Ooredoo Q.p.s.c · QSE:ORDS

Ooredoo Q.p.s.c — Ooredoo — FY2012 Earnings Presentation

42 slides from Ooredoo Q.p.s.c's earnings presentation, Mar 4, 2013

  1. Slide 1: Full Year 2012 Results

    Full Year 2012 Results 4 March 2013

  2. Slide 2: Disclaimer

    Disclaimer • Ooredoo (parent company Qatar Telecom (Qtel) Q.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

  3. Slide 3: Welcome to Ooredoo

    Welcome to Ooredoo • Ooredoo will take the Group to the next level: – Means "I want" in Arabic – Ooredoo helping people grow by providing a platform for empowerment • Launch event at 2013 Mobile World Congress, Barcelona • Brand change is a natural evolution: – Value add is positive – Name and execu

  4. Slide 4: Contents

    Contents • Results review • Strategy review • Operations review 4 March 4, 2013 Full Year Results Presentation

  5. Slide 5: Key 2012 highlights

    Group results Key 2012 highlights Solid full year performance in line with guidance • Increases in Revenue of 6.2%, EBITDA of 5.1% and Net Profit attributable to Ooredoo shareholders of QAR 2,944 million, up 13% despite negative foreign exchange impacts • Group revenue’s driven by healthy growth in

  6. Slide 6: Revenue and EBITDA

    Group results1 Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin +6% +16% +5% 33,714 +19% +14% 31,745 +11% 15,546 14,796 27,377 12,465 24,025 11,231 47% 46% 47% 46% 12M'09 12M'10 12M'11 12M'12 12M'09 12M'10 12M'11 12M'12 Continuous healthy top line and EBITDA growth Note: (1) All Ind

  7. Slide 7: Net profit and net debt

    Group results Net profit and net debt1 Net profit attributable to Ooredoo shareholders Net debt1 (QARm) and net debt / EBITDA (QARm) Net Foreign Exchange +5% +13% +20% +2% 28,401 -10% 2,944 27,268 -12% 25,685 2,825 2,888 2,606 22,740 2,479 2,651 3,195 2,785 2.3 1.8 1.9 1.9 346 103 (46) (252) 12M'09

  8. Slide 8: Free cash flow and capital expenditure

    Group results Free cash flow and capital expenditure Free cash flow 1(QARm) Capex (QARm) and capex / revenue (%) +63% +2% 5,516 5,626 8,393 +11% -17% -5% 7,316 6,942 +1,324% 6,575 3,380 35% 26% 21% 22% 237 12M'09 12M'10 12M'11 12M'12 12M'09 12M'10 12M'11 12M'12 Targeted investments in our key market

  9. Slide 9: Total group debt breakdown

    Group results Total group debt breakdown Total group debt breakdown Total group debt (QARm) (as of December 31, 2012) Short-term Long-term Others 46,852 46,246 7% 2,610 39,765 36,086 13,953 Indonesia 1,985 7,373 21% 44,242 34,101 32,293 32,392 Qatar 72% 12M'09 12M'10 12M'11 12M'12 Flexible debt mana

  10. Slide 10: Debt profile – Qtel Q.S.C. Only

    • Group results • Debt profile – Qtel Q.S.C. Only (US$ millions) 1,600 1,400 1,400 1,286 1,200 1,000 1,000 1,000 1,000 750 750 800 600 500 * 500 * 600 400 200 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2043 Loan Type Issue Interest Amount Usage Rate(1) Maturity Bond

  11. Slide 11: Total and proportional customers

    Group results Total and proportional customers Total customers Proportional customers +11% +31% +12% 92,907 62,715 +23% 83,352 +15% 74,140 +24% 47,902 60,525 41,697 33,601 12M'09 12M'10 12M'11 12M'12 12M'09 12M'10 12M'11 12M'12 Proportional growth a result of increased stakes in Wataniya Group and A

  12. Slide 12: 2012 performance summary and 2013 guidance

    Group results 2012 performance summary and 2013 guidance 12 months ended 2012 Annual 2013 Annual 2012 / 2011 QAR Millions December 2012 Guidance Guidance Consolidated revenue 33,714 +6% +4 - 9% +2 - 6% EBITDA 15,546 +5% +3 - 8% +1 - 5% Net profit attributable to Ooredoo 2,944 +13% - - shareholders E

  13. Slide 13: Contents

    Contents • Results review • Strategy review • Operations review 13 March 4, 2013 Full Year Results Presentation

  14. Slide 14: NMTC Mandatory Tender Offer and Tunisiana step-up

    NMTC Mandatory Tender Offer and Tunisiana step-up October 2012 – Increased stake in NMTC to 92.1% • Acquired additional stake at a reasonable valuation • Ability to deliver greater benefits as control deepens • Value and earning accretive December 2012 – Acquired 15% from Tunisian government • Reduc

