Your SlideShare is downloading. ×
0
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Tcell presentation post_q1_may_v5
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Tcell presentation post_q1_may_v5

1,130

Published on

Published in: Travel, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,130
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
56
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. MAY 2012
  • 2. NOTICE This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially due to factors discussed in this presentation, in our press release, in the Risk Factors section of Turkcell’s most recent Form 20-F or in other reports and filings with the US Securities and Exchange Commission. We undertake no duty to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified.
  • 3. TURKCELL GROUP REGIONAL LEADER 9 countries 65.3 million subscribers Leadership in the region Turkcell Group: Subscribers in Q112 (million) Turkcell Group: Revenue breakdown (%) Turkcell Europe 0.2 13% 17% 0.5 million net 17% Northern Cyprus 0.4 additions in Q112 20% Moldova 1.1 22% 22% Belarus 1.7 Georgia 2.1 67% 62% 62% Azerbaijan 4.2 Ukraine 9.9 Q111 Q411 Q112 Kazakhstan 11.2 Subsidiaries* Turkcell Turkey 34.5 Turkcell Turkey Mobile internet& services Turkcell Turkey voice** (*): Revenues from Fintur (operations in Kazakhstan, Azerbaijan, Georgia, Moldova) is not included under subsidiaries. The contribution of Fintur is recorded under share of profit of associates below EBITDA line.3 (**) Voice revenues include outgoing, incoming, roaming and other (comprising almost 2% of Turkcell Turkey) revenues
  • 4. TURKCELL GROUP FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL RESULTS TRY million FY10 FY11 YoY (%) Q1 2011 Q4 2011 Q1 2012 YoY (%) QoQ (%) Revenue 9,004 9,370 4.1% 2,118 2,446 2,382 12.4% (2.6%) EBITDA 2,948 2,913 (1.2%) 626 695 703 12.3% 1.2% EBITDA Margin 32.7% 31.1% (1.6pp) 29.5% 28.4% 29.5% - 1.1pp Net Income 1,764 1,178 (33.2%) 330 332 515 56.0% 55.2% Avg. US$/TRY 1.51 1.67 11.0% 1.57 1.82 1.79 13.6% (1.9%) rate Q1 2012 HIGHLIGHTS Double digit revenue growth YoY Double digit EBITDA growth YoY Strong growth in net income led by 8% growth in Turkcell • Higher revenue • Higher EBITDA Turkey and 43% growth in • Increased contribution of • Higher net finance income subsidiaries subsidiaries (*): TRY figures in this slide are based on IFRS TRY figures.4 EBITDA is a non-GAAP financial measure.
  • 5. TURKCELL GROUP STRONG START TO THE YEAR (TRY million) Q1 2011 Q1 2012 YoY Growth Turkcell Turkey 1,416 1,455 3% Voice1 Turkcell Turkey Mobile 424 529 25% Broadband & Services Subsidiaries 279 398 43% Turkcell Superonline grew by 59%5 1 Voice revenues include outgoing, incoming, roaming and other (comprising almost 2% of Turkcell Turkey) revenues
  • 6. LEADER IN TURKEY Subscriber Revenue EBITDA EBIT 11% MARKET 20% 20% SHARES1 17% 2011 53% 123% 28% 27% 53% 72% Turkcell Operator A Operator B FCF -14% MARGIN % -8% 20112 20% EBITDA 12% MARGIN % 14% 20112 31% Source: Company announcements and ICTA reports * The information on Operator A’s EBITDA and FCF margins for FY11 are not available. Shown figures for Operator A is for the 9 months of 2011 and calculated based on company and ICTA announcements and market6 estimates
