Slide 1: The Qtel Group: Full Year 2010 Results
The Qtel Group Foundation Now in Place – Taking the Group to the Next Level Full Year 2010 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: Group results: Key 2010 developments
Group results Key 2010 developments Solid and consistent financial results • Increases in Revenue of 13%, EBITDA of 11% and Net Profit attributable to Qtel shareholders of 2% when comparing year over year • 2010 guidance exceeded Successful execution of portfolio and financial strategies • Completio
Slide 5: Group results: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +13% +11% +18% 27,179 +14% 12,465 +93% 24,025 +90% 11,231 9,825 20,319 49% 48% 47% 46% 10,543 5,166 12M'07 12M'08 12M'09 12M'10 12M'07 12M'08 12M'09 12M'10 Healthy top line and EBITDA growth Note: (1) All Indosat result
Slide 6: Group results: 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 +20% +22% +2% +38% 25,168 -11% 2,825 2,888 +9% 2,306 22,499 20,977 19,287 1,674 2,479 2,785 2,509 3.13 1,644 2.24 1.85 1.81 346 30 103 (203) 12M'07
Slide 7: Group results: Cash flow and capital expenditure
Group results Cash flow and capital expenditure Free cash flow1 (QARm) Capex (QARm) and capex / revenue (%) +48% +1,291% 8,393 3,380 -17% 6,942 +175% 5,663 1,661 -23% 35% 1,287 2,062 28% 26% -81% 20% 243 12M'07 12M'08 12M'09 12M'10 12M'07 12M'08 12M'09 12M'10 Excellent free cash flow generation whil
Slide 8: Group results: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (% as of December 31, 2010) Short-term Short term Long-term 46,852 Others 2,610 7% 36,086 Indonesia 1,985 , % 21% 28,165 21,735 7,833 44,242 748 34,101 20,987 Qatar 1 20,332 72% 12M'07 12M'08 12M'09 12M'10 Ca
Slide 9: Group results: Debt profile
Group results Debt profile Qtel Q Q.S.C. S C Only (US$ millions as of December 31, 31 2010) 3,500 3,000 3,000 2,500 2,000 1 500 1,500 1 250 1,250 900 1,000 1,000 1,000 750 750 600 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Loan Type (in US$ millions) Amount Draw
Slide 10: Group results: Total and proportional customers
Group results Total and proportional customers Total customers Proportional customers +23% +24% 74,140 41,697 +5% +253% +40% 60,401 33,525 57,518 +244% 23,996 16,302 6 984 6,984 12M'07 12M'08 12M'09 12M'10 12M'07 12M'08 12M'09 12M'10 Indonesia and Iraq continue to be key growth markets for the Group
Slide 11: Group results: 2010 FY performance summary
Group results 2010 FY performance summary 12 months ended Change 2010 Qtel Group December 2010 FY 2010 / FY 2009 Guidance QAR Millions Consolidated revenue 27,179 +13% 13% +5-10% 5 10% EBITDA 12,465 +11% +5-10% Net profit attributable to Qtel shareholders 2,888 +2% - Earnings per share (in Qatari Ri
Slide 12: Contents
Contents • Results review • Strategy review • Operations review 11
Slide 13: Strategy: Key developments and focus
Strategy Key developments and focus 2006 - 2009 2010 2011 + • Cost optimization Total Shareholder + Returns • Share price development • Dividends • Capex p efficiency y • Converged Broadband • B2B ICT • Three g geographies g p • Value creation • Three lines of business • Other adjacencies A consiste
Slide 14: Strategy: 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 A clear focus on long-term val
Slide 15: Contents
Contents • Results review • Strategy review • Operations review 14
Slide 16: Group operations: Qtel - Qatar
Group operations Qtel - Qatar QARm Revenue • Market g growth continues but at a reduced rate -5% • Maintained market leadership as competitive 5,686 5,400 dynamics continue to be intense • p Competitive mobile p pricing g continued in fourth quarter 12M'09 12M'10 • First trial phase of FTTH project
