Slide 1: 2011 Annual Results
2011 ANNUAL RESULTS February 27, 2012
Slide 2: Highlights
HIGHLIGHTS Business review Financial results Outlook
Slide 3: Maroc Telecom's operating environment
Maroc Telecom’s operating environment Sustained economic growth in all geographic areas 5.0% 4.2% 4.0% MOROCCO Political stability and economic resilience thanks to 811 864 852 764 vigorous domestic demand and despite a difficult international context. 2010 2011e 2012e Value (MAD billion) GDP growth
Slide 4: Maroc Telecom's operating environment
Maroc Telecom’s operating environment Vigorous telecom markets Morocco: a highly competitive market • strong growth in customer base and consumption • steep price reductions 114% 1.12 -34% 0.74 102% 36.6 14.4% +39% 41 57 32.0 2010 2011 2010 2011 Mobile market (customers, Penetration Outgoing usage (
Slide 5: Regulatory environment in Morocco
Regulatory environment in Morocco Lower MTRs and maintenance of asymmetric tariffs Average MTR* (MAD/min) 0.9232 Inwi 0.7485 Méditel 0.6601 Maroc Telecom 0.6238 0.5390 0.4679 0.4152 0.3390 0.2534 0.2943 0.2288 0.2066 0.1517 * MTR is calculated as the average of off-peak and peak MTRs. 2011 Annual Re
Slide 6: Maroc Telecom in 2011
Maroc Telecom in 2011 Good operational resilience Customer-base growth (in millions) 12.2% growth in group customer base +12.2% 29.0 • Morocco: 25% growth in postpaid mobile 25.8 7.2 +39.2% 10.0 customer base, 101% in 3G Internet and 19% in DSL 18.6 +1.8% 18.9 • International: 41% growth in mobile c
Slide 7: 2011 Consolidated results
2011 Consolidated results Solid and consistent with objectives (MAD millions) 2011 10/11Change1 Revenues 30,837 -2.5% EBITA 12,375 -13.6% Margin % 40.1% -5.2pts Net earnings (Group share) 8,123 -14.8% Margin % 26.3% -3.8pts CFFO 11,647 -9.3% 1 Data for the year 2010 were adjusted after the identific
Slide 8: Proposed dividend of MAD 9.26 per share
2011 Dividend Very attractive dividend yield Proposed dividend of MAD 9.26 per share 100% of annual distributable earnings Dividend yield of 6,7%* 2011 Annual Results * Based on share price at February 24, 2012 , of MAD 139 8
Slide 9: Business review
Highlights BUSINESS REVIEW Financial results Outlook
Slide 10: Mobile in Morocco: 2011 highlights
Mobile in Morocco: 2011 highlights Prices lowered to stimulate consumption • Permanent Bonus for top-ups, from MAD 5 to MAD 30 • Launch of the Jawal Thaniya plan: a per-second rate of MAD 3 Prepaid mobile • New recharge: 1 hour for MAD 20 valid seven days, evenings, and WE • Heure Jawal promotion: 1
Slide 11: Mobile in Morocco: market changes
Mobile in Morocco: market changes Market share stabilized in a highly competitive environment Value mobile market share (%) (outgoing voice rev. share) • Maintaining strong leadership Customer base in the high-value segment 78% 72% 71% 70% 70% (61% market share for postpaid) 53% 50% 49% 47% 47% 2010
Slide 12: Mobile in Morocco: revenues and customer base
Mobile in Morocco: revenues and customer base Outgoing-call revenues stable Mobile customer base (in thousands) +1.4% • Stable prepaid customer base, 16,890 17,126 thanks to 5.5 pts churn decline to 817 +25% 1,019 24.8% • Strong growth of postpaid 16,106 customer base thanks to prepaid +0.2% custome
Slide 13: Mobile in Morocco: changes in usage and pricing
Mobile in Morocco: changes in usage and pricing Sharp drop in pricing partly offset by rise in consumption Usage; price per minute (min/month; MAD) • Sharp drop in price per minute 1.26 -25% implies a sharp increase in 0.94 usage • Maintaining price premium for Maroc Telecom service quality: 66 cove
