Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
1
TURKCELLQ4 & FY 2015Feb 18, 2016
Turkcell | Fourth Quarter & Full Year 2015
2
This presentation may contain statements that are forward looking. These statements arebased 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 thispresentation, in our press release, in the Risk Factors section of Turkcell’s most recent Form20-F, or in other reports and filings with the US Securities and Exchange Commission. Weundertake no duty to update or revise any forward looking statements, whether as a resultof new information, future events or otherwise.
Please note that all financial data is consolidated, whereas non-financial data isunconsolidated unless otherwise specified.
NOTICE
Turkcell | Fourth Quarter & Full Year 2015
3
BUSINESS OVERVIEWKaan TerzioğluTurkcell CEO
Turkcell | Fourth Quarter & Full Year 2015
4
Network, marketing & sales
Convergence
Largest spectrum1200 Mbps speed in 4.5G test
4.5G
Globally Relevant ServicesBIP downloaded in 189 countries
Voice & video call
Efficient Balance Sheet3 investment grade ratings
Debt restructuring in subsidiaries
$2.9 billion debt raised
Consumer Finance Company
Settlement with Turk Telekom
International ExpansionAcquired 100% of lifecell in Ukraine
Non-binding offer for FinturGOOD CORPORATE GOVERNANCE & EXECUTION
2015 Recap
Turkcell | Fourth Quarter & Full Year 2015
5
CONSOLIDATEDTRY MILLION1 Q4 2015
GrowthYoY %
Revenue 3,334 7.5%
EBITDA 1,058 15.4%
EBITDA Margin 31.7% 2.1pp
Net Income-Proforma2 671 28.7%
Net Income-IFRS 584 126.5%
FY 2015Growth
YoY %
12,769 6.0%
4,141 10.1%
32.4% 1.2pp
2,590 18.3%
2,068 10.9%
1 TRY figures are based on IFRS TRY figures2 Net Income excluding FX gain/(loss) (inc tax and minority impact), monetary gain (inflation impact), interest Income on time deposit & one off items
YearQuarter
Group Financial Highlights
Record performance both in Q415 & FY 2015, guidance delivered
↑ ↑
Turkcell | Fourth Quarter & Full Year 2015
6
CONSOLIDATEDTRY MILLION1 Q4 2015
GrowthYoY %
Revenue 2,998 10.1%
EBITDA 956 18.0%
EBITDA Margin 31.9% 2.1pp
Net Income-Proforma2 564 26.0%
Net Income-IFRS 518 (11.1%)
FY 2015Growth
YoY %
11,481 9.5%
3,760 13.0%
32.7% 1.0pp
2,256 17.9%
2,484 3.3%
1 TRY figures are based on IFRS TRY figures2 Net Income excluding FX gain/(loss) (including tax and minority impact), monetary gain (inflation impact), interest Income on time deposit & one off itemsNote: Call center revenues were previously included in Turkcell Turkey but are, with effect from the fourth quarter of 2015, now included in “Other subsidiaries
YearQuarter
Turkcell Turkey Financial Highlights
↑ ↑
Record revenue & EBITDA both in Q4 & FY 2015
Turkcell | Fourth Quarter & Full Year 2015
7
Turkcell Turkey: Solid Growth
9.0% 8.9%
10.1% 10.1%
31.1%32.8%
34.9%
31.9%
Q115 Q215 Q315 Q415
Revenue Growth EBITDA Margin
9.4%YoY
3%
% in Turkcell Turkey
CONSUMER
CORPORATE
80%
18%
FY15 Revenue Growth
WHOLESALE
6.5%YoY
10.2%YoY
QUARTER FULL YEAR
5.9%
9.5%
31.7%32.7%
FY14 FY15
Turkcell | Fourth Quarter & Full Year 2015
8 1 Includes Turkcell Satış (retail store in telecommunications) and Turkcell Teknoloji (research and development) and other revenuesTotal may have rounding differences
Data & Services Drive Growth
YoY Growth
Consumer & Corporate
567 606 638727 740
178187 200
213 228
Q414 Q115 Q215 Q315 Q415
Mobile broadband Fixed broadband
30.1%
28.4%
30.6%
940
744
REVENUE BREAKDOWN (FY15) DATA REVENUESTRY MILLION
793 837
968
% of Turkcell Turkey
Data 38.1%31%
Services & Solutions 38.5%6%
Other1 (including
Hardware & Software Sales) 18.5%3%
Messaging 13.5%5%
Voice 2.7%52%
YoY Growth
Turkcell | Fourth Quarter & Full Year 2015
9
Market Share
35.2% 35.6% 35.5%
18.6% 18.9% 20.3%
46.2% 45.5% 44.2%
2013 2014 2015
Revenue Share of Major Players1
1 Share calculation based on operators announcements. Turkcell Turkey’s market share is based on Turkcell Turkey reported revenues and call center revenues.
