Turkcell`s - Erste Securities İstanbul

TURKCELL
MARCH 2012
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.
This presentation includes business and market information derived
from public sources and our own estimates that we believe is
indicative of trends in our business and markets, but that has not
necessarily been prepared under our generally applied accounting
standards and has been subject to adjustments, and thus should
not be relied upon as conclusive.
Please note that all financial data are consolidated whereas nonfinancial data are unconsolidated unless otherwise specified.
TURKCELL GROUP: REGIONAL LEADER
9 countries
64.8 million subscribers
Leadership in the region
Turkcell Group: Subscribers in FY11 (million)
Turkcell Europe
Northern Cyprus
Moldova
Belarus
Georgia
Azerbaijan
Ukraine
Kazakhstan
Turkcell Turkey
3
0.2
0.4
1.1
1.7
2.1
4.2
4.4 million net
additions in FY11
Turkcell Group: Revenue breakdown (%)
11%
13%
10%
14%
11%
18%
14%
76%
75%
71%
65%
2009
2010
2011
2008
9.7
10.8
34.5
(*): Revenues from Fintur (operations in Kazakhstan, Azerbaijan, Georgia, Moldova) is not included under subsidiaries.
The contribution of Fintur is recorded under share of profit of associates below EBITDA line.
21%
Subsidiaries*
Turkcell Turkey Mobile internet& services
Turkcell Turkey voice & others
TURKCELL GROUP: FINANCIAL HIGHLIGHTS
CONSOLIDATED FINANCIAL RESULTS
TRY million
Q411
YoY (%)
2010
2011
YoY (%)
Revenue
2,446
11.9%
9,004
9,370
4.1%
EBITDA
695
7.0%
2,948
2,913
(1.2%)
28.4%
(1.3pp)
32.7%
31.1%
(1.6pp)
332
(9.9%)
1,764
1,178
(33.2%)
1.8209
23.7%
1.5050
1.6698
11.0%
EBITDA Margin
Net Income
Avg. TRY / US$ rate
•
Revenue and EBITDA in line with FY11 guidance through accelerated quarterly performance
•
Strongest revenue growth of the year at 12% in Q411 with a 7% rise in EBITDA
-
•
Net income impacted by non-cash items, mainly due to devaluation in Belarus
-
4
EBITDA margin declined, mainly due to investments in our brand and channel
Excluding one off items below the EBITDA line, net income would have been TRY1.9 billion
(*): TRY figures in this slide are based on IFRS TRY figures.
EBITDA is a non-GAAP financial measure.
TURKCELL GROUP : ACCELERATING GROWTH IN KEY BUSINESSES
TURKCELL TURKEY: VOICE*
Revenue growth YoY
-0.2%
1.2%
TURKCELL GROUP
-5.2%
Revenue growth YoY
-13.3%
11.9%
TURKCELL TURKEY: MOBILE INTERNET & SERVICES
24.1%
8.6%
25.8%
18.9%
1.7%
10.5%
SUBSIDIARIES
39.8%
20.0%
Q111
5
48.9%
-5.8%
18.8%
Q111
Q211
Q311
Q411
*Voice revenues include outgoing, incoming, roaming and other revenues.
Q211
Q311
Q411
TURKCELL: LEADER IN THE TURKISH TELECOM MARKET
Coverage & Quality Perception
Leader Perception
Qualified Customer Services
Response to question: ‘Who has the
best network?’
Response to question: ‘Who is
leader in terms of leadership?
Response to question: ‘Who has the
Best Qualified Customer Services?
