Turkcell Iletisim Hizmetleri A.s. · BIST:TCELL
Turkcell Iletisim Hizmetleri A.s — Turkcell — FY2001 Earnings Presentation
18 slides from Turkcell Iletisim Hizmetleri A.s's earnings presentation, Mar 8, 2002
Slide 1: Turkcell 2001 Year End Results Conference Call
Turkcell 2001 Year End Results Conference Call 8 March 2002 1
Slide 2: Notice
Notice The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the
Slide 3: Overview of 2001 Operations and Looking Ahead
Overview of 2001 Operations and Looking Ahead Muzaffer Akpınar, CEO 3
Slide 4: Overview of the year 2001
Overview of the year 2001 12.2 12.2 million million subs subs Turkcell successfully managed 21% 21%upup in in 2001 2001 the economic turmoil in Turkey Immediate reaction to crisis by Revenue Revenue US$ US$ 1.8 1.8 bn bn significant cut of opex and capex Turkcell was able to partially Post- Post-FX
Slide 5: Turkcell's New Business Environment
Turkcell’s New Business Environment Turkcell’s operating environment has significantly changed during 2001 End of high subscriber growth Increased competition in a four-operator market Pressure on margins Profitability, as well as market share of high-value customers, becomes a priority Providing di
Slide 6: Our Strategic View
Our Strategic View Turkcell will be the leading and well trusted company in terms of its service offerings and business relations by adding higher value to its customers, business partners and shareholders Key priorities To understand customer values and behaviors To “Win the Crowd” by gaining trust
Slide 7: Key Focus Areas
Key Focus Areas Facts Approach Slower subscriber growth Focus on retention and low- low-cost acquisition Focus on market share of high- high-value customers MoU and ARPU decline Encourage usage Introduce volume based incentives Increased competition Ensure differentiated service offerings Emphasis o
Slide 8: Competitive Landscape
Competitive Landscape Cumulative Turkcell Subscribers (millions) Cumulative Market Share* 12.2 Telsim 10.1 4.5 7.6 Turkcell 5.6 4.6 Others 2000 2001 * Competitor information based on their media appearance Annual cumulative churn (%) Increased focus on retention: Turkcell promotes its super- super-
Slide 9: Regulatory and Legal Environment
Regulatory and Legal Environment Telecom Board’s proposed solution for the national roaming agreement was not feasible technically or commercially Injunction against Telecom Board’s proposed solution for the national roaming agreement received from the local court. International arbitration is also
Slide 10: Recent Actions
Recent Actions Management restructuring Implementation of change program Confirmation of strategy Revision of our key priorities Increased familiarity with operations Fintur restructuring step 10
Slide 11: Proposed Fintur Restructuring
Proposed Fintur Restructuring Current Tcell 25% Proposed Tcell 41.45% Cukurova Sonera 35% Restructuring Sonera 58.55% Group 100% Ownership C.OVA 40% Fin Fintur Holdings Fintur Fintur Fin Fintur Fintur Telecom Technology Holdings Technology Azercell Digiturk Azercell Digiturk Kcell Superonline Kcell
Slide 12: Fintur International Operations
Fintur International Operations1 Subcribers Subscriber Subscriber Current Operator Pop Pop (million) Market mobile Jan 2002 growth in Country share (%) (‘000) 2001(%) penetration (%) 2001(%) 7.9 82 529.5 36 8.0 Azerbaijan 14.9 73 447.9 201 4.1 Kazakhstan 4.8 32 98.4 35 6.0 Georgia 3.6 51 95.5 65 5.7
Slide 13: Operational and Financial Highlights of 2001
Operational and Financial Highlights of 2001 Ekrem Tokay, CFO 13
Slide 14: Operational Results
Operational Results MOU (minutes) ARPU (Blended, US$) 103 23.3 68 64 13.1 13.2 56 11.0 Q3 2001 Q4 2001 2000 2001 Q3 2001 Q4 2001 2000 2001 ARPU by subscriber type (Quarterly, US$) SAC (US$) 28.3 52 21.2 17.7 20.4 40 32 12.7 31 7.1 5.8 7.1 Q3 2001 Q4 2001 2000 2001 Q3 2001 Q4 2001 2000 2001 14 Postpa
Slide 15: Financial Results
Financial Results1 Revenue (million US$) Pre- Pre-FX EBITDA (million US$) 2,225 725 611 1,787 177 458 123 383 34% 39% 33% 32% Q3 2001 Q4 2001 2000 2001 Q3 2001 Q4 2001 2000 2001 Post- Post-FX EBITDA (million US$) Net Income (million US$) 703 228 460 Q3 2001 Q4 2001 153 103 -27 32% 34% 26% 2000 2001
Slide 16: Cash Flow
Cash Flow million US$ 2001 Q3 2001 Q4 2000 YE 2001 YE Beginning Cash 59 133 249 363 Operating Cash Flow 126 124 348 289 Capital Injection 178 - 247 178 Net Financing - 209 -9 501 - 427 Cash Used For Investing - 21 -5 -982 - 160 Net Change In Cash 74 110 114 - 120 Cash Balance 133 243 363 243 Net Cas
Slide 17: Financing and Capex in 2001
Financing and Capex in 2001 Debt Repayments (million US$) Capital Expenditure (million US$)1 275 1,110 62 973 202 43 129 450 Interest 213 315 Budgeted 71 159 41 Principal 57 7 34 197 Actual Q1 Q2 Q3 Q4 1998 1999 2000 2001 1 Excluding US$ 500 million licence fee Total Debt (million US$)1 Total Debt (
Slide 18: Financing
Financing Total million US$ Q1 Q2 Q3 Q4 2002 2003 2004 2005 Principal 68 116 79 117 380 389 128 700 Interest 52 29 56 23 160 128 100 96 Total 120 145 135 140 540 517 228 796 Major Obligations Alternatives Turkcell has apprx. US$540 M of US$120 M domestic loan extention debt repayment in principal an