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Ooredoo Maldives Investor Presentation 1 Initial Public Offering of Ooredoo Maldives Plc IPO Opens on April 30, 2017 LEAD FINANCIAL ADVISOR AND MANAGER TO THE OFFER

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  • Ooredoo Maldives Investor Presentation 1

    Initial Public Offering of Ooredoo Maldives Plc

    IPO Opens on April 30, 2017

    LEAD FINANCIAL ADVISOR AND MANAGER TO THE OFFER

  • Ooredoo Maldives Investor Presentation 2

    This Presentation (the Presentation) has been prepared by Ooredoo Maldives Plc (OMPL or the Company) solely for use with

    professional or institutional investors. This Presentation is strictly confidential and is furnished to you solely for your information. It

    should not be treated as giving investment advice and may not be copied, reproduced, distributed or otherwise made available (in

    whole or in part) to any other person (including any member of the press) and it may not be published, in whole or in part, by any

    medium for any purpose. No specific investment objectives, financial situation or particular needs of any recipient have been taken into

    consideration in connection with the preparation of this Presentation.

    The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is

    made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions

    contained in this Presentation. None of the Company, its advisors or any of their respective representatives or affiliates undertakes to

    update, complete, revise or amend the information contained in this Presentation subsequent to the date hereof. Furthermore, none of

    the Company, its advisors or any of their respective representatives or affiliates shall have any liability whatsoever (in negligence or

    otherwise) for any loss, whether direct or indirect, howsoever arising from any use of this Presentation or its contents or otherwise

    arising in connection with this Presentation.

    This Presentation contains certain forward-looking statements that speak only as of the date of this Presentation. Such statements are

    made on the basis of assumptions and expectations that the Company currently believes are reasonable, but could in the future prove

    to be wrong. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual outcomes to

    differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to

    differ materially from the Company assumptions and expectations include, among others: The Companys ability to manage domestic

    and international growth and maintain a high level of customer service; future sales growth; market acceptance of the Company product

    and service offerings; the Companys ability to secure adequate financing or equity capital to fund its operations; network expansion;

    performance of the Company network and equipment; cooperation of incumbent local exchange carriers in provisioning lines and

    interconnecting the Companys equipment; regulatory approval processes; changes in technology; price competition and other market

    conditions and associated political risks. The risks referred to above are morefully described in Section 12 of the IPO Prospectus.

    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 the Company.

    By accepting this Presentation the recipient agrees to be bound by the foregoing limitations.

    Disclaimer

  • Ooredoo Maldives Investor Presentation 3

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 4

    Ooredoo Maldives - A Compelling Investment OpportunityProspective dividend yield of 10.9% for 2017F based on forecasts and IPO Offer Price

    Favourable Macro

    and Industry

    Dynamics

    The Maldivian economy has projected GDP growth of 3.9% in 2017 (as per IMF projections)

    Telecommunications industry is given impetus under Digital Maldives initiative

    Ubiquitous connectivity to drive growth in content consumption, IoT (Internet of Things) adoption

    and enterprise solutions

    Focused Growth

    Strategies

    Dynamic market for mobile data consumption growth due to enhanced 4G+ connectivity across the

    archipelago enabled by the Nationwide Submarine Cable (NaSCOM)

    Postpaid customer acquisitions due to Mobile Number Portability (MNP)

    Fixed Broadband growth from domestic and enterprise segments

    Company

    Performance and

    Healthy Margins

    Proven track record: 2013-16 CAGR of 31.9% and 16.8% in revenue and total customer base

    30 ppt increase in EBITDA margins over last 4 years to reach 50.4% in 2016, driven by topline

    growth and supported by cost optimsation

    Driven by approx. USD 194 Mn in network infrastructure investments (2006 to date)

    Strong

    Management

    Team &

    Shareholder

    Support

    Highly experienced management team with blend of expatriate and local talent

    Ooredoo Group has operations in 10 countries spanning MENA and South East Asia with a total

    customer base of over 138 Mn

    Significant synergetic benefits via group procurement and finance policies

    High Dividend

    Yield with

    Potential for

    Further Growth

    Increasing profitability and lower capex requirements after high build out levels to support higher free

    cash flow (FCF) generation

    Higher FCF available for distribution with OMPL expected to maintain a high dividend payout ratio in

    line with dividends declared for FY 2016 (payout ratio of 85%)

    Potential for shareholders to earn attractive returns via increasing dividend yields and potential

    capital gains

  • Ooredoo Maldives Investor Presentation 5

    Offer Summary

    Type of Security Ordinary Voting Shares

    Number of Shares Offered

    59,120,160 Ordinary Shares, which represents 40% of the Issued Ordinary Shares.

