Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — FY2008 Earnings Presentation
39 slides from Ooredoo Q.p.s.c's earnings presentation, Mar 9, 2009
Slide 1: The Qtel Group Full Year 2008 Results
The Qtel Group On Track for 2020 - Creating value and growth through strategic vision and prudent investment strategies Full Year 2008 Results March 9, 2009
Slide 2: Today's agenda
Today’s agenda • Results review • Key operations review • Strategy review • Q&A • Appendix 2
Slide 3: Continuing to deliver solid results
Continuing to deliver solid results Year ended Dec Change • Superior combination of growth 2008 2008 / 2007 QAR Millions and strong cash flow generation via partnerships and acquisitions Consolidated 20,319 +93% revenue • Presence in 17 countries with more than 540 million population EBITDA 9 825 9,
Slide 4: An ongoing emphasis on capital discipline
An ongoing emphasis on capital discipline 13.1 Dec 08 Net • Debt maturity profile that illustrates 8.4 strategic Treasury management Financial Debt 2.5 3.0 Maturity 0.7 0.4 (In billion QAR) • USD 1.5 1 5 billion credit facility secured in March 2009 3.0x -40% • Net Debt / EBITDA has improved due Net
Slide 5: Strong investment grade credit profile
Strong investment grade credit profile Agency Rating1 Outlook A1 Stable A- Stable A+ Stable Despite the challenging environment, environment ratings underline confidence in both Qtel’s Qtel s domestic strength and international expansion Note: (1) Moody’s Investors Service has assigned Qtel a senior
Slide 6: Group highlights
Group highlights Recent performance confirms Qtel’s successful approach towards its g growth targets g Customers Consolidated Consolidated Net profit Debt (In thousands) revenue(1) EBITDA(1) attributable to (In million QAR) (In million QAR) (In million QAR) shareholders(1) (In million QAR) Short-ter
Slide 7: Group highlights: Customers overview
Group highlights Customers overview Total Customer(1) base evolution Country(2) contribution breakdown (In thousands) (% share of total base) 253% Proportionate Customer(1) base evolution Country(2) breakdown (In thousands) (% share of proportionate base) 243% Source: Qtel Note: (1) Includes both fi
Slide 8: Group highlights: Revenues overview
Group highlights Revenues overview Consolidated Revenue(1) evolution Country(2) contribution breakdown (In million QAR) (% share of total revenue) 93% (3) Increase in revenue strongly driven by Indosat acquisition followed by YoY growth for Qatar, Kuwait, Algeria and Iraq Source: Qtel Note: (1) Post
Slide 9: Group highlights: EBITDA overview
Group highlights EBITDA overview EBITDA(1) evolution Country(2) contribution breakdown (In million QAR) (% share of total EBITDA) 90% (2) Qatar, Indonesia (post-acquisition) and Iraq are major contributors to group EBITDA with growing contribution from other markets Source: Qtel Note: (1) Post acqui
Slide 10: Group highlights: Net Profit overview
Group highlights Net Profit (Attributable to Qtel shareholders) overview Net profit (1) evolution Country contribution breakdown (In million QAR) (% share of total net profit) 36% (2) (3) Qatar, Oman, Kuwait, Tunisia, Iraq and Indonesia (post acquisition) operations contributed to Net Profit while o
Slide 11: Group highlights: Exchange rate impacts
Group highlights Exchange rate impacts Kuwait KWD Q3 KWD Q4 KWD Q4-Q3 USD Q4-Q3 Total (Mn) Total (Mn) Change Change (Mn) Appreciation (Depreciation) vs. USD Revenue 57 57 (0) (6.1) EBITDA 28 33 5 15.7 Q2-Q3 Q3-Q4 Net Profit 21 23 2 64 6.4 Algeria Kuwait (KWD) (0.5%) (2.4%) DZD Q3 DZD Q4 Total DZD Q4
Slide 12: Group highlights: Debt
Group highlights Debt Total debt Country breakdown (In million QAR) (% of debt) 27,975 Short-term Long-term 21,625 A successful post-period re-financing has resulted in a substantial portion of short-term debt being addressed Source: Qtel 12
Slide 13: Group highlights: CAPEX overview
