Slide 1: Growth Momentum Maintained - Q1 2011 Results
The Qtel Group Growth Momentum Maintained Q1 2011 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 Q1 2011 developments
Group results Key Q1 2011 developments Solid and consistent financial performance • Increases in Revenue of 17%, EBITDA of 17% and normalised Net Profit attributable to Qtel shareholders up 16% when comparing year over year • 2011 guidance a sign of confidence and solid continued growth Ongoing deve
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +17% +17% 7,478 +14% 3,550 +14% +58% 6,417 +48% 3,034 5,617 2 653 2,653 51% 47% 47% 48% 3,554 1,794 Q1'08 Q1'09 Q1'10 Q1'11 Q1'08 Q1'09 Q1'10 Q1'11 Strong revenue growth and efficiency initiatives drive EBITDA performan
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)) Net Foreign Exchange +104% 1,213 +2% +3% +30% 24,940 23,736 24,180 -37% 37% +16% 16% +13% 762 18,207 594 659 Normalized for Q1 2010 one-off Qatar Royalty 525 Adjustment
Slide 7: Capital expenditure and capital intensity
Group results Capital expenditure and capital intensity Capex (QARm) Capex / revenue (%) +276% 2,064 +131% 37% -35% 1,346 -20% -43% 1,077 21% 16% -33% 14% 549 Q1'08 Q1'09 Q1'10 Q1'11 Q1'08 Q1'09 Q1'10 Q1'11 Previous year’s heavy capex program normalised - capital efficiency initiatives ongoing 6
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (% as of March 31, 2011) Short-term Short term Long-term 46,868 Others 2,702 6% 36,117 Indonesia 2,201 , 0 22% 30,644 10,747 21,231 44,166 817 33,916 Qatar1 20,414 19,897 72% Q1'08 Q1'09 Q1'10 Q1'11 Solid, co
Slide 9: Debt profile
Group results Debt profile Qtel Q Q.S.C. S C Only (US$ millions as of March 31, 31 2011) 3,500 3,000 3,000 2,500 2,000 1,500 1,250 900 1,000 1,000 1,000 750 600 750 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Loan Type (in US$ millions) Amount Drawn LIBOR Plus Ra
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers Proportional customers +14% +18% 75,579 +17% +17% 43,346 +233% 66,364 +333% 37,119 56,033 31,712 16,844 7,321 Q1'08 Q1'09 Q1'10 Q1'11 Q1'08 Q1'09 Q1'10 Q1'11 Impressive customer base increase across mature and growth markets 9
Slide 11: 2011 Q1 performance summary
Group results 2011 Q1 performance summary 3 months ended Change March 2011 Q1 2011 / Q1 2010 QAR Millions Consolidated revenue 7,478 +17% 17% EBITDA 3,550 +17% Net profit attributable to Qtel shareholders 762 -37%1 Earnings per share (in Qatari Riyals) 4.332 -37% Market capitalization (as of 31 Marc
Slide 12: 2011 annual guidance
Group results 2011 annual guidance 2010 Full Year 2011 Guidance Results QAR Billions Consolidated revenue 27.2 +8 to +13% 29.4 – 30.7 EBITDA 12.5 +8 to +13% 13.5 – 14.1 Capital expenditure 6.9 +5 to +15% 7.3 – 8.0 Positive 2011 outlook 11
Slide 13: Contents
Contents • Results review • Strategy review • Operations review 12
Slide 14: 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 Maintaining a clear focus on l
Slide 15: Contents
Contents • Results review • Strategy review • Operations review 14
Slide 16: Qtel - Qatar
Group operations Qtel - Qatar QARm Revenue • EBITDA g growth p primarily y driven by y cost efficiency y +5% efforts 1,365 1,428 • Revenue stable – slight increase due to revenue g ((including accounting g ARPU)) which has now been aligned with the rest of the Group Q1'10 Q1'11 • Continued solid gro
Slide 17: Asiacell - Iraq
Group operations Asiacell - Iraq QARm Revenue • Strong gQQ1 2011 revenue and EBITDA g growth +17% 1,374 driven by increased customer base and increased 1,174 usage • p Competitive dynamics y remain unchanged g • Network expansion continues driven by market Q1'10 Q1'11 growth EBITDA & Margin +14% 778
Slide 18: Indosat - Indonesia
Group operations Indosat - Indonesia QARm Revenue EBITDA & Margin • Industry y competitive p challenges g continued in Q1 +7% +3% • Solid growth of cellular segment revenue 1,861 1,997 954 924 supported by growth in customer base • Transformation of the business proceeding with 50% 48% Voluntary Sep
Slide 19: Nawras - Oman
Group operations Nawras - Oman QARm Revenue • Positive revenue impact p from fixed services and +10% 473 International Gateway 432 • Continued strong competitive environment • 2010 Q1 EBITDA positively impacted by one-off roaming and interconnect benefits Q1'10 Q1'11 • Higher operating and maintenan
Slide 20: Wataniya - Kuwait
Group operations Wataniya - Kuwait QARm Revenue EBITDA & Margin • Strong g subscriber and revenue g growth - +22% +42% particularly in prepaid segment 819 390 671 • Market share increased 275 • Gross margins and EBITDA improved primarily 41% 48% due to higher revenue while maintaining cost levels Q1
Slide 21: Nedjma - Algeria
Group operations Nedjma - Algeria QARm Revenue EBITDA & Margin • Despite p traditionally y slower season, Q1 +38% +51% performance very strong: 661 250 – Revenue 480 165 – EBITDA 34% 38% • Customer base reduction due to ongoing subscriber base clean up – focus on retaining Q1'10 Q1'11 Q1'10 Q1'11 hi
Slide 22: Tunisiana - Tunisia
Group operations Tunisiana - Tunisia QARm (50% consolidated prior to Q1 2011) Revenue EBITDA & Margin • Acquisition q of consolidating g shareholding g to 75% - +77% +83% fully consolidated results as of Q1 2011 585 315 • Market share steady, continued subscriber growth 331 173 • Effect of political
Slide 23: Contents
Contents • Results review • Strategy review • Operations review • Additional information 22
Slide 24: Key operations importance to Group
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 7 478 7,478 3,550 6,417 3,034 5,617 2,653 3,554 1,794 Q1'08 Q1'09 Q1'10 Q1'11 Q1'08 Q1'09 Q1'10 Q1'11 Qatar 1,236 1,458 1,365 1,428 Qatar 822 894 713 776 Iraq 545 879 1,174 1,374 Iraq 294 470 683 778 Indonesia - 1
Slide 25: Key operations importance to Group
Additional information Key operations importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar Others 5.9% 3.3% 9.1% 7.9% 3.1% 1.1% Iraq Algeria Algeria 11.0% 9.3% 10.7% Kuwait Kuwait Iraq 2.5% 7.8% 26.8% Oman 2.6% Oman 4.6% Indonesia Indonesia 33.2% 61.1% Q1 2011 Capex = QAR 1,0
Slide 26: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Wataniya - Maldives Bravo – KSA Wataniya - Palestine 138.7 56.0 55.1 73.5 70.9 55.9 55.4 52.1 51.1 52.3 53.4 69.1 67.9 70.6 68.5 52.0 52.4 52.6 52.7 43.4 43.0 44.6 123.2 118.4 123.9 40.9 114.4 112.6 116.
