Full Year 2016 Results - Ooredoo

Ooredoo Group Full Year 2016 Results 1

Ooredoo GroupFull Year 2016 Results

23 Feb 2017


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 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.

Disclaimer


1. Results & Strategy Review

2. Operations Review

3. Additional Information

Contents


Solid top and bottom line performance delivered in 2016

2016 Revenue guidance target achieved – QAR 32 billion Revenue, growth in local currency terms across all markets except Iraq

2016 EBITDA guidance exceeded - QAR 13 billion EBITDA, increased by 3%, EBITDA margin further improved to 41%

Net Profit improved by 4%, driven by strong contributions from Qatar, Oman, Indonesia, Maldives and increased cost efficiencies at

Ooredoo Group headquarters

Global customer base further expanded

Customer base increased by 19% to reach 138 million driven by strong growth across the board

Data leader leadership further enhanced

First telecom provider to launch 4G services in Qatar, Maldives, Myanmar and Tunisia

4G roll-out started in Algeria

4G networks are now available in 8 of Ooredoo’s 10 markets

Data revenue increased to 40% of Group revenue, QAR 13 billion at FY 2016

Group ResultsKey Highlights

Results

Review

Operations

Review

Additional

InformationOverview


33 851 33 207

32 161 32 503

12M'13 12M'14 12M'15 12M'16

14 640

12 948 13 018 13 379

43%39% 40% 41%

12M'13 12M'14 12M'15 12M'16

Note: All Indosat results as reported adhere to IFRS which may in some instances differ from INDOGAAP;

Revenue (QARm) EBITDA (QARm) and EBITDA Margin

-2%-3% +1%

+1% +3%-12%

Group ResultsRevenue and EBITDA

Growth in Revenue in line with guidance & EBITDA growth exceeded guidance

Cost efficiency programs resulted in higher EBITDA margin

Excluding FX impact, Revenue up +2% & EBITDA up +4%

Results

Review

Operations

Review

Additional

InformationOverview


28 784 29 391 28 489

27 715

2,12,3 2,2

2,0

12M'13 12M'14 12M'15 12M'16-618-208 -356 -198

3 197

2 342 2 474 2 391

12M'13 12M'14 12M'15 12M'16

2,1182,134 2,193

2,579

-1%-17%+4%

-3%-3%+2%

Net Foreign Exchange

Group ResultsNet Profit and Net Debt

Net Profit Attributable to Ooredoo

shareholders (QARm)

Net Debt (QARm) and Net Debt /

EBITDA

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)

Net Profit up +4% YoY: Qatar, Oman, Indonesia, Maldives and increased cost efficiencies at Ooredoo Group

Net Debt / EBITDA ratio improved to 2.0x - middle of the long term Board guidance range of 1.5x to 2.5x

Results

Review

Operations

Review

Additional

InformationOverview


9 298

8 391 8 762

5 982

27%25%

27%

18%

12M'13 12M'14 12M'15 12M'16

1 658 1 764 1 477

5 129

12M'13 12M'14 12M'15 12M'16

+6%-16%

+247%

-32%

+4%-10%

Group ResultsFree Cash Flow and Capital Expenditure

Free Cash Flow (QARm) CAPEX (QARm) & CAPEX/ Revenue (%)

Note: Free cash flow = Net profit plus depreciation and amortization less capex; Capex excludes license fee obligations; Net profit adjusted for extraordinary items

Capex below 2016 guidance due to sourcing cost savings

Significant Capex reduction resulted in additional cash headroom

Cash was primarily used for debt reduction and new 4G spectrum/ licenses

Results

Review

Operations

Review

Additional

InformationOverview


Total Group Debt (QARm)Total Group Debt Breakdown (as at

December 31, 2016)

37 643 35 944 36 386 37 739

8 1267 241 6 714 3 361

12M'13 12M'14 12M'15 12M'16

Short Term

Long Term

41,10043,185

45,769

43,10141,778

Qatar78%

Indonesia13%

Others9%

Group ResultsTotal Group Debt Breakdown

Further reduction of total Group debt and refinancing risk OpCo debt primarily in local currency

Note: Includes Ooredoo International Finance Limited and Ooredoo Tamweel Ltd.

