FY10 Results – Full Year Ending 31 March 2010
Vodafone Qatar Q.S.C.
Full Year Results
Year ending 31 March 2010
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FY10 Results – Full Year Ending 31 March 2010
Disclaimer
• The following presentation is made only to, and is directed only at, persons to whom such a
presentation may lawfully be communicated (“relevant persons”). Any person who is not a
relevant person should not act or rely on this presentation or any of its contents.
• This presentation contains forward-looking statements that are subject to risks and uncertainties,
including statements about Vodafone Qatar’s beliefs and expectations.
• These forward-looking statements are based on assumptions that Vodafone Qatar has made in
light of its experience in the industry in which it operates, as well as its perceptions of historical
trends, current conditions, expected future developments and other factors which Vodafone
Qatar believes are appropriate under the circumstances. Prospective investors should
understand that these statements are not guarantees of future performance or results.
• The presentation also contains certain non-GAAP financial information. Vodafone Qatar’s
management believes these measures provide valuable additional information in understanding
the performance of the Vodafone Qatar because they provide measures used by the
management to assess performance. Although these measures are important in the
management of the business, they should not be viewed as replacements for, but rather as
complementary to, the comparable GAAP measures
• Due to these factors, Vodafone Qatar cautions that prospective investors should not place
undue reliance on any forward-looking statements. Further, any forward-looking statement
speaks only as of the date on which it is made. New risks and uncertainties arise from time-totime, and it is impossible to predict these events or how they may affect Vodafone Qatar.
• Vodafone, the Vodafone logo and Vodafone Money Transfer are trademarks of the Vodafone
Group.
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FY10 Results – Full Year Ending 31 March 2010
Agenda
• Key Highlights
• Customer Growth
• Financial Highlights
• Revenue
• EBITDA
• EBIT
• Capitalised Fixed Asset Additions
• Debt
• FY11 Outlook
• Fixed Line License Update
• Condensed Statement of Income & Cash Flows
• Condensed Statement of Financial Position
• Dividends
• Shareholding Structure
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FY10 Results – Full Year Ending 31 March 2010
Key Highlights in FY10 (1st April 2009 to 31st March 2010)
• Fully subscribed IPO raised QAR 3,381.6m
Launch
• Freedom plans launched 7 July 2009
• Prepay plans launched 9 September 2009
• Implemented 2G & 3G network
Network
• 100% geographic coverage of 2G by 28 December 09
• Recent increase in network capacity to meet demand
• 9 VF retail stores, 2 mobile truck stores & online shop
Distribution & Care
Customer Numbers
• 600 outlets to join at & 2,000 where you can recharge
• Call Centre in 5 languages & recognised as top call
centre in GCC
• 464,962 Customers at 31 March 2010
• 121% ahead of plan
• Customers grew 32% last quarter
• 500,000 Customers at 9 May 2010
• 28% Population share at 31 March (30% at 9 May)
Market Share
• 18% Customer market share at 31 March
• 14% Revenue share at 31 March
Revenue &
ARPU
• Total Revenue 26% ahead of plan
• Total Mobile ARPU for quarter ending 31 March 2010 of
QR101
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FY10 Results – Full Year Ending 31 March 2010
Customer Growth
Quarterly Customers & Market Share
20%
600,000
18%
18%
500,000
464,962
16%
14%
14%
353,580
12%
10%
300,000
7%
8%
200,000
6%
150,799
4%
100,000
0.8%
2%
15,404
0%
Q1 Jun-09
Total Customers
Q2 Sep-09
Q3 Dec-09
Customer Market Share
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Q4 Mar-10
Market Share
Total Customers
400,000
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FY10 Results – Full Year Ending 31 March 2010
Financial Highlights
Financial Performance
Total Revenue
Quarterly
Annual
Q4 FY10
Q4 FY09
FY10
FY09
Mar-10
Mar-09
Mar-10
Mar-09
QARm
QARm
QARm
QARm
144.7
n/ a
361.5
n/ a
(80.1)
(225.4)
(124.6)
(80.8)
(674.7)
1
EBITDA
(28.7)
EBIT
(155.7)
Operating Free Cash Flow (excl. license
payment)
(256.0)
(416.9)
(551.6)
(492.6)
Capitalised Fixed Asset Additions
201.5
308.6
523.8
389.3
1,2
KPIs
(125.3)
Quarterly
Jun-09
Sep-09
Dec-09
Mar-10
15,404
150,799
353,580
464,962
n/ a
173
171
101
1.609M
1.623M
1.631M
1.677M
Annual Population growth
11%
8%
5%
2%
Mobile Penetration
117%
141%
152%
156%
1%
9%
22%
28%
0.8%
7%
14%
18%
Total Customers
Total Quarterly ARPU
Population
Population Share
Customer Market Share
(1) Quarterly
(2) EBIT
2
EBITDA and EBIT have been adjusted to align the Vodafone Group management fees with when revenues were earned
includes mobile license cost of QAR 7.7bn amortized over 19.16 years starting from 1 May 2009 and Quarterly EBIT has been adjusted to
distribute additional Amortisation expense incurred in March 2010 following a change from 20 to 19.16 years
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FY10 Results – Full Year Ending 31 March 2010
Revenue
Quarterly Revenue
200
178
180
160
145
QAR (millions)
140
120
100
80
60
36.1
40
20
3.08
-
Q1 Jun-09
Q2 Sep-09
Q3 Dec-09
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Q4 Mar-10
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FY10 Results – Full Year Ending 31 March 2010
EBITDA
Quarterly Adjusted EBITDA*
-10
-20
QAR (millions)
-30
-29
-40
-39
-50
-60
-70
-80
-73
-85
-90
Unadjusted EBITDA
•
•
Q1 Jun-09
Q2 Sep-09
Q3 Dec-09
Q4 Mar-10
Q1 Jun-09
Q2 Sep-09
Q3 Dec-09
Q4 Mar-10
-73
-83
-30
-39
Q4 FY10 EBITDA in-line with management forecasts and IPO prospectus business plan.
