Slide 1: Q1 2014 Results
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Slide 2: Disclaimer
Disclaimer • Ooredoo (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 future and, as
Slide 3: Contents
Contents • Results review • Strategy review • Operations review 3 5/1/2014 Q1 Results Presentation
Slide 4: Key 2014 Q1 highlights
Results Strategy Operations Additional Group results Review Review Review Information Key 2014 Q1 highlights A satisfactory start to 2014 in a challenging competitive environment • Strong customer growth of 6.3% yoy to 96.7 million as Ooredoo captures a growing share of our markets by offering leadi
Slide 5: Revenue and EBITDA
Results Strategy Operations Additional Group results1 Review Review Review Information Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin + 4% - 3% + 8% + 7% - 4% - 8% 8,384 3,843 7,969 8,103 3,690 3,550 7,461 3,378 48% 48% 44% 42% Q1'11 Q1'12 Q1'13 Q1'14 Q1'11 Q1'12 Q1'13 Q1'14 Prici
Slide 6: Net profit and net debt
Results Strategy Operations Additional Group results Review Review Review Information Net profit and net debt1 Net profit attributable to Ooredoo shareholders Net debt1 (QARm) and net debt / EBITDA (QARm) Net Foreign Exchange + 1% + 19% 31,341 31,614 + 5% +10% + 14% 26,282 -12% 887 25,119 811 808 71
Slide 7: Free cash flow and capital expenditure
Results Strategy Operations Additional Group results Review Review Review Information Free cash flow and capital expenditure Free cash flow 1(QARm) Capex (QARm) and capex / revenue (%) +45% - 8% 1,898 - 4% 1,946 1,739 1,665 +21% +3% - 38% 1,307 1,342 1,034 1,077 24% 16% 16% 14% Q1'11 Q1'12 Q1'13 Q1'
Slide 8: Total group debt breakdown
Results Strategy Operations Additional Group results Review Review Review Information Total group debt breakdown Total group debt breakdown Total group debt (QARm) (as of March 31, 2014) Short-term Long-term 46,868 46,107 Others 45,770 42,620 7% 2,702 8,154 Indonesia 13,068 7,051 16% 44,166 35,570 3
Slide 9: Debt Profile – Ooredoo Q.S.C. Only (US$ millions)
Group Results Debt Profile – Ooredoo Q.S.C. Only (US$ millions) 1,600 1400 Bonds Loans Sukuk 1,400 1250 1,200 1000 1000 1000 1000 1,000 750 750 800 600 600 500 500 400 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2043 Loan Type Issue Interest/ Amount Usage Rate Maturity Bon
Slide 10: Total and proportional customers
Results Strategy Operations Additional Group results Review Review Review Information Total and proportional customers Total customers Proportional customers +6% +8% +12% 96,660 90,969 84,421 +6% 75,579 +29% 66,456 62,521 +12% 48,430 43,347 Q1'11 Q1'12 Q1'13 Q1'14 Q1'11 Q1'12 Q1'13 Q1'14 Strong cust
Slide 11: 2014 Q1 performance summary
Results Strategy Operations Additional Group results Review Review Review Information 2014 Q1 performance summary 3 months ended Q1 2014 / 2014 Annual QAR Millions March 2014 Q1 2013 Guidance Consolidated revenue 8,103 -3.4% 0 to +3% EBITDA 3,378 -8.5% -3 to -1% Net profit attributable to Ooredoo 88
Slide 12: Contents
Contents • Results review • Strategy review • Operations review 12 5/1/2014 Q1 Results Presentation
Slide 13: Strategic opportunities
Results Strategy Operations Additional Review Review Review Information Strategic opportunities Bravo • Wataniya Group concludes divestment of “Push to Talk” operator “Bravo” to STC in Jan 2014 • “Push to talk” technology not considered core to Ooredoo group Myanmar • Ooredoo Myanmar continues launc
Slide 14: Partnership with Rocket Internet
Partnership with Rocket Internet Asia Internet Holding • Executing on our strategy to invest in new businesses • 50/50 JV to build online businesses in Asia • Ventures ranging from eCommerce and marketplaces, to lead generation and payments • JV covering 15 markets including Indonesia, Myanmar, Sing
Slide 15: Contents
Contents • Results review • Strategy review • Operations review 15 5/1/2014 Q1 Results Presentation
Slide 16: Qatar
