Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Qatar Telecom (Qtel) Q.S.C. — H1 2009 Earnings Presentation
37 slides from Ooredoo Q.p.s.c's earnings presentation, 2009
Slide 1: The Qtel Group: 1H 2009 Results
The Qtel Group Solidifying positive performance in the face of growing competition 1H 2009 Results
Slide 2: Disclaimer
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-looking stat
Slide 3: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 3
Slide 4: Key 1H developments
Group results Key 1H developments Robust group performance in the face of growing competition and challenging economic conditions • Global economic climate • Foreign exchange impacts Key markets adhering to strategy • Qatar - successfully countering the new competitive launch • Indonesia - realignin
Slide 5: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue ((QARm)) EBITDA ((QARm)) and EBITDA % +42% +36% +89% +102% +70% +97% Significant revenue and EBITDA uplift: Indosat consolidation primary contributor 5 Note: (1) All Indosat results as reported adhere to IFRS which may in some instances differ from INDOGAAP
Slide 6: Net profit and net debt
Group results Net profit and net debt1 Net profit attributable to Qtel shareholders Net debt1 ((QARm)) and net debt / EBITDA (QARm) +38% +50% +1% +33% +3% Continuing to prudently manage our business, delivering solid returns to our shareholders Note: (1) Net Debt = Total interest bearing loans and b
Slide 7: Cash flow from operations and capital expenditure
Group results Cash flow from operations and capital expenditure Cash flow from operations1 ((QARm)) Capex ((QARm)) and capex / revenue ((%))1 +86% +161% +24% +278% +152% +46% Combined robust cash flow growth coupled with investment in growth markets 7 Note: (1) Post-acquisition results
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt1 (QARm) (% as of June 30, 2009) Short-term Long-term 8212 36,821 36 US$1.85bn 29,118 forward start facility3 18,731 647 Note: (1) Short term debt includes debt with a maturity of less than twelve months (2) Net of d
Slide 9: Qtel Q.S.C. funding sources and debt maturity profile
Group results Qtel Q.S.C. funding sources and debt maturity profile Qtel Q.S.C. debt maturity profile (QARm as of June 30 30, 2009) Qtel Q.S.C. committed lines and maturity (millions) • US$ 600 20091 • QAR 750 2009 • US$ 2,000 2 000 20092 • US$ 125 20093 • US$ 1,850 2011 • US$ 3,000 2012 1 US$5bn GM
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers1 Proportional customers1 +2% +36% +436% +367% +575% +268% We continue to focus on market share of revenue not headline subscriber numbers Note: (1) As at 30 June 10
Slide 11: 1H performance summary
Group results 1H performance summary 6 months ended Change June 2009 1H 2009 / 1H 2008 QAR Millions Consolidated revenue 11,543 +42% EBITDA 5,508 +36% Net profit attributable to Qtel shareholders 1,638 +38% Cash flow from operations 7,180 86% g per Earnings p share (in ( Qatari Riyals) y ) 11.17 +8%
Slide 12: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 12
Slide 13: Qtel remains well-positioned for success
Group strategy Qtel remains well-positioned for success Investors Look For.. Qtel Has… A clear and consistent • A vision to be among the top 20 telecommunications companies globally strategy with diversity (by Enterprise Value) by the year 2020 • 3 business lines - consumer mobile, consumer broadban
Slide 14: Consistent and focused regional and business strategy
Group strategy Consistent and focused regional and business strategy The Qtel Group serves more than 52M customers creating a diverse revenue base Customer base breakdown(1) Consolidated revenue breakdown (% share of total base) (% share of total revenue) Tunisia Iraq Al Algeria i Palestine Pakistan
Slide 15: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 15
Slide 16: Group operations: Qatar, Iraq, Oman
Group operations Qtel - Qatar Revenue & EBITDA (%) • A strong first half supported by customer growth and efficiency efforts Qtel – Qatar Asiacell – Iraq (QARm)) (Q (QARm)) (Q • Continued focus on new product and service offerings, superior network, customer retention +11% +49% and service experienc
Slide 17: Group operations: Indonesia, Kuwait
Group operations Indosat - Indonesia Revenue & EBITDA (%) • Subscriber declines consistent with value driven Indosat – Indonesia acquisition strategy to address calling card type (pro-forma for 1H 2008) behavior QARm IDRbn • Increase in ARPU largely a result of eliminating zero-value customers, pric
Slide 18: Group operations: Algeria, Palestine, Tunisia
Group operations Nedjma - Algeria Revenue & EBITDA (%) • New product and service offerings drives strong quarterly performance contributing to top-line Nedjma – Algeria growth QARm DZDm • Higher value focused strategy translating to +22% increase in market share +5% +33% Wataniya y – Palestine • Net
Slide 19: Thank-you
Thank-you Qtel Investor Relations Department Any further Tel: +974-440-0088 questions? Fax: +974-483-0011 investor@qtel com qa investor@qtel.com.qa Upcoming Q3 2009 Financial Highlights – October 2009 events 19