  • 7. TURKCELL TURKEY MARKET AT A GLANCE MOBILE MARKET TURKCELL’S FOCUS • Aggressive offers & • Retaining the customer base Churn rate communication • Simplified tariff structure • Decrease in average price per • Responded to aggressive 9.3% minute competition via affordable tariff 7.8% • Higher incentives plans • Continued focus on postpaid • Continued contracting efforts Q1 2011 Q1 2012 • Increased smartphone sales • Fueling the mobile broadband Smartphone sales in total handset sales1 usage • 35%1 YoY growth in • Increased smartphone 61% smartphone sales penetration 38% • Promoted bundled offers • Created the need via innovation Turkcell Market 1 Source: Gfk7
  • 8. TURKCELL TURKEY MAINTAINED SUBSCRIBER BASE SUBSCRIBER (million) SUMMARY OPERATIONAL RESULTS Q111 Q411 Q112 YoY (%) QoQ (%) 34.5 34.5 33.1 ARPU (TRY) -blended 18.4 19.7 19.2 4.3% (2.5%) ARPU (TRY) -postpaid 37.9 37.5 36.5 (3.7%) (2.7%) ARPU (TRY) -prepaid 9.8 11.0 10.1 3.1% (8.2%) 10.4 11.7 12.0 MoU 192.5 220.4 221.5 15.1% 0.5% SHARE OF POSTPAID IN REVENUES & SUBSCRIBERS Postpaid as a % of revenues Postpaid as a % of subscribers 65% 22.7 22.9 22.5 35% 63% 31% Q111 Q112 Q111 Q112 Q111 Q411 Q112 Prepaid Postpaid8
  • 9. TURKCELL TURKEY LEADING THE SMARTPHONE MARKET TURKCELL T SERIES SMARTPHONE VS. INCREASING SMARTPHONE NUMBERS «Widening access to mobile NON-SMARTPHONE (MILLION) internet at affordable prices» Internet User Data ARPU) 13% 12% T11 TRY389 TRY 14.90X24 months 5X «NFC enabled» 7% 4.3 3.8 T20 2.4 TRY455 TRY 19.90X24 months ↑82% YoY «NFC enabled» Q111 Q411 Q112 «T20: The best selling Android Non- Smart- # of smartphones (million) phone in the market in FY11*» smartphone phone Smartphone penetration in our network *Source: Gfk9
  • 10. TURKCELL TURKEY SOLID INCREASE IN MOBILE BROADBAND GROWING MOBILE BROADBAND INCREASING MOBILE BROADBAND & REVENUES (TRY MILLION) SERVICES* REVENUES (TRY MILLION) 1,944 1,619 1,281 724 454 261 FY09 FY10 FY11 FY09 FY10 FY11 BREAKDOWN OF MOBILE BROADBAND & SERVICES REVENUES (TRY MILLION) 529 ↑25% YoY 424 114 134 127 ↑16% YoY 109 120 208 190 173 163 175 ↑ 6% YoY 151 166 207 200 229 ↑52% YoY Q111 Q211 Q311 Q411 Q112 Mobile Broadband SMS/MMS Mobile Services *Includes revenues from SMS/MMS, mobile internet and other mobile services10
  • 11. TURKCELL SUPERONLINE STRONG GROWTH IN FIBER TURKCELL SUPERONLINE FINANCIAL RESULTS TRY million FY 2010 FY 2011 YoY (%) Q1 2011 Q4 2011 Q1 2012 YoY (%) QoQ (%) Revenue 335.1 460.5 %37.4 91.1 140.7 145.0 59.2% 3.1% EBITDA 32.9 81.6 %148.0 14.5 31.1 29.1 100.7% (6.4%) EBITDA Margin 9.8% 17.7% 7.9pp 16.0% 22.1% 20.1% 4.1pp (2.0pp) Capex 480.3 392.7 (18.2%) 43.0 172.4 63.7 48.1% (63.1%) REVENUE BREAKDOWN SUPERONLINE’S SHARE IN TRANSMISSION COSTS 29% ↑92% YoY 74% 67% 63% 58% 51% Residential 24% 30% ↑105% YoY 44% 46% 37% 33% 23% Corporate 41% ↑24% YoY Wholesale 52% Mar.10 Jun.10 Sep.10 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Share of Turkcell Superonline in Turkcells Transmission Costs Q111 Q112 Turkcell Consolidated Transmission Costs11
