Q3 2009 presentation-FINAL w speakers · 2013-09-10 · This presentation may containstatementsthat...
Transcript of Q3 2009 presentation-FINAL w speakers · 2013-09-10 · This presentation may containstatementsthat...
NOTICE
Thi i i h f d l ki ThThis presentation may contain statements that are forward looking. Thesestatements are based on current expectations and assumptions that are subject torisks and uncertainties which may cause actual results to differ materially due tofactors discussed in this presentation, in our press release, in the Risk Factorssection of Turkcell’s most recent Form 20‐F or in other reports and filings with theUS Securities and Exchange Commission. We undertake no duty to update orrevise any forward looking statements, whether as a result of new information,future events or otherwise.f
Please note that all financial data are consolidated whereas non‐financial dataare unconsolidated unless otherwise specified.
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Turkcell Group: Solid performance in tough market Strong execution in line with 2009 guidance
Q3 2009 9M 2009
Strong execution in line with 2009 guidance
Revenue (3.7%) 6,676
YoY % 9M
2,368
Q3
2,5%
YoY %
7.4%
QoQ %(TRY1 mn Consolidated)
EBITDA2
EBITDA margin
(18.8%) 2,297
(6.4 pp) 34.4%
814
34.4%
(7.6%)
(3.8 pp)
14.7%
2.2 pp
Net Income (31.4%) 1,449497 (21.0%)
Net Income margin (8 5 pp) 21 7%21 0% (6 5 pp)
27.6%
3 3 pp
Avg. TRY / US$ rate 24.7%1,4910 (5.6%)
Net Income margin (8.5 pp) 21.7%21.0% (6.5 pp)3.3 pp
• 65% increase in interconnection cost YoY: negatively impacting EBITDA margin in Q3
• Lower subsidiary contribution, particularly from Astelit and Inteltek
1 TRY figures in this slide are based on IFRS TRY figures2 EBITDA is a non‐GAAP financial measure. See pages 13‐14 of our press release for the reconciliation of EBITDA to net cash from operating activities. 5
Turkish market overview ‐ Q3 2009
• Turkish market welcomed 3G• Increasing off‐net traffic as a result of flat rate offers
Turkcell remains as strong as ever with its winning
Market Dynamics
offers • Market profitability suffered from higher interconnection costs
• Flat revenue, declining mobile line
as ever with its winning value propositions
, gpenetration YoY
Signs of • Revisions to tariff plans
1st at Technology
gRational
Competitive Behavior
- Limitations to unlimited usage offers- Increased flat rate pricing for new subscribers- Increased scratch card and start‐up packagepricing 1st at Benefits
Regulatory
• With the Authority1 regarding maximum pricing
• With the Tax Athority regarding change in 1st at ServiceRegulatory
& Legalissues
taxation methodology regarding roaming charges
• With Turk Telekom on internationalinterconnection agreement
1st at Service Quality
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interconnection agreement
1 Turkey’s Information and Communication Technologies Authority
Turkcell Turkey: Continued strong postpaid additions
Subscriber (million)
‐1%36 336 3 36 0
Net Postpaid Additions (thousand)
1.7 million net postpaid additions (Ytd )
26%36.3 36.3 36.0
Subscriber Composition (%)MoU (minutes)
Highest ever MoU since 2001
36%
16%16%
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Turkcell Turkey: Value focus drives strong postpaid ARPU
‐4% • Decrease in blended ARPU YoY in
ARPU (Blended)
6% TRY terms due to lower MTRs
• Postpaid ARPU remained flat QoQdespite enlarged postpaid basep g p p
• Increased prepaid ARPU QoQ
Postpaid ARPU Prepaid ARPU
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: The door to a new mobile lifestyle with Turkcell
• 1.8 million 3G subscribers with Mobile Internet via 3G Modem
High initial demand*: Solid Contribution starting with 2010:
1.8 million 3G subscribers withenabled devices, 89% active data users
• Close to 175K USB modems, netbooks& notebooks sold within 3 months
(Netboook/Notebook)
• Targeting 1 million users by year end
• Mobile modem data ARPU expected to be• Close to 4 million 3G devices on ournetwork
