Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Q1 2020 Earnings Presentation
33 slides from Ooredoo Q.p.s.c's earnings presentation, Apr 30, 2020
Slide 1: Ooredoo Group Q1 2020 Results
Ooredoo Group Q1 2020 Results 30 April 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 COVID-19 Impact 2 Results review 3 Operations review 4 Additional information 3
Slide 4: Covid situation and Ooredoo priorities
Covid 19 situation and Ooredoo priorities “As we work together to overcome the challenges of the COVID-19 pandemic, our key priorities are clear: • the health and safety of our staff and customers • the continued provision of uninterrupted and high quality services to our consumer and business custo
Slide 5: Initial assessment of impact on our business
Group Results Initial assessment of impact on our business: Telecom is a resilient and defensive sector Reduced roaming Decreased device Potential supply More need to Data consumption Increased e- Potential increase in revenues due to sales (low margin chain disruption, communicate in up during lock
Slide 6: COVID-19 Initiatives
Group Results COVID- 19 Initiatives Infrastructur Social Commercial Health & Safety e • CSR activities and COVID-19 • Acceleration of digital Overview of health and information campaigns to transformation to ensure • Steps taken to ensure safety initiatives support to the community business continui
Slide 7: Contents
Contents 1 COVID-19 Impact 2 Results review 3 Operations review 4 Additional information 7
Slide 8: Key Highlights
Group Results Overview Results review Operations review Additional information Key Highlights Solid financial performance in challenging conditions Revenue growth of 1% EBITDA declined by 5% Group Net Profit Data revenues accounts Ooredoo Group has healthy year-on-year to QAR 7.3 year-on-year to QAR
Slide 9: Revenue and EBITDA
Group Results Overview Results review Operations review Additional information Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +1% -5% 7,295 3,173 3,023 7,192 44% 41% Q1-19 Q1-20 Q1-19 Q1-20 • Revenue growth of 1% yoy supported by robust growth mainly in Indonesia, Tunisia, Myanmar
Slide 10: Net Profit
Group Results Overview Results review Operations review Additional information Net Profit Net Profit Attributable to Ooredoo shareholders (QARm) -8% Net Profit 420 387 F/X Impact 344 Pre F/X Net Profit 208 178 77 Q1-19 Q1-20 • Net profit down by 8%. Ooredoo Group has healthy cash reserves and liquid
Slide 11: Free Cash Flow and Capital Expenditure
Group Results Overview Results review Operations review Additional information Free Cash Flow and Capital Expenditure CAPEX (QARm) & CAPEX/ Revenue (%) Free Cash Flow (QARm) 1,105 -27% +10% 811 1,506 1,370 15% 11% Q1-19 Q1-20 Q1-19 Q1-20 • Capex lower than in 2019, advantage of scale of Ooredoo Grou
Slide 12: Total customers
Group Results Overview Results review Operations review Additional information Total customers Total Customers (millions) +1% 150.5 -25% +6% 149.1 118.3 112.1 Q1-17 Q1-18 Q1-19 Q1-20 • Growing customer numbers mainly in Myanmar, Indonesia and Iraq 12
Slide 13: Net debt
Group Results Overview Results review Operations review Additional information Net debt Net Debt (QARm) and Net Debt / EBITDA 28,825 +6% -9% 27,714 26,263 -10% 24,975 2.2 2.0 2.0 1.8 Q1-17 Q1-18 Q1-19 Q1-20 • Positive trend of Group Net Debt reduction continued; Net Debt to EBITDA ratio 1.8x • Lower
Slide 14: 2020 Q1 performance summary
Group Results Overview Results review Operations review Additional information 2020 Q1 performance summary Group Financials 2020 % Change 2020 Full Year (QAR bn) Actual 2020 / 2019 Guidance over 2019 Revenue 7.3 1.4% -1.5% to +1.5% EBITDA 3.0 -4.7% -2% to +1% CAPEX 0.8 -26.6% 5.5bn to 6.5bn • Q1 Rev
Slide 15: Contents
Contents 1 COVID-19 Impact 1 2 Results review 3 Operations review 4 Additional information 15
Slide 16: Qatar
Qatar Overview Results review Operations review Additional information QARm • Strong No.1 position maintained - Ooredoo’ s fixed line and mobile networks in Qatar ranked among fastest globally Revenue EBITDA EBITDA Margin • Revenue slightly down due to decrease in prepaid services not fully offset b
Slide 17: Indonesia
Indonesia Overview Results review Operations review Additional information QARm 1,882 1,669 1,692 1,669 1,557 1,557 1,596 • Positive momentum at beginning of the year, revenue increased by 8% YoY (in IDR) • Q1 EBITDA up by 9% YoY • ARPU uplift driven by strong data traffic increase, moving away from