2.0%
1.7%
0.3%
Change vsFY13 (%)
Turkcell | Fourth Quarter & Full Year 2015
10
54% 46%
4.5 4.2 4.03.7
47% 30%
23%
46%
24%
30%
Best Positioned to Monetize Convergence
#1in Spectrum
(1) Based on operators announcements (2) Company research among Turkcell’s customers (3) IPSOS research Q415
16.6
9.5 8.7
Quality of dealer service
Spectrum distributionat the 4.5G tender
Fiber subscribermarket share1 # of postpaid customers1
#1 in Mobile
#1in Customer Care
#1in Postpaid
Turkcell Vodafone Turk Telekom
#1 in Fiber
Mobile subscribermarket share1
Owned2 Exclusive3
Turkcell | Fourth Quarter & Full Year 2015
11
34.6 34.0
15.2 16.6
44%
49%
Q414 Q415Total PostpaidPostpaid (%)
Strong Subscriber Growth
1,191
1,520
735899
Q414 Q415Total Fiber
60
224
Q414 Q415IPTV
↑1.2mn
↑0.9mn
Not disclosed
↑39K
No IPTV
↑95K
MOBILE (million) FIXED (thousand) TV (thousand)
↑1.4mn ↑164K ↑164K
Smartphone (million)
12.716.1
40%
52%
Q414 Q415Number Penetration
↑15pp
↑14pp
↑12pp
* Other operators’ numbers are based on their announcements
Postpaid Fiber IPTV SP Penetration
Turkcell | Fourth Quarter & Full Year 2015
12
MOBILE
Monetizing Multi-play
41%
45%
14%
Single Play
Double Play
Triple Play
*Breakdown among mobile voice users which excludes subscribers who do not use their line in the last 3 monthsMobile multiplay includes voice, data and strategic services usage
FIBER RESIDENTIAL
28%
50%
23%Single Play
Double Play
Triple Play
Subscriber Breakdown (Q415)* Subscriber Breakdown (Q415)
ARPU (TRY) Q415 YoY Growth
Mobile Blended 25.1 9.1%
Postpaid (excl. M2M) 42.8 2.1%
Prepaid 12.8 10.3%
M2M 3.5 12.9%
ARPU (TRY) Q415 YoY Growth
Fixed Residential 50.3 4.6%
Turkcell | Fourth Quarter & Full Year 2015
13
Focus on Services Continued
INSTANT MESSAGING6.2M download
As of Feb 18
SPORTS1.8M download
As of Feb 18
SMART STORAGE1.7M users
As of Feb 18
TURKCELL MUSIC5.4M download
As of Feb 18
DOWNLOAD (Million) DOWNLOAD (Million) DOWNLOAD (Million)USER (Million)
558342
211165
Q415Q315Q215Q115Q414
TURKCELL TV+600K+ subscribers
As of Feb 18
1.61.1
0.90.6
0.35
Q415
Q315
Q215
Q115
Q414
1.71.3
0.30.5
0.3
Q415
Q315
Q215
Q115
Q414
5.24.1
3.53.0
2.5
Q415
Q315
Q215
Q115
Q414
4.81.9
1.40.50.5
Q415
Q315
Q215
Q115
Q414
SUBSCRIBERS (000)
36% non-Turkcell
Global download: 184K(302K as of Feb 18)
#1 music platform in Turkey
#1 personal cloud in Turkey
Best Sports app to follow favorite team
New generation TV platform
*
Download numbers are cumulativeBIP download numbers include total of BIP 1.0, 2.0 and 3.0* Management reporting on active TV subscription started in Q115.