• Mobile modem data ARPU expected to be around TRY 24
Mobile Internet via Handsets
Mobile Internet Volume
TB
• Monthly distinct users to increase to 6 million
• Over 1 million smartphone users• Total mobile internetTB p
• Data ARPU via handset expected to be around TRY 4
• Total mobile internet volume up by 7x in 9‐month period
9 * As of November 2nd,2009
Superonline : Increasing revenue & EBITDA contribution
• Solid revenue growth YoY: 54% in first 9 months
• Recorded positive EBITDA for the second consecutive quarterRecorded positive EBITDA for the second consecutive quarter
• Positive EBITDA expected for the full year of 2009
• Better contribution in 2010
• Great synergies with Turkcell overall and through 3G roll‐out
Corporate
Premium Residential
“Selective build out
Targeting
Wholesaleof fiber network continues”
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Life Ukraine: Revenue growth in local currencycontinuedcontinued
• Revenue growth in localcurrency: 18% YoY growth as of Q309
($ million)
Q309
• Results affected by 20% GDPdrop in H1 and 62% YoYdevaluationdevaluation
• Building on positive EBITDA
• Better EBITDA margin expectedfor H2 2009
• 3‐month active subscriber base up 24% YoY, now representing66% of total subscriber base
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Fintur: Maintained leader positions
Kcell (Kazakhstan)
Total subscribers reached 13 mn. Contribution to net income
($ million)
• Subscriber (mn) : 7.1• Market position : #1
Azercell (Azerbaijan)
• Subscriber (mn) : 3.7
• Revenue growth negatively affected
• Market position : #1
Geocell (Georgia)g g y
due to economic downturn
• Market leadership positionsmaintained
• Subscriber (mn) : 1.6• Market Position : #1
maintained
• Contribution to Turkcell’s net incomeincreased YoY
Moldcell (Moldova)
• Subscriber (mn) : 0.6• Market position : #2Market position : #2
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Outlook for 2010
Turkish Market Outlook Turkcell Group Focus TargetTurkish Market Outlook
• Better macroeconomic conditions: estimated
Turkcell Group Focus
• Keep value focus 10% Revenue
Target
conditions: estimated3.5% GDP growth
• Expected recovery in consumer confidence
• Focus on mobile broadband and mobile services
• Enhance winning value
RevenueGrowth in TRY terms
consumer confidence
• Further steps likely forrationality of the market
propositions
• Improve customer experience
Improving• Growing mobilebroadband market
• Increase subsidiaries’ profitability
ImprovingEBITDA
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NOTICE:
Please note that all financial data are consolidated whereas non-financialdata are unconsolidated unless otherwise specified.
EBITDA is a non-GAAP financial measure. Please refer to the pressrelease for the reconciliation of EBITDA to net cash from operatingactivities.
All non-financial data are unconsolidated, prepared in accordance withIFRS and expressed in US$.
The figures used in this presentation are rounded while percentagechanges are calculated based on the figures disclosed in the Q3 2009changes are calculated based on the figures disclosed in the Q3 2009result announcement press release.
Financial performance affected by weak macro andcompetition
2,0561 588
54% 47%47%
($ million)
competitionRevenue Gross ProfitMargin 1
YoY Change
• Revenue impacted by1,398 1,588
Q308 Q209 Q309‐23%
‐4% TRY
$
Revenue impacted by- Unlimited offers in Turkish mobile market
- Lower subsidiary contribution
($ million)EBITDA2
EBITDAMargin
TRY
• EBITDA Margin declined YoYmainly due to
TRY
$
- Higher interconnection costs- Increased network related expenses
- Higher advertising expenses
‐19%
‐35%
($ million)Net IncomeNet IncomeMargin
31% TRY
g g p
• Net Income declined mainly dueto lower EBITDA
‐45%
‐31% TRY
$
151 Depreciation and amortization is included2 EBITDA is a non‐GAAP financial measure. See pages 13‐14‐of our press release for the reconciliation of EBITDA to net cash from operating activities.
