Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — FY2022 Earnings Presentation
42 slides from Ooredoo Q.p.s.c's earnings presentation, Feb 21, 2023
Slide 1: Ooredoo Group Full year 2022 Results
OOREDOO GROUP Full year 2022 Results 21 February 2023
Slide 2: Disclaimer
Disclaimer ▪ Ooredoo (parent company Ooredoo Q.P.S.C.) and the group of companies which it forms part of (“Ooredoo Group”) cautions investors that certain statements contained in this document state Ooredoo Group management's intentions, hopes, beliefs, expectations, or predictions of the future and
Slide 3: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information Ooredoo Q4 2022 Investor Presentation | | 3
Slide 4: Ooredoo Vision: Enriching People's Digital Lives
Vision Ooredoo Vision: Enriching People’s Digital Lives Strategic Pillars • Merger progress even better than initial expectations IOH review • Financial metrics strong; Revenue Rp 47tn (∼USD 3.1bn) , EBITDA Rp 20tn (∼USD 1.3bn) (EBITDA Margin 42%), and Normalized Net Profit Rp 1,460bn (∼USD 96 mill)
Slide 5: FY22 Integration – Progress Ahead of Schedule
FY22 Integration – Progress Ahead of Schedule Synergies Network Customers In Sep 2021, we promised USD300- With support from our partners, Along with a careful network 400mn of annualized pre-tax network integration has been integration to ensure a maximum synergies expected to be realized in delive
Slide 6: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information || | | 6
Slide 7: Group Results
Overview Results review Operations review Additional information Group Results Key Highlights normalized proforma Full year 2022 Good momentum into the year continued with revenue growth in 2022 Revenue FY 2022 increased Group EBITDA for full year was QAR Net Profit for the period stood Ooredoo Qata
Slide 8: Financial Achievements – Normalized Proforma FY 2022
ORDS – Financial Achievements- Normalized Proforma * - Full Year 2022 YoY Revenue: EBITDA: EBITDA Margin: Capex Intensity: +4% yoy -2% yoy -2ppt QR QR -2ppt 40% 12% 22.7bn 9.1bn Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers +3% +27% - 0.2X - 3% QR QR 1.1x 56mn 6.4bn 2.8bn *Post the IOH merg
Slide 9: Financial Achievements – Reported FY 2022
ORDS – Financial Achievements- Reported Full year 2022 YoY Revenue: EBITDA: EBITDA Margin: Capex Intensity: -24% -28% -3% PPT -4ppt QR QR 22.7bn 9.4bn 41% 12% Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers -19% QR QR - 0.4X -54% 6.6bn 2.4bn 1.1x 56mn Ooredoo Q4 2022 Investor Presentation ||
Slide 10: Financial Achievements – Normalized Proforma Q4 2022
ORDS – Financial Achievements Normalized Proforma* - Q4 2022 YoY Revenue: EBITDA: EBITDA Margin: Capex Intensity: +3% -2% -2ppt -2ppt QR QR 2.3bn 39% 20% 5.8bn Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers +5% +12% - 0.2X -3% QR QR 1.1bn 1.1x 56mn 722mn *Post the IOH merger in Indonesia the
Slide 11: Financial Achievements – Reported Q4 2022
ORDS – Financial Achievements- Reported Q4 2022 YoY Revenue: EBITDA: EBITDA Margin: Capex Intensity: -25% -28% -1ppt -3ppt QR QR 39% 20% 5.8bn 2.3bn Free Cash Flow: Net Profit: Net Debt/EBITDA: Customers -17% -61% - 0.4X -54% QR QR 1.1bn 312mn 1.1x 56mn Ooredoo Q4 2022 Investor Presentation | | 11