Expected to turn cumulatively EBITDA positive by December 2011.
*Quarterly EBITDA has been adjusted to align the Vodafone Group management fees with when revenues were earned
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FY10 Results – Full Year Ending 31 March 2010
EBIT
Quarterly Adjusted EBIT*
-
QAR (millions)
-50
-100
-150
-152
-162
-156
-200
-205
-250
Q1 Jun-09
Q2 Sep-09
Q2 Sep-09
Q3 Dec-09
Q4 Mar-10
-149
-199
-149
-178
Q1 Jun-09
Unadjusted EBIT
•
Q3 Dec-09
Q4 Mar-10
Q4 FY10 EBIT in-line with management forecasts and IPO prospectus business plan.
*Quarterly EBIT has been adjusted to align the Vodafone Group management fees with when revenues were earned and to distribute additional
Amortisation expense incurred in March 2010 following a change in the amortisation period from 20 years to 19.16 years
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FY10 Results – Full Year Ending 31 March 2010
Capitalised Fixed Asset Additions
600
524
500
389
QAR (millions)
400
300
200
100
0
FY09
•
FY10
Long-term capital expenditure expected to stabilise at 9% of revenue from FY14
onwards
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FY10 Results – Full Year Ending 31 March 2010
Net Debt
Borrowings less Term Deposits
500
400
433
371
269
300
QAR (millions)
200
156
100
(100)
-34
-42
(200)
(300)
-294
(400)
Q2 Sep-08 Q3 Dec-08 Q4 Mar-09 Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 Q4 Mar-10
•
Borrowing facility extended from US$110m to US$230m to cater for increase in capex due to
accelerated customer uptake. The additional US$120m facility is at an interest rate of 1.80%.
•
Future borrowing will be required for fixed line.
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FY10 Results – Full Year Ending 31 March 2010
Outlook FY11
•
•
•
Focus on customer acquisition
Launch BlackBerry® and data products
Development of innovative solutions for the market
•
•
Complete network build
•
•
•
Vodafone Money Transfer
Indoor coverage
Convert temporary sites to permanent
Launch fixed line broadband and voice services to The Pearl,
then wider Qatar
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FY10 Results – Full Year Ending 31 March 2010
Fixed Line License
• Awarded to Vodafone Qatar Q.S.C. on 29 April 2010, subject to:
– Shareholders’ approval to change the Memorandum and Articles of
Association at the EGM on 28 June 2010; and
– Payment of QAR 10m license fee by 31 July 2010
• Fixed Line License Obligations:
• The Pearl Development
– Broadband coverage within 3 months
– Voice services within 12 months
– Performance Bond: QAR 5m
• West Bay CBD
– 100% Coverage within 30 months
– Performance Bond: QAR 10m
• Rest of Qatar
– 100% Coverage within 48 months
– Performance Bond: QAR 10m
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FY10 Results – Full Year Ending 31 March 2010
Condensed Statement of Income and Cash Flows – Year ended 31
March 2010
Year ended 31
March 2010
QAR ‘000
Period from 23
June 2008 to
March 31 2009
QAR‘000
Net cash flows used in operating
activities
Revenue
Direct costs
Other expenses
361,522
(247,570)
(339,253)
28
(31)
(123,942)
EBITDA
(225,301)
(123,945)
Depreciation
(80,007)
(752)
Amortisation of licence
Interest income
Financing costs
Loss before taxation
(369,265)
26,680
(25,495)
(673,388)
11,841
(20,067)
(132,923)
Income tax expense
-
-
Loss for the period
(673,388)
(132,923)
(0.82)
(0.26)
Cash flows from investing activities
Purchase of property, plant and
equipment
Payment for intangible assets
Interest received
Net cash flows used in investing
activities
Cash flows from financing activities
Issue of ordinary share capital
Proceeds of long term borrowings
Net movement in short term borrowing
Interest paid
Net cash flows from financing activities
Net cash flows
Basic and diluted loss per share (QAR)
Cash and cash equivalents at the
beginning of the financial period
Cash and cash equivalents at the end of
the financial period
