Slide 1: The Qtel Group 1H 2011 Results
The Qtel Group Diversified portfolio continues to drive consistent results 1H 2011 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 1H 2011 developments
Group results Key 1H 2011 developments Solid and consistent financial performance • Increases in Revenue of 17%, EBITDA of 15% and normalized Net Profit Attributable to Qtel shareholders up 17% year over year Strong results in developed and developing markets • Revenue momentum continues in Qatar, d
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +17% +15% +15% 15,446 7,204 +15% +42% 13,244 +36% 6,274 11,543 5,476 4,042 8,122 50% 47% 47% 47% 1H'08 1H'09 1H'10 1H'11 1H'08 1H'09 1H'10 1H'11 Continuing double digit growth through first half of 2011 Note: (1) All In
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)) Net Foreign Exchange +9% +18% +14% -5% +2% 1,784 -20% 25,306 24,674 1,638 24,099 1,384 22,181 1,436 +16% 16% 1,138 Normalized for Q1 2010 one-off Qatar Royalty 1,522 Ad
Slide 7: Free cash flow and capital expenditure
Group results Free cash flow and capital expenditure Free cash flow1 (QARm) Capex (QARm) and capex / revenue (%) +34% +161% 3,194 4,173 +4,053% 2,377 ,3 +6% -39% 2,700 2,550 1,322 1,599 36% 20% 19% 18% -105% (60) 1H'08 1H'09 1H'10 1H'11 1H'08 1H'09 1H'10 1H'11 Economic use of capital in growth marke
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (% as of June 30, 2011) Short-term Short term Long-term 46,159 2,363 Others 7% 37,121 36,059 3,013 Indonesia 10,816 , 20% 29 214 29,214 1,663 43,796 33,046 27,551 26,305 1 Qatar 73% 1H'08 1H'09 1H'10 1H'11 No
Slide 9: Debt profile
Group results Debt profile Qtel Q Q.S.C. S C Only (US$ millions as of June 30 30, 2011) 3,500 3,000 3,000 2,500 2,000 1,500 1,250 , 900 1,000 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 R
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers Proportional customers +16% +20% 77,489 +30% 44,461 +30% 66,682 +0.1% 37,210 +34% 51,353 5 ,353 , 51,416 28,542 21,382 1H'08 1H'09 1H'10 1H'11 1H'08 1H'09 1H'10 1H'11 Customer growth across developed and developing markets 9
Slide 11: 2011 1H performance summary
Group results 2011 1H performance summary 6 months ended Change June 2011 1H 2011 / 1H 2010 QAR Millions Consolidated revenue 15,446 +17% 17% EBITDA 7,204 +15% Net profit attributable to Qtel shareholders 1,436 -20%1 Earnings per share (in Qatari Riyals) 8.162 -20% Market capitalization (as of 30 Ju
Slide 12: Contents
Contents • Results review • Strategy review • Operations review 11
Slide 13: Value and Growth Focus
Strategy Value and Growth Focus Get more of the assets we like Î Tunisiana Drive group synergies Î Look beyond mobile Î Frame agreements Converged Broadband Shared services Focus on adjacent growth Î B2B ICT Improve capital structure Î Other adjacencies Capital markets Strategy remains the same 12
Slide 14: Contents
Contents • Results review • Strategy review • Operations review 13
Slide 15: Qtel - Qatar
Group operations Qtel - Qatar QARm • Revenue continued to increase: Revenue – Higher triple play +1% 2,862 – Data usage 2,838 – Leased line revenue • Market share stable,, customer retention levels remain high, successful promotions leading to 1H'10 1H'11 increased call volumes • EBITDA growth prima
Slide 16: Asiacell - Iraq
Group operations Asiacell - Iraq QARm • 1H revenue and EBITDA driven by growth in Revenue +18% subscribers and increased usage 2,831 2,404 • Improved network quality and increasing on-net usage driving customer retention • Market share remains steady in environment of increasing competitive dynamics
Slide 17: Indosat - Indonesia
Group operations Indosat - Indonesia QARm • Competitive challenges met with strong growth Revenue EBITDA & Margin +9% of cellular segment revenue and growth in 4,188 +3% 1,964 3,830 1,909 customer base • Business transformation program on track with 50% 47% conclusion of Voluntary Separation Scheme
Slide 18: Nawras - Oman
Group operations Nawras - Oman QARm • Positive revenue impact from mobile postpaid, Revenue fixed services and International Gateway +6% 954 • Home, business and mobile broadband continue 901 to grow • EBITDA impacted by higher operating and maintenance expenditure in fixed line and mobile services
Slide 19: Wataniya - Kuwait
Group operations Wataniya - Kuwait QARm • Revenue increase driven by growth of customer Revenue EBITDA & Margin base: +20% +33% 33% 786 1,636 – Smartphone promotions 786 1,361 592 592 – Attractive data pricing leveraging off usage 48% 44% 48% 44% trends • Subscriber market share flat, but revenue sh
Slide 20: Nedjma - Algeria
Group operations Nedjma - Algeria QARm • Customer numbers stable following clean-up and Revenue EBITDA & Margin registration requirements +36% +42% 1,397 542 • Segmented commercial focus on customer 1,027 381 service 37% 39% • Network roll out accelerated during the period • Continued focus on netwo
Slide 21: Tunisiana - Tunisia
Group operations Tunisiana - Tunisia QARm (50% consolidated prior to Q1 2011) • Robust results in a challenging environment Revenue EBITDA & Margin +94% +108% • M k t position Market iti remains i strong t 1,287 718 • Acquisition of consolidating shareholding to 75% - fully consolidated results as o
Slide 22: Contents
Contents • Results review • Strategy review • Operations review • Additional information 21
Slide 23: Key operations importance to Group
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 7,204 15,446 6,274 13,244 5,476 11,543 4,042 8,122 , 1H'08 1H'09 1H'10 1H'11 1H'08 1H'09 1H'10 1H'11 Qatar 2,610 2,902 2,838 2,862 Qatar 1,713 1,797 1,511 1,556 Indonesia 530 2,977 3,830 4,188 Indonesia 243 1,457
Slide 24: Key operations importance to Group
Additional information Key operations importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar Others 7.7% 3.4% 10.6% 7.9% 3.1% 1.2% Iraq Algeria 11.0% 10.4% Algeria 11.8% % Kuwait Iraq 2.5% 19.8% Oman 2.5% Kuwait 7.0% Oman 5.2% Indonesia Indonesia 34.5% 61.4% 1H 2011 Capex = QAR
Slide 25: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Wataniya - Maldives Bravo – KSA Wataniya - Palestine 75.9 55.9 55.4 70.9 69.1 67.9 70.6 71.4 52.4 52.6 52.7 56.0 57.2 50.6 55.1 51.1 52.3 53.4 44.9 110.5 106.1 104.4 114.1 44.6 138.7 144.6 102.9 43.4 40.