Turkcell | Fourth Quarter & Full Year 2015
14
Turkcell’s 4.5G to Redefine TV Experience
Launched smart projector «ZTE Spro2», more to come…
Flexible payment plans are available as of Februarythrough Turkcell’s consumer finance company
Turkcell | Fourth Quarter & Full Year 2015
15
193 205235 224
27.5% 27.2% 29.6% 30.2%
Q115 Q215 Q315 Q415Revenue (TRY million*) EBITDA Margin
1,138
856
24.7%28.7%
FY14 FY15
Turkcell International: Improved Profitability
16.5%
UKRAINE
BELARUS
65.9%
% in TurkcellInternational
15.3%
NORTHERN CYPRUS
33.2%
2.2%
7.6%
FY15 RevenueGrowth
(in local currency)
FY15 EBITDA Margin
38.4%
10.5%
13.0%
QUARTER FULL YEAR
UAH/USD: ↓52% in FY15
BYR/USD: ↓57% in FY15
* TRY figures are based on IFRS TRY figures
in UAH
in BYR
in TRY
Turkcell | Fourth Quarter & Full Year 2015
16
Guidance for 2016 Maintained
2015 2016E
REVENUE GROWTH
EBITDA MARGIN
OP. CAPEX / SALES*
Turkey 9.5%Group 6.0%
31%-33%32.4%
20% ~20%
* Excluding license fees
TURKCELL GROUP
Turkey 8-10%Group 8-10%
MIDTERM2016-2018
32%-35%
~17-16%in 2018
Turkey ~10%Group 10-14%
Turkcell | Fourth Quarter & Full Year 2015
17
FINANCIAL OVERVIEWMurat D. ErdenTurkcell CFO
NOTICE:
Please note that all financial data are consolidated whereas non-financial data are unconsolidated unless otherwise specified.
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 Q4 2015 result announcement press release.
Turkcell | Fourth Quarter & Full Year 2015
18
3,103
3,334275
(31) (13)
RevenueQ414
Δ in Turkcell Turkey
Δ in Turkcell International
Δ in Other Subsidiaries
RevenueQ415
7.5%
12,04412,769
1,001 (282) 6
RevenueFY14
Δ in Turkcell Turkey
Δ in Turkcell International
Δ in Other Subsidiaries
RevenueFY15
TRY MILLION
6.0%
FULL YEARQUARTER
Turkcell Group: Revenue
Turkcell | Fourth Quarter & Full Year 2015
19
3,7624,141
726 (357)(63) 73
EBITDAFY14
Δ in Revenues
Δ in Direct cost of
revenues*
Δ in G&Aexp.
Δ in S&Mexp.
EBITDAFY15
*Excluding depreciation and amortization
Margin31.2%
Margin32.4%
10.1%
917
1,058231(96)
(19) 25
EBITDAQ414
Δ in Revenues
Δ in Direct cost of
revenues*
Δ in G&Aexp.
Δ in S&Mexp.
EBITDAQ415
TRY MILLIONFULL YEARQUARTER
15.4%Margin29.6%
Margin31.7%
Turkcell Group: EBITDA Development
Turkcell | Fourth Quarter & Full Year 2015
20
1,865 2,068 2,590
350 (373) 160 622
(205) 63 (414)
Net income-IFRS
Δ in EBIT Δ in InterestInc./Exp.
Δ in Equity inNet Inc./Loss
Δ in FXGain/Loss
Δ in MonetaryGain/Loss
Δ in Taxation Δ in Other Inc/Exp.
