Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Q3 2021 Earnings Presentation
36 slides from Ooredoo Q.p.s.c's earnings presentation, October 2021
Slide 1: Ooredoo Group Q3 2021 Results
Ooredoo Group Q3 2021 Results October 2021
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
Content s 1 Results review 2 Indosat Ooredoo Hutch Merger 3 Operations review 4 Additional information 3
Slide 4: Group Results: Key Highlights
Group Results Overview Results review Operations review Additional information Key Highlights Solid financial performance in challenging conditions Revenue for the nine Group EBITDA for the Group Net Profit Consolidated customer On September 16, months ended 30 nine-month period was attributable to
Slide 5: Revenue and EBITDA
Group Results Overview Results review Operations review Additional information Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +3 % +7 % 22,118 9,904 +4 % +6% 21,414 7,609 3,463 9,248 7,296 3,252 45% 46% 45% 43% 9M-20 9M-21 Q3-20 Q3-21 9M-20 9M-21 Q3-20 Q3-21 • Healthy 3% Revenue g
Slide 6: Net Profit
Group Results Overview Results review Operations review Additional information Net Profit Net Profit Attributable to Ooredoo shareholders (QARm) Q3 Net Profit (QARm) 9M Net Profit (QARm) +28% +41% 650 650 1,580 1,468 1,119 508 -760 197 9M 9M 9M 2020 9M 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 2020 2021
Slide 7: 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) +18 % - 12% 6,881 3,416 3,022 5,832 - +24 1,309 20 % % 1,051 2,413 16% 14% 1,943 18% 14% 9M-20 9M-21 Q3-20 Q3-21 9M-20 9M-21 Q
Slide 8: Total customers
Group Results Overview Results review Operations review Additional information Total customers Total Customers (Millions) +2 -3% +2% % 119.6 115.9 118.8 120.7 9M-18 9M-19 9M-20 9M-21 • Growing customer numbers in Indonesia, Oman, Algeria, and Iraq 8
Slide 9: Net debt
Group Results Overview Results review Operations review Additional information Net debt Net Debt (QARm) and Net Debt / EBITDA +18 % - 2.5 12% -8% 26,905 22,722 23,553 2.0 2.1 21,691 1.8 1.7 1.5 1.5 1.0 0.5 0.0 9M-18 9M-19 9M-20 9M-21 • Net Debt to EBITDA ratio 1.5x reflects the positive trajectory o
Slide 10: 2021 Q3 performance summary
Group Results Overview Results review Operations review Additional information 2021 Q3 performance summary Group Financials 9M 2021 % Change 2021 Full Year (QAR bn) Actual 9M 2021 / 2020 Guidance over 2020 Revenue 22.1 3.3% -3% to +1% EBITDA 9.9 7.1% -3% to +1% CAPEX 3.0 -11.5% 5bn to 6bn • 9M Reven
Slide 11: Merger of Indosat and H3I: a stronger No. 2 telco in Indonesia
Merger of Indosat and H3I Creating a stronger No. 2 telco in Indonesia Indosat Ooredoo Hutchison • Highly complementary businesses combining to create a new world-class digital telecom and internet company for Indonesia • Combined pre-synergy implied enterprise value of c.US$6.0bn 1 • Merger is bene
Slide 12: Compelling value creation for shareholders
Compelling value creation for shareholders Significant synergy Technology and network Non-network • Highly complementary networks • Increased reach of combined brands and • Opex and lease savings: decommissioning of channels duplicated sites (c. 25-30% of combined • Leveraging best practices of both
Slide 13: Commitment to Indonesia & IOH and positive cash impact
Commitment to Indonesia & IOH and positive cash impact The surviving company will be named as Indosat Ooredoo Hutchison and will remain listed on the Indonesian Stock Market, with Indosat Ooredoo Hutchison issuing new shares to H3I shareholders OG and CKH will become joint controlling shareholde
Slide 14: Contents
Contents 1 Results review 2 Operations review 3 Additional information 14
Slide 15: Qatar
Operations Qatar Overview Results review review Additional information QARm • Strong No.1 position maintained - Ooredoo’ s fixed line and mobile Revenue networks in Qatar ranked among fastest globally EBITDA • Revenue grew by 3% compared to YTD 2020 mainly due to growth in EBITDA Margin Postpaid Ser
Slide 16: Indonesia
Operations Indonesia Overview Results review review Additional information QARm 2,045 1,887 1,933 1,768 1,859 5,865 5,124 • Indosat Ooredoo continues to deliver strong growth, reporting a 14% increase in revenue to QAR 5.9 billion • EBITDA increased by 23% to QAR 2.9 billion mainly driven by solid t
Slide 17: Oman
Operations Oman Overview Results review review Additional information QARm Revenue EBITDA • COVID-19 pandemic contributed to a softening macroeconomic EBITDA Margin environment in Oman and revenues declined 8% yoy, due to 54% 54% lower consumer mobile prepaid revenue partially offset by 51% 51% 52%
Slide 18: Kuwait
