STC Presentation - EFG Hermes Research

STC Presentation
Investor Relations
February 2013
Disclaimer
This presentation has been prepared as an informative guide that might assist interested
parties in gaining an insight into the history and background of telecommunications within
Saudi Arabia, as they relate to the Saudi Telecom Company (STC). Furthermore, it does not
constitute an invitation or inducement to purchase or dispose of any securities, either in
STC, or any companies in which STC has a financial interest.
In addition, there may also be ‘forward looking’ statements included within the meaning of
current securities laws and regulations. In this context, any opinions expressed within this
document, regarding the company’s potential future performance, should be viewed as
being accurate at the time of preparation. However, cognizance should be taken of the fact
that uncertainty may dictate that actual performance differs substantially from any views
articulated herein.
2
Our mission and values
STC Mission:
As leaders in a world of constant change, we strive to exceed our customers expectations so
that, together, we reach new horizons.
‫ ﻧﺣﻘﻕ ﻓﻳﻪ ﺗﻁﻠﻌﺎﺕ ﻋﻣﻼﺋﻧﺎ ﻟﻧﺑﻠﻎ ﻣﻌﻬﻡ ﺃﻓﺎﻗﺎ ً ﺟﺩﻳﺩﺓ‬،‫ﺭﻭﺍﺩ ﻓﻲ ﻋﺎﻟﻡ ﻳﺗﺟﺩﺩ‬
STC Values:
Honesty | Commitment | Cooperation | Respect | Initiative | Loyalty
3
Since its establishment in 1998, STC has been listed on Tadawul in 2002 and
grown organically and through acquisition…
Establishment
1998
Introduction of
DSL services
2002
STC Goes Public
via IPO
2003
Increased of the
Company's share capital
from SR 15,000 million to
SR 20,000 million
2005
2006
Acquires stake in
Launched Indonesian
operation under the
name
Fiber Optic in Saudi
reached more than
500,000 home pass (site)
Launched Bundled
services
2007
2008
10 million mobile
customer mark and
launch of 3G and
3.5G mobile
Acquires stake in
technology
Communications and its
operations in Indonesia and
India plus wining the third
mobile license in Kuwait
4
2009
2010
2011
2012
Third mobile
license in Bahrain
Acquires 60% stake in Sale
Communication
Increased its share in AXIS,
Indonesia and Integral.
lunched IPTV in
Saudi Arabia
…and today is the largest telecom operator in the MENA region

Around 170 million subscribers in 10 countries as the end of 2012

Present in 11 countries, as at 2012, following significant international expansion

