Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Investor Day (December 2023)
18 slides from Ooredoo Q.p.s.c's investor day presentation, Dec 3, 2023
Slide 1: Value Creation: Strong Financial Position & Sustainable Business
VALUE CREATION: STRONG FINANCIAL POSITION & SUSTAINABLE BUSINESS | |
Slide 2: Strong Financial Position
STRONG FINANCIAL POSITION | |
Slide 3: Growing Group revenue
Growing Group revenue Strong and sustained revenue supported by local currency revenue growth Revenue (QAR mn) +4% 24,000 22,698 21,883 21,906 22,000 +2% 18,000 17,240 16,854 • OpCos revenue increasing in local currency terms supported by 16,000 robust market positions, leading customer experience &
Slide 4: Expanding Group EBITDA and EBITDA margin
Expanding Group EBITDA and EBITDA margin Continuous focus on cost optimization and transformation initiatives EBITDA* (QAR mn) & EBITDA Margin (%) +4% • EBITDA growth is supported by revenue growth and cost 9,274 9,129 optimizations 8,771 +6% • 2023 EBITDA growth driven by Iraq, Algeria and Kuwait 7
Slide 5: Reaping the benefits of Braveheart and business optimization
Reaping the benefits of Braveheart and business optimization More than 700+ initiatives monitored under Transformation program across OpCos Braveheart Group transformation project ▪ Drive profitability in our core business ▪ Focused on enhancing the core telecom business with initiatives for revenue
Slide 6: Improving capex intensity
Improving capex intensity Strict, disciplined and centralized CAPEX management process focused on high return best-in-class assets Capex (QAR mn) & Capex Intensity (%) -22% • Capex efficiency improved by +4pp from 2020 to 2022 3,521 • Overall Capex declining as majority of the network roll-outs are
Slide 7: Increasing Free cash flow and Net Profit
Increasing Free cash flow and Net Profit Supported by EBITDA growth FCF* (QAR mn) Net Profit to Ooredoo (QAR mn) +22% +104% +8% 3,000 +19% 7,000 2,821 6,401 6,189 5,742 2,534 6,000 2,500 5,250 5,336 2,223 2,134 2,000 4,000 1,500 1,384 3,000 1,000 2,000 1,000 500 0 0 FY20 FY21 FY22 9M 22 9M 23 FY20 F
Slide 8: On track to meet FY 23 guidance
On track to meet FY 23 guidance Delivering robust key metrics Group Finance KPIs 9M-23 % change (YoY) 2023 Guidance targets Revenue QAR 17.2 billion +2% Flat EBITDA margin 43% ~ low 40%’s +1pp Capex QAR 1.6 billion +2% ~QAR 3 billion ▪ Revenue ahead of guidance ▪ CAPEX expected to increase in last q
Slide 9: Building capacity for future growth
Building capacity for future growth Deleveraging since 2015, currently below Board Guidance of 1.5x to 2.5x Net debt/EBITDA 1.9x 1.5x 1.1x 0.9x FY 20 FY 21 FY 22 Q3 23 • Improvement on leverage ratio over the past 5-6 years, from 1.8x at the end of 2017 to 0.9x as of end Q3 2023 • Both the Balance S
Slide 10: Debt Profile
Debt Profile Investment grade rating and strong liquidity position • Strong liquidity position (combination of Cash and QAR’mn undrawn RCFs ) Repayment schedule Fixed vs Floating rate debt portion • RCF facilities expiring in 2023 and 2024 have had their maturities extended to 2027 & 2028, 655 5% pr
Slide 11: Risk Management
Risk Management Foreign Exchange Risks Interest Rate Risks • On a Group wide basis, Ooredoo has a relatively high • As per current hedging policy, we will continue to hedge level of fixed rate debt of approx. 95% and thus FX transactional risk by OPCOs, at their level, to the interest rate risk is l
Slide 12: Shareholder value creation
Shareholder value creation Healthy dividend payout, with a cumulative increase of 72%. Dividend for 2022 was at the top end of our guidance Dividend policy Dividend history (QAR) 0.43 +43% Sustainable & progressive 0.30 dividend policy, +20% 0.25 0.25 0.25 Aiming for a dividend payout in the range o
Slide 13: Uses of proceeds
Uses of proceeds Invest in the business M&A • Low capex intensity (2023 Capex guidance of QAR 3 billion, ~14% • Preference for in market consolidation / bolt on acquisitions to Capex to sales ratio, heavy lifting done on 5G in Qatar, Kuwait, Oman enhance in market capability and Maldives) • Value ac
Slide 14: Sustainable Business
SUSTAINABLE BUSINESS ضمن
Slide 15: Ooredoo Sustainability journey
Ooredoo Sustainability journey Working to be at the forefront of Sustainability Progress Reporting and Collaboration Looking ahead ratings • Concluded first year with ESG • Continue to collaborate with advisory • ESG report to be upgraded during 2024 • Published third ESG report in line with global
Slide 16: Key Takeaways
KEY TAKEAWAYS ضمن
Slide 17: Key takeaways
Key takeaways 1 Best in class organization for the long term 2 Healthy revenue, EBITDA and FCF growth 3 Continued cost optimization to sustain healthy EBITDA margins | Disciplined & centralized CAPEX management 4 Building capacity for future growth, with a strong investment grade and balance sheet 5
Slide 18: Thank you
THANK YOU Upgrade your world. Upgrade your portfolio. | |