Powering Growth Through Digital

2019 Annual Report

Enabling Digital Transformation

Dear Shareholders,

In 2019, Ooredoo continued to pursue an ambitious strategy of digital transformation, deploying new network technology to enhance the digital lives of our customers and to significantly enhance our own operations. The focus on digital and data leadership delivered positive returns for the organisation.

We continued to build the network foundation that will enable Ooredoo to support the next generation of digital services, including testing, introducing and enhancing 5G services in key markets and boosting fibre-based services in select geographies.

Importantly, we also aligned our external digital transformation strategy with an internal change programme, looking to digitise core functions to make it easier for customers to find, buy and use our services online.

Alongside the investment in digital innovation, Ooredoo continued to review the assets in our portfolio to ensure that we are achieving the highest levels of efficiency and effectiveness to ensure the strongest return for shareholders.

I offer Ooredoo’s sincere gratitude and appreciation to His Highness Sheikh Tamim Bin Hamad Al Thani, the Emir of the State of Qatar, for another year of wise leadership and empowering support. As a proud Qatari company, Ooredoo strives to support the national vision as we move forward as a united, progressive country.

Abdulla Bin Mohammed Bin Saud Al Thani
Chairman

February 13, 2020
Smart strategy for digital growth

Dear Shareholders,

Ooredoo was able to accomplish so much in 2019 – even in the face of intense competition and regulatory challenges – because of three key attributes: our market leadership, which sees us provide the most advanced data networks; our performance culture, which enables us to stay agile and respond to market pressures; and our efficient business models, which ensure we manage costs and stay streamlined even as we invest for the future.

We have built upon these strengths through our digital transformation strategy, so that our operating companies are working hard to be ‘Digital Enablers’ that empower our customers through digital services.

Our investment in superior network quality across our footprint, supported by a clear digital strategy, provides Ooredoo with the technological leadership to thrive and grow.

Saud Bin Nasser Al Thani
Group CEO

February 13, 2020

Group Results

Delivering a Robust Performance

+10% Net profit +5% EBITDA
Revenue Amount in QR millions 29916
Dividend per share Amount in QR 0.25
Net profit attributable to Ooredoo shareholders Amount in QR millions 1725
Earnings per share Amount in QR 0.54
EBITDA & EBITDA margin (%) Amount in QR millions 12847
Capital Expenditure & CAPEX/ Revenue % Amount in QR millions 5869
Revenue Amount in QR millions 29916
2019 29916
2018 29927
2017 32646
2016 32503
2015 32161
Dividend per share Amount in QR 0.25
2019 0.25
2018 0.25
2017 0.35
2016 0.35
2015 0.3
Net profit attributable to Ooredoo shareholders Amount in QR millions 1725
2019 1725
2018 1565
2017 1897
2016 2193
2015 2118
Earnings per share Amount in QR 0.54
2019 0.54
2018 0.49
2017 0.59
2016 0.68
2015 0.66
EBITDA & EBITDA margin (%) Amount in QR millions 12847
2019 12847
2018 12202
2017 13640
2016 13379
2015 13018
Capital Expenditure & CAPEX/ Revenue % Amount in QR millions 5869
2019 5869
2018 4872
2017 4541
2016 5982
2015 8762

Our Strategy

Enriching People's Digital Lives

Ooredoo has evolved its vision to “Enriching people’s digital lives,” to reflect its aspiration to continue to exceed the needs and expectations of consumer, business and governmental customers across its markets by delivering superior products, services, and customer experiences in the Digital Age. This new vision has been successfully implemented across all 10 operating companies and communicated to all employees. Our Group values – Caring, Connecting, Challenging, were also extended to all 10 operating companies, and communicated to all group employees.

Diversification in the Digital Age

Market
Leader

  • Smarter distribution
  • Leading data networks
  • Align with Over-The-Top providers, Original Equipment Manufacturers in-market

Performance
Culture

  • Radical culture transformation
  • Lean & agile
  • Digitally skilled employees

Efficient
Models

  • Organisational efficiencies
  • Advanced analytics
  • Re-engineered cost models
  • Group efficiencies

Extend and
Leverage

  • Opportunistic expansion opportunities
  • Connectivity
  • Consumer content
  • Business-to-business or ICT solutions

Digital Transformation Programme Objectives

Make it easier to find, buy and use Ooredoo services online

New digital revenues from partnerships

Seize further digital opportunities

Country Performance

Headquartered in Doha, Qatar, Ooredoo is a global telecommunications company with a consolidated global customer base of more than 117 million, as at 31 December 2019. Its operating network extends across 10 markets in the Middle East, North Africa and Southeast Asia.