Slide 14: Fixed line in Morocco: 2011 highlights
Fixed line in Morocco: 2011 highlights Continual enhancement of offers and contents • International calls charged as national calls: MAD 0.50 per min toward fixed Fixed line lines in western Europe and fixed lines and mobiles in North America • Promotion: 50% off on fixed-line, mobile, and internet
Slide 15: Fixed line in Morocco: revenues and customer base
Fixed line in Morocco: revenues and customer base Competition from mobile, solid DSL momentum Fixed-line and internet customer base (in thousands) • Fixed-line customer base driven 1,728 +6.0% 1,832 by the success of DSL offers 497 +19% 591 • DSL customer base +19% - bandwidth doubled 1,241 - launch
Slide 16: International: 2011 highlights
International: 2011 highlights Competitive environment stabilized 2010 2011 MAURITANIA 58% 59%* •New regulatory tax on incoming international traffic of €8c/min •Success of El Jawal offer: 1h on-net for UM 790 for four days •Launch of DSL offers ranging from 4 to 20 Mbits/sec 1,576 1,747 +10.9% 41%*
Slide 17: International: revenues and customer base
International: revenues and customer base Strong growth in customer base (+39%) and revenues (+8.9%) Mobile, Fixed MOBILE FIXED INTERNET and Internet customer base (in thousands) • Customer-base growth driven 10,023 by mobile (+41%) +39% 99 299 7,201 77 291 9,626 6,834 2010 2011 Revenues MALI GABON
Slide 18: International: increasing contribution to Group results
International Increasing contribution to Group results % Group revenues 2009 2010 2011 • Business growth increasing contribution from international 15.4% 17.6% 19.7% operations • 100% distribution of annual earnings from all entities % Group EBITDA 2009 2010 2011 • Commitment to strengthen our prese
Slide 19: Financial results
Highlights Business review FINANCIAL RESULTS Outlook
Slide 20: Consolidated results
Consolidated results Strong results (MAD millions) 20101 2011 %Change Revenues 31,617 30,837 -2.5% -2,5% Slight drop in revenues EBITDA 18,605 16,996 -8.6% Margin (%) 58.8% 55.1% 55,1% -3.7pts Margin stayed high EBITA 14,327 12,375 -13.6%2 Margin (%) 45.3% 40,1% 40.1% -5.2pts Net earnings (Group sha
Slide 21: Consolidated revenues
Consolidated revenues Slight drop in revenues due to lower revenues in Morocco Revenues MOROCCO INTERNATIONAL (MAD millions) ∆ Revenues ∆ Revenues 31,617* Mobile Fixed Line +494 30,837 -2.5% -341 ∆ Revenues 5,572* -3.6% -819 Mobile+Fixed Line -12.9% 6,066 +8.9% 26,191 25,030 -4.4% 2010 2011 Maroc Te
Slide 22: EBITDA
EBITDA Careful management of cost of sales and operating expenses despite higher usage and network expansion ∆ EBITDA Consolidated 18,605* Maroc Telecom -8.6% EBITDA +51 16,996 (MAD millions) 2,388* -1,659 ∆ EBITDA 2,439 +2.1% International -10.2% 16,217 14,557 2010 Maroc Telecom International 2011
Slide 23: Cash flow from operating activities
Cash flow from operating activities Steady CFFO thanks to careful management of capital expenditure (MAD millions) 20101 2011 %Change EBITDA 18,605 16,996 -8.6% Lower revenues and higher taxes and Morocco 16,217 14,557 -10.2% interconnection costs International 2,388 2,439 2.1% CAPEX 6,535 5,793 -11
Slide 24: Capital expenditures
Capital expenditures CAPEX under control despite significant growth in customer base Investsments (MAD millions) 6 535 -11.4% 5 793 • Completion of major International 2 281 Mobile coverage -16.2% programs. CAPEX still 1 911 represents 32% of total revenues. Morocco 4 253 • Limited investments in -8
Slide 25: Cash flow from operating activities