Higher cost base due to increasing interconnect costs
($ million)Direct costof revenues*% of Revenue
YoY Change
• Higher direct cost of revenues as t f
‐11%
12% TRY
$
a percentage of revenue- Higher interconnection costs- Higher network‐related expenses- Higher depreciation and
($ million)Adm.expenses% of Revenue
4%
Higher depreciation andamortization expenses
• G&A expenses remained broadly
‐23%
‐4% TRY
$
p yflat as a percentage of revenue
• S&M expenses slightly increased($ million)S&M
expenses% of Revenue
‐2% TRY
S&M expenses slightly increasedby 0.4 pp YoY mainly due to- Higher advertising expenses with3G launch
‐21% $ - Higher frequency usage fee
16* Depreciation and amortization is included
Improved balance sheet efficiency
Q308 Q309
Summary Balance Sheet ($ million) Consolidated Cash Flow ($ million)
Cash & Cash Equivalents 3,157 2,642
Total Assets 9,570 8,875
Total Debt 738 1,162
Net Debt (2,419) (1,480)
T t l E it 6 652 5 767Total Equity 6,652 5,767
Debt/Annualized EBITDA 26% 58%
• Improved balance sheet efficiency• Improved balance sheet efficiency- Debt/ annualized EBITDA of 58% upfrom 26% compared to Q308
C h iti i d t• Cash position remained strong- $1.5 billion net cash as of September30th, 2009
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Summary Income Statement as per CMB1 Financials (TRY million)
Q308 Q209 Q309 Q309‐ Q309‐Q Q QQ308 % change
Q209 % change
Revenue 2,458.4 2,204.4 2,368.0 (4%) 7%
Direct Cost of Revenues2 (1,114.4) (1,164.0) (1,243.2) 12% 7%
S&M (438.6) (436.8) (430.9) (2%) (1%)
G&A (105.1) (100.2) (100.8) (4%) 1%
EBITDA3 1 001 8 709 7 813 7 (19%) 15%EBITDA3 1,001.8 709.7 813.7 (19%) 15%
EBITDA Margin 40.8% 32.2% 34.4% (6.4 pp) 2.2 pp
Net Income 727 7 392 4 499 4 (31%) 27%
1 Capital Markets Board of Turkey
2 Depreciation and amortization is included
Net Income 727.7 392.4 499.4 (31%) 27%
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2 Depreciation and amortization is included
3 EBITDA is a non‐GAAP financial measure. See pages 13‐14 of our press release for the reconciliation of EBITDA to net cash from operating activities.
Consolidated Cash Flow ($ million)Consolidated Cash Flow ($ million)
Q308 Q209 Q309
EBITDA1 837.8 448.8 545.4LESS:LESS:Capex and License (175.7) (789.5) (326.1)Turkcell (80.8) (670.8) (196.4)Ukraine (47.7) (35.1) (31.9)
( )Investment & Marketable Securities (300.0) ‐ 30.6Net Interest Income/Expense 101.6 5.8 45.4Other (256.3) 166.7 (25.5)Net Change in Debt 73.2 1.8 409.0Net Change in Debt 73.2 1.8 409.0Dividend paid ‐ (713.3) ‐Cash Generated 280.6 (879.7) 678.8Cash Balance 3,156.8 1,963.5 2,642.3
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1 EBITDA is a non‐GAAP financial measure. See pages 13‐14 of our press release for the reconciliation of EBITDA to net cash from operating activities.
Consolidated Balance Sheet ($ million)Consolidated Balance Sheet ($ million)
Q308 Q209 Q309 Q309‐Q308 %
Q309‐Q209 %Q308 %
change Q209 % change
Cash & Bank 3,157 1,963 2,642 (16%) 35%CURRENT ASSETS 4,309 3,118 3,833 (11%) 23%Fixed Assets, Net 4,343 4,236 4,479 3% 6%Other Long Term Assets 918 522 563 (39%) 8%TOTAL NON‐CURRENT ASSETS 5,261 4,758 5,042 (4%) 6%TOTAL ASSETS 9,570 7,876 8,875 (7%) 13%S/T Debt 587 608 602 3% (1%)TOTAL CURRENT LIABILITIES 2,096 1,940 2,025 (3%) 4%L / T Debt 151 169 561 272% 232%TOTAL NON‐CURRENT LIABILITIES 823 664 1,082 31% 63%MINORITY INTEREST 169 31 33 (80%) 6%Share Capital 1,636 1,636 1,636 0% 0%TOTAL SHAREHOLDERS' EQUITY 6,652 5,273 5,767 (13%) 9%
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TOTAL EQUITY AND LIABILITIES 9,570 7,876 8,875 (7%) 13%
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