Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Investor Day (June 2019)
102 slides from Ooredoo Q.p.s.c's investor day presentation, Jun 19, 2019
Slide 1: Ooredoo Group Capital Markets Day
Ooredoo Group Capital Markets Day
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: Ooredoo Capital Markets Day 2019 Agenda
Ooredoo Capital Markets Day 2019 Agenda 10:00 - 10:05 Introduction - Andreas Goldau & Sara Al Sayed, Ooredoo Group (OG) IR 10:05 - 10:15 Welcome – Waleed Al Sayed, Deputy GCEO (OG) & CEO Ooredoo Qatar 10:15 - 10:35 New Lead strategy and 5G - Mansoor Al Khater, Chief Strategy Officer, OG 10:35 - 10:5
Slide 4: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 5: Ooredoo Group Capital Markets Day - Waleed Al Sayed
Ooredoo Group Capital Markets Day Waleed Al Sayed, CEO Ooredoo Qatar 19 June 2019 | | 5
Slide 6: Key Achievements | A global leader in telecom digitization
Key Achievements | A global leader in telecom digitization 1st #1 >50% World’s 1st 5G - First 5G launch Qatar’s Gigabit Fibre - Highest Data revenues - Data generates worldwide in Qatar penetration / fastest in the World more than 50% of the Group revenues 41st 3G/4G -3p.p. Palestine (West Ban
Slide 7: Key Challenges & Opportunities (1/2)
Key Challenges & Opportunities | (1/2) Selected Key Opportunities World’s first 5G network launched in Qatar 5G Further international 5G roll out based on business cases Digitization drives efficiency and new business opportunities ‘Get Digital!’ - We are executing an ambitious program of di
Slide 8: Key Challenges & Opportunities (2/2)
Key Challenges & Opportunities | (2/2) Selected Key Challenges Weak Currencies evolution – Local currency erosion against USD in some markets, such as Algeria and Tunisia Political / security uncertainty – Security situation has stabilized in Iraq. Algerian Government uncertainty Macroeconomic /
Slide 9: Top Reasons to invest in Ooredoo
Top Reasons to invest in Ooredoo | Diversified portfolio with attractive growth / dividend potential LEADING LOW MARKET TECHNOLOGY LEAN COST UNIFIED FUNDING POSITION IN LEADERSHIP STRUCTURE BRAND COST KEY MARKETS Unique mature Clear digital Flexibility for Driven by: Unified brand and emer
Slide 10: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer ,OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth,
Slide 11: Ooredoo Group Capital Markets Day - Mansoor al Khater
Ooredoo Group Capital Markets Day Mansoor al Khater, GCSO 19 June 2019 | | 11
Slide 12: Ooredoo's journey so far
Ooredoo’s journey so far… 2000 2004 2009 2012 2016 2018 company theme P.M. & Preparation M&A Synergies Performance Management (P.M.) Digitise • Preparation for competition • M&A • Standardisation • Launching Ooredoo brand • Single Vision activity across markets and Strategy • Moving from government
Slide 13: We reviewed all major industry research and industry white papers
We reviewed all major industry research and industry white papers Telco growth slowing Need for efficiency Leverage core Telcos need to digitize | 19 June 2019 | 13
Slide 14: Digitize, to improve performance & value proposition
Industry experts all agree that Telcos need to transform digitally Digitize, to improve performance & value proposition It’s not an option, it is a must! | 19 June 2019 | 14
Slide 15: We benchmarked other leading Telcos
We benchmarked other leading Telcos Operators in one/two mature Groups with fragmented country market(s) operations 1 2 3 4 Local mega operators Local mid-sized Global diverse groups Regional emerging operators groups Archetypes • High ARPU markets >$45 • Low-med ARPU markets $20 - $45 • Originating