Slide 26: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • Revenue continued to increase: Customers: 3.1%; Revenue: 18.5%; EBITDA: 21.6%; Capex: 10.6% – Higher mobile and triple play Pop : 1.8M (2011 est.) – Data usage Pop growth: 4.0% Qattar – Partially y offset by y lower
Slide 27: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • 1H revenue and EBITDA driven by growth in Customers: 11.0%; Revenue: 18.3%; EBITDA: 21.3%; Capex: 19.8% subscribers and increased usage Pop : 32.8M (2011 est.) • Improved network quality and increasing on-net Pop
Slide 28: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Competitive challenges met with strong growth of Customers: 61.4%; Revenue: 27.1%; EBITDA: 27.3%; Capex: 34.5% cellular segment revenue and growth in customer Pop : 237.4M (2011 est.) base esia Pop growth: 1.3
Slide 29: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Positive revenue impact from mobile postpaid, fixed Customers: 2.5%; Revenue: 6.2%; EBITDA: 6.5%; Capex: 5.2% services and International Gateway • Home, business and mobile broadband continue to Pop: 2.8M 2011 est.)
Slide 30: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Revenue increase driven by growth of customer Customers: 2.5%; Revenue: 10.4%; EBITDA: 10.8%; Capex: 7.0% base: Pop : 3.7M (2011 est.) • Smartphone promotions Pop growth: 2.0% ait • Attractive Net On Phone (NOP)
Slide 31: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Commercial focus on mid and high-end mobile user Customers: 10.4%; Revenue: 9.0%; EBITDA: 7.5%; Capex: 11.8% segment paying off through strong revenue increase Pop : 36.7M (2011 est.) • Network roll out accelerat
Slide 32: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group • Robust results in a challenging environment Customers: 7.9%; Revenue: 8.3%; EBITDA: 10.0%; Capex: 7.7% • Market position remains strong, benefiting from Pop : 10.7M (2011 est.) competitor issues Pop growth: 1.
Slide 33: Wataniya Mobile - Palestine
Additional information Wataniya Mobile - Palestine Key developments Operator importance to group • First period with positive EBITDA performance Customers: 0.5%; Revenue: 0.8%; EBITDA: 0.1%; Capex: 0.6% • Subscriber growth continues: 71% versus same Pop1 : 4.04M stine period last year Pop growth: 3%
Slide 34: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • Solid Revenue and EBITDA growth YoY: Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.2%; Capex: 1.3% – Revenue growth of 12% Pop : 0.325M (2011 est.) – EBITDA 78% growth compared to same Maldives Pop growth: 1.6% pe
Slide 35: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Customers additions up 4% over 1H 2010 – now over Customers: 0.3%; Revenue: 0.8%; EBITDA: N/A; Capex: 0.02% 208K subscribers Pop : 26.7M (2011 est.) • Increased competition from GSM operators Pop growth: 2.2% SA Mob p
Slide 36: wi-tribe - Pakistan and Philippines
Additional information wi-tribe - Pakistan Key developments Operator importance to group • WiMAX-based service with commercial launch end of Customers: 0.15%; Revenue: 0.27%; EBITDA: N/A; Capex: 0.91% June 2009 Pop : 169.4M (2011 est.) akistan • Fixed wireless customer base at the end of 1H 2011 Pop
Slide 37: wi-tribe - Jordan
Additional information wi-tribe - Jordan Key developments Operator importance to group • WiMAX-based service with commercial launch June Customers: 0.03%; Revenue: 0.07%; EBITDA: N/A; Capex: 0.15% 2008 Pop : 6.3M (2011 est.) ordan • Fixed wireless customer base at the end of 1H 2011 Pop growth: 2.3%
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 - 30% tax rate applies to oil companies (exemption/reduction rates of duty) Bahrain - - - Indonesia 25% 5 years - 1) 28% tax rate was applicable
Slide 39: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives Oman Qatar KSA Tunisia 2011 (est.) GDP real growth % 3.6 6.2 9.6 5.3 6.0 4.8 20.0 7.5 1.3 (2010) (3.3) (6.1) (0.8) (2.0) (8.0) (4.2) (16.3) (3.7) (3.7) Consumer prices % 5.0 7.1 5.0 6.1 6.5 3.5 4.2 6.0 4.0
Slide 40: Any further questions?
Qtell G Qt Group Investor I t Relations R l ti Department D t t Any further Qtel Headquarters Building – PO Box 217 questions? West Bay, Doha IR@qtel.com.qa Upcoming 2011 9M Results – October TBD events 39
Slide 41: Thank-you
Thank-you