vodafone qatar q.s.c

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Q3 Results FY10 - 9 months ending 31 December 2009

Vodafone Qatar Q.S.C.

Q3 Results FY10

9 months ending 31 December 2009



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-to-time, 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.



Agenda

• Key Highlights• Customer Growth• Financial Highlights• Revenue• EBITDA• EBIT• Capitalised Fixed Asset Additions• Debt• Dividends• Shareholding Structure• Q4 FY10 Outlook• Condensed Statement of Income & Cash Flows• Condensed Statement of Financial Position• Long-Term Forecast



Key Highlights in FY10 (1st April 2009 to 31st March 2010)

IPO• Largest IPO in the world at time of closing

• Fully subscribed; US$950m raised

• 353,580 Customers at 31 December 2009

• Customers more than doubled in last quarter

• Total customers 84% ahead of planCustomer Numbers

Market Share• 22% Population share at 31 December

• Estimated 14% customer market share at 31 December

Revenue &ARPU

• Total Revenue 46% ahead of plan

• Total Mobile ARPU for quarter ending 31 December 09 of QR171

Launch• Freedom plans launched 7 July 2009• Prepay plans launched 9 September 2009• Implemented 2G & 3G network• 100% geographic coverage of 2G by 28 December 09

Distribution• Online shop – 3rd most successful online retailer in Qatar

• 9 VF retail stores & 2 mobile truck stores

• 500 outlets to join at & 1,500 where you can recharge



15,404150,799

353,580

700,000

1,618,000

43%

0.8%

7%

14%

32%

-

400,000

800,000

1,200,000

1,600,000

2,000,000

Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 …..+ 2yrs….. FY12 …..+ 6yrs….. FY18

Total

Custo

mers

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Marke

t Sha

re

Total Customers Customer Market Share

5

Customer GrowthQuarterly Growth in Customers & Market Share

IPO Prospectus Forecasts for FY12 & FY18



Financial Highlights

(1) EBIT includes licence cost of QR 7.7bn amortised over 20 years from 1 May 09

Financial PerformanceQ3 FY10 Q3 FY09 YTD FY10 YTD FY09Dec-09 Dec-08 Dec-09 Dec-08

QARm QARm QARm QARm

Total Revenue 177.6 n/a 216.8 n/aEBITDA (29.7) (7.1) (185.9) (44.5)EBIT(1) (149.2) (7.1) (496.6) (44.5)Operating Free Cash Flow (excl. license payment) (206.7) (54.1) (295.5) (75.7)

Capitalised Fixed Asset Additions 140.0 77.1 322.3 80.7

KPIsJun-09 Sep-09 Dec-09

Total Customers 15,404 150,799 353,580Total Quarterly ARPU N/A 173 171Population 1.609M 1.623M 1.631MAnnual Population growth 11% 8% 5%Mobile Penetration 117% 141% 152%Population Share 1% 9% 22%Customer Market Share 0.8% 7% 14%



1,400

3,000

3.10.03178

36-

500

1,000

1,500

2,000

2,500

3,000

3,500

Q4 Mar-09 Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 ..+ 2yrs.. FY12 ..+ 6yrs.. FY18

QA

R (m

illio

ns)

7

RevenueQuarterly Revenue with Forecasts for FY12 & FY18




-83 -30

462

1,410

-73-80

47%

33%

-200

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800


QA

R (m

illio

ns)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

EBITDA (QRm) EBITDA Margin

8

EBITDAQuarterly EBITDA with Forecasts for FY12 & FY18

• Q3 FY10 EBITDA in-line with management forecasts and IPO prospectus business plan.

• Expected to turn cumulatively EBITDA positive in mid 2011.• Expectation that current high EBITDA % in the Qatar market will decline as a

result of competition.




-199 -149 -69

903

-149-81

-700

-200

300

800

1,300

1,800


QA

R (m

illio

ns)

9

• Q3 FY10 EBIT in-line with management forecasts and IPO prospectus business plan.

EBITQuarterly EBIT




Capitalised Fixed Asset Additions

• Long-term capital expenditure expected to stabilise at 8% of revenue from FY13 onwards

308.6322.3

198.7

80.7

0

50

100

150

200

250

300

350

Q1-Q3 Dec08 Q4 Mar09 Q1-Q3 Dec09 Q4 Mar10

QA

R (m

illio

ns)

Management estimate



Net Debt Borrowings less Term Deposits

• Minimal requirement to raise debt from capital markets based on the current business model; assumes no regional expansion or fixed line direct ownership

433

371

(34)

269

162

(42)(100)

-

100

200

300

400

500

Q2 Sep-08 Q3 Dec-08 Q4 Mar-09 Q1 Jun-09 Q2 Sep-09 Q3 Dec-09

QAR (

millio

ns)



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.



