Growing market leadership

Dear Shareholders,
New digital technologies provide customers – whether individuals or companies – the ability to realise their ambitions and take advantage of the new opportunities of the digital world, in both emerging and developed markets. Digital empowerment is the future, and Ooredoo is committed to making the necessary investments that will contribute to providing modern networks to help our customers succeed and grow. Through our strategy, Ooredoo supports the introduction and further development of innovations that enrich people’s digital lives.

Our positive momentum was evident across our footprint: in Qatar, where we launched the first commercially available 5G network in the world and became the first telecom operator to test self-driving 5G-connected aerial taxis. It was present in Oman, where we launched pre-5G with a major home broadband enrichment programme. Digital transformation took hold in Algeria, where we became the first operator to roll out a 4G network in all provinces of the country, and Palestine, where we launched 3G services for the first time in the West Bank.

As part of our Group’s vision, Ooredoo is digitising its companies and has introduced initiatives to enable it to use its resources more efficiently, as we transform our internal procedures into digital procedures. These changes enable our companies to streamline their business processes and implement their objectives more effectively. Despite our progress in the digital sphere, the structural changes in our industry that have impacted all operators affected Ooredoo and increased the pressure on voice revenue. This was exacerbated in 2018 by general foreign exchange weakness of currencies in emerging markets.

Therefore, we have made leadership changes where appropriate and pushed cost optimisation to ensure good returns for our shareholders.

Ongoing investment in digital innovation

Ooredoo continues to build a strong network foundation for our customers. In each of our markets, we enhanced our efforts to be the leader in data services, enabling our customers to live better digital lives. These efforts delivered results both in terms of industry-changing mobile technology and mass market services, connecting more people and enabling them to access all the benefits of the internet.

Pursuing a prudent path to stability

2018 was a year of consolidation for Ooredoo Group as we continued to ensure we have the best possible people heading up our operations and continued to train and develop the next generation of leaders.

In January, we appointed a new Chief Executive Officer at Ooredoo Myanmar, and in October a new Chief Executive Officer at Indosat Ooredoo. In both cases, we have appointed experienced executives with a deep understanding of the needs of their respective markets, and the dedication and drive to take performance to the next level.

We continue to attract, recruit and retain the strongest young talent in each of our operations, ensuring we have the right personnel on board both now and for the future. Our broad range of development programmes, designed to ensure these young leaders receive the best in training and mentoring, has been expanded in 2018.

Reflecting growing confidence in our position, Ooredoo’s S&P Global rating was revised to stable from negative in December and our A-/A-2 issuer credit ratings were affirmed. The change was prompted by the revision of the outlook for the State of Qatar to stable, due to its macroeconomic resilience.

Dividends

In line with our stated strategy, the Board is pleased to recommend to the General Assembly the distribution of a cash dividend of 25% of the nominal share value, equivalent to QR 2.5 per share.

The Board and Governance

In closing, 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 his inspired leadership and unwavering efforts to support Qatar’s progress.

His Highness is the driving force for Qatar’s growth into an advanced society capable of sustaining its development and providing a high standard of living for its people, through human, social, economic and environmental development. As a proud Qatari company, Ooredoo is fully committed to supporting this national vision.

We are fortunate to have the support, guidance, and encouragement of our Board Members. The Board has been the backbone of our organisation, supporting our progress and development in 2018, and enabling us to maintain our position as a market leader. I would like to thank the Board members for their contribution to Ooredoo’s success in 2018.

I would also like to extend my thanks to our customers, our employees and our shareholders, who have continued to support our development and inspire the evolution of this company. “Ooredoo continues to build a strong network foundation for our customers. In each of our markets, we continued our efforts to be the leader in data services, enabling customers to live better digital lives.” H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani Chairman

We firmly believe Ooredoo will continue to excel and take the lead as the digital future becomes a reality. Working hand-in-hand with our stakeholders, we will deliver the very best in digital enablement.

Abdulla Bin Mohammed Bin Saud Al Thani
Chairman
13 February 2019