Slide 17: Group operations: Asiacell - Iraq
Group operations Asiacell - Iraq QARm Revenue +26% • Strong g full yyear 2010 revenue and EBIDTA g growth 5,054 • Ongoing customer registration requirements 3,998 continue to have an impact on subscriber numbers • Increased (and retroactive to 2008) spectrum fee 12M'09 12M'10 charged in Q4 EBITDA &
Slide 18: Group operations: Indosat - Indonesia
Group operations Indosat - Indonesia QARm Revenue EBITDA & Margin • Impact p of fourth q quarter seasonality y in addition to +21% 21% +26% 7,942 4,034 broader industry competitive challenges 6,579 3,207 • Solid year on year revenue growth driven by strong Cellular revenue growth 49% 51% • Cost effi
Slide 19: Group operations: Nawras - Oman
Group operations Nawras - Oman QARm Revenue • Continued p progress g in customer, revenue and +15% 1,864 EBITDA growth 1,625 • Fixed line and International Gateway now operational and basis for fully integrated business solutions 12M'09 12M'10 • Focus on broadband and enterprise segments • IPO succe
Slide 20: Group operations: Wataniya - Kuwait
Group operations Wataniya - Kuwait QARm Revenue EBITDA & Margin • Stable competitive p environment +6% +10% • Maintained steady market share with subscriber 2,827 1,188 1,262 2,580 and top line growth • Ongoing focus on growth market segments 46% 45% • No update on regulatory situation • Launch of l
Slide 21: Group operations: Nedjma - Algeria
Group operations Nedjma - Algeria QARm Revenue EBITDA & Margin • Strong g financial p performance: +24% +43% – Revenue 2,228 841 1,795 – EBITDA 590 – EBITDA Margin 33% 38% • Maintained market share with increase in customer base 12M'09 12M'10 12M'09 12M'10 • Regulator mandated subscriber base clean
Slide 22: Group operations: Tunisiana - Tunisia
Group operations Tunisiana - Tunisia QARm Revenue EBITDA & Margin • Increased ownership ppposition to 75% with full -1% 1% +2% 1,287 management and Board control (post-period) 1,299 701 713 • Ongoing discussions with Government and 54% 55% Regulatory authorities as to revised partnership agreement •
Slide 23: 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 Q1 Financial Highlights g g – TBD events 22
Slide 24: Thank-you
Thank-you
Slide 25: Contents
Contents • The Qtel Group • Results review • Operations review • Additional information 24
Slide 26: Key operations importance to Group: Revenue and EBITDA
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 27,179 12,465 24,025 11,231 20,319 9,825 10,543 5,166 FY'07 FY'08 FY'09 FY'10 FY'07 FY'08 FY'09 FY'10 Qatar 4,447 5,447 5,686 5,400 Qatar 2,925 3,399 3,295.6 2,878 Iraq 732 2,847 3,998 5,054 Iraq 373 1,502 2,162.2
Slide 27: Key operations importance to Group: Capex and customers
Additional information Key operations importance to Group Capex Total Customers Tunisia Others Tunisia Qatar Others Algeria 2.8% 3.7% Qatar 8.0% 3.2% 1.1% 18.6% Iraq 7.6% Algeria 11.0% Kuwait 11.1% 6.0% Kuwait 2.4% Oman Oman 2.7% 10.1% Iraq 19.5% Indonesia Indonesia 31.7% 60.5% FY 2010 Capex = QAR 6
Slide 28: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Wataniya - Maldives Bravo – KSA Wataniya - Palestine 132.9 56.0 73.3 73.5 70.9 55.9 55.4 123.2 118.4 123.9 52.1 52.3 53.4 69.1 67.9 70.6 53.7 52.0 52.4 52.6 114.4 112.6 51.1 43.4 43.0 47.1 116.3 110.5 40
Slide 29: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • Market growth continues but at a reduced rate Customers: 3.2%; Revenue: 19.9%; EBITDA: 23.1%; Capex: 18.6% • Maintained market leadership as competitive Pop : 1.7M dynamics continue to be intense Pop growth: 4.0% Qat