Slide 18: Iraq
Iraq Overview Results review Operations review Additional information QARm Revenue EBITDA EBITDA Margin • Customer base stood at 14.8 million up 5% YoY due to good growth in data users during the period 44% 46% 46% 43% 44% • Revenue is higher than last year driven by growth in DATA and VAS revenues;
Slide 19: Oman
Oman Overview Results review Operations review Additional information QARm Revenue EBITDA EBITDA Margin 57% 56% 57% 55% 57% 56% 52% 650 638 • Total revenue for Q1 2020 down by 2 % compared to Q1 2019, strong growth in fixed line does not fully compensate drop in prepaid mobile 667 682 704 business 6
Slide 20: Kuwait
Kuwait Overview Results review Operations review Additional information QARm • Ooredoo Kuwait revenues in Q1 2020 were QAR 656 million compared to QAR 673 million in Q1 2019 in a competitive environment • COVID-19 lockdown added pressure on the economy and correspondingly impacted the performance of
Slide 21: Algeria
Algeria Overview Results review Operations review Additional information QARm 644 628 613 616 594 644 594 • Ooredoo Algeria performance impacted by intense competition, a weak economy and an overall market shrinking • EBITDA lower due to decreased revenue, EBITDA margins improved 261 199 204 204 200
Slide 22: Tunisia
Tunisia Overview Results review Operations review Additional information QARm 407 379 382 382 360 329 329 • Very strong performance of Ooredoo Tunisia in Q1 with 8% Revenue growth yoy in local currency terms 142 179 202 159 168 142 168 • Improved EBITDA margins to 44% due to cost optimization progra
Slide 23: Myanmar
Myanmar Overview Results review Operations review Additional information QARm 275 284 273 260 255 284 260 • Total revenue improved yoy and sequentially mainly from data revenues supported by increased 4G national coverage • Strong customer acquisition resulted in 15.6mn customers (+35% QoQ) and incr
Slide 24: Contents
Contents 1 COVID-19 Impact 2 Results review 3 Operations review 4 Additional information 24
Slide 25: 2020 Ooredoo Capital Markets Day and virtual conferences
2020 Ooredoo Capital Markets Day and virtual conferences Upcoming virtual conferences events: Citi 18-19 May and BoA 2-4 June More details Here Save the date: CMD 21st Sep 2020 (location and timing to be confirmed) More details in due course 25
Slide 26: CAPEX & Customers
Group Operations Breakdown Overview Results review Operations review Additional information CAPEX & Customers CAPEX Breakdown (%) Customer Breakdown (%) Others, 13% Others, 4% Myanmar, 7% Qatar , 18% Qatar , 3% Myanmar, 13% Tunisia, 4% Tunisia, 8% Algeria, 11% Algeria, 10% Indonesia, 18% Oman, 12% O
Slide 27: Total Group Loans & Borrowings Breakdown
Group Operations Breakdown Overview Results review Operations review Additional information Total Group Loans & Borrowings Breakdown Total Group Loans and Borrowing (QARm) Total Loans and Borrowing Breakdown Long Term Short Term 41,634 Others , 40,034 3,771 7% 35,083 7,795 29,869 9,263 Indonesia , 3
Slide 28: Debt Profile
Group Results Overview Results review Operations review Additional information Debt Profile 2,000 – Ooredoo Q.P.S.C. level 1,500 650 Undrawn RCF (USD m) 1,000 40 420 90 20 20 500 1,000 1,000 750 630 460 500 500 500 190 20 20 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2043 Issue Loans (in US
Slide 29: Blended ARPU
Blended ARPU Overview Results review Operations review Additional information Qatar (QAR) Iraq (QAR) Oman (QAR) 114 109 112 108 107 60.1 105 29.2 56.1 53.7 54.4 54.7 26.8 25.4 25.3 27.1 52.2 23.1 Indonesia (QAR) Tunisia (QAR) Algeria (QAR) Myanmar (QAR) 7.5 7.3 7.6 6.8 7.1 12.3 12.5 16.2 8.7 8.2 8.2
Slide 30: Service Revenue
Service Revenue Overview Results review Operations review Additional information Service revenue +2% 6,990 6,846 Q1-19 Q1-20 30
Slide 31: Statutory Corporate Tax Rates
Statutory Corporate Tax Rates Overview Results review Operations review Additional information 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 years 2020 and 2021, 20% for tax year 2022 onwards Indone
Slide 32: OPCOs Licence General Information
OPCOs Licence General Information Overview Results review Operations review Additional 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 33: Thank You
Thank You