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Year ended 31
March 2010
QAR ‘000
Period from 23
June 2008 to
March 31 2009
QAR‘000
(147,863)
(99,715)
(423,994)
(389,269)
(3,086,400)
26,680
(3,483,714)
(4,629,600)
11,841
(5,007,028)
3,393,042
379,083
(35,000)
(20,746)
3,716,379
5,072,400
35,000
(103)
5,107,297
84,802
554
554
--
85,356
554
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FY10 Results – Full Year Ending 31 March 2010
Condensed Statement of Financial Position – as at 31 March 2010
31 March 2010 31 March 2009
QAR ‘000
QAR‘000
Non-current assets
Property, plant and equipment
Intangible asset
Trade and other receivables
Total non-current assets
Current assets
Inventory
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
832,283
7,346,735
4,432
8,183,450
21,713
118,207
85,356
225,276
8,408,726
388,517
7,716,000
5,348
8,109,865
4,784
25,705
554
31,043
8,140,908
31 March 2010 31 March 2009
QAR ‘000
QAR‘000
Equity
Share capital
Legal reserve
Accumulated losses
Total equity
Non-current liabilities
End of employment benefits
Provisions
Long term borrowings
Total non-current liabilities
Current liabilities
Trade and other payables
Short term borrowings
Total current liabilities
Total liabilities
Total equity and liabilities
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8,454,000
11,442
(806,311)
7,659,131
5,072,400
(132,923)
4,939,477
1,972
4,848
379,083
385,903
392
250
642
363,692
363,692
749,595
8,408,726
3,165,789
35,000
3,200,789
3,201,431
8,140,908
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FY10 Results – Full Year Ending 31 March 2010
Dividend Expectations
•
As outlined in our IPO prospectus, subject to the Articles, any decision to pay dividends
to Shareholders and the amount of such dividends will be at the discretion and upon
recommendation of the Board.
•
The amount of dividends may vary from year to year.
•
The declaration of dividends will be subject to any limitations enshrined in the Articles
and applicable laws, and may be influenced by a number of factors, including Vodafone
Qatar’s prospects, current and anticipated cash requirements, plans for expansion,
financial performance, covenants restricting the payment of dividends in agreements
entered into by the Vodafone Qatar, the condition of the markets in which Vodafone
Qatar operates and the general economic climate.
•
Based on the Business Plan, in particular the Company’s projected cash flow and profit
before amortisation, the Company does not anticipate that it will declare a dividend
before the financial results for the year ended 31 March 2013.
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FY10 Results – Full Year Ending 31 March 2010
Vodafone Qatar Shareholder Structure
Private institution of public
Utility founded by
HH Sheikh Hamad Bin Khalifa
Al-Thani
Global
Telecommunications
leader
51%
Founding
Qatari Governmental
Institutional
Investors
15%
49%
Vodafone and
Qatar Foundation
LLC
Free float on
Qatar Exchange
45%
40%
Vodafone Qatar QSC
•
•
Authorized Share Capital:
Paid Up Capital:
845,400,000 (Shares)
QAR 8,454,000,000
Founding Government Institutions
•
•
•
•
Qatar Foundation:
Military Staff Loans Fund:
Military Pension Fund:
Health & Education Endowment:
5.0%
3.4%
3.3%
3.3%
Free Float (40%)
• Number of shares:
338,160,000 shares
• No foreign ownership restrictions
Free Float ownership split at 31 March:
• Institutional Investors:
47%
• Individual Investors: 53%
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FY10 Results – Full Year Ending 31 March 2010
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FY10 Results – Full Year Ending 31 March 2010
Contact Details
Rachael Mayo-Smith
John Tombleson
Investor Relations Manager
Chief Financial Officer
Tel:
+974 777 5642
+974 777 5835
Email:
rachael.mayo-smith@vodafone.com
john.tombleson@vodafone.com
Address: Vodafone Qatar
PO BOX 27727
Doha
Qatar
Website: www.vodafone.com.qa
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