    The Offeror will start by offering 22,170,060 Ordinary Shares, which represents 15% of the

    Issued Ordinary Shares. In the event of an oversubscription, the Offeror will meet any

    additional demand up to a maximum of the offered 59,120,160 shares

    Share Offer Price MVR 30.00

    Share Offer Amount Maximum of MVR 1,773,604,800

    Purpose of the OfferComply with the listing requirement stipulated on the Companys License by

    Communications Authority of Maldives (CAM)

    Offer Opening Date April 30, 2017

    Offer Closing Date May 28, 2017*

    Secondary Market Trading August 07, 2017*

    Shareholder

    Pre-Offer Post-Initial Offer Post-Total Offer

    Number of Shares % Number of Shares % Number of Shares %

    Existing Shareholders 147,800,401 100.0 125,630,341 85.0 88,680,241 60.0

    New Investors - - 22,170,060 15.0 59,120,160 40.0

    Total 147,800,401 100.0 147,800,401 100.0 147,800,401 100.0

    * Note: These dates are subject to change if the 1st day of Ramadan falls on a day that is a weekday in the Maldives

  • Ooredoo Maldives Investor Presentation 6

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 7

    Trailblazer in Maldives Telecommunications Industry

    Inauguration of Nationwide

    Submarine Cable

    Mobile infill

    solutions to

    improve street

    level coverage

    1st in South Asia

    Wireless

    Broadband

    2005

    Entry into the market

    as Wataniya International

    2006

    International subsea cable by WARF

    Telecom International Private Limited

    2008

    2009

    2013

    Rebranded as Ooredoo

    2014

    Tested LTE

    advanced

    successfully

    2015

    2016

    Mobile Number Portability

    and m-Faisaa (mobile

    money)

    Launch of Fixed

    Broadband

    Introductory Listing on the

    Maldives Stock Exchange

    5 year CAGRs of 25% and

    23% in revenue and total

    customer base between 2011

    and 2016

  • Ooredoo Maldives Investor Presentation 8

    Supported by Ooredoo GroupOne of the fastest growing Telco groups with presence in MENA and South-East Asia

    CAGR

    22%

    17%

    53%

    21%

    Revenue

    EBITDA

    Customers

    Employees

    Markets

    USD 1.2 Bn

    USD 726 Mn

    < 2 Mn

    2,200

    2

    2006

    USD 8.9 Bn

    USD 3.6 Bn

    > 138 Mn

    16,000

    10

    2016Growth

  • Ooredoo Maldives Investor Presentation 9

    4G in 8 markets out of 10 markets

    40% of Revenue from Data

    Majority Ownership by State of Qatar

    Ultimate Holding Company (Ooredoo Q.S.C.) listed on

    QSE, ADX and LSE

    Brand equity of USD 3.1 Bn*

    Investment Grade Rating of A+ / A2 / A- by Fitch /

    Moodys / S&P

    Ooredoo Group, an International Telco with a Focus on Data Leadership

    * Source: Telecoms 500 2017 by Brand Finance

  • Ooredoo Maldives Investor Presentation 10

    Fully-fledged Communications Service Operator

    Mobile Fixed Content Services Enterprise Solutions Financial Services

    Localised services to suit the needs of the Maldivian market

    Innovative solutions and in-house product development

    Unlimited

    on-net

    calling &

    SMS

    Targeted

    data packs

    for social

    media

    Internet

    leased

    Lines

    Ooredoo

    Locate -

    Real time

    GPS

    Tracking

    Cloud

    services

    and hosted

    services

    Utility &

    Merchant

    Bill

    Payments

    Mobile

    Money

    Transfer

    (m-Faisaa)