  • 12. UKRAINE SUSTAINED PROFITABILTY LEVELS ASTELIT FINANCIAL RESULTS $ million FY 2010 FY 2011 YoY (%) Q1 2011 Q4 2011 Q1 2012 YoY (%) QoQ (%) Revenue 339.3 368.8 %8.7 78.2 98.1 91.4 16.9% (6.8%) EBITDA 64.5 94.2 %46.0 18.8 24.9 24.9 32.4% - EBITDA Margin 19.0% 25.5% 6.5pp 24.0% 25.4% 27.2% 3.2pp 1.8pp Capex 66.5 65.1 2.2% 7.4 26.6 5.3 (28.4%) (80.1%) EBITDA & FCF MARGIN DEVELOPMENT FCF margin EBITDA margin 27.2% Turnaround strategy resulted in strong revenue and 24.0% EBITDA growth YoY 21.4% • Regional focus 14.6% • 7.1 million active subscribers up by 1 million YoY Sustained improvement in EBITDA margins • 4th consecutive quarter with above 25% EBITDA margin levels Q111 Q11212
  • 13. TURKCELL GROUP 2012 OUTLOOK MAJOR FOCUS 2012 AREAS GUIDANCE (Consolidated, TRY million) 1 Core mobile business Revenue ~ 9,900 - 10,100 Mobile broadband 2 Mobile services EBITDA ~ 3,000 - 3,200 3 Fiber broadband CAPEX*-to- Sales ~ 17% Belarus 4 Ukraine Kazakhistan Moldova Georgia Contribution of subsidiaries Azerbaijan Turkey TRNC *Operational Capex13
  • 14. NEW WORLD MORE DIFFERENTIATION IN THE FUTURE Dynamics have been changing : MOBILITY is the key PRESENT FUTURE DIFFERENTIATION THRU PRICE NETWORK QUALITY & SPEED NETWORK QUALITY CUSTOMER EXPERIENCE INNOVATION VOICE MORE DATA CLOUD MESSAGING DATA 10 billion devices to be $170 billion revenues from connected to the internet in cloud services in 2015 2016 MOBILE SERVICES M2M 200 million NFC-enabled handsets by end 2012 2.3 billion M2M connections Mobile health industry to reach $23 in 2020 billion in 2017
  • 15. TURKCELL TURKEY HIGH QUALITY NETWORK # OF BASE STATIONS 29,500 23,100 21,700 43.2 Mbps speed thru dual carrier: 1st in Turkey, 13th globally 2012 target: Doubling data speed: 84 Mbps The only Turkish operator that can reach 168 TURKCELL Competitor ACompetitor B Mbps thru A-type license TURKEY 2G Base Stations 19,000 14,900 15,900 3G Base Stations 10,500 8,200 5,800 3G Pop.Coverage 88% 81% 79% Source: For coverage and number of base station figures our latest estimations, market estimates, operators’ and ICTA announcements15 and some media information have been utilised. Please also note that 3G exchanges: Radio Network Controllers
  • 16. TURKCELL TURKEY TURKEY’S CHAMPION IN 3G DATA SPEED According to the independent test results of PCnet Magazine, Turkcell is the fastest in terms of 3G data speed… RESULTS OF 3G DATA SPEED TEST (Mbps) 11.91 Test was run on a total of 59 points in 7 regions and 9 4.90 4.55 provinces in Turkey 2.37 2,136 measurements were 1.75 1.40 taken Turkcell Avea Vodafone Dowload Upload16
  • 17. TURKCELL LEADER IN THE TURKISH TELECOM MARKETPERCEPTION STUDIES (MARCH 2012) Most Best Qualified Best Network Innovative Customer Leader (Coverage & Operator Services Quality) 8 6 15 13 17 17 Competitor B 24 29 Competitor A 75 77 64 56 Turkcell17 Source: Research Method
  • 18. TURKCELL SUPERONLINE STRATEGIC INVESTMENTS IN FIBER DOWNLOAD TIME FOR 1GB VIDEO FILE FIBER BROADBAND = = SPEED Turkey Avg 51 min 2.7 Mbps internet speed The first and only operator in Turkey providing 1000 mbps speed for residential segment 7 min 20 Mbps Fiber Network reached 30,000km in 2011 3 min 50 Mbps 1.5 min 100 Mbps 8 sec 1,000 Mbps Incity coverage18
