Slide 1: The Qtel Group Q1 2012 Results
The Qtel Group Q1 2012 Results 30 April 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 2012 Q1 Results 3
Slide 4: Key Q1 2012 highlights
Group results Key Q1 2012 highlights Positive start to 2012 with healthy financial results • Increases in Revenue of 7 7.6%, 6% EBITDA of 8 8.0% 0% and Net Profit attributable to Qtel shareholders of QAR 711.4 million, down 12.2%. • Net Profit during the period adversely impacted by movement in the
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (Q (QARm)) aand d EBITDA Margin ag +8% +15% +8% 8,030 +17% +15% 7,461 3,832 +14% 3 550 3,550 6,475 3,034 5,617 2,653 47% 47% 48% 48% Q1'09 Q1'10 Q1'11 Q1'12 Q1'09 Q1'10 Q1'11 Q1'12 P iti R Positive Revenue and d EBITDA growth th Note: (1) All I
Slide 6: 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 +104% +4% +5% 1,213 +2% 26,282 25,119 23,736 24,180 ‐37% 37% ‐12% 811 594 711 1,102 657 718 736 2.34 2.13 1.89 1.83 111 154 (25) (124) Q
Slide 7: Capital expenditure
Group results Capital expenditure Capex (QARm) Capex / revenue (%) 2,064 37% ‐35% +21% 1,346 ‐20% 1,307 ‐43% 1,077 21% +14% ‐33% 16% 14% Q1'09 Q1'10 Q1'11 Q1'12 Q1'09 Q1'10 Q1'11 Q1'12 C it l expenditure Capital dit program trending t di to t plan l Qtel Group Investor Relations 2012 Q1 Results 7
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group g p debt (QARm) (Q ) (% as off M h 31 March 31, 2012) Short‐term Long‐term Others 6% 46,868 45,770 2 702 2,702 Indonesia 20% 36,117 13,068 2,201 30,644 10,747 44,166 , 33,916 32,702 1 Qatar 19,897 74% Q1'09 Q1'10 Q1'11 Q
Slide 9: Debt profile
Group results Debt profile Qtel Q.S.C. Only (US$ millions as of March 31, 2012) 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 Repay
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers Proportional p customers +12% +14% +12% 84,421 +18% +17% 75,579 48,430 +17% 43,346 66,364 56,033 37,119 31,712 Q1'09 Q1'10 Q1'11 Q1'12 Q1'09 Q1'10 Q1'11 Q1'12 T Targeted t d customer t growth th with ith a focus f on retention t ti Qtel
Slide 11: 2012 Q1 performance summary
Group results 2012 Q1 performance summary 3 months ended Change 2012 Qtel Group QAR Millions March 2012 Q1 2012 / Q1 2011 Annual Guidance Consolidated revenue 8,030 +8% +4 ‐ 9% EBITDA 3,832 +8% +3 ‐ 8% Net profit attributable to Qtel shareholders 711 ‐12% ‐ E i Earnings per share h (in Qatari Riyals
Slide 12: Contents
Contents • Results review • Strategy review • p Operations review Qtel Group Investor Relations 2012 Q1 Results 12
Slide 13: The Qtel Group strategy: Drive
The 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 experien
Slide 14: Contents
Contents • Results review • Strategy review • p Operations review Qtel Group Investor Relations 2012 Q1 Results 14
Slide 15: Qtel - Qatar
Group operations Qtel ‐ Qatar QARm • Record quarterly revenue driven by growth in both Revenue wireless and wireline +6% 1,502 1,411 • EBITDA and EBITDA margin performance a result of revenue growth and reduced in period marketing spend p • Qtel Fibre to the Home project commercially Q1'11 Q1'12 lau