Ranked #1 most valuable telecom brand in the Middle East

As of 31.12.2012, 32% of 2012 consolidated revenue was from international operations
STC Total Subscribers - (Millions)
STC Consolidated Revenues (SRb)
64
56
48
40
32
24
16
8
0
47.5
32.3
34.5
79%
50.8
51.8
55.7
59.4
34
71%
67%
68%
68%
136
29%
33%
2009
2010
32%
32%
2011
2012
21%
2006
2007
KSA
2008
International
KSA
5
International
STC continues to maintain a leading position in the domestic market
Revenue market share in local market at the end of 2012
• STC continues to dominate with the
highest local revenue market share at
the end of 2012.
57%
43%
STC
Other operators
• Fixed Broadband subscribers
exceeded 2.2 million at the end of year
2012.
KSA Mobile Subscribers at the end of 2012
52%
48%
• STC maintained its leadership position.
The number of mobile customers
increased to over 27 million at the end of
2012.
STC
Other operators*
* ‘Other operators’ based on media
releases and market reports
• Fixed & wireless broadband customers
increased by more than 100% during
2012 compared to 2011.
KSA Broadband Subscribers at the end of 2012
STC*
Other operators**
* Includes wireless and DSL
** Other operators based on the local media and their latest release
6
Source: Company Financial Statements, Published Reports on Saudi Telecom Market
Domestic market growth will continue to be strong as a result of a rising
population, with an expanding and increasingly wealthy, youth segment
Population in Saudi Arabia* (Millions)
CAGR
• KSA has a relatively fast growing
population at a CAGR (2005-2010) of
3.2% vs. the world population growth
rate of 1.21%
3.2%
• 50% of KSA population is under the
age of 20
Households in Saudi Arabia* (Millions)
CAGR
4.2%
Expatriates
23%
Saudis
77%
Sources: * Statistical Yearbook - Ministry of Planning & CITC Annual Report 2009
7
• Relatively large average household
size of 6 people
• Fixed Broadband penetration at 43%
of households, is under penetrated
STC is well positioned to deliver growth in the future as result of the new LEAD
strategy
Consistent Record
STC has a consistent history of success and delivering increases in key
metrics
Growing Market
Domestic and regional trends are driving adoption of mobile and
Broadband services
Strong Market Position
Strong market position in KSA and an expanding presence in key
regional growth markets which STC can leverage with its growth drivers
Solid Growth Strategy
STC is leading through innovative solutions for our customers across
fixed, mobile and data product
Cost Savings
Strategic approach to costs: STC is using its investment in NGN networks
and international markets to create synergies that will reduce future CAPEX
and OPEX
Excellent Credit Rating
Strong balance sheet and cash flow enables growth through acquisition;
STC is currently underleveraged, with ability to raise substantial levels of
debt to fund future investments
8
LEAD strategy
1
Lead in Next-Gen
Broadband
2
Differentiated
Customer Experience
3
Consolidate
International Leadership
Become the broadband operator of choice offering ubiquitous
access, converged offerings and innovative content and
applications
Delight customers with an integrated experience, differentiated
sales and service model, tailored offerings and a next-generation
customer service
Optimize international investment portfolio, further expand in the
MENA region, drive products, technology and supply chain
synergies, and build-up international management capabilities
4
(2012-2014)
Invest in
People Capital
Invest in leadership and talent development, increase employee
empowerment, and foster a winning corporate culture
5
Drive Financial
Performance and Agility
6
Promote Leading Brand and
Reputation
Provide value to shareholders by continuously driving efficiency
in operations and investing in long-term profitable growth
Promote a strong brand and reputation that consistently
communicates superior value to stakeholders and STC’s
role as the catalyst for economic and social development
9
STC’s growth strategy has a well diversified market focus and is built on 5 core
drivers
Core Drivers
1
Growth Drivers
3G & 4G LTE Mobile
Applications & Content
Mobile and Active 3G & 4G
network customers
NGN
2
Broadband Internet market
with expanding customer
base
3
Large, medium and small
business
4
New domestic fix-line market
entrants, international traffic
and cross continents cables
5
International emerging
markets
ADSL + VDSL + FTTH
HSDPA & 4G LTE
“Total Solution”
(One Stop Shop)
Wholesale Capacity
International investments
in leading Telco's
10
Sustainable
Growth Drivers
Mobile Strategy: Growth through 3G & 4G Services, Applications and Content
Share of High End Customers
High ARPU Levels
Mobile Subscription Type
Mobile Penetration Rate* & Mobile Blended ARPU
Pre-paid
Post-paid
SR
200
10 -15%
20 -30%
10 -15%
90-95%
182
186
150
150
135
113
100
70-80%
81
90-95%
50
188
167
60
*
181
200
160
138
120
126
109
100 90
**
93
80
STC Mobile Blended ARPU (SR)
40
Mobile Penetration Rate (%)
Regional Benchmark
0
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
STC
• In 2011 STC launched the first 4G network services in the Middle East and North Africa, to be the first mobile operator in
the region to adopt fourth-generation technology, to serve its customer needs and provide speeds up to 100Mbs
• LTE technology gives STC the ability to provide fixed services over mobile networks.
• Pro1 is the first 4G service that was launched in Q3 2011, with a free Quick net modem, 4G SIM card with 10GB usage
and free of charge for the first three months, other 4G based services were launched since then.
* CITC (Regulator) Annual Report at the end of Q3 2012
** Mobile ARPU calculation based on total mobile revenue
11
.. comprehensive strategy centered around Mobile Broadband, Smart phones &
Tablets and innovative Content & Applications
Smart phones & Tablets (First in KSA)
and more
12
Contents & Applications
Broadband Strategy: Growth through next Generation Network (NGN)
Initial signs of success
• More than 300,000 kilometers of fiber optic cable already operational
• High customer satisfaction rating from shared services customers
Introduction of new
services
•
•
•
•
FTTH will lead to faster broadband speed, up to 1000Mb
Bundled Services such as “triple play”
Interactive TV services such “ InVision” launched in 2011
VERVE is the commercial name for FTTH (from 40Mb to 1000Mb)
Cost savings
• Significant OPEX reduction from less repairs & maintenance expenses.
13
Broadband Strategy: Growth through leveraging Market Access
Strong Market Access
 Already serving more than 95% of households
with fixed line voice services
STC Fixed Line and Fixed Broadband Subscribers
(Millions)
Underpenetrated Broadband Market
 Number of households grew by 15% from
2005-2010
 Number of fixed broadband subscribers grew by
a CAGR of 56%
Fixed Line
6
Fixed Broadband
5
4
3.8
3.9
4.1
4.1
4.2
4.3
3
2.1
2
1
4.5
0.1
0.2
0.6
1.1
1.4
4.5
2.2
1.5
Value Added Offerings
 NGN last mile (Broadband J, J+) and other
services like IPTV
0
2005 2006 2007 2008 2009 2010 2011 2012
Successful Growth Strategies


