Slide 1: The Qtel Group 9M 2012 Results
The Qtel Group 9M 2012 Results 22 October 2012
Slide 2: Disclaimer
Disclaimer • Qatar Telecom (Qtel) Q.S.C. and the group of companies which it forms part of (“Qtel Group”) cautions investors that certain statements contained in this document state Qtel Group management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forwa
Slide 3: Contents
Contents • Results review • Strategy review • Operations review Qtel Group Investor Relations 2012 9M-Q3 Results 3
Slide 4: Key 9M 2012 highlights
Group results Key 9M 2012 highlights Performance on track • Increases in Revenue of 6.1%, EBITDA of 6.7% and Net Profit attributable to Qtel shareholders of QAR 2,421 million, up 12.6%. • Net Profit for the period was negatively impacted by adverse foreign exchange movement in Indonesia and Algeria,
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +6% +7% +17% +15% 25,020 11,661 +16% 23,573 +15% 10,933 20,218 9,544 17,485 8,289 47% 47% 46% 47% 9M'09 9M'10 9M'11 9M'12 9M'09 9M'10 9M'11 9M'12 Strong, sustained revenue growth; operational focus continues to yield po
Slide 6: Net profit and net debt
Group results Net profit and net debt1 Net profit attributable to Qtel shareholders (QARm) Net debt1 (QARm) and net debt / EBITDA Net Foreign Exchange +13% +15% +4% -12% 2,421 25,522 -11% 26,290 2,436 -24% 2,349 22,800 2,149 20,081 2,072 2,303 2,635 2,043 2.34 1.91 1.91 1.34 277 133 106 (214) 9M'09
Slide 7: Capital expenditure
Group results Capital expenditure Capex (QARm) Capex / revenue (%) 6,287 +12% 36% -33% -9% 4,669 4,185 4,229 -42% -5% -15% 21% 20% 17% 9M'09 9M'10 9M'11 9M'12 9M'09 9M'10 9M'11 9M'12 Capital efficiency continues to improve Qtel Group Investor Relations 2012 9M-Q3 Results 7
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (% as of September 30, 2012) Short-term Long-term Others 8% 46,200 37,395 Indonesia 36,111 14,748 2,266 33,771 25% 8,893 6,885 35,129 Qatar 31,452 27,218 26,886 67%1 9M'09 9M'10 9M'11 9M'12 Short and long ter
Slide 9: Debt profile
Group results Debt profile Qtel Q.S.C. Only (US$ millions as of September 30, 2012) 1,600 1,400 1,250 1,200 1,000 1,000 1,000 900 750 750 800 600 600 400 200 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Loan Type (in US$ millions) Amount Drawn LIBOR Plus Rate1 Repayment 1,250 1
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers Proportional customers +8% +19% +13% 89,173 +23% 82,422 53,552 +31% +32% 47,496 69,056 38,609 52,834 29,190 9M'09 9M'10 9M'11 9M'12 9M'09 9M'10 9M'11 9M'12 Sustained growth leads to record customer numbers Qtel Group Investor Relations 2
Slide 11: 2012 9M performance summary
Group results 2012 9M performance summary 9 months ended Change 2012 Qtel Group QAR Millions September 2012 9M 2012 / 9M 2011 Annual Guidance Consolidated revenue 25,020 +6% +4 - 9% EBITDA 11,661 +7% +3 - 8% Net profit attributable to Qtel shareholders 2,421 +13% - Earnings per share (in Qatari Riya
Slide 12: Contents
Contents • Results review • Strategy review • Operations review Qtel Group Investor Relations 2012 9M-Q3 Results 12
Slide 13: The Qtel Group strategy: Wataniya Telecom Kuwait MTO
The Qtel Group strategy: Wataniya Telecom Kuwait MTO Transaction • Increased shareholding in Wataniya Telecom Kuwait from 52.5% to 92.1% (pending final regulatory approval) • KWD 2.600 per share • Total consideration of KWD 519.1 million (US$ 1.8 billion) • Investors able to exit at a healthy premiu
Slide 14: Contents
Contents • Results review • Strategy review • Operations review Qtel Group Investor Relations 2012 9M-Q3 Results 14
Slide 15: Qtel - Qatar
Group operations Qtel - Qatar QARm • Strong financial performance in 2012 continued: Revenue +9% – Revenue and EBITDA growth 4,645 4,244 – EBITDA margin maintained • 4G/LTE customer trials now underway • Further expansion of Qtel Fibre to the Home program: 9M'11 9M'12 – 135K homes passed EBITDA & Ma
