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Ooredoo Q.p.s.c — Qatar Telecom (Qtel) Q.S.C. — Q3 2009 Earnings Presentation
37 slides from Ooredoo Q.p.s.c's earnings presentation, 2009
Slide 1: The Qtel Group: Strong growth and solid returns, Q3 2009 Results
The Qtel Group Strong growth and solid returns Q3 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: Group results: Key developments
Group results Key developments Year to date performance strong • 28% Net Profit growth over same period last year • 22% Revenue growth • 19% EBITDA growth Continuing to adhere to key market strategies while identifying and addressing market challenges • Qatar – growth through innovation and service
Slide 5: Group results: Revenue and EBITDA
Group results1 Revenue and EBITDA Revenue ((QARm)) EBITDA ((QARm)) and EBITDA Margin g +22% +19% +107% +98% +85% +124% Continuous strong revenue and profit momentum 5 Note: (1) All Indosat results as reported adhere to IFRS which may in some instances differ from INDOGAAP
Slide 6: Group results: 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) +28% +11% +20% +41% N/A Prudent execution of our strategy continues to deliver solid returns to our shareholders Note: (1) Net Debt = Total interest bearing loans and b
Slide 7: Group results: Capital expenditure and intensity
Group results Capital expenditure and intensity Capex ((QARm))1 Capex / revenue2 +40% +16% +50% +216% -3% +117% In Indosat certain commitments of 2008 capital expenditure were carry-forward into 2009 Note: (1) Pro-forma for 2007 & 2008 due to acquisitions of Wataniya (NMTC) and Indosat respectively
Slide 8: Group results: Total group debt breakdown
Group results Total group debt breakdown Total group debt breakdown Total group debt1 (QARm) (% as of September 30, 2009) Short-term Long-term 35,701 28,632 US$ 2bn 7,483 forward start facility2 21,242 3 648 Note: (1) Short term debt includes debt with a maturity of less than twelve months (2) US$ 2
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 September 30 30, 2009) Qtel Q.S.C. committed lines and maturity (millions) • QAR 750 20091 • US$ 2,000 20092 • US$ 2,000 2 000 2011 • US$ 3,000 2012 US$5bn GMTN Program initial issuance3
Slide 10: Group results: Total and proportional customers
Group results Total and proportional customers Total customers1 Proportional customers1 +286% +28% -4% +277% +830% +357% Customer growth continues, continues our focus remains on market share of revenue not headline subscriber numbers Note: (1) As at 30 September 10
Slide 11: Group results: 9M performance summary
Group results 9M performance summary 9 months ended Change September 2009 9M 2009 / 9M 2008 QAR Millions Consolidated revenue 17,485 +22% EBITDA 8 344 8,344 +19% Net profit attributable to Qtel shareholders 2,349 +28% Earnings per share (in Qatari Riyals) 16.01 +9% Market capitalization (as ( off 30
Slide 12: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 12
Slide 13: Group strategy: Consistent, unchanged and delivering
Group strategy Consistent, unchanged and delivering 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 broadband, a
Slide 14: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 14
Slide 15: Group operations: Qatar and Indonesia
Group operations Revenue & EBITDA Margin Qtel - Qatar Qtel – Qatar (QARm)) (Q • Customer revenue and EBITDA growth in the Customer, face of recent competition +9% • Competitive and targeted pricing introduced • Network projects ongoing to ensure superior customer experience in coverage and reliabili
Slide 16: Group operations: Iraq and Oman
Group operations Revenue & EBITDA Margin Asiacell - Iraq Asiacell – Iraq (QARm)) (Q • Strong revenue and EBITDA growth • Network expansion and new service introduction +41% driving ARPU increase • Focus remains on network growth and expanding services to meet demand Nawras - Oman • Continued positiv
Slide 17: Group operations: Kuwait and Tunisia
Group operations Revenue & EBITDA Margin Wataniya - Kuwait Wataniya – Kuwait • Seasonality impact enhanced due to Ramadan and QARm KWDm summer months in Q3 -18% • Fixed to Mobile situation remains status quo; -12% discussions continue -19% • Look towards movement for the establishment of an independ
Slide 18: Group operations: Algeria and Palestine
Group operations Revenue & EBITDA Margin Nedjma – Algeria • Cost efficiencies including network optimization resulting in improved EBITDA performance • Continued focus on higher value customer segments and resulting share Nedjma – Algeria • Successful customer promotions resulting in QARm DZDm enhan
Slide 19: Thank-you