Slide 20: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review • Additional Information 20
Slide 21: Qtel - Qatar
Additional information Qtel - Qatar Key developments Operator importance to group • Revenue, EBITDA and Net Profit up YoY supported Customers: 4.2%; Revenue: 25.1%; EBITDA: 32.9%; Capex: 7.2% by strong customer growth and efficiency efforts • Continued focus on new product and service Pop : 1.7M off
Slide 22: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Sustaining solid top line growth and profitability Customers: 13.4%; Revenue: 15.8%; EBITDA: 17.1%; Capex: 7.5% • Government mobile phone registration program enacted 1H Pop : 30.7M • Network expansion plans in pl
Slide 23: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Fixed license awarded along with international Customers: 3.2%; Revenue: 6.5%; EBITDA: 6.2%; Capex: 2.9% gateway: phased roll-out program underway • MVNO focus on niche segments with impact minimal Pop: 2.98M to dat
Slide 24: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Subscriber declines in line with value driven growth: Customers: 56.4%; Revenue: 25.8%; EBITDA: 26.4% • Consistent with value driven acquisition strategy to address calling card type behavior Pop : 240.3M Indo
Slide 25: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Positive results driven by growth in subscribers as Customers: 2.7%; Revenue: 11.0%; EBITDA: 11.1%; Capex: 5.7% well as focus on customer retention • Incoming call charge removal continues to impact call Pop : 3
Slide 26: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Positive YoY performance : Customers: 11.1%; Revenue: 7.6%; EBITDA: 5.0%; Capex: 7.6% • Overall subscriber base increased by 1M • Continued retention efforts driving down churn Pop : 34.2M • Value-focused V l f d
Slide 27: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group (Revenue and EBITDA @ 50%) • Continued solid performance Customers: 8.4%; Revenue: 5.2%; EBITDA: 5.9%; Capex: 1.5% • Average post-paid base growth of >36% YoY • 3rd license awarded with start of operations expec
Slide 28: Wataniya Palestine and wi-tribe Jordan
Additional information Wataniya - Palestine Key developments Operator importance to group • Network and commercial preparation near completion Customers: N/A; Revenue: N/A; EBITDA: N/A; Capex: 4.0% • Launch hinges on further spectrum release, awaiting ruling Pop : 3.93M estine Pop growth: 3% Mob. pp
Slide 29: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • ~49% year over year growth in revenue Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.02%; Capex: 0.5% • Seasonality impacts analogous with Q2 • Total customers at the end of 1H 2009 were 107,000: Pop : 0.396M es an
Slide 30: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Sustained focus on retention and winback efforts Customers: 0.3%; Revenue: 1.2%; EBITDA: N/A; Capex: 0.02% increasing customer base • Vertical segmentation marketing approach Pop : 25.5M • Continued customer additions
Slide 31: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Asiacell - Iraq Nawras - Oman Indosat - Indonesia Wataniya - Kuwait Nedjma - Algeria Tunisiana - Tunisia Wataniya - Maldives Bravo – KSA 31
Slide 32: Qtel Group structure and presence
Additional information Qtel Group structure and presence(1) 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-tribe (Kuwait) (Cayman ) (Singapore) (Cayman) 49% 100% 55% 100% 100% 8
Slide 33: Key operating country statistics
Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives1 Oman Qatar KSA Tunisia 2009 GDP real growth % 2.8 2.4 5.4 -0.7 5.7 1.9 9.6 -1.0 0.6 (2008) (3.2) (6.1) (7.8) (8.5) (x.x) (6.4) (13.4) (4.2) (4.4) Consumer prices % 4.3 1.5 3.5 4.9 12.8 N/A 1.2 2.8 3.1 (20
Slide 34: Consolidated Statement of Income
Additional information Consolidated Statement of Income - 6 months ended 30 June 2009 For o tthe e ssix months o t s ended e ded 30 June 2009 2008 (Unaudited) QR’000 QR’000 (Restated) Revenue 11 543 357 11,543,357 8 121 707 8,121,707 Other income 967,017 147,022 General and administrative expenses (
Slide 35: Consolidated Statement of Financial Position
Additional information Consolidated Statement of Financial Position - At 30 June 2009 30 Jun 2009 31 Dec 2008 30 Jun 2009 31 Dec 2008 Unaudited Audited Unaudited Audited QR’000 QR’000 QR’000 QR’000 (Restated) (Restated) ASSETS EQUITY AND LIABILITIES Non-current assets Attributable to equity holders
Slide 36: Consolidated Statement of Cash Flows
Additional information Consolidated Statement of Cash Flows - 6 months ended 30 June 2009 For the six months ended 30 June For the six months ended 30 June 2009 2008 2009 2008 (Unaudited) (Unaudited) QR’000 QR’000 QR’000 QR’000 (Restated) (Restated) OPERATING ACTIVITIES FINANCING ACTIVITIES Profit b
Slide 37: Let's Connect
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Qatar Telecom (Qtel) Q.S.C. — H1 2009 Earnings Presentation on 6ix