Slide 1: Ooredoo Group 1H 2018 Results
Ooredoo Group 1H 2018 Results July 2018 OG 1H 2018 Financial Results |
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. Strategy update 3. Operations review 4. Additional information OG 1H 2018 Financial Results | 3
Slide 4: Group Results: Key Highlights
Group Results Results Strategy Operations Additional Overview Review Review Review Information Key Highlights Financial highlights • H1 2018 Revenue was QAR 15.3 billion, driven by strong contributions from Qatar, Iraq, Oman, Kuwait, Tunisia and Myanmar offset by reductions in Indonesia and Algeria.
Slide 5: Revenue and EBITDA
Results Strategy Operations Additional Group Results Overview Review Review Review Information Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin -1% +2% +7% -6% 16,042 16,259 15,914 +0% 6,939 -10% 15,285 6,456 6,478 6,212 43% 40% 41% 41% 1H-2015 1H-2016 1H-2017 1H-2018 1H-2015 1H-201
Slide 6: Net Profit
Group Results Results Strategy Operations Additional Overview Review Review Review Information Net Profit Net Profit Attributable to Ooredoo shareholders (QARm) Total Net Profit Net Foreign Exchange Pre FX Net Profit +46% 1,462 -25% 1,097 1,002 922 -37% 689 1,301 1,022 839 540 (299) 75 (150) 1H'15 1
Slide 7: Capital Expenditure and Free Cash Flow
Group Results Results Strategy Operations Additional Overview Review Review Review Information Capital Expenditure and Free Cash Flow CAPEX (QARm) & CAPEX/ Revenue (%) Free Cash Flow (QARm) +14% +197% 3,847 3,840 -18% 3,383 -37% 3,138 2,411 +9% -32% 24% 1,796 1,640 15% 10% 12% 1,138 1H-2015 1H-2016
Slide 8: Total Customers
Group Results Results Strategy Operations Additional Overview Review Review Review Information Total Customers Total Customers (000) +14% +14% -13% 149,216 130,424 130,148 113,913 1H-2015 1H-2016 1H-2017 1H-2018 Growing customer numbers in Iraq, Kuwait, Tunisia & Myanmar offset by a major drop due t
Slide 9: Net Debt
Results Strategy Operations Additional Group Results Overview Review Review Review Information Net Debt Net Debt (QARm) and Net Debt / EBITDA -0% -6% -12% 29,672 29,593 27,858 24,573 2.4 2.3 1.9 1.8 1H-2015 1H-2016 1H-2017 1H-2018 Positive trend of lower Group Net Debt continued, Net Debt to EBITDA
Slide 10: 2018 1H performance summary
Group Results Results Strategy Operations Additional Overview Review Review Review Information 2018 1H performance summary Original Group Financials 2018 % Change 2018 Full Year New Guidance (QAR bn) Actual 2018 / 2017 Guidance over 2018 / 2017 2017 Revenue 15.3 -6% -1.5% to +1.5% -3.5% to -6.5% EBI
Slide 11: Contents
Contents 1. Results review 2. Strategy update 3. Operations review 4. Additional information OG 1H 2018 Financial Results | 11
Slide 12: “Get Digital!”
Ooredoo has a bold new vision and has embarked into a major transformation program OLD VISION NEW VISION Enriching people’s lives as a leading Enriching people’s digital lives international communications company We are embarking into a major Group digital transformation program: “Get Digital!” Sour
Slide 13: We updated LEAD for digital and diversification
We updated LEAD for digital and diversification OLD LEAD Market Performance Efficient Leader Culture Models • Leading network • People/Skills • Asset light • Better distribution • Organization • Optimized channels • Smart services • Governance • Group synergies OG 1H 2018 Financial Results | 13
Slide 14: Digital is now integrated with our LEAD strategy
Digital is now integrated with our LEAD strategy NEW LEAD Market Performance Efficient Extend & Leader Culture Models Leverage • Smarter distribution • Culture • Advanced analytics • Connectivity • Leading data networks transformation • Re-engineered cost • Consumer content • Lean & Agile models • B
Slide 15: Not actively looking to buy more Telco; investment criteria unchanged
We are not actively looking to buy more Telco; our investment criteria remain unchanged Geographies Sub-Saharan Latin Globally Africa MENA Asia America dispersed Sector Core Selected adjacencies Full range of adjacencies Target size Small Large Investment model Minority Minority with Majority (littl
Slide 16: Operating Companies to become “Digital Enablers”
We aspire for our Operating Companies to become “Digital Enablers” 2. To find new levers of growth, across Group, adjacent to our connectivity heritage while minimizing risk 1. To make each OpCo relevant as a telco in the digital age Point Solution E2E Experience B2B(2C) Ecosystem Platforms Driver P
Slide 17: Contents
Contents 1. Results review 2. Strategy update 3. Operations review 4. Additional information OG 1H 2018 Financial Results | 17
