at a Glance
Disclaimer (Parent company Q.S.C.) and the group of companies which it forms part of ( Group ) cautions investors that certain statements contained in this document state Group management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. 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 Group. The Group undertakes no obligation to update publicly or otherwise any forward-looking statements, whether as a result of future events, new information, or otherwise.
at a glance (1) Revenue Diversity Revenue Growth (US$bn) Fixed 12% Mobile 88% Integrated telecom group - not a conglomerate Wide range of services, serving both consumer and business markets Growing fixed business 9.3 9.1 8.8 8.9 2013 2015 2016 Tunisia 7% Algeria 14% Myanmar Others Oman 1% 1% 8% Iraq 19% Kuwait 7% Qatar 22% Indonesia 25% Mix of developed and emerging markets Strong position in all major markets of operations EBITDA Margin (US$bn) 4.0 3.6 3.5 3.6 43% 39% 40% 41% 2013 2015 2016 Customer Diversity Investment (Capex - US$bn) Capex/sales ratios Kuwait 2% Tunisia 6% Algeria 10% Oman 2% Iraq 9% Others 1% Qatar 3% Indonesia 62% 138 million customers 2.6 2.3 2.4 3.6 27% 25% 27% 18% 2013 2015 2016 Note: (1) As of December 31, 2016 1 USD = 3.64 15 QAR
One of the fastest growing telco groups 2006 2016 Algeria Tunisia Palestine Iraq Qatar Kuwait Myanmar Laos Oman Maldives Singapore Indonesia 2006 Record Growth 2016 Markets 2 10 CAGR Customers <2mn >138mn 53% Employees 2,200 16,000 21% Revenue US$ 1.2bn US$ 8.9bn 22% EBITDA US$ 726mn US$ 3.6bn 17%
Driven by a successful track record of execution Sale of non-core Wi Max (wi-tribe) brand launch Preparation for the Maldives IPO Indosat stake increased to 65% ISE US$3bn Bond Program Wataniya Group stake increased to 92% Myanmar network launched 2015 2016 US$3.8bn Wataniya Group acquisition Successful US$125mn bid for Asiacell LSE US$5bn Bond Program Wataniya Palestine IPO Nawras IPO 2012 2013 Launch of Nawras Initial Indosat stake increase to 40% 2010 2011 Asiacell IPO and stake increased to 64% 2009 established 1987 Listing on Qatar Exchange 1998 2005 2007 Investment in StarHub (AMH) 2008 Obtained investment grade ratings Launch of Wataniya Palestine Total Group stake now 90%
...Backed by a solid story International Communications Company An international telecom company with a total customer base of 138 million Operating mobile telecom networks in 10 countries in the MENA and Asia Pacific regions Strong market position in all major markets of operations Diversified and Balanced Portfolio Diversified assets in 10 countries with s home market (Qatar) representing less than 25% of total Group revenue Balanced mix of operations in relatively mature markets such as Qatar, Kuwait and Oman alongside markets with potential high growth such as Indonesia, Algeria, Iraq and Tunisia Government Ownership Clear Vision and Focused Strategy Financial and Credit Strength Experienced Management Direct State of Qatar (Aa2 / AA) ownership of 51.69% of voting shares, as well as the Golden Share, while other Qatari Government Related Entities hold 16.57% and Abu Dhabi Investment Authority holds 10.0% Government board members of hold or have held key positions in the State Administration Government support with regard to both domestic operations and international expansion Disciplined investments focused on delivering strategic and financial benefits Focus on increasing revenues from broadband data besides voice growth taking advantage of a high quality customer experience Improving performance by identifying synergies across the Group, product development and innovation and cost control High investment grade rating from all three agencies (A2 / Moody s, A- / S&P, A+ / Fitch) Strong financial performance with sustained growth in revenues, EBITDA margin and net profit Proactive debt and liquidity management, with capital expenditure covered by cash-flow generation Debt leverage (net debt / EBITDA) underpinned by a conservative credit policy Management with significant experience in the mobile and fixed-line telecommunications sectors Proven track record in delivering organic growth as well as making and integrating acquisitions Senior executives sit on the boards of all of s direct subsidiaries, ensuring consistency and compliance with the Group s overall strategy
