Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Q3 2020 Earnings Presentation
32 slides from Ooredoo Q.p.s.c's earnings presentation, Oct 29, 2020
Slide 1: Ooredoo Group Q3 2020 Results
Ooredoo Group Q3 2020 Results 29th Oct 2020 1
Slide 2: Disclaimer
Disclaimer • Ooredoo (parent company Ooredoo Q.P.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 1 Results review 2 Operations review 3 Additional information 3
Slide 4: Group Results: Key Highlights
Overview Results review Operations review Additional information Group Results Key Highlights Solid financial performance in challenging conditions Revenue declined by 3% EBITDA declined by 4% Group Net Profit attributable Data revenues account for Ooredoo Group reinforced its year-on-year to QAR 21
Slide 5: Revenue and EBITDA
Overview Results review Operations review Additional information Group Results Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin -3% -4% 21,965 21,414 9,664 -2% 9,249 -2% 3,325 3,253 7,457 7,296 44% 43% 45% 45% 9M-19 9M-20 Q3-19 Q3-20 9M-19 9M-20 Q3-19 Q3-20 • Revenue growth in QAR i
Slide 6: Quarterly Revenue and EBITDA trends
Quarterly Revenue and EBITDA trends Revenue/EBITDA (QARm) Revenue EBITDA EBITDA Margin 45% 41% 44% 45% 44% 43% 40% 7,950 21,965 21,414 7,296 7,457 6,823 7,295 3,325 3,183 3,023 2,973 3,253 9,664 9,249 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 9M-19 9M-20 • Revenue and EBITDA growth in Q3 over Q2 2020 indicating
Slide 7: Net Profit
Overview Results review Operations review Additional information Group Results Net Profit Net Profit Attributable to Ooredoo shareholders (QARm) +16% 1,468 +53% 1,265 1,270 650 1,119 Net Profit 508 475 424 F/X Impact Net Profit Pre F/X Net Profit F/X Impact Pre F/X Net Profit 349 142 (51) (5) 9M-19
Slide 8: Free Cash Flow and Capital Expenditure
Overview Results review Operations review Additional information Group Results Free Cash Flow and Capital Expenditure CAPEX (QARm) & CAPEX/ Revenue (%) Free Cash Flow (QARm) -1% -3% 3,443 3,416 3,824 -1% 3,703 +12% 1,323 1,309 1,157 1,293 16% 16% 18% 18% 9M-19 9M-20 Q3-19 Q3-20 9M-19 9M-20 Q3-19 Q3-
Slide 9: Total customers
Overview Results review Operations review Additional information Group Results Total customers Total Customers (millions) -20% -3% 149.9 +3% 119.6 115.9 119.0 9M-17 9M-18 9M-19 9M-20 • Growing customer numbers in Qatar, Indonesia, Iraq, Myanmar & Palestine Q3 Financial Results | 29 October 2020 | 9
Slide 10: Net debt
Overview Results review Operations review Additional information Group Results Net debt Net Debt (QARm) and Net Debt / EBITDA +18% 26,905 25,874 -12% -12% 23,553 22,722 2.1 1.8 1.8 1.7 9M-17 9M-18 9M-19 9M-20 • Positive trend of Group Net Debt reduction continued; Net Debt to EBITDA ratio 1.7x • Low
Slide 11: 2020 Q3 performance summary
Overview Results review Operations review Additional information Group Results 2020 Q3 performance summary Group Financials 9M 2020 % Change 9M 2020 Full Year (QAR bn) Actual 2020 / 2019 Guidance over 2019 Revenue 21.0 -2.5% -1.5% to +1.5% EBITDA 9.2 -4.3% -2% to +1% CAPEX 3.4 -0.8% 5.5bn to 6.5bn •
Slide 12: Contents
Contents 1 Results review 2 Operations review 3 Additional information Q3 Financial Results | 29 October 2020 | 12
Slide 13: Qatar
Overview Results review Operations review Additional information Qatar QARm Revenue EBITDA EBITDA Margin • Qatar is in phase 4 of the reopening program, number of positive C19 cases dropped significantly, business starting to open up, limited travel still impact roaming business negatively 56% 55% •
Slide 14: Indonesia
Overview Results review Operations review Additional information Indonesia QARm 1,882 1,768 5,124 1,692 1,669 1,688 4,846 • Positive turnaround momentum maintained solid top-line growth of 6% YoY, driven by mobile and data revenue on the back of enhanced network • Strong growth in data demand 815 77
Slide 15: Iraq
Overview Results review Operations review Additional information Iraq QARm Revenue EBITDA EBITDA Margin • Negative impact of C19 / movement restrictions in 1H has started to 46% 43% 44% 42% 48% ease off. Voice services which was significantly impacted in Q1 and Q2 area is gradually recovering 1,264
Slide 16: Oman
Overview Results review Operations review Additional information Oman QARm Revenue EBITDA EBITDA Margin 57% 56% 52% 53% 54% 56% 54% • C19 impact (lockdown and movement restrictions) and a reduction in 1,999 expatriate population led to decrease in Revenues 1,889 • EBITDA margin drop due to lower sal
Slide 17: Kuwait