  15. Slide 15: Asiacell step-up and IPO

    Asiacell step-up and IPO June 2012 – Increased stake from 30% to 60% • Total consideration of US$ 1.47 billion • Value and earning accretive January/February 2013 – IPO Iraq Stock Exchange • 25% of share capital for $1.27 billion • Largest offering in MENA since 2008 • ~2,900 new shareholders • Oore

  16. Slide 16: Contents

    Contents • Results review • Strategy review • Operations review 16 March 4, 2013 Full Year Results Presentation

  17. Slide 17: Group operations: Qatar

    Group operations Qatar QARm Revenue • Record annual revenue of more than QR 6bn +9% 6,220 • Value market share maintained in still growing market 5,704 • EBITDA Margin maintained through cost optimization program • Five-fold increase in Mobile Money customers to 70K 12M'11 12M'12 • Further expansion

  18. Slide 18: Group operations: Iraq

    Group operations Iraq QARm Revenue • 10 million customer milestone achieved - strong +16% 6,878 market position confirmed 5,934 • Healthy growth in revenue and EBITDA • Net additions in all key segments including pre-paid, post-paid and corporate 12M'11 12M'12 • Post-period fully subscribed IPO with

  19. Slide 19: Group operations: Indonesia

    Group operations Indonesia QARm Revenue EBITDA & Margin • Revenue growth driven by voice, data and SMS +3% • Healthy operating margin due to topline achievements +6% 8,804 8,550 4,414 and cost efficiency efforts 4,159 • Network modernization and U900 conversion 49% 50% continued • Mentari (high-end

  20. Slide 20: Group operations: Oman

    Group operations Oman QARm Revenue • Highest customer net additions since 2010 -2% • Market growing, but highly challenging competitive 1,939 1,907 environment • Negative impact of lower SMS traffic on Revenue and EBITDA 12M'11 12M'12 • “Turbo charging“ of network modernization to accommodate growth

  21. Slide 21: Group operations: Kuwait

    Group operations Kuwait QARm Revenue EBITDA & Margin • Customer base now in excess of two million -11% • Market remains highly competitive -25% 1,469 3,223 2,880 786 • Higher handset sales impacting margins negatively 1,101 592 48% • Network modernization continues to enhance data 44% 46% offering w

  22. Slide 22: Group operations: Algeria

    Group operations Algeria QARm Revenue EBITDA & Margin • Further subscriber and value share increases in +18% +25% overall subdued market growth environment 3,479 2,961 1,374 • ARPU positively impacted as a result of focus on 1,101 post-paid and higher value pre-paid customers 37% 39% • Corporate seg

  23. Slide 23: Group operations: Tunisia

    Group operations Tunisia QARm Revenue EBITDA & Margin • Strong underlying operational performance despite significant negative F/X impacts -5% -14% 2,779 2,633 1,573 • Commercial initiatives helping to drive results: 1,350 – 10-year Tunisiana anniversary promotion 57% – Launch of mobile Wi-Fi 51% –

  24. Slide 24: Contents

    Contents • Results review • Strategy review • Operations review • Additional information 24 March 4, 2013 Full Year Results Presentation

  25. Slide 25: Key operations importance to Group

    Additional information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 33,714 31,745 15,546 14,796 27,377 12,465 24,025 11,231 12M'09 12M'10 12M'11 12M'12 12M'09 12M'10 12M'11 12M'12 Qatar 5,686 5,400 5,704 6,220 Qatar 3,296 2,878 2,948 3,249 Indonesia 6,579 7,942 8,550 8,804 Indones

  26. Slide 26: Key operations importance to Group: capex and customers

    Additional information Key operations importance to Group Capex Total Customers Tunisia Others Qatar Tunisia Qatar Others 8.0% 2.4% 6.6% 7.7% 2.7% 1.3% Iraq Iraq Algeria 11.2% 10.8% 9.8% Algeria 11.3% Kuwait 2.2% Kuwait Oman 4.0% 2.4% Oman 8.0% Indonesia 48.7% Indonesia 63.1% 2012 Capex = QAR 7,316

  27. Slide 27: Blended ARPU development

    Additional information Blended ARPU development (QAR) Qatar Iraq Oman Maldives KSA Palestine 46.6 45.5 46.5 43.9 42.9 42.4 43.9 79.0 80.4 41.2 123.9 40.3 39.3 154.3 153.2 148.7 61.6 112.6 108.5 111.4 145.2 149.5 57.7 60.1 59.4 59.2 58.8 72.4 73.2 36.6 35.4 137.8 68.2 70.8 102.5 91.1 Q3'11 Q4'11 Q1'1

  28. Slide 28: Qatar

    Additional information Qatar Key developments Operator importance to group • Value market share maintained in still growing market Customers: 2.7%; Revenue: 18.4%; EBITDA: 20.9%; Capex: 6.6% • EBITDA Margin maintained through cost optimization Pop : 1.8M (2012 est.) program Qatar Pop growth: 4.0% •

