Ooredoo Q.p.s.c · QSE:ORDS

Ooredoo Q.p.s.c — Qtel Group — Investor Day (February 2013)

76 slides from Ooredoo Q.p.s.c's investor day presentation, Feb 11, 2013

1. Slide 1: Qtel Group Capital Markets Day

   Qtel Group Capital Markets Day February 11, 2013

2. Slide 2: Disclaimer

   Disclaimer • Qatar Telecom (Qtel) Q.S.C. and the group of companies which it forms part of (Qtel) cautions investors that certain statements contained in this document state Qtel management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward‐looking sta

3. Slide 3: 2013 Qtel Group Capital Markets Day

   2013 Qtel Group Capital Markets Day 10:00‐10:05 Welcome – Qtel Group Investor Relations 10:05‐10:20 Dr. Nasser Marafih,, Qtel Q Group p CEO 10:20‐10:35 Mr. Ajay Bahri, Qtel Group CFO 10:35‐10:50 Mr. Jeremy Sell, Qtel Group CSO 10 50 11 05 10:50‐11:05 M Paul Mr. P l Salmon, S l Qt l Group Qtel G CTO

4. Slide 4: Dr. Nasser Marafih

   Dr. Nasser Marafih Chief Executive Officer ‐ Qtel Group February 11, 2013

5. Slide 5: Today's topics

   Today’s topics 1. Finance 2. Strategy 3 Technology 3. T h l 4. Wataniya, Nawras & Indosat Help you better understand our business and where we are going 5

6. Slide 6: Overall Group performance remains strong

   Overall Group performance remains strong Qtel Asiacell Indosat Qtel Group: Wataniya Kuwait On track and meeting guidance Nawras Nedjma Tunisiana Performance solid in most of our key markets: while some challenges remain 6

7. Slide 7: Drive: on track

   Drive: on track Differentiate on Strengthen Invest customer experience our foundations in new growth Establish long term Increase Productivity B2B ICT differentiation Strengthen people and Fiber Shift mindset and culture ggovernance Digital Futures Improve acquisition, Scale mobile data (MFS, OTT TV

8. Slide 8: Strategic and successful transactions

   Strategic and successful transactions Asiacell Shareholding Increase Wataniya Group Mandatory Tender Offer GMTN Issuances Tunisiana Shareholding Increase Multiple, con‐current project executions demonstrate Group and OpCo team strength 8

9. Slide 9: Technology evolution

   Technology evolution Ensuring we have the foundation in place for an enriched customer experience 9

10. Slide 10: Mr. Ajay Bahri

    Mr. Ajay Bahri Chief Financial Officer ‐ Qtel Group February 11, 2013

11. Slide 11: What did we achieve in 2012

    What did we achieve in 2012 1. Top line growth continues to trend in line with guidance (9M 2012: Revenue +6%, EBITDA +7%). 7%) Margins remain stable and high (47%). 2. Investment grade credit ratings maintained (Moody’s “A2”, S&P “A”, Fitch “A+”). 3. Successful US$ 1.9bn Rights Issue in May 2012 –

12. Slide 12: Successful group performance

    Successful group performance Customers Revenue EBITDA margin Net income attributable (in thousands) (in US$ million) (% of Revenue ) to shareholders of Qtel (in US$ million) +12% +8% ‐10% +13% 89,173 +16% +6% 83,352 82,422 74 ,140 6.6 46 .4 46 665 6,874 6,476 793 590 8,727 46.6 716 7,521 45.5 53,552

13. Slide 13: Key financial issues being addressed

    Key financial issues being addressed Foreign exchange risk • Update of FX hedging policy implemented throughout the Group. • Appropriate hedging levels achieved; in some emerging markets no suitable hedging instruments available or cost prohibitive. Debt refinancing risk • Pre‐emptive refinancing of

14. Slide 14: Key financial issues being addressed contd.

    Key financial issues being addressed contd. Leverage levels • Loan covenants further improved Net Debt to EBITDA to 1.3x for 9M 2012. • Investment Grade rating maintained. Counterparty Risk • Selection of highly rated local and international bank counterparties Diversification of funding sources • V

