Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — FY2013 Earnings Presentation
41 slides from Ooredoo Q.p.s.c's earnings presentation, 2014
Slide 1: Ooredoo Group FY 2013 Results
Ooredoo Group FY 2013 Results
Slide 2: Disclaimer
Disclaimer Ooredoo (parent company Ooredoo Q.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 Results review Strategy review Operations review 3 | FY 2013 | Ooredoo Group Results Call
Slide 4: Key FY 2013 Highlights
Group Results Overview Results Review Strategy Review Operations Review Additional Information Key FY 2013 Highlights Group revenue growth of 1% • Strong performances in Qatar, Algeria and Iraq were partially offset by competitive dynamics and challenging economic environment in Kuwait and Tunisia.
Slide 5: Group results: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +5% +1% +16% +5% -6% 33,476 33,851 +19% 31,745 15,567 14,796 14,640 27,377 12,465 46% 47% 47% 43% 12M'10 12M'11 12M'12 12M'13 12M'10 12M'11 12M'12 12M'13 Top line increasing, however pressure on margins due to investmen
Slide 6: Group results: Net profit and net debt
Group results Net profit and net debt1 Net profit attributable to Ooredoo shareholders Net debt1 (QARm) and net debt / EBITDA (QARm) Net Foreign Exchange +13% -12% +1% +4% 20% 2,947 2,579 28,784 -10% 27,268 27,573 2,888 2,606 22,740 3,171 3,197 2,785 2,652 2.1 1.8 1.9 1.9 103 (46) (224) (618) 12M'10
Slide 7: Group results: Free cash flow and capital expenditure
Group results Free cash flow and capital expenditure Free cash flow 1(QARm) Capex (QARm) and capex / revenue (%) +27% 9,298 +2% +44% +11% 4,869 4,951 -5% 7,316 6,942 6,575 3,380 -67% 1,658 26% 27% 21% 22% 12M'10 12M'11 12M'12 12M'13 12M'10 12M'11 12M'12 12M'13 Targeted investments in our key markets
Slide 8: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (as of December 31, 2013) Short-term Long-term Others 46,852 46,386 45,770 6% 2,610 39,765 Indonesia 8,127 16% 13,953 7,373 44,242 37,643 32,433 32,392 1 Qatar 78% 12M'10 12M'11 12M'12 12M'13 Flexible debt ma
Slide 9: Debt Profile – Ooredoo Q.S.C. Only
Group Results Debt Profile – Ooredoo Q.S.C. Only (US$ millions) 1,600 1400 Loans Bonds Sukuk 1,400 1250 1,200 1000 1000 1000 1000 1,000 750 750 800 600 600 500 500 400 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2043 Loan Type Issue Interest/ Amount Usage Rate Maturity Bon
Slide 10: Total and proportional customers
Group results Total and proportional customers Total customers Proportional customers +3% +11% +12% 95,901 92,907 +31% +4% 83,352 74,140 65,869 62,716 +15% 47,903 41,697 12M'10 12M'11 12M'12 12M'13 12M'10 12M'11 12M'12 12M'13 Customer growth mainly driven by Indonesia, Oman and Algeria 10 | FY 2013
Slide 11: 2013 performance summary and 2014 guidance
Group results 2013 performance summary and 2014 guidance 12 months ended 2013 Annual 2014 Annual 2013 / 2012 QAR Millions December 2013 Guidance Guidance Consolidated revenue 33,851 +1% +2-6% 0 to +3% EBITDA 14,640 -6% +1-5% -3 to -1% Net profit attributable to Ooredoo 2,579 -12% - - shareholders Ea
Slide 12: Contents
Contents Results review Strategy review Operations review 12 | FY 2013 | Ooredoo Group Results Call
Slide 13: Ooredoo Myanmar: The Basics
Ooredoo Myanmar: The Basics • Population of approximately 65m • “Greenfield” opportunity: mobile phone penetration of less than 10 % • More than 90 companies bid for two telecom licenses Ooredoo Myanmar’s Vision: Enriching people’s lives - Promise of human growth
Slide 14: Ooredoo Myanmar: Where We Are
Ooredoo Myanmar: Where We Are • Acceptance of license January 30 2014 • 900 MHz and 2100 MHz spectrum • Ross Cormack appointed as CEO • Tower construction companies and key network vendors mandated • First successful technical call • First tower built, Yangon switch complete, first successful call c