Slide 16: There are 3 strategic directions which these archetypes pursue
There are 3 strategic directions which these archetypes pursue – not mutually exclusive “ More telco or restructure “Efficient operating model” “Diversification of top-line” portfolio” Maximizing portfolio returns Expand into adjacent areas Expand or reduce telecoms footprint Expand footprint by mor
Slide 17: We decided on 5 strategic imperatives
After screening these options against our vision and capabilities, we decided on 5 strategic imperatives 1 2 3 4 We must We will continue optimizing the We will continue We will prove benefit through digitize our business opportunistically commercial agreements or business exploring expansion partne
Slide 18: We updated our Ooredoo Group vision
Based on this, we updated our Ooredoo Group vision OLD VISION NEW VISION Enriching people’s lives as a Enriching people’s digital lives leading international communications company | 19 June 2019 | 18
Slide 19: We also extended our Group values to all OpCos
We also extended our Group values to all OpCos Caring Connecting Challenging • Simple & Transparent • Access to your community • Leading change and innovation For our • Respond Quickly • Delivering relevant services • Passion to be the best customers • Show Concern & Respect • Reliable and trustwort
Slide 20: We updated our LEAD strategy for digital and diversification
We updated our LEAD strategy for digital and diversification Market Performance Efficient Extend & Leader Culture Models Leverage • Smarter distribution • Culture transformation • Advanced analytics • Connectivity • Leading data networks • Lean & Agile • Re-engineered cost models • Content partnersh
Slide 21: We also integrated digital into our aspirations
We also integrated digital into our aspirations STRATEGIC VISION STRATEGIC & FINANCIAL AMBITIONS Enriching people’s OOREDOO GROUP 2022 KPI TARGETS digital lives 1 Growth > Market for every OpCo 2 Returns YoY FCF growth 3 ROCE ROCE > WACC in every OpCo Digital Sales 4 X% (short, mid and long term Dig
Slide 22: We updated our LEAD strategy for digital and diversification
We updated our LEAD strategy for digital and diversification Market Performance Efficient Extend & Leader Culture Models Leverage • Smarter distribution • Culture transformation • Advanced analytics • Connectivity • Leading data networks • Lean & Agile • Re-engineered cost models • Content partnersh
Slide 23: M&A not key current focus
M&A not key current focus 3 Geographies Middle East North Africa We will continue to evaluate all M&A Asia Pacific opportunities as they arise | 19 June 2019 | 23
Slide 24: We updated our LEAD strategy for digital and diversification
We updated our LEAD strategy for digital and diversification Market Performance Efficient Extend & Leader Culture Models Leverage • Smarter distribution • Culture transformation • Advanced analytics • Connectivity • Leading data networks • Lean & Agile • Re-engineered cost models • Consumer content
Slide 25: We developed strategic programs to deliver value at the Group level
We developed strategic programs to deliver value at the Group level Market Performance Efficient Leader Culture Models Core Transformation Digital Transformation Organizational Transformation | 19 June 2019 | 25
Slide 26: 5G Strategy Framework
5G Strategy Framework Key themes 1 • 5G Rationale • Strategic options What? Why? Strategy • Global benchmarks 5G strategy External 2 Use Cases • What are the Use Cases? Who? • Global benchmarks positioning and B2C B2B different use cases (B2B2C, T2T, etc.) 3 Technology & Regulatory strategy Deployme
