Slide 1: The Qtel Group: 9M 2010 Results
The Qtel Group Solid Performance in Key Markets Driving Balanced Growth 9M 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: Key 9M 2010 developments
Group results Key 9M 2010 developments Solid financial results • Increases in Revenue of 14%, EBITDA of 15% and Net Profit attributable to Qtel shareholders of 4% when comparing year over year Balanced operational performance across key markets • Indonesia delivers both good market and financial res
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +14% 20,011 +15% +22% +19% 9,544 17,485 +107% +98% 8,289 14,319 6 991 6,991 51% 49% 47% 48% 6,903 3,535 9M'07 9M'08 9M'09 9M'10 9M'07 9M'08 9M'09 9M'10 Continuing to extract positive performance from the existing portfo
Slide 6: 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)) +4% +28% +14% 2,436 2,349 +22% 25,522 -11% +41% 22,801 22,361 1 839 1,839 18,285 1,300 3.28 2.28 2.34 1.82 9M'07 9M'08 9M'09 9M'10 9M'07 9M'08 9M'09 9M'10 Steady return
Slide 7: Capital expenditure and intensity
Group results Capital expenditure and intensity Capex1 (QARm) Capex / revenue (%)1 +114% 6,287 36% -33% 4,185 +165% 21% 21% 2,932 16% 1,106 9M'07 9M'08 9M'09 9M'10 9M'07 9M'08 9M'09 9M'10 Tangible benefits from Group initiatives on capital expenditure 6 Note: (1) Post-acquisition results
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (% as of September 30, 2010) Short-term Short term Long-term Others 36,111 37,395 7% 2,266 8,893 28,732 1,677 Indonesia 21,347 30% 3,258 35,129 27,055 27,218 Qatar 1 18 089 18,089 63% 9M'07 9M'08 9M'09 9M'10
Slide 9: Debt profile
Group results Debt profile Qtel Q Q.S.C. S C Only (US$ millions as of October 20, 20 2010) 3,500 3,000 3,000 2,500 2,000 1 500 1,500 1 250 1,250 2 2 900 1,000 1,000 1,000 750 750 2 600 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Loan Type (in US$ millions) A
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers Proportional customers +31% +32% 32% 68,949 38,539 +286% -5% +26% 55,775 52,812 29,173 +277% 23,106 14,431 6,130 9M'07 9M'08 9M'09 9M'10 9M'07 9M'08 9M'09 9M'10 Steady performance from key growth markets of Indonesia, Iraq and Algeria 9
Slide 11: 2010 9M performance summary
Group results 2010 9M performance summary 9 months ended Change September 2010 9M 2010 / 9M 2009 QAR Millions Consolidated revenue 20,011 +14% EBITDA 9,544 +15% Net profit attributable to Qtel shareholders 2,436 +4% Earnings per share (in Qatari Riyals) 16.61 +4% Market capitalization (as of 30 Sept
Slide 12: Contents
Contents • Results review • Strategy review • Operations review 11
Slide 13: Key developments and focus
Strategy Key developments and focus Operational & financial synergies Operational Performance Innovation Management Acquire/Merge Portfolio Development Manage minorities Carve-outs Funding Capital Markets Liquidity q y Our strategy and focus remain unchanged 12
Slide 14: Contents
Contents • Results review • Strategy review • Operations review 13
Slide 15: Qtel - Qatar
Group operations Qtel - Qatar QARm Revenue • Maintained market leadership ppposition as -6% competitive dynamics intensified 4,320 4,047 • Revenue impacted by seasonality, summer y period holiday p and Ramadan/Eid • Subscriber market share down marginally while 9M'09 9M'10 revenue share constant - f
Slide 16: Asiacell - Iraq
Group operations Asiacell - Iraq QARm Revenue +29% • Strong g revenue g growth continued: 3,692 – Traditionally seasonally low period 2,865 – Increased competitive dynamics – Ongoing g g customer registration g requirements q had a negative effect on subscriber 9M'09 9M'10 numbers • Billing regime c
Slide 17: Indosat - Indonesia
Group operations Indosat - Indonesia QARm Revenue EBITDA & Margin • Solid yyear on year y revenue growth: g +28% +34% 5,928 2,969 – Core wireless revenue growth continues to 4,639 2,220 drive positive results • Fifth consecutive quarter of subscriber growth 48% 50% • Modernization of network ongoing
Slide 18: Nawras - Oman
Group operations Nawras - Oman QARm Revenue • Continued p progress g in customer, revenue and +14% 14% 1,316 EBITDA growth 1,150 • First full quarter of fixed line operation • Increase in competitive activity in period • IPO process initiated 9M'09 9M'10 EBITDA & Margin +39% 728 523 55% 46% 9M'09 9M
Slide 19: Wataniya - Kuwait
Group operations Wataniya - Kuwait QARm Revenue EBITDA & Margin • Maintained steady y market share with subscriber +4% +9% 910 and topline growth 2,074 872 1,908 • Strong postpaid subscription growth • New exclusive dealer agreement (Eurotelecom) 46% 44% increasing brand presence • Stable competitiv
Slide 20: Nedjma - Algeria
Group operations Nedjma - Algeria QARm Revenue EBITDA & Margin • Substantial increase in revenue and EBITDA +21% +34% • Maintained market share with increase in customer 1,610 596 base and associated revenue 1,330 445 • Regulatory landscape evolving 33% 37% 9M'09 9M'10 9M'09 9M'10 DZDm Revenue EBITD
