Slide 1: The Qtel Group Full Year 2011 Results
The Qtel Group Full Year 2011 Results 5 March 2012
Slide 2: Disclaimer
Disclaimer • Qatar Telecom (Qtel) Q.S.C. and the group of companies which it forms part of (Qtel) cautions investors that certain statements contained in this document state Qtel management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward‐looking sta
Slide 3: Contents
Contents • Results review • Strategy review • p Operations review Qtel Group Investor Relations 2011 Full Year Results 3
Slide 4: Group results: Key 2011 highlights
Group results Key 2011 highlights Financial results ahead of 2011 Guidance • Increases in Revenue of 16.0%, EBITDA of 18.7% and normalized Net Profit attributable to Qtel shareholders up 11.6% year over year. Operational p performance p across Group ppportfolio remained strongg • Strong performance
Slide 5: Group results: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (Q (QARm)) aand d EBITDA Margin ag +16% +19% 31,765 +14% 14,791 +11% +18% 27,377 +14% 12,465 24 025 24,025 11,231 20,319 9,825 48% 47% 46% 47% 12M'08 12M'09 12M'10 12M'11 12M'08 12M'09 12M'10 12M'11 C ti Continued d strong t performance f th th
Slide 6: Group results: Net profit and net debt
Group results Net profit and net debt1 Net p profit attributable to Q Qtel shareholders (QARm) (Q ) Net debt1 (Q (QARm)) and net debt / EBITDA Net Foreign Exchange +20% +2% +12% +23% 27,268 ‐10% +12% 25,685 ‐12% 2,825 2,888 2 606 2,606 22 959 22,959 22 740 22,740 2,306 Normalized for Q1 2010 one‐off
Slide 7: Group results: Cash flow and capital expenditure
Group results Cash flow and capital expenditure Free cash flow1 (QARm) Capex (QARm) and capex / revenue (%) +48% +45% 8,393 4,894 ‐17% ‐5% 6,942 +1,324% 6,575 5,663 3,380 35% 28% 8% 1,247 26% 21% ‐81% 237 12M'08 12M'09 12M'10 12M'11 12M'08 12M'09 12M'10 12M'11 H lth ffree cash Healthy h flow fl gene
Slide 8: Group results: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group g p debt (QARm) (Q ) (% as off D b 31 December 31, 2011) Short‐term Long‐term Others 6% 46,852 46,246 2 610 2,610 Indonesia 21% 36,086 13,953 1,985 28,165 7,833 44,242 , 34,101 32,293 Qatar 1 20,332 73% 12M'08 12M'09 12M
Slide 9: Group results: Debt profile
Group results Debt profile Qtel Q.S.C. Only (US$ millions as of December 31, 2011) 3,500 3,000 3,000 2,500 2,000 1,500 1,250 1,000 900 1,000 1,000 750 600 750 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Loan Type (in US$ millions) Amount Drawn LIBOR Plus Rate1 Re
Slide 10: Group results: Total and proportional customers
Group results Total and proportional customers Total customers Proportional p customers +12% +23% 83,352 +15% 74,140 +5% +24% 47,903 60,401 41,697 57,518 +40% 33,525 23,996 12M'08 12M'09 12M'10 12M'11 12M'08 12M'09 12M'10 12M'11 G Growing i loyal l l customer t b base solid lid ffoundation d ti ffor
Slide 11: Group results: 2011 FY performance summary
Group results 2011 FY performance summary 12 months ended Change 2011 Qtel Group QAR Millions December 2011 FY 2011 / FY 2010 Guidance Consolidated revenue 31,765 +16% +8 ‐ 13% EBITDA 14,791 +19% +8 ‐ 13% Net profit attributable to Qtel shareholders 2,606 ‐10%1 ‐ E i Earnings per share h (in Qatari
Slide 12: Capital structure considerations
Capital structure considerations1 Prerequisite for Bonus Shares and Rights Issue • Authorized Capital will increase from QAR 2 billion to QAR 5 billion Dividend/Bonus Shares • Cash dividend of 30% of the nominal share value (QAR ( 3 per share)) • Bonus shares of 30% of the paid‐up share capital Righ
Slide 13: Bonus Shares and Rights Issue - strategic rationale