Vodafone Qatar Shareholder StructureGlobal

Telecommunicationsleader

Private institution of publicUtility founded by

HH Sheikh Hamad Bin KhalifaAl-Thani

FoundingQatari Governmental

InstitutionalInvestors

Free float on Qatar Exchange

Vodafone and Qatar Foundation

LLC

Vodafone Qatar QSC

40%15% 45%

49%51%

• Qatar Foundation:5.0%

• Military Staff Loans Fund: 3.4%

• Military Pension Fund: 3.3%

• Health & Education Endowment:3.3%

• Number of shares: 338,160,000 shares• No foreign ownership restrictionsFree Float ownership split at 31

December:• Institutional Investors: 47%• Individual Investors: 53%

Founding Government Institutions Free Float (40%)

• Authorized Share Capital: 845,400,000 (Shares)

• Paid Up Capital: QAR 8,454,000,000



Outlook Q4 FY10

• Focus on customer acquisition• Launch BlackBerry® and data products• Continue expansion of distribution footprint• Development of innovative solutions for the market

• Vodafone Money Transfer• Complete network build

• Indoor coverage• Convert temporary sites to permanent



Condensed Statement of Income – 9 months ended 31 Dec 09

(1) Includes license amortization and depreciation of QR 294.7m for the nine month period to 31 December 2009 and nil for the period to 31 December 2008

Nine month period ended

December 31, 2009(Unaudited) (Unaudited)QAR ‘000 QAR ‘000

Revenue 216,816 -

Cost of sales (1) (461,394) (879)Gross loss (244,578) (879)

Selling and distribution expenses (81,737) -Administrative expenses (169,909) (44,521)Other income and expense (334) 865Operating loss (496,558) (44,535)

Interest income 20,866 4,614Financing costs (19,883) -Loss before taxation (495,575) (39,921)

Income tax expense - -

Loss for the period

Basic and diluted loss per share (QAR) (0.61) (0.08)

Period from June 23, 2008 to December 31,

2008

(495,575) (39,921)



Condensed Statement of Financial Position – as at 31 Dec 09

March 31, March 31, 2009 2009

(Unaudited) (Audited) (Unaudited) (Audited)QAR ‘000 QAR ‘000 QAR ‘000 QAR ‘000

Non-current assets Shareholders’ EquityProperty, plant and equipment 657,283 388,517 Share capital 8,454,000 5,072,400Intangible assets 7,458,800 7,716,000 Legal reserve 11,442 -Trade and other receivables 6,512 - Accumulated deficit (628,498) (132,923)Total non-current assets 8,122,595 8,104,517 Total shareholders’ equity 7,836,944 4,939,477

Current assets Non-current liabilitiesInventory 15,919 4,784 End of service benefits 1,905 392Trade and other receivables 134,818 31,053 Provisions 3,485 250Cash and cash equivalents 331,922 554 Long term borrowings 374,244 -Total current assets 482,659 36,391 Total non-current liabilities 379,634 642

Total assets 8,605,254 8,140,908 Current liabilitiesTrade and other payables 388,676 3,165,789Short term borrowings - 35,000Total current liabilities 388,676 3,200,789

Total equity and liabilities 8,605,254 8,140,908

December 31, 2009

December 31, 2009



Vodafone Qatar Long-Term Forecast

*At QR 10 per share

Year End Year End

31-Mar-12 31-Mar-18Population 2,195,000 3,002,000Market Share 32% 43%

Customer NumbersOn-account 221,000 509,000

Prepay 479,000 1,109,000

Total (closing customers) 700,000 1,618,000

ARPUOn-account 397 347

Prepay 87 76

Total 180 160

Revenue QR 1.4 billion QR 3 billion

EBITDA % 33% 47%

capex to revenue % 14% 7%

EPS 1.4

ROE* 14%



Contact Details

Rachael Mayo-SmithInvestor Relations ManagerTel: +974 777 5642Email: [email protected]

Address: Vodafone QatarPO BOX 27727DohaQatar

Website: www.vodafone.com.qa

John TomblesonChief Financial Officer+974 777 [email protected]

vodafone qatar q.s.c

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