Slide 30: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Strong full year 2010 revenue and EBIDTA growth Customers: 11.0%; Revenue: 18.6%; EBITDA: 21.0%; Capex: 19.5% • Ongoing customer registration requirements continue Pop : 32.8M to have an impact on subscriber numbe
Slide 31: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Impact of fourth quarter seasonality in addition to Customers: 60.5%; Revenue: 29.2%; EBITDA: 32.4%; Capex: 31.7% broader industry competitive challenges Pop : 237.6M esia • Solid year on year revenue growth d
Slide 32: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Continued progress in customer, revenue and Customers: 2.7%; Revenue: 6.9%; EBITDA: 7.8%; Capex: 10.1% EBITDA growth Pop: 3.1M • Fixed line and International Gateway now operational Pop growth: 3.4% man Mob penetrat
Slide 33: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Stable competitive environment Customers: 2.4%; Revenue: 10.3%; EBITDA: 10.1%; Capex: 6.0% • Maintained steady market share with subscriber and Pop : 3.7M top line growth Pop growth: 2.0% ait Kuwa Mob penetratio
Slide 34: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Strong financial performance: Customers: 11.1%; Revenue: 8.2%; EBITDA: 6.7%; Capex: 7.6% – Revenue Pop : 36.0M – EBITDA Pop growth: 1.5% Algerria – EBITDA Margin M i Mob penetration: 74% Mob. GDP: US$ 171.6 bn •
Slide 35: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group (Revenue and EBITDA @ 50%) • Increased ownership position to 75% with full Customers: 8.0%; Revenue: 4.7%; EBITDA: 5.7%; Capex: 2.8% management and Board control (post-period) Pop : 10.7M • Ongoing discussions w
Slide 36: Wataniya - Palestine
Additional information Wataniya - Palestine Key developments Operator importance to group • Achieved successful IPO with over subscription Customers: 0.5%; Revenue: 0.5%; EBITDA: N/A; Capex: 0.3% reaching 155% Pop1 : 4.04M stine • Post-period listing on Palestine Exchange (PEX) Pop growth: 3% Mob. p
Slide 37: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • Strong growth in broadband subscribers Customers: 0.1%; Revenue: 0.4%; EBITDA: 0.1%; Capex: 0.6% • Additional resort coverage ongoing Pop : 0.325M Maldives • Continued 3G site expansion Pop growth: 1.6% • Reve
Slide 38: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Customers additions up 8% over 2009 – over 200K Customers: 0.3%; Revenue: 1.0%; EBITDA: 0.1%; Capex: 0.4% subscribers Pop : 26.7M • Net profit (loss) continues to trend positively - Pop growth: 2.2% SA Mob penetration
Slide 39: 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: 0.1%; Revenue: 0.15%; EBITDA: N/A; Capex: 0.58% June 2009 Pop : 169.4M akistan • Fixed wireless customer base at the end of Q4 2010 Pop growth: 1.7%
Slide 40: 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: 0.09%; EBITDA: N/A; Capex: 0.04% 2008 Pop : 6.3M ordan • Fixed wireless customer base at the end of Q3 2010 Pop growth: 2.3% GDP: US$ $
Slide 41: 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 42: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives Oman Qatar KSA Tunisia 2011 (est.) GDP real growth % 4.0 6.2 11.5 4.4 3.6 4.7 18.6 4.5 4.8 (2010) (3.8) (6.0) (2.6) (2.3) (3.4) (4.7) (16.0) (3.4) (3.8) Consumer prices % 5.2 5.5 5.0 3.6 5.5 3.5 3.0 5.3 3.
Slide 43: Foreign exchange
Additional information Foreign exchange Local Currency (vs. $US) – Average Monthly Rates Fluctuation of Average Quarterly Rates (vs. $US) 25% 8% 6% 20% Kuwait (KWD) 4% 15% Algeria (DZD) 2% 10% Tunisia (TND) 0% 5% Indonesia (IDR) ‐2% Iraqi (IQD) 0% ‐4% Maldive ‐5% (MVR) ‐6% Palestine ‐10% (ILS) ‐8% ‐