#1Vodafone Qatar Q.S.C Financial Results Press Presentation For the 12 months ended 31 March 2012#2Disclaimer • 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 and the Vodafone logo are trademarks of the Vodafone Group. 2 FY Financial Results | 31 March 2012#3Agenda • Key highlights • FY12 financial review • Commercial and strategic progress • Q&A 3 FY Financial Results | 31 March 2012#4Key Highlights For the Year ended 31 March 2012 837,233 Mobile Customers 11% growth 28.5% Mobile customer market share 1.8pp growth 4 FY Financial Results | 31 March 2012 QR 1.2bn Total Revenue 31% growth 24.5% Mobile revenue market share for the year 4.5pp growth QR 144m EBITDA 12% EBITDA margin QR (82)m Distributable Profits 58% improvement#5FY12 Financial Review Steve Walters Follow this code to view our Investor Relations web page#66 Mobile Customer Growth Year-on-Year Growth in Mobile Customers and Mobile Customer Market Share 28.5% 26.7% 837 757 17.8% 465 FY10 Total Mobile Customers (000's) FY11 FY12 Mobile Customer Market Share (%) • 11% growth in Customer Numbers year-on-year, 80k customers gained • 5.6% growth in population* • Penetration broadly unchanged throughout the year at 166% *Based on data from the Qatar Statistics Authority FY Financial Results | 31 March 2012#7Total Revenue Year-on-Year Total Revenue Comparison 24.5% 20.0% 1222 935 8.6% 362 FY10 12mth Revenue (QRm) FY11 -0-12 mth Mobile Revenue Market Share FY12 • 31% growth in Total Revenue year-on-year delivering a 4.5pt improvement in market share • Results ahead of external guidance • Revenue growth driven by increased customer base and improved handset sales • Full Year ARPU is QR 112 (broadly flat year-on-year) - mobile data services offsetting voice promotions 7 FY Financial Results | 31 March 2012#8EBITDA Year-on-Year EBITDA Comparison EBITDA % (225) FY10 -62% (27) 144 FY11 FY12 3% 12% • Results ahead of external guidance • Positive quarterly EBITDA since December 2010 • First full year of positive earnings • 13.5% increase in Quarterly EBITDA quarter-on-quarter ⚫ EBITDA margin improved to 12% for the year reflecting benefits of greater operating scale and the sale of a higher proportion of more profitable voice and data services. 8 FY Financial Results | 31 March 2012#9Net Loss & Distributable Profits Year-on-Year Comparison FY 10 FY11 FY 12 (197) (304) (673) (601) (82) (486) • 19% improvement in Net Loss year-on-year • Full year Distributable Profits improve 58% to a loss of QR82m • Improvements driven by increase in EBITDA Distributable Profits (Net Loss plus Amortisation) Amortisation (Annual Amortisation of the QR 7.7bn license fee is QR 404 million) Whilst the amortisation of the mobile licence is a considerable expense, it is a non-cash item and has no impact on the cash flows of the business. • Annual Distributable Profits is the measure on which dividends will be based 9 FY Financial Results | 31 March 2012#10Capitalised Fixed Asset Additions Capital Intensity 524 475 399 138 108 FY 10 FY 11 FY 12 145% • QR 1.79 billion capital invested since incorporation 51% 33% Fixed Line Mobile ⚫ 117 additional sites were rolled out contributing to improvements in our customers' experience • Fixed line expenditure to develop infrastructure for roll-out of fixed services in 2012 • Ongoing reduction in Capital intensity 10 FY Financial Results | 31 March 2012#11Net Debt Borrowings less Term Deposits FY 10 (294) FY 11 FY 12 (644) (937) • We have borrowing facilities of US$ 330m (QR 1.2 billion) comprising: US$110m (QR 400m): 1mth US Libor + 1.30% maturing 8 March 2019 (replaced the previous 1 mth US Libor + 3.55% loan for the same amount which expired 2 April 2012) - US$120m (QR 437m): 1mth US Libor + 1.55%; maturing 3 May 2014 US$100m (QR 364m): 1mth US Libor + 1.15%; maturing 1 June 2018 D/E ratio of 14% at 31 March 2012 (17.9% if total borrowing facilities were fully utilised) 11 FY Financial Results | 31 March 2012#12Commercial and Strategic Progress Richard Daly 12 FY Financial Results Results - 31 March 2012#13Strategic Priorities Network Postpaid Mobile Number Portability Enterprise & Business Fixed Line Qatarisation Brand Relaunch Key achievements A further 45 new sites (542) and 11 indoor solutions (132) Significant improvement in call quality with 99.8% network availability Excellent data speeds - and incredible data usage Preparing to launch Post paid Mobile Number Portability planned for November -MOU signed with Qtel Team now built - new Enterprise Director in place Will launch new tariffs on post paid in Summer Services to follow later this year Vodafone Landing Station now operational - GBI services launched QNBN interim access agreement signed and service in Barwa City Vodafone fibre backbone almost