Login Get Started
HelpDesk
 Embed  Download
  of  

or
Sign in to continue reading...

Ooredoo Group 2015 - Financial Results

IB Insights
By IB Insights
8 years ago
Ooredoo Group 2015 - Financial Results

Ard, Dinar, Mal, Sukuk

Sukuk

Social Finance

Islamic Wealth Management Zero


Create FREE account or Login to add your comment
Comments (0)


Transcription

  1. Ooredoo Group Full Year 2015 Results
  2. Disclaimer  Ooredoo (parent company Ooredoo 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 such, are forwardlooking 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 | FY 2015 | Ooredoo Group Results Call
  3. Contents  Results Review  Strategy Review  Operations Review  Additional Information 3 | FY 2015 | Ooredoo Group Results Call
  4. Group Results Key Highlights Global customer base further expanded • Group customers reached 117 million in 2015, 9% YoY growth or 9.5 million net customer add over 2014 • Growth driven by strong performances in Qatar, Indonesia, Myanmar, Oman, Algeria, Maldives and Palestine Solid performance delivered • 2015 guidance targets achieved - Generated QAR 32 billion Revenue and QAR 13 billion EBITDA in 2015 • Growth continued in 2015 across key markets despite the challenges of the security situation in Iraq and FX impact 4 | FY 2015 | Ooredoo Group Results Call
  5. Group Results Key Highlights – continued Strategic investments into networks and the Ooredoo brand continued • We now have 4G in Qatar, Oman, Kuwait, Indonesia and Maldives; and advanced 3G in Iraq and Myanmar. Algeria and Tunisia are preparing for 4G and Palestine plans to offer 3G in 2016. • After the successful rebranding in Indonesia in 2015, eight Ooredoo markets are now Ooredoo branded: Qatar, Algeria, Maldives, Tunisia, Myanmar, Kuwait, Oman and Indonesia. High growth in Data and B2B continued • Data revenues demonstrated robust growth during 2015 as Ooredoo enhanced network speeds and coverage across markets; data now represents 37% of the Group revenue. • B2B revenue increased by 10% YoY in 2015, reflecting Ooredoo’s continued focus on B2B services and growth in enterprise customer base. Short & mid-term focus remains on efficiencies across markets • Achieved savings across the Group from strategic sourcing with further efforts underway • Infrastructure sharing progressing well in key markets 5 | FY 2015 | Ooredoo Group Results Call
  6. Group Results Revenue and EBITDA Revenue (QARm) 33,476 +1% -2% 33,851 33,207 EBITDA (QARm) and EBITDA Margin -3% -6% 32,161 15,567 47% 12M'12 12M'13 12M'14 12M'15 12M'12 14,640 -12% +1% 12,948 13,018 39% 40% 12M'14 12M'15 43% 12M'13 Revenue in line with guidance & EBITDA exceeded guidance with improved margin Strong revenue and EBITDA growth in local currency terms across key markets Excluding FX impact, Revenue up +4% & EBITDA up +8% Note: All Indosat results as reported adhere to IFRS which may in some instances differ from INDOGAAP; 6 | FY 2015 | Ooredoo Group Results Call
  7. Group Results Net Profit and Net Debt Net Profit Attributable to Ooredoo shareholders (QARm) Net Foreign Exchange Net Debt (QARm) and Net Debt / EBITDA Net Profit -12% +4% -17% -1% +2% -3% 28,401 28,784 29,391 28,489 1.9 2.1 2.3 2.2 12M'12 12M'13 12M'14 12M'15 3,197 3,171 2,474 2,342 (224) (208) (356) (618) 12M'12 12M'13 12M'14 12M'15 Net Profit flat YoY: impacted by Iraqi security situation and FX Excluding FX impact, Net Profit up +6% YoY Net Debt / EBITDA ratio within the long term Board guidance range of 1.5x to 2.5x Note: Net Debt = Total interest bearing loans and borrowings + contingent liabilities (letters of guarantee + letters of credit + finance lease + vendor financing) – cash (net of restricted cash and below BBB+ rating) 7 | FY 2015 | Ooredoo Group Results Call
