Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain Group — H1 2013 Earnings Presentation
28 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, Nov 11, 2013
Slide 1: Zain Group Financial Results Presentation H1-2013
ZAIN GROUP Financial Results Presentation H1-2013
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 H1-2013 44.4 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 $ 2.2 13.9 BILLION MILLION PEOPLE UNDER LICENSE MILLION CUSTOMERS IN 348.7 IN REVENUES MILLION + I
Slide 5: The World of Zain
4 The World of Zain As of H1-2013 Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $855m Customers: 2.0 m Customers: 13.9 m Prepaid: 86% Prepaid: 99% Market Share: 48% Ownership: 100% Revenues: $585m Customers: 2.4 m Ownership: 96.52% Prepaid: 71% Revenues: $250m Market Share
Slide 6: Key Performance Indicators H1-2013
5 Key Performance Indicators H1-2013 Customers Revenues +7% (9%) USD Million 44,392 Thousand 41,391 2,384 2,159 H1-2012 H1-2013 H1-2012 H1-2013 EBITDA / Margin Net Income / EPS (13%) (22%) 1,074 USD Million USD Million 935 510 397 0.13 45.1% 0.10 43.3% H1-2012 H1-2013 H1-2012 H1-2013 EBITDA EBITDA m
Slide 7: Key Performance Indicators Q2-2013
5 Key Performance Indicators Q2-2013 Customers Revenues +7% (9%) USD Million 44,392 1,212 Thousand 41,391 1,100 Q2-2012 Q2-2013 Q2-2012 Q2-2013 EBITDA / Margin Net Income / EPS (8%) (16%) 531 USD Million 487 255 USD Million 44.3% 213 43.9% 0.07 0.05 Q2-2012 Q2-2013 Q2-2012 Q2-2013 EBITDA EBITDA marg
Slide 8: Key Performance Indicators: Capex
6 Key Performance Indicators Capex and Capex / Revenue +2% +32% USD Million 800 596 608 383 18% 13% 18% 12% 2011 2012 H1-2013 2013 B * Capex Capex / Revenues * B = Zain Group 2013 Budget
Slide 9: Key Performance Indicators as of 30/6/2013
7 Key Performance Indicators as of 30/6/2013 Total Debt Net debt & net debt / EBITDA 39% 36% USD Million 1,590 USD Million 2,815 2,025 1,165 1,547 1,394 0.85 1,268 0.57 631 H1-2012 H1-2013 H1-2012 H1-2013 Net debt Net debt/EBITDA Short Term Long Term • Net Debt = Total interest bearing debts (exclud
Slide 10: Zain Dividends
8 Zain Dividends Dividend Payout Ratio Dividend Yield (%) 274% 15% 8% 86% 7% 77% * 2010 2011 2012 * 2010 2011 2012 Dividend Per Share (KWD) Cash Dividend (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 dividends of
Slide 11: EBITDA Margins
9 EBITDA Margins As of H1-2013 48.2% Group EBITDA margin 43.3% 42.7% 42.5% 40.0% 36.5% 13.1% 3.2% Kuwait Republic of Sudan Jordan Iraq Bahrain KSA South Sudan
Slide 12: Penetration Rates
10 Penetration Rates As of H1-2013 213% 149% 139% 103% 83% 63% 37% Kuwait Bahrain KSA Jordan Iraq Republic of Sudan South Sudan * Source: World Cellular Information Services (WCIS).