Slide 12: Proforma Revenue
Proforma Revenue* Group Revenue FY-22 (QAR mn) Q4-22 YoY Change , Amount (QAR mn) and % - Quarterly 29,900 +3% +4% + 191 6 3 21,906 22,698 59 46 5% 3% -2% -2% 184 7% (1) -11% 5,845 7% (10) (12) -14% (29) 9% (55) 5,653 Q4-21 Qatar Iraq Kuwait Maldives Palestine Others Algeria Oman Myanmar Tunisia Gro
Slide 13: Proforma EBITDA
Proforma EBITDA* Group EBITDA FY -22 (QAR mn) % Q4- 22 YoY Change Amount (QAR mn) and % - Quarterly EBITDA Margin 13,050 -2% -2% -44 12 4 9,274 9,129 38 24% 1% -2% -9% 39 21% -5% 45 34% (1) (16) -35% (17) 2,317 5% (47) -523% 2,273 44% 42% (102) 40% Q4-21 Qatar Tunisia Kuwait Maldives Iraq Palestine
Slide 14: Reported & Normalized Net Profit FY 2022
Reported & Normalized- Net Profit FY - 2022 FY - 22 Net Profit Attributable to Ooredoo shareholders (QARmn) +27% 2,821 2,360 2,223 47 FY 2021 Reported FY 2022 Reported FY 2021 Normalized FY 2022 Normalized Proforma Proforma • Normalized Proforma Net Profit excluding FX impact and major one offs (Ind
Slide 15: Net Profit FY 2022 Reported to Normalized
Net Profit FY– 2022 Reported to Normalized FY - 22 NP Reported to FY - 22 Normalized FY - 21 NP Reported to FY 21 Normalized 194 (245) 2,821 2,360 512 2,347 829 (1,000) 2,223 47 FY -22 FX impact Impairment Data Center FY -22 FY -21 Impairment FX impact Tower FY -21 Reported sale gain Normalized Repo
Slide 16: Reported & Normalized Net Profit Q4 2022
Reported & Normalized Net Profit Q4- 2022 Q4-22 Net Profit Attributable to Ooredoo shareholders (QARmn) -61% +12% 806 722 643 312 Q4 2021 Reported Q4 2022 Reported Q4 2021 Normalized Q4 2022 Normalized Proforma Proforma • Normalized Proforma Net Profit increased by 12% yoy reaching QAR 722mn in Q4 2
Slide 17: Net Profit Q4 2022 Reported to Normalized
Net Profit Q4 – 2022 Reported to Normalized Q4 -22 NP Reported to Q4-22 Normalized Q4 -21 NP Reported to Q4-21 Normalized 722 806 7 194 (170) 643 216 312 Q4 -22 FX impact Impairment Q4 -22 Q4 -21 Impairment FX impact Q4 -21 Reported Normalized Reported Normalized Ooredoo Q4 2022 Investor Presentatio
Slide 18: Proforma Capex
Proforma Capex* Group Capex FY - 2022 (QAR mn) & Capex / Revenue % FY - 2022 yoy (Change %) 4,845 MAL 67% ALG 59% -12% PAL 10% 3,084 2,729 QAT -5% OMA -8% TUN -16% 16% 14% KUW -34% 12% IRA -39% MYN -53% FY-21 FY 21 FY-22 FY 2022 Capex Breakdown (FY-22) Proforma Capex lower in 2022 compared to last y
Slide 19: Strong Proforma Free Cash Flow
Strong Proforma Free Cash Flow* (FCF: EBITDA – Capex ) Group FCF FY 22 (QAR mn) Q4- 2022 YoY Change AAmount (QAR mn) and % - quarterly 8,205 +3% +5% +51 59 10 6,189 6,401 64 (1) 79 (35) 120 (57) (83) 1,099 1,048 (105) Q4-21 Iraq Kuwait Tunisia Qatar Palestine Myanmar Maldives Oman Algeria Others** G
Slide 20: Ooredoo Customer Base
Ooredoo Customer Base Total Customers as of year end (mn) YoY Change (000) -3% -1,587 200 190 171 28 19 1,110 442 213 121.4 57,554 55,967 -3% (3,961) 57.6 56.0 Group Iraq Qatar Tunisia Algeria Kuwait Oman Palestine Maldives Myanmar Group Q4 2021 Q4-22 FY-21 FY-21 FY-22 excluding Indonesia Customers
