Slide 1: The Qtel Group: Implementing the 2020 Vision
The Qtel Group I l Implementing ti the th 2020 Vision Vi i Analyst Presentation, Q3 2008 D h Q Doha, Qatar t October 28, 2008 CONFIDENTIAL
Slide 2: Qtel overview
Qtel overview • Qatar-based integrated telecom operator • Market cap of QR 21.5 billion as of 30 Sept 2008 • Consolidated revenue increased 107% to QR 14.27 billion • Group EBITDA of QR 6.99 billion for the first nine months of 2008 • Record profit of QR 1.83 billion for 9M2008 • Qtel has business i
Slide 3: Qtel Group structure and presence
Qtel Group structure and presence Operations in the MENA, Subcontinent and Asia Pacific regions with increasing focus on growth markets Contribution to Group p EBITDA <5% 5–10% 10–20% >20% Qtel’s Global footprint Qtel MENA Operations p ((Controlling g stakes)) Navlink (Q (Qtel stake:38%) %) wi-tribe
Slide 4: Aligned to Qtel Group strategic vision
Aligned to Qtel Group strategic vision Achieve 2020 goal by continued expansion into 3 business lines and 3 geographies “To be among the top 20 telecommunications companies in the world by 2020” Middle East and North Africa Asia Pacific The Subcontinent Consumer Mobile Consumer Broadband Corporate M
Slide 5: Continued expansion supporting Qtel's strong growth platform
Continued expansion in supporting Qtel’s strong growth platform “Telecom Deals of the Year” 2007 “ME Operator of the Year” 2007 Shinawatra - Cambodia LTC- Laos 2008 2007 2006 2005 > $6.5 B spent, positioned well for future growth 5
Slide 6: Next steps in Indosat transaction
Next steps in Indosat transaction • Supreme Court ruling upholds District Court decision Legal / against Temasek, STT. Governance • Clearance obtained to p proceed with full tender offer for minorities ; limit set to 65%. • Board of commissioners changed g . Operational • Launch post merger integrat
Slide 7: Today's agenda
Today’s agenda • Introduction • Q3 2008: Implementing the 2020 Vision • Qtel Group KPIs • Group highlights • Key operations overview • Looking Forward • Appendix – Qtel Group structure and presence 7
Slide 8: Group highlights
Group highlights Recent performance confirms Qtel’s successful approach towards its growth targets 1 Customers 2 Consolidated 3 Consolidated 4 Net profit 5 Debt (In thousands) revenue(1) EBITDA(1) attributable to (In million QR) (In million QR) (In million QR) shareholders(1) 287% (In million QR) 10
Slide 9: Group highlights: Customers overview
Group highlights 1 Customers overview Total Customer(1) base evolution Country(2) contribution breakdown (In thousands) (% share of total base) 287% 79 3.1% 2 5% 2.5% 55,67 2 3% 2.3% 100.0% 9.0% 7.5% 10.0% 14,431 65.1% 1,551 0.4% Sept '06 Sept '07 Sept '08 Sep 08 Qatar Oman Kuw ait Algeria Tunisia I
Slide 10: Group highlights: Revenues overview
Group highlights 2 Revenues overview Consolidated Revenue(1) evolution Country(2) contribution breakdown (In million QR) (% share of total revenue) 107% (3) Qatar, Indonesia (post-acquisition), Kuwait, Iraq, Algeria and Tunisia contributed 28%, 17%, 16%, 14%, 9% and 7% respectively to total revenue
Slide 11: Group highlights: EBITDA overview
Group highlights 3 EBITDA overview EBITDA evolution Country(1) contribution breakdown (In million QR) (% share of total EBITDA) 101% (2) Qatar, Kuwait, Indonesia (post acquisition), Iraq, and Tunisia contributed 37%, 17%, 16%, 14% and 8% respectively to the Group EBITDA Source: Qtel Note: (1) Post a
Slide 12: Group highlights: Net Profit overview
Group highlights 4 Net Profit (Attributable to Qtel shareholders) overview Net profit (1) evolution Country contribution breakdown (In million QR) (% share of total net profit) 41% (2) Qatar, Oman, Kuwait, Tunisia, Iraq and Indonesia (post acquisition) operations contributed to Net Profit while othe
Slide 13: Group highlights: Debt
Group highlights 5 Debt (In million QR) Country breakdown ((% of debt)) 28,632 21,241 A significant portion of the total debt sits at the Qtel level, while Indosat also carries it’s own debt obligations which as at 30 September S t b 2008, 2008 represented t d about b t 26% off group debt. d bt Sour
Slide 14: Group highlights: CAPEX overview
Group highlights 5 CAPEX overview (9 months to September 2008) CAPEX evolution Country contribution breakdown (In million QR) (% share of total CAPEX) 216% 100.0% 11.1% 502 5.9% 4,5 5.6% 15.5% 2.4% 4.2% 52.8% 1,423 657 2.5% 9m '06 9m '07 9m '08 9m '08 Qatar Oman Kuw ait Algeria Tunisia Iraq Indonesi
Slide 15: Today's agenda