Slide 27: 5G Use Cases
Based on Industry Positioning 2 Use Cases | 3GPP/ITU have defined the Use Cases standard for 5G use cases 100 Mbps 500 10 Gbps everywhere km/h 2 Use Cases | There are 3 main groups of use Each of the 3 use Use Cases Industry Positioning 1 cases have different cases technical eMMB requirements mMTC (
Slide 28: 5G / OpCo
5G /OpCo OpCo 4 OpCo | National vision related to 5G vision 1 OpCo -Qatar 2030 - Myanmar Sustainable Development Plan OpCo | 5G Competitive landscape - Qatar Economic growth, social development, and environmental - targeted infrastructure development Aligned to Country Visions management. 4 Creativi
Slide 29: 5G Implementation so far
5G Implementation so far… | 19 June 2019 | 29
Slide 30: We are fully aligned
We are fully aligned WeMarket Performance have fully aligned: Efficient Extend & Leader Culture Models Leverage - Strategy - Vision • Smarter distribution - Values • Culture transformation • Advanced analytics • Connectivity • Leading data networks • Lean & Agile • Re-engineered cost models • Conten
Slide 31: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth,
Slide 32: Digital Section
Ooredoo Group Capital Markets Day Digital Section Andrew Kvalseth, Commercial officer, OG 19 June 2019
Slide 33: Digital is a key element of our LEAD strategy
Digital is a key element of our LEAD strategy Market Performance Efficient Extend & • Focus on Top-Line Leader Culture Models Leverage Growth • Focus on Efficient Investments • Smarter distribution • Culture transformation • Advanced analytics • Connectivity • Focus on Digital • Leading data network
Slide 34: Our primary focus will be to digitize the core
Our primary focus will be to digitize the core to drive digital sales, marketing, and care FRAME THE DIGITAL OPPORTUNITY DESCRIPTION FURTHER DIGITAL OPPORTUNITIES • Explore selective ventures for attractive digital opportunities providing New core capabilities or new revenue streams ventures DIGITAL
Slide 35: We are digitizing the core to make it easy to find, buy and use
We are digitizing the core to make it easy to find, buy and use our services online DIGITAL MARKETING DIGITAL SALES DIGITAL CARE Executing best-in-class digital By making products available and Creating best in class digital marketing will allow us to: easy to purchase online we can: customer experi
Slide 36: Growth and efficiency opportunities by digitizing our core
We see significant and immediate growth and efficiency opportunities to capture by digitizing our core MARKET STATS DIGITAL MARKETING DIGITAL SALES DIGITAL CARE Global Asia Global NPS Telco NPS Telco 2013 2018 2013 2018 2018 2022F 2018 2022F (digital (average) super stars) % Media Online retail % of
Slide 37: We are executing an ambitious plan to digitize the core
We are executing an ambitious plan to digitize the core AMBITIONS DIGITAL MARKETING DIGITAL SALES DIGITAL CARE 2019 2025 2019 2025 2019 2025 Increase % of digital media spending % SIM sold online Increase number of Monthly Active Users (M) Increase total advertising spending efficiency Reduction in
Slide 38: Examples of making it easy for customers to find, buy, and use services online
Examples of making it easy for our customers to find, buy, and use our services online in the first half of 2019 … DIGITAL MARKETING DIGITAL SALES DIGITAL CARE Successfully Messi campaign • Launch of Ooredoo ANA • Digital care campaign The first fully digital mobile plan in the Combined campaign to
Slide 39: Building New Digital revenue through partnerships
