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FY10 Results – Full Year Ending 31 March 2010

Vodafone Qatar Q.S.C.

Full Year Results

Year ending 31 March 2010




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

• FY11 Outlook

• Fixed Line License Update

• Condensed Statement of Income & Cash Flows

• Condensed Statement of Financial Position

• Dividends

• Shareholding Structure




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

Launch• Fully subscribed IPO raised QAR 3,381.6m

• Freedom plans launched 7 July 2009

• Prepay plans launched 9 September 2009

• 464,962 Customers at 31 March 2010• 121% ahead of plan• Customers grew 32% last quarter• 500,000 Customers at 9 May 2010

Customer Numbers

Market Share• 28% Population share at 31 March (30% at 9

May)

• 18% Customer market share at 31 March

• 14% Revenue share at 31 March

Revenue &ARPU

• Total Revenue 26% ahead of plan

• Total Mobile ARPU for quarter ending 31 March 2010 of QR101

Network• Implemented 2G & 3G network

• 100% geographic coverage of 2G by 28 December 09

• Recent increase in network capacity to meet demand

Distribution & Care• 9 VF retail stores, 2 mobile truck stores & online

shop

• 600 outlets to join at & 2,000 where you can recharge

• Call Centre in 5 languages & recognised as top call centre in GCC




Customer GrowthQuarterly Customers & Market Share

15,404

150,799

353,580

464,962

18%

14%

7%

0.8%

-

100,000

200,000

300,000

400,000

500,000

600,000

Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 Q4 Mar-10

Tota

l Cus

tom

ers

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Mar

ket S

hare

Total Customers Customer Market Share




Financial Highlights

(1) Quarterly EBITDA and EBIT have been adjusted to align the Vodafone Group management fees with when revenues were earned (2) EBIT includes mobile license cost of QAR 7.7bn amortized over 19.16 years starting from 1 May 2009 and Quarterly EBIT has been adjusted to

distribute additional Amortisation expense incurred in March 2010 following a change from 20 to 19.16 years

Financial Performance

Q4 FY10 Q4 FY09 FY10 FY09Mar-10 Mar-09 Mar-10 Mar-09

QARm QARm QARm QARm

Total Revenue 144.7 n/a 361.5 n/a

EBITDA (28.7) (80.1) (225.4) (124.6)

EBIT (155.7) (80.8) (674.7) (125.3)

Operating Free Cash Flow (excl. license payment)

(256.0) (416.9) (551.6) (492.6)

Capitalised Fixed Asset Additions 201.5 308.6 523.8 389.3

KPIs

Jun-09 Sep-09 Dec-09 Mar-10

Total Customers 15,404 150,799 353,580 464,962

Total Quarterly ARPU n/a 173 171 101

Population 1.609M 1.623M 1.631M 1.677M

Annual Population growth 11% 8% 5% 2%

Mobile Penetration 117% 141% 152% 156%

Population Share 1% 9% 22% 28%

Customer Market Share 0.8% 7% 14% 18%

AnnualQuarterly

Quarterly

1,2

1

2




RevenueQuarterly Revenue

178

145

3.08

36.1

-

20

40

60

80

100

120

140

160

180

200


QA

R (

mill

ions

)




EBITDAQuarterly Adjusted EBITDA*

• Q4 FY10 EBITDA in-line with management forecasts and IPO prospectus business

plan.

• Expected to turn cumulatively EBITDA positive by December 2011.

-39

-29

-85

-73

-90

-80

-70

-60

-50

-40

-30

-20

-10

-


QA

R (

mill

ions

)

*Quarterly EBITDA has been adjusted to align the Vodafone Group management fees with when revenues were earned


Unadjusted EBITDA -73 -83 -30 -39




-162 -156-152

-205

-250

-200

-150

-100

-50

-


QA

R (

mill

ions

)

9

• Q4 FY10 EBIT in-line with management forecasts and IPO prospectus business

plan.

EBITQuarterly Adjusted EBIT*

*Quarterly EBIT has been adjusted to align the Vodafone Group management fees with when revenues were earned and to distribute additional Amortisation expense incurred in March 2010 following a change in the amortisation period from 20 years to 19.16 years


Unadjusted EBIT -149 -199 -149 -178




Capitalised Fixed Asset Additions

• Long-term capital expenditure expected to stabilise at 9% of revenue from FY14 onwards

524

389

0

100

200

300

400

500

600

FY 09 FY 10

QA

R (

mill

ions

)




Net Debt Borrowings less Term Deposits

• Borrowing facility extended from US$110m to US$230m to cater for increase in capex

due to accelerated customer uptake. The additional US$120m facility is at an interest

rate of 1.80%.

