Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Investor Day (September 2022)
26 slides from Ooredoo Q.p.s.c's investor day presentation, September 2022
Slide 1: Group Strategy – Capital Markets Day
GROUP STRATEGY Aziz Aluthman Fakhroo, Group Managing Director & CEO Capital Markets Day
Slide 2: Agenda
Agenda 1 Our point of departure 2 Strategy & path forward 3 Value crystallization | | 2
Slide 3: Ooredoo Group Overview
Ooredoo Group Overview We are a key telco player in MENA with a portfolio exposed to dynamic growth markets with growing GDPs & population Footprint Wireless population subscribers Ooredoo Telecom Operations [Mn.] [Mn.] 459 Ooredoo Consolidated Telecom Operations Ooredoo Minorities / Affiliate Telec
Slide 4: Ooredoo Group Overview – balanced portfolio
Ooredoo Group Overview We are strongly positioned across a balanced portfolio. Country Market position Business model CAPEX Intensity of Markets Mobile Fixed Wireline Total Customers H1-2022 [Thsd] Represents Revenue Size H1-2022 in QAR Wireless Broadband 300 Qatar of 2 3,172 1 players 290 Iraq of 3
Slide 5: Ooredoo Group Overview – Qatar home market and geography contribution
Ooredoo Group Overview Qatar as our home market continues to be a strong contributor to our results. GCC countries represent more than 80% of group cash flow. Geography contribution to Ooredoo Group Countries – Relative market shares & profitability Ooredoo Zain E& IndosatHutch Ooredoo 4,800 3,836 E
Slide 6: Ooredoo Group Performance – Regional Peers
Ooredoo Group Performance Strong growth of cash flow compared to peers driven by efforts to drive CAPEX efficiencies & phasing of 5G investment cycle. Top60 Top60 Top60 Revenue Growth EBITDA Growth Simple Free Cash Flow Growth Æ 8.0%4) Æ 5.7%5) Æ 23.2%6) [%, USD Based, 2021 vs. 2020] [%, USD Based,
Slide 7: Ooredoo Group Performance – Regional Peers
Ooredoo Group Performance While we have provided above average returns in our panel of the top 60 global telcos globally and also among regional peers, Ooredoo’s multiple might have room to grow. Top60 Top60 Enterprise Value Total Shareholder Return Enterprise Value/EBITDA 2022E Æ -4.9% 2) Æ 7.53) [
Slide 8: Share price evolution (Indexed)
Share price evolution (Indexed) The progressing underlying operating metrics have driven an outperformance of the stock index and most of our peers by Q2- 2022. SHARE PRICE DEVELOPMENT SINCE START OF TRANSFORMATION SHARE PRICE DEVELOPMENT 1 YEAR [Indexed to 100% at 30.12.2022 – 15.09.2022] [Indexed
Slide 9: Ooredoo & ESG
Ooredoo & ESG We have progressed in our ESG ratings evidenced by a good momentum score – nevertheless we have further opportunities to improve. ESG Ranking – Ooredoo Group ESG Overall Ranking SASB dimensions Momentum Environment Social Leadership & Human Business model Lag Lead Score Capital Governa
Slide 10: Agenda
Agenda 1 Our point of departure 2 Strategy & path forward 3 Value crystallization | | 10
Slide 11: Our motivation – solving an industry problem
Our motivation – solving an industry problem We focus our strategy on an underlying weakness of the telecoms industry – its return on equity & invested capital. ROIC 42 Iron & Steel 40 38 Communication 36 Forestry & Wood Products Services 34 32 Oil Refineries 30 ROE #68 28 Grocery Stores of 99 Indus
Slide 12: Our vision – Ooredoo as a smart telco
Our vision – Ooredoo as a smart telco We aim to develop and strengthen both skills related to a position as a smart telco making maximum use of our asset base as a connectivity business. HORIZON 3: MULTI CORE EXPANSION INTO DIGITAL ADJACENCIES HORIZON 2: SMART TELCO THROUGH OWNED STANDALONE UPGRADED
Slide 13: Our strategy 2022-2024
Our strategy 2022-2024 Excellence in Value Focused Portfolio Customer Experience [Reduce Asset Base With Better External Use] [Protect & grow our customer asset] Braveheart 2.0 People Strengthen the Core [Build skills, talent & ways of working to manage our asset base better] [Drive profitability in
Slide 14: Agenda
Agenda 1 Our point of departure 2 Strategy & path forward 3 Value crystallization | | 14
Slide 15: Strategy – Value focused portfolio