Source: STC Home BU & CITC
14
Accelerate broadband adoption through
deployment of NGN
Offer bundled service packages
Bundling services (fixed, ADSL, and wireless Broadband) distinguishes STC’s
offering in the market
Individual: Customers can proactively manage their accounts by adding or removing services allowing them to control their bills.
Business: Voice, data, and mobile services can be bundled with a monthly discount & a consolidated bill.
Residential : bundling PSTN with fixed & wireless broadband consolidated in one bill.
Services
• ADSL
• Subscription
Package*
AFAQ DSL
(ADSL, VDSL, FTTH)
DSL access + internet subscription (Internet speed up to 4Mb)
Broadband Jood 2
ADSL from 1 to 20Mb + unlimited calls to STC’s fixed line + 25% off for 2 Jawal or
other operator numbers + Low fare international calls + Free Wi-Fi in < 1000
locations
Broadband Jood 3
Broadband Jood 2 + Invision service basic package
Broadband Jood 4
Broadband Jood 3 + Quick net service with 2GB internet download capacity per
month
• Land line
• Internet|
• Subscription
Description
JAWAL: Unlimited calls to Jawal and the networks of other mobile operators for 24 hours + Call Management
+ Keys:
Invision: Variety of TV channels packages + Video on Demand+ Ability to record+ The pause and rewind+ Parental
control feature, which gives you the ability to create a file for every family member with the allowed channels and
programs. + interactive services like Youtube.
Quick Net: Internet SIM card that provides diverse monthly upload capacities of 2Gb, 5Gb and 10Gb along with
advanced Quick Net modem with a competitive price and up to 50% discounts.
15
* Check www.stc.com.sa for monthly fees.
STC has a competitive advantage in offering medium and large size businesses
solutions that will enable them to maintain and grow market share, despite
increased competition
STC Enterprise Customer Distribution
Number of
Customers
Focus Segments
Key
~250
Accounts
Large
Businesses
o Widest fiber reach in the Kingdom
o Sole operator able to provide all service include fixed
and mobile lines, advanced data needs, broadband,
fiber-to-the-factory, Wifi, Wimax and VAS.
~6000
o Growing portfolio of customized solutions
• Serving top Saudi Arabian organizations like
Government ministry’s and major corporations.
Medium Businesses
~49,000
o Developing the telecom infrastructure in new
economic cities:
o Delivered several high stakes projects such as
KAUST and Princess Noura University
Small Businesses
o Won major smart city real-estate projects, such as
KEC, ITCC, KAFD, Olaya Towers & knowledge city
~380,000
Product road map includes managed DATA services
and advanced services such as cloud computing, and
B2B based services
Source: STC Enterprise Business Unit, CITC
• STC Enterprise is chosen by the top Saudi firms,
as the partner of choice for providing ICT
solutions
16
o 1st operator to launch cloud-based eHealth solution
called Easy Clinic
o Enterprise is now present in more than 55 sales
outlets
Wholesale Strategy: Capacity to New Entrants and International Traffic
15 PoPs
UK, Jordan, Qatar,
Kuwait, Bahrain, UAE,
India, Singapore,
Turkey, Pakistan,
Yemen, Egypt, Sudan,
Algeria, Germany
Regional Pioneer &
Leader
Best Regional
Infrastructure
Peering
agreements with
major internet
players
 Serving all major operators in the region,
70% of the addressable market
 Most extensive core and fixed access network
in KSA
Leading investor in major submarine cable systems
with direct connections to over 90 countries
 Comprehensive cross border network to12
neighboring countries with full diversity

Diverse Portfolio
Most extensive wholesale services portfolio,
operates more than (600 Giga bit) of its international
continental network capacities
 High growth in data and IP services continues
to diversify wholesale income

