Vodafone Qatar Qsc · QSE:VFQS
Vodafone Qatar Qsc — Q1 FY11 Earnings Presentation
27 slides from Vodafone Qatar Qsc's earnings presentation, Jun 30, 2010
Slide 1: Vodafone Qatar Q1 FY11 Results
Q1 FY11 Results – Quarter Ended 30 June 2010 Vodafone Qatar Q.S.C. Q1 FY11 Results Quarter ended 30 June 2010 Confidentiality level on slide master Version number on slide master
Slide 2: Disclaimer
2 Q1 FY11 Results – Quarter Ended 30 June 2010 Disclaimer • The following presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation
Slide 3: Agenda
3 Q1 FY11 Results – Quarter Ended 30 June 2010 Agenda • Key Highlights for the Quarter • Customer Analysis • Customer Growth • Revenue • EBITDA • EBIT • Capitalised Fixed Asset Additions • Net Debt • Outlook Q2 FY11 • Appendices: – Financial Highlights Table – Fixed Line License Update – Condensed S
Slide 4: Key Highlights in 1st Quarter FY11
4 Q1 FY11 Results – Quarter Ended 30 June 2010 Key Highlights in 1st Quarter FY11 (1st April 2010 to 30 June 2010) • Approval at EGM to merge Fixed business into one Vodafone Qatar Fixed Line • Connected Broadband to The Pearl in May • Commercial Broadband service launched at The Pearl 14 July 2010
Slide 5: Who are our customers?
5 Q1 FY11 Results – Quarter Ended 30 June 2010 Who are our customers? Labour & Service Workers Expat Families Northern Arabs Qatari & Khaliji Confidentiality level on slide master Business Version number on slide master
Slide 6: Which segments we have targeted to date?
6 Q1 FY11 Results – Quarter Ended 30 June 2010 Which segments we have targeted to date? Labour and Service Workers Expat Families Northern Arabs Qatari and Khaliji This is 44 % of the Business market! We are NOT making a world of difference for ALL people in Qatar.... YET! Confidentiality level on s
Slide 7: Customer Segment Sizes
7 Q1 FY11 Results – Quarter Ended 30 June 2010 Customer Segment Sizes Labour & Service Workers 23% Expat Families 44% 20% Northern Arabs 13% 23% 24% Qatari and Khaliji 13% 44 % of the 10% market! 20% Business 9% Customer Share Revenue Share Confidentiality level on slide master Version number on sli
Slide 8: Our five new strategies
8 Q1 FY11 Results – Quarter Ended 30 June 2010 As a result, our five new Strategies are: • Aggressively Compete to Grow in All Segments • Really Deliver an Awesome Customer Experience • Actively Develop All Talent and Be the Role Model for Qatarisation • Bravely Take a Few Risks on Cool New Stuff •
Slide 9: Our Updated Purpose Based Organisation
9 Q1 FY11 Results – Quarter Ended 30 June 2010 Our Updated Purpose Based Organisation is: Confidentiality level on slide master Version number on slide master
Slide 10: Customer Growth: Quarterly Customers & Market Share
10 Q1 FY11 Results – Quarter Ended 30 June 2010 Customer Growth Quarterly Customers & Market Share * 600,000 19% 20% 18% 534,497 18% 500,000 464,962 16% 14% Quarterly Customer Market Share Quarterly Customer Numbers 14% 400,000 353,580 12% 300,000 10% 7% 8% 200,000 6% 150,799 4% 100,000 0.8% 2% 15,4
Slide 11: Revenue
11 Q1 FY11 Results – Quarter Ended 30 June 2010 Revenue Quarterly Total Revenue 200 178 176 180 160 145 140 QAR (millions) 120 100 80 60 36 40 20 3 - Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 Q4 Mar-10 Q1 Jun-10 Confidentiality level on slide master Version number on slide master
Slide 12: EBITDA
12 Q1 FY11 Results – Quarter Ended 30 June 2010 EBITDA Quarterly Adjusted EBITDA* - -10 -9 -20 -30 -29 QAR (millions) -40 -39 -50 -60 -70 -73 -80 -85 -90 Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 Q4 Mar-10 Q1 Jun-10 Unadjusted EB ITDA -73 -83 -30 -39 -9 • Positive quarter of EBITDA expected by year-end • Expect
Slide 13: EBIT
13 Q1 FY11 Results – Quarter Ended 30 June 2010 EBIT Quarterly Adjusted EBIT* - -50 QAR (millions) -100 -150 -142 -152 -156 -162 -200 -205 -250 Q1 Q1 Jun-09 Jun-09 Q2Q2Sep-09 Sep-09 Q3 Q3Dec-09 Dec-09 Q4 Mar-10 Q4 Mar-10 Q1 Jun-10 Q1 Jun-10 Unadjusted EB IT -149 -199 -149 -178 -142 *Quarterly EBIT h
Slide 14: Capitalised Fixed Asset Additions
14 Q1 FY11 Results – Quarter Ended 30 June 2010 Capitalised Fixed Asset Additions 600 524 500 389 400 QAR (millions) 300 200 100 73 0 FY 09 FY 10 Q1 FY11 • Long-term capital expenditure expected to stabilise at 9% of revenue from FY14 onwards Confidentiality level on slide master Version number on s
