Slide 1: The Qtel Group: Solid start to 2010
The Qtel Group Solid start to 2010 Q1 2010 Results
Slide 2: Disclaimer
Disclaimer • Q t Telecom Qatar T l (Qtel) (Qt l) Q.S.C. Q S C and d the th group off companies i which hi h it forms f partt off (Qtel) (Qt l) cautions ti investors i t that th t certain t i statements contained in this document state Qtel management's intentions, hopes, beliefs, expectations, or pr
Slide 3: Contents
Contents • Results review • Strategy review • Operations review 2
Slide 4: Key Q1 2010 developments
Group results Key Q1 2010 developments Solid financial results • Year on year increases in Revenue of 14.2%, EBITDA of 14.4% and Net Profit of 104.3% • Royalty change in Qatar benefit to Group Net Profit an estimated QAR 554 million Positive performances across our operations • Qatar quarterly perfo
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +14% +14% +58% +48% +114% +145% Solid start to 2010, continuing double digit growth in Q1 2010 Note: (1) All Indosat results as reported adhere to IFRS which may in some instances differ from INDOGAAP 4
Slide 6: Net profit and net debt
Group results Net profit and net debt1 Net profit attributable to Qtel shareholders Net debt1 (QARm) and net debt / EBITDA ((QARm)) +104% +30% +1% 554 Impact of Qatar +14% royalty lt change h +13% +11% 659 +11% Prudent execution of our strategy continues to deliver solid returns to our shareholders
Slide 7: Capital expenditure and intensity
Group results Capital expenditure and intensity Capex1 (QARm) Capex / revenue (%)1 +276% +131% -39% -46% +33% +221% Investing in those opportunities which provide growth and returns 6 Note: (1) Post-acquisition results
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt1 (QARm) (% as of March 31, 2010) Short-term Short term Long-term 35,745 30,439 21,128 19,067 2 No imminent refinancing needs Note: (1) Group debt is net of deferred financing costs 7 (2) Includes Qatar International
Slide 9: Qtel Q.S.C. funding sources and debt maturity profile
Group results Qtel Q.S.C. funding sources and debt maturity profile Qtel Q.S.C. debt maturity profile (QARm as of March 31, 2010) Qtel Q.S.C. committed lines and maturity (millions) • US$ 2,000 2011 • US$ 3,000 2012 US$5bn GMTN Program initial issuance1 (millions) • US$ 900 6.500% (coupon) June 2014
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers1,2 +18% Proportional customers1,2 66,258 +233% +17% +333% 56,033 37,033 31,712 +84% +351% 16,844 7,321 9,174 1 623 1,623 Q1'07 Q1'08 Q1'09 Q1'10 Q1'07 Q1'08 Q1'09 Q1'10 Customer growth continuing across all key operations Note: (1) As at
Slide 11: 2010 Q1 performance summary
Group results 2010 Q1 performance summary 3 months ended Change March 2010 Q1 2010 / Q1 2009 QAR Millions Consolidated revenue 6,417 +14% EBITDA 3,034 +14% Net profit attributable to Qtel shareholders 1,213 +104% Earnings per share (in Qatari Riyals) 8.27 +104% Market capitalization (as of 31 March
Slide 12: 2010 annual guidance
Group results 2010 annual guidance 2009 Full 2010 Guidance QAR Billions Year Results Consolidated revenue 24.0 +5 to +10% 25.2 – 26.4 EBITDA 11.3 +5 to +10% 11.9 – 12.4 Capital expenditure 8.4 +2 to +7% 8.6 – 9.0 Positive solid growth outlook for 2010 11
Slide 13: Contents
Contents • Results review • Strategy review • Operations review 12
Slide 14: Key developments and focus
Strategy Key developments and focus Operational & financial synergies Operational Performance Innovation Management Acquire/Merge Portfolio Development Manage minorities Carve-outs Funding Capital Markets Liquidity q y Our strategy and focus have remain unchanged 13
Slide 15: Contents
Contents • Results review • Strategy review • Operations review 14
Slide 16: Qtel - Qatar
Group operations Qtel - Qatar QARm Qtel - Qatar Revenue • Q1 characterized as a stabilizing quarter: – March competitive dynamics different from -6% January and February – Good momentum exiting quarter • Major regulatory win regarding royalty • Positive top-line results and strong Net Profit perform
Slide 17: Asiacell - Iraq
Group operations Asiacell - Iraq QARm Asiacell - Iraq Revenue • Customer growth continues: +34% – Uninhibited by government registration program – Analogous Q1 seasonality • Strong revenue and EBITDA growth • Focus remains on: – Network N t kb build ild tto iimprove customer t service i – Market edu
Slide 18: Indosat - Indonesia
Group operations Indosat - Indonesia QARm Indosat - Indonesia • Second consecutive quarter of subscriber growth Revenue EBITDA & Margin • Revenue growth resumed year on year, but +30% +31% 31% seasonality impacts concurrent quarterly growth • Continued balance between value and growth strategies • E
Slide 19: Nawras - Oman
Group operations Nawras - Oman QARm Nawras - Oman Revenue • Fixed network and International Gateway implementation continuing to plan: +19% – Launch of business and consumer services expected mid-year • Launch of MVNOs being felt in specific segments: – Slight Sli ht di dip iin Q1 N Nawras market k
Slide 20: Wataniya - Kuwait
Group operations Wataniya - Kuwait QARm Wataniya - Kuwait •Continuing to successfully maintain market share Revenue EBITDA & Margin with subscriber and top-line top line growth +8% •Data revenue growth still strong: -4% – New product and service introduction – BlackBerry and smart-phone penetration
Slide 21: Nedjma - Algeria
Group operations Nedjma - Algeria QARm Nedjma – Algeria •Positive effects of Marketing push in Q4 continue Revenue EBITDA & Margin •Rate Rate of Q1 revenue growth impacted by seasonality +15% +30% and residual Q4 push •EBITDA rebound as expected •Customer acquisition continues and remains core focus
Slide 22: Tunisiana - Tunisia
Group operations Tunisiana - Tunisia QARm Tunisiana – Tunisia •Market-leading position continues: Revenue EBITDA & Margin – Market share gains in Q1 +14% +18% – Solid top-line growth •Loyalty programs and Community offer driving customer acquisition and retention success •Competitive dynamics in qua
Slide 23: Any further questions?
