Slide 1: Ooredoo Group Q2 2020 Results
Ooredoo Group Q2 2020 Results July 2020 1
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 Results review 2 Operations review 3 Additional information 3
Slide 4: Group Results Key Highlights
Overview Results review Operations review Additional information Group Results Key Highlights Solid financial performance in challenging conditions COVID 19 response: Revenue declined by 3% EBITDA declined by 5% Group Net Profit attributable Data revenues account for • enhancing health and safety ye
Slide 5: COVID-19 Initiatives
Overview Results review Operations review Additional information Group Results COVID- 19 Initiatives Commercial Infrastructure • Optimised customer care activities to function effectively and safely during movement restrictions Initiated Business Continuity plans to • launched smart IVR to reduce ca
Slide 6: COVID-19 Initiatives: CSR
Overview Results review Operations review Additional information Group Results COVID- 19 Initiatives CSR Initiatives • CSR activities and COVID-19 information campaigns to support to the community • Donation to local COVID-19 funds to support impacted communities and aid national governments • Free
Slide 7: Revenue and EBITDA
Overview Results review Operations review Additional information Group Results Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin -3% -5% 14,508 14,118 6,339 5,996 -6% -7% 3,166 7,316 2,973 6,823 44% 42% 43% 44% 1H-19 1H-20 Q2-19 Q2-20 1H-19 1H-20 Q2-19 Q2-20 • Resilient performance a
Slide 8: Net Profit
Overview Results review Operations review Additional information Group Results Net Profit Net Profit Attributable to Ooredoo shareholders (QARm) 841 -3% 795 818 +3% Net Profit 612 451 432 421 403 Net Profit F/X Impact F/X Impact Pre F/X Net Profit Pre F/X Net Profit 207 (30) 29 46 1H-19 1H-20 Q2-19
Slide 9: Free Cash Flow and Capital Expenditure
Overview Results review Operations review Additional information Group Results Free Cash Flow and Capital Expenditure CAPEX (QARm) & CAPEX/ Revenue (%) Free Cash Flow (QARm) -1% -10% 2,667 2,120 2,107 +28% 2,410 1,297 -30% 1,296 1,015 904 15% 15% 19% 14% 1H-19 1H-20 Q2-19 Q2-20 1H-19 1H-20 Q2-19 Q2-
Slide 10: Total customers
Overview Results review Operations review Additional information Group Results Total customers Total Customers (Millions) -13% 149.2 -12% +2% 130.1 114.9 117.2 1H-17 1H-18 1H-19 1H-20 • Customer number growth mainly supported by new subscribers in Myanmar and Indonesia 10
Slide 11: Net debt
Overview Results review Operations review Additional information Group Results Net debt Net Debt (QARm) and Net Debt / EBITDA +12% 27,858 27,589 -9% -12% 25,007 24,573 2.2 1.9 1.8 1.8 1H-17 1H-18 1H-19 1H-20 • Positive trend of Group Net Debt reduction continued; Net Debt to EBITDA ratio 1.8x • Lowe
Slide 12: 2020 1H performance summary
Overview Results review Operations review Additional information Group Results 2020 1H performance summary Group Financials 1H 2020 2020 Full Year % Change 2020/2019 (QAR bn) Actual Guidance over 2019 Revenue 14.1 -3% -1.5% to +1.5% EBITDA 6.0 -5% -2% to +1% CAPEX 2.1 -3.8% 5.5bn to 6.5bn • COVID 19
Slide 13: Contents
Contents 1 Results review 2 Operations review 3 Additional information 13
Slide 14: Qatar
Overview Results review Operations review Additional information Qatar QARm Revenue EBITDA EBITDA Margin • Despite strict C19 measures, limited retail shop opening and loss of roaming business the revenue drop was contained at 4% • Healthy EBITDA margin 54% • Customer number increased by 1% yoy to r
Slide 15: Indonesia
Overview Results review Operations review Additional information Indonesia QARm 1,882 1,692 1,669 1,688 1,596 3,356 3,154 • Positive turnaround momentum maintained solid top-line growth of 6% YoY, driven by data revenue on the back of enhanced network experience and distribution expansion. Our focus
Slide 16: Iraq
Overview Results review Operations review Additional information Iraq QARm Revenue EBITDA EBITDA Margin • Strict lockdown measures and C19 brought Revenue down by 10% yoy • Lower revenue impacted EBITDA, optimising operational efficiency and 46% 46% 44% controlling its marketing spend resulted in an
Slide 17: Oman