Our Reach 117 million customers
North Africa 21.7 m customers
Middle East 24.1 m customers
Southeast Asia 71.2 m customers

Qatar

Ooredoo Qatar continues to open new opportunities for customers, businesses and organisations across our progressive nation, by leveraging the strength of its network and the power of digitalisation. The company has led the way in 5G services and successfully delivered one of the most advanced ‘smart stadium’ solutions ever seen at the International World Athletics Championship in Doha. Combined with the launch of the world’s first virtual reality store, Ooredoo is supporting Qatar’s national transformation.

3%
Customers
24%
Revenue
31%
EBITDA
18%
Capex
Total Customers 3271
2019 3271
2018 3281
2017 3436
2016 3484
2015 3506
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.
2019 7301 3957 54% 107.4 1303
2018 7742 3987 52% 114.3 1362
2017 7791 3916 50% 112.8 1490
2016 8007 4050 51% 120.9 1530
2015 7897 3995 51% 118.5 1554

* Blended ARPU is for the three months ended 31 December.

Indonesia

2019 was a turnaround year for the Indonesian telecommunications industry, and Indosat Ooredoo successfully consolidated its customer base and delivered double-digit growth, improving its position as a leading mobile operator in the country. Our main focus for the year was on our customers, and we launched a number of new products, while also enhancing and digitising services through our innovative MyIM3 app and online SIM service and through strategic partnerships with Google, Facebook and Snapchat.

51%
Customers
22%
Revenue
23%
EBITDA
43%
Capex
Total Customers 59294
2019 59294
2018 58074
2017 110200
2016 85654
2015 69737
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.
2019 6728 2899 43% 7.3 3708
2018 5919 1969 33% 6.1 3700
2017 8145 3728 46% 5 4391
2016 7994 3724 47% 6.7 4421
2015 7274 3303 45% 7.3 4320

* Blended ARPU is for the three months ended 31 December.

Kuwait

Ooredoo Kuwait had a good year as it grew revenue market share in a challenging environment and was the first to launch commercial 5G in Kuwait. The company’s strategy to focus on defined customer segments of the market and to perfect its digital user experience has enabled it to grow in an already mature market.

2%
Customers
9%
Revenue
7%
EBITDA
6%
Capex
Total Customers 2588
2019 2588
2018 2311
2017 2216
2016 2346
2015 2269
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.**
2019 2772 867 31% 58.5 1132
2018 2905 662 23% 68.8 1225
2017 2675 652 24% 72.7 1140
2016 2382 614 26% 66.5 1018
2015 2275 620 27% 71.7 737

* Blended ARPU is for the three months ended 31 December.
** Employees at FASTtelco is included from 2016

Oman

Ooredoo Oman is proud to have been the Sultanate’s data experience leader for yet another year, testament to its successes and contribution to digitally enabling the Omani market through continued network investment in highspeed digital infrastructure. The expansion of Oman’s best telecoms app and the introduction of the country’s all-digital pre- and post-paid mobile data plans brought flexibility, control, personalisation and an awesome, digital-first customer experience. In preparation for things to come, the company showcased its 5G experience zones in Muscat and Salalah.

2%
Customers
9%
Revenue
12%
EBITDA
8%
Capex
Total Customers 2864
2019 2864
2018 3014
2017 3072
2016 2947
2015 2788
Financial performance
  Revenue QRm* EBITDA QRm EBITDA Margin % Blended ARPU** QR Employees No.
2019 2703 1490 55% 54.7 1022
2018 2685 1463 54% 60.1 968
2017 2670 1429 54% 62.6 1044
2016 2639 1404 53% 66.6 1056
2015 2475 1302 53% 67 1024

* Commission on cards was netted against revenue from 2018.
** Blended ARPU is for the three months ended 31 December.

Iraq

In 2019, Asiacell upgraded its entire network to support 3G whilst restoring service to liberated regions and expanding to the south of the country. Boasting the widest 3G coverage in the country, the company has maintained its leadership position in Iraq and remains committed to further optimising its network in line with its digital transformation strategy.