  8. Group Results Free Cash Flow and Capital Expenditure Free Cash Flow (QARm) CAPEX (QARm) and CAPEX/ Revenue (%) +27% -10% +4% 9,298 8,762 8,391 4,951 7,316 -67 % +6% 1,658 1,764 -16% 1,477 27% 22% 12M'12 12M'13 12M'14 12M'15 12M'12 12M'13 27% 25% 12M'14 12M'15 Excluding FX impact, FCF up by +1% with increased EBITDA and CAPEX CAPEX stood at the lower end of guidance Network investments continued to maintain strong competitive position Note: Free cash flow = Net profit plus depreciation and amortization less capex; Capex excludes license fee obligations; Net profit adjusted for extraordinary items 8 | FY 2015 | Ooredoo Group Results Call
  9. Group Results Total Group Debt Breakdown Total Group Debt Breakdown (as at December 31, 2015) Total Group Debt (QARm) Short-term Long-term 45,769 39,765 8,126 Others 7% 43,185 43,101 7,241 6,714 35,944 36,387 Indonesia 15% 7,373 37,643 32,392 Qatar 78% 12M'12 12M'13 12M'14 12M'15 Stable Group debt mainly at Corporate level OpCo debt primarily in local currency Note: Includes Ooredoo International Finance Limited and Ooredoo Tamweel Ltd. 9 | FY 2015 | Ooredoo Group Results Call
  10. Group Results Debt Profile – Ooredoo Q.S.C. Level 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1600 Sukuk Bonds Loans 1250 1000 1000 1000 1000 750 650 2016 Loan Type (in USD mn) 2017 2018 2019 2020 2021 2022 2023 2024 Issue Amount 2025 Interest/ Profit Rate 500 500 2028 2043 Amount Usage Rate* Maturity QAR3bn RCF 824 0 QAR Money Market 31 Jan 2017 Fixed Rate Bonds due 2016 1,000 3.375% 14 Oct 2016 LSE USD1bn RCF 1,000 1000 Libor+ 115bps 31 Mar 2017 Fixed Rate Bonds due 2019 600 7.875% 10 Jun 2019 LSE USD1bn RCF 1,000 1,000 Libor+100bps 17 May 2019 Fixed Rate Bonds due 2021 1,000 4.75% 16 Feb 2021 LSE USD 500mn RCF 500 500 Libor + 100bps 06 May 2020 Fixed Rate Bonds due 2023 1,000 3.25% 21 Feb 2023 ISE USD150mn Term Loan 150 150 Libor+90bps 31 Aug 2020 Fixed Rate Bonds due 2025 750 5.00% 19 Oct 2025 LSE Fixed Rate Bonds due 2028 500 3.875% 31 Jan 2028 ISE Fixed Rate Bonds due 2043 500 4.50% 31 Jan 2043 ISE 1,250 3.039% 3 Dec 2018 ISE Bonds/Sukuk (in USD mn) Sukuk due 2018 Total Loans 3,474 2,650 Total Bonds and Sukuk Total outstanding debt as at 31 December 2015 at Ooredoo Q.S.C. level Maturity Listed in 6,600 USD 9,250 million * Fully drawn basis Long term debt profile is well balanced; proactively addressing upcoming maturities 10 | FY 2015 | Ooredoo Group Results Call
  11. Group Results Total Customers Ooredoo Group Customers (000) +9% +12% +4% 92,685 12M'12 116,751 107,254 96,184 12M'13 12M'14 12M'15 Strong organic customer growth driven by Indonesia, Myanmar, Algeria, Qatar and Oman Group added 9.5 million net new customers in 2015 11 | FY 2015 | Ooredoo Group Results Call
  12. Group Results 2015 Performance & 2016 Guidance Group Financials (QAR bn) 2015 Actual % Change 2015 / 2014 2015 Full Year Guidance over 2014 2016 Full Year Guidance over 2015 Revenue 32.16 -3% 0% to -3% -1% to +2% EBITDA 13.02 +1% -1% to -4% -3% to 0% CAPEX 8.76 +4% 8.5 bn to 9.5 bn 6.5 bn to 7.5 bn 2015 Guidance delivered – BoD recommending QAR 3 cash dividend per share 2016 Guidance drivers: - growth continues in local currency terms across markets - QAR figures impacted by FX - disciplined CAPEX 12 | FY 2015 | Ooredoo Group Results Call
  13. Contents  Results Review  Strategy Review  Operations Review  Additional Information 13 | FY 2015 | Ooredoo Group Results Call
  14. Key 2015 Achievements Brand • 8 OpCos rebranded: Qatar, Algeria, Maldives, Tunisia, Myanmar, Kuwait, Oman, Indonesia • Brand strength - significant uplifts in awareness and preference across our footprint Data & ICT • Data revenues growing at double digit rates YoY now represents 37% of total group revenues (up from 25% in 2014) • B2B revenues growing at double digits rates YoY Management • New Group management – Sheikh Saud bin Nasser Al Thani and Waleed al Sayed – with a highly successful track record in Qatar and abroad • Dr. Nasser Marafih appointed as Board member • Significant savings across the Group from Strategic Sourcing • Infrastructure sharing progressing well in Iraq, Indonesia, Oman and Tunisia Efficiency Networks 14 | FY 2015 | • 4G+ (LTE-Advanced) in Qatar and Kuwait • 4G launched in Oman, Indonesia and Maldives • 4G expected to be launched in Tunisia and Algeria Ooredoo Group Results Call
