Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain Group — Q1 2013 Earnings Presentation
27 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, May 2013
Slide 1: Zain Group Financial Results Presentation Q1-2013
ZAIN GROUP Financial Results Presentation Q1-2013
Slide 2: Disclaimer
1 Disclaimer Mobile Telecommunications Company KSC “Zain Group” has prepared this presentation to the best of its abilities, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions, estimates,
Slide 3: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 4: Zain at a glance
3 Zain at a glance As of Q1-2013 44.1 12.5 4G 222 MILLION MILLION CUSTOMERS LONG TERM TB OF DAILY ACTIVE IN REPUBLIC EVOLUTION (LTE) DATA USAGE CUSTOMERS OF SUDAN NETWORK IN SAUDI ARABIA AND 108 KUWAIT $ 1.06 13.6 BILLION MILLION PEOPLE UNDER LICENSE MILLION CUSTOMERS IN 348.7 IN REVENUES MILLION +
Slide 5: Key Milestones
4 Key Milestones • WON BID FOR 3RD GSM LICENSE IN KSA • REBRANDED TO ZAIN ALONG WITH 4 OPERATIONS • ACQUIRED • ACQUIRED 15 FASTLINK YEAR IN JORDAN NATIONWIDE INVESTED • AWARDED LICENSE IN IRAQ IN 31% OF 2ND GSM • ACQUIRED MOROCCAN LICENSE IN CELTEL IN 13 •ACQUIRED 75% OPERATOR BAHRAIN AFRICAN OF WES
Slide 6: The World of Zain
5 The World of Zain As of Q1-2013 Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $422 m Customers: 2.0 m Customers: 13.6 m Prepaid: 86% Prepaid: 99% Market Share: 49% Ownership: 100% Revenues: $287 m Customers: 2.4 m Ownership: 96.52% Prepaid: 71% Revenues: $121 m Market Sh
Slide 7: Key Performance Indicators
6 Key Performance Indicators Customers Revenues +10% (10%) USD Million 44,139 Thousand 1,172 40,255 1,059 Q1-2012 Q1-2013 Q1-2012 Q1-2013 EBITDA / Margin Net Income / EPS (28%) (17%) USD Million USD Million 543 255 449 184 46.3% 0.07 0.05 42.4% Q1-2012 Q1-2013 Q1-2012 Q1-2013 EBITDA EBITDA margin Ne
Slide 8: Key Performance Indicators as of 31/3/2013
7 Key Performance Indicators as of 31/3/2013 Total Debt Net debt & net debt / EBITDA 33% 474% USD Million USD Million 2,302 1,188 477 1,734 1,197 1,825 207 0.67 0.1 537 Q1-2012 Q1-2013 Q1-2012 Q1-2013 Net debt Net debt/EBITDA Short Term Long Term • Net Debt = Total interest bearing debts (excluding
Slide 9: Zain Dividends
8 Zain Dividends Dividends Payout Ratio Dividends Yield (%) 274% 15% 8% 86% 7% 77% * 2010 2011 2012 * 2010 2011 2012 Dividends Per Share (KWD) Cash Dividends (USD m) (68%) (23%) 2,761 0.200 0.065 908 0.050 685 * 2010 2011 2012 * 2010 2011 2012 * Zain Group distributed normal and exceptional dividend
Slide 10: EBITDA Margins
9 EBITDA Margins 47.2% 42.6% Group EBITDA margin 42.4% 42.0% 38.5% 36.4% 11.6% 5.2% Kuwait Republic of Sudan Jordan Iraq Bahrain KSA South Sudan
Slide 11: Penetration Rates
10 Penetration Rates 186% 179% 171% 136% 86% 67% 22% Kuwait KSA Jordan Bahrain Iraq Republic of Sudan South Sudan * Source: WCIS.
