country which offers interactive TV with attractive add-on services.

• The product has been well received by domestic consumers with the subscriber base which since inception has recorded a 4 fold increase by end 2012. We expect growth to continue in line with expected growth in household incomes.

• The company’s digital TV offers a platform to enjoy the best of local and international news and entertainment from around the world at a click of a button revolutionizing traditional TV experience with characteristic features such as digital quality pictures, Time Shifted TV, Rewind TV to play pause live TV and Video on Demand with content such as movies, music, educational and many more.

Product PortfolioMobile Telephony

• The company’s mobile offerings under branded separate entity has recorded a strong growth following with approx 4.8 Mn subscribers by the end of 2012 making it the 2nd largest mobile service provider in terms of market share.

• In 2012, a milestone was also reached in domestic mobile connectivity in the island with the achievement of 100% penetration rate.

• While it is expected that there will be limited growth in national subscriber base, given Mobile operator’s commitment towards investing in emerging technologies such as 4G LTE and development of value added service applications, we expect the mobile operator’s share of the national subscriber base to continue growing.

Performance Stat’s

Company statistics