  • Ooredoo Maldives Investor Presentation 11

    Unparalleled Customer Experience with Over 3,000 Touch-points

    Comprehensive

    Distribution

    Network

    10 Ooredoo Experience Centers

    93 Sales Partners

    27 Business Partners

    Over 3,000 customer touch-points

    Catering to

    Evolving

    Consumer

    Trends

    My Ooredoo App, a first in the Maldives

    Mobile financial services

    Data warehouse solution with enhanced analytical tools

    Committed to

    Serve

    Customers

    24x7 customer care call center with back up facility in Hulhumal

    Self-service via kiosks across the country

    Self-service Interactive Voice Response

    Live chat option

    New submarine cable connecting island communities

    Unique Loyalty

    Program

    Ooredoo Vedhun Loyalty Program to reward long standing customers

    Club Premier Loyalty Program for postpaid customers

  • Ooredoo Maldives Investor Presentation 12

    Investment of USD 194 Mn into Cutting Edge Technology

    4G/LTE 99%

    Population Coverage

    Improved street level

    coverage via mobile infill

    solutions

    Significant investments

    on international and

    domestic bandwidth

    Transformation to digital

    customer experience

    NaSCOM, spanning 1,200 km with a 1.6 TB capacity, has expanded 4G+ network across the country

    Landmark projects such as NaSCOM and International Subsea Cable

    Nationwide 4G+ network coverage across the archipelago

    Digital experience for customers

    NaSCOM

  • Ooredoo Maldives Investor Presentation 13

    High Calibre Executive Leadership (1/3)

    Mr. Vikram Sinha Managing Director / Executive Director

    Mr. Najib KhanChief Executive Officer / Executive Director

    Mr. Ramanathan Sivakumar Chief Financial Officer / Executive Director

    >17 years in telecom, media and

    FMCG

    Served as CEO of Ooredoo

    Maldives from April 2014 to April

    2017. Former Managing Director

    of Airtel Seychelles and COO at

    Airtel Brazzaville, Congo

    Holds a Bachelor of Business

    Management (Marketing) degree

    and an MBA

    >25 years in telecom with

    expertise in managing Enterprise,

    Wholesale and B2C commercial

    activities

    Former Senior Director

    Commercial at Ooredoo Group

    and CXO at Bharti Airtel India

    Holds a Bachelor of Science in

    Industrial Electronics Engineering

    from Mumbai University

    >25 years in telecom and

    manufacturing

    Former Financial Controller of

    Ooredoo Kuwait

    A Commerce Graduate from the

    University of Madras, India and a

    Fellow Chartered Accountant

    from the Institute of Chartered

    Accountants of India

  • Ooredoo Maldives Investor Presentation 14

    High Calibre Executive Leadership (2/3)

    Mr. M. S. TanwarChief Technology Officer

    Mr. Balaji SrinivasanChief Commercial Officer

    Mr. Mohamed ShahidDirector HR and Administration

    >25 years in telecom

    Expertise in R&D, network

    engineering, projects, operations

    and business development

    Holds a Bachelors degree in

    Electronics and Communications

    Engineering and an MBA in

    Operations Management

    >23 years

    of commercial experience

    Former Director of Marketing and

    Customer Experience at Essar

    Telecom Kenya and VP

    Marketing at IDEA Cellular

    Holds a Bachelor of Commerce

    Degree

    >14 years

    of industry experience

    Managed the Operations,

    Training and HR departments at

    MNDF

    Holds an MBA with a major in

    Entrepreneurship

  • Ooredoo Maldives Investor Presentation 15

    High Calibre Executive Leadership (3/3)

    Mr. Sunil MishraHead of Strategy and PMO

    Ms. Gulnaz MahirHead of Customer Care

    Mr. Hussain NiyazHead of Sales

    >12 years

    in telecom, manufacturing and

    e-commerce

    Experienced in business strategy

    and planning, ERM and project

    management at Airtel, Flipkart and

    Toyota

    Mechanical Engineering Graduate,

    Post-Graduate in Business

    Management and Project

    Management Professional

    >8 years of experience

    Prior expertise in Finance and

    Commercial fields

    Holds a BA Honors and a

    Masters Degree in Economics

    and Finance

    >23 years in telecom

    Held key posts in networks,

    network planning and sales

    within OMPL

    Holds an Executive Masters in

    Telecom Management

  • Ooredoo Maldives Investor Presentation 16

    Consistent growth of customer base Product strategy generating ARPU growth

    Outstanding Growth Story Resulting in Revenue CAGR of 32% ...