Results

Review

Operations

Review

Additional

InformationOverview


Group ResultsDebt Profile – Ooredoo Q.S.C. level

Long term debt profile is well balanced, no upcoming debt maturities in 2017

* Fully drawn basis

1250

1600

650

1000 1000 1000

750

500 500 500

0

500

1 000

1 500

2 000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2043

Bonds SukukLoans

Loan Type (in USD mn) Amount Usage Rate* Maturity

QAR3bn RCF 824 0QAR Money

Market31 Jan 2018

USD1bn RCF 1,000 1,000 Libor + 100bps 17 May 2019

USD 500mn RCF 500 500 Libor + 88bps 06 May 2020

USD150mn Term Loan 150 150 Libor + 90bps 31 Aug 2020

USD1bn RCF 1,000 1000 Libor+ 140bps 07 Jun 2022

Bonds/Sukuk (in USD mn)Issue

Amount

Interest/

Profit

Rate

Maturity Listed in

Fixed Rate Bonds due 2019 600 7.875% 10 Jun 2019 LSE

Fixed Rate Bonds due 2021 1,000 4.75% 16 Feb 2021 LSE

Fixed Rate Bonds due 2023 1,000 3.25% 21 Feb 2023 ISE

Fixed Rate Bonds due 2025 750 5.00% 19 Oct 2025 LSE

Fixed Rate Bonds due 2026 500 3.75% 22 Jun 2026 ISE

Fixed Rate Bonds due 2028 500 3.875% 31 Jan 2028 ISE

Fixed Rate Bonds due 2043 500 4.50% 31 Jan 2043 ISE

Sukuk due 2018 1,250 3.039% 03 Dec 2018 ISE

Total Loans 3,474 m 2,650 m Total Bonds and Sukuk 6,100 m

Total outstanding debt as at 31 December 2016 at Ooredoo Q.S.C. level USD 8,750 million


Group ResultsTotal Customers

Strong organic customer growth driven by Indonesia, Myanmar, Oman, Iraq, Tunisia, Kuwait, Algeria, Maldives and Palestine

Group added 22 million net new customers in 2016

Total Group Customers (000)

96 184

107 254

116 751

138 422

12M'13 12M'14 12M'15 12M'16

+12%

+9%

+19%

Results

Review

Operations

Review

Additional

InformationOverview


Revenue 32.50 1%

EBITDA 13.38 3%

CAPEX 5.98 -32%

% Change

2016 / 2015

2016

Actual

Group Financials

(QAR bn)

2016 Full Year

Guidance over

2015

-1% to +2%

-3% to 0%

6.5 bn to 7.5 bn

2016 Revenue Guidance delivered, EBITDA Guidance exceeded – BoD recommending QAR 3.5cash dividend per share

2017 Guidance drivers:

- growth continues in local currency terms across markets

- QAR figures impacted by FX

- disciplined CAPEX

-1% to +2%

0% to +3%

5.5 bn to 6.5 bn

2017 Full Year

Guidance over

2016

Group Results2016 Performance & 2017 Guidance

Results

Review

Operations

Review

Additional

InformationOverview


Group ResultsLEAD Strategy Progress

Results

Review

Operations

Review

Additional

InformationOverview


Data Monetization Best Network

Brand Value Efficiencies

Continued strong data growth

from consumer and enterprise

customers

Data revenues increased to

40% of Group revenues as of

FY 2016 (FY 2015: 37%).

4G+ (LTE-Advanced) in Qatar,

Oman and Kuwait; 4G launched in

Indonesia, Maldives, Tunisia,

Algeria and Myanmar

4G networks now available in 8 of

Ooredoo’s 10 markets

Ooredoo Qatar in top 5 globally for

fiber penetration

Achieved significant

savings across the Group

through strategic sourcing

and infrastructure sharing

EBITDA % improved 1ppt

CapEx/Rev improved 9ppts

Brand now launched in 8

out of 10 markets

Top 10 MENA brand

3rd Telco brand in the

region

Collecting brand license

fees from OpCos

$1B

$2.1B

2014 2016

> 2x

Group ResultsStrategic Priorities Progress

Results

Review

Operations

Review

Additional

InformationOverview


Contents

1. Results Review




QARm

Positive results in Revenue, EBITDA and Net Profit driven by

data experience leadership

Stable EBITDA margin

Customer number sustained at 3.5 million

Maintained market leadership

Upgrading 4G+ services with speed up to 325 Mbps, launched

1Gbps fibre plan

Testing 10Gbps fibre services, 5G mobile trials in the region and

commercial trials of Voice over LTE services.

