#1A Vodafone Qatar Q.S.C. Q1 Financial Results Presentation Quarter ended 30 June 2011 السلام#22 Disclaimer Q1 FY12 Results Presentation | 30 June 2011 • • 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. 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, Vodafone Money Transfer and the Vodafone logo are trademarks of the Vodafone Group.#33 Our Purpose Based Organisation is: Where To be the most admired brand in Qatar Q1 FY12 Results Presentation | 30 June 2011 Why To make a world of difference for all people in Qatar What - Aggressively compete to grow in all segments - Really deliver an awesome customer experience - Actively develop all talent and be the role model for Qatarisation - Bravely take a few risks on cool new stuff - Partner with the Government to provide super fast broadband for all How Speed - Simplicity - Trust - Vitality -Worldliness#44 Priorities for the Year Qatarisation • Mobile network growth • Differentiation of products and services • Implementation of consumer postpay • Launch of Fixed Line services Expansion of Vodafone Money Transfer • Launch of Number Portability (mobile & fixed) Q1 FY12 Results Presentation | 30 June 2011#55 Key Highlights Customer Numbers Q1 FY12 Results Presentation | 30 June 2011 761,000 Mobile Customers at 30 June 2011 Mobile Customers grew 43% over the year Market Share Revenue, ARPU & Profit Network Fixed Line Operational Highlights 26.8% Mobile Customer Market Share at 30 June 23.4% Mobile Revenue Market Share for the June quarter Total Revenue increased 65% year-on-year • ARPU increased 11% year-on-year to QAR 116 EBITDA was QR 31 million for the June quarter • 25 new sites on air & 17 under construction. Target 80 by October 2011, and a further 40 by March 2012. Site-sharing with Qtel (6 sites secured, 8 in progress) Converged fixed & mobile network installed in second data centre Vodafone Qatar will be a customer of Q.NBN to deliver fibre to the home as the last mile. Middle East Call Centre Awards – "Best Call Center of the Year", "Best Voice of the Customer Programme" and "Best Retention & Motivation Programme". • IT upgrade in June to enable flexibility and wider breadth of products and services offered#66 Mobile Customer Growth Year-on-Year Growth in Mobile Customers & Mobile Customer Market Share Quarterly Customer Numbers 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Q1 FY12 Results Presentation | 30 June 2011 * 26.8% 761,000 28% 23% 19.9% 18% 534,000 0.8% 15,000 Q1 Jun-09 Q1 Jun-10 I Total Mobile Customers 43% growth in Customer Numbers year-on-year 13% 8% 3% -2% Q1 Jun-11 Mobile Customer Market Share Quarterly Customer Market Share * estimated; Qtel's H1 results released on 14 August 2011#77 Total Revenue (Fixed Line & Mobile) Year-on-Year Total Revenue Comparison Q1 FY12 Results Presentation | 30 June 2011 QAR (millions) 350 300 250 15.9% 200 150 100 5ō 50 3 176 Q1 Jun-09 Q1 Jun-10 65% growth in Total Revenue year-on-year * 23.4% 25% 291 20% 15% 10% 5% 0% Q1 Jun-11 Mobile Revenue Market Share estimated; Qtel's H1 results released on 14 August 2011#88 Total Mobile ARPU Year-on-Year Total Mobile ARPU Quarterly ARPU (QAR) 120 115 110 116 104 105 100 95 Jun-10 Jun-11 11% growth in ARPU year-on-year Q1 FY12 Results Presentation | 30 June 2011#99 EBITDA Year-on-Year EBITDA Comparison QAR (millions) 40 40 20 -20 -40 -9 Q1 FY12 Results Presentation | 30 June 2011 31 -60 -80 -73 Q1 Jun-09 Q1 Jun-10 Q1 Jun-11#1010 Distributable Profits Year-on-Year Distributable Profits Comparison QAR (millions) 10 10 -10 -30 -50 -70 -90 -47 -21 -91 -110 Q1 Jun-09 Q1 Jun-10 Q1 Jun-11 55% improvement in Quarterly Distributable Profits year-on-year This is the measure on which dividends will be based Q1 FY12 Results Presentation | 30 June 2011#1111 Net Loss Year-on-Year Net Loss Comparison Q1 FY12 Results Presentation | 30 June 2011 -20 -40 -60 -80 -100 -120 -140 -160 -20 -40 -60 -80 -100 -120 -122 -140 -148 -152 -180 -160 Q1 Jun-09 Q1 Jun-10 Q1 Jun-11 17% improvement in Quarterly Net Loss year-on-year Quarterly Amortisation of the QAR 7.7bn license fee is QAR 101 million. Amortisation#1212 Q1 FY12 Results Presentation | 30 June 2011 Capitalised Fixed Asset Additions (Fixed Line & Mobile) Full Year Capex spend Capital Expenditure from FY09-FY12 QR 1.52bn Mobile capex QAR (millions) QR 0.26bn Fixed line capex Year 1 Year 2 Year 3 600 524 QR 7.72bn 475 500 QR 1.78bn Total capex over 4 years Cost of mobile licence QR 9.50bn Total assets purchased over 4 years 400 300 200 100 389 392 138 125 0 FY 09 FY 10 FY 11 FY 12 Management forecast for FY12 Fixed Line Long-term total capital expenditure expected to stabilise at 10% of revenue from FY15 onwards.