73
16
72
19
70
20
74
18
79
16
73
19
70
21
70
20
73
19
77
61
63
62
64
63
24
24
24
24
24
17
16
10
9
10
8
5
Dec.10 Mar.11 Jun.11 Sep.11 Dec.11
6
Turkcell
Competitor B
8
9
10
8
13
14
12
13
6
Dec.10 Mar.11 Jun.11 Sep.11 Dec.11
Dec.10 Mar.11 Jun.11 Sep.11 Dec.11
Competitor A
Source: Research Method
TURKCELL TURKEY : SUSTAINED LEADERSHIP WITH OUR CUSTOMER FOCUS
MARKET SHARES1
2011 PROFITABILITY
•
Competitors’ focus on market share
continued
•
Turkcell remained by far the leader
31%
20%
54%
53%
53%
53%
27%
28%
28%
28%
14%* 12%
-8%*
-14%
19%
19%
19%
20%
EBITDA Margin %
Turkcell Turkey
Q111
7
Q211
Operator A
Q311
1 Source: Company announcements and ICTA reports
2Source: Company announcements and ICTA reports *
Operator B
Turkcell Turkey
FCF Margin %
Operator A
Q411
The information on Operator A’s EBITDA and FCF margins for FY11 are not available. Shown
figures for Operator A is for the 9 months of 2011 and calculated based on company and ICTA announcements and market estimates
Operator B
TURKCELL TURKEY: MOMENTUM CONTINUED
SUBSCRIBERS (million)
2010
2011
TOTAL
33.5
34.5
POSTPAID
10.1
11.7
PREPAID
23.3
22.9
ARPU (TRY)
ARPU increase through upsell & cross-sell efforts
& contracted offers
19.8
19.5
18.5
NET ADDITIONS (000)
1,542
734
1,063
-1,902
FY10
Total
8
FY11
Postpaid
Fy09
FY10
FY11
TURKCELL TURKEY : LEADING THE SMARTPHONE MARKET
TURKCELL T SERIES
«Widening access to mobile
internet at affordable prices»
SMARTPHONE VS.
NON-SMARTPHONE
GROWING SMARTPHONE
BASE
Internet User Data
ARPU)
T11
~20%
TRY389
TRY 14.90X24 months
12%
5X
«NFC enabled»
3.8
6%
T20
3%
TRY455
TRY 19.90X24 months
«NFC enabled»
«T20: The best selling Android phone in
the market in FY11*»
9
*Source: Gfk
2.0
0.9
Nonsmartphone
Smartphone
FY09
FY10
FY11
FY12Exp.
Smartphone penetration in network
Number of smartphones (million)
TURKCELL TURKEY: SOLID INCREASE IN MOBILE INTERNET REVENUES
GROWING MOBILE INTERNET REVENUES
WHILE CONTROLLING DATA TRAFFIC INCREASE
60%
74%
YoY
724
YoY
INCREASING MOBILE INTERNET &
SERVICES* REVENUES
Revenue (TRY million)
as a % of Turkcell Turkey sales
454
20%
YoY
261
1,944
1,619
FY09
FY10
FY11
1,281
Mobile internet revenue (TRY million)
13x
20.3%
2.4x
5x
24.2%
16.0%
5.5x
x
FY09
FY10
FY11
Mobile Data Traffic
10 *Includes revenues from SMS/MMS, mobile internet and other mobile services
FY09
FY10
FY11
TURKCELL TURKEY: HIGH QUALITY NETWORK
3G: 88% COVERAGE REACHED
29,500
Total base
stations
3G
population
coverage
3G
10,500 88%
•
23,100
8,200
2G
19,000
TURKCELL TURKEY
21,500
81%
5,700 79% • 2012 target:
Doubling data speed: 84 Mbps
14,900
15,800
Operator A
Operator B
#1 country in the world in
terms of mobile network
coverage
43.2 Mbps speed thru dual
carrier: 1st in Turkey, 13th globally
•
The only Turkish operator that can
reach 168 Mbps thru A-type
license
Turkcell ranked first among 53
countries for 3G data download
speed
Source: For coverage and number of base station figures our latest estimations, market estimates, operators’ and ICTA announcements and some
11 media information have been utilised. Please also note that 3G exchanges: Radio Network Controllers
TURKCELL SUPERONLINE: STRATEGIC INVESTMENTS IN FIBER
: The first and only operator in Turkey providing
1000 Mbps speed
Download duration of 1GB video file
Turkey Avg
internet
2,7
speed
Mbps
51 min
100
20
50
Mbps
Mbps
Mbps
Mbps
3 min
1.5 min
8 sec
7 min
FIBER OPTIC NETWORK REACHED 30,000KM
İstanbul