    Strong revenue growth Net gain in revenue market share

    0

    100

    200

    300

    400

    2013 2014 2015 2016

    00

    0s

    Prepaid Postpaid Wireless Broadband Fixed Line150

    175

    200

    225

    2013 2014 2015 2016

    MV

    R

    0

    400

    800

    1,200

    1,600

    2,000

    2013 2014 2015 2016

    MV

    R M

    n

    25% 29%35% 39%

    75% 71%65% 61%

    0%

    20%

    40%

    60%

    80%

    100%

    2013 2014 2015 2016

    OMPL Incumbent Operator

    Source: Company data, Regulatory filings

  • Ooredoo Maldives Investor Presentation 17

    Healthy PAT margins

    Whilst Leading to a +30% Expansion in EBITDA Margins

    Strong FCF generation

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    0

    150

    300

    450

    600

    750

    900

    2013 2014 2015 2016

    MV

    R M

    n

    EBITDA (LHS) EBITDA Margin (RHS)

    -20%

    -10%

    0%

    10%

    20%

    30%

    40%

    50%

    -200

    -100

    0

    100

    200

    300

    400

    500

    2013 2014 2015 2016

    MV

    R M

    n

    Profit After Tax (LHS) Profit After Tax Margin (RHS)

    0

    2

    4

    6

    8

    10

    0%

    20%

    40%

    60%

    80%

    100%

    2013 2014 2015 2016

    Tim

    es

    (x

    )

    Debt / Assets (LHS) Net Debt / EBITDA (RHS)

    0

    100

    200

    300

    400

    500

    600

    2013 2014 2015 2016

    MV

    R M

    n

    Expanding EBITDA margins

    Declining gearing and improved debt metrics

    Source: Company data

  • Ooredoo Maldives Investor Presentation 18

    Unwavering Commitment to the Maldives

    Employees Continuous training and development

    Global best in class employee engagement scores

    Society

    Introduced free Wi-Fi hangout areas across prime spots in Mal

    Launch of Ooredoo Smart Campus

    Signatory to UN Global Compact

    Joined GSMAs Connected Women Programme

    Partnered with local NGO Women on Boards

    Committed to Digital Maldives initiatives of the Government

    Continuously work towards connecting all communities to smart

    solutions

    Awarded the Fehi Faiy Award in 2013 for outstanding services

    to protect and preserve the environment

    Recognised with the Ran Laari Award in 2016 for being a

    consistent tax payer

    308

    29

    Maldivian Expatriates

    Employee

    Mix

  • Ooredoo Maldives Investor Presentation 19

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 20

    Successfully challenging competition

    Favourable Industry Dynamics to Drive Content Consumption

    Market is ripe for new wave of growth

    Demand for content driven by rising consumption of

    content as a form of recreation and the emergence of

    trends such as digital marketing by companies

    Augmented by high smartphone adoption and

    favourable population demographics (median age of 28

    in 2016)

    Data heavy categories such as audio and video to

    dominate data consumption going forward

    High mobile penetration levels and internet connectivity

    to drive IoT adoption in Maldives, particularly with

    increased spending on wearables and smart homes

    Scope for Telcos to be total solutions providers, with

    emphasis on enterprise solutions/ resort focused

    solutions, cloud services and other smart solutions

    Digital Maldives initiatives aimed at ubiquitous

    connectivity and smart cities to serve as catalyst

    0%

    10%

    20%

    30%

    40%

    50%

    150%

    170%

    190%

    210%

    230%

    250%

    2013 2014 2015 2016

    Mobile Penetration Rate (LHS) Smartphone Adoption Rate (RHS)

    High mobile penetration and smartphone use

    Exponential growth in content consumption

    0%

    10%

    20%

    30%

    40%

    50%

    0

    500

    1,000

    1,500

    2,000

    2,500

    2013 2014 2015 2016

    MV

    R M

    n

    OMPL (LHS) Incumbent Operator (LHS)

    OMPL YoY Growth (RHS) Incumbent YoY Growth (RHS)