Slide 16: Asiacell - Iraq
Group operations Asiacell - Iraq QARm • Revenue and EBITDA results remain strong Revenue +16% • Awaiting regulatory approval for additional increase 5,041 4,331 to 60% ownership • Change in revenue taxation regime in Q2 • Iraq IPO process ongoing : 9M'11 9M'12 – Provisions have been made for IPO fin
Slide 17: Indosat - Indonesia
Group operations Indosat - Indonesia QARm • Market-leading growth and retention efforts resulting Revenue EBITDA & Margin in solid local currency revenue and EBITDA +0.1% +3% 6,438 6,445 performance: 3,131 3,218 – Full quarter impact of SMS interconnection fee 49% 50% – Higher quality customer addit
Slide 18: Nawras - Oman
Group operations Nawras - Oman QARm Revenue • Gaining subscriber market share in a challenging -3% competitive environment 1,439 1,401 • Healthy growth of the fixed line business • Lower SMS traffic has negative impact on Revenue and EBITDA 9M'11 9M'12 • “Turbo charging “of network continues in orde
Slide 19: Wataniya - Kuwait
Group operations Wataniya - Kuwait QARm • Decreasing SMS traffic and increased data Revenue EBITDA & Margin messaging usage - negative impact on Revenue and -8% 786 2,454 EBITDA 2,250 1,131 -25% 592 848 • Year on year comparison affected by one-off 44% 48% 46% government payments in 9M 2011 (Indepen
Slide 20: Nedjma - Algeria
Group operations Nedjma - Algeria QARm • Strong local currency Revenue and EBITDA Revenue EBITDA & Margin +18% +23% performance year to date 2,549 1,013 • Higher-end customer and Corporate segment focus 2,167 821 helping to drive ARPU gains 38% 40% • Positive growth in both subscriber and revenue ma
Slide 21: Tunisiana - Tunisia
Group operations Tunisiana - Tunisia QARm • Foreign exchange movements adversely impacted Revenue EBITDA & Margin results in period -2% +0.4% • Revenue and EBITDA performance in local currency 2,047 2,003 1,161 1,156 strong • Market leadership position solidified 56% 58% • Launch of 3G service and p
Slide 22: Contents
Contents • Results review • Strategy review • Operations review • Additional information Qtel Group Investor Relations 2012 9M-Q3 Results 22
Slide 23: Key operations importance to Group
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 25,020 23,573 11,660 10,933 20,218 9,544 17,485 8,289 9M'09 9M'10 9M'11 9M'12 9M'09 9M'10 9M'11 9M'12 Qatar 4,320 4,197 4,244 4,645 Qatar 2,620 2,206 2,241 2,456 Indonesia 4,639 5,928 6,438 6,445 Indonesia 2,220 2
Slide 24: Key operations importance to Group
Additional information Key operations importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar Others 7.4% 3.3% 8.9% 7.9% 2.8% 1.3% Iraq Algeria 11.0% Iraq 9.9% Algeria 14.7% Kuwait 14.7% 2.3% Oman 2.4% Kuwait 5.7% Oman 4.6% Indonesia Indonesia 40.7% 62.4% 9M 2012 Capex = QAR 4,2
Slide 25: Blended ARPU development
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Wataniya - Maldives Bravo – KSA Wataniya - Palestine 44.9 46.6 60.1 59.4 59.2 58.8 43.9 42.9 42.4 57.2 57.7 80.4 41.2 50.6 144.6 137.8 145.2 149.5 154.3 153.2 75.9 79.0 72.4 73.2 68.2 112.6 108.5 111.4 4
Slide 26: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • Strong financial performance in 2012 continued: Customers: 2.8%; Revenue: 18.6%; EBITDA: 21.1%; Capex: 8.9% – Revenue and EBITDA growth – EBITDA margin maintained Pop : 1.8M (2012 est.) Pop growth: 4.0% • 4G/LTE cust
Slide 27: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Revenue and EBITDA results remain strong Customers: 11.0%; Revenue: 20.1%; EBITDA: 23.3%; Capex: 14.7% • Awaiting regulatory approval for additional increase to Pop : 33.6M (2012 est.) 60% ownership Pop growth: 2.