First linear 4K TV channel on Ooredoo TV launched, 75,000

customers on Ooredoo TV

Qatar fibre rollout : more than 427K homes passed with more

than 305K homes connected across Qatar

Revenue

EBITDA & Margin

1 US$ = 3.6415 Qatari Riyal (QAR)1

3 9954 050

51% 51%

12M'15 12M'16

7 897 8 007

12M'15 12M'16

Group OperationsQatar

Qatar

Note: (1) Constant pegged currency

Results

Review

Operations

Review

Additional

InformationOverview

+1%

+1%


Group OperationsIndonesia

QARm

1 US$ = 13,303 Indonesia Rupiah (IDR)2

3 303 3 724

45% 47%

12M'15 12M'16

7 2747 994

12M'15 12M'16

Revenue EBITDA & Margin

+10%

12 15013 593

12M'15 12M'16

26 76829 185

12M'15 12M'16

Revenue EBITDA & MarginIDRbn1

Double digit increase in Revenue and EBITDA terms with

improved EBITDA margin supported by strong growth in cellular

business

Reached more than 85 million customers, up 23% YoY

Positive bottom line continued due to further improvement in

operational processes, revenue growth, stable currency

movement and lower foreign currency denominated debt.

Data revenue growth contributing more than 40% of cellular

revenue.

4G coverage has reached 112 cities in Indonesia and counting.

Indonesia

Note: (1) As per IFRS; (2)Twelve month average rate January – December 2016

Results

Review

Operations

Review

Additional

InformationOverview

+13%

+12%

+9%


Group OperationsIraq

QARm

Revenue

EBITDA & Margin

2 136 1 923

44% 46%

12M'15 12M'16

4 884

4 217

12M'15 12M'16

Slight improvement in the overall Iraqi situation, but security and

economic environment remains challenging. Asiacell started to

reactivate network in parts of Mosul

Maintaining position as market leader of revenue share and

data

Customer numbers increased by 11% to 12 million due

successful promotions and reconnect in parts of Mosul

Aggressive pricing competition in the market towards the end of

the year

Focus on improving operational efficiency and strict cost

controls softened EBITDA impact

Asiacell won an international award at the “Telecom Review

Summit 2016” in Dubai for its exceptional CSR program

Iraq

Results

Review

Operations

Review

Additional

InformationOverview

-14%

-10%


Group OperationsOman

QARm

1 US$ = 0.3846 Omani Rial (OMR)1

Healthy growth in Revenue continued in Q4 driven by increases

in both mobile and fixed data revenue.

Higher revenues and cost optimization program supported

growth in EBITDA

Further network roll out, more than half of the Omani population

now covered by 4G

Reached almost 3 million customers, growth by 6%

(+24% YoY growth in fixed line customers)