Overview Results review Operations review Additional information Kuwait QARm 739 666 656 2,033 609 1,843 578 • Revenue and margins are lower compared to last year, softening macroeconomic conditions as a result of the COVID-19 pandemic as well as intense market competition 205 231 166 151 165 636 48
Slide 18: Algeria
Overview Results review Operations review Additional information Algeria QARm 1,885 628 616 594 571 1,685 520 204 204 200 171 204 663 575 • Weak economy, fluid political situation, intense price competition and C19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 9M-19 9M-20 impacted the overall market. Partial curfew
Slide 19: Tunisia
Overview Results review Operations review Additional information Tunisia QARm 407 392 379 382 1,097 1,124 349 202 159 168 147 179 523 494 • Despite challenging macroeconomic conditions as a result of the C19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 pandemic, revenue grew by 2% 9M-19 9M-20 • A slowing economy a
Slide 20: Myanmar
Overview Results review Operations review Additional information Myanmar QARm 872 284 296 292 807 273 255 • Revenue is up by 8% YoY driven by increased usage of data services which offset decline in voice revenue and also impacted by favorable Foreign Exchange rates YoY 92 54 50 75 73 226 198 • EBIT
Slide 21: 2020 upcoming events (tbc)
2020 upcoming events (tbc) Nov 3-4, BoA Virtual Mena Conference Nov 18-19, Morgan Stanley virtual TMT conference Nov 23-26, Arqaam virtual conference 29 October 2020 21
Slide 22: Contents
Contents 1 Results review 2 Operations review 3 Additional information Q3 Financial Results | 29 October 2020 | 22
Slide 23: Dividend policy
Dividend policy Dividend policy Q4 2019: “The Ooredoo Board approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40% to 60% of normalized earnings” Q3 Financial Results | 29 October 2020 | 23
Slide 24: Additional Information: Key Operations Importance to Group
Overview Results review Operations review Additional information Additional Information Key Operations Importance to Group Revenue (QARm) EBITDA (QARm) 24,476 22,531 21,965 21,414 10,459 9,337 9,664 9,249 9M-17 9M-18 9M-19 9M-20 % delta 9M-17 9M-18 9M-19 9M-20 % delta Qatar 5,861 5,822 5,420 5,280 -
Slide 25: Group Operations Breakdown: CAPEX & Customers
Group Operations Breakdown Overview Results review Operations review Additional information CAPEX & Customers CAPEX Breakdown (%) Customer Breakdown (%) Others, 1% Others, 2% Qatar , 15% Myanmar, 11% Myanmar, 3% Myanmar, Others, 2% Qatar , 3% Tunisia, 5% 3% Tunisia, 5% Qatar , 15% Tunisia, 7% Algeri
Slide 26: Total Group Debt Breakdown
Group Operations Breakdown Overview Results review Operations review Additional information Total Group Debt Breakdown Total Group Debt (QARm) Total Group Debt Breakdown Long Term Short Term Others , 4% 40,251 37,482 Indonesia , 14% 2,455 31,828 30,162 11,693 5,591 5,570 37,796 25,789 26,237 24,592
Slide 27: Blended ARPU
Blended ARPU Overview Results review Operations review Additional information Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 112 108 107 53.7 54.4 54.7 54.5 105 102 101 50.5 50.8 23.0 22.8 29.2 56.2 59.0 59.9 59.1 27.1 55.4 52.8 21.6 25.3 23.7 23.2 20.9 20.9 19.0 19.3 Indonesia (QA
Slide 28: Debt Profile – Ooredoo Q.P.S.C. level
Group Results Overview Results review Operations review Additional information Debt Profile – Ooredoo Q.P.S.C. level 2,000 1,500 680 (USD m) 1,000 70 220 Undrawn RCF 20 20 500 1,000 1,080 1,000 100 750 390 500 500 500 20 20 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2043 Loans (in USD m) Am
Slide 29: Service Revenue
Service Revenue Overview Results review Operations review Additional information Service Revenue (QARm) -2% 21,034 20,558 -3% 7,198 7,011 9M-19 9M-20 Q3-19 Q3-20 Q3 Financial Results | 29 October 2020 | 29
Slide 30: Statutory Corporate Tax Rates
Overview Results review Operations review Additional information Statutory Corporate Tax Rates Statutory Statutory Losses Losses C/Fwd C/Fwd Markets Markets Notes Tax Tax Rate Rate Allowed Allowed Algeria 26% 4 years The Tax Rate is 22% for tax years 2020 and 2021, 20% for tax year 2022 onwards Indo
Slide 31: OPCOs Licence General Information
Overview Results review Operations review Additional information OPCOs Licence General Information Country Fixed Licence Mobile Licence Issuance Date Expiry Date Issuance Date Expiry Date 7 October 2007 6 October 2027 Qatar 7 October 2007 6 October 2032 13 October 1997 Kuwait Indefinite -- -- Emiri
Slide 32: Thank You
Thank You