…and building New Digital revenue through partnerships Partnership with VIU and Mizzima TV New Ooredoo Android TV Apple / Google carrier billing Unique value proposition of All digital services through one Ooredoo Google and Apple localized premium Asian set-top box intended to be the carrier billin
Slide 40: Results don't happen overnight, success requires hard work and focus
Results don’t happen overnight, success requires hard work and focus Relentless focus on growing Maximize returns, …day by day in our markets, our digital customers and significantly ahead of the playing the long game capabilities… competition Our long-term focus on digital transformation will enabl
Slide 41: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 42: Healthy financial metrics, positioning for future opportunities
Healthy financial metrics, positioning for future opportunities Healthy Cash Flow • Continued cost • Ongoing Net Debt Improved cash Stable investment grade generation from market optimization lead to reduction builds upstreaming from high credit rating ensures market leading Opcos healthy EBITDA cap
Slide 43: Healthy margins maintained in challenging markets
Healthy margins maintained in challenging markets Revenues EBITDA and EBITDA margin Net profit attributable to Ooredoo (in QAR million) (% of Revenue ) Shareholders (in QAR million) -11% - 8% 13,379 13,640 12,202 +4% 32,503 32,64 29,927 2,193 6 - 6% 3,173 3,049 -18% 7,683 1,897 7,192 1,565 -13% 486
Slide 44: IFRS 16: positive EBITDA impact and higher leverage
IFRS 16: positive EBITDA impact and higher leverage IFRS 16 - Accounting standard on leases applied from 1st January 2019 Q1 2019 IFRS 16 Q1 2019 Actuals after Group Financials Pre IFRS 16 impact IFRS 16 EBITDA (QR m) 2,949 +224 3,173 EBITDA margin 41.1% +3% 44.1% Deprn & Amortisation (QR m) -1,934
Slide 45: 2019 Q1 performance – generally in line with guidance
2019 Q1 performance – generally in line with guidance % Change Q1 2019 Full Year Group Financials Q1 2019 2019 / 2018 Guidance over 2018 (QAR bn) Actual Excl. IFRS 16 impact Excl. IFRS 16 impact Revenue 7.2 -6% -3% to 0% EBITDA 3.2 -3% -7% to -4% CAPEX 1.1 17% 5.5bn to 6.5bn • Guidance for 2019 has
Slide 46: Cost Optimization, Efficient Models & Digital Transformation
Cost Optimization, Efficient Models & Digital Transformation : Integral part of Ooredoo’s strategy • In 2017, Global Cost Benchmarking exercise was conducted • QAR 751mn savings achieved in 2018 by various cost saving initiatives across Opcos. 2019 program in progress CAPEX Efficiency Cost Optimizat
Slide 47: 2018 Group Cost Optimization Project QAR 751mn savings
2018 Group Cost Optimization Project QAR 751mn savings Others, 26 Cost of sales, 137 Employee, 117 Marketing, 182 Network, 229 Regulatory, 33 IT, 27 | 19 June 2019 | 47
Slide 48: Free Cash Flow and Capital Expenditure
Free Cash Flow and Capital Expenditure CAPEX (QARm) & CAPEX/Revenue (%) Free Cash Flow (FCF) (QARm) & FCF/Revenue (%) +20% 5,982 +7% 6,167 -20% -24% +17% 4,872 5,129 1,105 4,921 4,541 -9% 1,653 1,511 946 22% 21% 18% 19% 14% 16% 15% 16% 16% 12% FY'16 FY'17 FY'18 Q1'18 Q1'19 FY'16 FY'17 FY'18 Q1'18 Q1
Slide 49: Investments in networks driving data revenue
Investments in networks driving data revenue Ooredoo’s Data Revenue as a % of Total Revenue (by Region) 57% 55% 52% 49% 50% 48% 47% 45% 46% 42% 35% 26% Middle East North Africa Southeast Asia Group FY 2017 FY 2018 Q1 2019 | 19 June 2019 | 49
Slide 50: Debt reduction strategy successfully executed