#1313 Net Debt Borrowings less Term Deposits QAR (millions) 400 269 300 200 100 -100 -200 -300 -400 -360 -500 -600 -700 -633 Q1 Jun-09 Q1 Jun-10 Q1 Jun-11 We have a borrowing facility of US$ 330m (QAR 1.2 billion) comprising: • US$110m (QAR 400m) at 1 mth US Libor + 3.55% • US$120m (QAR 437m) at 1mth US Libor + 1.55%. US$100m (QAR 364m) at 1mth US Libor + 1.15% This is the funding expected to deliver our current mobile & fixed 5 year plan Q1 FY12 Results Presentation | 30 June 2011#1414 Q1 FY12 Results Presentation | 30 June 2011 Dividends IPO Prospectus "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" Articles of Association "Article (69) The distributable profits, calculated as net profits for the financial year plus amortisation of the License for the financial year, shall be distributed in accordance with Article (70)..." We are on track to pay dividends for the year ended 31 March 2013#1515 Q1 FY12 Results Presentation | 30 June 2011 Outlook for September Quarter • . Delivering greater breadth of products & services to the market Continue to focus on our customers to ensure they have the best experience in the market Further expansion to the mobile network • Increasing the number of permanent cell sites Replace temporary cell sites with permanent constructions • Finish the network optimisation Increase Vodafone Money Transfer footprint Launch of fixed line calling in specific estates#1616 Future Guidance Q1 FY12 Results Presentation | 30 June 2011 FY11 Actual FY12 Target FY16 Target Total Revenue QR 935m QR 1.1bn QR 2.6bn Mobile Revenue Market Share 23% 27% 40% Fixed Revenue Market Share 0.1% 0.4% 22% EBITDA QR (27.1)m QR 120m QR 920m Capital Expenditure QR 475m QR 390m QR 290m Disclaimer: The above table contains forward-looking statements that are subject to risks and uncertainties including statements about Vodafone Qatar's beliefs and expectations. Forward-looking statements express the current expectations and projections of Vodafone Qatar relating to the condition, plans, objectives, future performance and business of Vodafone Qatar, as well as their expectations in relation to external conditions and events relating to Vodafone Qatar and its respective sector, operation and future performance. Due to these factors, Vodafone Qatar cautions that you should not place undue reliance on any forward-looking statement. 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. Except as required by Qatari law, the rules of the QFMA, or the rules of the Qatar Exchange, Vodafone Qatar has no duty to, and does not intend to, update or revise the forward-looking statements until July 2012. Vodafone and the Vodafone logo are trade marks of the Vodafone Group. Copyright Vodafone Qatar Q.S.C.#1717 Contact Details Q1 FY12 Results Presentation | 30 June 2011 Rachael Mayo-Smith Head of Investor Relations M +974 7777 5642 E [email protected] John Tombleson Acting CEO M +974 7777 5835 E [email protected] Khalid Barzak Investor Relations Manager M +974 7777 5413 E [email protected] Wade Kirkland Acting CFO M +974 7777 5093 E [email protected] Address: Vodafone Qatar PO BOX 27727 Doha, Qatar Website: www.vodafone.com.qa#1818 Appendices Q1 FY12 Results Presentation | 30 June 2011#1919 Q1 FY12 Results Presentation | 30 June 2011 Condensed Statement of Income - Quarter ended 30 June 2011 Three month period ended June 30, 2011 (Unaudited) QAR '000 Three month period ended June 30, 2010 (Unaudited) QAR '000 Revenue 290,633 175,777 Direct costs (132,804) (81,620) Other expenses (126,927) (102,923) Earnings before interest, tax, 30,902 (8,766) depreciation, and amortisation Depreciation (43,055) (32,559) Amortisation of licences (100,960) (100,584) Interest income 479 Financing costs (9,702) 930 (7,132) Loss before taxation Income tax expense Loss for the financial year (122,336) (148,111) -- Basic and diluted loss per share (QAR) (122,336) (0.14) (148,111) (0.18) Three month Three month period ended June 30, 2011 (Unaudited) QAR '000 period