Slide 15: Ooredoo Myanmar: Next Steps
Ooredoo Myanmar: Next Steps • Planned summer launch in Mandalay, Nay Pyi Taw and Yangon • Advanced, 3G-wide data network • Covering 97% of population within five years Cash investment in Myanmar in 2014: US$ 1 bn
Slide 16: Contents
Contents Results review Strategy review Operations review 16 | FY 2013 | Ooredoo Group Results Call
Slide 17: Group operations: Qatar
Group operations Qatar QARm Revenue • Healthy revenue growth +6% 6,590 • EBITDA and EBITDA margin impacted by brand roll out 6,220 • Leading market share position maintained despite aggressive price campaign by the competitor. • YOY customer no. grew by 13%. 12M'12 12M'13 • Strong growth in mobile b
Slide 18: Group operations: Indonesia
Group operations Indonesia QARm Revenue EBITDA & Margin • Local currency revenue increased, driven by Cellular Data revenue and Fixed Data business -5% -13% 8,804 8,371 4,420 • Promoting data successfully (e.g. IM3 online) Cellular 3,862 data traffic/ revenue are gaining momentum in the 50% moderniz
Slide 19: Group operations: Iraq
Group operations Iraq QARm Revenue • Elevated competition level continued during the last +3% 7,070 quarter of 2013 6,878 • Asiacell focusing on value segments to reinforce its leading value-share position. • Subscriber growth of 7% YoY. • EBITDA % level slight decrease due to competition 12M'12 12M
Slide 20: Group operations: Oman
Group operations Oman QARm Revenue • Revenue growth driven by mobile and fixed data +4% revenues, offset partially by a decline in SMS. 1,990 1,907 • Improvement in EBITDA for 2013 • Net profit was affected by higher depreciation due to the investment in network modernization and expansion. • Total
Slide 21: Group operations: Kuwait
Group operations Kuwait QARm Revenue EBITDA & Margin • Network modernization completed including the rollout of LTE and U900 -13% 786 • Wataniya has now the most advanced network 2,880 2,500 1,101 experience in Kuwait and have launched an advertising 592 -39% campaign to improve the perception. 48%
Slide 22: Group operations: Algeria
Group operations Algeria QARm Revenue EBITDA & Margin • Ooredoo Algeria launched 3G services in 10 Wilayas in +12% +15% December, widest 3G coverage 3,884 1,583 3,479 1,374 • Subscriber and value market share increased • Successful rebranding to Ooredoo started in November, 39% 41% already 80% brand
Slide 23: Group operations: Tunisia
Group operations Tunisia QARm Revenue EBITDA & Margin • Continued political and economic instability • Strong growth in data revenues with rising smartphone -5% -3% penetration 2,633 2,504 1,350 1,310 • Slight decline in market share to 53% with strong market value leadership 51% 52% • Rebranding be
Slide 24: Ooredoo Capital Markets Day
Ooredoo Capital Markets Day Save the date: “Ooredoo Capital Markets Day” in Doha May 12, 2014 24 | FY 2013 | Ooredoo Group Results Call
Slide 25: Contents
Contents Results review Strategy review Operations review Additional information 25 | FY 2013 | Ooredoo Group Results Call
Slide 26: Key operations importance to Group
Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 33,475 33,851 31,745 15,547 14,796 14,640 27,377 12,465 12M'10 12M'11 12M'12 12M'13 Qatar 5,400.0 5,704 6,220 6,590 12M'10 12M'11 12M'12 12M'13 Indonesia 7,942 8,550 8,804 8,371 Qatar 2,878 2,948 3,249 3,273 Iraq
Slide 27: Key operations importance to Group
Additional information Key operations importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar 5.0% Others 2.0% 8.0% 7.8% 3.0% 1.3% Iraq Algeria 11.2% Iraq 9.9% Algeria 14.0% 19.0% Kuwait 2.1% Oman 2.5% Kuwait 14.0% Indonesia 30.0% Oman Indonesia 8.0% 62.2% 2013 Capex = QAR 9,297
Slide 28: Blended ARPU development