Data & IP
Submarine
Cable Investment
SEA-ME-WE-3
SEA-ME-WE-4
I-ME-WE
JADI
EIG
SAS-1
SAS2
GBI
FLAG & MENA
Source: STC Wholesale Unit
Capacity
Collocation
Managed
Restoration
Services
Wavelength
Voice
VoIP Conveyance
SS7 Signalling
Service
VoIP Termination
2008
Services
Wholesale
Messaging
Hard Patched
Transit
Submarine
Capacity
VoIP Transit
New
Services
Bandwidth
MPLS
Internet
Transit (I-Node) \ IP VPN
Hosting
Int’l Internet
Connectivity
Data Center
Services
SMS/MMS
Termination
Transmission
Link
Call Transit
Site Sharing
Call Conveyance
Emergency Services
Emergency Services
Traditional Services
Traditional Services
2008
Services
New
Services
Revenue increased by 84% between 2006 and 2012,
whereas the number of international traffic circuits more
than doubled
 Selected 2008 best wholesale provider in the region

STC Best
Wholesale
Carrier 2008
17
International Strategy: Growth through targeted International Investment
International
1
2
Acquisitions of existing
telecom operators in the Middle East,
Africa and Asia (including privatization)
Telecom license acquisitions
in the growing markets of Middle East,
Africa and Asia
Investment
Focus
3
4
Corporate level Business Development
activities to support the core business in
Saudi Arabia
Acquisitions in the
telecom related ICT sector
to support the core business in Saudi
Arabia
Local
Greenfield
Synergy
Drivers
Brownfield
Revenue Increase
Roaming Charges
Opex Savings
Passenger and voice
calls traffic between
the target countries;
Hajj & Umrah, and
tourism
Saudi has large
expat population from
countries where STC
has invested
Integrating operations,
common shared service
set-up; reduced access
charges (int. settlements)
Source: STC Management
18
Capex Savings
From economies of
scale
In addition, our expansion in 10 countries has opened up markets with over 1.6
billion people – significant room for future growth
STC International Footprint
Turkey:
Incumbent player
in market with total
population
of 80 million
Turkey
Kuwait
WWW
Bahrain
Lebanon
Jordan/
Lebanon:
Underpenetr
ated Internet
markets
WWW
Bahrain:
12 Million
Saudi visitors
annually
Jordan
Malaysia
WWW
WWW
KSA:
Biggest
market
in Arab
world
Kuwait:
Highest ARPU
in ME
Saudi Arabia
WWW
India
Indonesia
WWW
South Africa
South Africa:
4th fastest growing
telecom market
India:
Massive market
potential
19
Indonesia:
Largest population of
Muslims, synergy with
Hajj and Umrah pilgrims
Malaysia:
Popular tourist
destination for
Saudis
International Strategy: International Investment Profile
Public Float
General Organization
for Insurance
Saudi Government
16.4%*
70%*
7.0%*
Public Pension
6.6%*
80.1%
STC’s
3.10 USD Bn
Investment
25%
0.9USD Bn
0.23USD Bn
35%
26%
Binariang
2.56 USD Bn
100%
95%
99%
Call Centers Co
37%
Arab Satellite
Communication
Organization
71%
Bahrain
Kuwait
50%
100%
75%
100%
OTAS Oger
Telekomünikasyon
100%
Maxis
Communications
3C
50%
55%
Arab Submarine
Cable Company
100%
OTAS
14.9%
74%
* Source: Tadawul December 2012
65%
81%
20
Operating Company
Holding Company
Sale Communication
60% & Distribution ltd
Company
3C
International Investments
Domestic Investments
Investing in growth opportunities
STC Investment Strategy:
Infrastructure and International Split
STC CAPEX Analysis
(Million SR)
20,000
% of Operating Revenue
Infrastructure
International
30%
Advanced
Network
Solutions
Emerging
Markets
34
Capex
31
15,000
24
Focus
22
10,000
10
15
14
16,278 15,637
13
5,000
40%
20%
3G & 4G
11,353
8,335
7,837 8,788
10%
Timeline
4,389 3,393
0
0%
2005
2006
2007
2008
2009
Finding Synergies and
Economies of Scale to Lower
Costs
2010
2011
2012
Long Term
Evolution
Technology 1-3
years
Profits in 3-5
Years
NGN 3-5 Years
*Consolidated
STC’s investment strategy is laying the foundation for sustainable future growth and profitability
21
Consolidated Performance Highlights
60
• EBITDA for 2012 increased 1.4% to SR 20,3 billion compared to
SR 20 billion in 2011
Revenue from services
(SRb)
55.7
59.4
• Net Income for the 12 months reached SR 7,350m with a
decrease of 4.9% compared to the previous year The decrease
is mainly attributed to two main reasons: First, the group reevaluation of its investments fair value in Cell C, South Africa
and Aircel, India during the fourth quarter, which resulted in
recognizing a one-time, non-recurring and non-cash charge of
SR 641 million provisions from impairment of intangible assets.
Second, due to the change in telecom regulations in India,
Binariang group had to take a deferred taxes charge related to