Cash flow from operating activities CFFO decline impacted by lower EBITDA in Morocco CFFO MOROCCO INTERNATIONAL (MADm) 12,836* ∆ EBITDA 535 +371 ∆ BFR -9.3% +210 +51 11,640 +372 ∆ EBITDA ∆ CAPEX 423 -21.0% ∆ WCR -534 -1,659 ∆ CAPEX 12,301 11,224 -8.8% 2010 2011 Maroc Telecom International 2011 Annua
Slide 26: Net debt
Net debt Group net debt under control Net Debt (MAD millions) 2010 CFFO Financial Tax Dividends to Dividends to Other 2011 expenses paid minorities equity holders - 335 - 4,173 +11,647 - 333 - 4,319 - 9,300 - 6,862 +59% -49 2011 Annual Results 26
Slide 27: Outlook
Highlights Business review Financial results OUTLOOK
Slide 28: 2012 regulatory changes
2012 regulatory changes New framework for mobile wholesale rates 1 •• Acceleration of MTR decrease for voice and SMS, starting January 1, 2012 Maintenance of rate asymmetry until 2013 2G and 3G mobile customer identification • All mobile customers must be identified by December 31, 2012 2 • New cust
Slide 29: 2012 outlook
2012 outlook 2012 guidelines: focus on cash generation Morocco International •Continued decline in pricing and rise in •Competitive environment stable consumption •Revenue growth in all countries •DSL growth •Cost optimization •Lower CAPEX •Significantly lower CAPEX 2012 outlook EBITA Operating marg
Slide 30: Appendices
Maroc APPENDICES Telecom 2
Slide 31: Morocco
Morocco MAD millions 2010 2011 %Change Revenues 26,191 25,030 -4.4% Mobile 19,649 18,935 -3.6% Services 18,512 18,182 -1.8% Equipment 1,137 753 -33.8% Fixed line 8,533 7,432 -12.9% Fixed-line data* 1,706 1,695 -0.6% Elimination -1,991 -1,337 EBITDA 16,217 14,557 -10.2% Margin (%) 61.9% 58.2% -3.8pts
Slide 32: Morocco
Morocco Change like Population 32.2 million In MAD millions - IFRS 2010 2011 for like GDP $101,8 billion Revenues 26,191 25,030 -4.4% Mobile 19,649 18,935 -3.6% Services 18,512 18,182 -1.8% +4.6% in 2011e Equipment 1,137 753 -33.8% Revenue per Fixed line and internet 8,533 7,432 -12.9% ≈ $4,940 in 2
Slide 33: International
International %Change MAD millions 2010(1) 2011 %Change like for like Revenues 5,572 6,066 8.9% 10.1% Mauritania 1,184 1,202 1.6% 8.0% Mobile services 1,013 1,033 2.0% 8.5% Burkina Faso(1) 1,764 1,733 -1.8% -2.6% Mobile services 1,292 1,330 3.0% 2.1% Gabon 1,044 1,047 0.2% -0.6% Mobile services 562
Slide 34: Mauritania
Mauritania Population 3.3 million Change in MAD millions – IFRS 2010 2011 like for like GDP $4 billion Revenues 1,184 1,202 +8.0% +5.1% in 2011 Mobile services 1,013 1,033 +8.5% Revenue per ≈ $2,212 in 2011 inhabitant (ppp) Inflation +6.2% in 2011 Change Mobile 2010 2011 like for like MAD 1 = MRO 34
Slide 35: Burkina Faso
Burkina Faso Population 15 million Change in MAD millions – IFRS 2010* 2011 like for like GDP $10.1 billion Revenues 1,764 1,733 -2.6% +4.9% in 2011 Mobile services 1,292 1,330 +2.1% Revenue per * Restated 2010 data $1,456 in 2011 inhabitant (ppp) Inflation +1.9% in 2011 Change Mobile 2010 2011 like
Slide 36: Gabon
Gabon Population 1.5 million Change in MAD millions – IFRS 2010 2011 like for like GDP $16.7 billion Revenues 1,044 1,047 -0.6% +5.6% in 2011 Mobile services 562 492 -13.1% Revenue per $16,021 in 2011 inhabitant (ppp) Inflation +2.3% in 2011 Change Mobile 2010 2011 like for like MAD 1 = FCFA 58.27 C
Slide 37: Mali
Mali Population 13.8 millions Change En MAD millions – IFRS 2010 2011 like for like GDP $11 billion Revenues 1,575 2,123 33.7% +5.3% en 2011 Mobile services 1,244 1,767 +40.8% Revenue per $1,328 en 2011 inhabitant (ppp) Inflation +2.8% en 2011 Change Mobile 2010 2011 like for like MAD 1 = FCFA 58.27