Slide 28: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Market-leading growth and retention efforts resulting in Customers: 62.4%; Revenue: 25.8%; EBITDA: 27.6%; Capex: 40.7% solid local currency revenue and EBITDA performance: – Full quarter impact of SMS intercon
Slide 29: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Gaining subscriber market share in a challenging Customers: 2.4%; Revenue: 5.6%; EBITDA: 5.6%; Capex: 4.6% competitive environment • Healthy growth of the fixed line business Pop: 3.2M (2012 est.) • Lower SMS traffi
Slide 30: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Decreasing SMS traffic and increased data messaging Customers: 2.3%; Revenue: 9.0%; EBITDA: 7.3%; Capex: 5.7% usage - negative impact on Revenue and EBITDA Pop : 3.8M (2012 est.) • Year on year comparison affect
Slide 31: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Strong local currency Revenue and EBITDA performance Customers: 10.2%; Revenue: 10.2%; EBITDA: 8.7%; Capex: 14.7% year to date Pop : 36.5M (2012 est.) • Higher-end customer and Corporate segment focus Pop growth:
Slide 32: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group • Foreign exchange movements adversely impacted results Customers: 7.9%; Revenue: 8.0%; EBITDA: 10.0%; Capex: 7.4% in period Pop : 10.8M (2012 est.) • Revenue and EBITDA performance in local currency Pop growth:
Slide 33: Wataniya Mobile - Palestine
Additional information Wataniya Mobile - Palestine Key developments Operator importance to group • Revenue growth of 14% with EBITDA 49% higher Customers: 0.7%; Revenue: 0.9%; EBITDA: 0.1%; Capex: 1.6% compared to 2011 Pop1 : 4.04M Palestine Pop growth: 3% • Customer base now at 592K compared to 433
Slide 34: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • Revenue and EBITDA growth maintained Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.2%; Capex: 0.3% • Capital investment in 3G network paying off with Pop : 0.331M (2012 est.) Maldives increasing customers and usag
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 steady despite fewer subscribers • Wataniya Group stake in Bravo increased to 52.5% in 1H Pop : 28.8M (2012 est.) Pop growth: 2.0% KSA Mob. penetration:
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: 0.38%; EBITDA: N/A; Capex: 0.40% 2009 Pop : 179.0M (2012 est.) Pakistan Pop growth: 2.0% • Fixed wireless customer base at the e
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: 0.03%; Revenue: 0.06%; EBITDA: N/A; Capex: 0.12% • Fixed wireless customer base at the end of 9M 2012 at Pop : 6.4M (2012 est.) Jordan 19.9K compar
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 2012 (est.) GDP real growth % 3.1 6.1 11.1 6.6 4.4 5.0 6.0 6.0 2.2 (2011) (2.5) (6.5) (9.9) (8.2) (7.4) (5.5) (18.9) (6.8) (-0.8) Consumer prices % 5.5 6.2 7.0 3.5 11.5 3.2 4.0 4.8 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 Upcoming 2012 Full Year Results – TBA events
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