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.
2
4. TURKCELL GROUP FINANCIAL PERFORMANCE
CONSOLIDATED FINANCIAL RESULTS
Q1 2011
Q4 2011
Q1 2012
YoY (%)
QoQ (%)
Revenue
EBITDA
EBITDA Margin
Net Income
2,118
626
29.5%
330
2,446
695
28.4%
332
2,382
703
29.5%
515
12.4%
12.3%
56.0%
(2.6%)
1.2%
1.1pp
55.2%
Avg. US$/TRY rate
1.57
1.82
1.79
13.6%
(1.9%)
TRY million
Double digit revenue growth YoY
led by 8% growth in Turkcell
Turkey and 43% growth in
subsidiaries
4
Double digit EBITDA growth YoY
• Higher revenue
Strong growth in net income
• Higher EBITDA
• Increased contribution of
subsidiaries
• Higher net finance income
5. TURKCELL GROUP STRONG START TO THE YEAR
Q1 2011
Q1 2012
Turkcell Turkey Voice1
1,416
1,455
Turkcell Turkey
Mobile Broadband &
Services
424
529
Subsidiaries
279
398
(TRY million)
YoY Growth
3%
Turkcell Superonline grew by 59%
5
1 Voice revenues include outgoing, incoming, roaming and other (comprising almost 2% of Turkcell Turkey) revenues
25%
43%
6. TURKCELL TURKEY
MARKET AT A GLANCE
TURKCELL’S FOCUS
MOBILE MARKET
•
Aggressive offers & communication
•
Retaining the customer base
• Simplified tariff structure
• Decrease in average price per
minute
• Higher incentives
•
• Continued contracting efforts
9.3%
7.8%
• Responded to aggressive competition
via affordable tariff plans
• Continued focus on postpaid
Churn rate
Increased smartphone sales
•
Fueling the mobile broadband usage
•
Increased smartphone penetration
•
Created the need via innovation
61%
38%
Turkcell
6
1 Source: Gfk
Q1 2012
Smartphone sales in
total handset sales1
Promoted bundled offers
•
• 35%1 YoY growth in smartphone
sales
Q1 2011
Market
7. TURKCELL TURKEY
SHAPING THE FUTURE WITH TECHNOLOGY & INNOVATION
• 6,000 more 2G/3G base
stations compared to
the closest competitor
• Investments to reach
84 mbps speed
High Quality Mobile Network
• The first and only
operator in Turkey
providing 1000 mbps
speed for residential
segment
High Speed Fiber Network
7
Tailored and on-demand
cloud services for
corporate customers…
Turkey’s first mobile
technology to link
patients with their
doctors…
Personal TV experience
that spans multiple
screens and on-demand
content…
8. 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
4.90
2.37
points in 7 regions and 9
provinces in Turkey
4.55
1.75
1.40
2,136 measurements were
taken
Turkcell
Avea
Dowload
8
Vodafone
Upload
10. TURKCELL TURKEY
MOBILE BROADBAND DROVE NON-VOICE REVENUE GROWTH
HIGHER SHARE OF MOBILE
BROADBAND WITH INCREASING
SMARTPHONE NUMBERS
MOBILE BROADBAND & SERVICE