  15. In 2015 , we continued to optimize our footprint Tunisia Palestine Algeria Iraq Kuwait Qatar Myanmar Laos Oman Maldives • Divested non-core stake in Wi-tribe Philippines • Portfolio optimization • Focus on core business 15 | FY 2015 | Ooredoo Group Results Call Singapore Indonesia
  16. Our evolving strategy provides the right ambition for our OpCos while allowing for localization Market Leader Results Performance Culture Growth > Market Value Creation (Free Cash Flow + ROCE) 16 | FY 2015 | Ooredoo Group Results Call Efficient Models ROCE > WACC
  17. Contents  Results Review  Strategy Review  Operations Review  Additional Information 17 | FY 2015 | Ooredoo Group Results Call
  18. Group Operations Qatar QARm Revenue +10% • Double digit growth in Revenue, EBITDA and Net Profit driven by data 7,897 7,148 • EBITDA margin improved to 51% • Reached 3.5 million customers, +11% growth YoY • Maintained market leadership 12M'14 12M'15 EBITDA & Margin +16% 3,995 • Launch of “Supernet”, world class speed on fiber and mobile network, and further expansion of Fiber to the Home providing higher speed and wider coverage in fixed and mobile 3,448 • Ooredoo Onboard Wi-Fi service with Qatar Airways launched 48% 12M'14 51% 12M'15  1 US$ = 3.6415 Qatari Riyal (QAR)1 Note: (1) Constant pegged currency 18 | FY 2015 | Ooredoo Group Results Call • Launched new Ooredoo TV service in February 2016, first 4K TV service in the region
  19. Group Operations Indonesia QARm Revenue EBITDA & Margin • Indosat rebranded to “Indosat Ooredoo”, now the eighth Ooredoo branded operation • Double digit increase in Revenue and EBITDA in local currency terms with improved EBITDA margin amid competitive environment • Depreciation of the Indonesian Rupiah (11% YoY) negatively impacted figures reported in QAR • Growing faster than industry and increasing revenue and customer market share - reached almost 70 million customers, up 10% YoY • Completed network modernization, extended 3G coverage to priority areas and launched data commercialization of 4G - on track to become one of Indonesia’s top digital operators -2% +1% 7,274 7,395 3,303 3,279 45% 44% 12M'14 12M'14 12M'15 IDRbn1 Revenue EBITDA & Margin +11% +14% 26,768 24,085 12M'15 12,150 10,664 12M'14 12M'15 44% 45% 12M'14 12M'15  1 US$ = 13,393 Indonesia Rupiah (IDR)2 Note: (1) As per IFRS; (2)Twelve month average rate January – December 2015 19 | FY 2015 | Ooredoo Group Results Call
  20. Group Operations Iraq QARm Revenue 6 ,298 -22% • Overall economic situation remains challenging • Security situation slightly improving in Q4 compared to Q3 but still impacting business - parts of Tikrit governorate returned to operation • Maintaining position as market leader of revenue share and data • Aggressive pricing competition characterizing the first half 2015 alleviated in the second half • Customer numbers increased by 2% sequentially in Q4’15 • Focus on improving operational efficiency and strict cost controls • 20% VAT on telecom services implemented in August 2015 by all operators • 4th license: Government extended the deadline for the expression of interest to December 10, 2015 - no new information as yet 4,884 12M'14 12M'15 EBITDA & Margin 2,939 -27% 2,136 20 | FY 2015 | 47% 44% 12M'14 12M'15 Ooredoo Group Results Call
  21. Group Operations Oman QARm Revenue +11% • Very strong quarter for revenue in Q4: Double digit growth in Revenue, EBITDA and Net Profit driven by mobile and fixed data • EBITDA margin improved to 53% • Almost half of the revenue generated by data • Reached 2.8 million customers, up 7% YoY • +23% YoY growth in fixed line customers • Expansion of 4G coverage and completion of fiber backbone providing a superior customer experience • Integrated into the government’s broadband strategy leveraging FTTH services 2,475 2,231 12M'14 12M'15 EBITDA & Margin +17% 1,302 1,115 50% 53% 12M'14 12M'15  1 US$ = 0.38463 Omani Rial (OMR)1 Note: (1) Constant pegged currency 21 | FY 2015 | Ooredoo Group Results Call
