Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Qatar Telecom (Qtel) — Q1 2009 Earnings Presentation
36 slides from Ooredoo Q.p.s.c's earnings presentation, 2009
Slide 1: The Qtel Group: A robust start to the year - Q1 2009 Results
The Qtel Group A robust start to the year Q1 2009 Results
Slide 2: Safe harbor disclaimer
Safe harbor 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-l
Slide 3: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 3
Slide 4: Group results: Quarterly performance
Group results Quarterly performance 3 months Change ended March Q1 2009 / Q1 QAR Millions 2009 2008 Consolidated revenue 5,607 +58% EBITDA 2 666 2,666 +49% Net profit attributable to Qtel 604 +15% shareholders Earnings per share (in Qatari 4.12 -10% Riyals) Market capitalization 13,831 -36% Steady p
Slide 5: Group results: Key performance indicators
Group1 results Key performance indicators Customers Consolidated Consolidated Net profit Debt (in thousands) revenue(2) EBITDA(2) attributable to (in million QAR) (in million QAR) (in million QAR) shareholders(2) (in million QAR) Short-term 233% 58% 49% Long-term 15% 30,439 21,128 Strategic marketin
Slide 6: Group results: Debt profile
Group results Debt profile 13.2 Mar 09 Net • Short term refinancing requirements 7.9 Financial Debt being addressed with USD 1.5 billion 4.2 credit facility secured in March 2009 Maturity 1.7 1.4 1.0 (In billion QAR) • Nett D N Debt bt / EBITDA continues ti tto 2.70 -25% improve Net Debt / 2.02 • QA
Slide 7: Group results: Total customers and proportionate customers
Group results Total customers Total Customer(1) base evolution Country(2) contribution breakdown (In thousands) (% share of total base) 233% Proportionate customers Proportionate Customer(1) base evolution Country(2) breakdown (In thousands) (% share of proportionate base) 332% Source: Qtel Note: (1
Slide 8: Group results: Revenue
Group results Revenue Consolidated Revenue(1) evolution Country(2) contribution breakdown (In million QAR) (% share of total revenue) 58% (3) Source: Qtel Note: (1) Post acquisition Revenue (2) Excludes associates (3) Includes wi-tribe, Saudi Arabia (Bravo) and Maldives 8
Slide 9: Group results: EBITDA and net profit
Group results EBITDA EBITDA(1) evolution Country(2) contribution breakdown (In million QAR) (% share of total EBITDA) 49% (3) Net profit attributable to Qtel shareholders Net profit (1) evolution Country contribution breakdown (In million QAR) (% share of total net profit) 15% (4) (5) Source: Qtel N
Slide 10: Group results: Exchange rate impacts
Group results Exchange rate impacts Kuwait KWD Q1’08 KWD Q1’09 KWD Q1‘08- Total (Mn) Total (Mn) Q1’09 Change Revenue 54 50 (4) Appreciation (Depreciation) vs. USD EBITDA 28 23 (5) Net Profit 18 18 - Q1 2008 – Q1 2009 Algeria DZD Q1’08 DZD Q1’09 DZD Q1’08- Kuwait (KWD) (6.8%) Total (Mn) Total (Mn) Q1
Slide 11: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 11
Slide 12: Group strategy: Qtel remains well-positioned for success
Group strategy In a challenging macro-economic environment Qtel remains well-positioned for success 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 busines
Slide 13: Group strategy: Continued disciplined growth
Group strategy Continued disciplined growth Jan 2005 Jan 2007 Today Tunisia Jordan Iraq Palestine Kuwait Pakistan UAE Qatar Saudi Algeria Arabia Oman Laos Cambodia Oman Qatar Si Singapore Phili i Philippines Indonesia Qatar Singapore Maldives Indonesia Countries w/ 1 4 17 Qtel interests Consolidated
Slide 14: Consistent and continued focus on four priorities
Group strategy Consistent and continued focus on four priorities Objectives Progress update 1 • Maintain healthy EBITDA in mature markets • EBITDA margins of 62% and 47% in Qatar • Accelerate value capture in markets such as and Kuwait respectively for Q1 2009 EBITDA Growth Algeria, Tunisia, Iraq an
Slide 15: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review 15
Slide 16: Group operations: Key developments
Group operations Key developments Qatar Strong results supported by prepaid ,postpaid and fixed line customer growth Kuwait Impact on results due to disruptive competitive behavior eliminating fixed to mobile call fees: initiatives already underway to mitigate GCC Oman Consistent results within typi
Slide 17: Qatar: Qtel
Qatar Qtel Market snapshot Key developments Pop : 1.7 mn • Strong results supported by: Pop growth: 6% Qatar • Prepaid, Prepaid postpaid and fixed line customer Mob. penetration: 111% growth GDP: USD 76 bn • Increasing margins GDP per capita: USD 58,864 • Broadband penetration now >50% Operation: In
Slide 18: Indonesia: Indosat
Indonesia Indosat Market snapshot Key developments Pop : 240.3 mn • Year on year revenue growth while at the same time Indonesia Pop growth: 1% addressing calling-card calling card type behavior: focus on value Mob. penetration: 64% driven growth GDP: USD 393.8 bn • Net Income decline largely a resu
Slide 19: Kuwait: Wataniya