15. Slide 15: Conservative leverage

    Conservative leverage Continued de de‐leveraging leveraging of Net Debt to EBITDA 3.1 2.6 2.7 2.2 1.9 2.0 Consolidated Group 1.75 de‐leveraging 1.4 Proportionate achieved FY'09 FY'10 FY'11 9 '12 9m'12 Current leverage g remains within Board approved pp leverage g gguidance of 1.5x to 2.5x 15

16. Slide 16: Debt maturity profile

    Debt maturity profile Rollover into new RCF Q1 2013 (US$ 1bn) ‐ Lock‐in long‐term Recent DCM issuances funding at low rates 1400 concluded in Dec 2012 ‐ Prudent asset liability 1250 andd Jan J 2013 management Conservative 1000 1000 1000 debt maturity profile 750 750 implemented 600 500 500 2012 2013

17. Slide 17: Capital expenditure

    Capital expenditure Continued decrease in capital intensity 8,393 2012 Full Year 6 942 6,942 7,300 , ‐ 8,000 , Guidance 6,575 5,663 Capex (QARm) and 4,229 Capex / 35% R Revenue 28% 26% 21% 17% ? FY'08 FY'09 FY'10 FY'11 9m'12 FY’13 Network modernization to continue and fixed opportunities where it ma

18. Slide 18: Jeremy Sell

    Jeremy Sell Chi f Strategy Chief St t Officer Offi – Qtel Qt l Group G February 11, 2013

19. Slide 19: What we SAID

    What we SAID 1 New Group Strategy o “Transitioning “T iti i from f ‘Deal-Maker’ ‘D l M k ’ tto ‘Performance ‘P f Manager’” M ’” o “Increased focus on group identity and performance management” 2 “Sweat the assets” o “Increase productivity” o “Scale Scale profitable mobile data data” 3 Housekeeping o

20. Slide 20: What we DID

    What we DID 1 DRIVE o Customer C t E Experience i o Foundations (Profitability, Broadband, People) o New Businesses 2 “Sweat the assets” o Tower Sell / Network Sharing o Strategic Sourcing o U900 3 Housekeeping o Minorities Buy-ups o Portfolio Cleanup o Funding 20

21. Slide 21: Wataniya MTO & Tunisiana Step-up

    Wataniya MTO & Tunisiana Step‐up Oct 2012 – Increased stake in NMTC to 92.1% • Acquired additional stake at a good price • Ability to deliver greater benefits as control deepens • Value and earning accretive Dec 2012 – Acquired 15% from Tunisian government • Reduced dilution • Closure of Orascom buy

22. Slide 22: Asiacell step-up & IPO

    Asiacell step‐up & IPO June 2012 – Increased stake from 30% to 60% • Total consideration of US$ 1.47 billion • Value and earning accretive Jan 2013 – IPO Iraq Stock Exchange • 25% of share capital for $1.27B • Largest offering in MENA since 2008 • ~2900 new shareholders • Qtel increased stake to 64

23. Slide 23: Inorganic Focus

    Inorganic Focus Mobile + Broadband Enterprise MENA Asia New Businesses W have We h validated lid t d and d reconfirmed fi d our geographies hi 23

24. Slide 24: Investment Focus

    Investment Focus Geographies Europe Asia Latin Globally MENA America diversified Pacific Sector Full range of Core Select adjacencies adjacencies Target size S ll Small Large Investment model Minority Minority with Majority (little control) operational influence Market competitiveness >#5 #5 #4 #3 #

25. Slide 25: Current Inorganic Priorities

    Current Inorganic Priorities • MENA/ ASIA • Big, Bi cash h generative, ti well ll managedd • Significant growth potential, especially startups Mobile + Broadband • Data centers • B2B operations Enterprise • Small S ll investments i t t • Adjacent industries/ business models • Strategic partnerships

26. Slide 26: 2012 KPIs

    2012 KPIs Objective 2009 2010 2011 2012 - Outperform TSR1 46 4% 46.4% 28 8% 28.8% -2.6% 2 6% 2012 Full - Improve ROCE2 9.5% year results Financial 8.7% 7.8% to be metrics - Sustain EBITDA 47% 46% 47% announced March 3rd - Grow Revenue $ 6.6Bn $ 7.5Bn $ 8.7Bn Other strategic - Lead customer experienc