  22. Group Operations Kuwait QARm Revenue EBITDA & Margin +6% +31% 2,275 2,150 • Aggressive competition in the market with handset subsidies • Recovery continues resulting in Revenue, EBITDA and Net Profit growth driven by strong data and B2B performance 620 • EBITDA margin improved to 27% 473 22% 12M'14 12M'15 12M'14 27% 12M'15 KWDm Revenue EBITDA & Margin +12% +39% 37 12M'14 12M'15 27% 12M'14 12M'15 Note: (1) Twelve month average rate January – December 2015 FY 2015 | 51 22%  1 US$ = 0.3010 Kuwait Dinar1 | • Customer numbers stood at 2.3 million (post-paid growing and pre-paid down after clean up of the base) Number of wireless broadband customers more than doubled YoY to nearly 300K 188 168 22 • Proactive customer management strategy Ooredoo Group Results Call • Became the first operator to launch 4G+ during 2015 • Developed the largest retail network in the country • Winner of the Informatics Innovation and Creativity Award by the Arab Media Forum
  23. Group Operations Algeria QARm Revenue EBITDA & Margin -13% 4,623 -0.5% 4,023 1,481 • Strong revenue and EBITDA growth in local currency terms thanks to 3G leadership and solid data revenue uptake 1,474 37% 32% • Depreciation of the Algerian Dinar (19% YoY) negatively impacted Revenue and EBITDA reported in QAR • EBITDA margin improved to 37% 12M'14 12M'14 12M'15 12M'15 • Customer numbers up 7% YoY reached more than 13 million DZDm Revenue EBITDA & Margin +26% +8% 110,674 102,187 40,529 32,282 32% 12M'14 12M'15 12M'14  1 US$ = 100.3 Algerian Dinar (DZD)¹ Note: (1) Twelve month average rate January – December 2015 23 | FY 2015 | • 3G network coverage further expended: 4 new States (Wilaya) added, now covering 36 in total Ooredoo Group Results Call 37% • 4G tender planned for April with commercial launch expected in the second half of 2016 12M'15 • Ooredoo Algeria now official sponsor of Real Madrid FC, benefitting from use of the logo and football content
  24. Group Operations Tunisia QARm Revenue • Slow tourism after security incidents earlier in the year with challenging economic conditions EBITDA & Margin • Customer base steady at 7.5 million -21% 2,288 -30% 1,072 1,803 746 47% 12M'14 12M'15 12M'14 • Strong customer growth in mobile post-paid / fixed line and slight decline in mobile pre-paid in a highly competitive market 41% 12M'15 • Depreciation of the Tunisian Dinar (15% YoY) negatively impacted Revenue and EBITDA reported in QAR TNDm Revenue EBITDA & Margin -9% -20% 1,063 970 12M'14 12M'15 498 41% 12M'14 12M'15 Note: (1) Twelve month average rate January – December 2015 24 | FY 2015 | 400 47%  1 US$ = 1.962 Tunisian Dinar (TND)1 Ooredoo Group Results Call • Data growth continues strong trend as Ooredoo takes further share in small and large screen segments • Expanded 3G coverage and became the first operator to test 4G in the country; expecting results of 4G tender in March 2016 • In December 2015, Youssef El Masri, a 20 year veteran of the Ooredoo Group, appointed as new CEO
  25. Group Operations Myanmar QARm • Number of customers more than doubled YoY in 2015 and reached 5.8 Million with record performance in Q4 • Increased customer market share in the second half of 2015 • 3G network coverage reached more than threequarters of the population offering high quality data and voice services • Became the first official telecom partner for Apple in the country • In February 2016, successfully secured USD 300 million long term financing from the Asian Development Bank and International Finance Corporation for network expansion • Myanmar peacefully completed general elections in November 2015 • Government started 4th license process Revenue 1,065 189 12M'14 12M'15 EBITDA (76) (357) 12M'14 25 | FY 2015 | 12M'15 Ooredoo Group Results Call
  26. Thank you for your support – Ooredoo won double awards Qatar Stock Exchange IR Excellence Awards – February 2016 26 | FY 2015 | Ooredoo Group Results Call