REVENUES BREAKDOWN (TRY million)
529
424
Mobile
Services
SMS/MMS
Mobile
Broadband
12%
10%
127
↑16% YoY
173
↑ 6%
109
8%
YoY
3.8
164
151
Q111
10
↑25% YoY
4.3
2.4
229
↑52% YoY
↑82% YoY
Q111
Q112
Q411
Q112
# of smartphones (million)
Mobile Broadband as a % of revenues
11. TURKCELL SUPERONLINE
STRONG GROWTH IN FIBER BROADBAND
TURKCELL SUPERONLINE FINANCIAL RESULTS
TRY million
Q1 2011
Revenue
EBITDA
EBITDA Margin
Capex
Q4 2011
91.1
14.5
16.0%
43.0
140.7
31.1
22.1%
172.4
REVENUE BREAKDOWN
29%
Corporate
Wholesale
11
24%
23%
30%
↑105% YoY
52%
41%
↑24% YoY
Q111
Residential
↑92% YoY
Q112
Q1 2012
145.0
29.1
20.1%
63.7
YoY (%)
QoQ (%)
59.2%
100.7%
4.1pp
48.1%
3.1%
(6.4%)
(2.0pp)
(63.1%)
Revenue growth through continued strong
growth in all segments
Group synergy further enhanced:
• Share of Turkcell Superonline in Turkcell’s
transmission cost reached 74%
307K fiber subscribers in Q112
12. UKRAINE SUSTAINED PROFITABILTY LEVELS
ASTELIT FINANCIAL RESULTS
$ million
Q1 2011
78.2
18.8
24.0%
7.4
98.1
24.9
25.4%
26.6
Revenue
EBITDA
EBITDA Margin
Capex
EBITDA & FCF MARGIN DEVELOPMENT
FCF margin
EBITDA margin
24.0%
Q1 2012
91.4
24.9
27.2%
5.3
Q4 2011
27.2%
21.4%
14.6%
Q111
QoQ (%)
16.9%
32.4%
3.2pp
(28.4%)
(6.8%)
1.8pp
(80.1%)
Turnaround strategy resulted in strong revenue and
EBITDA growth YoY
• Regional focus
• 7.1 million active subscribers up by 1 million YoY
Sustained improvement in EBITDA margins
•
12
YoY (%)
Q112
4th consecutive quarter with above 25% EBITDA
margin levels
13. FINANCIAL
OVERVIEW
Murat Erden,
Turkcell
Acting CFO
NOTICE:
Please note that all financial data are consolidated whereas nonfinancial 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 2012 result announcement press release.
14. TURKCELL GROUP
REVENUE (TRY MILLION)
Δ in Turkcell Turkey: ∑ TRY 144mn
2,118
39
Revenue
Q111
Δ in Voice*
105
Δ in Mobile
broadband & services
Q1 2012 vs. Q1 2011 YoY ↑12.4%
120
2,382
Δ in Subsidiaries
Revenue
Q112
Δ in Turkcell Turkey: ∑ TRY (58mn)
Q1 2012 vs. Q4 2011 QoQ↓ (2.6%)
2,446
(1)
(6)
2,382
Revenue
Q411
14
(57)
Δ in Voice*
Δ in Mobile
broadband & services
Δ in Subsidiaries
Revenue
Q112
*Voice revenues include outgoing, incoming, roaming and other (comprising almost 2% of Turkcell Turkey) revenues
15. TURKCELL GROUP
EBITDA MARGIN (%)
Q1 2012 vs. Q1 2011 YoY (-)
29.5%
(2.7pp)
EBITDA
Q111
Δ in Direct cost
of revenues*
0.2pp
Δ in G&A
exp.
2.5pp
29.5%
Δ in S&M
exp.
EBITDA
Q112
Q1 2012 vs. Q4 2011 QoQ ↑ 1.1pp
28.4%
(0.8pp)
1.6pp
29.5%
EBITDA
Q411
15
0.3pp
Δ in Direct cost
of revenues*
Δ in G&A
exp.
Δ in S&M
exp.