Group Results LEAD Strategy Progress
Full Service Operator Fixed Mobile Data Residential Enterprise Data centers Wide array of cutting-edge products and services offered for both individuals and businesses Best-in-class services and leading position across key product lines Innovation-driven solutions and focus on in-house development
Key Operations 1 Operation Customers (millions) Market Position Revenue EBITDA (US$ mn) % of Group (US$ mn) % of Group Indonesia Mobile, fixed 85 2/8 2,195 24% 1,022 27% Iraq Mobile 11.9 2/3 1,158 12% 528 14% Qatar Mobile, fixed 3.4 1/2 2,198 24% 1,112 30% Algeria Mobile 13.7 2/3 1,024 11% 359 9% Kuwait Mobile 2.3 3/3 654 7% 168 4% Tunisia Mobile, fixed 7.9 1/3 470 5% 188 5% Oman Mobile, fixed 2.9 2/2 724 8% 385 10% Myanmar Mobile 8.9 2/3 403 4% (2.6) - Notes: (1) Full Year 2016
Q.S.C.: Group Structure and Presence Ownership Profile 21% State of Qatar/Qatar Holdding 10% 52% Other Qatari Government Related Entities 17% Abu Dhabi Investment Authority (ADIA) Public/Others Investments/ Effective Stake Indosat Asiacell Wataniya Mobile Navlink LTC StarHub Qatar Indonesia Iraq Algeria Oman Kuwait Tunisia Myanmar Palestine Maldives Lebanon 100% 65% 64.1% 74.4% 55% 92.1% 84.1% 100% 44.6% 92.1% 38% Laos 6% Singapore 14.1%
Technology initiatives across the Group 2016 - Tunisia 4G LTE Launched Network Sharing in place & expanding. Fixed NW progressing Asiacell - Iraq 3G UMTS Launched RAN Sharing discussions underway - Kuwait 4G LTE Advanced launched Converged Datacenter for IT & Telco Apps Fixed NW acquisition - Oman 4G LTE Expansion 4G LTE-A Launched Fixed NW rollout in progress Undersea Cable (AAE1 & SEME-5) ready in 2017 Indosat - Indonesia 4G LTE Launched RAN Sharing discussions underway DWDM (100G) backbone in Sumatra & Java in progress Fixed NW rollout in progress in Jakarta Undersea Cable (APX) in progress Algeria 4G LTE Rollout underway RAN Sharing in progress Transmission sharing in place Wataniya Palestine 3G Rollout underway Qatar 4G LTE Advanced launched (+300 mbps) FTTH phase 3 (final phase) in completion vims for VoLTE & Fixed voice Undersea Cable (AAE1 & SEME-5) ready in 2017 Maldives 4G LTE launched 1100km Undersea cable in progress Fixed NW rollout in progress Myanmar Fiber Sharing 4G LTE Launched (1st in Market) CORNERSTONES OF OUR ACTIVITIES Network Modernization completed for all 10 OpCos with expansion continually underway to accommodate exponential data growth. 4G LTE in 8 OpCos (Commercially launched in Qatar, Indonesia, Myanmar, Oman, Kuwait, Tunisia, Maldives with rollout underway in Algeria) 4G LTE-Advanced in 5 OpCos (Commercially launched in Qatar, Oman & Kuwait with rollout underway in Indonesia & Tunisia). Fixed Networks in 6 OpCos (Qatar, Indonesia, Oman, Tunisia, Kuwait & Maldives) UNIFY (IT & NW virtualization), in all OpCos with benefits materializing from 2016 BSS Landscape/Architecture simplification underway to improve business agility Global internet capacity upgrades & increased destinations with 4 new undersea cables Network sharing initiatives under discussion in some OpCos
Investment Highlights Top Line Growth Balanced portfolio of mature and emerging market presence Relatively low smartphone penetration; data still accounts for a relatively low % of revenues; pricing rationality will improve 9m businesses are spending $10B across our footprint; current B2B share is approx. 15%. Bottom Line Performance Performance management Cost optimizing Infrastructure sharing Group synergies, e.g. procurement Disciplined M&A Improving returns across existing portfolio Selective value accretive acquisitions Financial and Credit Strength Attractive shareholder returns with appropriate dividends Investment grade rating Conservative credit policy Government support
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