Aircel operations, STC group share of these deferred taxes was
SR 544 million, and this is also a one-time, non-recurring and
non-cash charge. With the exception of these two transactions,
the net income would have been SR 8,535 million for the year,
an increase of 10.4% compared to 2011
50
40
30
20
13.1 13.9 14.0 15.2 14.7 14.6 15.1 14.9
10
0
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
25
20
Y
Y
2011 2012
EBITDA & Net Income
(SRb)
20.0 20.3
• Consolidated revenue from services for 2012, SR 59,372m with
an increase of 6.7% compared to 2011, The increase in
revenues, is attributed to the growth in Broadband (fixed &
mobile), Business & wholesales services domestically and from
international operations
15
10
5
4.81 5.09
5.2
5.02
5.4
5.4
5.3
4.3
0
• Operating profit at SR 33,6 million was higher by 7.2%
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
Y2011 Y2012
EBITDA
• Cumulative dividends, from 2003 to-date, reached SR36.35 per
share compared to the IPO share price of SR25.5, in 2002
Net Income
• Earnings per share reached SR3.68 for 2012
Note: Data based on consolidated results
22
STC Key Annual Financial Metrics - 2012
Metric
(SRb unless otherwise stated)
Operating Revenue
EBITDA
2011
2012
YoY %
Key Driver
55.7
59.4
6.7
Growth in Broadband (fixed & mobile),
Business & wholesales services domestically
and from international operations
20
20.3
1
Improved efficiency
11.17
11.25
1
Increased of Operating revenue from
broadband, content, wholesales and
businesses
Net Income
7.7
7.35
(4.9)
Re-evaluation of STC investments fair value in
subsidiaries and joint ventures & deferred
taxes charge in Aircel
EPS (SR)
3.86
3.68
(4.7)
Decrease in net income
Dividend Declared (SR)
2.00
2.00
-
47
51
4
Increase in retained earnings
16.4
14.4
(12.2)
Decrease in net income
Operating Income
Total Shareholders’ Equity
ROE %
23
Summary of Consolidated Balance Sheet
SR millions
2011
2012
Cash and equivalents
6,588
5,115
Other Assets *
17.728
25.898
Fixed assets
57,768
58,737
Intangible Assets
29,318
28,162
Total Assets
111,402
117,912
Share Capital
20,000
20,000
Reserves & retained earnings
26,908
31,394
Non- controlling interest **
7,174
7,575
Total equity
54,082
58,969
Total current liabilities
25,263
25,237
Total non current liabilities
32,056
33,706
Total Liabilities
57,319
58,943
Total Liabilities and equity
111,402
117,912
24
* Includes - A/R, prepayments, other current assets, plus other non current assets
** Non- controlling interest; represent minority interest of the subsidiaries
Summary of Consolidated Statement of Income
SR millions
2011
2012
Revenue
55,662
59,372
EBITDA
20,025
20,305
Operating Income
11,171
11,252
Other Income and /Expense, net
(2,683)
(1,971)
7,729
7,350
(414)
(313)
(2,238)
(2,503)
450
366
(481)
478
Net income
Cost of Early Retirement Program
Finance cost
Interest Income/Expense, net
Miscellaneous net
25
Summary of Consolidated – Statement of Cash Flow
SR millions
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Capex
26
2011
2012
16,488
12,106
(8,264)
(9,301)
(7,686)
(4,278)
(7,837)
(8,788)
Segmental performance breakdown as of 31-12-2012 by operation
SR Million
VIVAVIVAGDMH*
Bahrain
Kuwait
Year
KSA
2011
37,479
783
476
2012
40,400
992
2011
78,669
2012
85,073
NTS
OTL
Binariang
1,267
567
11,153
3,937
586
1,832
935
10,447
4,180
1,939
504
1,699
3,637
21,352
19,958
2,470
410
1,688
3,750
22,440
19,587
Operating Revenue
Total assets
51,200
25,600
Operating Revenue
(SRM)
12,800
6,400
2011
3,200
2012
1,600
800
400
200
100
KSA
VIVA- Bahrain
GDMH
VIVA-Kuwait
27
*GDMH - Gulf Digital Media Holding (Integral), a content company based in Dubai
PT Axis
OTL
Binariang
Segmental performance breakdown as of 31-12-2012 by service
SR Million
Year
GSM
PSTN
DATA
Un-allocated
Total
2011
2012
2011
2012
2011
2012
2011
2012
2011
2012
Revenue
37,909
38,013
8,309
8,360
9,388
13,449
56
(450)
55,662
59,372
Interconnect Revenue
3,076
2,875
8,143
9,406
1,284
1,114
(65)
(74)
12,438
13,321
Interconnect expenses
(6,101)
(6,583)
(2,654)
(2,401)
(3,618)
(4,261)
(66)
(76)
(12,438)
(13,321)
Net revenue
34,884
34,305
13,799
15,365
7,053
10,301
(74)
(600)
55,662
59,372
Depreciation & amortization
4,362
4,282
3,650
3,499
644
671
198
600
8,854
9,053
Net income
7,620
3,588
(1,006)
(288)
1,429
4,255
(314)
(205)
7,729
7,350
Total assets
41,477
41,112
35,538
35,351
8,181
9,116
26,206
32,333
111,402
117,912
Total liabilities
20,674
23,627
12,717
13,182
2,083
2,866
21,845
19,268
57,319
58,943
28
STC has a solid balance sheet, with low leverage and strong free cash flow



