22 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Jul 27, 2017
Slide 1: Etisalat Group 2Q 2017 Results Presentation
Etisalat Group 2Q 2017 Results Presentation 27 July 2017 Abu Dhabi, UAE
Slide 2: 1. Business Overview
1. Business Overview Saleh Abdulla Alabdooli Chief Executive Officer Etisalat Group
Slide 3: Etisalat Group Financial Highlights
Etisalat Group Financial Highlights AED Million Q2 2017 Growth Growth H1 2017 Growth YoY% QoQ% YoY% Revenue 12,831 -4% +3% 25,289 -3% EBITDA 6,599 -3% +4% 12,950 -2% EBITDA Margin 51% 0pp +0PP 51% +1pp Net profit 1,970 -15% -6% 4,061 -6% Net profit Margin 15% -2pp -1pp 16% 0pp Capex 2,247 +25% +45%
Slide 4: Q2 2017 Highlights
Q2 2017 Highlights Topline pressure attributed to international operations — Sustained positive growth in domestic market Financial Stable EBITDA margin and improved cash flow generation Highlights Interim dividends of 40 fils per share On track to deliver 2017 financial guidance Maintaine
Slide 5: 2. Financial Overview
2. Financial Overview Serkan Okandan Chief Financial Officer Etisalat Group
Slide 6: Etisalat Group Financial Highlights
Etisalat Group Financial Highlights Revenue Breakdown Q2 2017 (AED m) EBITDA Breakdown Q2 2017 (AED m) 24% 4% 24% 3% 8% 5% 12.8 3% 6.6 2% bn bn 61% 65% UAE MT Egypt Pakistan Others UAE MT Egypt Pakistan Others -4% -3% YoY Growth YoY Growth UAE +1% UAE -1% MT Group (LC -3%) -5% MT Group (LC -1%) -2%
Slide 7: Int'l Operations Financial Highlights Q2 2017
Int’l Operations Financial Highlights Q2 2017 Revenue (AED m)/EBITDA (AED m) / Revenue & EBITDA (AED m) / EBITDA Margin (%) EBITDA Margin (%) / YoY Growth % YoY Growth Growth in Maroc Telecom Group 2Q 2017 MAD in AED 46% 45% 45% Revenue 3,051 -5% -3% 63% EBITDA 1,598 -2% -1% 5,458 EBITDA Margin 52%
Slide 8: Group Revenue
Group Revenue Revenue (AED m) and YoY growth (%) Sources of Revenue growth – Q2’17 vs Q2’16 (AED m) 13,326 104 12,458 12,831 34 12,831 13,326 0 150 484 2% -3% -4% Q2'16 Q1'17 Q2'17 Q2'16 UAE MT Group Egypt Pakistan Others Q2'17 Revenue YoY growth % Revenue by Cluster (Q2’17) Highlights Domestic vs.
Slide 9: Group EBITDA
Group EBITDA EBITDA (AED m) & EBITDA Margin Sources of EBITDA growth – Q2’17 vs Q2’16 (AED m) 6,799 6,599 6,351 6,799 122 6,599 43 33 51% 51% 51% 217 29 Q2'16 Q1'17 Q2'17 Q2'16 UAE MT Group Egypt Pakistan Others Q2'17 EBITDA EBITDA Margin EBITDA by Cluster (Q2’17) Highlights Domestic vs. Int’l Inter
Slide 10: Group CAPEX
Group CAPEX CAPEX (AED m) & CAPEX/Revenue Ratio (%) Sources of Capex growth – Q2’17 vs Q2’16 (AED m) 489 57 18 27 2,247 2,247 1,795 138 1,795 1,553 18% 13% 12% Q2'16 Q1'17 Q2'17 Q2'16 UAE MT Group Egypt Pakistan Others Q2'17 CAPEX CAPEX/Revenue CAPEX by Cluster (Q2’17) Highlights Domestic vs. Int’l
Slide 11: Group Balance Sheet & Cash Flows
Group Balance Sheet & Cash Flows Balance Sheet (AED m) Dec-16 Jun-17 Investment Grade Credit Ratings Cash & bank Balances 23,676 23,048 Total Assets 122,546 124,532 AA-/Stable Total Debt 22,279 25,844 Net Cash / (Debt) 1,398 (2,796) Aa3/Stable Total Equity 55,915 56,481 Net cash position (AED m) Jun
Slide 12: Debt Profile: Diversified debt portfolio