12%
Customers
15%
Revenue
16%
EBITDA
6%
Capex
Total Customers 14162
2019 14162
2018 14232
2017 12925
2016 11987
2015 10794
Financial performance
  Revenue QRm* EBITDA QRm EBITDA Margin % Blended ARPU** QR Employees No.
2019 4572 2040 45% 29.2 3167
2018 4449 2093 47% 26.8 2832
2017 4490 1982 44% 29.9 2773
2016 4217 1923 46% 30.3 2747
2015 4884 2136 44% 36.6 2733

* Commission on cards was netted against revenue svg-fi-grom 2018.
** Blended ARPU is for the three months ended 31 December.

Algeria

In 2019, Ooredoo Algeria developed a thriving ecosystem of digital services that gained immense popularity, especially among the youth in Algeria. The company continued to provide a unique customer experience that sets it apart in the Algerian market.

11%
Customers
8%
Revenue
7%
EBITDA
10%
Capex
Total Customers 12615
2019 12615
2018 13887
2017 14294
2016 13769
2015 13037
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.
2019 2501 867 35% 15.5 2895
2018 2760 1029 37% 15.5 2807
2017 3422 1506 44% 18.2 2785
2016 3732 1308 35% 21.2 2830
2015 4023 1474 37% 22.9 3008

* Blended ARPU is for the three months ended 31 December.

Tunisia

2019 was a good year for Ooredoo Tunisia as the company maintained its leadership in the Tunisian telecommunications industry with more than 43% market share, and delivered good financial and operational results supported by growth across its mobile data, B2B and fixed line services.

8%
Customers
5%
Revenue
5%
EBITDA
3%
Capex
Total Customers 9163
2019 9163
2018 9052
2017 8352
2016 7961
2015 7491
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.
2019 1476 682 46% 11.2 1560
2018 1526 595 39% 12.3 1585
2017 1530 606 40% 11.9 1600
2016 1714 686 40% 14 1613
2015 1803 746 41% 14.7 1640

* Blended ARPU is for the three months ended 31 December.

Myanmar

2019 was a landmark year for Ooredoo Myanmar as the company celebrated its fifth anniversary. Thanks to a combination of hi-speed connectivity, innovative technologies and a strong digital offering, Ooredoo Myanmar continues to be the leading digital enabler in the country. In 2019, the company reported solid growth in its customer base and digital revenues, despite a highly competitive market.

10%
Customers
4%
Revenue
2%
EBITDA
4%
Capex
Total Customers 11527
2019 11527
2018 9605
2017 7915
2016 9000
2015 5818
Financial performance
  Revenue QRm* EBITDA QRm EBITDA Margin % Blended ARPU** QR Employees No.
2019 1062 280 26% 7.9 836
2018 1262 197 16% 8.7 914
2017 1324 152 11% 15 966
2016 1470 (9) -1% 12.2 939
2015 1065 (76) -7% 17.1 949

* Commission on cards was netted against revenue in 2018.
** Blended ARPU is for the three months ended 31 December.

Palestine

During 2019, Ooredoo Palestine expanded and enhanced the Ooredoo network to reach remote areas of the country as it focused on enriching people’s digital lives. With this, the company has built a platform to enable further growth for Ooredoo Palestine.

1%
Customers
1%
Revenue
0.9%
EBITDA
0.5%
Capex
Total Customers 1323
2019 1323
2018 1286
2017 1016
2016 773
2015 701
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.
2019 362 109 30% 23 537
2018 366 96 26% 21.5 534
2017 312 69 22% 25.1 572
2016 306 80 26% 27.2 447
2015 303 78 26% 29.2 419

* Blended ARPU is for the three months ended 31 December.

Maldives

2019 was a great year for Ooredoo Maldives, increasing its net profit by 10%, as it maintained its focus on investing in infrastructure and first-of-its kind initiatives to fulfil its commitment towards a digital Maldives. The company introduced several firsts to the country, including our nationwide e-commerce marketplace, Moolee, an AI-powered digital care assistant - E’vee - and leading-edge technologies such as e-SIMs, LTE Voice and VoLTE.

0.4%
Customers
1.6%
Revenue
2.1%
EBITDA
0.9%
Capex
Total Customers 405
2019 405
2018 440
2017 440
2016 397
2015 350
Financial performance
  Revenue QRm EBITDA QRm EBITDA Margin % Blended ARPU* QR Employees No.
2019 481 264 55% 56.2 370
2018 461 237 52% 52.3 359
2017 435 236 54% 53.3 345
2016 381 206 54% 48.6 331
2015 288 133 46% 50.3 317

* Blended ARPU is for the three months ended 31 December.

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