Standard & Poor's Ratings: A+ Long-Term
S&P has ranked STC as the No.1 telecom operator in
EMEA (Europe, the Middle East & Africa)
Moody's Investor's Services: A1 long term
This gives access to international markets both for its financing needs and also extends
confidence to its stakeholders
29
Recent services launched by STC
Major New Product Launches
International Credit Transfer service for Sawa for 16 countries
Interactive TV services such as “InVision (including advanced services like Youtube)
Domain
Mobile
Home - Broadband
STC Launches 4G Roaming with VIVA Kuwait and Bahrain
Mobile
offers pilgrims a mobile device and “SAWA Visit” card for SR 88
Mobile
Backup link service (for the corporate sector and subscribers to the IP-VPN service)
Enterprise
Audio & Web Conferencing Services
Enterprise
Telemetric solution for reading public facilities' counters, that enables the customer to shift
from the traditional manual way to electronic reading
Enterprise
Loyalty Program
Al Tamayoz VIP Center
STC’s Application on Apple s store (a guide for STC services)
Mobile
Enterprise
Managed Data Center Services (Cloud Computing)
exchanges old mobile phones with new, smart phones
Mobile
Multiple devices; smart phones with packages (iPhone 5 , Samsung – Galaxy note, and
Samsung Galaxy S III)
Mobile
Dual Mode Quick Net Router with 4G SIM for SR 555
Broadband
Vitamin Service (E-learning) & eHealth + Easy - Clinic
internet
Broadband
FTTH & FTTF (up to 200 Mb/s)
30
Country Profile of Current International Investments as of 31.12.2012
Malaysia
Bahrain






Position: 3rd GSM
Activity: GSM license
Market share: N/A
Customers: N/A
Total mkt: 2.2m*
Penetration: 172%
Position : 1st GSM
Activity: GSM, Fixed
Market share:34%*
Customers:12.9
Total mkt:37m*
Penetration:128%*






Kuwait
Position: 3rd GSM
 Activity: GSM Mobile
 Market share: 25%*
 Total Mkt: 5.5m*
 Penetration:158%*
 Customers: N/A
South Africa






India






Position: 6th GSM
Activity: GSM Mobile
Market share: 7%
Customers: 63.3m
Total Mkt: 903m
Penetration:75%
Turkey


Indonesia
Jordan / Lebanon




Position: Incumbent,
Subsequent Player
Activity: ISP
Market share: N/A
Customers: 0.3m






Position: 5th GSM
Activity: GSM mobile
Market share:6%*
Customers:14.6m
Total mkt:284m*
Penetration:118%*
31
Note (*) Data as of 31 Dec. 2012
Position: 3rd GSM
Activity: GSM Mobile
Total mkt:65.2m*
Market share:15%*
Customers:10.5m
Penetration:128%*

Fixed Line
– Position: Incumbent
– Market share:98%*
– Customers:13.5m
ADSL
– Position: Incumbent
– Market share: 90%*
– Customers:6m
Wireless
– Position:3rd GSM
– Mkt share: 20%*
– Customers:13.5m
– Total mkt:66.1m*
– Penetration:91%
Thank you