Group highlights CAPEX overview (Full year pro-forma consolidated to Dec. 2008) CAPEX evolution Country contribution breakdown (In million QAR) (% share of total CAPEX) 242% Ap prudent capital p investment strategy gy in terms of market share / market revenue capture p Source: Qtel Indonesia represe
Slide 14: Group highlights: Dividend
Group highlights Dividend The Board of Directors will recommend to the General Assembly a t t l annuall cash total h di dividend id d off QAR 10 per share. h This represents 100% of the share face value and around 65% payout ratio. The Board reviews the dividend policy on an annual basis and recomme
Slide 15: Today's agenda
Today’s agenda • Results review • Key operations review • Strategy review • Q&A • Appendix 15
Slide 16: Qatar - Qtel
Qatar Qtel Market snapshot Key developments Pop : 1.6 mn • Strong revenue continues supported by: Pop growth: 23% Qatar • Pre and post customer growth Mob. penetration: 143% • Stable ARPU GDP: USD 90 bn • GSM customer base reached 1.68m with 1.45m GDP per capita: USD 55,415 Prepaid customers Operati
Slide 17: Indonesia - Indosat
Indonesia Indosat Market snapshot Key developments Pop : 237.5 mn • Significant exchange rate impacts in Q4 Indonesia Pop growth: 1% • Tender Offer process successfully closed March Mob. penetration: 58% 5,2009 GDP: USD 492.1 bn • Trend of stabilizing service pricing GDP per capita: USD 3,884 • Cost
Slide 18: Kuwait - Wataniya
Kuwait Wataniya Market snapshot Key developments Pop : 3.6 mn • Consistent, attractive results with improved EBITDA ait Pop growth: 6% • 3rd operator launched commercially in early Kuwa Mob. penetration: 90% December: GDP: USD 149 bn • Charges for incoming calls eliminated by GDP per capita: USD 40,
Slide 19: Iraq - Asiacell
Iraq Asiacell Market snapshot Key developments Pop : 29.4 mn • Quarterly growth in revenue driven by continuing Pop growth: 1% subscriber growth Iraq Mob. penetration: 54% • Continuing emphasis on marketing campaigns in GDP: USD 84.7 bn Baghdad and other large market opportunities GDP per capita: US
Slide 20: Other key areas of interest
Other key areas of interest Key developments Tunisiana (Tunisia) • Exchange rate impacts in Q4 • Roll-out of EDGE network across major cities • Tunisian government tender offer launched for new fixed and mobile license with commercial implementation for January 2010 Wataniya Palestine • Secured fund
Slide 21: Today's agenda
Today’s agenda • Results review • Key operations review • Strategy review • Q&A • Appendix 21
Slide 22: Strategic vision: top 20 telecom companies globally by 2020
Qtel’s strategic vision is to be among the top 20 telecom companies globally by 2020 Qatar-based integrated Business interests in 17 telecom l operator countries Uzbekistan Afghanistan • Combination of partnerships and acquisitions • Key focus on Consumer Wireless, Consumer Broadband and Corporate M
Slide 23: Which has fuelled significant growth and fundamental transformation
Which has fuelled significant growth and fundamental transformation Jan 2005 Jan 2007 Dec 2008 Tunisia Jordan Iraq Palestine Kuwait Pakistan UAE Qatar Saudi Algeria Arabia Oman Laos Cambodia Oman Qatar Si Singapore Phili i Philippines Indonesia Qatar Singapore Maldives Indonesia Countries w/ 1 4 17
Slide 24: Objective progress in 2008
Objective progress in 2008 The Qtel Group will continue to focus on four priorities in 2009 Objectives 2008 progress update 1 • Maintain healthy EBITDA in mature markets • EBITDA margins of 62% and 53% in • Accelerate value capture in markets such as Qatar and Kuwait respectively for 2008 EBITDA Gro
Slide 25: Today's agenda
Today’s agenda • Results review • Key operations review • Strategy review • Q&A • Appendix 25
Slide 26: Safe Harbor Disclaimer
Safe Harbor Disclaimer • Qatar Telecom (Qtel) Q.S.C. cautions investors that certain statements contained in this document state management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements • Management wishes to caution the reader that forward-l
Slide 27: Thank you for your attention