    Source: CAM, GSMA Intelligence, Company data, Regulatory filings

  • Ooredoo Maldives Investor Presentation 21

    Value Accretive Strategies Leading to Margin Expansion

    Cost optimisation leading to margin expansion

    NaSCOM to boost data revenue via superior 4G+

    coverage

    Data consumption to be driven by demand for content

    and increasing smartphone usage

    Recently acquired ISP license expected to create high

    growth revenue stream via fixed broadband services

    Postpaid segment benefits from MNP

    Emergence of NaSCOM to reduce network costs

    leading to significant cost efficiencies

    Continuous benefits in optimising capex via group

    procurement strengths

    Multiple initiatives to further optimise costs and expand

    EBITDA and PAT margins

    Data leadership focused growth strategies

  • Ooredoo Maldives Investor Presentation 22

    Growing Cash Flows Available for Distribution

    Increasing FCF available for distribution

    Drop in forecast capex to sales ratio expected due to

    significant investments made over the past few years

    Average forecast capex to sales as per business plan

    to be approx. 17% compared to an average of 24%

    between 2013 and 2016

    FCF is forecasted to continue its growth trajectory

    driven by improving profitability and optimisation of

    capex

    Expected to result in attractive returns to shareholders

    with the ability to maintain high dividend payouts while

    investing for growth

    Moderate future capex requirements

  • Ooredoo Maldives Investor Presentation 23

    High and Growing Dividend Yield to Provide Attractive Returns

    -

    1.00

    2.00

    3.00

    4.00

    5.00

    2016A 2017F 2018F 2019F 2020F 2021F

    MV

    R

    9.2%

    13.6%

    12.3%

    15.9%14.9%

    10.9%

    Estimated based on a dividend payout ratio of 85%

    Dividend YieldDividend per Share

  • Ooredoo Maldives Investor Presentation 24

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 25

    Growth in Data Consumption to Drive Revenue

    Year Ended Dec 31 (MVR Mn unless otherwise stated) 2017F 2018F 2019F 2020F 2021F

    Mobile Revenue 1,728.1 1,901.3 2,052.6 2,203.0 2,350.4

    Non-Mobile Revenue 173.1 235.2 283.2 328.0 357.9

    Total Revenue 1,901.1 2,136.5 2,335.8 2,531.0 2,708.3

    YoY growth 17.9% 12.4% 9.3% 8.4% 7.0%

    Blended ARPU* (MVR) 245.9 265.6 285.0 306.9 326.5

    YoY growth 11.0% 8.0% 7.3% 7.7% 6.4%

    Total Subscribers (000s) 432 456 462 469 477

    * Blended ARPU is arrived at by dividing total revenue generated via subscribers by the total average number of subscribers as at the end of the period, and hence

    does not include revenue generated via other segments

    Blended ARPU for the forecast period is expected to be driven by growth in data consumption per subscriber

    Accordingly, Mobile Revenue is expected to grow at a CAGR of 9.3% on the back of the expansion in Blended

    ARPU, supplemented by subscriber growth via the benefits from MNP

    Non-Mobile Revenue is projected to be driven by an increase in revenue from fixed broadband services with the

    growth in fixed broadband subscribers, together with growth in revenue from enterprise solutions such as

    internet leased lines, workgroup solutions, cloud services etc.

    Source: NDBIB forecasts

  • Ooredoo Maldives Investor Presentation 26

    Capex Optimisation Supports Higher Dividend Payouts

    Year Ended Dec 31 (MVR Mn unless otherwise stated) 2017F 2018F 2019F 2020F 2021F

    Capital Expenditure 404.0 365.6 299.8 420.1 449.6

    Capex to Revenue 21.2% 17.1% 12.8% 16.6% 16.6%

    Dividends Estimated at 85% of Net Profit 481.9 544.8 605.0 659.6 704.3

    Payout ratio 85.0% 85.0% 85.0% 85.0% 85.0%

    Dividend Per Share (MVR)* 3.26 3.69 4.09 4.46 4.77

    Dividend Yield at the Offer Price 10.9% 12.3% 13.6% 14.9% 15.9%

    * Estimated based on a dividend payout ratio of 85%

    Capital expenditure forecasts are based on the Companys business plans and are expected to decline over time

    as a percentage of revenue after high build out levels over the past few years

    OMPL declared a dividend of MVR 406.5 Mn (MVR 2.75 per share) prior to the IPO, for FY 2016. This amounted to

    a dividend payout ratio of 85% and it has been assumed that the Company would continue to maintain the same

    dividend payout ratio over the forecast period

    Source: NDBIB forecasts

  • Ooredoo Maldives Investor Presentation 27

    Revenue growth EBITDA and EBITDA margins

    Expected Topline Growth Reflected in Future Margin Expansion

    PAT and PAT margins

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    2017F 2018F 2019F 2020F 2021F