Q Group Qtel p Investor Relations Department p Qtel Headquarters Building – PO Box 217 Any further West Bay, Doha questions? Tel: +974 440 4446 IR@qtel.com.qa @q q Upcoming 1H/Q2 2010 Financial Highlights – TBD events 22
Slide 24: Thank-you
Thank-you
Slide 25: Contents
Contents • The Qtel Group • Results review • Operations review • Additional information 24
Slide 26: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • Q1 characterized as a stabilizing quarter: Customers: 3.6%; Revenue: 21.3%; EBITDA: 23.5%; Capex: 6.9% – March competitive dynamics different from January and February Pop : 1.6M – Good momentum exiting quarter Pop g
Slide 27: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Customer growth continues: Customers: 11.4%; Revenue: 18.3%; EBITDA: 22.5%; Capex: 27.0% – Uninhibited by government registration program Pop : 31.3M – Analogous Q1 seasonality Pop growth: 2% aq Mob penetration: 6
Slide 28: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Second consecutive quarter of subscriber growth Customers3: 57.8%; Revenue: 29.0%; EBITDA: 30.4% • Revenue growth resumed year on year, but seasonality impacts concurrent quarterly growth Pop : 243M esia • Con
Slide 29: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Fixed network and International Gateway Customers: 2.9%; Revenue: 6.7%; EBITDA: 8.3%; Capex: 14.6% implementation continuing to plan: – Launch of business and consumer services Pop: 3.09M expected mid-year Pop growt
Slide 30: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Continuing to successfully maintain market share Customers: 2.4%; Revenue: 10.3%; EBITDA: 9.0%; Capex: 7.4% with subscriber and top-line growth • Data revenue growth still strong: Pop : 3.6M – New product and se
Slide 31: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Positive effects of Marketing push in Q4 continue Customers: 12.2%; Revenue: 7.5%; EBITDA: 5.4%; Capex: 4.5% • Rate of Q1 revenue growth impacted by seasonality and residual Q4 push Pop : 35.9M • EBITDA rebound a
Slide 32: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group (Revenue and EBITDA @ 50%) • Market-leading position continues: Customers: 8.0%; Revenue: 5.1%; EBITDA: 5.7%; Capex: 2.5% – Market share gains in Q1 – Solid top-line growth Pop : 10.4M • Loyalty programs and Com
Slide 33: Wataniya - Palestine
Additional information Wataniya - Palestine Key developments Operator importance to group • First full quarter of commercial operations Customers: 0.2%; Revenue: 0.2%; EBITDA: N/A; Capex: 0.6% • Strong initial customer acquisition • Revenue trajectory enhanced exiting Q1 Pop1 : 4.04M stine Pop growt
Slide 34: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • Resort coverage strategy continuing Customers: 0.2%; Revenue: 0.5%; EBITDA: 0.16%; Capex: 1.2% • 20% growth in revenue over same period in 2008 Pop : 0.396M Maldives Pop growth: -0.2% M b penetration: Mob. t t
Slide 35: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Bravo customer increase of 20% from same period Customers: 0.3%; Revenue: 1.1%; EBITDA: N/A; Capex: 0.1% last year • Ongoing customer additions via targeted campaigns Pop : 26.2M • Retention and winback efforts contin
Slide 36: wi-tribe - Jordan and Pakistan
Additional information wi-tribe - Jordan Key developments Operator importance to group • WiMAX-based service with commercial launch June Customers: N/A; Revenue: 0.1%; EBITDA: N/A; Capex: 0.19% 2008 • Fixed wireless customer base at the end of Q1 2010 Pop : 6.4M ordan at 16.2.1K Pop growth: 2% GDP:
Slide 37: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Wataniya - Maldives Bravo – KSA Wataniya - Palestine Indosat - Indonesia Wataniya - Kuwait Tunisiana - Tunisia Nedjma - Algeria IDR KWD TND DZD 36
Slide 38: Statutory corporate tax rates
Additional information Statutory corporate tax rates Statutory S Losses c/fwd /f d Losses c/back /b k N Notes tax rate allowed allowed Algeria 25% 5 years - 1) Additional 4 years for losses c/fwd allowed under the ANDI program (ANDI program is a special incentive granted to the company which include
Slide 39: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives1 Oman Palestine Qatar KSA Tunisia 2010 GDP real growth % 4.6 5.5 6.2 3.7 -4.0 3.9 N/A 23.3 3.2 2.7 (2009) (2.6) (4.6) (5.0) (-1.7) (x.x) (2.7) (-2.3) (9.5) (0.1) (1.3) Consumer prices % 5.3 6.7 6.1 3.6 N/A
Slide 40: Foreign exchange
Additional information Foreign exchange Local Currency (vs. $US) – Average Monthly Rates Fluctuation of Average Quarterly Rates (vs. $US) 20% 15% 25% Kuwait ((KWD)) Local Currency Per USSD ‐ Average Monthly Ratees 10% 20% Algeria (DZD) 15% 5% 0% Tunisia (TND) 10% 5% ‐5% Indonesia (IDR) 0% ‐10% Iraqi