Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2011 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, March 2012
Slide 1: Full Year 2011 Results
Full Year 2011 Results Emirates Integrated Telecommunications Company PJSC March 2012
Slide 2: Disclaimer
Disclaimer • Emirates Integrated Telecommunications Company PJSC (hereafter ”du”) is a telecommunication services provider in the UAE. • du cautions investors that certain statements contained within this document state management’s intentions, hopes, beliefs, expectations or predictions of the futu
Slide 3: Contents
Contents Slide Highlights of the Full Year & Fourth Quarter 4 Market Information 8 Fi Financial i l Summary S 10 gy & Outlook Strategy 23 3
Slide 4: 2011 Year In Review
2011 Year In Review Fifth year of sustained performance, further strengthened market position • R Revenue • 25.2% overall revenue growth achieved in 2011 • Mobile revenues remain key driver of growth (29% increase year on year) • Growth in net profit • Significant net profit before royalty growth at
Slide 5: Full Year Financial Highlights
Full Year Financial Highlights 48% increase in Net Profit before Royalty Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers* (AEDm) (millions) (AEDm) (AEDm) Royalty (AEDm) 38 Fold +25% +45% +48% Increase +20% 8 855 8,855 1 812 1,812 1 377 1,377 5.2 7,074 2,916 1,226 4.3 2,018 36
Slide 6: Q4 Financial Highlights
Q4 Financial Highlights Revenue up 18% to AED 2.4 billion Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers* (AEDm) (AEDm) royalty (AEDm) (AEDm) Net Additions (000s) +18% +26% 15% Outstanding +10% Growth 848 278.1 617 252.0 2,411 497 675 431 2,046 (5) Q4 '10 Q4’10 Q4 '11 Q4’11 Q
Slide 7: Contents
Contents Slide Highlights for the Full Year & Fourth Quarter 4 Market Information 8 Financial Summary 10 Strategy & Outlook 23 7
Slide 8: Market overview UAE
Market overview Strengthened g market position p – focus on ggainingg revenue share UAE Mobile Subscribers ‐ Market share quarterly evolution UAE Telecom Market ‐ Revenue share quarterly evolution 90% 80% 80% 70% 70% 71.3% 60% 54.0% 60% Etisalat 50% 50% 46.0% du 40% 40% 30% 30% * Etisalat 28.7% 20%
Slide 9: Contents
Contents Slide Highlights for the Full Year & Fourth Quarter 4 Market Information 8 Financial Summary 10 Strategy & Outlook 23 9
Slide 10: Revenues
Revenues Mobile business remains core driver of ggrowth Revenue Quarterly Revenue (AEDm) Revenue Quarter Change (AEDm) Year over year change +18% 310 65 5 2,411 2 046 2,046 ‐15 2,046 2,038 2,172 2,233 2,411 Q4 Q1 Q2 Q3 Q4 Q4’10 Q3 2010 TelMobile Fixed (Mobile) Tel (Fixed) Wholesale Broadcasting Q3 2
Slide 11: Revenue Drivers - Mobile
Revenue Drivers ‐ Mobile Significant increase in data as a proportion of mobile revenues Quarterly RevenueMobile Revenues (AEDm) ‐ mobile Year on Year Mobile Revenues (AEDm) +29% +20% 1,576 1,576 1,664 1,713 1,887 Q4 Q1 Q2 Q3 Q4 2,628 3,727 5,312 6,839 703 2011 FY’07 FY 07 FY’08 FY 08 FY’09 FY 09 FY
Slide 12: Revenue Drivers – Mobile
Revenue Drivers – Mobile Growingg strength g in p post‐paid p customer base Contribution to growth in mobile revenues (excluding inbound roaming and handset revenue) Minutes of use by customer segment Revenue ‐ mobile Total Minutes of Use ‐ Mobile Postpaid Prepaid 700 647 Postpaid 554 572 575 600 55
Slide 13: Revenue Drivers – Fixed