Bonus Shares and Rights Issue ‐ strategic rationale1 More conservative financial profile • Board approved pp new consolidated Net Debt: EBITDA target g range g of 1.5x ‐2.5x • Previous target range was 2.5x ‐ 3.0x Improved share liquidity Position the Company for long‐term strategic growth • Organic
Slide 14: Contents
Contents • Results review • Strategy review • p Operations review Qtel Group Investor Relations 2011 Full Year Results 14
Slide 15: Our journey so far
Our journey so far For the last five years, our vision has been: “To be among the top 20 telecommunications companies in the world by 2020” Qtel Group Investor Relations 2011 Full Year Results 15
Slide 16: 2006 targets have been exceeded
2006 targets have been exceeded 2010 Targets 2010 Actuals Customers >70 million 74 million M k Markets 15 17 Revenues >US$ 7 billion US$ 7.4 billion EBITDA >US$ 2.8 billion US$ 3.4 billion Qtel Group Investor Relations 2011 Full Year Results 16
Slide 17: Industry targets driving need to change
Industry targets driving need to change Threats Opportunities • Growth is slowing even in growth markets • Usage continues to grow • New entrants and increasing competition • Consumers spend more time on TMT services • Prices are declining rapidly • Smartphone users have a higher ARPU… • Only partia
Slide 18: The new Qtel Group strategy: Drive
The new Qtel Group strategy: Drive Differentiate ff on St Strengthen th our foundations f d ti I Invest t in i new growth th customer experience • “Know” our customers • Work smarter and work • Grow B2B & IT services • Embrace b customer better together • Move into i fib in fiber i selected l d expe
Slide 19: Proven and disciplined investment focus will remain
Proven and disciplined investment focus will remain Geographies Sub‐Saharan Asia Latin Globally Africa MENA America dispersed Pacific Sector Core Select adjacencies Full range of adjacencies Target size Small Large Investment model Minority Minority with Majority (little control) operational influen
Slide 20: 2016 objectives aligned with new strategy
2016 objectives aligned with new strategy 1 Deliver above average shareholder returns (TRS: Total Return to Shareholders) Increase return on capital (ROCE: Return on Capital Employed) Financial 2 metrics 3 Sustain margins (EBITDA) 4 Continue growing (Revenue) 5 Lead customer experience (NPS: Net Pro
Slide 21: Contents
Contents • Results review • Strategy review • p Operations review Qtel Group Investor Relations 2011 Full Year Results 21
Slide 22: Group operations: Qtel - Qatar
Group operations Qtel ‐ Qatar QARm • Competitive dynamics consistent with prior periods Revenue +2% • Revenue and EBITDA growth compared to 2010 5,704 5,597 • Qtel Fibre project received regulatory approval: commercial launch forthcoming • LTE trials now underwayy • Qatar National Broadband Network
Slide 23: Group operations: Asiacell - Iraq
Group operations Asiacell ‐ Iraq QARm Revenue • Network quality and coverage efforts resulting in +17% 5,934 positive customer growth and retention 5,054 • Higher on‐net usage continues to drive revenue growth • Margin impacted positively by spectrum fee 12M'10 12M'11 reversal; new regime going forw
Slide 24: Group operations: Indosat - Indonesia
Group operations Indosat ‐ Indonesia QARm • Revenues in line with lower overall mobile industry Revenue EBITDA & Margin +8% growth 8,550 +3% 7,942 4,159 4,034 • EBITDA impacted by revenue performance but partly offset by cost optimization/cost control 51% 49% efforts • IDR:US$ movements major impact
Slide 25: Group operations: Nawras - Oman