27. Slide 27: Paul Salmon

    Paul Salmon Chief Technology Officer ‐ Qtel Group February 11, 2013

28. Slide 28: Drive Strategy: Setting the stage for our technology strategy

    Drive Strategy: Setting the stage for our technology strategy Differentiate on Strengthen our foundations Invest in new growth customer experience 28

29. Slide 29: Our mobile networks deliver great customer experience

    Our mobile networks deliver great customer experience COVERAGE TODAY: NETWORK TODAY: ƒ Our 2G GSM radio network covers more than a ƒ We manage 40 Thousand 2G GSM radio nodes. Million square kilometres and – In process of being fully modernized. more than a Quarter of a Billion people. ƒ We manage 10

30. Slide 30: All-network modernization: RAN, transport & core

    All‐network modernization: RAN, transport & core Site Modernization via Multi‐Mode Software Defined Radio (MM‐SDR) Multi‐band antenna RRU MM‐SDR IP‐MW Leap‐frog performance per m2 Example of an installation of a Remote “We We will modernize in excess of 15 15,000 000 nodes Radio d Configuration f wi

31. Slide 31: A much better mobile broadband data experience with U900

    A much better mobile broadband data experience with U900 “The U900 device ecosystem is very good” UMTS 2100 (3G) UMTS 900 (3G) 31

32. Slide 32: Cost optimization & improved operational efficiency

    Cost optimization & improved operational efficiency Modernizing & designing more efficient and high performance sites solutions EXPECTATIONS • Up‐to 75% saving on air‐con power. • Up‐to Up to 15% on Single‐RAN Single RAN power power. • Up‐to 20% on diesel fuel. • Much less site maintenance. • Much b

33. Slide 33: Technology initiatives across the Qtel Group

    Technology initiatives across the Qtel Group Iraq – Asiacell Kuwait – Wataniya Indonesia – Indosat ƒ Modernization d i i tender d ƒ RAN Modernization d i i in i ƒ RAN Modernization d i i in i in progress. progress. progress Tunisia – Tunisiana ƒ 3G UMTS (TBA) ƒ U900 & 4G LTE to be ƒ U900 deployment

34. Slide 34: Customer-centric Information Technology – today & tomorrow

    Customer‐centric Information Technology –today & tomorrow TODAY & NEXT 12 MONTH: • 90% off our customers are on a harmonized charging platform. • 18MM on converged Charging CORNERSTONES OF OUR ACTIVITIES: & Billingg platform p byy 2013. • IT Modernization. • IT Harmonization. • IT Convergence. Charg

35. Slide 35: Capital Markets Day: Wataniya Telecom, Kuwait

    Capital Markets Day Wataniya Telecom Telecom, Kuwait

36. Slide 36: Corporate Performance Overview – 3Q 2012

    Corporate Performance Overview – 3Q 2012 Customers Market/Revenue / Share % 36.4% ƒ We crossed the 2 million customer mark in Q3 of 2012, resulting in capturing 36.4% of 2 0 Mn 2.0 the total customer base and 33.3% of the % total market revenue. 33.3% Revenue (Mn KD) EBITDA ( Mn KD) ƒ We maintained

37. Slide 37: Market & Competitive Overview

    Market & Competitive Overview 3Q YoY Growth – Market (Mn KD) 3Q YoY Growth – WT (Mn KD) 8% 17% 3% 8% 2% ‐5% ƒ Our Market still has growth momentum, but at a slower growth rate… 171.1 174 4 174.4 61 3 61.3 158.3 56.9 58.0 ƒ …and the amount of value that we have been able to capture has also slowed. 3

38. Slide 38: Our Key Focus in the Coming Year

    Our Key Focus in the Coming Year Differentiation Data Monetization ƒ Differentiation through customer experience will drive our ggrowth in our increasingg Capturing penetrated market. Value ƒ The explosion of Data is shifting our focus to introduce compelling Data propositions to capture Data value