Blended ARPU slightly lower due to lower voice usage

More than half of the revenue generated by data

Oman

1 3021 404

53% 53%

12M'15 12M'16

2 475 2 639

12M'15 12M'16

Revenue

EBITDA & Margin

Note: (1) Constant pegged currency

Results

Review

Operations

Review

Additional

InformationOverview

+7%

+8%


Group OperationsKuwait

QARm

1 US$ = 0.3023 Kuwait Dinar1

Ooredoo Kuwait’s Revenue increased by 5% driven by post

paid segment and Fast telco consolidation

Highly aggressive market environment caused pressure on

EBITDA, EBITDA margins improved sequentially though

Customer numbers stood at 2.3 million up by 3% YoY, new

proactive customer management strategy launched

Cost saving initiatives in place

Launched “Nukhba” program for its elite customers

Ooredoo Kuwait won three creativity award trophies at the Arab

Media Forum

Kuwait


Revenue EBITDA & MarginKWDm

51 51

27% 26%

12M'15 12M'16

188 198

12M'15 12M'16

Note: (1) Twelve month average rate January – December 2016

620 614

27% 26%

12M'15 12M'16

2 275 2 382

12M'15 12M'16

Results

Review

Operations

Review

Additional

InformationOverview

+5%

-1%+5%

-1%


Group OperationsAlgeria

QARm

1 US$ = 109.4 Algerian Dinar (DZD)¹

4 023 3 732

12M'15 12M'16

-7%

1 474 1 308

37% 35%

12M'15 12M'16

40 52939 283

37% 35%

12M'15 12M'16

110 674 112 150

12M'15 12M'16


Revenue EBITDA & MarginDZDm

Revenue increased slightly in Algerian Dinar terms, negative

FX trend impacting reported results though

Weak market trend in second half of the year plus lower

domestic MTR rates have negative effect

Intense competition continued to impact margins

Customer numbers up 6% YoY, reached more than 13.8 million

Ooredoo Algeria launched its 4G services in October 2016 in

the 3 mandatory wilayas: Tlemcen, Tizi Ozou and Bechar.

Algeria


Results

Review

Operations

Review

Additional

InformationOverview

-11%

-3%+1%


Group OperationsTunisia

QARm

1 US$ = 2.147 Tunisian Dinar (TND)1

1 803 1 714

12M'15 12M'16

746 686

41% 40%

12M'15 12M'16

970

12M'15 12M'16

1,011

400 407

41% 40%

12M'15 12M'16


Revenue EBITDA & MarginTNDm


Ooredoo Tunisia maintained its market leadership position amid

still subdued Tunisian economic environment and a weak

Tunisian Dinar

Revenue increased in local currency by 4% despite intense

competition especially in the voice segment . Focus on Data, as

a key contributor to Revenue growth to offset the declines in

voice and SMS

Customer base reached 8 million, up 6%

Expanded 4G coverage further

Recently published report by the Tunisian regulator, ranked

Ooredoo first on the quality in both voice and data services

Tunisia

Results

Review

Operations

Review

Additional

InformationOverview

-5%

-8%

+2%

+4%


Group OperationsMyanmar

QARm

Revenue

EBITDA

1 065

1 470

12M'15 12M'16

Ooredoo Myanmar maintained its growth performance reaching

9 million customers, 55% more than last year

38% Revenue increase driven by data services and further

network rollout, increasingly intense competition

EBITDA improved significantly supported by strong cost control,

almost reaching breakeven in Q4 2016 (EBITDA margin: -1%)

4G roll out progresses, good coverage in main cities of Yangon,

Mandalay and Naypyidaw.

Actively pursuing cost efficiencies through network sharing

opportunities with other operators

International Business Award for customer care received

4th license awarded to a JV led by Viettel Global in January

2017, launch expected within 12 months

Myanmar

Results

Review

Operations

Review

Additional

InformationOverview

+38%

-76

-10

-7% -1%

+88%

1 US$ = 1,236 Myanmar Kyat (MMK)1



Contents

1. Results Review




Additional InformationGroup Revenue and EBITDA Breakdown

Revenue (QARm) EBITDA (QARm)

Results

Review

Operations

Review

Additional

InformationOverview

12M'13 12M'14 12M'15 12M'16

Qatar 3 273 3 448 3 996 4 050

Indonesia 3 862 3 279 3 303 3 724

Iraq 3 628 2 939 2 136 1 923

Kuwait 667 473 620 614

Oman 933 1 115 1 302 1 404

Tunisia 1 310 1 072 746 686

Algeria 1 583 1 481 1 474 1 308

Myanmar -145 -357 -76 (9)

14,640

12,948 13,37913,018

12M'13 12M'14 12M'15 12M'16

Qatar 6 590 7 148 7 897 8 007

Indonesia 8 371 7 395 7 274 7 994

Iraq 7 070 6 298 4 885 4 217

Kuwait 2 500 2 150 2 275 2 382

Algeria 3 884 4 623 4 023 3 732

Tunisia 2 504 2 288 1 803 1 714

Oman 1 990 2 231 2 475 2 639

Myanmar 189 1 065 1 470

33,85133,207 32,161 32,503


Additional InformationGroup CAPEX and Customers Breakdown

CAPEX Breakdown (%) Customer Breakdown (%)

Qatar16%

Iraq7%

Indonesia29%

Oman10%

Kuwait6%

Algeria11%

Tunisia5%

Myanmar14%

Others2%

Qatar2% Iraq

9%

Indonesia62%

Oman2%

Kuwait2%

Algeria10%

Myanmar6%

Tunisia6%

Others1%

12M 2016 CAPEX = QAR 5,982 m 12M 2016 Total Customers = 138,422 m

Results

Review

Operations

Review

Additional

InformationOverview


124,3

118,5114,3

119,8126,7 120,9

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

;16

Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR)