EBITDA
Q112
* Excluding depreciation and amortization
16. TURKCELL GROUP NET INCOME (TRY MILLION)
77
(55)
Δ in EBITDA
Δ in Depreciation
330
Δ in EBIT
65
22
Net income
Q111
Q1 2012 vs. Q1 2011 YoY ↑ 56.0%
(7)
Δ in Interest Δ in Equity in
Inc./Exp. Net Inc./Loss
60
40
(6)
11
515
Δ in FX
Gain/Loss
Δ in
Monetary
Gain/Loss
Δ in Taxation
Δ in Other
Net income
Q112
8
263
Δ in EBITDA
Δ in Depreciation
271
Q1 2012 vs. Q4 2011 QoQ ↑ 55.2%
5
(5)
129
(233)
13
3
515
Δ in Taxation
Δ in Other
Net income
Q112
332
Net income
Q411
16
Δ in EBIT
Δ in Interest Δ in Equity in
Inc./Exp. Net Inc./Loss
Δ in FX
Gain/Loss
Δ in
Monetary
Gain/Loss
17. TURKCELL GROUP BALANCE SHEET HIGHLIGHTS
Q1 2011
Q4 2011
Q1 2012
Total Cash
4,916
6,3341
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
Strong balance sheet maintained
17
Q1 2012 CAPEX SPLIT (TRY MILLION)
6,0582
Consolidated (TRY million)
Total Capex: TRY 253 million
Turkcell
Turkey
160
Turkcell
Superonline
64
Other
International 11
18
Subsequent event to March 31, 2012:
Payment of the guaranteed loan of Euroasia amounted to
USD 150 million as of April 6, 2012
1 TRY 1,596 million time deposits with a maturity longer than 3 months was recorded as Financial Investment
2 TRY 10 million time deposits with a maturity longer than 3 months was recorded as Financial Investment
19. SUMMARY INCOME STATEMENT AS PER CMB1 FINANCIALS (TRY MILLION)
Summary income statement (TRY mn)
Revenue
Direct Cost of Revenues2
Q1 2011
Q4 2011
Q1 2012
YoY (%)
QoQ (%)
2,445.5
2,381.8
(1,247.7) (1,790.5)
(1,489.8)
12.4%
19.4%
(2.6%)
(16.8%)
2,118.4
S&M
(451.6)
(402.8)
(2.0%)
(10.8%)
G&A
(110.3)
(103.8)
(118.1)
7.1%
13.8%
EBITDA
625.8
694.7
702.7
12.3%
1.2%
EBITDA Margin
29.5%
28.4%
29.5%
-
1.1pp
Net Income
19
(411.1)
330.9
333.3
515.5
55.8%
54.7%
1 Capital Markets Board of Turkey
2 Depreciation and amortization is included
20. CONSOLIDATED CASH FLOW ($ MILLION)
Consolidated Cash Flow($ mn)
EBITDA1
Q1 2011*
Q4 2011*
Q1 2012
YoY (%)
QoQ (%)
398
384
393
(1.3%)
2.3%
(117)
(368)
(143)
22.2%
(61.1%)
Turkcell
(61)
(185)
(90)
47.5%
(51.4%)
Ukraine
(7)
(27)
(5)
(28.6%)
(81.5%)
6
(847)
892
n.m.
(205.3%)
39
70
70
79.5%
-
(422)
(63)
(340)
(19.4%)
439.7%
(31)
(7)
31
(200.0%)
(542.9%)
-
-
-
-
-
Cash Generated
(127)
(831)
903
(811.0%)
(208.7%)
Cash Balance
3,175
2,509
3,411
7.4%
36.0%
LESS:
Capex and License
Investment & Marketable Securities
Net Interest Income/Expense
Other
Net Change in Debt
Dividend paid
20
1 EBITDA is a non-GAAP financial measure. See page 12 of our press release for the reconciliation of EBITDA to net cash from operating activities.
* Changed from previously released presentation
21. CONSOLIDATED BALANCE SHEET ($ MILLION)
Consolidated Balance Sheet ($ mn)
Cash & Bank
CURRENT ASSETS
Fixed Assets, Net
Other Long Term Assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
S/T Debt
TOTAL CURRENT LIABILITIES
L/T Debt
TOTAL NON-CURRENT LIABILITIES
MINORITY INTEREST
Share Capital
TOTAL EQUITY
TOTAL EQUITY AND LIABILITIES
21
Q1 2011
3,175
4,462
4,703
620
5,323
9,786
375
1,552
1,428
1,798
(34)
1,636
6,435
9,786
Q4 2011
2,509
4,464
3,956
679
4,635
9,099
812
2,063
1,057
1,304
(61)
1,636
5,732
9,099
Q1 2012
3,411
4,808
4,139
730
4,869
9,677
1,462
2,585
434
704
(61)
1,636
6,388
9,677
YoY (%)
7.4%
7.8%
(12.0%)
17.7%
(8.5%)
(1.1%)
289.9%
66.6%
(69.6%)
(60.8%)
79.4%
0.0%
(0.7%)
(1.1%)
QoQ (%)
36.0%
7.7%
4.6%
7.5%
5.0%
6.4%
80.0%
25.3%
(58.9%)
(46.0%)
0.0%
0.0%
11.4%
6.4%
22. THANK
YOU
For further information please e-mail
investor.relations@turkcell.com.tr
or call Turkcell Investor Relations at
(+90 212 313 1888)
www.turkcell.com.tr