39. Slide 39: Commercial Focus

    Commercial Focus Data Value Share Quality Acquisition ƒ Drive data adoption with the use of Targeted S Smartphones h as part off our compelling lli Data Acquisition Bundle proposition. ƒ Minimize rotational churn through focused acquisition. Data Monetization Base Management ƒ Monetize the increasin

40. Slide 40: Technology Investments

    Technology Investments LTE ƒ Plans are under way to roll out LTE across 500 Data key urban sites to provide ubiquitous service to over 80% of our customers. Improving our Network ROIC ƒ RAN Modernization efforts are under way to Network enhance our data service performance , to M d i ti Modernizatio

41. Slide 41: Regulatory Environment

    Regulatory Environment Lowering the Barriers to Switch ƒ The MoC has set a target date of June 30, 2013 implement Mobile Number Portability. Mobile M bil Number ƒ We will leverage this opportunity to grow our Portability higher value customer base and to accelerate the implementation of our customer

42. Slide 42: Thank You

    Thank You

43. Slide 43: Capital Markets Day Welcome

    C it l Markets Capital M k t Day D 2013 Welcome

44. Slide 44: Preliminary Unaudited Financial Results for 2012

    Preliminary Unaudited Financial Results for 2012 Three months ended 31 Dec 2012 Year ended 31 Dec 2012 2012 2011 Growth 2012 2011 Growth Revenues (OMR m) 51.4 50.8 1.2% 193.5 196.9 ‐1.7% EBITDA (OMR m) 26.2 26.8 ‐2.2% 94.9 103.4 ‐8.2% Net Profit (OMR m) 10.3 11.9 ‐13.4% 37.0 47.5 ‐22.1% Mobile & Fix

45. Slide 45: Stable market revenues and mobile revenue share

    Stable market revenues and mobile revenue share Telecom market revenues (1) (OMR M) 700 630 567 582 600 550 172 464 479 500 142 153 139 400 127 129 FIX 300 MOBILE 425 429 458 200 411 337 350 100 0 2008 2009 2010 2011 9m 2011 9m 2012 Share of revenues in mobile market ƒ Our Revenue share in Mobile (%

46. Slide 46: Performance – Stable Mobile Customer Base

    Performance – Stable Mobile Customer Base Mobile customers and market share (000’) 3,000 100 2,500 75 2,000 ƒ No. of Mobile customers 1,500 50 continues to grow 1,000 25 500 0 0 2008 2009 2010 2011 2012 Oman Mobile(From Omantel Filings) Nawras customers Resellers customers (TRA) Oman Mobile Reseller

47. Slide 47: Performance

    Performance Highest Customer net adds since Q3 2010 End of period (EoP) mobile customers breakdown (000’) 2,500 2,026 1,933 2,149 , ƒ mobile post post‐paid paid customer base developed 1,861 2,000 147 169 173 179 by 3.4% to 179,182 in 2012 compared with 1,511 1,500 110 173,274 customers in 2011. 1,0

48. Slide 48: Nawras broadband customers

    Nawras broadband customers Broadband ( Mobile* and Fixed) 600,000 569 909 569,909 500,000 400,000 ƒ Fixed service customers grew by 63% Y-Y 300,000 , 255,393 ƒ Mobile broadband customers 200,000 189,635 increased by 123% Y-Y. 94,382 100,000 44,261 20,412 27,175 ‐ ‐ 7,704 ‐ 2008 2009 2010 2011 2012 *

49. Slide 49: Areas of Focus

    Areas of Focus Customer Experience Salalah Southern Ring • Implement Customer Experience at • 500 Km of backbone fiber for Nawras in order to drive customer connecting southern region of loyalty and advocacy as part of the Oman (Salalah). QG Initiative. • The civil works are carried out by three dif

50. Slide 50: What happened in 2012

    What happened in 2012 • Continuing the 0902 VoIP international calling • Introduced Khareef promotion to new Mobile Consumer Ajel post-paid customers (FREE sub. fee for 500 MB Retention and MBB valid for 3 months, and a FREE Nawras Silver number Acquisition • Recharge offers with bonus of 20% on wee