Samsun
Kocaeli
Bursa
Ankara
İzmir
Antalya
Adana
Mersin
12
1000
G.antep
TURKCELL SUPERONLINE: REACHED FULL YEAR EBIT POSITIVE
STRONG GROWTH IN ALL SEGMENTS
SUPERONLINE’S SHARE IN
TRANSMISSION COSTS
Revenue breakdown (FY11)
93%
24%
YoY
YoY
Residential
24%
33%
37%
Mar.10 Jun.10
Wholesale
52%
Corporate
24%
46%
44%
51%
Sep.10 Dec.10 Mar.11 Jun.11
Transmission costs
FY11
• EBIT Positive in FY11
YoY
17.7%
9.8%
•
30,000 km fiber network
•
Homepass reached 1 million
460
↑37%
335
revenue growth
FY10
13
67%
Sep.11 Dec.11
Share of Superonline in Transmission Costs
• EBITDA increased by 148% YoY
29%
63%
58%
FY11
UKRAINE: TURNAROUND STRATEGY IS ON TRACK
REVENUE & EBITDA (US$m)
Revenue
EBITDA
EBITDA margin (%)
104.2
79.1
85.9
93.2
92.8
83.0
89.5
22.7%
4.6%
7.9%
2.7%
7.4%
84.9
81.8
25.3%
20.6%
88.3
78.2
24.0%
26.8% 25.8% 25.4%
7.0%
20.3
21.5
16.9
98.1
18.8
23.7
26.8
24.9
5.8
6.9
7.4
3.6 2.3
Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411
Revenue
EBITDA
EBITDA Margin
14
351.1
20.2
5.7%
339.3
64.5
19.0%
368.8
94.2
25.5%
TURKCELL GROUP: 2012 OUTLOOK
MAJOR
FOCUS AREAS
1
2
3
Belarus
Ukraine
Kazakhistan
Moldova
Georgia
Turkey
Azerbaijan
TRNC
15 *Operational Capex
4
2012
GUIDANCE
(Consolidated, TRY million)
Core mobile
business
Mobile internet &
Mobile services
Fiber
broadband
Contribution of
subsidiaries
Revenue
~ 9,900 - 10,100
EBITDA
~ 3,000 - 3,200
CAPEX*-toSales
~ 17%
NEW WORLD
«Dynamics have been changing : MOBILITY is the future»
16
TURKEY: HIGH GROWTH POTENTIAL
Young and dynamic
population
Younger than 30
years old
50%
Between 30 - 50
High demand for Mobile
Internet
Mobile
internet as %
revenues
26%
18%
10%
2009 2010 2011
Turkish Market
5%
8%
Turkish
Market
Penetration
27%
30%
29%
Over 50
years old
20%
Smartphones
% in total
handset sales
Growth potential in
Fixed Broadband
EU avg
Population is retrieved from Turkish statistical institution
17 Mobile internet revenues of Turkish market is based on ICTA report and EU avg is based on ML Global Wireless
Smartphones shares are based on GFK report & Fixed broadband penetration is based on ICTA report
EU avg
TURKCELL: STRONG POSITIONING IN THE NEW TELECOM WORLD
TURKCELL: 2012 & beyond
Voice & Internet
Device &
applications:
•Mobile voice
•Messaging
•Mobile broadband
•Fixed broadband
•Smartphones
•Tablets
•M2M
•Mobile Finance
Cloud Computing
New Business
•Travel
•Education
•Digital Media
Mobile
TV
18
Turkcell
Music
M2M SOLUTIONS IN TURKCELL...
M2M potential:
150 mn machines
in Turkey
19
Increasing operational efficiency while decreasing
costs through innovative solutions
Smart Industry Solutions
Smart Vehicles/Telematics
Monitoring and control of machines and
integrated sensors such as moisture,
temperature, light etc
Monitoring of various critical
values in vehicles such as
speed, route-control and
driving routines from a
central server
Smart Buildings
Smart Metering
Monitoring and control of
various appliances such as
security monitors and AC’s
from a distance.
Online monitoring of water,
gas and electricity meters
M-FINANCE & M-COMMERCE PLATFORMS ARE GROWING
M-Finance/ M-Commerce Platforms are Growing in the world : $1.1 trillion in 2014E
Turkcell: Achieving Firsts Together with Business Partners
Mobile Payment: Shopping via SMS with
all partner merchants
• User sends an SMS to the defined short
code with a key word.
• User confirms the payment and
transaction is completed with an
approval SMS.
