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April 18, 2013
FIRST QUARTER OF 2013
Follow this QR-code to download our
Q113 press release
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.
NOTICE
2
BUSINESS OVERVIEW
Süreyya Ciliv Turkcell CEO
TURKCELL GROUP: FINANCIAL HIGHLIGHTS
4
CONSOLIDATED FINANCIAL RESULTS
TRY MILLION1 Q1 2012 Q4 2012 Q1 2013 Growth YoY %
Revenue 2,382 2,807 2,688 13%
EBITDA2 703 848 808 15%
EBITDA Margin 29.5% 30.2% 30.0% 0.5pp
Net Income 515 459 566 10%
Avg. US$/TRY rate 1.79 1.79 1.79 -
HIGHLIGHTS OF THE QUARTER
1 TRY figures are based on IFRS TRY figures 2 EBITDA is a non-GAAP financial measure. Please refer to the press release for the reconciliation of EBITDA to net cash from operating activities.
• Double-digit revenue and EBITDA growth year-on-year led by Turkcell Turkey and subsidiaries
• Net income grew by 10% year-on-year mainly due to higher operational profitability despite lower net finance income
TURKCELL GROUP: REVENUE GROWTH DRIVERS
5
GROUP REVENUE BREAKDOWN
TRY MILLION Q1 2012 Q1 2013 Growth (absolute YoY)
Growth (% YoY)
% in Group revenues in
Q113
Group Revenue 2,382 2,688 307 13%
Turkcell Turkey 1,984 2,201 217 11% 82%
Voice1 1,455 1,585 130 9% 59%
Mobile Broadband & Services
529 616 87 16% 23%
Subsidiaries 398 488 90 23% 18%
1 Voice revenues include outgoing, incoming, roaming and other (comprising almost 2% of Turkcell Turkey) revenues
TURKCELL TURKEY: COMPETITIVE ENVIRONMENT IN Q1 2013
TURKCELL
• Recovery in average pricing
• Focused on generating value and providing superior customer experience
AVERAGE REVENUE PER MINUTE (YoY %)
Flat 500 min + 5000SMS for
TRY15
Flat 1000min + PSTN 1000 min for
TRY25 Flat 500 min
for TRY15 Flat 500 min +1000
SMS + 1GB for TRY19 250 min for
TRY10
Oct’12 Mar’13
MOST COMMUNICATED & AGGRESSIVE COMPETITOR TARIFFS
• Market share focus through MNP offers with very low profitability; Sub-brand initiatives with low acquisition prices
COMPETITION
Flat 200 min for TRY9
Flat 500 min +5000 SMS + 1GB for TRY19
Apr’13
-13% -9% -9%
-1% 2%
Q112 Q212 Q312 Q412 Q113
6
TURKCELL TURKEY: IMPROVED ARPU THRU BETTER SUBSCRIBER MIX
SUBSCRIBER (MILLION) BLENDED ARPU (TRY)
19.2
21.0
1Q12 1Q13
↑9%
YoY
POSTPAID ARPU PREPAID ARPU
36.5 36.4
1Q12 1Q13
↓0.3% YoY
10.1
11.5
1Q12 1Q13
↑14% YoY
13.5
21.4
Postpaid Prepaid
Total: 34.9
million
SHARE IN TURKCELL TURKEY REVENUES Q113
66%
34%
7
↑285K in postpaid
TURKCELL TURKEY: MONETIZING ON DATA OPPORTUNITY
8
MOBILE BROADBAND & SERVICES REVENUES
229
295
319 13%
19%
22%
Q112 Q412 Q113
Mobile BB Revenues Smartphone Penetration
TRY MILLION
Mobile BB & Services
Revenues (TRY mn)
YoY % Chg
Mobile Broadband
Messaging & services
616 ↑ 16%
319 ↑ 39%
297 ↓ 1%
MOBILE BROADBAND
52% 48%
Mobile Broadband & Services Revenue Breakdown – Q113
TURKCELL SUPERONLINE: STRONG PERFORMANCE
FINANCIAL FIGURES
145
190 203
20% 21%
27%
Q112 Q412 Q113
Revenue EBITDA margin
40% yoy
SOLID GROWTH IN ALL SEGMENTS
Wholesale Corporate Residential
YoY Growth
↑ 30%
↑ 69%
↑ 26%
Reached 1.4 mn home-pass and 464K FTTX subscribers
Continued improvement in operational performance
41% 38%
30% 27%
29%
35%
Q112 Q113
9
TRY MILLION REVENUE BREAKDOWN
FINANCIAL FIGURES SUBSCRIBERS
91 103 99
27% 27%
28%
Q112 Q412 Q113
Revenue EBITDA margin
9% yoy
UKRAINE: CONTINUED SOLID RESULTS
7.1
8.0 8.2
Q112 Q412 Q113
USD MILLION
Revenue growth mainly driven by
- Subscriber base growth
- Higher mobile data and other value-added services revenue
10
↑1.1 million YoY
3-MONTH ACTIVE- MILLION
FINANCIAL OVERVIEW
Murat Erden Turkcell Acting CFO
NOTICE:
Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified.