Today’s agenda • Introduction • Q3 2008: Implementing the 2020 Vision • Qtel Group KPIs • Group highlights • Key operations overview • Looking Forward • Appendix – Qtel Group structure and presence 15
Slide 16: Qatar
Qatar Qtel Market snapshot Pop : 1.4 mn Operator: Integrated Pop growth: 18% Qtel Stake: 100% Qatar Qtel GDP: $92 bn Position: 1/1 GDP pper capita: p $ $53,010 , Q3 Sub ggrowth: 2% Q3 Blended ARPU: QR 193 Operator importance to group Population: 0.4%; Customers: 3%; Revenue: 28%; EBITDA: 36% Revenue
Slide 17: Nawras (Oman)
Oman Draft Nawras Market snapshot Pop: 2.8 mn Operator: GSM Nawras Pop growth: 3% Qtel Stake: 56% Oman GDP: $51.2 bn Position: 2/2 O GDP pper capita: p $ $23,730 , Q3 Sub ggrowth: 10% N Q3 Blended ARPU: QR 83 Operator importance to group Population: 0.75%; Customers: 2.5%; Revenue: 6.7%; EBITDA: 5.1
Slide 18: Wataniya (Kuwait)
Kuwait Wataniya Market snapshot Pop : 3.6 mn Operator: GSM Wataniya Kuwait Pop growth: 3% Qtel Stake: 51% GDP: $157 bn Position: 2/2 K GDP pper capita: p $ $44,530 , Q3 Sub ggrowth: 0.4% W Q3 Blended ARPU: QR 192 Operator importance to group Population: 1%; Customers: 2.3%; Revenue: 16.2%; EBITDA: 1
Slide 19: Nedjma (Algeria)
Algeria Nedjma Market snapshot Pop : 34.4 mn Operator: GSM Nedjma Algeria Pop growth: 3% Qtel Stake: 45% GDP: $164.4 bn Position: 2/3 A GDP pper capita: p $ $8,260 , Q3 Sub ggrowth: 1% N Q3 Blended ARPU: QR 28 Operator importance to group Population: 9%; Customers: 9%; Revenue: 9.2%; EBITDA: 5.5% Re
Slide 20: Tunisiana (Tunisia)
Tunisia Tunisiana Market snapshot Pop : 10.4 mn Operator: GSM unisiana Tunisia Pop growth: 0% Qtel Stake: 25% GDP: $40.78 bn Position: 2/2 T GDP pper capita: p $ $7,850 , Q3 Sub ggrowth: 7% Tu Q3 Blended ARPU: QR 51 Operator importance to group (Revenue and EBITDA @50%) Population: 3%; Customers: 7.
Slide 21: Wataniya (Maldives)
Maldives Wataniya Market snapshot Pop : 0.35 mn Operator: GSM Wataniya Maldives Pop growth: 0% Qtel Stake: 51% GDP: $1.2 bn Position: 2/2 GDP pper capita: p $ $4,908 , Q3 Sub ggrowth: 15% W Q3 Blended ARPU: QR 57 Operator importance to group Population: 0.1%; Customers: 0.2%; Revenue: 0.4%; EBITDA:
Slide 22: Asiacell (Iraq)
Iraq Asiacell Market snapshot Pop : 29.4 mn Operator: GSM Asiacell Pop growth: 1% Qtel Stake: 30% Iraq GDP: $75.6 bn Position: 2/3 GDP pper capita: p $ $3,820 , Q3 Sub ggrowth: 16% A Q3 Blended ARPU: QR 49 Operator importance to group Population: 8%; Customers: 10%; Revenue: 14.3%; EBITDA: 14.1% Rev
Slide 23: Indosat (Indonesia)
Indonesia Indosat Market snapshot Pop : 237.5 mn Operator: Integrated donesia ndosat Pop growth: 1% Qtel Stake: 40.81% GDP: $510.3 bn Position: 2/6 Ind GDP pper capita: p $ $3,840 , Q3 Sub ggrowth: 9% In Q3 Blended ARPU: QR 15 Operator importance to group Population: 63%; Customers: 65.1%; Revenue:
Slide 24: Bravo (KSA)
KSA Bravo Market snapshot Pop : 24.9 mn Operator: iDen Bravo Pop growth: 3% Qtel Stake: 28% Saudi GDP: $509.2 bn Q3 Sub growth: 6% GDP pper capita: p $ $24,830 , Q3 Blended ARPU: QR 111 B Operator importance to group Population: 7%; Customers: 0.2%; Revenue: 0.9%; EBITDA: (1)% Revenue evolution Cust
Slide 25: Today's agenda
Today’s agenda • Introduction • Q3 Implementing the 2020 Vision • The Qtel Group Q3 2008 Results • Looking Forward • Appendix – Qtel Group structure and presence 25
Slide 26: 2008 objective progress
2008 objective progress The Qtel Group continues to focus on four priorities in 2008 Objectives 9M progress update 1 • Maintain healthy EBITDA in mature markets • EBITDA margins of 64% and 51% in • Accelerate value capture in markets such as Qatar and Kuwait respectively for 9M Algeria Tunisia and O
Slide 27: Safe Harbor Disclaimer
Safe Harbor Disclaimer • Qatar Telecom (Qtel) Q.S.C. cautions investors that certain statements contained in this document state management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements • Management wishes to caution the reader that forward-l
Slide 28: Thank you for your attention
Thank you for your attention Qtel Investor Relations Department Any further Tel: +974-440-0088 questions? Fax: +974-483-0011 +974 483 0011 investor@qtel.com.qa Upcoming • Financial Highlights FY 2008 – March 2009 events 28
Slide 29: Qtel Group structure and presence
Qtel Group structure and presence(1) Mix of public and government ownership coupled with diversified S State off Qatar Q Listed/Public i d/P bli holding 55% 45% Qatar Telecom (Qtel) Qtel International QSC 51% 61% 25% 78% Wataniya (NMTC) Raywood Asia Mobile Holdings wi-tribe (2) (Kuwait) (Cayman ) (S