complete connecting key hubs Qatari call centre in Doha now live and serving customers Middle Eastern call centre of the year award winner.. again 14% employees are Qatari including External Affairs Director New agency 'The Agency' - Qatar based and by design New Brand platform - network campaign Qatari NPS improved 21ppts from December to April 13 FY Financial Results Results - 31 March 2012#14Qatari customers are appreciating the improvements in our service • Localisation of our brand is one of the key priorities for the future • Significant improvement in our Qatari customer satisfaction Network Performance - Brand Campaign Value offers Community relevance Qatari call centre and new marketing campaign are two of the key successes wwwwww 14 FY Financial Results Results - 31 March 2012 Qatari Net Promoter Score Trends 10 +21 2 (9) (8) (11) Oct Nov Dec Jan'12 Feb Mar Apr#1515 Appendices#16Condensed Statement of Income - year ended 31 March 2012 Year ended 31 March 2012 QR '000 Year ended 31 March 2011 QR '000 Revenue 1,221,724 934,899 Direct costs (560,743) (475,042) Other expenses (516,914) (486,939) Earnings before interest, tax, depreciation, and amortisation 144,067 (27,082) Depreciation (196,639) (145,844) Amortisation of licences (403,840) (402,637) Interest income 662 5,397 Financing costs Loss before taxation (30,236) (30,551) (485,986) (600,717) Income tax expense Loss for the financial year Basic and diluted loss per share (QAR) STATEMENT OF COMPREHENSIVE INCOME Loss for the financial year (Loss)/Gain arising from cash flow hedges during the year (485,986) (600,717) (0.57) (0.71) Year ended 31 March Year ended 31 March 2012 QR '000 2011 QR '000 (485,986) (600,717) (18,711) 19,784 Total comprehensive loss for the financial year (504,697) (580,933) 16 FY Financial Results Results - 31 March 2012#17Condensed Statement of Financial Position - as at 31 March 2012 31 March 2012 QR '000 31 March 2011 QR '000 31 March 2012 QR '000 31 March 2011 QR '000 Non-current assets Equity Property, plant and equipment 1,363,974 Intangible assets 6,550,258 1,161,201 6,954,098 Share capital Legal reserve Trade and other debit balances 6,940 5,668 Hedging reserve Total non-current assets 7,921,172 8,120,967 Accumulated losses Total equity 8,454,000 11,442 1,073 8,454,000 11,442 (1,893,014) (1,407,028) 6,573,501 7,078,198 19,784 Current assets Inventories 11,895 11,496 Trade and other debit balances 171,339 200,314 Non-current liabilities Employees' end of service benefits Cash and cash equivalents 100,338 83,261 Provisions Total current assets Total assets 283,572 8,204,744 295,071 Long term borrowings 8,416,038 Total non-current liabilities 8,233 4,707 10,939 8,604 1,037,266 727,672 1,056,438 740,983 Current liabilities Trade and other payables 574,805 596,857 Total current liabilities 574,805 596,857 Total liabilities 1,631,243 1,337,840 Total equity and liabilities 8,204,744 8,416,038 17 FY Financial Results Results - 31 March 2012#18Financial Summary Fixed and Mobile Year to Year to Year to YOY Mar-10 Mar-11 Mar-12 Growth QRM QRM QRM % Total Revenue EBITDA 362 935 1,222 31% (225) (27) 144 n/a Net Loss (673) (601) (486) 19% Capitalised Fixed Asset Additions 524 475 399 (16%) Free Cash Flow (566) (341) (293) 14% Key Performance Indicators (KPIs) Mar-10 Mar-11 Mar-12 YoY% Total Mobile Customers ('000s) Qatar's Population ('m) 465 757 837 11% 1.677 1.679 1.744 4% Qatar's Mobile Penetration 156% 169% 166% (3.2)ppts Mobile Customer Market Share 17.8% 26.7% 28.5% 1.8ppts Mobile Revenue Market Share 1 8.6% 20.0% 24.5% 4.5ppts 1 Revenue market share is based on Vodafone Qatar's total mobile revenue (in which content revenue is reported as net) and Qtel's reported postpay, prepay and other mobile revenue. 18 FY Financial Results Results - 31 March 2012#19Vodafone Qatar Shareholder Structure مؤسسة قطر Qatar Foundation Private institution of public Utility founded by HH Sheikh Hamad Bin Khalifa vodafone Global Telecommunications leader Al-Thani 49% 51% Vodafone and Qatar Foundation LLC 45% Vodafone Qatar QSC Authorized Share Capital: Paid Up Capital: 845,400,000 (Shares) QAR 8,454,000,000 55% Free float on Qatar Exchange Number of Free Float shares: 464,970,000 No foreign ownership restrictions Free Float ownership split at 31 March: Institutional Investors: Individual Investors: 19 FY Financial Results Results - 31 March 2012 62% 38%#20Contact Details Jay Odedra Investor Relations Manager M +974 7777 5102 E [email protected] Steve Walters Chief Financial Officer M +974 7777 5464 E [email protected] Khalid Barzak Investor Relations Manager M +974 7777 5413 E [email protected] Address: Vodafone Qatar PO BOX 27727 Doha, Qatar Website: www.vodafone.com.qa 20 FY Financial Results Results - 31 March 2012