Slide 1: Ooredoo Group FY 2023 Results
OOREDOO GROUP FY 2023 RESULTS 19 February 2024
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: Presenters
Presenters Strategy and vision Results review Aziz Aluthman Fakhroo MD and Group CEO Operations review Eyas Naif Assaf Deputy GCFO | | 3
Slide 4: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 4
Slide 5: Enriching people's digital lives
Our Vision Enriching people’s digital lives Positioning Ooredoo as the Leading digital infrastructure provider in the region Excellence in Value Focused Portfolio Customer Experience Our [Reduce Asset Base With Better External Use] [Protect & grow our customer asset] strategy (2022-2024) Strengthen
Slide 6: Strategy update
Strategy update Towers Data centers Fintech Progress on data centers carve-outs: • Established FinTech holding company, Signed definitive agreements between Ooredoo, • Qatar and Tunisia complete Zain and TASC, to create the largest tower Ooredoo Financial Technology • Kuwait and Iraq expect to compl
Slide 7: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 7
Slide 8: Group results | Key highlights for FY 2023
Group results | Key highlights for FY 2023 Delivered strong results for the year, while progressing on our strategic priorities Revenue EBITDA and FCF Net Profit & Dividend Updates Reported Net Profit up 28% to Signed definitive agreements Healthy growth of 2% to Reported EBITDA grew 4% (normalized
Slide 9: Ooredoo Group | FY 2023 YoY highlights
Ooredoo Group | FY 2023 YoY highlights Revenue EBITDA EBITDA margin Capex intensity - +2% +4% (+5%*) +1pp (+1pp*) Stable QAR23.2bn QAR9.7bn 42% 12% Free Cash Flow Net Profit Net Debt/EBITDA Customers +4% (+6%*) +28% to QAR3.0bn -0.4x +3% to 57.6mn QAR6.9bn +16%* to QAR3.3bn 0.7x -1%** to 156.4mn *No
Slide 10: Ooredoo Group | Q4 2023 YoY highlights
Ooredoo Group | Q4 2023 YoY highlights Revenue EBITDA EBITDA margin Capex intensity +1% +4% (*+2%) +1pp (*flat) +1pp QAR5.9bn QAR2.3bn 39% 21% Free Cash Flow Net Profit Net Debt/EBITDA Customers +3% (*flat) +27% to QAR0.4bn -0.4x +3% to 57.6mn -1%** to 156.4mn QAR1.1bn +8%* to QAR0.7bn 0.7x *Normali
Slide 11: Revenue
Revenue Group revenue FY 2023 Q4 2023 YoY change (QAR mn) Amount (QAR mn) and % - Quarterly +2% +1% +79 48 27 14 13 22,698 23,164 94 -11% 94 8% 8% 2% 11% -14% 269 17% (11) (34) >100% -20% 28% 5.923 5.845 (435) Group Iraq Others Algeria Oman Tunisia Kuwait Maldives Palestine Myanmar Qatar Group Q4 20
Slide 12: EBITDA
EBITDA Group EBITDA FY 2023 Q4 2023 YoY change (QAR mn) Amount (QAR mn) and % - Quarterly EBITDA margin (%) +4% +4% +88 16 43 9,717 72 26% -15% -7% -5% 9,375 20% -10% -11% (5) (6) (14) 98 18% (15) (17) -9% 2,326 2,238 60% (84) 41% 42% Group Algeria Iraq Kuwait Maldives Palestine Myanmar Oman Tunisia
Slide 13: Net Profit | FY 2023 Reported and Normalized
Net Profit | FY 2023 Reported and Normalized FY 2023 Net Profit attributable to Ooredoo shareholders (QARmn) +16% +28% 3,279 3,016 2,821 2,360 FY 2022 Reported FY 2023 Reported FY 2022 Normalized FY 2023 Normalized • Net Profit excl. FX impact, impairments & major one-offs (NMTC legal case gain, IOH
Slide 14: Net Profit | FY 2023 Reported to Normalized reconciliation
Net Profit | FY 2023 Reported to Normalized reconciliation FY 2023 Net Profit reported to FY 2023 normalized FY 2022 Net Profit reported to FY2022 normalized (QARmn) (QARmn) 300 (94) (139) (446) 3,279 2,821 3,016 642 (245) 195 2,360 512 FY 2023 Impairment^ FX impact IOH gain Meeza NMTC legal FY 2023
Slide 15: Net Profit | Q4 2023 Reported and Normalized
Net Profit | Q4 2023 Reported and Normalized Q4 2023 Net Profit attributable to Ooredoo shareholders (QARmn) +8% 745 687 +27% 352 277 Q4 2022 Reported Q4 2023 Reported Q4 2022 Normalized Q4 2023 Normalized • Q4 2023 Net Profit excl. FX impact, impairment and gain on data center in IOH increased by 8