6,7 7,37,0 6,9 6,6 6,7

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Indonesia (QAR) Kuwait (QAR) Tunisia (QAR) Algeria (QAR) Myanmar (QAR)

19,4

14,7 15,6 15,7 15,614,0

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

25,1

22,9 22,7 21,923,3

21,2

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

23,6

17,1 16,7 15,413,7

12,2

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Indonesia (IDR) Algeria (DZD)Tunisia (TND)Kuwait (KWD)

38,4 36,632,9 31,4 32,2 30,3

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

66,2 67,0 67,0 67,0 66,8 66,6

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

49,8 50,3 51,2 51,9 52,548,6

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

34,5

29,2 29,5 30,6 30,227,2

Q3'1

5

Q4'1

5

Q1'1

6

Q2'1

6

Q3'1

6

Q4'1

6

68,3 71,7 69,9 67,8 65,5 66,5

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

26 557 27 644 26 146 25 287

23 966 24 353

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

5,7 6,0 5,8 5,6 5,4 5,6

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

10,5

8,1 8,7 8,9

9,4 8,7

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

710,2673,7 671,8 659,3

703,3642,3

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Myanmar (MMK)

5767,7

4982,34503,5 4378,0

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Group Operations BreakdownBlended ARPU

Results

Review

Operations

Review

Additional

InformationOverview


Additional InformationForthcoming events

Results

Review

Operations

Review

Additional

InformationOverview

Ooredoo Maldives IPO

Ooredoo Maldives Plc. plans to offer its equity through an Initial Public Offering (IPO) under the terms of its licence obligations.

The IPO will be opened to the general public of the Maldives, foreigners, local institutional and international institutional investors.

The IPO period has been agreed with regulatory authorities and is planned for Q2 2017

Ooredoo Maldives does not require fresh capital so the IPO is to be a secondary sell down of shares held by Ooredoo Kuwait which

currently owns 100% of the company.

Oct 2016:

H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani, Chairman, Ooredoo Group, said, “Ooredoo Maldives has been one of our best

performing assets for several years now. The business has harnessed its employees' dedication and management expertise and

benefited from the power of Ooredoo Group and its brand to deliver the best telecommunications products, services and branding.

Crucially, Ooredoo Maldives has been able to develop its business in a well-regulated telecoms market based on the government’s

market-driven policies. Ooredoo Maldives’ IPO will offer an opportunity to investors in the Maldives and abroad to participate in its

success as it moves to its next phase of data-driven growth.”

Sheikh Saud Bin Nasser Al Thani, Group CEO, Ooredoo said: “This exciting announcement demonstrates the remarkable extent of

Ooredoo Maldives’ achievements in recent years. We look forward to further development and growth and we welcome new investors to

contribute and share in our success. The upcoming IPO gives the opportunity for investors to be an active part of our progress, as we

move beyond profitability and towards bringing transformational opportunities to people across our communities. Since its establishment

in the Maldives, Ooredoo has played a key role in driving the telecommunication industry in the country to reach global standards of

excellence.”

Further announcements will be made in due course.


Additional InformationStatutory Corporate Tax Rates

Algeria 26% 4 years

Indonesia 25% 5 years

Iraq 15% 5 years

Kuwait 15% 3 yearsGCC companies (including NMTC)are exempted and are subjected to 4.5% Zakat, KFAS &

national Labour Support Tax on consolidated profits

Maldives 15% 5 years

Myanmar 25% 3 years

Oman 12% 5 years

Palestine 20% 5 years

Qatar 10% 3 years Qatari/GCC owned companies and companies listed on Qatar Exchange are exempt

Singapore 17% Indefinitely

Tunisia 35% 5 years1) 25% is the standard tax rate; 2) 35% tax rate applies to oil companies, banks, financial

institutions including insurance companies and telecommunication companies

NotesStatutory

Tax Rate

Losses C/Fwd

Allowed

Results

Review

Operations

Review

Additional

InformationOverview


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Email: [email protected]

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2016 Q1 Results – April 27, 2016

Full Year 2016 Results - Ooredoo

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