Group operations Nawras ‐ Oman QARm Revenue • Aggressive competitive promotions continue +4% • ARPU increase driven by higher active subscriber 1,864 1,939 base following mandated clean‐up • Fixed segment experiencing strong growth: – Corporate sector 12M'10 12M'11 – Expanded broadband coverage • LT
Slide 26: Group operations: Wataniya - Kuwait
Group operations Wataniya ‐ Kuwait QARm • Increasingly aggressive competitive environment Revenue EBITDA & Margin • 2011 Middle East Operator of the Year ‐ +14% +16% 3,223 786 1,469 CommsMEA 2,827 1,262 592 • Subscriber and revenue growth: 44% 48% 45% 46% – Focused Smartphone promotions – Attractive
Slide 27: Group operations: Nedjma - Algeria
Group operations Nedjma ‐ Algeria QARm • Revenue and EBITDA gains sustained through 2011: Revenue EBITDA & Margin – Subscriber market share maintained +33% +31% 2,961 1,101 – Stable ARPU 2,228 841 – Focus on higher end segments 38% 37% • Expansion of network coverage, capacity and functionality 12M'
Slide 28: Group operations: Tunisiana - Tunisia
Group operations Tunisiana ‐ Tunisia QARm (50% consolidated up to 2010) • Positive revenue growth despite increasing Revenue EBITDA & Margin +116% competitive titi environment i t and d llower ttourism‐based i b d +121% 2,779 1,573 revenues • Market leadership position in share and additions 1,287 7
Slide 29: Contents
Contents • Results review • Strategy review • p Operations review • Additional information Qtel Group Investor Relations 2011 Full Year Results 29
Slide 30: Key operations importance to Group
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 31 765 31,765 14,791 27,377 12,465 24,025 11,231 20,319 9,825 12M'08 12M'09 12M'10 12M'11 12M'08 12M'09 12M'10 12M'11 Qatar 5,447 5,686 5,400 5,704 Qatar 3,399 3,296 2,878 2,948 Indonesia 4,164 6,579 7,942 8,550 I
Slide 31: Key operations importance to Group
Additional information Key operations importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar Others 7.3% 2.9% 7.9% 2.9% 1.2% Iraq 15.4% Algeria Algeria 10.8% 10.2% 9.6% Kuwait 2.3% 2 3% Kuwait Iraq 6.8% 15.0% Oman 2.4% Oman 5.9% Indonesia Indonesia 37.1% 62.3% 12M 2011 Capex =
Slide 32: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell ‐ Iraq Nawras ‐ Oman Wataniya ‐ Maldives Bravo – KSA Wataniya ‐ Palestine 55.4 60.1 52.6 52.7 56.0 57.2 57.7 79.0 80.4 50.6 53.4 55.1 75.9 44.9 114.1 46.5 144.6 145.2 72.0 73.8 71.4 43.9 42.9 43.0 44.6 43.9 137.8 134.7 138.7
Slide 33: Qtel - Qatar
Additional information Qtel ‐ Qatar Key developments Operator importance to group • Competitive dynamics consistent with prior periods Customers: 2.9%; Revenue: 18.0%; EBITDA: 19.9%; Capex: 15.4% • Revenue and EBITDA growth compared to 2010 Pop : 1.8M (2011 est.) • Qtel Fibre project received regula
Slide 34: Asiacell - Iraq
Additional information Asiacell ‐ Iraq Key developments Operator importance to group • Network quality and coverage efforts resulting in positive Customers: 10.8%; Revenue: 18.7%; EBITDA: 21.9%; Capex: 15.0% customer growth and retention Pop : 32.8M (2011 est.) • Higher on‐net usage continues to dri
Slide 35: Indosat - Indonesia
Additional information Indosat ‐ Indonesia Key developments Operator importance to group • Revenues in line with lower overall mobile industry Customers: 62.3%; Revenue: 26.9%; EBITDA: 28.1%; Capex: 37.1% growth Pop : 237.4M (2011 est.) • EBITDA impacted by revenue performance but partly Pop growth:
Slide 36: Nawras - Oman
Additional information Nawras ‐ Oman Key developments Operator importance to group • Aggressive competitive promotions continue Customers: 2.4%; Revenue: 6.1%; EBITDA: 6.6%; Capex: 5.9% • ARPU increase driven by higher active subscriber base following mandated clean clean‐up up Pop: 2.8M (2011 est.)