Slide 21: Tunisiana - Tunisia
Group operations Tunisiana - Tunisia QARm Revenue EBITDA & Margin • Maintained market leadership ppposition with slight g +6% +1% increase in market share 961 1,014 526 533 • Limited market impact to date from third operator 55% 53% • Increased investment in marketing in response to changing market
Slide 22: 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 2010 Full Year Financial Highlights g g – TBD events 21
Slide 23: Thank-you
Thank-you
Slide 24: Contents
Contents • The Qtel Group • Results review • Operations review • Additional information 23
Slide 25: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • Maintained market leadership position as competitive Customers: 3.5%; Revenue: 20.2%; EBITDA: 23.1%; Capex: 11.4% dynamics intensified Pop : 1.6M • Revenue impacted by seasonality, summer holiday Pop growth: 6% Qatta
Slide 26: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Strong revenue growth continued: Customers: 11.5%; Revenue: 18.4%; EBITDA: 21.7%; Capex: 23.9% – Traditionally seasonally low period Pop : 31.3M – Increased competitive dynamics Pop growth: 2% aq Mob penetration:
Slide 27: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Solid year on year revenue growth: Customers: 58.6%; Revenue: 29.6%; EBITDA: 31.1%; Capex: 32.3% – Core wireless revenue growth continues to Pop : 243M esia drive positive results Pop growth: 1% Mob penetratio
Slide 28: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Continued progress in customer, revenue and Customers: 2.9%; Revenue: 6.6%; EBITDA: 7.6%; Capex: 12.5% EBITDA growth Pop: 3.09M • First full quarter of fixed line operation Pop growth: 4% man Mob penetration: 139% M
Slide 29: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Maintained steady market share with subscriber and Customers: 2.5%; Revenue: 10.2%; EBITDA: 9.5%; Capex: 6.3% topline growth Pop : 3.6M • Strong postpaid subscription growth Pop growth: 3% ait Kuwa Mob penetrati
Slide 30: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Substantial increase in revenue and EBITDA Customers: 11.7%; Revenue: 8.0%; EBITDA: 6.2%; Capex: 6.4% • Maintain market share with strong increase in Pop : 35.9M customer base and associated revenue Pop growth: 2
Slide 31: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group (Revenue and EBITDA @ 50%) • Maintained market leadership position with slight Customers: 8.4%; Revenue: 5.1%; EBITDA: 5.6%; Capex: 2.5% increase in market share Pop : 10.4M • Limited market impact to date from
Slide 32: Wataniya - Palestine
Additional information Wataniya - Palestine Key developments Operator importance to group • Revenue and EBITDA increased strongly Customers: 0.4%; Revenue: 0.4%; EBITDA: N/A; Capex: 0.4% • Customer acquisition continues at pace Pop1 : 4.04M stine Pop growth: 3% Mob. p penetration: 59% % Pales GDP2:
Slide 33: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • Resort expansion push continues Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.09%; Capex: 0.8% • Strong element of seasonality, with off-season for Pop : 0.396M Maldives tourism Pop growth: -0.2% M b penetration:
Slide 34: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Customers additions up 8% over 2009 Customers: 0.3%; Revenue: 1.0%; EBITDA: N/A; Capex: 0.04% • Revenue increase of 15% with strong EBITDA growth Pop : 26.2M over last year Pop growth: 3% SA Mob penetration: 145% Mob.
Slide 35: 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: N/A; Revenue: 0.15%; EBITDA: N/A; Capex: 0.83% June 2009 Pop : 185.5M akistan • Fixed wireless customer base at the end of Q3 2010 Pop growth: 2% GD
Slide 36: wi-tribe - Jordan
Additional information wi-tribe - Jordan Key developments Operator importance to group • WiMAX-based service with commercial launch June Customers: N/A; Revenue: 0.09%; EBITDA: N/A; Capex: 0.06% 2008 Pop : 6.4M ordan • Fixed wireless customer base at the end of Q3 2010 Pop growth: 2% GDP: US$ $ 22.2
Slide 37: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Wataniya - Maldives Bravo – KSA Wataniya - Palestine 73.6 73.3 73.5 70.9 55.8 53.7 55.9 52.1 51.1 52.3 53.4 69.1 67.9 52.0 52.4 52.6 43.4 156.5 47.1 116.3 110.5 40.9 45.6 107.9 105.7 106.1 104.4 132.9 12
Slide 38: 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 39: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Oman Palestine Qatar KSA Tunisia 2010 GDP real growth % 4.6 5.5 6.2 3.7 3.9 N/A 23.3 3.2 2.7 (2009) (2.6) (4.6) (5.0) (-1.7) (2.7) (-2.3) (9.5) (0.1) (1.3) Consumer prices % 5.3 6.7 6.1 3.6 N/A N/A 2.7 3.5 3.3 (200
Slide 40: Foreign exchange
Additional information Foreign exchange Local Currency (vs. $US) – Average Monthly Rates Fluctuation of Average Quarterly Rates (vs. $US) 25% 15% 20% Kuwait ((KWD)) 10% 15% Algeria (DZD) 5% 10% Tunisia (TND) 5% Indonesia 0% (IDR) Iraqi (IQD) 0% ‐5% Maldive ‐5% (MVR) Palestine (ILS) ‐10% ‐10% ‐15% ‐1