Slide 21: 2022 Actual & 2023 Guidance
Group Results 2022 Actual & 2023 Guidance Group Financials % Change 2023 Guidance 2022 (QAR bn) 2022 / 2021* over 2022 Revenue 22.7 +4% flat EBITDA * 9.1 -2% - 40% EBITDA margin: EBITDA %* ~ low 40%s CAPEX 2.7 -12% approx. 3 • 2022 actual revenue exceeded the guidance (-2% to +2%) • 2022 EBITDA rema
Slide 22: Debt Profile
Debt Profile Fixed vs Floating rate debt portion (QAR m*) Strong investment grade rating Repayment Schedule (QAR m*) • Net debt/ EBITDA ratio of 1.1x, below current 3,580 board guidance of 1.5x to 2.5x 1,903 11% • Strong liquidity position (combination of Cash and RCFs ) 13,536 • Balanced and long m
Slide 23: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information 21 February 2023 Ooredoo Q4 2022 Investor Presentation || | 23 |
Slide 24: Qatar
Qatar Quarterly Trend (QAR mn) Revenue Revenue EBITDA EBITDA Margin EBITDA +9% +184 YTD - 22 YTD - 22 2,222 7,960 3,829 2,038 1,899 1,952 1,887 7% -1% yoy yoy 52% 50% 46% 47% 44% QAR mn QAR mn 943 977 953 911 988 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed 3,839 3,423 FY 2022 +3% +12% • Revenue grew
Slide 25: Oman
Oman Quarterly Trend (OMR mn) Revenue Revenue EBITDA EBITDA Margin EBITDA -2% -1 YTD - 22 YTD - 22 68 62 65 64 2,443 1,275 61 5% 5% yoy yoy 52% 52% 54% 52% 51% QAR mn QAR mn 33 34 35 35 31 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 144 67 -5% +1% • Revenue grew by 5% yoy driven by growth in
Slide 26: Kuwait
Kuwait Quarterly Trend (KD mn) Revenue Revenue EBITDA EBITDA Margin EBITDA +9% +5 YTD - 22 YTD - 22 58 59 60 60 2,809 850 55 11% 15% yoy yoy 29% 31% 30% 31% 27% QAR mn QAR mn 16 19 18 18 15 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 • Ooredoo the first telecom company in Kuwait to obtain a 1
Slide 27: Iraq
Iraq Quarterly Trend (IQD bn) Revenue Revenue EBITDA EBITDA Margin EBITDA +8% +29 YTD - 22 YTD - 22 392 395 3,674 1,580 366 358 350 0% -6% yoy yoy 44% 43% 43% 44% 41% QAR mn QAR mn 160 155 151 174 163 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 342,033 1,412 --- - • Stable revenue in 2022 Yoy
Slide 28: Algeria
Algeria Quarterly Trend (DZD bn) Revenue Revenue EBITDA EBITDA Margin EBITDA -1% YTD - 22 YTD - 22 0 2,222 787 23 22 21 21 22 -2% 0% yoy yoy QAR mn QAR mn 38% 40% 35% 31% 29% 8 8 9 7 6 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 82,991 - • In local currency, revenue increased by 3% yoy, drive
Slide 29: Tunisia
Tunisia Quarterly Trend (TND mn) Revenue Revenue EBITDA EBITDA Margin EBITDA -3% YTD - 22 YTD - 22 -8 332 1,468 651 315 303 303 307 -9% 4% yoy yoy QAR mn QAR mn 43% 44% 46% 44% 28% 130 135 152 135 90 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 969 56 • In local currency, revenue increased by
Slide 30: Myanmar
Myanmar Quarterly Trend (MMK bn) Revenue Revenue EBITDA EBITDA Margin EBITDA +3% +5 YTD - 22 YTD - 22 134 133 138 138 138 1,037 404 -3% 7% yoy yoy 49% 44% QAR mn QAR mn 39% 36% 36% 66 59 54 49 49 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 • Network Of Champions campaign which leveraged the R
Slide 31: Maldives