Slide 37: Wataniya - Kuwait
Additional information Wataniya ‐ Kuwait Key developments Operator importance to group • Increasingly aggressive competitive environment Customers: 2.3%; Revenue: 10.0%; EBITDA: 9.9%; Capex: 6.8% • 2011 Middle East Operator of the Year ‐ CommsMEA Pop : 3.7M (2011 est.) • Subscriber S b ib and d reve
Slide 38: Nedjma - Algeria
Additional information Nedjma ‐ Algeria Key developments Operator importance to group • Revenue and EBITDA gains sustained through 2011: Customers: 10.2%; Revenue: 9.3%; EBITDA: 7.4%; Capex: 9.6% • Subscriber market share maintained Pop : 36.7M (2011 est.) • Stable ARPU Pop growth: 1.5% Algeria • Fo
Slide 39: Tunisiana - Tunisia
Additional information Tunisiana ‐ Tunisia Key developments Operator importance to group • Positive revenue growth despite increasing competitive Customers: 7.9%; Revenue: 8.7%; EBITDA: 10.6%; Capex: 7.3% environment and lower tourism‐based revenues Pop : 10.7M (2011 est.) • Market leadership positi
Slide 40: Wataniya Mobile - Palestine
Additional information Wataniya Mobile ‐ Palestine Key developments Operator importance to group • EBITDA positive for first time since 2009 launch Customers: 0.6%; Revenue: 0.9%; EBITDA: 0.1%; Capex: 0.7% • 12M 2011 revenues amounted to USD 75.0 million, Pop1 : 4.04M Palestine e Pop growth: 3% grow
Slide 41: Wataniya - Maldives
Additional information Wataniya ‐ Maldives Key developments Operator importance to group • Broadband subscriber additions continue to drive overall Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.2%; Capex: 1.0% growth in base Pop : 0.325M (2011 est.) Maldives • Higher revenue compared to 2010: Pop growth
Slide 42: Bravo - KSA
Additional information Bravo ‐ KSA Key developments Operator importance to group • Subscriber number reduced due to clean up of inactive Customers: 0.2%; Revenue: 0.8%; EBITDA: N/A; Capex: 0.02% base in Q4 2011 Pop : 26.7M (2011 est.) • Revenue decrease primarily due to increase in inactive Pop grow
Slide 43: wi-tribe - Pakistan and Philippines
Additional information wi‐tribe ‐ Pakistan Key developments Operator importance to group • WiMAX‐based service with commercial launch end of June Customers: 0.2%; Revenue: 0.32%; EBITDA: N/A; Capex: 0.75% 2009 Pop : 169.4M (2011 est.) Pakistaan Pop growth: 1.7% • Fixed wireless customer base at the
Slide 44: wi-tribe - Jordan
Additional information wi‐tribe ‐ Jordan Key developments Operator importance to group • WiMAX‐based service with commercial launch June 2008 Customers: 0.02%; Revenue: 0.06%; EBITDA: N/A; Capex: 0.20% • Fixed wireless customer base at the end of 12M 2011 at Pop : 6.3M (2011 est.) Jordan n 20.1K com
Slide 45: Statutory corporate tax rates
Additional information Statutory corporate tax rates Statutory Losses c/fwd Losses c/back Notes tax rate allowed allowed Algeria 25% 5 years ‐ Bahrain ‐ ‐ ‐ Indonesia 25% 5 years ‐ Iraq 15% 5 years ‐ Deduction of losses c/fwd limited to 50% of taxable income for each year Jordan 24% Indefinitely ‐ 3
Slide 46: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives Oman Qatar KSA Tunisia 2011 (est.) GDP real growth % 2.9 6.4 9.6 5.7 6.5 4.4 18.7 6.5 ‐ (2010) (3.3) (6.1) (0.8) (3.4) (7.1) (4.1) (16.6) (4.1) (3.1) Consumer prices % 4.5 5.0 5.0 6.2 15.0 3.3 2.3 6.2 3.5
Slide 47: Any further questions? Qtel Group Investor Relations Department
Qtel Group Investor Relations Department Any further Qtel Headquarters Building – PO Box 217 questions? West Bay, Doha IR@qtel com qa IR@qtel.com.qa Upcoming p g 2012 Q1 Results – TBA events
Slide 48: “L_/0 tel Group
“L_/0 tel Group