Slide 18: Ooredoo Qatar
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Qatar Ooredoo Qatar QARm • Ooredoo became the first operator in the world to launch a Revenue live 5G network (5G NR, 3.5 GHz spectrum) -4% • Market leading position maintained - Ooredoo’s fixed line 4,
Slide 19: Indonesia
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Indonesia QARm Indosat Ooredoo Revenue EBITDA & Margin • As anticipated another challenging quarter • New SIM registration process and changed marketing 4,129 -29% 1,939 strategy (from “push” to “pull”)
Slide 20: Iraq
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Iraq QARm Asiacell Revenue § Recovery continues with growth in revenue, EBITDA and +3% customer numbers § After liberation of occupied areas more sites are back on-air, 2,175 2,248 stable security in Mo
Slide 21: Oman
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Oman QARm Ooredoo Oman Revenue § Revenues growth is driven by increases in both mobile and +3% fixed data revenue 1,318 1,351 § EBITDA growth due to higher revenues as well as efficient cost management
Slide 22: Kuwait
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Kuwait QARm Ooredoo Kuwait Revenue EBITDA & Margin • Strong Revenue growth was driven by handset sales -9% • Intense competition continues +23% 322 294 • 5% increase in customer numbers to 2.4 million,
Slide 23: Algeria
Results Operations Additional Overview Group Operations Review Review Information Algeria QARm Ooredoo Algeria Revenue EBITDA & Margin • Algerian mobile market value dropped due to intense price -19% competition, seasonality related to Ramadan, and ongoing 1,738 -28% 778 1,401 consumer purchasing po
Slide 24: Tunisia
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Tunisia QARm Ooredoo Tunisia Revenue EBITDA & Margin • Displayed a solid performance yoy with growth in revenue, +4% +6% EBITDA and customer numbers 278 293 744 771 • YTD Revenue grew 8% in local curren
Slide 25: Myanmar
Group Operations Results Strategy Operations Additional Overview Review Review Review Information Myanmar QARm Ooredoo Myanmar Revenue EBITDA & Margin • Strong performance yoy with growth in revenue, EBITDA +193% and customer numbers +19% 130 • Data and Digital revenue was a key growth engine 742 62
Slide 26: Contents
Contents 1. Results review 2. Strategy update 3. Operations review 4. Additional information OG 1H 2018 Financial Results | 26
Slide 27: Key Operations Importance to Group
Results Strategy Operations Additional Overview Review Review Review Information Additional Information Key Operations Importance to Group Revenue (QARm) EBITDA (QARm) 16,042 15,914 16,259 15,285 6,456 6,478 6,939 6,212 1H'15 1H'16 1H'17 1H'18 1H'15 1H'16 1H'17 1H'18 Qatar 4,003 4,033 4,042 3,897 Qa
Slide 28: CAPEX & Customers
Group Operations Breakdown CAPEX & Customers CAPEX Breakdown (%) Customer Breakdown (%) Others, Qatar , Others Qatar 2% Myanmar 15% 1% 3% Myanmar, 7% Tunisia 9% 6% Tunisia, Algeria 5% 10% Algeria, Kuwait 14% 2% Oman 2% Indonesia Kuwait, 6% 58% Indonesia, Iraq Oman, 38% 10% 10% Iraq1% 1H 2018 CAPEX =
Slide 29: Total Group Debt Breakdown
Results Strategy Operations Additional Group Results Overview Review Review Review Information Total Group Debt Breakdown Total Group Debt Breakdown Total Group Debt (QARm) (as at June 30, 2018) Long term Short term Indonesia 45,863 13% 43,989 41,107 4,756 7,656 38,416 Others 3,191 8% 7,804 39,233 3
Slide 30: Debt Profile – Ooredoo Q.P.S.C. level
Group Results Debt Profile – Ooredoo Q.P.S.C. level 2,000 Loans Bonds Sukuk 1,600 1,500 1,250 1,000 1,000 1,000 750 650 600 500 500 500 500 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2043 Interest/ Issue Loan Type (in USD mn) Amount Usage Rate* Maturity Bonds/Sukuk (in USD mn) Profit Maturi
Slide 31: Blended ARPU
Group Operations Breakdown Blended ARPU Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 54.9 56.7 55.4 53.3 52.2 52.9 116.6 115.7 108.1 112.8 110.5 116.9 29.0 30.4 31.2 29.9 28.4 28.4 62.4 60.0 63.3 62.6 58.8 60.3 26.7 28.8 29.7 25.1 23.1 22.7 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018
Slide 32: Statutory Corporate Tax Rates
Additional Information Results Strategy Operations Additional Overview Review Review Review Information Statutory Corporate Tax Rates Statutory Losses C/Fwd Notes Tax Rate Allowed Algeria 26% 4 years Indonesia 25% 5 years Iraq 15% 5 years GCC companies (including NMTC)are exempted and are subjected
Slide 33: Thank You
Next Quarterly Results (tbc) October 29 Thank You OG 1H 2018 Financial Results |