Revenue Drivers – Fixed Healthy growth in full year fixed revenues Quarterly Fixed Revenue (AEDm) Fixed line Yearsubscription on Year Fixed Line Subscribers (‘000) +20% 600 +11% 500 400 300 200 326 337 368 380 391 100 161 262 357 477 531 0 Q4 Q1 Q2 Q3 Q4 FY'07 FY'08 FY'09 FY'10 FY'11 2011 Year on Ye
Slide 14: Revenue Drivers
Revenue Drivers Wholesale & Broadcasting businesses remain steady Revenue Quarterly ‐ Wholesale Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) ‐14.6% +12.5% 40 40 39 42 45 103 85 102 99 88 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2011 2011 Year on Year Broadcast Revenues (AEDm) Year on Year Whol
Slide 15: Gross Margin
Gross Margin Healthyy growth g in gross g margin g both for the quarter q and the full year y Quarterly Gross Margin (AEDm) Year on Year Gross Margin (AEDm) +27% +28% 1,800 80.0% 6,000 6 000 90 0% 90.0% 1,600 5,500 75.0% 85.0% 1,400 5,000 68.90% 4,500 80.0% 1,200 66.87% 65.83% 70.0% 63.87% 64.60% 4,
Slide 16: Gross Margin By Segment
Gross Margin By Segment Mobile Gross Margin (AEDm) before handset subsidy Fixed Gross Margin (AEDm) Mobile gross margin before handset subsidy 1,600 Mobile gross margin % before handset subsidy 90.0% Fixed gross margin Fixed gross margin % 1,400 85.0% 300 100.0% * 1,200 80.0% 250 90.0% 74.24% 76.80%
Slide 17: Overheads
Overheads Control maintained Overheads Quarterly Overheads (AEDm) Total overheads % of revenue 900 50.0% Overheads as a Percentage of Revenue Q4 '10 Q4 '11 FY'10 FY'11 800 Manpower 14% 16% 17% 16% 45.0% 700 600 35.2% 40.0% Telecommunications license & related fees 2% 2% 2% 2% 500 34.1% 33.7% 30.8% 3
Slide 18: Profitability
Profitability Strong performance in both EBITDA and Net profit before Royalty Quarterly EBITDA (AEDm) Quarterly Net Profit before Royalty (AEDm) 900 +26% 70.0% 600 +15% 50.0% 800 60.0% 500 40.0% 700 600 50.0% 400 500 33.97% * 35.18% 21.06% 20.20% 21.88% 20.62% 30.0% 21.03%*20.0% 32.99% 30.45% 31.72%
Slide 19: Profitability
Profitability Excluding one‐off, Net Profit after Royalty increased year‐on‐year Net Profit after Royalty (AEDm) 2009 2010 2011 (AED) (AED) (AED) Net Profit before Royalty 528 million 1,226 million 1,812 million Provisioning for Net Profit at 50% 268 million * 21.03% 15% of net profit + Royalty rate
Slide 20: Capital Investments
Capital Investments Maintained spend p Quarterly Capex additions (AEDm) Year on Year Capex additions (AEDm) Capex Additions % of revenue 3,000 106% 120% 2,500 100% 2,000 80% 59.2% 1,500 45.5% 60% 375 477 213 270 330 1,000 40% Q4 Q1 Q2 Q3 Q4 17.6% 14.6% 500 20% 2011 1,635 2,338 2,427 1,246 1,291 ‐ 0%
Slide 21: Cash & Debt overview
Cash & Debt overview Strong free cash flow in 2011 Quarterly Free cash flow (AEDm) Year on Year Free cash flow (AEDm) Net Cash Operations Net Cash Investments FCF Net Cash Operations Net Cash Investments FCF 1,000 981 3,500 800 826 2,500 2,923 600 597 616 1,377 400 520 509 1,500 396 220 1,587 200 97
Slide 22: Contents
Contents Slide Highlights for the Full Year & Fourth Quarter 4 Market Information 8 Financial Summary 10 Strategy & Outlook 23 22
Slide 23: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Focus on profitable growth and increase of value share • Deliver superior segmented customer experience • Increased focus on mobile data and bundled offerings g • Introducing nation-wide competition in fixed-line services • Continued emphasis on operati
Slide 24: dluall Lay Liaig
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Emirates Integrated Telecommunications Company PJSC (du) — FY2011 Earnings Presentation on 6ix