Vodafone Qatar Qsc · QSE:VFQS
Vodafone Qatar Qsc — Vodafone Qatar P.Q.S.C. — FY2022 Earnings Presentation
31 slides from Vodafone Qatar Qsc's earnings presentation, Jan 26, 2023
Slide 1: Vodafone Qatar P.Q.S.C. Financial Performance: Year ended 31 December 2022
Vodafone Qatar P.Q.S.C. Financial Performance: Year ended 31 December 2022
Slide 2: Disclaimer
Disclaimer • The following presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. • This presentation may
Slide 3: Strategy and Performance Highlights
Strategy and Performance Highlights Hamad Al-Thani Chief Executive Officer
Slide 4: Key Messages (1 / 2)
Key Messages (1 / 2) Best Ever • Total Revenue exceeds 3 billion for • Net Profit exceeds half a billion for Financial Results the first time the first time FY22 Total Revenue is QR 3,066m (+21.4% YoY) FY22 Net Profit is QR 502m (+53.4% YoY) • Revenue Market Share +3.1pts YoY • Mobility Customer Mar
Slide 5: Key Messages (2 / 2)
Key Messages (2 / 2) Consistently among the Diversification Regional Telco Growth Leaders Network Investments on Track Agenda is on Track % of Service Revenue 25% Our Diversification 7% ✓ Radio Access Network sites +35% YoY Initiatives include: ✓ We are consistently ranked as one of the fastest grow
Slide 6: Market Performance: VQ is Driving >50% of the Market Revenue Growth
Market Performance ⋮ VQ is Driving >50% of the Market Revenue Growth Total Market Revenue (in QRmn) Market Share +12.3% YoY Total Revenue Mobility Subscriber 10,732 Market Share Market Share +1,180 Q3 FY22 TTM Q3 FY22 9,553 + 623 2,956 2,334 YoY +3.1pts YoY +2.9pts 27.5% 42.2% Q3 FY21 TTM Q3 FY22 TT
Slide 7: Regional Performance: Leader in Revenue and EBITDA Growth
Regional Performance ⋮ Leader in Revenue and EBITDA Growth Revenue Growth (Q3 FY22 TTM YoY) EBITDA Growth (Q3 FY22 TTM YoY) Vodafone Qatar 26.7% Vodafone Qatar 26.9% Telecom Egypt Telecom Egypt STC Kuwait Ooredoo Kuwait Zain KSA Du UAE Du UAE STC Kuwait Ooredoo Kuwait Etisalat Egypt Etisalat Egypt S
Slide 8: Corporate Strategy: 5 Pillars of Success since 2018
Corporate Strategy ⋮ 5 Pillars of Success since 2018 GET THE FUNDAMENTALS RIGHT SUSTAINABLE GROWTH PLAN FOR TOMORROW GENERATE VALUE 1 2 3 4 5 SIMPLIFY CUSTOMER GROW DIVERSIFY RESPONSIBLE EXPERIENCE Clear focus and Always on, frictionless journeys Build world class infrastructure Pursue strategic par
Slide 9: Products & Services: Evolution over the years
Products & Services ⋮ Evolution over the years 2017 2018 2019 2020 2021 2022 • Legacy Prepaid and • Simplified Prepaid • 5G Unlimited mobility • New mid value “U” plans • New Prepaid Combo • Prepaid - Mass market Postpaid products Recharge card portfolio portfolio launched launched portfolio launche
Slide 10: Performance Evolution: Revenue & EBITDA Performance Indexed to 2017
Performance Evolution ⋮ Revenue & EBITDA Performance Indexed to 2017 Indexed Cumulative Revenue Growth (2017-2022 Q3 TTM) 47.9% 26.4% +38.3pp • Vodafone has realized 47.9% revenue growth while the 10.1% overall Market revenue has increased by 9.6% since 2017 5.1% 6.3% 2017=Baseline 9.6% 0.5% 2.1% -3
Slide 11: Growing Our Radio Network: >2,200 Radio Network Sites Across the Country
Growing Our Radio Network ⋮ >2,200 Radio Network Sites Across the Country 2018 2022 Significant Growth in Mobile Coverage over the years • >1,000 new radio network sites deployed since 2018 • >80% of the outdoor network sites are 5G enabled • 100% of the sites are 4G & 3G enabled Radio Access Networ
Slide 12: Financial Performance
Financial Performance Year ended 31 December 2022 Masroor Anjum Chief Financial Officer
Slide 13: FY22 Financial Performance Highlights
FY22 Financial Performance Highlights Strong revenue Cost Highest ever Strong subscriber growth efficiency margins and growth profits • Total Revenue grows • Underlying OPEX intensity • EBITDA QR 1,234m, 19.7% • Mobility subscribers grew 21.4% led by service continues to decline YoY increase YoY 8.9
Slide 14: FY22 Year on Year: Strong performance across all financial KPIs
FY22 Year on Year ⋮ Strong performance across all financial KPIs Revenue Expenses EBITDA Net Profit +21.4% +22.5% +19.7% +53.4% • Total revenue grew QR 540m (21.4%) led by 3,066 1,832 1,234 502 service revenue growth (+17.3%) and 449 +17% projects revenue 2,526 1,495 1,031 296 764 327 • Expenses hig
Slide 15: Financial Performance: Impact of World Cup
Financial Performance ⋮ Impact of World Cup Fan sims activated Roamers 134 419k 1.8m 53 Event specific Buses and Taxi MiFi postpaid connections connectivity 58 15k 5k 81 31 45 Connectivity and Equipment Delivery Connectivity for World Cup through Vodafone Fixed and Revenue Direct costs OPEX EBITDA M
Slide 16: FY22 Q4 Year on Year: Revenue growth continues to drive profitability
