Ooredoo Group Ooredoo Group 9M 2019 Results October 2019 - PowerPoint PPT Presentation

Ooredoo Group Ooredoo Group 9M 2019 Results October 2019

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, as such, are forward-looking statements Ooredoo Group management wishes to further caution the reader that forward-looking statements are not historical facts • and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to: Our ability to manage domestic and international growth and maintain a high level of customer service • Future sales growth • Market acceptance of our product and service offerings • Our ability to secure adequate financing or equity capital to fund our operations • Network expansion • Performance of our network and equipment • Our ability to enter into strategic alliances or transactions • Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment • Regulatory approval processes • Changes in technology • Price competition • Other market conditions and associated risks • This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any • person to underwrite, subscribe for or otherwise acquire or dispose of securities in any company within the Ooredoo Group The Ooredoo Group undertakes no obligation to update publicly or otherwise any forward-looking statements, whether as a • result of future events, new information, or otherwise 2

Contents Contents 1 Results review 2 Operations review 3 Additional information 3

Group Gr oup Results Results Overview Re Resul sults ts re review Operations review Additional information Key Key Hi Highl ghlights ights Solid financial performance in challenging conditions, during the first 9M of the year Group Revenue QAR 22.0 EBITDA up by 4% yoy (pre Group Net Profit Network expansion Ooredoo Group leads in billion, a decline of 3% yoy FX +5%) to QAR 9.7 billion, attributable to Ooredoo continued to be a key 5G adoption with live (pre FX -1%), impacted by: EBITDA margin of 44%, shareholders up 16% yoy driver of growth commercial 5G networks driven by: to QAR 1.3 billion in Qatar and Kuwait and • fewer handset sales • Indosat Ooredoo, successful 5G testing in • macroeconomic & • positive IFRS 16 impact • more favorable FX Ooredoo Tunisia and Oman currency weakness in • group-wide efficiency environment Ooredoo Myanmar some of our markets program • offset by a negative implemented further IRFS16 impact on NP 4G rollout Strong Q3 2019 with some • in Algeria 4G network Revenue growth (+1% yoy) has the highest contributing to a strong population coverage in EBITDA improvement (+6% the country yoy) 4

Group Results Gr oup Results Overview Re Resul sults ts re review Operations review Additional information Revenue and Revenue and EBITDA EBITDA Revenue (QARm) Revenue (QARm) EBITDA (QARm) and EBITDA (QARm) and EBITDA Margi EBITDA Margin -3% +4% 22,531 21,965 9,664 9,337 +1% +6% 7,457 7,409 3,325 3,125 44% 41% 45% 42% Q3-18 Q3-19 9M-18 9M-19 9M-18 9M-19 Q3-18 Q3-19 • Positive overall growth in Q3 achieved, 9M Revenue growth in L/C terms in Tunisia, Indonesia and Maldives offset by lower handset sales in Qatar and Kuwait, weaker performances in Algeria and Myanmar • EBITDA growth in most markets, due to a favorable IFRS 16 impact, product mix and cost saving initiatives • excluding FX impact : Revenue -1% and EBITDA +5% yoy 5

Group Results Gr oup Results Overview Re Resul sults ts re review Operations review Additional information Net Profit Net Pr ofit Net Pr Net Profit ofit Attri Attributab butable le to to Oo Oore redoo doo shar sharehold eholder ers (QARm) (QARm) +16% +5% 1,507 668 1,270 1,265 1,092 Net Profit 475 Net Profit 424 403 F/X Impact F/X Impact Pre F/X Net Pre F/X Net Profit Profit (51) (5) (415) (265) Q3-18 Q3-19 9M-18 9M-19 • Net Profit increased by 16% yoy due to a more favorable FX environment offset by negative IFRS16 impact on NP • Pre FX Net Profit in 2018 included one off benefits from share of associates and one off ancillary services. Excluding these one offs 2019 pre FX Net profit would be around 50% higher than 2018 6