Thank-you Qtel Group Investor Relations Department Qtel Headquarters Building – PO Box 217 Any further West Bay, Doha questions? Tel: +974 440 4446 IR@qtel.com.qa Upcoming FY 2009 Financial Highlights – TBD 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 • 9M YoY customer, revenue and EBITDA growth in Customers: 4.5%; Revenue: 24.7%; EBITDA: 31.8%; Capex: 7.8% the face of new competition • Competitive and targeted pricing introduced Pop : 1.7M • Introduction of Busines
Slide 22: Indosat - Indonesia
Additional information Indosat - Indonesia Key developments Operator importance to group • Rupiah remained relatively strong in relation to the Customers: 54.8%; Revenue: 26.5%; EBITDA: 26.6% US Dollar • Continued stabilization of market dynamics Pop : 240.3M Indonesia • Bottoming out of decline in
Slide 23: Asiacell - Iraq
Additional information Asiacell - Iraq Key developments Operator importance to group • Strong revenue and EBITDA growth Customers: 13.9%; Revenue: 16.4%; EBITDA: 17.8%; Capex: 8.5% • Network expansion and new service introduction driving ARPU increase Pop : 30.7M • Focus remains on network growth an
Slide 24: Nawras - Oman
Additional information Nawras - Oman Key developments Operator importance to group • Continued positive revenue and steady EBITDA Customers: 3.3%; Revenue: 6.6%; EBITDA: 6.3%; Capex: 3.7% results despite Ramadan falling in traditionally slow summer period Pop: 2.98M • Fixed license and international
Slide 25: Wataniya - Kuwait
Additional information Wataniya - Kuwait Key developments Operator importance to group • Seasonality impact enhanced due to Ramadan and Customers: 2.7%; Revenue: 10.8%; EBITDA: 10.7%; Capex: 5.0% summer months in Q3 • Fixed to Mobile situation remains status quo; Pop : 3.5M discussions continue: con
Slide 26: Tunisiana - Tunisia
Additional information Tunisiana - Tunisia Key developments Operator importance to group (Revenue and EBITDA @ 50%) • Continued strong performance with higher value Customers: 9.0%; Revenue: 5.5%; EBITDA: 6.3%; Capex: 1.7% post-paid base growth • Market share in excess of 50% Pop : 10.3M • Strategic
Slide 27: Nedjma - Algeria
Additional information Nedjma - Algeria Key developments Operator importance to group • Cost efficiencies including network optimization Customers: 11.1%; Revenue: 7.6%; EBITDA: 5.3%; Capex: 6.1% resulting in improved EBITDA performance • Continued focus on higher value customer segments: Pop : 34.9
Slide 28: wi-tribe - Jordan and Pakistan
Additional information wi-tribe - Jordan Key developments Operator importance to group • WiMAX-based service with commercial launch June Customers: N/A; Revenue: 0.1%; EBITDA: N/A; Capex: 0.2% 2008 • Maintaining consistent customer growth Pop : 6.3M Jorrdan • Fixed wireless customer base at the end
Slide 29: Wataniya - Maldives
Additional information Wataniya - Maldives Key developments Operator importance to group • 52% growth in revenue over same period in 2008 Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.01%; Capex: 0.4% • Total customers at the end of Q3 2009 were 104,000: an increase of 11% from Q3 2008 Pop : 0.396M es P
Slide 30: Bravo - KSA
Additional information Bravo - KSA Key developments Operator importance to group • Bravo customer increase of 35% from same period Customers: 0.3%; Revenue: 1.1%; EBITDA: N/A; Capex: 0.1% last year • Ongoing customer additions via targeted campaigns Pop : 25.5M and winback efforts Pop growth: 2% KSA
Slide 31: Blended ARPU development (QAR)
Additional information Blended ARPU development (QAR) Qtel – Qatar Indosat - Indonesia Asiacell - Iraq Nawras - Oman Wataniya - Kuwait Tunisiana - Tunisia Nedjma - Algeria 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 % 3.4 4.2 5.8 -0.7 5.7 2.6 9.2 -1.0 0.7 (2008) (3.5) (6.1) (7.8) (8.5) (x.x) (6.4) (13.4) (4.2) (4.4) Consumer prices % 4.3 2.6 3.5 4.9 12.8 N/A 0.9 4.6 3.4 (20
Slide 34: Foreign exchange
Additional information Foreign exchange Local Currency (vs. $US) – Average Monthly Rates Fluctuation of Average Quarterly Rates (vs. $US) 20% 15% Kuwait 10% (KWD) 10% 5% Algeria 5% (DZD) 0% 0% Tunisia -5% -5% (TND) -10% -10% Indonesia -15% (IDR) -15% -20% Iraqi (IQD) -20% -25% WD) ND) QD) VR) LS) ZD
Slide 35: Consolidated Statement of Income
Additional information Consolidated Statement of Income - 9 months ended 30 September 2009 Three months ended Nine months ended 30 Septemb er 30 Septemb er 2009 2008 2009 2008 (Unaudited) (Unaudited) QR’000 QR’000 QR’000 QR’000 (Restated) (Restated) Revenue 5,941,346 6,196,967 17,484,703 14,318,674
Slide 36: Consolidated Statement of Financial Position
Additional information Consolidated Statement of Financial Position - At 30 September 2009 30 Sept 2009 31 Dec 2008 30 Sept 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 h
Slide 37: Let's Connect
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Qatar Telecom (Qtel) Q.S.C. — Q3 2009 Earnings Presentation on 6ix