Mobile Money Transfer: 7/24 safe banking
transactions, compatible with every handset
• User can transfer money by just knowing the recipient's
mobile number, no need for a bank account
• The recipient can withdraw the cash from ATMs with the
password sent by an SMS
20
Mobile Wallet: NFC Based, multi functional
mobile wallet service
• User downloads the plastic card
information on the SIM
• User uses mobile phone for contactless
payment
TURKEY IN THE NEW WORLD
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
APPENDIX
TURKISH TELECOM MARKET
TURKEY: TELECOMMUNICATIONS MARKET
88%
92%
52.7
62.0
2006
2007
87%
7.1
85%
84%
87%
88%
89%
65.8
19.4
21.4
24.8
28.6
31.4
55.7
42.4
40.3
39.0
36.2
33.9
2008
2009
2010
Q111
Q211
Q311
Q411
75%
MOBILE
SECTOR
3G Subscribers (mn)
25.8%
FIXED
SECTOR
18.8
2006
25.8%
24.5%
2G Subscribers (mn)
22.8%
22.3%
21.6%
21.4%
21.0%
20.6%
18.2
17.5
16.5
16.2
16.0
15.8
15.5
15.2
2007
2008
2009
2010
Q111
Q211
Q311
Q411
Subscribers (mn)
FIXED
BROADBAND
SECTOR
Source: ICTA Q3 2011 market report.
Penetration (%)
9.0%
9.8%
9.8%
9.9%
10.2%
10.4%
7.0%
8.0%
2.9
4.6
6
6.4
7.2
7
7.3
7.3
7.4
2006
2007
2008
2009
2010
Q111
Q211
Q311
Q411
4.0%
Fiber Subscribers (mn)
25
Penetration (%)
ADSL & Other Subscribers (mn)
Penetration (%)
TURKEY: TRAFFIC MIGRATES FROM FIXED TO MOBILE
REVENUE COMPOSITION (%)
TRAFFIC COMPOSITION (%)
82%
61% 62% 63%
44%
72%
67% 69% 69%
65% 67%
56%
63%
56%
39%
38% 37%
44%
35% 33% 33%
31% 31%
37%
28%
18%
FY06 FY07 FY08 FY09 FY10 Q111 Q211 Q311 Q411
Fixed
26
86% 86% 87% 88% 88%
Source: ICTA Q3 2011
Mobile
14% 14% 13% 12% 12%
FY06 FY07 FY08 FY09 FY10 Q111 Q211 Q311 Q411
Fixed
Mobile
TURKEY: MAJOR REGULATORY DECISIONS
MAJOR REGULATORY DEVELOPMENTS
MTR cut by 3%
Eur
cents
MTR cut by 33%
MNP launch
MTR cut by 28%
Price cap cut by 20%
MTR cut by 52%
Price cap cut by 38%
9.7
Price cap up by 4%
Int’l SMS rate up by 4%
SMS rate cut by 48%
Int’l MTR deregulated
› Asymmetry in
MTRs with Avea
(18%) and
Vodafone (3%)
8.3
6.7
6.2
5.6
4.8
Turkcell
MTR is
4 times
1.1below EU
4.2
3.0
1.4
1.09
2007
1.2
27
1.0
0.79
0.52
2008
2009
MTR -Turkcell
1.4
1.2
EU-MTR
EU MTR data is from EU progress report except 2010. 2010 EU MTR data is from ERG snap shot as of Jan2011
FTR data is as of October 2009, no data available for 2010 FTRs
The figures converted by 2.5 eur/ tl rate
0.7
0.52
0.52
2010
FTR-TT
2011
EU-FTR
FINANCIAL OVERVIEW
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 Q3 2011 result announcement press release.
TURKCELL GROUP: REVENUE (TRY million)
FY11 vs. FY10
YoY ↑ 4.1%
Q411 vs. Q410
YoY ↑11.9%
Δ in Turkcell Turkey:
∑ TRY 127 million
Δ in Turkcell Turkey:
∑ TRY 39 million
(286)
18
109
133
2,446
2,186
Revenue
Q410
29
325
327
Δ in Voice& Δ in Mobile
Δ in
others
internet& Subsidiaries
services
Revenue
Q411
9,370
9,004
Revenue
FY10
Δ in Voice& Δ in Mobile
Δ in
others
internet& Subsidiaries
services
Revenue
FY11
TURKCELL GROUP: EBITDA MARGIN (%)
FY11 vs. FY10
YoY ↓(1.6pp)
Q411 vs. Q410
YoY↓ (1.3pp)
(0.5pp) Treasury share
impact related to frequency
usage fee charged to
prepaid subscribers
(4.5pp)
2.2pp
(3.1pp)
1.0pp
29.7%
28.4% 28.9%
EBITDA Δ in Direct Δ in
Δ in
EBITDA EBITDA
Q410
cost
G&A exp. S&M exp. Q411 Q411 excl.
of
Treasury
revenues *
share
impact
30 (*): Depreciation and amortization is not included.
1.4pp
0.1pp
32.7%
EBITDA
FY10
31.1%
Δ in Direct
Δ in
cost
G&A exp.