Overview Results review Operations review Additional information Oman QARm Revenue EBITDA EBITDA Margin • Revenues decreased by 4%, due to a decline in prepaid mobile and roaming revenues 57% 56% • EBITDA declined 7% due to lower revenue with an EBITDA margin of 55% 52% 53% 56% 54%. Focus on optimiz
Slide 18: Kuwait
Overview Results review Operations review Additional information Kuwait QARm 739 694 666 1,367 656 578 1,234 • Due to the COVID-19 pandemic and countrywide lockdown in Q2’20, Revenue decreased by 10% yoy due to lower Service and Equipment Revenue • Ooredoo Kuwait offered all workers in the ministrie
Slide 19: Algeria
Overview Results review Operations review Additional information Algeria QARm 613 628 616 594 1,257 520 1,114 • Ooredoo Algeria performance impacted by challenging economic conditions, intense price competition and currency depreciation as the Algerian Dinar depreciated by 4% YoY • Revenue decreased
Slide 20: Tunisia
Overview Results review Operations review Additional information Tunisia QARm 407 731 379 382 689 360 349 • Another very strong performance. Revenue increased by 6% despite 321 314 deteriorating economic conditions following the implementation of 179 202 159 168 147 Government measures to control th
Slide 21: Myanmar
Overview Results review Operations review Additional information Myanmar QARm 284 296 580 275 273 535 255 • Very strong growth in revenue (8% YoY) driven by healthy growth in data consumption partly offset by lower voice revenue; also supported by currency appreciation 75 92 75 124 • Reduced EBITDA
Slide 22: 2020 upcoming events (tbc)
2020 upcoming events (tbc) 21 Sept, Ooredoo Capital Markets Day Doha & Virtual 21 Sept – 1 Oct EFG Virtual Mena Conference (exact two days tbc) 22-24 Sep, JP Morgan annual EM credit conference Virtual End of Oct ORDS Q3 results First week of November, Qatar Exchange/ Goldman Sachs Virtual
Slide 23: Contents
Contents 1 Results review 2 Operations review 3 Additional information 23
Slide 24: Additional Information: Key Operations Importance to Group
Overview Results review Operations review Additional information Additional Information Key Operations Importance to Group Revenue (QARm) EBITDA (QARm) 6,939 6,212 6,339 5,996 16,259 15,122 14,508 14,118 1H-17 1H-18 1H-19 1H-20 % delta 1H-17 1H-18 1H-19 1H-20 % delta Qatar 2,025 1,977 2,077 1,912 -8
Slide 25: Group Operations Breakdown: CAPEX & Customers
Group Operations Breakdown Overview Results review Operations review Additional information CAPEX & Customers CAPEX Breakdown (%) Customer Breakdown (%) Others, 2% Others, 2% Myanmar, 13% Myanmar, 3% Qatar , 15% Qatar , 3% Tunisia, 4% Algeria, 9% Tunisia, 8% Kuwait, 6% Algeria, 11% Kuwait, 2% Oman,
Slide 26: Total Group Debt Breakdown
Group Operations Breakdown Overview Results review Operations review Additional information Total Group Debt Breakdown Total Group Loans and Borrowing (QARm) Loans and Borrowing Breakdown Long Term Short Term Others , 6% 41,107 38,416 3,191 7,804 31,716 29,083 Indonesia , 17% 4,948 6,733 37,916 30,6
Slide 27: Debt Profile – Ooredoo Q.P.S.C. level
Group Results Overview Results review Operations review Additional information Debt Profile – Ooredoo Q.P.S.C. level 2,000 1,500 650 Undrawn RCF 1,000 40 630 90 20 20 (USD m) 500 1,000 1,000 750 420 460 500 500 500 190 20 20 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2043 Issue Loans (in US
Slide 28: Blended ARPU
Blended ARPU Overview Results review Operations review Additional information Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 109 112 108 107 56.1 53.7 54.4 54.7 105 102 50.5 50.8 22.8 23.0 29.2 59.9 25.4 25.3 27.1 55.4 52.8 56.2 59.0 23.2 50.8 20.9 20.9 19.0 20.4 19.3 Indonesia (QA
Slide 29: Service Revenue
Service Revenue Overview Results review Operations review Additional information Service Revenue -2% -6% 13,836 13,547 6,990 6,557 1H-19 1H-20 Q2-19 Q2-20 29
Slide 30: Statutory Corporate Tax Rates
Overview Results review Operations review Additional information Statutory Corporate Tax Rates Statutory Statutory Losses Losses C/Fwd C/Fwd Markets Markets Notes Tax Tax Rate Rate Allowed Allowed Algeria 26% 4 years The Tax Rate is 22% for tax years 2020 and 2021, 20% for tax year 2022 onwards Indo
Slide 31: 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 32: Thank You
Thank You