Debt reduction strategy successfully executed Net Debt (QARm) and Net Debt / EBITDA 35,000 3.0x -6% -13% -10% 30,000 2.5x 2.4x 2.2x 25,000 4,489 2.0x 2.0x 2.0x 1.8x 20,000 1.5x 30,547 28,825 15,000 26,263 1.0x 23,225 10,000 0.5x 5,000 0.0x Q1 2016 Q1 2017 Q1 2018 Q1 2019 Net Debt IFRS 16 Leverage Le
Slide 51: Ooredoo Q.P.S.C. Current Debt Profile
Ooredoo Q.P.S.C. Current Debt Profile – Lower Refinancing Risk 2000 Debt repaid 1,600 1500 Undrawn RCF 490 290 1000 40 500 1,000 1,000 690 750 750 500 500 500 40 300 (USD m) 0 2019 2020 2021 2022 2023 2024 2025 2026 2028 2043 Issue Loans (in USD m) Amount Usage Rate* Maturity Bonds (in USD m) Amount
Slide 52: Financial risks – Challenging but adequately addressed
Financial risks – Challenging but adequately addressed Debt refinancing / liquidity risk / rating • 2019 Debt maturities repaid • • Smooth long term debt profile, current cash levels adequate Investment grade credit rating maintained Moody’s “A2”, outlook: stable; S&P “A-”, outlook: stable; Fitch “A
Slide 53: Stock Split and Share Liquidity
Stock Split and Share Liquidity • A mandatory “Ten for One” stock split is being implemented for all Qatar Exchange listed companies starting in June 2019 and Ooredoo’s stock split takes effect on 03 July 2019 (trading July 4th). Lower share prices are expected to generate more active trading by ret
Slide 54: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 55: Ooredoo Group Strategic Sourcing
Ooredoo Group Strategic Sourcing Christian Linhart, GCPO June 2019 CMD
Slide 56: Strategic Sourcing plays a vital role in Ooredoo Group
Strategic Sourcing plays a vital role in Ooredoo Group Revenues 2018 US$ 8.2 bn Procurement volume 2018 US$ 3.1 bn (38% of rev) Center led Procurement volume 2018 US$ 1.5 bn (~50% of total procurement volume) | 19 June 2019 | 56
Slide 57: Strategic Sourcing transformed to a world class procurement department
In only 4 years Strategic Sourcing (OGSS) transformed to a world class procurement department Digitization Growth Transformation Today 2015 2020+ • GCPO position 1st time ever • OGSS managing ~50% of total • Digital Supply Chain • Intensification of sourcing spend with (global benchmark Management c
Slide 58: The key executives in Ooredoo Group Sourcing
The key executives in Ooredoo Group Sourcing (OGSS) are leading and executing the change Christian Linhart Bassam Al Ibrahim Michel Werner Jonas Rolo Natalia Djamalova | 19 June 2019 | 58
Slide 59: Beyond savings, Ooredoo achieved strategic shifts
Beyond savings, Ooredoo achieved strategic shifts that sustainably changed its way of working From … … to Effective project based negotiations for individual Single Group negotiation for all OpCos focused on Creating OpCos (e.g., Algeria, Tunisia,..) common competitive price book credible Discounts
Slide 60: Big projects to enhance value added by the function
Besides day to day operations we are constantly working on big projects to enhance value added provided by the function Procure Capex Opex ment Transfor Restart Restart ESS mation Procurement University S2S BSS | 19 June 2019 | 60
Slide 61: Capex Restart case study
CAPEX RESTART case study: A few years ago, we embarked in a journey to optimize our network cost base with a series of success stories… 2015 2016 2016 2017 2018 2019 RAN & Core RFP RAN & Core RFP RAN & Core RFP1 Capex Restart 1.0 RAN & Core RFP Capex Restart 2.0 RAN & Core RAN & Core Drivers: LTE La
Slide 62: Microwave e-auction case study
Microwave e-auction case study: RFP has yielded 52% reduction through leveraging 16 e-Auction events across 6 OpCos… • • -52% Price reduction • • 16 5 52% E-auction events Opcos Price reduction • | 19 June 2019 | 62