Slide 15: Net Debt
15 Q1 FY11 Results – Quarter Ended 30 June 2010 Net Debt Borrowings less Term Deposits 500 433 400 371 300 269 200 156 QAR (millions) 100 - -34 -42 (100) (200) (300) -294 (400) -360 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 • Borrowing facility extended from US$110m to US$230m to cater
Slide 16: Outlook Q2 FY11
16 Q1 FY11 Results – Quarter Ended 30 June 2010 Outlook Q2 FY11 • Focus on customer acquisition • Target High Value customers • Qatari Nationals, Expat Families, Short-term Expats • Business customers • Development of innovative solutions for the market • National Broadband Network (NBN) • Fixed Lin
Slide 17: Outlook Q2 FY11 continued
17 Q1 FY11 Results – Quarter Ended 30 June 2010 Outlook Q2 FY11 continued… • Network Development • Indoor coverage – almost complete, 67 buildings completed • Continue converting temporary sites to permanent sites 450 400 381 354 361 337 342 347 350 322 330 309 300 283 283 285 259 270 Sites/Month 25
Slide 18: Key Highlights in 1st Quarter FY11
18 Q1 FY11 Results – Quarter Ended 30 June 2010 Key Highlights in 1st Quarter FY11 (1st April 2010 to 30 June 2010) • Approval at EGM to merge Fixed business into one Vodafone Qatar Fixed Line • Connected Broadband to The Pearl in May • Commercial Broadband service launched at The Pearl 14 July 2010
Slide 19: A world of difference for all people in Qatar
19 Q1 FY11 Results – Quarter Ended 30 June 2010 This will enable us to make a world of difference for ALL people in Qatar.... Attracting higher value customers is the next step of our plan! Confidentiality level on slide master Version number on slide master
Slide 20: Appendices
20 Q1 FY11 Results – Quarter Ended 30 June 2010 Appendices Confidentiality level on slide master Version number on slide master
Slide 21: Financial Highlights
21 Q1 FY11 Results – Quarter Ended 30 June 2010 Financial Highlights Financial Performance Quarterly Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Sep-09 Dec-09 Mar-10 Jun-10 QARm QARm QARm QARm Total Revenue 36.1 177.6 144.7 175.8 1 EBITDA (84.9) (38.6) (28.7) (8.8) EBIT 1,2 (204.8) (162.3) (155.9) (141.9) Opera
Slide 22: Fixed Line License
22 Q1 FY11 Results – Quarter Ended 30 June 2010 Fixed Line License • Awarded to Vodafone Qatar Q.S.C. on 29 April 2010 – Shareholders approved the change to the Memorandum and Articles of Association at the EGM on 28 June 2010 – Payment of QAR 10m license fee to be paid by 31 July 2010 • Fixed Line
Slide 23: Condensed Statement of Income – Quarter ended 30 June 2010
23 Q1 FY11 Results – Quarter Ended 30 June 2010 Condensed Statement of Income – Quarter ended 30 June 2010 Three month Three month period ended period ended June June 30, 2010 30, 2009 (Unaudited) (Unaudited) QAR ‘000 QAR ‘000 Revenue 175,777 3,079 Direct costs (81,620) (4,946) Other expenses (102,9
Slide 24: Condensed Statement of Financial Position – as at 30 June 2010
24 Q1 FY11 Results – Quarter Ended 30 June 2010 Condensed Statement of Financial Position – as at 30 June 2010 30 June 2010 30 June 2009 30 June 2010 30 June 2009 QAR ‘000 QAR ‘000 QAR ‘000 QAR ‘000 Non-current assets Equity Property, plant and equipment 872,308 832,283 Share capital 8,454,000 8,454
Slide 25: Dividend Expectations
25 Q1 FY11 Results – Quarter Ended 30 June 2010 Dividend Expectations • As outlined in our IPO prospectus, subject to the Articles, any decision to pay dividends to Shareholders and the amount of such dividends will be at the discretion and upon recommendation of the Board. • The amount of dividends
Slide 26: Vodafone Qatar Shareholder Structure
26 Q1 FY11 Results – Quarter Ended 30 June 2010 Vodafone Qatar Shareholder Structure Private institution of public Global Utility founded by Telecommunications HH Sheikh Hamad Bin Khalifa leader Al-Thani 51% 49% Founding Vodafone and Qatari Governmental Free float on Qatar Foundation Institutional Q
Slide 27: Contact Details
27 Q1 FY11 Results – Quarter Ended 30 June 2010 Contact Details Rachael Mayo-Smith John Tombleson Head of Investor Relations Chief Financial Officer Tel: +974 777 5642 +974 777 5835 Email: rachael.mayo-smith@vodafone.com john.tombleson@vodafone.com Address: Vodafone Qatar PO BOX 27727 Doha Qatar Web
Vodafone Qatar Q.S.C. — Q1 FY11 Earnings Presentation on 6ix