  • 19. TURKCELL LEADING THE MOBILE TECHNOLOGIES Dynamics have been changing and Turkcell is leading the new world of mobile technologies 29 Turkcell branded applications, 40 million downloads in 2011 from Turkcell application store Mobile Financial Services: Mobile money Tailored and on-demand cloud services for transfer, mobile wallet… corporate customers… Mobile Health: Turkey’s first remote Personal TV experience that spans multiple monitoring service that uses mobile screens and locations… technology to link patients with their doctors19
  • 20. TURKCELL M2M SOLUTIONS M2M potential: Increasing operational efficiency while decreasing 150 mn machines costs through innovative solutions in Turkey Smart Industry Solutions Smart Vehicles/Telematics Monitoring and control of machines and Monitoring of various critical integrated sensors such as moisture, values in vehicles such as temperature, light etc speed, route-control and driving routines from a central server Smart Buildings Smart Metering Monitoring and control of Online monitoring of water, various appliances such as gas and electricity meters security monitors and AC’s from a distance.20
  • 21. M-FINANCE / M-COMMERCE PLATFORMS ARE GROWING M-Finance/ M-Commerce Platforms are Growing in the world : $1.1 trillion in 2014E Turkcell: Achieving Firsts Together with Business Partners Mobile Payment: Shopping via SMS with all partner merchants • User sends an SMS to the defined short code with a key word. • User confirms the payment and transaction is completed with an approval SMS. Mobile Wallet: NFC Based, multi functional Mobile Money Transfer: 7/24 safe banking mobile wallet service transactions, compatible with every handset • User downloads the plastic card • User can transfer money by just knowing the recipients information on the SIM mobile number, no need for a bank account • User uses mobile phone for contactless • The recipient can withdraw the cash from ATMs with the payment password sent by an SMS21
  • 22. THANK YOUFor further information please e-mailinvestor.relations@turkcell.com.tror call Turkcell Investor Relations at(+90 212 313 1888)www.turkcell.com.tr
  • 23. TURKEY
  • 24. TURKEY POSTED SEQUENTIAL GROWTH IN LAST 10 QUARTERS GDP GROWTH (%) A Hub for the region 8.9% 8.5% Booming economy with considerable size 5.0% With 8.5% growth, Turkey 4.0% follows China to be the second highest growing economy 0.7% -4.7% 2008 2009 2010 2011 2012E 2013E Source: Government estimates (April 17, 2012)24
  • 25. TURKEY BOOMING ECONOMY WITH CONSIDERABLE SIZE AMONG THE BIGGEST EUROPEAN ECONOMIES 2.9 2.2 2.1 Considerable economy size 1.8 1.4 • 6th largest economy in 1.0 0.7 0.7 Europe 0.4 0.4 DE UK FR IT ES TR PL NL BE SE GDP based on purchasing power parity, trillion US$, Source: IMF 2010 data CONSUMER CONFIDENCE INDEX % Consumer Confidence improved in 2011 96.4 93.4 93.7 92.0 93.3 90.4 91.0 • CCI of Turkey has been 88.0 85.3 84.7 above the EU average 81.9 78.8 since September 2010 74.8 Q1 09Q2 09Q3 09Q4 09Q1 10Q2 10Q3 10Q4 10Q1 11Q2 11Q3 11 Q411 Q112 Source: Turkstat25