*
of revenues
Δ in
S&M exp.
EBITDA
FY11
TURKCELL GROUP: NET INCOME (TRY million)
Net income impacts (million TRY)
Inflation accounting impact in BeST*
Depreciation impact
Monetary gains / (losses)
Tax impact
Translation loss in BeST
Impairment in BeST
Other impairment charges
Other provisions
Q411 vs. Q410: YoY ↓ (9.9%)
Δ in EBITDA:46
Δ in D&A exp.:(299)
437
368
(60)
Net income
Q410
(253)
274
Δ in EBIT
Δ in Monetary
Gain/Loss
31 (*): Our subsidiary in Belarus.
Q411
45
(240)
274
11
(95)
(16)
(34)
(5)
14
2
(13)
TRY 105
million
Δ in interest inc/exp.:56
Δ in Translation gain/loss.: (116)
Δ in net finance Δ in Equity in Net
inc./exp.
Inc./Loss
Δ in Other
332
Δ in Taxation
Net income
Q411
Net income
Q411 excluding
one-offs
TURKCELL GROUP: NET INCOME (TRY million)
Net income impacts (million TRY)
Inflation accounting impact in BeST*
Depreciation impact
Monetary gains / (losses)
Tax impact
Translation loss in BeST
Impairment in BeST
Other impairment charges
Other provisions
FY11 vs. FY10: YoY ↓ (33.2%)
Δ in EBITDA:(35)
Δ in D&A exp.:(453)
1,764
(489)
274
(247)
1,913
42
(166)
0
Δ in EBIT
32 (*): Our subsidiary in Belarus.
Δ in Monetary Δ in net finance Δ in Equity in
Gain/Loss
inc./exp.
Net Inc./Loss
1,178
TRY 735
million
Δ in interest inc./exp.:119
Δ in Translation gain/loss.: (366)
Net income
FY10
FY11
45
(240)
274
11
(438)
(204)
(40)
(98)
Δ in Other
Δ in Taxation
Net income
FY11
Net income
FY11 excluding
one-offs
TURKCELL GROUP: BALANCE SHEET HIGHLIGHTS & CAPEX
Consolidated (TRY million)
Q410
Q311
Q411
Total Cash
5,118
6,164
6,334
Cash & Cash Equivalents
5,105
6,163
4,738
Financial Investments
12.7
0.8
1,596
Total Assets
15,142
16,646
17,187
Total Debt
2,841
3,451
3,529
Net Cash
2,277
2,713
2,805
Total Equity
9,637
10,525
10,826
CAPEX SPLIT (TRY million)
FY11
Total: TRY 1,6
billion
894
393
227
Turkcell Turkey
33
Turkcell Superonline
International
123
Other
TRY 1,596 million time
deposits with a
maturity longer than 3
months is recorded as
Financial Investment
TURKEY GROUP: AVERAGE CAPEX/SALES RATIO
35%
including 3G
license fee
(TRY0.8bn)
Turkcell Average: 14.1%
Emerging Europe average: 18.2%
30%
Between 2001 and 2011
25%
20%
15%
10%
5%
0%
2001
2002
2003
2004
2005
Turkcell
Source: Global wireless matrix and company announcements
34
2006
2007
Emerging Europe
2008
2009
2010
2011
DIVIDEND DISTRIBUTION
CASH DIVIDENDS
CASH DIVIDENDS PER SHARE
1,329
0.604
1,098
0.499
859
11878
250182
567
509
411
342
648
502
713
850
574
0.391
0.236
2003 2004 2005 2006 2007 2008 2009 2010
TRY (millions)
USD (millions)
DIVIDEND YIELD
0.275 0.258 0.295
0.170
2003 2004 2005 2006 2007 2008 2009 2010
DIVIDEND PAYOUT RATIO
75%
5.21%
65%
4.08%
2.47%
2.87%
2.69%
2005
2006
3.08%
50%
50%
50%
50%
50%
50%
1.77%
2003
35
2004
2007
2008
2009
2003 2004 2005 2006 2007 2008 2009 2010
Please note that the Board of Directors’ recommendation to distribute a dividend of 75% from the fiscal year 2010
profits was not approved in the EGM dated October 12, 2011.