    MV

    R M

    n

    48%

    49%

    50%

    51%

    52%

    0

    400

    800

    1,200

    1,600

    2017F 2018F 2019F 2020F 2021F

    MV

    R M

    n

    EBITDA (LHS) EBITDA margin (RHS)

    30%

    31%

    32%

    33%

    34%

    35%

    0

    200

    400

    600

    800

    1,000

    2017F 2018F 2019F 2020F 2021F

    MV

    R M

    n

    PAT (LHS) PAT margin (RHS)

    Source: NDBIB forecasts

  • Ooredoo Maldives Investor Presentation 28

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 29

    Discounted Cash Flow : Equity Valuation of MVR 4,799 Mn

    Free Cash Flow Based Valuation (MVR Mn unless otherwise stated) 2017F 2018F 2019F 2020F 2021F

    Profit Before Tax 692.2 786.1 875.0 955.4 1,023.1

    Add/(Less): Non-Cash Items 284.7 315.4 333.4 358.5 397.7

    Tax Paid (89.7) (103.8) (117.9) (131.3) (143.3)

    Operating Cash Flow Before WC Changes 887.2 997.6 1,090.5 1,182.7 1,277.4

    Changes in Working Capital Assets 12.2 6.9 4.7 1.0 (1.1)

    Capital Expenses (404.0) (365.6) (299.8) (420.1) (449.6)

    Free Cash Flow to the Firm 495.4 639.0 795.5 763.5 826.7

    Add: Terminal Value 6,563.9

    Free Cash Flow to the Firm With Terminal Value 495.4 639.0 795.5 763.5 7,390.6

    Present Value of Free Cash Flow to the Firm With Terminal Value 427.2 475.1 510.0 422.1 3,522.9

    WACC and Terminal Growth Rate

    Weighted Average Cost of Capital 15.97%

    Terminal Growth Rate 3.00%

    Enterprise Value 5,357.2

    Less: Net Debt / Minority Interest (558.6)

    Equity Value 4,798.7

    Value per Share of OMPL (MVR) 32.47

    Source: NDBIB forecasts

  • Ooredoo Maldives Investor Presentation 30

    Estimated Dividend Yield of 10.9% for FY 2017F at Offer Price

    The Offer Price at MVR 30.00 results in an estimated dividend yield of 10.9% for FY 2017F to IPO investors based on a dividend

    payout ratio of 85%, in line with the dividend declared for FY 2016

    OMPL expects to maintain the said payout ratio in the future resulting in growth in dividend yields, while meeting the

    investment needs of the Company to generate future growth

    Price Multiples / Dividend Yield at Offer Price

    Trailing P/E (x) 9.3

    Forward P/E (x) 7.8

    Trailing EV/EBITDA (x) 6.1

    Forward EV/EBITDA (x) 5.2

    Dividend Yield estimate for FY 2017F* (%) 10.9

    Offer Price

    Equity Value of OMPL (MVR Mn) 4,798.7

    Number of Shares in Issue (Mn) 147.8

    Value per Share of OMPL (MVR) 32.47

    IPO Discount 7.6%

    Offer Price (MVR) 30.00

    * Based on 85% payout of profit after tax for FY 2017F

  • Ooredoo Maldives Investor Presentation 31

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 32

    Modes of Payment

    Subscription Process

    OMPL Documents Available for Inspection

    Potential investors can subscribe through:

    Online application http://infinity.depository.mv

    Physical applications available at the Distribution and

    Collection Points including selected Ooredoo Experience

    Centres, Ooredoo Business Partners, Post Offices, SBI

    and MIB Bank Branches and Licensed Dealing

    Companies as listed in the Prospectus dated April 13,

    2017 available at http://ore.do/ipo-apply and

    stockexchange.mv/ipo/ompl/ipo_application_form.pdf and

    ndbib.com/downloads.php or at the same collection

    centers

    The Memorandum of Association

    Articles of Association

    Material contracts summarised in Section 9.6 of the

    Prospectus

    Past financial statements (audited financial statements of FY

    2016 and five year summary)

    Valuation report of OMPL prepared by NDB Investment

    Bank Limited

    Fairness Opinion given by Ernst & Young

    Material contracts are available for inspection subject to

    confidentiality requirements

    Applications are invited from the following categories of

    investors from the Maldives and outside of the Maldives:

    Individuals (applying for themselves or on behalf of third

    parties)

    Guardians applying on behalf of Minors i.e. those under

    18 years of age

    Companies, Cooperative Societies and Associations

    Partnerships

    Statutory Bodies, Funds and Other Entities

    Applicants can pay using the following methods;

    Cash

    Cheque

    Direct deposit to bank account

    m-Faisaa

    Debit / Credit card (online applications only)

    Telegraphic transfer (foreigners only)

    Who Can Apply

    How and Where to Apply?

