Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — H1 2014 Earnings Presentation
37 slides from Ooredoo Q.p.s.c's earnings presentation, 2014
Slide 1: Ooredoo Group 1H 2014 Results
Ooredoo Group 1H 2014 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 Operations review 3 - Ooredoo 1H 2014 analyst presentation
Slide 4: Key 2014 1H Highlights
Group Results Overview Results Review Strategy Review Operations Review Additional Information Key 2014 1H Highlights Group revenue down by 3% due to challenges in some markets • Strong performances in Qatar, Oman and Algeria offset by the decline of revenue in the highly competitive markets of Indo
Slide 5: Revenue and EBITDA
Group Results1 Overview Results Review Strategy Review Operations Review Additional Information Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +4% +6% -3% +8% -2% 17,026 16,377 16,504 15,446 7,798 7,612 -10% 7,204 6,870 47% 48% 45% 42% 1H'11 1H'12 1H'13 1H'14 1H'11 1H'12 1H'13 1H'
Slide 6: Net Profit and Net Debt
Group Results Overview Results Review Strategy Review Operations Review Additional Information Net Profit and Net Debt1 Net Profit Attributable to Ooredoo Shareholders (QARm) Net Debt1 (QARm) and Net Debt/EBITDA Net Foreign Exchange +4% +32% +28% 31,443 -2% 30,248 1,731 -7% -12% 1,533 1,704 1,352 24
Slide 7: Free Cash Flow and Capital Expenditure
Group Results Overview Results Review Strategy Review Operations Review Additional Information Free Cash Flow and Capital Expenditure Free Cash Flow1 (QARm) Capex (QARm) and Capex/Revenue (%) +6% +24% 3,952 3,739 +12% -9% 3,194 3,019 2,910 -18% 2,700 2,377 -22% 1,859 24% 22% 18% 18% 1H'11 1H'12 1H'1
Slide 8: Total Group Debt Breakdown
Group Results Overview Results Review Strategy Review Operations Review Additional Information Total Group Debt Breakdown Total Group Debt (QARm) Total Group Debt Breakdown (as of June 30, 2014) Short-term Others Long-term 8% 46,159 46,843 43,193 Indonesia 2,363 42,029 15% 4,204 18,960 8,133 43,796
Slide 9: Debt Profile – Ooredoo Q.S.C. Only
Group Results Overview Results Review Strategy Review Operations Review Additional Information Debt Profile – Ooredoo Q.S.C. Only (US$ millions) 2,000 Loans 1600 Bonds Sukuk 1,500 1250 1000 1000 1000 1000 1,000 750 498 500 500 500 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2043 Lo
Slide 10: Total and Proportional Customers
Group Results Overview Results Review Strategy Review Operations Review Additional Information Total and Proportional Customers (in „000) Total Customers Proportional Customers +2% +26% +2% +10% +8% 93,886 64,771 92,005 63,267 83,697 +13% 77,489 50,144 44,461 1 1H'11 1H'12 1H'13 1H'14 1H'11 1H'12 1H
Slide 11: 2014 1H Performance Summary
Group Results Overview Results Review Strategy Review Operations Review Additional Information 2014 1H Performance Summary 6 months ended 1H 2014 / 2014 Annual QAR Millions June 2014 1H 2013 Guidance Consolidated revenue 16,504 -3% 0 - 3% EBITDA 6,870 -10% (-1) - (-3%) Net profit attributable to Oor
Slide 12: Contents
Contents Results review Operations review 12 - Ooredoo 1H 2014 analyst presentation
Slide 13: Qatar
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Qatar QARm No.1 market position maintained in a fast growing market Revenue Competition in 4G, but benefitting from first mover +9% advantage 3,502 3,215 Customer numbers up by 9% Positive devel
Slide 14: Iraq
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Iraq QARm Revenue Day to day operation continues on normal level -8% 3,502 despite the political situation. Asiacell is monitoring 3,220 the situation very closely. No major damage on network, conting
Slide 15: Indonesia
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Indonesia QARm Revenue EBITDA & Margin In local currency revenue has been relatively stable -17% 4,375 Areas outside of Java to be modernized by year 3,609 2,098 -21% end Good momentum for cellular
Slide 16: Oman
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Oman QARm Revenue Strong Revenue and customer growth +10% 1,066 Fixed and mobile business growing, voice increase 969 offsets decrease in SMS Data and B2B business showing strong growth Higher r
Slide 17: Kuwait
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Kuwait QARm Revenue EBITDA & Margin First Q-on-Q revenue growth of 1.6% after one year -19% 37% market share in Q2 and 32% YTD. 1,341 1,092 Total active customer base (1.6M) restored to pre -43% 4
Slide 18: Algeria
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Algeria QARm Revenue EBITDA & Margin +24% +19% Strong revenue and EBITDA increase 2,359 946 Leading data market share due to first mover 3G 798 1,907 advantage 42% 40% Promotion and apps around th