ended June 30, 2010 (Unaudited) QAR '000 Loss for the financial year (122,336) (148,111) Gains arising from cash flow hedge during 1,885 the year Total comprehensive loss for the financial year (120,451) (148,111)#2020 Q1 FY12 Results Presentation | 30 June 2011 Condensed Statement of Financial Position - as at 30 June 2011 30 June 2011 (Unaudited) QAR '000 31 March 2011 (Audited) QAR '000 30 June 2011 (Unaudited) QAR '000 31 March 2011 (Audited) QAR '000 Non-current assets Property, plant and equipment 1,206,604 Intangible assets 6,853,138 Trade and other receivables Total non-current assets 5,958 8,065,700 1,161,201 6,954,098 5,668 8,120,967 Equity Share capital 8,454,000 8,454,000 Legal reserve 11,442 11,442 Hedging reserve 21,669 Accumulated losses (1,529,364) 19,784 (1,407,028) Total equity 6,957,747 7,078,198 Current assets Non-current liabilities Inventories 15,517 11,496 End of employment benefits 1,004 4,707 Trade and other receivables 161,807 200,314 Provisions 9,171 8,604 Cash and cash equivalents 123,480 83,261 Long term borrowings 734,974 727,672 Total current assets 300,804 295,071 Total non-current liabilities 745,149 740,983 Total assets 8,366,504 8,416,038 Current liabilities Trade and other payables 663,608 596,857 Total current liabilities 663,608 596,857 Total liabilities 1,408,758 1,337,840 Total equity and liabilities 8,366,504 8,416,038#2121 Financial Highlights Financial Performance Q1 FY12 Results Presentation | 30 June 2011 Q1 FY10 Q1 FY11 Q1 FY12 Jun-09 Jun-10 Jun-11 QARM QARM QARM Total Revenue (Fixed & Mobile) 3.1 175.8 290.6 EBITDA (Fixed & Mobile) (73.1) (8.8) 30.9 Net Loss (Fixed & Mobile) (152.3) (148.1) (122.3) Operating Free Cash Flow (Fixed & Mobile) 1 11.2 (63.9) 21.8 Capitalised Fixed Asset Additions (Fixed & Mobile) 79.8 72.6 88.6 Key Performance Indicators (KPIs) Total Mobile Customers Quarterly Mobile ARPU Qatar's Population Qatar's Mobile Penetration Mobile Customer Market Share Total Mobile Revenue Market Share2 * estimated; Qtel's H1 results released on 14 August 2011 1 Excludes mobile license payment made in May 2009 Jun-09 Jun-10 Jun-11 15,000 534,000 761,000 n/a 104 116 1.609m 1.678m 1.625m 120% 160% 175% 0.8% 19.9% 26.8%* 0.3% 15.9% 23.4%* 2 Revenue market share is based on Vodafone Qatar's total mobile revenue (in which content revenue is reported as net) versus Qtel's reported postpay, prepay and other mobile revenue.#2222 Q1 FY12 Results Presentation | 30 June 2011 Fixed Line Rollout Plan VFQ is proceeding with plans to: • Turn on converged fixed & mobile core switch • Lay fibre from QSTP data centre to its international cable landing station near Al Khor • Landing station is finished. Administrative approvals required before work can be started on laying fibre • Lay fibre between data centre 1 and data centre 2 • Completion due by 30 September 2011 Lay fibre for backbone of the core fixed & mobile network • Completion due by 30 April 2012. Last mile access and metro to be delivered by QNBN entity (delivering fibre to the home at speeds of 100mbps for 95% of the population) We are on track to deliver to our Fixed license requirements below: Milestone Location Access Technology Required Service Time The Pearl Not specified Internet service 3 Months from Effective Date || The Pearl Not specified IV West Bay CBD Fibre to the Building V Rest of Qatar Not specified Fixed Voice and internet Fixed Voice Fixed Voice 12 Months from Effective Date 30 Months from effective date 48 months from effective date#2323 Vodafone Qatar Shareholder Structure Global Telecommunications leader مؤسسة قطر vodafone Qatar Foundation 51% 49% Founding Qatari Governmental Institutional Investors 15% Founding Government Institutions • Qatar Foundation: 5.0% • Military Staff Loans Fund: 3.4% • Military Pension Fund: 3.3% • Health & Education Endowment: 3.3% Q1 FY12 Results Presentation | 30 June 2011 Private institution of public Utility founded by HH Sheikh Hamad Bin Khalifa Al-Thani Vodafone and Qatar Foundation Free float on Qatar Exchange LLC 45% Vodafone Qatar QSC Authorized Share Capital: 845,400,000 (Shares) • Paid Up Capital: QAR 8,454,000,000 40% • Number of shares: Free Float (40%) 338,160,000 shares • No foreign ownership restrictions Free Float ownership split at 30 June: • Institutional Investors: • Individual Investors: 47% 53%