Gr Group Results oup Results Overview Resul Re sults ts re review Operations review Additional information Fr Free Cash ee Cash Flo Flow w and and Cap Capital ital Exp Expenditur enditure CAPEX CAPEX (QARm) & (QARm) & CAPEX/ CAPEX/ Reven Revenue ue (%) (%) Free Free Cas Cash Fl h Flow ow (QARm) (QARm) +18% -14% 4,453 +19% 3,443 3,824 -12% 1,323 1,315 2,906 1,111 1,157 16% 13% 18% 15% Q3-18 Q3-19 9M-18 9M-19 9M-18 9M-19 Q3-18 Q3-19 • Capex investment on track and inline annual guidance, further network investment mainly in Indonesia in order to improve 4G coverage Note: Free Cash Flow = (Net Profit+ Depreciation+ Amortization+ ROU IFRS16 amortization + interest - Capex- lease payments under IFRS-16). Capex includes investment in tangible and intangible assets (excluding spectrum, license plus lea sed assets capitalized under IFRS-16 ) 7

Group Results Gr oup Results Overview Resul Re sults ts re review Operations review Additional information Total cus Total customers tomers Total Total Custo Customer mers s (millio (millions) ns) -20% -3% 119.6 115.9 9M-18 9M-19 • Customer number slightly reduced, lower customer base has higher quality customers with lower likelihood of churn • Indosat Ooredoo continued sequential positive trend by adding 2m customers in Q3 8

Group Results Gr oup Results Overview Re Resul sults ts re review Operations review Additional information Net deb Net debt t Ne Net D t Debt ebt (QARm (QARm) and ) and Ne Net D t Debt ebt / / EBIT EBITDA +18% 26,905 -12% 22,722 Pre IFRS 16: • Net Debt QAR 21,602m (-5%) 2.1 • Net Debt/EBITDA ratio: 1.8x 1.8 9M-18 9M-19 • Positive trend of Group Net Debt reduction (Pre IFRS-16) continued; Net Debt to EBITDA ratio 1.8x (pre IFRS 16) • Lower end of the board guidance between 1.5 and 2.5x (pre IFRS 16) • Bank covenant threshold for Net Debt/EBITDA increased to 4.5x from 4.0x post IFRS 16 impact at Ooredoo QPSC 9

Gr Group Results oup Results Overview Resul Re sults ts re review Operations review Additional information 2019 201 9 Q3 Q3 performance performance summary summary % Change 9M 2019 Full Year 9M 2019 Group Financials 2019 / 2018 Guidance over 2018 (QAR bn) Actual excl. IFRS 16 impact Excl. IFRS 16 impact Revenue 22.0 -3% -3% to 0% EBITDA 8.9* -5%* -7% to -4% CAPEX 3.4 18% 5.5bn to 6.5bn • Strong Q3 performance brings revenue back inline with guidance for 2019 • Reported EBITDA incl. IFRS16 impact was up by 4% • EBITDA in 2018 has been positively impacted by one off benefits from share of associates, excluding this one off EBITDA margin increased by 1% • CAPEX higher yoy mainly due to Indosat Ooredoo and Asiacell network investments *EBITDA incl. IFRS 16 impact stood at QAR 9.7b (+4%) yoy 10

Contents Contents 1 Results review 2 Operations review 3 Additional information 11

Qatar Qatar Overview Re Resul sults ts re review Operati ration ons s re review Additi tion onal al informati formation on QARm QARm Revenue EBITDA EBITDA Margin Revenue slightly down predominately due to less devices sale • Healthy EBITDA margin of 56%, supported by digital initiatives and cost • saving activities 57% 57% 56% 55% Pre IFRS 16 EBITDA QAR 2,986m, EBITDA margin of 55% 53% • 52% 51% Customer number stood at 3.2million, down 0.5% yoy • 5,822 1,925 1,920 5,420 Ooredoo was National Partner of IAAF World Athletics Championships • 1,834 1,826 1,760 Ooredoo ONE ‘All -In-One' Home Service Launched • Qatar’s leading network received four awards from Ookla for best mobile • network, fastest mobile network, best mobile coverage and fastest ISP First telecom operator globally to launch 3D virtual store providing complete • digital user experience Ooredoo Fiber rollout program's success continues and now has 433k homes • connected across the country 2,975 3,041 998 1,012 1,037 1,039 965 9M-18 9M-19 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 • 1 USD = 3.6415 Qatari Riyal (QAR) 12