  27. Save the date : Ooredoo Capital Markets Day Monday, May 23, 2016 in Doha, Qatar Details tbc registration via Ooredoo IR team salsayed@ooredoo.com 27 | Q1 2015 | Ooredoo Group Results Call
  28. Q &A Follow us Upcoming Events Website: ooredoo.com Email: IR@ooredoo.com Twitter: @OoredooIR 2016 Q1 Results – April 27, 2016
  29. Contents  Results Review  Strategy Review  Operations Review  Additional Information 29 | FY 2015 | Ooredoo Group Results Call
  30. Additional Information Group Revenue and EBITDA Breakdown Revenue (QARm) EBITDA (QARm) 15,567 33,475 | 33,207 14,640 32,161 12,948 13,018 12M'12 12M'13 12M'14 12M'15 12M'12 12M'13 12M'14 12M'15 Qatar 6,220 6,590 7,148 7,897 Qatar 3,249 3,273 3,448 3,996 Indonesia 8,804 8,371 7,395 7,274 Indonesia 4,420 3,862 3,279 3,303 Iraq 6,878 7,070 6,298 4,885 Iraq 3,689 3,628 2,939 2,136 Kuwait 2,880 2,500 2,150 2,275 Kuwait 1,101 667 473 620 Algeria 3,479 3,884 4,623 4,023 Oman 902 933 1,115 1,302 Tunisia 2,633 2,504 2,288 1,803 Tunisia 1,350 1,310 1,072 746 Oman 1,907 1,990 2,231 2,475 Algeria 1,374 1,583 1,481 1,474 189 1,065 Myanmar -145 -357 -76 Myanmar 30 33,851 FY 2015 | Ooredoo Group Results Call
  31. Additional Information Group CAPEX and Customers Breakdown CAPEX Breakdown (%) Tunisia 4.0% Others 1.5% Myanmar 15.2% Customer Breakdown (%) Tunisia Myanmar 6.4% 5% Qatar 11.2% Iraq 16.2% Others 1.2% Qatar 3.0% Iraq 9.2% Algeria 11.2% Kuwait 1.9% Algeria 10.2% Oman 2.4% Kuwait 4.2% Oman 7.3% Indonesia 30.2% 2015 CAPEX = QAR 8,762 mn 31 | FY 2015 | Ooredoo Group Results Call Indonesia 59.7% 2015 Total Customers = 117 million
  32. Additional Information Blended ARPU Qatar (QAR) Iraq (QAR) 129.9 128.1 127.3 127.6 124.3 118.5 43.5 40.0 34.4 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 8.6 6.8 6.8 6.7 38.4 66.3 65.6 65.1 67.4 68.3 66.8 36.6 63.9 64.9 66.2 Maldives (QAR) 67.0 43.1 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Kuwait (QAR) 67.4 8.0 35.4 Oman (QAR) Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Indonesia (QAR) Results Review Overview 46.0 46.5 47.9 49.8 50.3 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Tunisia (QAR) Algeria (QAR) Strategy Review Operations Review Palestine (QAR) 32.3 31.7 30.5 32.7 34.5 29.2 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Myanmar (QAR) 23.8 71.7 20.7 7.3 18.2 19.0 32.3 19.4 33.8 29.4 26.1 14.7 24.5 25.1 27.2 26.9 23.6 22.9 23.6 17.1 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Indonesia (IDR) 27,609 26,811 23,863 24,943 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Kuwait (KWD) Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Tunisia (TND) Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Algeria (DZD) 26,557 27,644 5.3 5.2 5.3 5.6 5.7 6.0 11.4 712.8 684.9 710.2 673.7 667.1 661.2 10.4 9.6 10.2 10.5 8.1 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 32 | FY 2015 | Ooredoo Group Results Call Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Additional Information
  33. Additional Information Statutory Corporate Tax Rates 33 | Statutory Tax Rate Losses C/Fwd Allowed Algeria 23% 4 years Indonesia 25% 5 years Iraq 15% 5 years Kuwait 15% 3 years Maldives 15% 5 years Myanmar 25% 3 years Oman 12% 5 years Pakistan 33% 6 years Palestine 20% 5 years Qatar 10% 3 years Singapore 17% Indefinitely Tunisia 35% 5 years FY 2015 | Ooredoo Group Results Call Overview Results Review Strategy Review Operations Review Additional Information Notes GCC companies (including NMTC)are exempted and are subjected to 4.5% Zakat, KFAS & Labour Support Tax on consolidated profits Qatari/GCC owned companies and companies listed on Qatar Exchange are exempt 1) 30% is the standard tax rate; 2) 35% tax rate applies to oil companies, banks, financial institutions including insurance companies and telecommunication companies
  34. Thank you Follow us Upcoming Events Website : ooredoo.com Email: IR@ooredoo.com Twitter: @OoredooIR 2016 Q1 Results – April 27, 2016