  • Ooredoo Maldives Investor Presentation 33

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 34

    Group Structure Board of Directors

    Group Structure and Board of Directors

    Ooredoo Maldives Plc

    Wataniya International FZ-LCC

    National Mobile Telecommunication Company (Ooredoo

    Kuwait)

    Ooredoo International Investments LLC

    Ooredoo Q. S. C. (Qatar)

    65%

    WARF International (Private) Limited

    99.99%*

    100%

    92%

    100%

    Board of Directors Designation

    Mr. Khalid Ibrahim Al MahmoudChairman /

    Independent Director

    Mr. Vikram SinhaExecutive Director /

    Managing Director

    Dr. A. Hamid Mohd A Marafi Independent Director

    Mr. Ian Grant Fenton Independent Director

    Mr. Khalid Hassan Al-Hammadi Independent Director

    Uza. Dheena HussainNon-Executive Director /

    Company Secretary

    Mr. Najib KhanExecutive Director /

    Chief Executive Officer

    Mr. Ramanathan SivakumarExecutive Director /

    Chief Financial Officer

    * The balance shareholding of OMPL is between 11 other shareholders, holding 1 share each

  • Ooredoo Maldives Investor Presentation 35

    Forecast Summary Income Statement

    Year Ended Dec 31 (MVR Mn unless otherwise stated) 2016 2017F 2018F 2019F 2020F 2021F

    Revenue 1,613.2 1,901.1 2,136.5 2,335.8 2,531.0 2,708.3

    EBITDA 813.0 962.4 1,080.6 1,183.6 1,294.7 1,399.6

    EBIT 585.0 707.7 792.5 867.1 947.5 1,015.1

    Profit Before Tax 569.8 692.2 786.1 875.0 955.4 1,023.1

    Profit After Tax 491.3 588.3 668.2 743.8 812.1 869.6

    Share of Profits of Minority Interest (13.2) (21.4) (27.2) (32.1) (36.1) (41.1)

    Net Income Attributable to Equity Holders 478.1 566.9 640.9 711.7 776.0 828.6

    Year Ended Dec 31 (MVR Mn unless otherwise stated) 2016 2017F 2018F 2019F 2020F 2021F

    EBITDA margin 50.4% 50.6% 50.6% 50.7% 51.2% 51.7%

    EBIT margin 36.3% 37.2% 37.1% 37.1% 37.4% 37.5%

    Profit After Tax margin 30.5% 30.9% 31.3% 31.8% 32.1% 32.1%

    Earnings Per Share (MVR) 3.23 3.84 4.34 4.82 5.25 5.61

    Dividend Per Share * (MVR) 2.75 3.26 3.69 4.09 4.46 4.77

    Source: NDBIB forecasts FY 2016 Earnings Per Share and Dividend Per Share has been adjusted for the share consolidation carried out pre-IPO

    * Estimated based on a dividend payout ratio of 85%

  • Ooredoo Maldives Investor Presentation 36

    Forecast Statement of Financial Position

    Source: NDBIB forecasts FY 2016 Net Asset Value Per Share has been adjusted for the share consolidation carried out pre-IPO

    Year Ended Dec 31 (MVR Mn unless otherwise stated) 2016 2017F 2018F 2019F 2020F 2021F