51. Slide 51: Regulatory & Technology updates

    Regulatory & Technology updates • Our Network Turbocharging programme began in August. • This upgrade will increase 3G+ capacity as well as Technology enhance speeds and give greater coverage. • The upgraded pg network will send more broadband data across a much wider spectrum and faster to give a r

52. Slide 52: Conclusions - 2012

    Conclusions - 2012 ƒ Market ƒ Highest Customer net adds since Q3 2010 ƒ Total customer number increased by 12% in 2012 ƒ Increased competition in the market ƒ Network ƒ Huawei was selected for Network modernization project. project ƒ Introducing 4G LTE and upgrading all existing sites to enhanced 3G

53. Slide 53: Thank you

    Thank you All rights reserved © 2012

54. Slide 54: PT Indosat Tbk Qtel Group Capital Markets Day – 2013

    PT Indosat Tbk Qtel Group Capital Markets Day – 2013 Indosat IR - New Template v23 1220.pptx 54

55. Slide 55: Disclaimer

    Disclaimer • PT Indosat Tbk 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 statements are not

56. Slide 56: Agenda

    Agenda Overview of Indosat and Indonesia Financial and Operational Results – 9M12 Management Focus and Key Updates Supplemental Information Indosat Presentation 56 Indosat IR - New Template v23 1220.pptx 56

57. Slide 57: Indosat Overview

    Indosat Overview` Covered by 10 Areas; 69 Sales Areas and 338 Sales Clusters Segmented Revenue For 9M2012: ( as of September 2012) IDR 16.5tn Revenue Fixed Telecom, IDR 7.6tn EBITDA 4% Cellular, 55.5mn Subscribers 83% Fixed Data, Data IDR 30,8k ARPU 13% 21,642 Number of BTS Cellular Fixed Data Fixed

58. Slide 58: Indonesia Overview

    Indonesia Overview • 60% of the population is under 39 years old • 57% of the population is middle class and growing • 6% average economic growth for the past 5 years • 65% real wireless subscriber penetration rate • 22% Internet / 4% fixed broadband penetration Source: Head of Indonesia’s Coordinat

59. Slide 59: Telecommunication Industry Overview

    Telecommunication Industry Overview • Wireless Wi l subscribers b ib (S (Sep 2012) is i more th than 268 mn • Very competitive, predominantly prepaid, Ten-players market • Industry size of more than IDR 100Tn • In 9M2012 Industry revenue growth increased to 11% YoY due to data growth, SMS interconne

60. Slide 60: Financial and Operational Results – 9M12

    Financial and Operational Results – 9M12 Indosat IR - New Template v23 1220.pptx 60

61. Slide 61: Solid financial results

    Solid financial results In IDR billion 9M-11 9M-12 YoY 2Q-12 3Q-12 QoQ Operating Revenue 15 349 15,349 16 509 16,509 7 6% 7.6% 5 400 5,400 6 132 6,132 13 6% 13.6% EBITDA 7,246 7,647 5.5% 2,541 2,768 8.9% EBITDA Margin 47.2% 46.3% -0.9ppt 47.1% 45.1% -2.0ppt Profit Attribution to Owners 1,047 1,628 5

62. Slide 62: Strong annual growth in cellular and fixed data businesses

    Strong annual growth in cellular and fi d data fixed d t businesses b i Operating Revenue Breakdown in IDR billion +15.5% YoY +13.6% QoQ 6,132 QoQ / YoY 278 9.4% / -11.7% 5,307 5,400 730 5,168 5,213 4,977 254 4.4% / 14.8% 299 315 314 225 699 610 636 739 672 5 124 5,124 4,259 4,357 4,447 15.2% / 17.6

63. Slide 63: Strong EBITDA growth & boosted net profit by tower sale

    Strong EBITDA growth & boosted net fit* b profit* by ttower sale l EBITDA and EBITDA margin Net profit in IDR billion in IDR billion 50.5% 47.0% 47.1% +55.5% YoY 44.7% 44.0% 45.1% 1 628 1,628 +3.3% YoY +8.9% QoQ +97.3% YoY 2,768 1,047 2,681 2,541 2,308 2,295 2,338 531 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3