Slide 16: Net Profit | Q4 2023 Reported to Normalized reconciliation
Net Profit | Q4 2023 Reported to Normalized reconciliation Q4 2023 Net Profit reported to Q4 2023 normalized Q4 2022 Net Profit reported to Q4 2022 normalized (QARmn) (QARmn) (37) 745 50 687 195 380 352 215 277 Q4 2023 Impairment FX impact IOH gain on DC Q4 2023 Q4 2022 FX impact Impairment Q4 2023
Slide 17: Capex
Capex Group Capex FY 2023 (QAR mn) & Capex / Revenue % FY 2023 (Change %) TUN 44 +3% PAL 43 2,729 2,821 MAL 35 IRA 11 ALG 6 KUW -6 12% OMA -8 12% QAT -11 FY-22 FY-23 MYN -29 Capex breakdown (FY 2023) FY 2023 summary: MYN Others PAL MAL • Tunisia: Driven by investments in Fibre, Submarine Cable & TDD
Slide 18: Free Cash Flow
Free Cash Flow (FCF: EBITDA – Capex ) Group FCF FY 2023 FY 2023 YoY Change (QAR mn) Amount (QAR mn) and % - quarterly +4% +3% 6,896 +4 6,646 17 43 67 (9) (19) 80 (47) 81 (66) 1,096 1,064 (115) Group Iraq Algeria Oman Kuwait Maldives Myanmar Palestine Tunisia Others Qatar Group FY-22 FY-23 Q4 2022 Q4
Slide 19: Customer base
Customer base Total Customers at FY 2023 YoY Change (‘000) (mn) +3% +3% +1,623 56.0 57.6 139 132 50 29 4 599 337 57,590 982 (650) 55,967 Group Myanmar Iraq Algeria Kuwait Tunisia Oman Palestine Maldives Qatar Group FY22 FY23 FY-22 FY-23 Customers breakdown Summary (FY 2023) KUW PAL MAL • Customer ba
Slide 20: Group Results: 2023 Actual & FY 2024 Guidance
Group Results 2023 Actual & FY 2024 Guidance % change 2023 Guidance 2024 Guidance Group Finance KPIs 2023 Achieved (YoY) targets Revenue QAR 23.2 billion +2% Flat Exceeded Flat EBITDA margin 42% +1pp ~low 40%’s Met ~ low 40%’s Capex QAR 2.8 billion +3% ~QAR 3 billion Met ~QAR 3.5 billion • Exceeded
Slide 21: Debt Profile
Debt Profile QAR’mn Strong investment grade rating Repayment schedule Fixed vs Floating rate debt portion 448 • Net debt/EBITDA ratio of 0.7x, below 4% current Board guidance of 1.5x to 2.5x 5,014 • Strong liquidity position (combination of Cash and undrawn RCFs ) 10,531 5,462 11,948 • RCF facilitie
Slide 22: Shareholder returns | Dividends
Shareholder returns | Dividends Dividend policy – effective 2019 Dividend history 59.6% 59.1% Payout ratio Sustainable & progressive dividend policy, 48.9% 55.0% 40.0% aiming for a dividend payout in the range of 40% to 60% of normalized earnings^ 0.55 0,55 5,5 5.2% 0,50 4.7% 5,0 0,45 4.3% 0.43 4,5
Slide 23: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 23
Slide 24: Qatar
Qatar Quarterly Trend (QAR mn) FY 23 (QAR mn, % YoY) -20% Revenue EBITDA EBITDA Margin -435 2,222 1,948 1,818 1,734 1,786 7,286 3,603 49% 51% 51% 51% 44% 45% -8% -6% 1pp 988 988 822 888 904 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (QAR mn, % YoY) FY 2023 Mobile Fix
Slide 25: Kuwait
Kuwait Quarterly Trend (KWD mn) FY 23 (QAR mn, % YoY) +2% +1 Revenue EBITDA EBITDA Margin 63 62 61 60 60 2,914 971 33% 35% 36% 31% 32% 30% 4% 14% 3pp 18 19 19 22 22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (KWD mn, % YoY) FY 2023 Mobile Fixed • Higher service reven
Slide 26: Oman
Oman Quarterly Trend (OMR mn) FY 23 (QAR mn, % YoY) +8% +5 Revenue EBITDA EBITDA Margin 66 64 63 66 61 - 2,453 1,156 47% 51% 47% 48% 49% 44% 0% -9% -5pp 31 31 31 31 29 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (OMR mn, % YoY) FY 2023 Mobile Fixed • Revenue remained
Slide 27: Iraq
Iraq Quarterly Trend (IQD bn) FY 23 (QAR mn, % YoY) +13% +51 Revenue EBITDA EBITDA Margin 434 446 395 386 393 4,452 1,953 44% 45% 46% 47% 21% 1pp 41% 38% 24% 163 173 182 202 170 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (IQD mn, % YoY) FY 2023 Mobile Fixed • Sustain
Slide 28: Algeria
Algeria Quarterly Trend (DZD bn) FY 23 (QAR mn, % YoY) +14% +3 Revenue EBITDA EBITDA Margin 24 24 22 21 22 2,462 992 40% 39% 40% 42% 40% 5pp 29% 11% 26% 8 9 10 10 6 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (DZD mn, % YoY) FY 2023 Mobile Fixed • Delivered growth in