FY22 Q4 Year on Year ⋮ Revenue growth continues to drive profitability Revenue Expenses EBITDA Net Profit +14.0% +13.8% +14.3% +32.3% 890 535 355 168 780 135 +26% 470 310 740 452 288 180 220 127 108 149 118 189 755 600 632 321 315 263 FY21 Q4 FY22 Q3 FY22 Q4 FY21 Q4 FY22 Q3 FY22 Q4 FY21 Q4 FY22 Q3 F
Slide 17: Service Revenue (excl. World Cup): Subscriber growth driving revenue
Service Revenue (excl. World Cup) ⋮ Subscriber growth driving revenue Postpaid Prepaid Total service revenue +13.1% +13.7% 1,298 855 2,536 1,148 2,230 1,067 1,021 656 +6.9% 2,021 588 1,949 846 563 1,904 550 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY22 Financial Per
Slide 18: Margin Trends: Improving efficiency and margins
Margin Trends ⋮ Improving efficiency and margins Reported Underlying Reported Margin Underlying margin* OPEX EBITDA +1.4 ppts Net Profit +3.4 ppts Intensity Margin Margin 45.2% 16.4% 43.8% 34.8% 39.4% 13.0% 40.8% 40.2% 35.6% 36.7% 28.8% 28.7% 8.4% 33.4% 6.8% 24.9% 24.9% 28.6% 5.6% 24.5% 24.2% 27.8%
Slide 19: Capital Expenditure: Investments driving profitable growth
Capital Expenditure ⋮ Investments driving profitable growth Capital expenditure (CAPEX) Return on capital employed (ROCE) 30.0% 23.3% +7.0 ppts +3.0 ppts 21.5% 18.7% 16.1% 9.8% 660 637 489 411 408 6.7% 4.2% 3.3% 2.8% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 CAPEX CAPEX Intensity FY22 Financ
Slide 20: FY22 Year on Year: Generating strong cash flows
FY22 Year on Year ⋮ Generating strong cash flows Operating Cash flow* Net Debt Net Debt to EBITDA +22.5% +1.9% -14.9% 981 523 533 0.51x • Strong cash flow generation with 22.5% growth YoY reflected growth in EBITDA 0.43x 800 211 • Net debt remained stable despite increase 254 in dividend and higher
Slide 21: FY22 Year on Year: Statutory results summary
FY22 Year on Year ⋮ Statutory results summary 31 Dec 22 31 Dec 21 • Total revenue grew QR 540m (21.4%) led by service revenue growth (+17.3%) and Consumer revenue 1,633 1,443 190 projects revenue Enterprise, equipment and other revenues 1,433 1,083 350 Total revenue 3,066 2,526 540 • Higher direct c
Slide 22: Key Financial Performance Indicators
Key Financial Performance Indicators Total Revenue Expenses EBITDA Total service Net profit revenue 3,066 CAGR CAGR 1,832 1,234 +10% +5% 502 449 2,526 1,517 1,495 CAGR 296 1,416 +21% 1,031 2,200 1,392 764 CAGR 2,101 2,125 179 +44% 197 176 611 327 732 611 632 808 709 2,617 2,230 584 185 1,949 2,021 1
Slide 23: FY23 Guidance
FY23 Guidance FY22 FY23 Financial KPIs Results Expectation Total revenue QR 3,066m + YoY % EBITDA Margin 40.2% + >1.5 ppts CAPEX intensity 21.5% 17% to 18% • The Management expects continuing top line growth in FY23 • Higher revenue along with cost optimisation initiatives will enable growth in prof
Slide 24: Q&A
Q&A
Slide 25: For more information visit our website
For more information visit our website: www.vodafone.qa/en/investor-relations Or email us: InvestorRelationsQatar@vodafone.com
Slide 26: Consolidated Statement of Income
Consolidated Statement of Income Year ended 31 December QR m (unless otherwise stated) 2022 2021 YoY Consumer revenue 1,633 1,443 190 Enterprise, equipment and other revenues 1,433 1,083 350 • Total revenue growth led by service revenue (+17.3%) and Total revenue 3,066 2,526 540 projects revenue Int
Slide 27: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position QR m (unless otherwise stated) 31 Dec 22 31 Dec 21 Var Property, plant and equipment 1,885 1,638 247 Assets Intangible assets 4,050 4,169 (119) • Property, plant & equipment and intangible assets increased by QR 128m due Right-of-use assets 430 291 138 to
Slide 28: Mobility Subscribers
Mobility Subscribers* Postpaid Prepaid Total Mobility +9.0% +8.9% +8.9% 569 1,537 2,106 567 557 2,056 1,489 548 2,013 2,015 1,464 1,459 522 1,412 1,934 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Financial Performance *
Slide 29: Mobility ARPU
Mobility ARPU* Postpaid Prepaid Total Mobility -1.0% -9.4% -4.0% 197 196 195 194 195 37 80 78 77 77 77 34 33 32 33 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Financial Performance * Mobility ARPU is excluding FIFA Worl
Slide 30: Dividend policy: FY 2023 – FY 2024
Dividend policy ⋮ FY 2023 – FY 2024 The Board of Directors have approved a dividend policy for the Company for a period of 2 years commencing FY2023 aiming for a dividend of 8% to 10% of the share capital. The Board of Directors may change the dividend percentage after evaluating a range of factors
Slide 31: Tournament Performance: Achieved Exceptional Numbers
Tournament Performance ⋮ Achieved Exceptional Numbers • Additional B2B projects and initiatives supported over the past 2 years • Highly successful delivery – provides us the experience & confidence to take on ever more complex ICT & Managed Services projects FY22 Financial Performance 31 26 January
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