Slide 63: Source to Settle case study
Source to Settle case study: A digital all-in-one solution for seamless sourcing in the digital age S2S = S2C + P2P: System & Process Landscape Source to Contract (S2C) Procure To Pay (P2P) Demand Mgmt Supplier Sourcing Contract Catalog (ASP) Spend Analysis Savings Tracking Category Mgmt Mgmt Procur
Slide 64: Ooredoo S2S Platform
Ooredoo S2S Platform: Single source of truth enabling end-to-end visibility Digital Integrated S2S Platform No ERP* OQ + OG | 19 June 2019 | 64
Slide 65: Strategic direction forward
Strategic direction forward 01 Increase spend under Strategic Sourcing management 02 Digital procurement Innovation with suppliers 03 Maximize savings 04 | 19 June 2019 | 65
Slide 66: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 67: Indosat Ooredoo: Re-igniting growth
Indosat Ooredoo Re-igniting growth Vikram Sinha, COO Indosat Ooredoo 19 JUNE 2019
Slide 68: Key messages
Key messages Indonesia is a large and growing economy with digital gaining significant traction Rapidly shifting industry dynamics in the Indonesian telco market with shift to data driving growth We are regaining growth momentum after a challenging H1 2018 Shareholder commitment to investing in grow
Slide 69: Indonesia: Large and growing economy with significant digital traction
Indonesia: Large and growing economy with significant digital traction GDP expected to grow at a Promising economic prospects as moderate pace affluence increases Digital gaining significant traction MAC Population Java (Mn) No of Smartphone users (Mn) 5.6% 5.6% +7% +8% 5.5% 5.3% 88.9 85.9 5.1% 78.2
Slide 70: Digital economy gaining traction across sectors
Digital economy gaining traction across sectors Growing B2C digital economy Financial Technology On Demand Services Breakthrough in financial service Offer convenient services to society, using technology as a process such as online transportation. E-Commerce Internet of Things Startup emerge every
Slide 71: Indosat Ooredoo at a glance
Indosat Ooredoo at a glance Integrated Telco in Indonesia – a strong player in consumer, B2B and digital space Shareholders Cellular, B2B & Digital with well established brands Fixed Telecom Float 3 Multimedia, Internet, and 21 17 Data Information 14 Government of 65 Indonesia Ooredoo Asia 80 Cellul
Slide 72: 2018: A watershed year for Indonesian Telco
2018: A watershed year for Indonesian Telco Accelerating decline of voice/SMS ... Leading to market contraction revenue and data yield. . . for the first time in 2018 3P Voice + SMS Revenue (IDR Bn) 3P Cellular Revenue (IDR Bn) SIM SIM Registration #11 Registration #22 18,000 35,000 34,000 16,000 33
Slide 73: Data driving industry growth
Data driving industry growth Data Data Smart phone traffic revenues Handsets 3 player , PB 3 player , IDR Bn Indonesia, # Mn +63% +25% 9% 12% 2,694 19,565 19,742 76.1 2,478 17,888 69.7 2,189 15,801 15,499 62.1 1,976 1,656 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 2017 2018 2019 73
Slide 74: We had a challenging 2018 but turnaround started in H2
We had a challenging 2018 but turnaround started in H2 Strong top line recovery Q2’18 onwards. EBITDA decline largely attributed to 4G rollout expansion Operating Revenue ( IDR billion ) EBITDA ( IDR billion ) +12% -8% +6% 5,819 5,373 5,704 6,370 2,069 1,560 1,642 1,355 Q1’18 Q2’18 Q3’18 Q4’18 Q1’18
Slide 75: Continued growth momentum in Q1 2019
Continued growth momentum in Q1 2019 Operating Revenue ( IDR billion ) EBITDA ( IDR billion ) # 4G BTS 4% 4% 144% Network investments, smart pricing and cost 5,819 6,046 2,069 2,157 22,015 initiatives reflecting in 9,019 Q’19 performance Q1’18 Q1’19 Q1’18 Q1’19 Q1’18 Q1’19 Operating Revenue ( IDR tr
