Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Qtel Group — Investor Day (January 2012)
38 slides from Ooredoo Q.p.s.c's investor day presentation, Jan 26, 2012
Slide 1: Welcome: Qtel Group 2012 Capital Markets Day
Welcome Qtel Group 2012 Capital Markets Day January 26, 2012 Doha Qatar
Slide 2: Disclaimer
Disclaimer • Q t Telecom Qatar T l (Qtel) (Qt l) Q.S.C. Q S C and d the th group off companies i which hi h it forms f partt off (Qtel) (Qt l) cautions ti investors i t that th t certain t i statements contained in this document state Qtel management's intentions, hopes, beliefs, expectations, or pr
Slide 3: The Qtel Group
The Qtel Group Mr. Ajay Bahri, Chief Financial Officer - Qtel Group January 26, 2012
Slide 4: Where we are today
Where we are today 1 1. Top line growth continues to trend in line with guidance (9M 2011: Revenue +17%, EBITDA +15%). Margins remain stable and high (48%). 2. Investment grade credit ratings maintained (Moody’s “A2”, S&P “A”, Fitch “A+”). 3. US$2.75bn bonds issued out of GMTN program in Q4 2010 – H
Slide 5: Key financial issues being addressed
Key financial issues being addressed Foreign exchange risk • Update of FX hedging policy for the Group approved. • Appropriate hedging levels achieved; in some emerging markets no suitable hedging instruments available or cost prohibitive. Debt refinancing risk • Pre-emptive bond issuance in Oct 201
Slide 6: Efficiency program underway
Efficiency program underway • The Qtel Group launched operational improvement programs across all OpCos. • 2012 Strategic Business Planning Process addresses a reduction of the performance gaps evaluated in the prior Group Benchmarking Project. • Qtel Group OpCos project teams now in place: Use ro
Slide 7: OpCo progress to date
OpCo progress to date Qatar - Program up and running Oman - Program up and running. running Good progress on network cost reductions Kuwait - “Quick Win” Program g started in 2011 Tunisia - Program up and running. Indonesia – Tower Project, Voluntary Separation Scheme; “Quick Win” Program started in
Slide 8: Strategic Sourcing
Strategic Sourcing Focus on high spend – Radio: Core and transmission contribute to more than 50% of the areas total Qtel Group Capex. – Frame agreements in place with all major technology and IT Leverage group providers: All OpCos can access more competitive pricing based spend d volumes l on group
Slide 9: Strategic Sourcing contd.
Strategic Sourcing contd. – Leveraging the technology inflection point to negotiate better outcomes for the group. – Have worked with OpCos to modernize their network in 2011: Network Wataniya Palestine and Tunisiana. modernization – Currently working with Wataniya Kuwait, Nawras, Wataniya plans Mal
Slide 10: The Qtel Group
The Qtel Group Dr. Nasser Marafih, Chief Executive Officer - Qtel Group & Mr. Jeremy Sell, Chief Strategy Officer – Qtel Group January 26, 2012
Slide 11: Our journey so far
Our journey so far For the last 5 years, our vision has been: “To be among the top 20 telecommunications companies in the world by 2020.” 10
Slide 12: In 2006 we were alone
In 2006 we were alone 11
Slide 13: Today we're in 17 markets
Today we’re in 17 markets 12
Slide 14: Revenue Growth vs regional competitors
We’ve grown faster than our regional competitors Revenue Growth CAGR Qtel 57% Etisalat 18% STC 11% Zain 3% 2006 2007 2008 2009 2010 13 Source: Capital IQ, Indexed to 2006
Slide 15: Revenue Growth vs international competitors
…and also international competitors Revenue Growth CAGR Qtel 57% Axiata 40% America Movil 27% Vimpelcom 11% Vodafone 3% 2006 2007 2008 2009 2010 14 Source: Capital IQ, Indexed to 2006
Slide 16: We've delivered on our 2006 targets
We’ve delivered on our 2006 targets 2010 Targets 2010 Actuals Customers >70 M 74 M Markets 15 17 Revenues >$7 B $7.4 B EBITDA >$2.8 B $3.4 B 15
Slide 17: We've diversified our portfolio
We’ve diversified our portfolio 80% Consumer Mobile 71% MENA 3% 28% Consumer Broadband Asia Pacific 1% 11% Enterprise Subcontinent 16 Note: Based on 2011 revenue
Slide 18: International Revenue: more diversified than competition
We’re more diversified than our competition International Revenue 3% 32% 23% 80% 17 Note: Based on 2010 Group revenues Source: Company websites
Slide 19: EBITDA: strong margins
We continue to deliver strong margins EBITDA 70% 2006 2010 60% 50% 40% 30% 20% 10% 0% Qtel Zain STC Etisalat Axiata Maxis America Vodafone Movil Regional Global 18 Source: Capital IQ
Slide 20: Return on invested capital (ROIC)
Our ROIC has declined but is improving Return on invested capital (ROIC) 60.3% 16.7% 15% 11.9% 10.4% 10.9% WACC RANGE 10.5% 2006 2007 2008 2009 2010 19 Note: Post tax, including goodwill
Slide 21: Total Return to Shareholders (TRS)
Shareholder returns are average Total Return to Shareholders (TRS) 31 May 2006 – 07 Oct 2011 4% 5% 6% 12% -4% -17% -21% Emerging Global MSCI Qtel Markets Orascom STC Etisalat Telecom Qatar Group Telecom Index Index 20 Source: DataStream
Slide 22: Telecom is facing a storm