Slide 19: Tunisia
Group Operations Overview Results Review Strategy Review Operations Review Additional Information Tunisia QARm Revenue EBITDA & Margin Difficult economic conditions as consumer inflation -5% exceeds 7% with GDP growth projected at 3% 1,255 1,198 -14% Tunisiana rebrands to Ooredoo with new brand
Slide 20: Group operations: Myanmar
Results Strategy Operations Additional Group operations Review Review Review Information Myanmar Third quarter 2014 launch of 3G+ network in the major population areas of Mandalay, Nay Pyi Taw and Yangon Ooredoo Myanmar team now at >900 employees (more than 70% Myanmar) Over 1,000 km of fibre
Slide 21: Contents
Contents Results review Strategy review Operations review Additional information 21 - Ooredoo 1H 2014 analyst presentation
Slide 22: Key Operations Importance to Group
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Key Operations Importance to Group Revenue (QARm) EBITDA (QARm) 17,026 16,504 16,377 7,798 7,612 15,446 7,204 6,870 1H'11 1H'12 1H'13 1H'14 1H'11 1H'12 1H'13 1H'14 Qatar 2,862 3,068 3,215 3,502 Qa
Slide 23: Key Operations Importance to Group
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Key Operations Importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar Others Mynamar 3.7% 2.0% 7.9% 3.2% 1.2% 7.4% 5.6% Iraq Algeria 12.4% 11.6% Iraq Algeria 19.6% 15.1% Kuwa
Slide 24: Blended ARPU development
Results Strategy Operations Additional Additional information Review Review Review Information Blended ARPU development (QAR) Qatar Iraq Oman Maldives Palestine 140.2 142.3 56.4 56.2 56.7 54.9 45.7 37.4 133.0 133.0 129.5 134.0 44.0 43.4 50.1 65.7 65.1 65.6 41.5 41.9 33.5 34.7 34.7 47.6 64.1 64.7 64.
Slide 25: Qatar
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Qatar Key Developments Operator Importance to Group No.1 market position maintained in a fast growing market Customers: 3.2%; Revenue: 21.2%; EBITDA: 25.4%; Capex: 7.4% Competition in 4G, but
Slide 26: Iraq – Asiacell
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Iraq Key Developments Operator Importance to Group Day to day operation continues on normal level despite the Customers: 12.4%; Revenue: 19.5%; EBITDA: 22.5%; Capex: 19.6% political situation. A
Slide 27: Indonesia
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Indonesia Key Developments Operator Importance to Group In local currency revenue has been relatively stable Customers: 58.6%; Revenue: 21.9%; EBITDA: 24.2%; Capex: 30.9% Main network areas in
Slide 28: Oman – Nawras
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Oman Key Developments Operator Importance to Group Revenue and customer growth Customers: 2.6%; Revenue: 6.5%; EBITDA: 7.9%; Capex: 8.0% Fixed and mobile business growing, voice increase offse
Slide 29: Kuwait – Wataniya
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Kuwait Key Developments Operator Importance to Group First Q-on-Q revenue growth of 1.6% after one year Customers: 2.5%; Revenue: 6.6%; EBITDA: 3.4%; Capex: 7.6% 37% market share in Q2 and 32%
Slide 30: Algeria – Nedjma
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Algeria Key Developments Operator Importance to Group Strong revenue and EBITDA increase Customers: 11.6%; Revenue: 14.3%; EBITDA: 13.8%; Capex: 15.1% Leading data market share due to first mo
Slide 31: Tunisia – Tunisiana
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Tunisia Key Developments Operator Importance to Group Difficult economic conditions as consumer inflation exceeds Customers: 7.9%; Revenue: 7.3%; EBITDA: 8.2%; Capex: 3.7% 7% with GDP growth pro
Slide 32: Palestine Wataniya
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Palestine Key Developments Operator Importance to Group • Continued overall slow economy impacted by political Customers: 0.7%; Revenue: 0.9%; EBITDA: 0.3%; Capex: 1.1% escalations. • Q2'14 ARPU a
Slide 33: Maldives Wataniya
Additional Information Overview Results Review Strategy Review Operations Review Additional Information Maldives Key Developments Operator Importance to Group Q2 weaker quarter due to off season for roaming business. Customers: 0.3%; Revenue: 0.6%; EBITDA: 0.4%; Capex: 0.4% Sub & revenue growth
Slide 34: 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 1H 2014 at Customers: 0.2%; Revenue: N/A; EBITDA: N/A; Capex: N/A 183K compared to 200K
Slide 35: 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 36: 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 % 2.7 5.8 4.2 0.8 3.7 5.1 6.1 3.8 2.7 (2012) (3.3) (6.3) (10.3) (6.2) (0.
Slide 37: Thank you
Thank you Follow us Website: ooredoo.com Email: IR@ooredoo.com Twitter: @OoredooIR Upcoming events 2014 1H Results – July 2014 TBD