  29. Slide 29: Iraq – Asiacell

    Additional information Iraq Key developments Operator importance to group • 10 million customer milestone achieved - strong Customers: 10.8%; Revenue: 20.4%; EBITDA: 23.7%; Capex: 11.2% market position confirmed Pop : 33.6M (2012 est.) • Healthy growth in revenue and EBITDA Pop growth: 2.4% Iraq Mob

  30. Slide 30: Indonesia

    Additional information Indonesia Key developments Operator importance to group • Revenue growth driven by voice, data and SMS Customers: 63.1%; Revenue: 26.1%; EBITDA: 28.4%; Capex: 48.7% • Healthy operating margin due to topline achievements Pop : 241.0M (2012 est.) Indonesia and cost efficiency ef

  31. Slide 31: Oman – Nawras

    Additional information Oman Key developments Operator importance to group • Highest customer net additions since 2010 Customers: 2.4%; Revenue: 5.7%; EBITDA: 5.8%; Capex: 8.0% • Market growing, but highly challenging competitive Pop: 3.1M (2012 est.) environment Oman Pop growth: 3.1% • Negative impa

  32. Slide 32: Kuwait – Wataniya

    Additional information Kuwait Key developments Operator importance to group • Customer base now in excess of two million Customers: 2.2%; Revenue: 8.5%; EBITDA: 7.1%; Capex: 4.0% • Market remains highly competitive Pop : 3.7M (2012 est.) • Higher handset sales impacting margins negatively Pop growth

  33. Slide 33: Algeria – Nedjma

    Additional information Algeria Key developments Operator importance to group • Further subscriber and value share increases in overall Customers: 9.8%; Revenue: 10.3%; EBITDA: 8.8%; Capex: 11.3% subdued market growth environment Pop : 36.0M (2012 est.) • ARPU positively impacted as a result of focus

  34. Slide 34: Tunisia – Tunisiana

    Additional information Tunisia Key developments Operator importance to group • Strong underlying operational performance despite Customers: 7.7%; Revenue: 7.8%; EBITDA: 8.7%; Capex: 8.0% significant negative F/X impacts Pop : 10.7M (2012 est.) • Commercial initiatives helping to drive results: Pop g

  35. Slide 35: Palestine – Wataniya Mobile

    Additional information Palestine Key developments Operator importance to group • Revenue growth of 12% with EBITDA 58% higher Customers: 0.7%; Revenue: 0.9%; EBITDA: 0.1%; Capex: 1.1% compared to 2011 Pop1 : 4.04M Palestine • Customer base now at 610K compared to 465K in Pop growth: 3% Mob. penetrat

  36. Slide 36: Maldives – Wataniya

    Additional information Maldives Key developments Operator importance to group • Revenue and EBITDA growth maintained Customers: 0.2%; Revenue: 0.4%; EBITDA: 0.2%; Capex: 0.2% • Commercial strategy focused on resorts and data Pop : 0.331M (2012 est.) Maldives driving additional growth Pop growth: 1.8

  37. Slide 37: KSA – Bravo

    Additional information KSA Key developments Operator importance to group • Revenue steady despite fewer subscribers Customers: 0.2%; Revenue: 0.7%; EBITDA: N/A; Capex: N/A • Wataniya Group stake in Bravo increased to 100% in Pop : 28.2M (2012 est.) Q4 Pop growth: 2.2% KSA Mob. penetration: 191% GDP

  38. Slide 38: Pakistan and Philippines – wi-tribe

    Additional information wi-tribe Pakistan Key developments Operator importance to group Customers: 0.2%; Revenue: N/A; EBITDA: N/A; Capex: 0.40% • WiMAX-based service with commercial launch end of June 2009 Pop : 178.9M (2012 est.) Pakistan • Fixed wireless customer base at the end of 12M 2012 Pop gr

  39. Slide 39: Statutory corporate tax rates

    Additional information Statutory corporate tax rates Losses Losses Statutory c/fwd c/back Notes tax rate allowed allowed Algeria 25% 4 years - Bahrain - - - Indonesia 25% 5 years - Iraq 15% 5 years - Deduction of losses c/fwd limited to 50% of taxable income for each year Jordan 24% Indefinitely - 3

  40. Slide 40: Key operating country statistics

    Additional information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives Oman Qatar KSA Tunisia 2012 (est.) GDP real growth % 2.6 6.0 10.2 6.3 1.5 5.0 6.3 6.0 2.7 (2011) (2.4) (6.5) (8.9) (8.2) (5.8) (5.4) (14.1) (7.1) (-1.8) Consumer prices % 8.4 4.4 6.0 4.3 12.3 3.2 2.0 4.9 5

  41. Slide 41: Ooredoo Investor Relations Department

    Ooredoo Investor Relations Department Any further PO Box 217 questions? West Bay, Doha IR@qtel.com.qa Upcoming 2012 Annual General Meeting – March 31, 2013 events 41 March 4, 2013 Full Year Results Presentation

  42. Slide 42: Thank-you

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