Additional information Blended ARPU development (QAR) Qatar Iraq Oman Maldives KSA Palestine 45.5 45.7 36.6 37.4 61.6 68.2 70.8 44.0 35.4 34.7 34.7 58.8 65.7 65.1 42.4 41.5 123.9 33.5 56.4 56.2 56.7 54.8 64.1 63.8 40.3 153.2 148.7 111.4 140.2 142.3 102.9 101.8 100.3 105.2 133.0 133.0 Q3'12 Q4'12 Q1'
Slide 29: Ooredoo Qatar
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Qatar Key Developments Operator Importance to Group • Healthy revenue growth Customers: 3.0%; Revenue: 19.5%; EBITDA: 22.4%; Capex: 7.9% • EBITDA and EBITDA margin impacted by brand roll out • Lea
Slide 30: Asiacell Iraq
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Iraq Key Developments Operator Importance to Group Elevated competition level continued during the last Customers: 11.2%; Revenue: 20.9%; EBITDA: 24.8%; Capex: 14.4% quarter of 2013 Pop : 34.8M
Slide 31: Indosat Indonesia
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Indonesia Key Developments Operator Importance to Group Local currency revenue increased, driven by Cellular Customers: 62.2%; Revenue: 24.7%; EBITDA: 26.4%; Capex: 30% Data revenue and Fixed Da
Slide 32: Nawras Oman
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Oman Key Developments Operator Importance to Group Revenue growth driven by mobile and fixed data Customers: 2.5%; Revenue: 5.9%; EBITDA: 6.4%; Capex: 7.9% revenues, offset partially by a declin
Slide 33: Wataniya Kuwait
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Kuwait Key Developments Operator Importance to Group Network modernization completed including the rollout of LTE and Customers: 2.1%; Revenue: 7.4%; EBITDA: 4.6%; Capex: 14.2% U900 Wataniya h
Slide 34: Algeria Nedjma
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Algeria Key Developments Operator Importance to Group Customers: 9.9%; Revenue:11.5%; EBITDA:10.8%; Capex:19% • Ooredoo Algeria launched 3G services in 10 Wilayas in December, widest 3G coverage P
Slide 35: Tunisiana
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Tunisia Key Developments Operator Importance to Group Continued political and economic instability Customers: 7.8%; Revenue: 7.4%; EBITDA: 8.9%; Capex: 5.1% Strong growth in data revenues with
Slide 36: Palestine Wataniya
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Palestine Key Developments Operator Importance to Group Customers: 0.7%; Revenue: 1%; EBITDA: 0.2%; Capex: 0.5% Q4 EBITDA improved over Q3 mainly driven by the increase in the gross margin and t
Slide 37: Maldives Wataniya
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Maldives Key Developments Operator Importance to Group Q4 Ooredoo brand launched . Customers: 0.3%; Revenue: 0.5%; EBITDA: 0.3%; Capex: 0.5% Subscriber and revenue growth. Pop : 0.3M (2013 est
Slide 38: Pakistan and Philippines wi-tribe
Additional Information Overview Results Review Strategy Review Operations Review Additional Information wi-tribe Pakistan Key Developments Operator Importance to Group Fixed wireless customer base at the end of 2013 at 200K Customers: 0.2%; Revenue: N/A; EBITDA: N/A; Capex: N/A compared to 206K sa
Slide 39: Statutory Corporate Tax Rates
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Statutory Corporate Tax Rates Statutory Losses C/Fwd Notes Tax Rate Allowed Algeria 25% 4 years Indonesia 25% 5 years Iraq 15% 5 years GCC companies (including NMTC)are exempted and are subjected
Slide 40: Key Operating Country Statistics
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Key Operating Country Statistics Algeria Indonesia Iraq Kuwait Maldives Oman Qatar KSA Tunisia 2013 (est.) GDP real growth % 3.4 6.3 14.7 1.9 2.5 3.9 4.9 4.2 3.3 (2012) (2.6) (6.0) (10.2) (6.3) (1
Slide 41: Thank you
Thank you Follow us Website: ooredoo.com Email: IR@ooredoo.com Twitter: @OoredooIR Upcoming events 2013 FY Results – March 2014 TBD