Debt Profile: Diversified debt portfolio Borrowings by Operation Q2 2017 (AED m) Borrowings by Currency Q2 2017 15,570 USD 29% MAD 5,891 16% Euro 2,962 39% 1,421 Others 16% Group MT Group Egypt Pakistan Debt by Source Q2 2017 (AED m) Repayment Schedule Q2 2017 (AED m) 15,018 7,697 7,676 6,045 9,861
Slide 13: Group Dividends: Proposed dividend for H1 2017 of 40 fils per share
Group Dividends: Proposed dividend for H1 2017 of AED 40 fils per share Interim Dividends and Dividends Per Share Interim Dividend Payout Ratio 93.7% 3.48 3.48 3.48 85.7% 80.1% 80.6% 2.77 2.77 67.2% 0.35 0.35 0.40 0.40 0.40 2013 2014 2015 2016 2017 H1'13 H1'14 H1'15 H1'16 H1'17 Interim Dividends (AE
Slide 14: Country by Country Financial Review
Country by Country Financial Review 14
Slide 15: UAE: Maintained growth momentum with improved profitability
UAE: Maintained growth momentum with improved profitability Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA % 7,718 7,624 7,823 4,336 4,136 4,293 56% 54% 55% 8%% 5% 3% 1% Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Revenue YoY growth % EBITDA EBITDA % Net Profit (AED m) / Profit Margin (%) CAPEX (A
Slide 16: UAE: Revenue Breakdown and Key KPIs
UAE: Revenue Breakdown and Key KPIs Mobile Revenues (1) (AED m) Fixed Revenues (2) (AED m) Other Revenues (3) (AED m) 3,607 3,531 3,545 2,715 2,775 2,717 1,560 1,396 1,318 Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Mobile Subs(4) (m) & ARPU(5) (AED) Fixed Broadband (6) Subs (m) & ARPU (7)
Slide 17: Maroc Telecom: Challenging regulatory and competitive environment
Maroc Telecom: Challenging regulatory and competitive environment Morocco, Benin, Burkina Faso, CAR, CDI, Gabon, Mali, Mauritania, Niger and Togo Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 53.0 54.5 55.0 3,201 2,967 3,051 695 638 432 51% 52% 52% 15% 23% 2
Slide 18: Egypt: Performance masked by currency devaluation
Egypt: Performance masked by currency devaluation Total Subscribers (1) (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 1,052 280 96 98 100 229 24% 24% 548 568 24% 143 40% 36% 36% 42% 27% 25% Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Subscribers Market Share C
Slide 19: Pakistan: Fixed network modernisation to support data growth
Pakistan: Fixed network modernisation to support data growth Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 23.6 1,039 1,040 303 1,010 286 21.7 21.5 216 36% 35% 33% 27% 29% 21% Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Q2'16 Q1'17 Q2'17 Revenue EBITDA % CAPEX CAPEX
Slide 20: Nigeria: Etisalat exited from Nigeria market
Nigeria: Etisalat exited from Nigeria market Subsequent to default by EMTS(1) under its existing Naira and USD facilities with a syndicate of Nigerian banks, EMTS and its Lenders engaged, for a number of months, in discussions on a debt restructuring plan. However, such restructuring plan was not
Slide 21: 2017 Actual Against Guidance: On track for full year guidance
2017 Actual Against Guidance: On track for full year guidance Guidance Guidance 2017 Actual Actual H1 2017 2017 Constant H1 2017 Constant Financial KPI In AED Currencies (1) In AED Currencies (1) Revenue Growth % Slightly Lower 1% – 2% -3% +2% EBITDA Margin% around 50% 51% CAPEX / Revenue % 18% - 19
Slide 22: Etisalat Group Investor Relations
Etisalat Group Investor Relations Email: ir@etisalat.ae Website: www.etisalat.com/en/ir/index.jspr 22