Turkcell Iletisim Hizmetleri A.s. · BIST:TCELL
Turkcell Iletisim Hizmetleri A.s — Turkcell — Investor Presentation (October 2001)
24 slides from Turkcell Iletisim Hizmetleri A.s's investor presentation, October 2001
Slide 1: Presentation to Investors, October 2001
S 3 TURKCELL Presentation to Investors October 2001
Slide 2: Notice
Notice The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the
Slide 3: Turkcell Company Overview
Turkcell Company Overview Market MarketLeader Leader Premier Premier Consumer Consumer 11.3 m 11.3m Brand Brand Subscribers Subscribers Extensive Extensive Distribution Distribution State -of-the-art State-of-the-art Network Network Network Network Wide Wide Portfolio PortfolioOf Of Voice VoiceAnd A
Slide 4: Turkish Economy
Turkish Economy New Economic Program Appointment of Mr Dervis as State Minister in charge of the Economy in March 2001 Implementation of “New Economic Program” aimed at: Floating exchange rates (Central Bank will control “extreme” fluctuations) Sustaining investor confidence and foreign capital Rest
Slide 5: Substantial Opportunities Despite Current Macroeconomic Challenges
Substantial Opportunities Despite Current Macroeconomic Challenges One of the Largest Markets in Europe ... … with Superior Growth Potential Population (m) 83 65 59 59 58 40 Mobile penetration in Europe is on 16 11 10 the average 68% Substantial growth opportunity in y y e ly in l Turkey, which has
Slide 6: Competitive Landscape
Competitive Landscape Since the launch of Aria in March 2001, there have been 3 operators in the market TIM has announced that Aria had approximately 260K subscribers at the end of Q2 2001 There have been no significant changes in the mobile market despite the arrival of new competition Telsim is st
Slide 7: Our Competitive Edge
Our Competitive Edge Large Large Subscriber Subscriber Base Base and and Segmentation Segmentation Approach Approach Strong Strong Brand Brand Recognition Recognition Continuous Continuous Introduction Introduction of of Innovative Innovative Services Services Effective Effective and and Unique Uniq
Slide 8: Introduction of Cell Family
Introduction of Cell Family Further brand recognition is realised through introduction of the family members Cell Family demonstrates awareness regarding the needs & expectations of our customers Turkcell provides selection of products & services for Cell Family members i.e. associated customer base
Slide 9: Effective Customer Relations Management
Effective Customer Relations Management Customer Relationship Management is key focus area for customer loyalty, therefore retention Data mining techniques are used for scoring customer value, and behavioral segmentation Our customer segmentation strategy enables us to; Differentiate customer servic
Slide 10: Platforms and Services
Platforms and Services GPRS / WAP Over the Air Cell Broadcast Mobile Portal Applications Platform Location Based SMS Based Services Applications INFORMATION INFORMATION ENTERTAINMENT ENTERTAINMENT SecretLover Contests CityGuide MobileGoal MobileAgenda Biorythm Finance MobileChat Remote SIM Card Acce
Slide 11: Jetbitts
Jetbitts Advantages Users A single address to reach wide range of Web, WAP and SMS services Rich content and services portfolio together with great personalisation capabilities Freedom to choose: what, when, where, how Mixture of applications that substitute for traditional media and new application
Slide 12: SurfCELL
SurfCELL SurfCELL enables WAP and GPRS users to connect directly to various Internet sites. Turkcell is the first operator in Turkey to launch this service Turkcell postpaid and prepaid subscribers can access this service easily from Turkcell Wap page SurfCELL can access web pages in 2-3 seconds by
Slide 13: Distribution Channels Strategy
Distribution Channels Strategy Turkcell created & maintained a considerable size of “Exclusive Dealership Network” providing superior subscription and after sales services Turkcell Extra Shops are developed Shop in Shop concept Scratch card sales through kiosks, gas stations and supermarkets Expansi
Slide 14: Superior Network Coverage and Quality
Superior Network Coverage and Quality As of 30 June 2001: 100% of population in cities > 10,000 98.03% of population in cities > 5,000 14
Slide 15: Network Capacity and Investments
Network Capacity and Investments USD mio 1,083 1,027 $$ 33 bn bn Cumulative Cumulative 124 126 Annual Operating Capex (a) Annual Non-Operating Capex 959 901 184 33 151 (b) 1999 2000 2001 2002 Substantial investments have already been made With completion of our GPRS investments our network is curren
Slide 16: Major Objectives of 2H 2001
Major Objectives of 2H 2001 Remain as market leader Optimize customer retention and capitalize on our large subscriber base Maintain our quality network Increase tariffs based on market conditions Continue to focus on operational efficiency Fulfill debt repayments for the remainder of the year throu
Slide 17: Financial Summary
S 3 Financial Summary
Slide 18: Operational Highlights
Operational Highlights 2000 2000 Q1 Q1 2001 2001 Q2 Q2 2001 2001 Revenue Revenue ($ ($ mn) mn) 2,225 530 416 Blended Blended ARPU ARPU ($) ($) 23.3 16.5 12.4 MoU MoU (min) (min) 103 66 65 Period Period Churn Churn 6.9% 3.7% 3.5% Capex Capex ($ ($ mn) mn) 1,027 101 61 SAC SAC ($) ($) 52 53 35 Employe
Slide 19: Financial Highlights
Financial Highlights ($ millions) 1999 2000 Q1 2001 Q2 2001 Revenues 1,581 2,225 530 416 % Growth 119% 41% 11%* (22%)* EBITDA 715 725 149 162 Margin 45% 33% 28% 39% Adjusted EBITDA 617 703 68 135 Margin 39% 32% 13% 33% Net Income/Loss 369 228 (74) (41) Margin 23% 10% (14%) (10%) * Year on year growt
Slide 20: Improved Margins
Improved Margins Pre Pre FX FX EBITDA EBITDA Post Post FX FX EBITDA EBITDA 715 725 703 617 45,2 39,0 39,0 32,6 31,6 32,5 23,5 28,1 33.9 25,9 25.8 149 162 152 12,9 138 135 68 141 107 1999 2000 Q4 2000 Q1 2001 Q2 2001 1999 2000 Q4 2000 Q1 2001 Q2 2001 EBITDA EBITDA Margin Legal Disputes Effect EBITDA
Slide 21: Funding Requirement
Funding Requirement 2001 2001 Debt Debt Repayment Repayment Schedule Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2002 2002 Schedule (US (US $M) $M) Principal Principal (US (US$M) $M) 58 159 213 7 383 Interest Interest (US (US$M) $M) 71 43 62 35 177 Requested Requested Requested Requested Key Key Covenants Covenants Ori
Slide 22: Conclusion
S 3 Conclusion
Slide 23: Investment Highlights
Investment Highlights Leading telecom player Superior brand recognition Dominant market share Introduction of innovative data services Large domestic market Total population of 65 million in Turkey Low mobile penetration rates in Turkey Significant potential for fixed/mobile substitution Solid opera
Slide 24: Q&A