Results Strategy Operations Additional Group operations Review Review Review Information Qatar QARm Revenue • Growth in revenue driven by mobile (postpaid and + 8% 1,706 4G), sale of devices, new B2B projects and 1,575 broadband business • Number of customers up 11% year on year • Still sole provide
Slide 17: Indonesia
Results Strategy Operations Additional Group operations Review Review Review Information Indonesia QARm Revenue EBITDA & Margin • 4 million net increase in number of customers vs. 1Q last year 2,175 - 18% 1,780 1,044 - 18% • Flat revenue in local currency. Increase in B2B, 851 lower prepaid revenue
Slide 18: Iraq
Results Strategy Operations Additional Group operations Review Review Review Information Iraq QARm Revenue • Customer number continues to grow by 4% yoy - 6% 1,730 • Aggressive pricing from competitor, especially in 1,618 the traditionally strong Northern region • 3G license discussions continue, no
Slide 19: Oman
Results Strategy Operations Additional Group operations Review Review Review Information Oman QARm Revenue • Market still growing, but challenging competitive + 9% 519 environment 475 • Total customers up by 9%, increases in all segments pre/post/fixed line • Revenue growth driven by mobile and fixe
Slide 20: Kuwait
Results Strategy Operations Additional Group operations Review Review Review Information Kuwait QARm Revenue EBITDA & Margin • Consumer and B2B revenue weak, organization is working towards stabilization of the revenue in 678 - 20% 786 a highly competitive market. 541 592 217 - 42% • As a result of
Slide 21: Algeria
Results Strategy Operations Additional Group operations Review Review Review Information Algeria QARm Revenue EBITDA & Margin • Very healthy revenue growth driven by increase in +19% +15% customer numbers and strong postpaid business 1,104 427 926 371 • Revenue market share increased due to higher 3
Slide 22: Tunisia
Results Strategy Operations Additional Group operations Review Review Review Information Tunisia QARm Revenue EBITDA & Margin • Slower macroeconomic environment in Tunisia -4% continues to impact the top line growth of the 613 586 -6% business 309 289 • International roaming and traffic particularly
Slide 23: Myanmar
Results Strategy Operations Additional Group operations Review Review Review Information Myanmar • Preparation for network launch continues following the official award of its licence by the Myanmar government in February 2014 • More than 800 staff hired • Sponsorship agreement deal with the Nationa
Slide 24: Contents
Contents • Results review • Strategy review • Operations review • Additional information 24 5/1/2014 Q1 Results Presentation
Slide 25: Key operations importance to Group
Results Strategy Operations Additional Additional information Review Review Review Information Key operations importance to Group Revenue (QARm) EBITDA (QARm) 8,384 8,030 8,103 7,461 3,832 3,690 3,550 3,378 Q1'11 Q1'12 Q1'13 Q1'14 Q1'11 Q1'12 Q1'13 Q1'14 Qatar 1,411 1,502 1,575 1,706 Qatar 776 798 7
Slide 26: Key operations importance to Group
Results Strategy Operations Additional Additional information Review Review Review Information Key operations importance to Group Capex Total Customers Myanmar Others Qatar Tunisia 2.0% 1.3% 5.0% Qatar Tunisia 2.4% 7.7% 3.0% Others 1.1% Algeria Iraq Algeria 10.3% 11.1% 18.0% Iraq 25.6% Kuwait 2.3% O
Slide 27: Blended ARPU development (QAR)
Results Strategy Operations Additional Additional information Review Review Review Information Blended ARPU development (QAR) Qatar Iraq Oman Maldives Palestine 70.8 45.5 45.7 44.0 37.4 61.6 35.4 34.7 34.7 56.7 65.7 65.1 64.8 40.3 41.5 41.9 33.5 56.4 56.2 54.8 64.1 63.8 32.5 148.7 50.1 140.2 142.3 1
Slide 28: Qatar
Results Strategy Operations Additional Additional information Review Review Review Information Qatar Key developments Operator importance to group • Growth in revenue driven by mobile (postpaid and Customers: 3.0%; Revenue:21.1%; EBITDA: 24.5%; Capex:5.0% 4G), sale of devices, new B2B projects and b