Kuwait Wataniya Market snapshot Key developments Pop : 3.8 mn • Continued healthy growth in subscribers ait Pop growth: 6% • Impact of 3rd operator removing incoming call Kuwa Mob. penetration: 97% charges impacting calling volumes and associated GDP: USD 109 bn top line revenue GDP per capita: USD
Slide 20: Iraq: Asiacell
Iraq Asiacell Market snapshot Key developments Pop : 29.9 mn • Quarterly results strong led by continuing subscriber Pop growth: 2% growth Iraq Mob. penetration: 60% • Network expansion plans in place to accommodate GDP: USD 70.5 bn continued high volume of subscriber growth GDP per capita: USD 4,01
Slide 21: Oman: Nawras
Oman Nawras Market snapshot Key developments Pop: 3.0 mn • Focus on high value additions resulting in Pop growth: 4% maintenance of customer market share but growth of Oman n Mob. penetration: 112% revenue GDP: USD 44.4 bn • Analogous Q1 seasonality impacts on revenue and GDP per capita: USD 22,946
Slide 22: Algeria: Nedjma
Algeria Nedjma Market snapshot Key developments Pop : 34.2 mn • Q1 results maintain positive trajectory accounting for Algeriia Pop growth: 1% seasonal norms Mob. penetration: 68% • Exchange rate impacts continue GDP: USD 140.8 bn • Focus on higher value clients driving post paid GDP per capita: USD
Slide 23: Tunisia: Tunisiana
Tunisia Tunisiana Market snapshot Key developments Pop : 10.5 mn • Sustained growth recognizing seasonality resulting in Tunisia Pop growth: 1% market share of 52% Mob. penetration: 88% • Multiple promotions in market to help continue GDP: USD 34.44 bn positive customer growth while retaining existi
Slide 24: Maldives: Wataniya
Maldives Wataniya Market snapshot Key developments Pop : 0.39 mn • ~60% year over year growth in revenue ves Pop growth: 6% • Total customers at the end of Q1 were 106,000: 106 000: an Maldiv Mob. penetration: 110% increase of 58% from Q1 2008 GDP: USD1.7 bn • Global economic climate impacting resor
Slide 25: KSA: Bravo
KSA Bravo Market snapshot Key developments Pop : 25.5 mn • Improved focus on retention and winback efforts Pop growth: 2% increasing customer base KSA A Mob. penetration: 145% • Q1 seasonality impacts on revenue and ARPU GDP: USD 344.9 bn • Vertical segmentation marketing approach ongoing GDP per ca
Slide 26: Palestine Wataniya and Jordan wi-tribe
Palestine Wataniya Market snapshot Key developments Pop : 3.9 mn • Network build progressing Palestine Pop growth: 3% • Secured funding from international (IFC) and local Mob. penetration: 33% private (PIF) sector in February 2009 to build new GDP: USD 6.2 bn GDP per capita: USD N/A network • Appoin
Slide 27: Thank you for your attention
Thank you for your attention Qtel Investor Relations Department Any further Tel: +974-440-0088 questions? Fax: +974-483-0011 +974 483 0011 investor@qtel.com.qa Upcoming 1H 2009 Financial Highlights – August 2009 events 27
Slide 28: Let's Connect
BS Let’s Connect
Slide 29: Today's agenda
Today’s agenda • Results review • Strategy review • Operations review • Financial statements • Additional Information 29
Slide 30: Qtel Group structure and presence
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-tribe2 (Kuwait) (Cayman ) (Singapore) (Cayman) 49% 100% 55% 100% 100% 80% 57% 56% 50% 49% 65%
Slide 31: Qtel Group's global footprint
Qtel Group’s global footprint Qtel MENA Operations (Controlling stakes) wi-tribe Limited (Qtel stake- 78%) wi-tribe Asia (Qtel stake- 69%) Qtel (Qatar) Nawras (Oman) AsiaCell (Iraq) wi-tribe Jordan wi-tribe Pakistan Liberty (Philippines) Pop : 1.7m Pop : 3.0m Pop : 29.9m Pop : 6.3m Pop : 169.2m Pop
Slide 32: Key operating country statistics
Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives1 Oman Qatar KSA Tunisia 2009 GDP real growth % 2.2 -1.3 5.4 0.7 6.5 2.5 10.8 0.4 2.4 (2008) (3.2) (6.1) (7.8) (8.5) (x.x) (6.4) (13.4) (4.2) (4.9) Consumer prices % 3.9 1.4 5.4 4.0 11.0 N/A 8.7 1.3 2.4 (2008 except Oman Q2 YoY )
Slide 33: Credit rating
Credit rating Agency Rating1 Outlook A1 Stable A- Stable A+ Stable Note: (1) Moody’s Investors Service has assigned Qtel a senior unsecured issuer rating of “A1”; Standard & Poor’s Ratings Services assigned its “A-” long term and “A-2” short term corporate credit ratings; Fitch Ratings has assigned
Slide 34: 2008 Dividend
2008 Dividend Total annual cash dividend of QAR 10 per share Represents 100% of the share face value and around 65% payout ratio The Board reviews the dividend policy on an annual basis and recommends dividend to the General Assembly taking into account the requirements of the company and returns fo
Slide 35: Consolidated Statement of Income
Consolidated Statement of Income 3 months ended 31 March 2009 For the F th three th months th ended d d 31 March - Unaudited 2009 2008 QR’000 QR’000 Revenue 5,606,853 3,547,155 Other income 200,278 60,301 General and administrative expenses (2,670,219) (1,483,049) Other operating expenses (1,505,455
Slide 36: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position At 31 March 2009 31 Mar 2009 31 Mar 2008 31 Mar 2009 31 Mar 2008 Unaudited Unaudited Unaudited Unaudited QR’000 QR’000 QR’000 QR’000 ASSETS EQUITY AND LIABILITIES Non-current assets Attributable to equity holders of the parent Property, plant and equipmen