Ooredoo Group Q2 2020 Results July 2020 1
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 1 Results review 2 Operations review 3 Additional information 3
Overview Results review Operations review Additional information Group Results Key Highlights Solid financial performance in challenging conditions COVID 19 response : Revenue declined by 3% EBITDA declined by 5% Group Net Profit attributable Data revenues account for enhancing health and safety year-on-year to QAR 14 year-on-year to QAR 6 to Ooredoo shareholders more than 50% of total • and work from home initiatives billion due to the COVID-19 billion, impacted by declined by 3% to QAR Revenue driven by our data uninterrupted connectivity and impact, a reduction in movement restrictions to 818 million in H1 2020, leadership and digital • services for customers handset sales and roaming contain the spread of compared to the same transformation initiatives across optimised data traffic flows business as well as COVID-19 in many period last year, due to the the countries we operate in • across our fixed and mobile macroeconomic weakness in territories as well as reduction in EBITDA which networks to accommodate the some of our markets which challenging market conditions was partially offset by a Ooredoo Group maintained its strong growth in data traffic was partially offset by robust in Iraq, Algeria, Kuwait and more favorable Foreign world ranking in the 2020 during the pandemic growth in Indonesia, Tunisia Oman Exchange environment Telecoms 300 report , a top 50 relief to communities that need and Myanmar compared to the same global telecommunications • it the most and targeted CSR period last year brands for the fourth year in a campaigns and donations row, with a brand value worth over USD 3.5 billion. AA+ Brand Rating of for the second consecutive year 4
Overview Results review Operations review Additional information Group Results COVID- 19 Initiatives Commercial Infrastructure • Optimised customer care activities to function effectively and safely during Initiated Business Continuity plans to movement restrictions • launched smart IVR to reduce calls to agents satisfy the evolving customer needs • Routine health checks for customer care agents during COVID-19 including: • Transitioned call centres to WFH • Rapid identification of potential bottle necks in fixed and mobile • Tailored promotions and offers for to support customers through COVID-19 networks. • Free webex for businesses • Doubled data speeds and offered emergency credit • Network optimisation to manage surging data usage and shifting • Ensure supply chain stability consumer requirements. • Adopted new digital solutions • Added distribution partners • Deployed infrastructure and tools • Lobbied for key locations to remain open for to facilitate employees work from home. • Accelerated digital transformation • Launched customer care apps in new territories • Increased portfolio of products available digitally • 24/7 access to digital care channels 5
Overview Results review Operations review Additional information Group Results COVID- 19 Initiatives CSR Initiatives • CSR activities and COVID-19 information campaigns to support to the community • Donation to local COVID-19 funds to support impacted communities and aid national governments • Free data & speed upgrades to support of key workers in health care and government sectors • Deployment of e-Learning platforms to support quality education from home. • Promotion and offers to support customers including free internet for education sites, free credit transfers and data speed upgrade. • Extension of credit terms to small and medium enterprises. 6
Overview Results review Operations review Additional information Group Results Revenue and EBITDA Revenue (QARm) EBITDA (QARm) and EBITDA Margin -3% -5% 14,508 14,118 6,339 -6% 5,996 3,166 -7% 7,316 2,973 6,823 44% 43% 42% 44% 1H-19 1H-20 Q2-19 Q2-20 Q2-19 Q2-20 1H-19 1H-20 • Resilient performance against pandemic backdrop • Revenue decreased, but growth in Indonesia, Myanmar, Tunisia and Palestine • Excluding FX impact: Revenue -2% and EBITDA remained at -5% 7
Overview Results review Operations review Additional information Group Results Net Profit Net Profit Attributable to Ooredoo shareholders (QARm) -3% 841 818 +3% 795 Net Profit 451 612 432 421 403 Net Profit F/X Impact F/X Impact Pre F/X Net Profit Pre F/X Net Profit 29 207 (30) 46 1H-19 1H-20 Q2-19 Q2-20 • Net Profit decreased by 3%, but improved in QoQ • Economic weakness, as a result from the COVID-19 lockdowns, is likely to have an impact on the performance of our operations • Ooredoo Group has healthy cash reserves and liquidity levels that can absorb the impact of COVID-19 for the year 2020 8
Overview Results review Operations review Additional information Group Results Free Cash Flow and Capital Expenditure CAPEX (QARm) & CAPEX/ Revenue (%) Free Cash Flow (QARm) -1% -10% 2,667 +28% 2,120 2,107 2,410 1,297 -30% 1,296 904 1,015 15% 15% 19% 14% 1H-19 1H-20 Q2-19 Q2-20 1H-19 1H-20 Q2-19 Q2-20 • Capex in line with guidance taking advantage of scale of Ooredoo Group and global sourcing strategy • Decent FCF despite COVID 19 and challenging market conditions 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 as sets (excluding spectrum, license and leased assets capitalized under IFRS-16 ) 9
Overview Results review Operations review Additional information Group Results Total customers Total Customers (Millions) -13% 149.2 +2% -12% 130.1 117.2 114.9 1H-17 1H-18 1H-19 1H-20 • Customer number growth mainly supported by new subscribers in Myanmar and Indonesia 10
Overview Results review Operations review Additional information Group Results Net debt Net Debt (QARm) and Net Debt / EBITDA +12% 27,858 27,589 -9% -12% 25,007 24,573 2.2 1.9 1.8 1.8 1H-17 1H-18 1H-19 1H-20 • Positive trend of Group Net Debt reduction continued; Net Debt to EBITDA ratio 1.8x • Lower end of the board guidance between 1.5 and 2.5x (bank covenant 4.5x) • IFRS 16 implemented from 01 January 2019. Impact of approx. + 0.3x on Net Debt/EBITDA ratio 11
Overview Results review Operations review Additional information Group Results 2020 1H performance summary 1H 2020 Group Financials 2020 Full Year % Change 2020/2019 (QAR bn) Actual Guidance over 2019 Revenue 14.1 -3% -1.5% to +1.5% EBITDA 6.0 -5% -2% to +1% CAPEX 2.1 -3.8% 5.5bn to 6.5bn • COVID 19 impacted revenue and EBITDA negatively • Network and service level maintained despite surge in data traffic • The situation with COVID-19 is evolving rapidly as governments across all our territories continue to implement or revise measures. Telecom sector is a more defensive sector, customers are heavily relying on our service 12
Contents 1 Results review 2 Operations review 3 Additional information 13
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