    Non-Current Assets

    Property Plant and Equipment 1,070.8 1,228.4 1,312.4 1,301.3 1,378.9 1,448.5

    Other Non-Current Assets 142.9 134.5 128.0 122.5 117.7 113.3

    1,213.7 1,362.9 1,440.4 1,423.7 1,496.7 1,561.7

    Current Assets

    Cash and Financial Investments 1,045.9 1,027.1 726.4 985.0 1,151.5 1,326.5

    Other Current Assets 335.1 312.8 338.3 352.4 371.2 384.5

    1,381.0 1,339.9 1,064.6 1,337.4 1,522.7 1,711.0

    TOTAL ASSETS 2,594.7 2,702.8 2,505.0 2,761.1 3,019.4 3,272.8

    Total Equity 999.2 1,181.1 1,367.4 1,566.4 1,773.6 1,983.6

    Non-Current Liabilities

    Loans and Borrowings 450.1 - - - - -

    Other Non-Current Liabilities 18.2 18.2 18.2 18.2 18.2 18.2

    468.2 18.2 18.2 18.2 18.2 18.2

    Current Liabilities

    Loans and Borrowings 93.6 451.4 - - - -

    Other Current Liabilities 1,033.6 1,052.1 1,119.4 1,176.6 1,227.7 1,271.1

    1,127.2 1,503.5 1,119.4 1,176.6 1,227.7 1,271.1

    TOTAL EQUITY AND LIABILITIES 2,594.7 2,702.8 2,505.0 2,761.1 3,019.4 3,272.8

    Net Asset Value Per Share (MVR) 6.20 7.29 8.36 9.49 10.65 11.79

  • Ooredoo Maldives Investor Presentation 37

    Forecast Statement of Cash Flows

    Year Ended Dec 31 (MVR Mn unless otherwise stated) 2016 2017F 2018F 2019F 2020F 2021F

    Cash Flow from Operating Activities

    Profit Before Tax 569.8 692.2 786.1 875.0 955.4 1,023.1

    Add/Less: Non-Cash Items 252.5 284.7 315.4 333.4 358.5 397.7

    Net Change in Working Capital 32.1 12.2 6.9 4.7 1.0 (1.1)

    Cash From Operating Activities 854.4 989.1 1,108.4 1,213.2 1,314.9 1,419.6

    Interest Paid (0.4) (31.9) (14.4) - - -

    Tax Paid (8.5) (89.7) (103.8) (117.9) (131.3) (143.3)

    Net Cash Flow From Operating Activities 845.5 867.5 990.2 1,095.3 1,183.7 1,276.3

    Cash Flow From Investing Activities

    Net Capital Expenses (344.0) (404.0) (365.6) (299.8) (420.1) (449.6)

    Net Movement in Financial Assets (461.9) - 403.9 - - -

    Financial Income 11.4 16.4 8.0 8.0 8.0 8.0

    Net Cash Flow From Investing Activities (794.5) (387.5) 46.3 (291.8) (412.2) (441.6)

    Cash Flow From Financing Activities

    Net Movement in Loans & Borrowings (151.5) (92.3) (451.4) - - -

    Dividend Paid - (406.5) (481.9) (544.8) (605.0) (659.6)

    Net Cash Flow From Financing Activities (151.5) (498.8) (933.3) (544.8) (605.0) (659.6)

    Net Increase/(Decrease) in Cash & Cash Equivalent (100.5) (18.8) 103.2 258.6 166.5 175.1

    Cash & Cash Equivalent at the Beginning 363.8 263.3 244.5 347.7 606.3 772.8

    Cash & Cash Equivalent at the End 263.3 244.5 347.7 606.3 772.8 947.9

    Source: NDBIB forecasts Financial Income has been adjusted for under Cash Flow From Investing Activities

  • Ooredoo Maldives Investor Presentation 38

    1. The Offer

    2. The Company

    3. Outlook for the Market and the Company

    4. Key Assumptions and Financial Forecasts

    5. Valuation

    6. Subscription Process

    7. Annexures

    8. Abbreviations

    Contents

  • Ooredoo Maldives Investor Presentation 39

    Abbreviations

    ADX Abu Dhabi Securities Exchange

    ARPU Average Revenue Per User

    CAGR Compounded Annual Growth Rate

    EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation

    EV/EBITDA Enterprise Value to EBITDA

    FCF Free Cash Flow

    IoT Internet of Things

    ISP Internet Service Provider

    LSE London Stock Exchange

    MENA Middle East and North Africa

    MNP Mobile Number Portability

    NaSCOM Nationwide Submarine Cable of Ooredoo Maldives Plc

    P/E Price to Earnings

    PAT Profit After Tax

    ppt Percentage points

    QSE Qatar Stock Exchange

    TB Terabyte

    Telco Telecommunications Service Provider

    WACC Weighted Average Cost of Capital

  • Ooredoo Maldives Investor Presentation 40

    Thank You

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