64. Slide 64: Net debt to EBITDA ratio improved on receipt of tower sale proceeds

    Net debt to EBITDA ratio improved on i t off ttower sale receipt l proceeds d Gross debt and gross debt/EBITDA Net debt and net debt/EBITDA in IDR billion in IDR billion 2.56 2.06 1.91 2.24 2.22 1.79 +0.8% YoY -11.8% YoY 24,421 22,099 18,236 20,120 21,929 17,751 9M-10 9M-11 9M-12 9M-10 9M-11 9M-12 G

65. Slide 65: Strong free cash flow

    Strong free cash flow Free cash flow Capex and Capex/Revenue in IDR billion in IDR billion 3,527 44.1% 28.2% 32.1% 26.1% 22.3% 1,070 906 1,137 22.7% 2,298 1,731 83 1,349 1,403 1,334 1,202 -970 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 Capex Capex/Revenue • Free cash flo

66. Slide 66: Management Focus and Key Updates

    Management g Focus and Keyy Updates Indosat IR - New Template v23 1220.pptx 66

67. Slide 67: We are improving our commercial execution to accelerate the momentum

    We are improving our commercial execution ti tot accelerate l t theth momentum t Continue prepaid portfolio re-design and pricing fine fine-tuning tuning Brand portfolio refresh IIntroduce t d new data d t strategy t t ffocusedd on increased relevance in the market and better profitability Sales and

68. Slide 68: Near-term Management focus

    Near-term Management focus Continue improving execution & keep ggood commercial momentum Strengthen data growth & performance Enhance customer experience; roll-out roll out high performance data network (3G 900) Operational efficiency program Indosat Presentation 68 Indosat IR - New Template v23 122

69. Slide 69: To be the customer's preferred choice for all information and communication needs

    To be the customer's preferred choice for allll iinformation f ti and d communication i ti needs d Our three-year three year aspirations is to become: … Leader in Data & Smartphone … Best in Customer Experience … Best in Cost Structure … Highest Revenue Growth … Best in People Experience Indosat Pre

70. Slide 70: Thank You

    Thank You Indosat Investor Relations Jl. Medan Merdeka Barat No. 21 Any further questions? Jakarta - 10110 Tel: +62 21 30442615 Investor@indosat com Investor@indosat.com Upcoming events FY-2012 Results in 1Q 2013 Indosat Presentation 70 Indosat IR - New Template v23 1220.pptx 70

71. Slide 71: Supplemental Information

    Supplemental pp Information Indosat IR - New Template v23 1220.pptx 71

72. Slide 72: Credit ratings maintained

    Credit ratings maintained On 8 February 2012, Moody’s affirmed Indosat Ba1 ratings and Stable outlook, follows announcement that Indosat has agreed to sell 22,500 500 of its communications towers to PT Tower Bersama Infrastructure Tbk. On 30 April 2012, FitchRatings upgraded Indonesia-based Indosat

73. Slide 73: We are within our covenants

    We are within our covenants 9M-10 9M-11 9M-12 Net debt to equity 0.85 1.05 0.87 Gross debt to equity 1.14 1.15 1.08 < 2.5x Net debt to EBITDA 1.91 2.06 1.79 Gross debt to EBITDA 2.56 2.24 2.22 < 3.5x Interest coverage 4.59 5.48 5.86 > 3.0x Indosat Presentation 73 Indosat IR - New Template v23 1220.p

74. Slide 74: Indonesia Wireless Market

    Indonesia Wireless Market Source: Macquarie Research, Dec 2012 Indosat Presentation 74 Indosat IR - New Template v23 1220.pptx 74

75. Slide 75: Indonesia Wireless Market

    Indonesia Wireless Market Source: Macquarie Research, Dec 2012 Indosat Presentation 75 Indosat IR - New Template v23 1220.pptx 75

76. Slide 76: Any further questions? Qtel Group Investor Relations Department

    Qtel Group Investor Relations Department Any further Qtel Headquarters Building – PO Box 217 questions? West Bay, Doha IR@qtel com qa IR@qtel.com.qa Upcoming p g 2012 Full Year Results – March 3, 3 2013 events

Qtel Group — Investor Day (February 2013) on 6ix