Slide 29: Asiacell – Iraq
Results Strategy Operations Additional Additional information Review Review Review Information Iraq Key developments Operator importance to group • Customer number continues to grow by 7% yoy Customers: 11.1%; Revenue: 20.0%; EBITDA 22.6%; Capex: 25.6% • Aggressive pricing from competitor, especiall
Slide 30: Indonesia
Results Strategy Operations Additional Additional information Review Review Review Information Indonesia Key developments Operator importance to group • 4 million net increase in number of customers vs. 1Q Customers: 61.9%; Revenue 22.0%; EBITDA: 25.2%; Capex: 29.6% last year • Flat revenue in local
Slide 31: Nawras – Oman
Results Strategy Operations Additional Additional information Review Review Review Information Oman Key developments Operator importance to group • Market still growing, but challenging competitive Customers: 2.5%; Revenue: 6.4%; EBITDA: 7.6%; Capex: 7.6% environment • Total customers up by 9%, incr
Slide 32: Wataniya – Kuwait
Results Strategy Operations Additional Additional information Review Review Review Information Kuwait Key developments Operator importance to group • Consumer and B2B revenue weak, various new Customers: 2.3%; Revenue 6.7%; EBITDA: 3.7%; Capex: 8.5% products launched. Organization is working towards
Slide 33: Nedjma Algeria
Results Strategy Operations Additional Additional information Review Review Review Information Algeria Key developments Operator importance to group • Very healthy revenue growth driven by increase in Customers: 10.3%; Revenue: 13.6%; EBITDA: 12.6%; Capex: 18.0% customer numbers and strong postpaid
Slide 34: Tunisiana
Results Strategy Operations Additional Additional information Review Review Review Information Tunisia Key developments Operator importance to group • Slower macroeconomic environment in Tunisia Customers: 7.7%; Revenue:7.2%; EBITDA: 8.6%; Capex: 2.4% continues to impact the top line growth of the b
Slide 35: Palestine Wataniya
Results Strategy Operations Additional Additional information Review Review Review Information Palestine Key developments Operator importance to group • Overall economy remains slow Customers: 0.7%; Revenue: 1.0%; EBITDA: 0.3%; Capex: 0.3% • ARPU and revenue decline seasonality-related Pop1 : 4.04M
Slide 36: Maldives Wataniya
Results Strategy Operations Additional Additional information Review Review Review Information Maldives Key developments Operator importance to group • Q1 traditionally strong quarter Customers: 0.3%; Revenue: 0.6%; EBITDA: 0.5%; Capex: 0.4% • Revenue and EBITDA growth maintained Pop : 0.336M (2013
Slide 37: Pakistan
Results Strategy Operations Additional Additional information Review Review Review Information wi-tribe Pakistan Key developments Operator importance to group • WiMAX-based service with commercial launch end of Customers: 0.2%; Revenue: N/A; EBITDA: N/A; Capex: N/A June 2009 Pop : 182.6M (2013 est.)
Slide 38: Statutory corporate tax rates
Results Strategy Operations Additional Additional information Review Review Review Information Statutory corporate tax rates Statutory Losses c/fwd Notes tax rate allowed Algeria 25% 4 years Bahrain - - Indonesia 25% 5 years Iraq 15% 5 years GCC companies (including NMTC)are exempted and are subject
Slide 39: Key operating country statistics
Results Strategy Operations Additional Additional information Review Review Review Information Key operating country statistics Algeria Indonesia Iraq Kuwait Maldives Myanmar Oman Qatar KSA Tunisia 2013 (est.) GDP real growth % 3.4 6.3 14.7 1.9 2.5 7.5 3.9 4.9 4.2 3.3 (2012) (2.6) (6.0) (10.2) (6.3)
Slide 40: 2014 1H Results – Aug 5 TBD
Website: ooredoo.com Follow us Email: IR@ooredoo.com Twitter: @OoredooIR Upcoming 2014 1H Results – Aug 5 TBD events 40 5/1/2014 Q1 Results Presentation
Slide 41: Thank-you
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