Maroc Telecom Sa · CSEMA:IAM

Maroc Telecom Sa — H1 2019 Earnings Presentation

26 slides from Maroc Telecom Sa's earnings presentation, Jul 22, 2019

  1. Slide 1: 2019 Half-Year Results

    2019 HALF-YEAR RESULTS PRESENTATION TO FINANCIAL ANALYSTS July 22, 2019

  2. Slide 2: Highlights

    01 HIGHLIGHTS

  3. Slide 3: H1 2019 Highlights

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES H1 2019 Highlights GROWTH IN CONSOLIDATED MAINTAINING A HIGH EBITDA HIGHER NET INCOME REVENUE MARGIN GROUP SHARE +0.8%(1) 51.5%(2) +1.8%(2) +20% 11 +2.6% Morocco subsidiaries +25% Subsidiaries (1) GOOD PERFORMANCE OF MOBILE EXPANSION OF THE GROW

  4. Slide 4: Regulatory highlights

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Regulatory highlights In Morocco In subsidiaries Enactment of Act No. 121.12, amending and Attribution of a global Mobile license to Onatel supplementing Act 24-96, which establishes a and launch of 4G. general obligation to access and share inf

  5. Slide 5: Other highlights H1 2019

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Other highlights H1 2019  Acquisition of 100% of Tigo Chad : o Mobile customer base(1) : 3.7 million o Mobile market share (customer base)(1) : 51%  Sale of 8% of the state's shares : o Sale of 6% in the form of blocks of shares to Moroccan in

  6. Slide 6: Overview

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Overview Customer base growth Consolidated revenue growth(1) (million) (MAD billion) 17.9 17.8 60.4 62.7 8.1 7.8 -1.0% 38.2 39.8 +4.1% +3.9% +0.8% 10.6 10.7 +1.4% 22.2 22.9 +3.5% H1 2018 H1 2019 H1 2018 H1 2019 Morocco International Strong growt

  7. Slide 7: H1 2019 results above guidance announced

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES H1 2019 results above guidance announced 2019 Stable Stable CAPEX(3) of approximately Outlook(1) revenues EBITDA 15% of revenues H1 2019 ACHIEVEMENTS(1) +0.8% +5.1% (2) 10.7% 1) At constant scope and exchange rates 2) At constant exchange rates

  8. Slide 8: Business Review

    02 BUSINESS REVIEW

  9. Slide 9: Mobile

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Mobile Mobile customer base Mobile revenue ARPU (million) (MAD billion) (MAD/month) 18.9 19.5 6.8 7.0 2.2 +19.0% 1.8 +18.3% -13.4% +3.2% +2.6% +6.5% 57.5 +0.1% 57.5 17.1 17.4 +1.6% H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Prepaid

  10. Slide 10: Mobile Internet: Continued growth

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Mobile Internet: Continued growth Mobile Internet base Data traffic Data revenue (million) 11.1 10.1 1.9 +18.2% 1.6 +10.3% +37% +19.7% 8.5 9.3 +8.8% 55% 45%(2) H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Penetration rate(1) Of which

  11. Slide 11: Fixed-line and Internet: growth in Data revenue

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Fixed-line and Internet: growth in Data revenue Fixed-line & ADSL customer bases(1) Fixed-line & Internet revenue (million) (MAD billion) 4.7 4.6 -0.2% +3.6% 1.1 1.1 +0,0% 1.5 1.5 +4.5% 1.8 1.9 1.4 1.5 +6.2% 2.1 2.0 -3.6% H1 2018 H1 2019

  12. Slide 12: Revenue sustained by Data

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES International Revenue sustained by Data Mobile customer base Revenue(1) (million) (MAD billion) 37.8 +4.1% 39.4 8.1 -1.0% 7.8 H1 2018 H1 2019 H1 2018 H1 2019 Sustained growth in Mobile customer base (+4.1%) 25% growth in Mobile Data which compen

  13. Slide 13: Investments

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Investments CAPEX(1) Change in Mobile Data traffic (MAD billion) CAPEX/ 13% revenues 8% -36% +37% 1.4 0.9 55% Of which 45%(2) 4G traffic H1 2018 H1 2019 H1 2018 H1 2019 Sustained growth in Mobile Data traffic with a 4G population coverag