Thank you for your attention Qtel Investor Relations Department Any further Tel: +974-440-0088 questions? Fax: +974-483-0011 +974 483 0011 investor@qtel.com.qa Upcoming 2008 Annual General Meeting: events March 2009, Doha, Qatar 27
Slide 28: Today's agenda
Today’s agenda • Results review • Key operations review • Strategy review • Q&A • Appendices 28
Slide 29: Qtel Group structure and presence
Qtel Group structure and presence(1) Mix of public and government ownership coupled with diversified holding St t off Qatar State Q t Li t d/P bli Listed/Public 55% 45% Qatar Telecom (Qtel) Qtel International QSC 52.5% 61% 25% 78% Wataniya (NMTC) Raywood Asia Mobile Holdings wi-tribe2 (Kuwait) (Caym
Slide 30: Qtel Group's global footprint
Qtel Group’s global footprint Operations in the MENA, Subcontinent and Asia Pacific regions with increasing focus on growth markets Qtel MENA Operations (Controlling stakes) wi-tribe Limited (Qtel stake- 78%) wi-tribe Asia (Qtel stake- 69%) Qtel (Qatar) Nawras (Oman) AsiaCell (Iraq) wi-tribe Jordan
Slide 31: Oman - Nawras
Oman Nawras Market snapshot Key developments Pop: 2.9 mn • Solid customer growth continues with commensurate Pop growth: 5% increases in market share share, revenues and EBITDA Oman n Mob. penetration: 109% • Nawras awarded 2nd fixed license: launch by end of GDP: USD 46.2 bn 2009 along with interna
Slide 32: Algeria - Nedjma
Algeria Nedjma Market snapshot Key developments Pop : 33.8 mn • Significant exchange rate impacts in Q4 Algeriia Pop growth: 1% • Greatly reduced churn and reduced spending from Mob. penetration: 67% Q3 Ramadan advertising spend, driving Q4 cost GDP: USD 159.9 bn improvements GDP per capita: USD 8,3
Slide 33: Tunisia - Tunisiana
Tunisia Tunisiana Market snapshot Key developments Pop : 10.4 mn • Exchange rate impacts in Q4 Tunisia Pop growth: 1% • Sustained growth resulting in market share of 51% Mob. penetration: 82% • Roll-out of EDGE network across major cities GDP: USD 38.85 bn • Tunisian government tender offer launched
Slide 34: Maldives - Wataniya
Maldives Wataniya Market snapshot Key developments Pop : 0.39 mn • Subscriber growth of 20% Q4 vs. Q3 ves Pop growth: 6% • Resort and international revenue expansion Maldiv Mob. penetration: 107% continues: GDP: USD1.7 bn • Additional resorts covered and further resort GDP per capita: USD 4,500 buil
Slide 35: KSA - Bravo
KSA Bravo Market snapshot Key developments Pop : 25 mn • Continued growth in subscribers and associated Pop growth: 3% revenue KSA A Mob. penetration: 124% • ARPU increase of 10% over Q3 GDP: USD 467.1 bn • Major government and enterprise alliances GDP per capita: USD 23,928 established along with v
Slide 36: Key operating country statistics
Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives1 Oman Qatar KSA Tunisia GDP real growth % 3.0 6.1 7.8 8.5 6.5 6.4 11.2 4.2 4.7 (2008) Consumer prices % (end-period 2008 except 4.1 11.1 2.8 10.0 11.0 13.1 12.0 9.5 5.0 Oman Q2 YoY) 2008 33.8 237.5 29.4 3.6 0.386 2.9 1.6 25.0 10
Slide 37: Consolidated Income Statement
Consolidated Income Statement Year ended 31 December 2008 2008 2007 QR’000 QR’000 Revenue 20,318,927 10,543,235 Other income 540,568 171,159 General and administrative expenses (9,278,363) (4,534,941) Other operating expenses (5,428,700) (2,927,736) (Loss) Gain on foreign currency exchange (net) (44
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet At 31 December 2008 31 Dec 2008 31 Dec 2007 31 Dec 2008 31 Dec 2007 QR’000 QR’000 QR’000 QR’000 ASSETS EQUITY AND LIABILITIES Non-current assets Attributable to equity holders of the parent Property, plant and equipment 23,480,143 9,010,865 Share capital 1,466,667 1,000,00
Slide 39: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Year ended 31 December 2008 2008 2007 2008 2007 QR’000 QR’000 QR’000 QR’000 OPERATING ACTIVITIES FINANCING ACTIVITIES Operating profit before working capital Proceeds from rights issue 5,860,804 - changes 8,675,572 4,409,765 Net movements in interest bearing loan