Operations Kuwait Overview Results review review Additional information QARm 648 632 641 609 607 1,843 1,880 • COVID-19 pandemic continued to have a negative impact on Kuwait economy as well in Q3’21. Revenue pressure to continue for mid-term due to COVID 19, low pricing and economy slowdown 165 135
Slide 19: Iraq
Operations Iraq Overview Results review review Additional information QARm 1,051 1,037 1,054 2,983 2,755 • Iraqi economy was impacted by weakening purchasing power 852 849 following the 20% devaluation of the Iraqi Dinar and the effect of the COVID-19 pandemic • Although we see a decline in QAR term
Slide 20: Algeria
Operations Algeria Overview Results review review Additional information QARm 1,685 1,702 571 570 566 585 551 • Economic activity in Algeria is showing signs of a slow recovery, despite the continued deprecation of the Algerian Dinar (-7% yoy) • While revenues stood flat at QAR 1.7 billion, in local
Slide 21: Tunisia
Operations Tunisia Overview Results review review Additional information QARm 422 392 392 394 399 1,215 1,124 • Ooredoo Tunisia delivered robust results despite an increase in 179 156 162 167 182 494 511 the number of COVID-19 cases, with revenue of QAR 1.2 billion for the nine months ended 30 Septe
Slide 22: Myanmar
Operations Myanmar Overview Results review review Additional information QARm 315 292 300 872 799 252 232 • Authorities in Myanmar proclaimed a one-year State of Emergency in February 2021, which significantly impacted Ooredoo Myanmar’s revenues 117 131 244 73 56 58 198 • Ooredoo Myanmar reported an
Slide 23: Thank you very much for your votes!
Thank you very much for your votes! Double award winner at the MEIRA (Middle East Investor Relation Association) annual conference… We always appreciate your feedback ! 23
Slide 24: Contents
Content s 1 Results review 2 Operations review 3 Additional information 24
Slide 25: Today's Presenters
Today’s Presenters Mr. Aziz Aluthman Fakhroo Sheikh Mohammed Al Thani George B. Challenor Managing Director Deputy Group CEO and Chief Executive Executive Director, Treasury & Financing Ooredoo Group Officer of Ooredoo Group Ooredoo Qatar • Mr. Aziz Aluthman Fakhroo was appointed as • George joined
Slide 26: Today's Presenters
Today’s Presenters Sara Al Sayed Andreas Goldau, CFA Specialist, Investor Relations Senior Director, Investor Relations Ooredoo Group Ooredoo Group • Sara joined Ooredoo in 2013 and is currently • Andreas joined Ooredoo in 2009 and holds the role of working in the Investor Relations team. Prior to H
Slide 27: Additional Information: Key Operations Importance to Group
Additional Information Overview Results review Operations review Additional information Key Operations Importance to Group Revenue EBITDA (QARm) (QARm) 22,53 21,96 21,41 22,11 9,248 9,904 9,337 9,664 1 5 4 8 9M-18 9M-19 9M-20 9M-21 % delta 9M-18 9M-19 9M-20 9M-21 % delta 27
Slide 28: Group Operations Breakdown: CAPEX & Customers
Group Operations Breakdown Overview Results review Operations review Additional information CAPEX & Customers CAPEX Breakdown Customer Breakdown (%) (%) Myanmar, Myanmar, Others, 2% Others, 1% 3% 11% Tunisia, 5% Qatar , Qatar , 3% 16% Tunisia, 6% Algeria, 5% Algeria, 11% Kuwait, 7% Kuwait, 2% Oman,
Slide 29: Total Group Debt Breakdown
Group Operations Breakdown Overview Results review Operations review Additional information Total Group Debt Breakdown Total Group Debt Total Group Debt (QARm) Breakdown Long Term Short Term Others , 37,482 3% 31,828 11,693 30,162 Indonesia , 5,591 5,570 25,215 14% 2,162 25,789 26,237 24,592 23,054
Slide 30: 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 (USD m) 680 Undraw 150 n RCF 500 20 1,000 20 1,000 750 465 500 500 500 20 80 20 2022 2023 2024 2025 2026 2027 2028 2029 2031 2043 Issue Loans (in USD m) Facility Usage Rate * Maturity
Slide 31: Service Revenue
Service Revenue Overview Results review Operations review Additional information Service revenue (QARm) +3 % +4 % 20,558 21,143 7,319 7,011 9M-20 9M-21 Q3-20 Q3-21 31
Slide 32: Dividend policy
Overview Results review Operations review Additional information Dividend policy • The Ooredoo Board has approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40% to 60% of normalized earnings | | 32
Slide 33: Blended ARPU
Blended ARPU Overview Results review Operations review Additional information Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 113 113 110 23.7 54.5 102 101 22.3 50.8 50.4 59.9 59.1 60.5 62.6 62.6 63.8 25.5 23.3 23.7 90 19.0 19.6 45.1 44.2 44.3 21.6 22.9 17.8 18.2 19.3 20 20 20 21 21
Slide 34: 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 35: Statutory Corporate Tax Rates
Statutory Corporate Tax Rates Overview Results review Operations review Additional information 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 36: Thank You
Thank You