Telecom is facing a storm … Growth is slowing even in growth markets New entrants and increasing competition Prices are declining rapidly Onlyy partially p y able to monetize the data explosion p New innovations are threatening revenue 21 21
Slide 23: Telecom is facing a new bright future
ATelecom is facing new bright future aisstorm on its … way … Usage continues to grow Consumers spend more time on TMT services Smartphone users have a higher ARPU… …and smartphones p are reaching g emerging g g markets New growth shows promise 22 22
Slide 24: In summary
In summary Past performance Industry trends • Exceptional growth delivering • Slowing growth & increasing on 2006 strategy competition • Outperformed many peers in • Data revolution changing growth and EBITDA telecom economics • Returns declined as we’ve • New revenue opportunities invested, but are
Slide 25: We've revised our vision and values
We’ve revised our vision and values Our Vision Enriching people’s lives as a leading international communications company دوﻟﻴﺔ اﺋﺪة راﺋﺪة ﻛﺸﺮﻛﺔ اﺗﺼﺎﻻت دوﻟ ﺔ ﺣﻴﺎة اﻟﻨﺎس ﻛﺸ ﻛﺔ ﻧﺜﺮي ﺣ ﺎة ﻧﺜ ي Our Values • Make a Difference! • Engage Others • Respect All 24
Slide 26: Our strategy covers all horizons of growth
Our strategy covers all 3 horizons of growth O i Options ffor future f “Known” opportunities Core business 3 2 1 Grow and protect Launch, grow & Plant seeds & build accelerate new businesses 25
Slide 27: We are evolving to change our focus
We are evolving to change our focus From To Diversified market positioning… … Customer experience leader Mobile operator … … broadband company & beyond Deal ea maker a e … … performance manager 26
Slide 28: Our new Group Strategy: Drive
Our new Group Strategy: Drive Differentiate on Strengthen g our In est in ne Invest new gro growth th customer experience foundations 27
Slide 29: Differentiate on customer experience
Our new Group Strategy: Drive Differentiate on Strengthen g our In est in ne Invest new gro growth th customer experience foundations What? Why? • “Know” Know our customers • Slowing growth, growth increasing competition and declining margins • Embrace customer • Customer experience lowers costs and
Slide 30: Strengthen our foundations
Our new Group Strategy: Drive Differentiate on Strengthen g our In est in ne Invest new gro growth th customer experience foundations What? Why? • Work smarter and work • Best performing companies are leaders in talent development better together and management • Increase productivity • Our returns
Slide 31: Invest in new growth
Our new Group Strategy: Drive Differentiate on Strengthen g our In est in ne Invest new gro growth th customer experience foundations What? Why? • Grow B2B & IT services • Long-term Long term growth delivers superior shareholder returns • Move into fiber in • Growth in our core markets is declining,
Slide 32: Our new Group Strategy: Drive summary
Our new Group Strategy: Drive Differentiate on Strengthen g our In est in ne Invest new gro growth th customer experience foundations • “Know” Know our customers • Work smarter and work • Grow B2B & IT services • Embrace customer better together • Move into fiber in experience mindset • Increase pro
Slide 33: New structure to support implementation
New structure to support implementation New Group Chief Executive Officer Roles Dr. Nasser Marafih Chief Transformation Officer OpCo CEOs Sohail Qadri Chief Officer Small Chief Officer Chief Chief Human Chief Chief General & Medium OpCos p New Businesses Operating p g Officer Resources Officer Finan
Slide 34: We have 2016 objectives aligned with Drive
We have 2016 objectives aligned with Drive Objective & Measure • 1 Deliver above average shareholder returns (TRS) Financial •2 Increase return on capital (ROCE) metrics g •3 Sustain margins ((EBITDA)) •4 Continue growing (Revenue) •5 Lead customer experience (NPS) Strategic •6 Grow non-mobile reven
Slide 35: Qtel's Investment Focus
We will maintain our disciplined focus Qtel’s Investment Focus Geographies Sub-Saharan Asia Latin Globally Africa MENA America dispersed Pacific Sector Full range of Core Select adjacencies adjacencies Target size Small Large Investment model Minority Minority with Majority (little control) operatio
Slide 36: M&A will continue to support our growth
M&A will continue to support our growth • Scale still matters; value exists in expansion • But,, need further ‘value creation’ before more M&A • Transitioning from ‘Deal-Maker’ to ‘Performance Manager’ • Support our core business, & accelerate new growth • Consider transformative M&A deals opportuni
Slide 37: In Summary
In Summary • Focused Group strategy around 3 themes: – Differentiating on Customer Experience – Strengthening our foundations – Investing in new growth • Increased focus on group identity and performance management • Continued disciplined M&A strategy 36
Slide 38: Thank-you
Th k Thank-you Qtell G Qt Group Investor I t Relations R l ti Department D t t Any further Qtel Headquarters Building – PO Box 217 questions? West Bay, Doha IR@qtel.com.qa Upcoming FY 2011 Financial Highlights – March 4, 2012 events