Slide 16: Asiacell - Iraq
Group operations Asiacell ‐ Iraq QARm Revenue • Revenue increase driven by: +19% – Subscriber and ARPU growth 1,638 1,374 – Continued on‐net and international usage • EBITDA margin more indicative of normalised operational performance Q1'11 Q1'12 • Iraq IPO process ongoing EBITDA & Margin +18% 915 7
Slide 17: Indosat - Indonesia
Group operations Indosat ‐ Indonesia QARm • Sector growth continued to moderate: Data growth in Revenue EBITDA & Margin nascent stages +0.1% +4% 1,997 1,998 990 954 • Revenue, EBITDA and EBITDA margin growth over previous year: Opex control gaining traction in spite of 48% 50% slower top line growth
Slide 18: Nawras - Oman
Group operations Nawras ‐ Oman QARm Revenue • Mobile customer base growing in line with market • Revenue impacted by: ‐2% 473 461 – MVNO competitive dynamics – Lower SMS usage partially offset by increasing data growth Q1'11 Q1'12 – VoIP promotion resulted in increased EBITDA & Margin international
Slide 19: Wataniya - Kuwait
Group operations Wataniya ‐ Kuwait QARm • Market growth slowed: government stimulus in Revenue EBITDA & Margin same period in 2011 ‐7% 786 819 ‐17% • ARPU impacted by: 760 390 592 322 – Lower roaming revenues due to GCC 44% 48% 48% 42% regulation – More handset bundling promotions Q1'11 Q1'12 Q1'11
Slide 20: Nedjma - Algeria
Group operations Nedjma ‐ Algeria QARm • Overall market decrease due to seasonality Revenue EBITDA & Margin +21% sequentially 800 +27% 318 661 • Strong Revenue and EBITDA growth: 250 – Focus on higher value retail customers 38% 40% delivering – Targeting higher value corporate segment Q1'11 Q1'12 Q1
Slide 21: Tunisiana - Tunisia
Group operations Tunisiana ‐ Tunisia QARm • Macro economic environment remains challenging: Revenue EBITDA & Margin – Roaming revenue stillll ffar below b l historic h llevels l +10% +20% 646 380 due to reduced tourism 585 315 • Growth of subscribers, Revenue and EBITDA over 54% 59% % same period la
Slide 22: Contents
Contents • Results review • Strategy review • p Operations review • Additional information Qtel Group Investor Relations 2012 Q1 Results 22
Slide 23: Key operations importance to Group
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 8,030 3,832 7,461 3,550 6,475 3,034 5,617 2,653 Q1'09 Q1'10 Q1'11 Q1'12 Q1'09 Q1'10 Q1'11 Q1'12 Qatar 1,458 1,403 1,411 1,502 Qatar 894 713 776 798 Indonesia 1,433 1,861 1,997 1,998 Indonesia 704 924 954 990 Iraq
Slide 24: Key operations importance to Group
Additional information Key operations importance to Group Capex Total Customers Others Qatar Tunisia Qatar Others Tunisia 6.5% 6.8% 8.1% 2.9% 1.2% Iraq Iraq 10.5% Algeria 11.1% 9.3% 10.1% Kuwait 2.3% Oman 2.4% Algeria 21.0% Indonesia 36.7% Kuwait 6.4% Oman Indonesia 2.8% 61.9% Q1 2012 Capex = QAR 1,
Slide 25: 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 59.4 52.7 56.0 57.2 57.7 79.0 80.4 50.6 149.5 55.1 75.9 44.9 114.1 112.6 46.5 144.6 145.2 73.8 71.4 72.4 43.9 42.9 43.0 44.6 43.9 134.7 138.