MACROECONOMICS & INDUSTRY
TURKEY: POSTED A SEQUENTIAL GROWTH IN LAST 10 QUARTERS
GDP GROWTH (%)
8.9%
7.5%
5.0%
4.0%
•
A Hub for the region
•
Booming economy with
considerable size
•
Turkey’s GDP is estimated to
grow by 7.5% YoY in 2011
•
Good relations with
neighboring countries
0.7%
-4.7%
2008
2009
Source: Government estimates
37
2010
2011E
2012E
2013E
TURKEY: BOOMING ECONOMY WITH CONSIDERABLE SIZE
AMONG THE BIGGEST EUROPEAN ECONOMIES
2.9
2.2
DE
UK
2.1
FR
1.8
IT
1.4
ES
Considerable economy size
1.0
TR
0.7
0.7
PL
NL
0.4
0.4
BE
SE
•
6th largest economy in
Europe
GDP based on purchasing power parity, trillion US$,
Source: IMF 2010 data
CONSUMER CONFIDENCE INDEX %
85.3
81.9
84.7
88.0
90.4 91.0
93.4
96.4
93.7 92.0
78.8
74.8
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q411
Source: Turkstat
38
Consumer Confidence
improved in 2011
•
CCI of Turkey has been
above the EU average
since September 2010
TELECOMMUNICATIONS SECTOR: GROWTH POTENTIAL
SHARE OF POSTPAID IN TOTAL
ARPU VS. GDP PER CAPITA ($)
60
Switzerland
50
50%
40%
France
40
30%
ARPU
20%
10%
0%
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Netherlands
Sweden
Belgium
30
Israel UK
Czech
Austria Denmark
Hungary
20
Germany
Turkey
10
China
India
0
0
20,000
40,000
60,000
GDP per Capita
80,000
Europe
ARPU COMPARISON ($)
Upside potential for key performance
indicators
32.3
13.0
Europe
39
Turkcell
EEMEA
12.2
Turkey
•
ARPU: Europe $32.7 vs Turkcell $12.7
•
Post-Paid share: Europe 47% vs Turkcell 31%
TURKCELL TURKEY: HIGHER EFFICIENCY COMPARED TO PEERS
EBITDA MARGIN 2010 (%)
49%
43%
38%
Impact of 15%
treasury share*
in Turkey
34%
10%
Emerging
Markets
Europe
Turkey excl.
Turkcell
Turkcell Turkey Turkcell Turkey
reported
excl. treasury
share*
Source: BofAML Global Wireless Matrix Q111; Data as of 2010
*Under our license agreement, we pay the Turkish Treasury a monthly treasury share (including universal
service fund) equal to 15% of our gross revenue
40
MOBILE CALL TERMINATION RATES
9
8
EU average
4.8 € ¢
Turkcell Call
Termination Rate*
(excluding treasury
share)
1.1€-¢
7
6
5
4
3
2
1.1
1
• Turkcell is being paid the lowest Interconnection Fee in Europe
41
Source BEREC MTR Benchmark snapshot (as of Jan 2011)
Turkcell MTR is calculated based on EUR/ TRY rate of 2.4 as of July 2011
Luxembourg
Estonia
Norway
Italy
Bulgaria
Denmark
Switzerland
Ireland
Croatia
Czech Rep
UK
Romania
Spain
Portugal
Greece
Slovenia
Finland
Poland
Hungary
Belgium
Netherlands
Germany
France
Lithuania
Sweden
Austria
Cyprus
Turkcell
0
HIGH TAXES ON MOBILE SECTOR...
TAX
Special Communication
Tax on voice
Special Communication
Tax on broadband
VAT
MOBILE
FIXED
25%
15%
5%
5%
TURKEY HAS THE WORLD’S
HIGHEST MOBILE SERVICE TAXES
60%
50%
40%
18%
18%
30%
42
0.35%
10%
-
1%
0%
TRY 37.00
-
TRY 14.56
-
TRY 14.56
-
5%
5%
High taxes on mobile sector is an obstacle


Improved macroeconomic conditions in Turkey may
lead a cut in tax rates
A potential reduction on tax rates will expand
mobile sector revenues
China
Nigeria
Thailand
Iran
India
Mexico
South Africa
Kazakhstan
Egypt
Algeria
Azerbaijan
Russia
Romania
Chile
Poland
Pakistan
Kenya
Argentina
Ukraine
New subscription Special
Communication Tax
(at first enrollment)
Wireless license fees
(per acquisition)
Wireless usage fees
(per acquisition)
Special Communication
Tax on broadband
0.35%
20%
Brazil
Communication Tax
1%
Uganda
Contribution Share to
Telecom Authority
15%
Turkey
Treasury Share
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