Slide 27: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • EBITDA growth primarily driven by cost efficiency Customers: 3.1%; Revenue: 19.1%; EBITDA: 21.9%; Capex: 9.1% efforts Pop : 1.8M (2011 est.) • Revenue stable – slight increase due to revenue Pop growth: 4.0% Qattar a
Slide 28: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Strong Q1 2011 revenue and EBITDA growth driven Customers: 11.0%; Revenue: 18.4%; EBITDA: 21.9%; Capex: 26.8% by increased customer base and increased usage Pop : 32.8M (2011 est.) • Competitive dynamics remain un
Slide 29: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Industry competitive challenges continued in Q1 Customers: 61.1%; Revenue: 26.7%; EBITDA: 26.9%; Capex: 33.2% • Solid growth of Cellular segment revenue supported Pop : 237.4M (2011 est.) by growth in customer
Slide 30: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Positive revenue impact from fixed services and Customers: 2.6%; Revenue: 6.3%; EBITDA: 6.8%; Capex: 4.6% International Gateway Pop: 3.1M 2011 est.) • Continued strong competitive environment Pop growth: 3.4% man •
Slide 31: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Strong subscriber and revenue growth - particularly Customers: 2.5%; Revenue: 10.7%; EBITDA: 11.0%; Capex: 7.8% in prepaid segment Pop : 3.7M (2011 est.) • Market share increased Pop growth: 2.0% ait Kuwa Mob pe
Slide 32: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Despite traditionally slower season, Q1 performance Customers: 10.7%; Revenue: 8.8%; EBITDA: 7.0%; Capex: 9.3% very strong: Pop : 36.7M (2011 est.) – Revenue Pop growth: 1.5% Algerria – EBITDA Mob penetration: 73
Slide 33: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group • Acquisition of consolidating shareholding to 75% - Customers: 7.9%; Revenue: 7.8%; EBITDA: 8.9%; Capex: 5.9% fully consolidated results as of Q1 2011 Pop : 10.7M (2011 est.) • Market share steady, continued su
Slide 34: Wataniya - Palestine
Additional information Wataniya - Palestine Key developments Operator importance to group • Launch of Wataniya Mobile as a public shareholding Customers: 0.5%; Revenue: 0.8%; EBITDA: N/A; Capex: 0.6% company after a successful IPO on Palestine Pop1 : 4.04M stine Exchange (PEX) Pop growth: 3% penetra
Slide 35: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • Solid Revenue and EBITDA growth YoY: Customers: 0.2%; Revenue: 0.5%; EBITDA: 0.3%; Capex: 1.5% – Revenue growth of 20% Pop : 0.325M (2011 est.) – EBITDA 100% growth compared to same Maldives Pop growth: 1.6% p
Slide 36: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Customers additions up 11% over Q1 2010 – over Customers: 0.3%; Revenue: 0.9%; EBITDA: N/A; Capex: N/A 206K subscribers Pop : 26.7M (2011 est.) • Normalized EBITDA continues to trend positively - Pop growth: 2.2% SA M
Slide 37: 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: 0.12%; Revenue: 0.24%; EBITDA: N/A; Capex: 0.85% June 2009 Pop : 169.4M (2011 est.) akistan • Fixed wireless customer base at the end of Q1 2011 Pop
Slide 38: 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: 0.07%; EBITDA: N/A; Capex: 0.09% 2008 Pop : 6.3M (2011 est.) ordan • Fixed wireless customer base at the end of Q1 2011 Pop growth: 2.3%
Slide 39: 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 40: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives Oman Qatar KSA Tunisia 2011 (est.) GDP real growth % 3.6 6.2 9.6 5.3 6.0 4.8 20.0 7.5 1.3 (2010) (3.3) (6.1) (0.8) (2.0) (8.0) (4.2) (16.3) (3.7) (3.7) Consumer prices % 5.0 7.1 5.0 6.1 6.5 3.5 4.2 6.0 4.0
Slide 41: 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 1H Results: August g – TBD events 40
Slide 42: Thank-you
Thank-you