  • 26. TURKEY VAST OPPORTUNITIES TO GROW Europe 130% Mobile penetration Turkey 89% Europe $32 Voice ARPU Turkcell $12 Postpaid % in total Europe 46% subscribers Turkcell 34% Mobile broadband as % Europe 30% of revenues Turkcell 9% Fixed and Mobile Broadband Europe 26% Fixed broadband penetration Turkey 10% Source: Data on the Turkish market is based on ICTA report and Europe average is based on ML Global Wireless.26 Data as of December 31, 2011
  • 27. TURKEY TELECOMMUNICATIONS MARKET 88% 92% 87% 87% 88% 89% 85% 84% 75% 7.1 MOBILE 19.4 21.4 24.8 28.6 31.4 52.7 62.0 65.8 55.7 SECTOR 42.4 40.3 39.0 36.2 33.9 2006 2007 2008 2009 2010 Q111 Q211 Q311 Q411 3G Subscribers (mn) 2G Subscribers (mn) Penetration (%) 25.8% 25.8% 24.5% 22.8% 22.3% 21.6% 21.4% 21.0% 20.6% 20.3% FIXED 18.8 18.2 17.5 16.5 16.2 SECTOR 15.8 15.7 15.5 15.2 15.0 2006 2007 2008 2009 2010 Q111 Q211 Q311 Q411 Q112 Subscribers (mn) Penetration (%) 9.0% 9.8% 9.8% 9.9% 10.2% 10.4% 7.0% 8.0% FIXED 4.0% BROADBAND 6 6.4 7.2 7 7.3 7.3 7.4 2.9 4.6 SECTOR 2006 2007 2008 2009 2010 Q111 Q211 Q311 Q411 Fiber Subscribers (mn) ADSL & Other Subscribers (mn) Penetration (%) Source: ICTA Q4 2011 market report.27
  • 28. TURKEY TRAFFIC MIGRATES FROM FIXED TO MOBILE REVENUE COMPOSITION (%) TRAFFIC COMPOSITION (%) 86% 86% 87% 88% 88% 82% 67% 69% 69% 72% 65% 67% 61% 62% 63% 63% 56% 56% 44% 44% 39% 38% 37% 37% 35% 33% 33% 31% 31% 28% 18% 14% 14% 13% 12% 12% FY06 FY07 FY08 FY09 FY10 Q111 Q211 Q311 Q411 FY06 FY07 FY08 FY09 FY10 Q111 Q211 Q311 Q411 Fixed Mobile Fixed Mobile Source: ICTA Q4 201128
  • 29. TURKEY MAJOR REGULATORY DECISIONS Price cap up by 4% MTR cut by 33% MTR cut by 28% MTR cut by 52% Int’l SMS rate up by 4% MTR cut by 3% MNP launch Price cap cut by 20% Price cap cut by 38% SMS rate cut by 48% Int’l MTR deregulated Eur 9.7 › Asymmetry in cents MTRs with Avea 8.3 (18%) and Vodafone (3%) 6.7 6.2 5.6 4.8 4.2 Turkcell 3.0 MTR is 4 times 1.4 1.1below EU 1.4 1.2 1.2 1.0 0.7 1.09 0.79 0.52 0.52 0.52 2007 2008 2009 2010 2011 MTR -Turkcell EU-MTR FTR-TT EU-FTR EU MTR data is from EU progress report except 2010. 2010 EU MTR data is from ERG snap shot as of Jan2011 FTR data is as of October 2009, no data available for 2010 FTRs29 The figures converted by 2.5 eur/ tl rate
  • 30. MOBILE CALL TERMINATION RATES 9 EU average 8 Turkcell Call 4.8 € ¢ Termination Rate* 7 (excluding treasury share) 6 1.1€-¢ 5 4 3 2 1.1 1 0 Turkcell Belgium Sweden Greece Italy Estonia Cyprus Germany Spain Croatia Lithuania UK Switzerland France Portugal Czech Rep Norway Austria Hungary Poland Finland Slovenia Denmark Bulgaria Netherlands Luxembourg Romania Ireland • Turkcell is being paid the lowest Interconnection Fee in Europe Source BEREC MTR Benchmark snapshot (as of Jan 2011)30 Turkcell MTR is calculated based on EUR/ TRY rate of 2.4 as of July 2011
  • 31. HIGH TAXES ON MOBILE SECTOR TAX MOBILE FIXED TURKEY HAS THE WORLD’S HIGHEST MOBILE SERVICE TAXES Special Communication 25% 15% 60% Tax on voice Special Communication 50% 5% 5% Tax on broadband 40% VAT 18% 18% 30% Treasury Share 15% 1% 20% Contribution Share to 0.35% 0.35% 10% Telecom Authority Communication Tax - 1% 0% Argentina Romania Ukraine India Nigeria Turkey Poland South Africa Brazil Iran China Russia Algeria Mexico Uganda Kenya Chile Egypt Kazakhstan Thailand Pakistan Azerbaijan New subscription Special Communication Tax TRY 37.00 - (at first enrollment) Wireless license fees High taxes on mobile sector is an obstacle TRY 14.56 - (per acquisition)  Improved macroeconomic conditions in Turkey may Wireless usage fees lead a cut in tax rates TRY 14.56 - (per acquisition)  A potential reduction on tax rates will expand Special Communication mobile sector revenues 5% 5% Tax on broadband31