Strategy – Value focused portfolio To improve return on assets we focus our actions around Ooredoo’s portfolio around three main building blocks. We have to alter Suboptimally used assets Telco Operations Towers Datacenters • Review operations for ability to • Carve out tower operations • Carve out
Slide 16: Value focused portfolio – Telco Operations
Value focused portfolio – Telco Operations Ooredoo has already executed in Indonesia a first step in participating in in-market consolidation and creation of a strong #2 in Indonesia. Telco Operations • Review operations for ability to ü achieve/maintain #1 and #2 VALUE FOCUSSED positions in their l
Slide 17: Value focused portfolio – Sale of Ooredoo Myanmar
Value focused portfolio – Telco operations We are taking the next steps in our portfolio as well with the intended sale of our operations in Myanmar. Sale of Ooredoo Myanmar • Intended sale of Ooredoo Myanmar to Nine Telco Operations Communications Pte. Ltd announced on Sept. 8th, 2022 • Review oper
Slide 18: Value focused portfolio – Towers
Value focused portfolio – Towers To crystallize value for shareholders we are in the process to explore strategic options for our MENA tower portfolio. Ooredoo’s Tower Strategy Implication 1 Establishment of standalone local tower companies Towers managed as independent, at arms length entities • Ca
Slide 19: Towers – separation of telco operations and TowerCo
Value focused portfolio – Towers We have developed a clear separation between our telco operations and the tower business to be run as an independent entity focused on passive INFRA. Ooredoo OpCos MENA TowerCo Panel Antennas RAN and microwave equipment Tower Base Transceiver Station rack Tower found
Slide 20: Value focused portfolio – Towers
Value focused portfolio – Towers Our tower assets are as a block as well as individually in a strong position in the MENA region. Largest Block of Towers in MENA Strong Market Positions of Tower Assets [Number of Sites by TowerCos in MENA Countries1] [% Share of Sites, 2021; excl. transmission only
Slide 21: Towers – portfolio by type, geography and power
Value focused portfolio – Towers Our MENA portfolio is attractive and geared towards dense urban & urban sites. 41% 59% PORTFOLIO BY Ground based towers Rooftop sites TYPE/ CATEGORY Ground-based Ground-based Ground-based Pole Rooftop Tower Rooftop Pole SST-4L SST-3L 37% 46% 18% 55% 45% Self supporti
Slide 22: Towers – trading and transaction multiples
Value focused portfolio – Towers Both trading multiples of publicly listed tower companies as well as recent transactions point to valuation arbitrage versus telco valuations. Trading multiples - Towers Transaction multiples - Towers [EV/EBITDA2022E MULTIPLE AND EBITDA CAGR] EBITDA CAGR (’20-21) 188
Slide 23: Value focused portfolio – Datacenters
Value focused portfolio – Datacenters We expect the growth of data being created and used to continue for the foreseeable future constituting a major growth opportunity in MENA. Cyclical data growth Datacenter capacity – MENA vs. EU hubs [Zettabytes; DATA CREATED/CONSUMED & STORED GLOBALLY] [MW per
Slide 24: Datacenters – Ooredoo's advantages and growth
Value focused portfolio – Datacenters The high valuations of existing datacenter players & recent transaction multiples confirm the attractiveness & inherent growth profile of the sector. Ooredoo’s advantages in datacenter space in MENA Datacenter growth in Ooredoo footprint [TOTAL MW] 01 02 Exposur
Slide 25: Datacenters – strategy and platform targets
Value focused portfolio – Datacenters Ooredoo is committed to develop the datacenter opportunity together with a strategic partner and substantial joint investments. Ooredoo’s datacenter strategy Ooredoo’s MENA datacenter platform targets [Mid-/Long-Term Targets] Ooredoo Group Datacenters Datacenter
Slide 26: Datacenters – trading and transaction multiples
Value focused portfolio – Datacenters The high valuations of existing datacenter players & recent transaction multiples confirm the attractiveness & inherent growth profile of the sector. Trading multiples Transaction multiples EV/EBITDA EV/MW Target EV/EBITDA EV/MW Company EV ($m) Year Target Acqui