  14. Slide 14: Development of High Speed

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES International Development of High Speed CAPEX(1) Change in physical radio sites (MAD billion) CAPEX/ 21% revenue 13% 3G sites +32% 4G sites +170% -39%(2) 6,225 +7.0% 6,662 1.7 1.0 H1 2018 H1 2019 H1 2018 H1 2019 Expansion and densification of Ra

  15. Slide 15: Financial Review

    03 FINANCIAL REVIEW

  16. Slide 16: Improved results

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Improved results Change MAD million H1 2018 H1 2019 Change on a comparable basis(1) Increase in an already high EBITDA margin Revenues 10,562 10,713 1.4% 1.4% (In %) EBITDA 5,542 6,136 +10.7% +9.0% +2.1 pt +0.9 pt +1.8 pt Margin (%) 52.5

  17. Slide 17: International

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES International MAD million H1 2018 H1 2019 Change Change on a comparable Higher EBITDA Margin thanks to cost-control basis(1) efforts Revenues 8,146 7,824 -4.0% -1.0% (in %) EBITDA 3,318 3,273 -1.4% -1.3% +0.8 pt +1.2 pt -1.8 pt +1.0 pt Margin (%

  18. Slide 18: Consolidated results

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Maroc Telecom group Consolidated results MAD million H1 2018 H1 2019 Change Change on a comparable Adjusted net income, Group share basis(1) (MAD million) Revenues 17,939 17,844 -0.5% +0.8% +323 EBITDA 8,860 9,409 +6.2% +5.1% +13 -121 Margin (%)

  19. Slide 19: Consolidated Cash Flow

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Maroc Telecom Group Consolidated Cash Flow Change Net debt MAD million H1 2018 H1 2019 Change on a comparable (MAD million) basis(1) EBITDA 8,860 9,409 +6.2% +5.1% CAPEX 3,599 3,227 -10.3% -8.2% o/w licenses & 480 1,327 frequencies CAPEX / REVEN

  20. Slide 20: Appendices

    04 APPENDICES

  21. Slide 21: Macroeconomic environment

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 1 Macroeconomic environment Morocco(1) International(2) 6.0% 5.6% 5.5% 4.1% 3.0% 3.2% 2017 2018 2019e 2017 2018 2019e GDP Real GDP growth 2019 should confirm the recovery of the economy Sustained economic growth and the maintenance of g

  22. Slide 22: Transition from adjusted financial indicators to published financial indicators

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 2 Transition from adjusted financial indicators to published financial indicators H1 2018 H1 2019 MAD million Morocco International Group Morocco International Group Adjusted EBITA 3,679 1,861 5,540 4,170 1,692 5,862 Restructuring costs

  23. Slide 23: Impact of the adoption of IFRS 16

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 3 Impact of the adoption of IFRS 16 H1- 2019 (in MAD million) Morocco International Group EBITDA +98 +91 +189 Adjusted EBITA +6 +9 +15 Adjusted Net Income -10 Group share of adjusted Net Income -10 Adjusted CFFO +101 +154 +254 Net Debt

  24. Slide 24: Regulatory Environment in Morocco

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 4 Regulatory Environment in Morocco Mobile termination rates MAD/min 0.9232 INWI 0.7485 Orange Maroc 0.6601 Maroc Telecom 0.6238 0.5390 0.4679 0.4152 0.3390 0.2534 0.2943 0.2289 0.1399 0.1399 0.1399 0.2066 0.1238 0.1169 0.1169 January 1

  25. Slide 25: Current presence of the Maroc Telecom Group

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 5 Current presence of the Maroc Telecom Group CENTRAL AFRICA BURKINA FASO COTE D’IVOIRE MAURITANIA MOROCCO GABON Chad(1) NIGER TOGO BENIN MALI Acquisition year 2001 2006 2007 2009 2015 2015 2015 2015 2015 2019 Population (millions) 35.2

  26. Slide 26: Important legal notices

    HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Important legal notices Forward-looking statements This presentation contains forward looking statements and france.org). These documents are also available in French provisional items concerning the financial position, on our website (www.iam.m

Maroc Telecom — H1 2019 Earnings Presentation on 6ix