Slide 13: Our Customers
11 Our Customers As of H1-2013 Customers Contribution Customers Growth H1-13 vs. H1-12 36% Lebanon South Sudan 4% 2% KSA 19% 27% Republic Group customer growth 7% of Sudan 28% 21% Bahrain 2% 12% 11% Jordan 8% 9% 5% Iraq Kuwait (2%) 31% 5% Bahrain South Jordan KSA Kuwait Iraq Lebanon Republic Sudan o
Slide 14: Blended ARPU and Revenue Contribution
12 Blended ARPU and Revenue Contribution Blended ARPU- As of H1-2013 Revenue Contribution- As of H1-2013 Bahrain 5% $39.4 Kuwait 27% $23.3 Iraq 40% $18.8 Jordan $10.4 $10.2 12% $7.7 $4.2 South Sudan Republic of Sudan 1% 15% Kuwait Bahrain KSA Jordan Iraq South Republic of Sudan Sudan
Slide 15: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 16: State of Kuwait
14 State of Kuwait Key Statistics – June 2013 Market Share Zain by Customers 39% 2.7 m $43,800 Population GDP/Capita Financials 305 213% 1983 298 Penetration Year of launch USD Million 146 152 2.4 m 100% Viva 28% 100 102 Customers Ownership Wataniya 33% $39 Technology : 4G LTE Nationwide Q2-2013 Q2-
Slide 17: Republic of Iraq
15 Republic of Iraq Key Statistics – June 2013 Market Share by Customers Zain 49% 31.9 m $4,600 Financials Population GDP/Capita 83% 2003 Korek 434 432 Penetration Year of acquisition 15% USD Million 13.9 m 76% 180 190 107 Customers Ownership 86 Asia Cell 36% $10 Technology : 2G Q2-2013 Q2-2012 ARPU
Slide 18: Republic of Sudan
16 Republic of Sudan Market Share by Customers Key Statistics – June 2013 Zain 43% 34.8 m $2,400 Financials Population GDP/Capita 912 270 756 67% 2006 Penetration Year of full SDG Million 164 USD Million acquisition MTN 389 26% 100 280 264 90 12.5 m 100% Sudani 70 36 198 Customers Ownership 31% Tech
Slide 19: Kingdom of Saudi Arabia
17 Kingdom of Saudi Arabia Key Statistics – June 2013 Market Share by Customers Zain STC 15% 45% 26.9 m $25,700 Financials Population GDP/Capita 470 139% 2008 434 Penetration Year of acquisition Mobily 40% USD Million 8.3 m 37% Technology : 4G LTE 69 75 Customers Number of sites : 5,282 Ownership Co
Slide 20: Kingdom of Jordan
18 Kingdom of Jordan Key Statistics – June 2013 Market Share by Customers Zain 39% Financials 6.5 m $6,000 Population GDP/Capita 129 130 103% 2003 Penetration Year of acquisition USD Million Umniah 26% 55 58 32 31 3.8 m 96.52% Customers Ownership Orange 35% Q2-2013 Q2-2012 $10 Technology : 3G Revenu
Slide 21: Kingdom of Bahrain
19 Kingdom of Bahrain Key Statistics – June 2013 1.2 m $28,200 Financials Population GDP/Capita Technology : 4G LTE 52 2003 Number of sites : 335 51 149% Penetration Year of launch Coverage : 100% USD Million License : expires in 2033 19 18 748 56.25% 4 5 Thousand Ownership Customers Q2-2013 Q2-2012
Slide 22: Republic of South Sudan
20 Republic of South Sudan Key Statistics – June 2013 Market Share by Customers Zain 41% 11.1 m $900 Financials Population GDP/Capita 18 37% 2006 Penetration Year of full MTN 10 acquisition USD Million 21% 0 760 100% Thousand Ownership 0 -1 Gemtel Vivacell Customers 4% 34% -7 $8 Q2-2013 Q2-2012 ARPU
Slide 23: Lebanon
21 Lebanon Key Statistics – June 2013 Contribution to Group total 4.1 m $15,900 Population: 3% Population GDP/Capita Customers: 4% 102% 2004 Mobile Year of acquisition Customer YOY Growth: 5% Penetration Technology : 3G 2.0 m MC Coverage : 99% Customers Ownership License : Management Contract until
Slide 24: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 25: Balance Sheet
23 Balance Sheet 30 June 31 December 30 June 30 June 31 December 30 June 2013 2012 2012 2013 2013 2012 KD ’000 KD ’000 ASSETS LIABILITIES AND EQUITY Trade and other payables 546,733 535,114 459,625 Cash and bank balances 349,217 302,609 240,253 Due to banks 361,366 270,656 176,501 Total Current liab
Slide 26: Income Statement
24 Income Statement 30-Jun-13 30-Jun-12 30 June 30 June KD’000 2013 2012 Continuing operations KD ’000 Revenue 611,940 663,535 Attributable to: Cost of sales (172,885) (184,847) Gross profit 439,055 478,688 Shareholders of the Parent Company 112,649 141,895 Operating and administrative expenses (170
Slide 27: Cash flow statement
25 Cash flow statement 30 June 30 June 30 June 30 June 2013 2012 2013 2012 KD ‘000 KD ‘000 Cash flows from investing activities Cash flows from operating activities Deposits maturing after three months and bank Profit for the period before income tax 130,588 189,522 (3,442) 2,853 balances blocked Ad
Slide 28: Q&A
Q&A 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 444