Slide 26: Qtel - Qatar
Additional information Qtel ‐ Qatar Key developments Operator importance to group • Record quarterly revenue driven by growth in both Customers: 2.9%; Revenue: 18.7%; EBITDA: 20.8%; Capex: 6.8% wireless and wireline Pop : 1.8M (2012 est.) • EBITDA and EBITDA margin performance a result of Pop growth
Slide 27: Asiacell - Iraq
Additional information Asiacell ‐ Iraq Key developments Operator importance to group • Revenue increase driven by: Customers: 11.1%; Revenue: 20.4%; EBITDA: 23.9%; Capex: 9.3% – Subscriber and ARPU growth Pop : 33.6M (2012 est.) – Continued on‐net and international usage Pop growth: 2.5% Iraq Mob. p
Slide 28: Indosat - Indonesia
Additional information Indosat ‐ Indonesia Key developments Operator importance to group • Lower overall mobile industry growth continued Customers: 61.9%; Revenue: 24.9%; EBITDA: 25.8%; Capex: 36.7% • Revenue, EBITDA and EBITDA margin growth over Pop : 243.4M (2012 est.) previous year Pop growth: 1
Slide 29: Nawras - Oman
Additional information Nawras ‐ Oman Key developments Operator importance to group • Mobile customer base growing in line with market Customers: 2.4%; Revenue: 5.7%; EBITDA: 6.0%; Capex: 2.8% • Revenue impacted by: – MVNO competitive dynamics Pop: 3.2M (2012 est.) Pop growth: 3.4% Oman – Lower SMS u
Slide 30: Wataniya - Kuwait
Additional information Wataniya ‐ Kuwait Key developments Operator importance to group • Market growth slowed: government stimulus in same Customers: 2.3%; Revenue: 9.5%; EBITDA: 8.4%; Capex: 6.4% period in 2011 Pop : 3.8M (2012 est.) • ARPU impacted i t dbby: Pop growth: 2.0% Kuwait – Lower roaming
Slide 31: Nedjma - Algeria
Additional information Nedjma ‐ Algeria Key developments Operator importance to group • Overall market decrease due to seasonality sequentially Customers: 10.1%; Revenue: 10.0%; EBITDA: 8.3%; Capex: 21.0% • Strong Revenue and EBITDA growth: Pop : 37.2M (2012 est.) – Focus on higher value retail cust
Slide 32: Tunisiana - Tunisia
Additional information Tunisiana ‐ Tunisia Key developments Operator importance to group • Macro economic environment remains challenging: Customers: 8.1%; Revenue: 8.0%; EBITDA: 9.9%; Capex: 10.5% – Roaming revenue still far below historic levels due Pop : 10.8M (2012 est.) to reduced tourism Pop g
Slide 33: Wataniya Mobile - Palestine
Additional information Wataniya Mobile ‐ Palestine Key developments Operator importance to group • Milestone of more than 500k customers achieved Customers: 0.6%; Revenue: 0.9%; EBITDA: 0.1%; Capex: 4.2% • Market share continues to increase Pop1 : 4.04M Palestine e Pop growth: 3% • In‐period currenc
Slide 34: Wataniya - Maldives
Additional information Wataniya ‐ Maldives Key developments Operator importance to group • Roaming and off‐net traffic helping drive growth Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.2%; Capex: 0.7% • Further market share gains Pop : 0.325M (2011 est.) Maldives • Currency devaluation by the governmen
Slide 35: Bravo - KSA
Additional information Bravo ‐ KSA Key developments Operator importance to group Customers: 0.2%; Revenue: 0.7%; EBITDA: N/A; Capex: N/A • Revenue decrease due to fewer subscribers • Stake in Bravo increased to 52.5% during period Pop : 28.8M (2012 est.) Pop growth: 2.2% KSA Mob. penetration: 202% G
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 June Customers: 0.2%; Revenue: 0.37%; EBITDA: N/A; Capex: 0.70% 2009 Pop : 169.4M (2012 est.) Pakistaan Pop growth: 1.7% • Fixed wireless customer base at the
Slide 37: 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: 0.11% • Fixed wireless customer base at the end of 3M 2012 at Pop : 6.3M (2012 est.) Jordan n 20.4K comp
Slide 38: 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 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 % 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 40: Any further questions?
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 1H/Q2 Results – TBA events
Slide 41: “L_/0 tel Group
“L_/0 tel Group