Net income-IFRS
Net Income-Proforma
258
584 671 155 (239) 105
428
(32) 78
(169) TRY MILLION
QUARTER
FULL YEAR
Turkcell Group: Net Income Development
Net income impacts
(TRY mn)Q415 FY15
FX impact (tax &
minority included)38 (404)
Interest income 16 181
One-off impacts1 (141) (299)
Total (87) (522)
1 One-off impacts include commercial agreement termination, Turk Telekom settlement, 4.5G VAT receivables discount, restructuring costs and other impacts
Turkcell | Fourth Quarter & Full Year 2015
21
TRY MILLION Q4 2014 Q4 2015
Total Cash 9,032 2,919
Total Assets 23,694 26,207
Total Debt 3,698 4,214
Net Cash/(Debt) 5,334 (1,295)
Total Equity 16,711 14,419
SUMMARY BALANCE SHEET NET DEBT/EBITDA
(4,796) (5,334)
1,295
-1.4x -1.4x
0.3x
2013 2014 2015
Net Debt (TRY mn) Net Debt/EBITDA
Turkcell Group: Balance Sheet Highlights
Turkcell | Fourth Quarter & Full Year 2015
22
64%
36%
Turkcell Group: FX Breakdown
CASH DEBT REVENUE OPEX
FX Local Currency
CAPEX
77%
23%4%
96%
Group Turkcell Turkey
~30%
~70% ~90%
~10%
Breakdown as of Q4 2015
Turkcell | Fourth Quarter & Full Year 2015
23
THANK YOUFor further information please e-mail
[email protected] call Turkcell Investor Relations at
(+90 212 313 1888)
Have you updated Turkcell IR app?
For Android For iOS
Turkcell | Fourth Quarter & Full Year 2015
1
APPENDIX
Turkcell | Fourth Quarter & Full Year 2015
2
SUMMARY INCOME STATEMENT AS PER CMB1 FINANCIALS
1 Capital Markets Board of Turkey 2 Depreciation and amortization is included
(TRY MILLION)
Summary income statement Q4 2014 Q4 2015 YoY (%) 2014 2015 YoY (%)
Revenue 3,103 3,335 7% 12,044 12,769 6%
Direct Cost of Revenues2 (1,972) (2,054) 4% (7,381) (7,767) 5%
S&M (518) (493) (5%) (1,975) (1,902) (4%)
G&A (147) (166) 13% (563) (625) 11%
EBITDA 917 1,058 15% 3,762 4,141 10%
EBITDA Margin 29.6% 31.7% 2.1pp 31.2% 32.4% 1.2pp
Net Income 258 585 127% 1,867 2,070 11%
Turkcell | Fourth Quarter & Full Year 2015
3
CONSOLIDATED BALANCE SHEET (IFRS) (TRY MILLION)
Consolidated Balance Sheet (TRY mn) 2014 2015 YoY(%)
Cash & Bank 9,032 2,919 (68%)
CURRENT ASSETS 13,308 8,795 (34%)
TOTAL NON-CURRENT ASSETS 10,386 17,412 68%
TOTAL ASSETS 23,694 26,207 11%
S/T Debt 2,451 729 (70%)
TOTAL CURRENT LIABILITIES 4,991 6,304 26%
L/T Debt 1,248 3,488 179%
TOTAL NON-CURRENT LIABILITIES 1,992 5,484 175%
MINORITY INTEREST (383) 64 (117%)
SHARE CAPITAL 2,200 2,200 -
TOTAL EQUITY 16,711 14,419 (14%)
TOTAL EQUITY AND LIABILITIES 23,694 26,207 (11%)
Turkcell | Fourth Quarter & Full Year 2015
4
2.31 2.54 2.90 3.02 2.35
2.94 2.82 3.18
2012 2013 2014 2015
Average Period-End
CURRENCY TRENDS
USD / TRY EUR / TRY
USD / BYR USD / UAH
1.79 1.91 2.19 2.73
1.78 2.13 2.32 2.91
2012 2013 2014 2015
8,326 8,883 10,255
15,917 8,570 9,510 11,850
18,569
2012 2013 2014 2015
7.99 7.99 11.87
23.18 7.99 7.99 15.77
24.00
2012 2013 2014 2015