  • 32. SUBSIDIARIES
  • 33. SUBSIDIARIES SNAPSHOT ASTELITFACTS Subscriber* Market Subscribers* Q411Operating since February 2005 with its brand life :) Shares Q411 million97.8% population coverage with more than 9,482 14.1%base stations KYIVSTAR 24.8Turnaround strategy resulted in 19.8pp increase in MTS 17.7EBITDA margin between 2009-2011 50.1% LIFE :) 7.04th consecutive quarter with above 25% EBITDA 35.8%margin levels Revenue Market Shares Revenues FY11 Mobile Penetration Rate: 125% FY11 US$ million 11.7% KYIVSTAR 1,644 MTS 1,142 Ownership Ownership Ownership 52.1% 55% Turkcell 100% Vimpelcom 51% JSFC Sistema LIFE :) 369 45% System 49% Free Float 36.2% Capital * 3 month active subscribers33
  • 34. SUBSIDIARIES SNAPSHOT BESTFACTS Subscriber* Market Subscribers* Q411Operating under the control of Turkcell since August 2008 Shares Q411 millionwith its brand life :) 13.0%Best operated 2G services in all, and 3G services in 81% ofthe cities with a population of more than 10,000 MTS 4.9 44.9% VELCOM 4.62G coverage of approximately 99.5% of the entirepopulation of Belarus, or 91.5% of the geographical LIFE :) 1.4coverage 42.1%MNP launched in February 1, 2012 Revenue Market Shares Revenues FY11 Mobile Penetration Rate: 116% FY11 US$ million 6.5% MTS 339.7 46.3% VELCOM 345.7 Ownership Ownership Ownership 80% Turkcell 51% Belarusian 100% Telekom LIFE :) 48.0 20% Belarusian State Austria Group State 49% MTS 47.1% * 3 month active subscribers34
  • 35. FINANCIALOVERVIEW
  • 36. TURKCELL GROUP REVENUE (TRY million) Δ in Turkcell Turkey: ∑ TRY 144mn Q112 vs. Q111 YoY ↑12.4% 120 2,382 105 2,118 39 Revenue Δ in Voice* Δ in Mobile Δ in Subsidiaries Revenue Q111 broadband & services Q112 Δ in Turkcell Turkey: ∑ TRY (58mn) Q112 vs. Q411 QoQ ↓ (2.6%) 2,446 (57) (1) (6) 2,382 Revenue Δ in Voice* Δ in Mobile Δ in Subsidiaries Revenue Q411 broadband & services Q11236 * Voice revenues of Turkcell Turkey includes other revenues which accounts for 2% of total Turkcell Turkey revenues
  • 37. TURKCELL GROUP EBITDA MARGIN (%) Q112 vs. Q111 YoY (-) 29.5% (2.7pp) 2.5pp 29.5% 0.2pp EBITDA Δ in Direct cost Δ in G&A Δ in S&M EBITDA Q111 of revenues* exp. exp. Q112 Q112 vs. Q111 QoQ ↑ 1.1pp 28.4% 1.6pp 29.5% 0.3pp (0.8pp) EBITDA Δ in Direct cost Δ in G&A Δ in S&M EBITDA Q411 of revenues* exp. exp. Q112 * Excluding depreciation and amortization37
  • 38. TURKCELL GROUP NET INCOME (TRY million) Q112 vs. Q111 YoY ↑ 56.0% Δ in EBITDA 77 Δ in Depreciation (55) 60 40 11 (6) 515 65 (7) 330 22 Net income Δ in EBIT Δ in Interest Δ in Equity Δ in FX Δ in Δ in Other Δ in Net income Q111 Inc./Exp. in Net Gain/Loss Monetary Inc./Exp. Taxation Q112 Inc./Loss Gain/Loss Δ in EBITDA 8 Δ in Depreciation 263 Q112 vs. Q411 QoQ ↑ 55.2% 129 (233) 271 5 (5) 3 13 515 332 Net income Δ in EBIT Δ in Interest Δ in Equity Δ in FX Δ in Δ in Other Δ in Net income Q411 Inc./Exp. in Net Gain/Loss Monetary Inc./Exp. Taxation Q112 Inc./Loss Gain/Loss38