Maldives Quarterly Trend (MVR mn) Revenue EBITDA EBITDA Margin Revenue EBITDA +5% +26 YTD - 22 YTD - 22 244 487 500 454 475 466 471 8% 17% yoy yoy 55% 55% 53% 52% QAR mn QAR mn 44% 267 257 249 260 209 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed 1,141 444 FY 2022 +8% +4% • Revenue increased by 8% yoy
Slide 32: Palestine
Palestine Quarterly Trend (USD mn) Revenue Revenue EBITDA EBITDA Margin EBITDA +3% YTD - 22 YTD - 22 +1 421 155 30 29 29 28 3% 4% 27 yoy yoy QAR mn QAR mn 37% 38% 37% 37% 35% 10 11 11 11 10 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Mobile Fixed FY 2022 - 102 -1% • Record Revenue in 2022, up by 3% year on year d
Slide 33: MEIRA Awards and Upcoming Conferences
MEIRA Awards and Upcoming Conferences (tbc) MEIRA Arqaam Capital 17th Annual EFG BofA Securities Investor Relations Awards 2022 MENA Investors Hermes 2023 EM Debt& Conference 2023 1:1 Conference Equity Conference Thank you for your votes! 28 Feb – 1 Mar 2023 6 – 9 Mar 2023 31 May – 2 Jun 2023 “Best
Slide 34: Q&A
Q&A | |
Slide 35: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional info 21 February 2023 || | 35 |
Slide 36: KPIs technology
KPIs technology 4G FDD Sites as % of total 4G Population 5G Population 4G Contribution in total Country Total Sites Total Data Volume GB Data Volume Grow % towers Coverage % coverage % traffic % ALGERIA 6,377 82.58% 75.60% n/a 977,538,076 79.69% 29.44% IRAQ 7,440 98.74% 96.57% n/a 405,718,053.8 83.2
Slide 37: KPIs Commercial – 2022
KPIs Commercial – 2022 Country5 Churn Churn NPS Data users MyOoredoo Digital RMS (*) Number of Post paid as Mobile Fixed (‘000) App users recharge complaints % of total (‘000) per 1000 subs subs Algeria 3% - 29 7,459 43 95% - 1 9% Iraq 7% - 35 8,444 2,326 30% 56% 1 1% Kuwait 4% - 33 2,041 1,308 45%
Slide 38: Dividend policy
Overview Results review Operations review Additional information Dividend policy • The Ooredoo Board has approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40% to 60% of normalized earnings • Board proposed a cash dividend of QAR 0.43
Slide 39: Blended ARPU
Blended ARPU Overview Results review Operations review Additional information Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 110 108 108 108 43.9 43.2 103 42.2 41.3 68 67.8 69.9 67.9 22.7 22.7 23 66.3 19.2 19.3 18.8 37.9 21.6 21.3 17.2 16.1 Kuwait (QAR) Tunisia (QAR) Algeria (QAR)
Slide 40: OPCOs Licence General Information
Overview Results review Operations review Additional information OPCOs Licence General Information Fixed Licence Mobile Licence Country Issuance Date Expiry Date Issuance Date Expiry Date Qatar 7 October 2007 6 October 2032 7 October 2007 6 October 2027 13 October 1997 Kuwait -- -- Indefinite Emiri
Slide 41: Statutory Corporate Tax Rates
Overview Results review Operations review Additional information Statutory Corporate Tax Rates Statutory Statutory Losses LossesC/Fwd C/Fwd Markets Markets Notes Tax TaxRate Rate Allowed Allowed Algeria 26% 4 years The Tax Rate is 22% for tax year 2022 onwards Indonesia 22% 5 years Iraq 15% 5 years
Slide 42: Thank You
THANK YOU FIFAWORLD CUP Qat_ar2022 OFFICIAL MIDDLE EAST & AFRICA TELECOMMUNICATIONS OPERATOR