EBITDA is a non-GAAP financial measure. Please refer to the press release for the reconciliation of EBITDA to net cash from operating activities.
All non-financial data are unconsolidated, prepared in accordance with IFRS and expressed in US$ and/or TRY.
The figures used in this presentation are rounded while percentage changes are calculated based on the figures disclosed in the Q1 2013 result announcement press release.
29.5% 30.0%
(0.8pp) 0.2pp 1.1pp
EBITDAQ112
Δ in Direct cost
of revenues*
Δ in G&A exp.
Δ in S&M exp.
EBITDAQ113
2,118
2,382
2,688
Q111 Q112 Q113
TURKCELL GROUP: REVENUE & EBITDA MARGIN DEVELOPMENT
12
13% yoy 12%
yoy
Δ in interconnect
(1.3pp)
REVENUE EBITDA MARGIN
(6%) yoy
TRY MILLION %
*Excluding depreciation and amortization
515
566
78
5 19 (37)
13 (32) 5
Net incomeQ112
Δ in EBIT Δ in Interest Inc./Exp.
Δ in Equity in
Net Inc./Loss
Δ in FX Gain/Loss
Δ in Monetary Gain/Loss
Δ in Taxation Δ in Other Net incomeQ113
Q113 vs. Q112 YoY ↑ 10%
TURKCELL GROUP: NET INCOME
13
∆ in EBITDA 105 ∆ in D&A (27)
∆ in interest income (17) ∆ in interest expense 22
TRY MILLION
TURKCELL GROUP: BALANCE SHEET HIGHLIGHTS
TRY million Q1 2012 Q4 2012 Q1 2013
Total Cash 6,048 6,999 6,611
Total Assets 17,157 18,687 18,863
Total Debt 3,359 3,040 3,015
Net Cash 2,688 3,959 3,596
Total Equity 11,325 12,764 13,284
CONSOLIDATED
14 1 Including operational and non-operational capex
MAJOR CASH OUTFLOW ITEMS IN Q113
Capex1 amounted to TRY 199.5 million
Frequency usage fee payment amounted to TRY 344 million TL
THANK YOU
For further information please e-mail
investor.relations@turkcell.com.tr or call Turkcell Investor Relations at
(+90 212 313 1888)
APPENDIX
17
SUMMARY INCOME STATEMENT AS PER CMB1 FINANCIALS
1 Capital Markets Board of Turkey 2 Depreciation and amortization is included
17
Summary income statement (TRY mn) Q1 2012 Q4 2012 Q1 2013 YoY (%) QoQ (%)
Revenue 2,381.8 2,807.3 2,688.4 13% (4%)
Direct Cost of Revenues2 (1,489.8) (1,759.5) (1,685.7) 12% (4%)
S&M (402.8) (469.0) (425.0) 6% (9%)
G&A (118.1) (125.9) (128.9) 9% 2%
EBITDA 702.7 847.8 807.6 15% (5%)
EBITDA Margin 29.5% 30.2% 30.0% 2% (1%)
Net Income 515.5 460.2 566.9 10% 23%
CONSOLIDATED BALANCE SHEET ($ MILLION)
18
Consolidated Balance Sheet ($ mn) Q1 2012 Q4 2012 Q1 2013 YoY (%) QoQ (%)
Cash & Bank 3,411 3,926 3,655 7% (7%)
CURRENT ASSETS 4,808 5,484 5,477 14% (0%)
Fixed Assets, Net 4,139 4,357 4,223 2% (3%)
Other Long Term Assets 730 643 729 (0%) (13%)
TOTAL NON-CURRENT ASSETS 4,869 5,000 4,952 2% (1%)
TOTAL ASSETS 9,677 10,483 10,429 8% (1%)
S/T Debt 1,462 1,086 892 (39%) (18%)
TOTAL CURRENT LIABILITIES 2,585 2,351 1,958 (24%) (17%)
L/T Debt 434 619 775 79% 25%
TOTAL NON-CURRENT LIABILITIES 704 972 1,126 60% 16%
MINORITY INTEREST (61) (79) (81) 33% 3%
Share Capital 1,636 1,636 1,636 0% 0%
TOTAL EQUITY 6,388 7,160 7,345 15% 3%
TOTAL EQUITY AND LIABILITIES 9,677 10,483 10,429 8% (1%)
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