Slide 76: We are committed to investing for growth
We are committed to investing for growth Number of BTS +27% YoY +9% QoQ 81,506 74,926 64,375 66,373 67,002 22,015 17,050 9,019 10,066 11,636 31,062 31,880 33,239 35,453 38,447 24,294 24,427 22,127 22,423 21,044 1Q-18 2Q-18 3Q-18 4Q-18 1Q-19 4G 3G 2G • Fast paced 3G/4G network extension by adding 12,
Slide 77: Our strategy: The Telco you can Trust
Our strategy The Telco you can Trust Strong #2 B2C: Lead the market B2B: Become another Growth by delivering value for engine of growth by money and earning being more nimble engines customer trust than competition Build competitive video grade mobile network Accelerate digital capabilities for futu
Slide 78: 2019: focused on execution and delivering on targets
2019: focused on execution and delivering on targets Network Experience Execution Excellence Leverage Brand Strength Growing retail outlets, Strong brand equity 4200 physical sites roll Distribution = Network leveraging Indosat's 50- out Site level performance year tradition Strong regional Convert
Slide 79: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 80: Ooredoo Oman Updates
2019 Capital Markets Day Doha - Qatar Ooredoo Oman Updates Ian Dench – Chief Executive Officer 19 June, 2019
Slide 81: Sultanate of Oman: Experience Oman
Sultanate of Oman: Experience Oman Oman is a wonderful combination of ageless heritage and modern life. A place where one can explore a traditional souq in the morning, and attend a world-class show at the renowned Royal Opera House Muscat in the evening. Location : Middle East, bordering Arabian Se
Slide 82: Oman Telecom Sector Highlights
Oman Telecom Sector Highlights Class 1 – Integrated Operators (Fixed, Mobile, Internet) Fixed Voice Market Fixed Internet Market (% Household) (% Household) 800,000 120% 96% 500,000 72% 72% 80% 87% 92% 100% 600,000 73% 400,000 60% 80% 50% 60% Class 2 – Mobile Resellers (MVNO) 400,000 60% 300,000 40%
Slide 83: Journey from Nawras to Ooredoo Oman
Journey from Nawras to Ooredoo Oman Ooredoo Telecom (formerly Nawras) became the second cellular provider (GSM) to be awarded a license to operate in Oman with an paid upfront license The TRA awarded Ooredoo fee of OMR 40 million (US$ 104 the Sultanate’s second fixed Commercial launch of its 4G Laun
Slide 84: Revenue, EBITDA and Net Profit
Consistent Growth in Revenue, EBTIDA, and Net Profit (NP) Data represent 65% of overall Revenues. +4% +4% 270.0 273.6 283.6 148.3 151.0 154.6 252.1 137.5 Revenue EBTIDA OMR Millions OMR Millions 0.9% 4.6% 68.0 68.6 37.1 38.8 2015 2016 2017 2018 Q1 2018 Q1 2019 2015 2016 2017 2018 Q1 2018 Q1 2019 0.2
Slide 85: Market Share: Mobile Market Leadership
Market Share: Mobile Market Leadership Captured 44.6% share of Mobile market, 50.4% with Friendi MVNO -0,3% 3.057 3.049 OO 40.9% 41.6% 42.5% 44.5% 44.6% Thousands OTL 43.7% 41.3% 42.2% 43.7% 43.9% Resellers 15.4% 17.1% 15.2% 11.7% 11.5% 2015 2016 2017 2018 Q1 2019 Q1 2018 Q1 2019 Sultanate of Oman M
Slide 86: Market Share Growth
Market Share Growth Strong growth in the Fixed segments with Fixed Wireless (LTE -TD) & Super Fibre. +21.8% +4.7% 2,932 2,896 1,884 1,799 2,708 2,654 Thousands Thousands 124 151 224 242 Q1 2018 Q1 2019 Q1 2018 Q1 2019 MBB Prepaid HBB Postpaid Ooredoo Oman Mobile Market Share - Customers Ooredoo Oman
Slide 87: Network Coverage: Rapid Growth in 4G coverage
