Turkcell Iletisim Hizmetleri A.S. · BIST:TCELL
Turkcell Iletisim Hizmetleri A.S — Q1 2003 Earnings Presentation
20 slides from Turkcell Iletisim Hizmetleri A.S's earnings presentation, May 2, 2003
Slide 1: Results for First Quarter 2003
1 Results for First Quarter 2003 May 2, 2003
Slide 2: Notice
2 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. Neither
Slide 3: Overview of Operations
3 Overview of Operations Muzaffer Akpınar, CEO
Slide 4: Turkcell today
4 Turkcell today Leader in a changing business environment 16.3 million subscriber base representing app. 24% of Turkish population Continued subscriber growth, 589K net new additions Implemented 4.7% tariff increase despite price competition Achievement in profitability during a period of volatilit
Slide 5: Quarter of macro uncertainties
5 Quarter of macro uncertainties Q1 developments: Iraq war impacted market sentiment negatively during the first quarter Turkey experienced volatility in the foreign exchange rate Interest rates reached 76% levels due to unstable environment Iraq war finished in a short period of time Pending issues
Slide 6: 589K net new subscriber additions in Q1 2003
6 589K Net new subscriber additions in Q1 2003 Postpaid Prepaid Total (million) 4% 16.3 15.7 14.9 13.8 12.7 11.6 11.0 10.2 9.2 8.1 4.6 4.6 4.7 4.7 4.7 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003
Slide 7: Turkcell's Success Story
7 Turkcell’s Success Story Top Quality Network Leading Brand Image Enhanced Customer Relationship Management Strong Distribution Channels Variety of Value Added Services and Tariffs Well established enterprise management focus Coaching and leadership program
Slide 8: Limited impact of increased competition on SAC and Churn
8 Limited impact of increased competition on SAC and Churn SAC Churn (USD) 32 23 23 3.9% 4.5% 3.1% Q1 2002 Q4 2002 Q1 2003 Q1 2002 Q4 2002 Q1 2003 Tariff based competition continued Competitors did not spend aggressively to acquire new subscribers
Slide 9: Slight Decline in Usage Levels
9 Slight Decline in Usage Levels MoU MoU declined 4% to 51 in Q1 (minutes) mainly due to seasonality and 53 53 51 negative sentiment in the market Value added services and SMS usage constituted app. 12% of the revenue in Q1 2003 Q1 2002 Q4 2002 Q1 2003
Slide 10: Recent developments on legal issues
10 Recent developments on legal issues Dispute on frequency usage fee for prepaid subscribers Turkcell had an ongoing dispute with the Telecommunication Authority regarding the collection of frequency usage fees from prepaid subscribers Recently Turkcell received a payment order and will make the pa
Slide 11: Overview of Financial Results
11 Overview of Financial Results
Slide 12: ARPU
12 ARPU ARPU (Prepaid, ARPU (Blended) Postpaid) (USD) (USD) Prepaid Postpaid 22.4 20.9 20.7 11.5 10.9 10.1 6 5.9 5.7 Q1 2002 Q4 2002 Q1 2003 Q1 2002 Q4 2002 Q1 2003 Postpaid ARPU in Q1 was negatively impacted by both seasonality and negative sentiment in the market which was also reflected in usage
Slide 13: Amendments to Q4 and YE 2002 financials
13 Amendments to Q4 and YE 2002 financials Due to recent developments regarding the dispute on frequency usage fees for prepaid subscribers we booked provisions in our Q4 and YE 2002 financial statements. Below are the details of these amendments: Previously Difference Amended (US$ million) announce
Slide 14: Strong Margins
14 Strong Margins Revenues, Gross EBITDA pre FX, Net Income Margin post FX (million USD) Pre FX EBITDA Post FX EBITDA Post FX EBITDA Margin 33% 40% 40 29% 28% 37% 197 27% 198 505 491 157 437 160 136 138 0,6 -18 Q1 2002 Q4 2002 Q1 2003 Q1 2002 Q4 2002 Q1 2003 Q1 2002 Q4 2002 Q1 2003 *For reconciliati
Slide 15: Closely monitored costs
15 Closely monitored costs Direct Cost of Revenue, Sales & Marketing, General & Administration, % of Revenue % of Revenue % of Revenue (million USD) One off Restatement of expense related prepaid to transmission frequency usage lines of $28 mio fee 16% 72% 72% 67% 363 313 327 10% 81 10% 6% 45 49 5%
Slide 16: Improved Cashflow
16 Improved Cashflow Q1 Q4 Q1 (million USD) 2002 2002 2003 EBITDA Post FX 160 138 197 LESS: Capex Licence & Investments (13) (11) (60) Interest (41) (44) (50) Other 9 119 69 Net Change in Debt (68) (113) (241) Equity - - - Cash Generated 47 89 (85) Cash Balance 290 394 309
Slide 17: Reconciliation of EBITDA
17 Reconciliation of EBITDA In accordance with the new rules recently adopted by the SEC regarding the use of non-GAAP financial measures, please find below a reconciliation of EBITDA used in our presentation to its most directly comparable GAAP measure. US$ million Q1 02 Q4 02 Q1 03 EBITDA 176.6 16
Slide 18: Balance Sheet
18 Balance Sheet Q1 Q4 Q1 (million USD) 2002 2002 2003 Cash & Cash Equivalents 290 394 309 Short-term Debt 402 383 126 Long-term Debt 1,165 925 923 Total Debt 1,568 1,308 1,049 Net Debt 1,278 914 740 Total Equity 1,286 1,331 1,371 Total Debt / EBITDA* 2.5 1.9 1.3 Net Debt / EBITDA* 2.0 1.3 0.9 EBITD
Slide 19: Financing
19 Financing Debt Repayment Schedule (US$ million) (million USD) 2003-Q1 Q2 Q3 Q4 2003 2004 2005 2006 Principle 262 16 18 78 373 94 763 50 Interest 51 11 49 10 121 108 102 1 Total 313 27 67 88 494 202 865 51 Turkcell prepaid the outstanding due amount on the 1999 Bank Facility, which totalled US$ 24
Slide 20: TURKCELL'y’
TURKCELL'y’ Fj
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