• Future borrowing will be required for fixed line.

433

371

-34

269

156

-42

-294

(400)

(300)

(200)

(100)

-

100

200

300

400

500

Q2 Sep-08 Q3 Dec-08 Q4 Mar-09 Q1 Jun-09 Q2 Sep-09 Q3 Dec-09 Q4 Mar-10

QAR

(mill

ions

)




Outlook FY11

• Focus on customer acquisition

• Launch BlackBerry® and data products

• Development of innovative solutions for the market• Vodafone Money Transfer

• Complete network build• Indoor coverage

• Convert temporary sites to permanent

• Launch fixed line broadband and voice services to The

Pearl, then wider Qatar




Fixed Line License

• Awarded to Vodafone Qatar Q.S.C. on 29 April 2010, subject to:– Shareholders’ approval to change the Memorandum and Articles of

Association at the EGM on 28 June 2010; and– Payment of QAR 10m license fee by 31 July 2010

• Fixed Line License Obligations:• The Pearl Development

– Broadband coverage within 3 months– Voice services within 12 months– Performance Bond: QAR 5m

• West Bay CBD– 100% Coverage within 30 months– Performance Bond: QAR 10m

• Rest of Qatar– 100% Coverage within 48 months– Performance Bond: QAR 10m




Condensed Statement of Income and Cash Flows – Year ended 31 March 2010

Year ended 31 March 2010

Period from 23 June 2008 to

March 31 2009Year ended 31 March 2010

Period from 23 June 2008 to

March 31 2009QAR ‘000 QAR ‘000 QAR ‘000 QAR ‘000

Net cash flows used in operating activities

(147,863) (99,715)

Revenue 361,522 28Direct costs (247,570) (31) Cash flows from investing activitiesOther expenses (339,253) (123,942) Purchase of property, plant and

equipment(423,994) (389,269)

EBITDA (225,301) (123,945) Payment for intangible assets (3,086,400) (4,629,600)Interest received 26,680 11,841

Depreciation (80,007) (752) Net cash flows used in investing activities

(3,483,714) (5,007,028)

Amortisation of licence (369,265) -Interest income 26,680 11,841 Cash flows from financing activitiesFinancing costs (25,495) (20,067) Issue of ordinary share capital 3,393,042 5,072,400Loss before taxation (673,388) (132,923) Proceeds of long term borrowings 379,083 -

Net movement in short term borrowing (35,000) 35,000Income tax expense - - Interest paid (20,746) (103)

Net cash flows from financing activities 3,716,379 5,107,297

Loss for the period (673,388) (132,923)Net cash flows 84,802 554

Basic and diluted loss per share (QAR) (0.82) (0.26)

554 --

85,356 554Cash and cash equivalents at the end of the financial period

Cash and cash equivalents at the beginning of the financial period




Condensed Statement of Financial Position – as at 31 March 2010

31 March 2010 31 March 2009 31 March 2010 31 March 2009QAR ‘000 QAR ‘000 QAR ‘000 QAR ‘000

Non-current assets EquityProperty, plant and equipment 832,283 388,517 Share capital 8,454,000 5,072,400Intangible asset 7,346,735 7,716,000 Legal reserve 11,442 -Trade and other receivables 4,432 5,348 Accumulated losses (806,311) (132,923)Total non-current assets 8,183,450 8,109,865 Total equity 7,659,131 4,939,477

Current assets Non-current liabilitiesInventory 21,713 4,784 End of employment benefits 1,972 392Trade and other receivables 118,207 25,705 Provisions 4,848 250Cash and cash equivalents 85,356 554 Long term borrowings 379,083 -Total current assets 225,276 31,043 Total non-current liabilities 385,903 642Total assets 8,408,726 8,140,908

Current liabilitiesTrade and other payables 363,692 3,165,789Short term borrowings - 35,000Total current liabilities 363,692 3,200,789Total liabilities 749,595 3,201,431Total equity and liabilities 8,408,726 8,140,908




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 Structure

GlobalTelecommunications

leader

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 March:• 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




Contact Details

Rachael Mayo-Smith

Investor Relations Manager

Tel: +974 777 5642

Email: [email protected]

Address: Vodafone Qatar

PO BOX 27727

Doha

Qatar

Website: www.vodafone.com.qa

John Tombleson

Chief Financial Officer

+974 777 5835

[email protected]

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