Network Coverage: Rapid Growth in 4G coverage 2G - % Population 3G - % Population 99.09% 97.75% 2311 sites 2132 sites National Fiber Backbone 5,862 km 4G LTE - % Population Fast HBB - % Households 96.25% 2013 sites 87.75% | 19 June 2019 | 87
Slide 88: CAPEX
CAPEX Major 4G Network Expansion accomplished; achieving savings through Group Sourcing. 77 CAPEX/Rev. Margin (%) Capex OMR (mil) 64 52 47 31.0% 24.0% OMR Millions 17.2% 18.1% 11 15.4% 2015 2016 2017 2018 Q1 2019 | 19 June 2019 | 88
Slide 89: 2018-2019: Achievements & Awards
2018-2019: Achievements & Awards Long-term agreement signed with Friendi, part of Ooredoo app (1 million downloads, ~650K active the Virgin Mobile Middle East & Africa group. users & application rating of 4.2 out of 5). Awarded fastest mobile network - Ookla H1 2018. GBA - Digital Transformation Awa
Slide 90: Successful Campaigns, Commercial Edges and Segmentation (B2C)
Successful Campaigns, Commercial Edges and Segmentation (B2C) | 19 June 2019 | 90
Slide 91: Successful Campaigns, Commercial Edges and Segmentation (B2B)
Successful Campaigns, Commercial Edges and Segmentation (B2B) | 6/19/2019 | 91
Slide 92: 2019-2020 Regulatory framework
2019 -2020 Regulatory framework Third Mobile Operator Itqan Tech Development LLC (“Itqan”) leading a process of forming a consortium to establish 3rd Mobile Operator. Vodafone to become ‘strategic partner’ for third mobile operator in Oman “signing of a memorandum of understanding between the compan
Slide 93: Ooredoo Oman's Strategic Focus
Ooredoo Oman’s Strategic Focus “Enriching Customers Digital Lives” Great Network Network Expansion to cater capacity and coverage Awesome Digital Experience Digital Reach to Customer (App) Best Price Innovation & Value Lead in price innovation and value Accelerate new business opportunities Diversif
Slide 94: Great Unified Network
Great Unified Network Achieving Economies of Scale and Scope Data Experience FTTH with OBC 5G to drive data Leadership LTE TDD utilizations starting Additional Carriers Massive MIMO with FWA Indoor Coverage to cater Fiber to new TRA approved the capacity Developments spectrum Jun/1
Slide 95: Awesome Digital Experience
Awesome Digital Experience DIGITAL SALES DIGITAL CARE DIGITAL MARKETING • Growth on Digital Shababiah – • Driving APP recharges • Social Media Engagement Oman’s first fully Digital plan = Higher activity levels / Higher ARPU 20% increase in daily recharge volumes Achieved #1 position across social c
Slide 96: Best Price Innovation & Value
Best Price Innovation & Value POSTPAID PREPAID Home • First fully Digital Post paid plan with • Shababiah MIX: Build own plan via app • Faster fibre speed offers to acquire no contract & loads of data based on individual voice and data needs. incremental new customers to HBB. • Introduced Weekend da
Slide 97: Accelerate new business opportunities
Accelerate new business opportunities Creating New Value Chain & Services Internet of Things (IOT) Augmented & Virtual Reality (AR & VR) • IoT, primarily in the industrial and logistics industries, using different types of wireless connection (WIFI, GPRS, WiMAX, Bluetooth, etc.), mobile device users
Slide 98: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 99: CMD 2019 survey
CMD 2019 survey | |
Slide 100: Webcast and Q&A
Webcast and Q&A | |
Slide 101: Agenda
Agenda • 10:00-10:05 Welcome by Ooredoo Group (OG) IR, Andreas Goldau & Sara Al Sayed • 10:05-10:15 GCEO – Deputy GCEO Waleed Al Sayed (OG), CEO Ooredoo Qatar • 10:15-10:35 New Lead strategy and 5G, Mansoor Al Khater, Chief Strategy Officer, OG • 10:35-10:55 Digital Transformation - Andrew Kvalseth
Slide 102: Thank You
Thank You Connect with us on: ooredoo.com @ooredoo IR@ooredoo.com