Slide 12: Our Customers
11 Our Customers Customers Contribution Customers Growth Q1-13 vs. Q1-12 Lebanon South Sudan 44% 5% 2% KSA 19% Republic 32% of Sudan 30% 28% 27% Bahrain 2% Jordan 8% 9% 9% 8% Iraq Kuwait 31% 5% (6%) South KSA Bahrain Jordan Iraq Kuwait Lebanon Republic Sudan of Sudan
Slide 13: Blended ARPU and Revenue Contribution
12 Blended ARPU and Revenue Contribution Blended ARPU Revenue Contribution Bahrain 5% $39 Kuwait 27% Iraq $24 40% $18 Jordan $10 $10 12% $7 $4 South Sudan Republic of Sudan 1% 15% Kuwait Bahrain KSA Jordan Iraq South Republic of Sudan Sudan
Slide 14: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 15: Kuwait
14 Kuwait Key Statistics – March 2013 Market Share by Customers Zain 39% 2.7 m $43,800 Contribution to Group total Population GDP/Capita Population: 2% 186% 1983 Customers: 5% Penetration Year of launch Revenues: 27% Customer YOY Growth: 9% 2.4 m 100% Technology : 4G LTE Viva 27% Customers Ownership
Slide 16: Iraq
15 Iraq Key Statistics – March 2013 Market Share by Customers Zain 49% 31.9 m $4,600 Contribution to Group total Population GDP/Capita Population: 27% 86% 2003 Customers: 31% Penetration Year of acquisition Revenues: 40% Customer YOY Growth: 9% 13.6 m 76% Technology : 2G Ownership Korek Customers 14
Slide 17: Republic of Sudan
16 Republic of Sudan Key Statistics – March 2013 Market Share by Customers Zain 52% 34.8 m $2,400 Contribution to Group total Population GDP/Capita Population: 29% 67% 2006 Customers: 28% Penetration Year of full Revenues: 15% acquisition Customer YOY Growth: (6%) 12.5 m 100% Technology : 3G Custome
Slide 18: Kingdom of Saudi Arabia
17 Kingdom of Saudi Arabia Key Statistics – March 2013 Market Share by Customers Zain 13% 26.9 m $25,700 Contribution to Group total Population GDP/Capita Population: 23% 179% 2008 Customers: 19% Penetration Year of acquisition Customer YOY Growth: 32% STC 8.6 m 37% Technology : 4G LTE 47% Customers
Slide 19: Jordan
18 Jordan Key Statistics – March 2013 Market Share by Customers Zain 38% 6.5 m $6,000 Contribution to Group total Population GDP/Capita Population: 5% 171% 2003 Customers: 8% Penetration Year of acquisition Revenues: 12% Customer YOY Growth: 27% 3.7 m 96.52% Technology : 3G Umniah 26% Customers Owne
Slide 20: Bahrain
19 Bahrain Key Statistics – March 2013 1.2 m $28,200 Contribution to Group total Population GDP/Capita Population: 1% 2003 Customers: 2% 136% Revenues: 5% Penetration Year of launch Customer YOY Growth: 30% 686 56.25% Technology : 4G LTE Thousand Ownership Number of sites : 335 Customers Coverage :
Slide 21: South Sudan
20 South Sudan Key Statistics – March 2013 Market Share by Customers Zain 40% 11.1 m $900 Contribution to Group total Population GDP/Capita Population: 9% 22% 2006 Customers: 2% Penetration Year of full Revenues: 1% acquisition Customer YOY Growth: 44% MTN 720 100% Technology : 3G 22% Thousand Owner
Slide 22: Lebanon
21 Lebanon Key Statistics – March 2013 Contribution to Group total 4.1 m $15,900 Population: 3% Population GDP/Capita Customers: 5% 95% 2004 Mobile Year of acquisition Customer YOY Growth: 8% Penetration Technology : 3G 2.0 m MC Coverage : 99% Customers Ownership License : Management Contract until
Slide 23: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 24: Balance Sheet
23 Balance Sheet 31 March 31 December 31 March 31 March 31 December 31 March 2013 2012 2012 2013 2013 2012 KD ’000 KD ’000 ASSETS LIABILITIES AND EQUITY Trade and other payables 525,005 535,114 783,375 Cash and bank balances 317,298 302,609 424,004 Due to banks 519,813 270,656 149,121 Total Current
Slide 25: Income Statement
24 Income Statement 31 March 31 March 31 March 31 March 2013 2012 2013 2012 KD’000 KD ’000 Continuing operations Attributable to: Revenue 299,007 325,729 Shareholders of the Parent Company 52,001 70,919 Cost of sales (84,722) (87,295) Non-controlling interests 4,936 6,761 Gross profit 214,285 238,43
Slide 26: Cash flow statement
25 Cash flow statement 31 March 31 March 31 March 31 March 2013 2012 2013 2012 KD ‘000 KD ‘000 Cash flows from operating activities Cash flows from investing activities Deposits maturing after three months and bank (2,946) (15,065) Profit for the period before income tax 64,065 92,387 balances block
Slide 27: For more information please contact Zain Group Investor Relations team
FOR MORE INFORMATION PLEASE CONTACT ZAIN GROUP INVESTOR RELATIONS TEAM IR@ZAIN.COM Note: All population, GDP per Capita and Mobile Penetration figures are sourced from EIU, WCIS and CIA Fact Book. Zain Group Head Office Building P.O. Box 22244, 13083 Safat, Kuwait City, Kuwait Tel: +965 2464 4444 Fa