Slide 29: Tunisia
Tunisia Quarterly Trend (TND mn) FY 23 (QAR mn, % YoY) +5% +16 Revenue EBITDA EBITDA Margin 331 322 307 307 - 293 1,470 556 38% 44% 41% 44% 0% -15% -7pp 37% 29% 135 125 144 120 85 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (TND mn, % YoY) FY 2023 Mobile Fixed • Reven
Slide 30: Myanmar
Myanmar Quarterly Trend (MMK bn) +6% FY 23 (QAR mn, % YoY) +8 Revenue EBITDA EBITDA Margin 138 145 142 147 136 - 850 327 38% 36% 38% 41% 37% 38% -18% -19% 0pp 49 51 60 52 56 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (MMK mn, % YoY) FY 2023 Mobile Fixed • Revenue inc
Slide 31: Maldives
Maldives Quarterly Trend (MVR mn) FY 23 (QAR mn, % YoY) +11% +57 Revenue EBITDA EBITDA Margin 557 500 514 502 524 495 278 56% 55% 56% 55% 59% 52% 9% 14% 3pp 283 280 287 328 260 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (MVR mn, % YoY) FY 2023 Mobile Fixed • Solid in
Slide 32: Palestine
Palestine Quarterly Trend (USD mn) FY 23 (QAR mn, % YoY) -11% -3 Revenue EBITDA EBITDA Margin 28 28 28 28 - 25 397 155 39% 40% 41% 41% 35% 34% -6% 0% 2pp 10 11 11 12 8 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Revenue EBITDA EBITDA Margin Revenue segments (USD mn, % YoY) FY 2023 Mobile Fixed • Amidst a challeng
Slide 33: Indosat Ooredoo Hutchison results
USD 3.3 Bn USD 231 Mn IDR 51.2 Tn IDR 3.5 Tn ® 9.6% yor ® 144.1% voy GC USD 2.8 Bn USD 1.5 Bn c+) IDR 43.7 Tn IDR 23.9 Tn 46.8 % @ 8.7% YoY @ 21.3% YoY @ 4.5 ppt YoY 14.417 PB USD 2.3 | 179,07 37.7 Mn IDR 35.6 K 070 @ 14.8% YoY © 8.6 Mn Users YoY @ 5.3% YoY ® 30.7% YoY
Slide 34: IR updates
IR updates Upcoming Conferences (tbc) MEIRA 2023 Investor Relations Awards HSBC MENAT future forum Dubai, 27-29 February EFG-Hermes 18th Annual conference Dubai, 4-7 March HSBC Global Investment Summit Hong Kong, 8-10 April Thank you for your votes! Arqaam 11th MENA Conference Dubai, 20-21 May || |
Slide 35: Q&A
Q&A | |
Slide 36: Contents
Contents 1 Strategy and vision 2 Results review 3 Financial review 4 Additional information | | 36
Slide 37: KPIs technology: Q4 2023
KPIs technology: Q4 2023 4G FDD Sites as % 4G Population 5G Population 4G Contribution in Data Volume Country Total Sites Total Data Volume GB of total towers Coverage % coverage % total traffic % Grow % Algeria 7,109 89.46% 77.00% n/a 1,252,603,122 84.53% 28.14% Iraq 7,700 97.91% 98.41% n/a 756,696
Slide 38: KPIs Commercial: Q4 2023 (12 months)
KPIs Commercial: Q4 2023 (12 months) Number of MyOoredoo Post paid as Churn Churn Data users Digital complaints Country NPS App users RMS (*) % of total Mobile Fixed (‘000) recharge per 1000 (‘000) subs subs Algeria 3% NA 34 7,750 561 96% NA 1 11% Iraq 7% NA 44 9,970 3,421 42% 56% 1 1% Kuwait 3% 2%
Slide 39: Blended ARPU
Blended ARPU Qatar (QAR)* Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 110 71.3 72.0 100 104 104 104 24.8 67.9 67.4 23.8 40.5 39.5 39.4 66.8 37.9 38.4 21.3 21.2 21.8 21.0 20.9 18.8 19.6 18.1 Kuwait (QAR) Tunisia (QAR) Algeria (QAR) Myanmar (QAR) 14.8 10.2 61.8 61.3 61.7 61.6 60.8 16.4 9.3 16
Slide 40: Opcos licence general information
Opcos licence general information Fixed Licence Mobile Licence Country Issuance date Expiry date Issuance date Expiry date Qatar 7 October 2007 6 October 2032 7 October 2007 6 October 2027 13 October 1997 Kuwait -- -- Indefinite Emiri Decree Iraq -- -- 30 August 2007 29 August 2030 Oman 6 June 2009
Slide 41: Statutory corporate income tax (CIT) rates
Statutory corporate income tax (CIT) rates Statutory Losses Carry Forward Country Comments Tax Rate Allowed Algeria 26% 4 years Iraq 15% 5 years GCC companies (including NMTC) are exempted, but are subject to 4.5% Kuwait 15% 3 years Zakat, KFAS & National Labour Support Tax on consolidated profits M
Slide 42: Thank you
THANK YOU Upgrade your world. Upgrade your portfolio. @OoredooIR • IR@ooredoo.com • www.ooredoo.com | |