  • 39. TURKCELL GROUP BALANCE SHEET HIGHLIGHTS & CAPEX Consolidated (TRY million) Q1 2011 Q4 2011 Q1 2012 Total Cash 4,916 6,3341 6,0582 Total Assets 15,151 17,187 17,157 Total Debt 2,791 3,529 3,359 Net Cash 2,125 2,805 2,699 Total Equity 9,964 10,826 11,325 FY 2011 CAPEX SPLIT (TRY MILLION) CASH & CASH EQUIVALENTS TOTAL DEBT SPLIT SPLIT (TRY MILLION) (TRY MILLION) Total Capex: TRY 1,636 million Turkcell FC Turkcell Superonline TRY 3,359 393 4,143 100% Turkey 68% 894 FC International 1,915 Cost of FC Return on TRY 32% 227 debt:3.5% cash: 11.6% Other Return on FC 123 cash: 5.1% Return on Cash and Cost of FC debt figures as of YTD March2012 1 TRY 1,596 million time deposits with a maturity longer than 3 months was recorded as Financial Investment and shown as a part of total cash in the summary table39 2 TRY 10 million time deposits with a maturity longer than 3 months was recorded as Financial Investment
  • 40. TURKCELL GROUP AVERAGE CAPEX/SALES RATIO 35% Turkcell Average: 14.1% including 3G license fee 30% Emerging Europe average: 18.2% (TRY0.8bn) Between 2001 and 2011 25% 20% 15% 10% 5% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turkcell Emerging Europe Source: Global wireless matrix and company announcements40
  • 41. TURKCELL GROUP DIVIDEND DISTRIBUTION CASH DIVIDENDS CASH DIVIDENDS PER SHARE 1,329 0.604 1,098 0.499 859 850 0.391 648 713 567 574 0.275 0.258 0.295 509 502 0.236 342 411 0.170 250 182 11878 2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010 TRY (millions) USD (millions) DIVIDEND YIELD DIVIDEND PAYOUT RATIO 75% 5.21% 65% 4.08% 50% 50% 50% 50% 50% 50% 2.87% 3.08% 2.47% 2.69% 1.77% 2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009 2010 Please note that the Board of Directors’ recommendation to distribute a dividend of 75% from the fiscal year 201041 profits was not approved in the EGM dated October 12, 2011.
  • 42. APPENDIX
  • 43. TELECOMMUNICATIONS SECTOR GROWTH POTENTIAL ARPU VS. GDP PER CAPITA ($) SHARE OF POSTPAID IN TOTAL 60 50% Switzerland 50 France 40% 40 Netherlands Sweden 30% Belgium 30 Israel UK ARPU Czech Austria Denmark 20% 20 Hungary Germany Turkey 10% 10 China 0 India 0% Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 0 20,000 40,000 60,000 80,000 GDP per Capita Europe Turkcell ARPU COMPARISON ($) Upside potential for key performance 28.4 indicators • ARPU: Europe $28.4 vs Turkcell $10.8 11.9 10.8 • Post-Paid share: Europe 46% vs Turkcell 34% Europe EEMEA Turkey43
  • 44. TURKCELL TURKEY HIGHER EFFICIENCY COMPARED TO PEERS EBITDA MARGIN 2011 (%) 46% Impact of 15% 43% treasury share* 39% in Turkey 31% 13% Emerging Europe Turkey excl. Turkcell Turkey Turkcell Turkey Markets Turkcell reported excl. treasury share* Source: BofAML Global Wireless Matrix Q411; Data as of 2011 *Under our license agreement, we pay the Turkish Treasury a monthly treasury share (including universal service fund) equal to 15% of our gross revenue44
  • 45. TURKEY IN THE NEW WORLD

×