Mobile Telecommunications Company K.S.C.P · KSE:ZAIN
Mobile Telecommunications Company K.S.C.P — Zain Group — FY2014 Earnings Presentation
31 slides from Mobile Telecommunications Company K.S.C.P's earnings presentation, December 2014
Slide 1: Zain Group Financial Results Presentation
ZAIN GROUP Financial Results Presentation December 2014
Slide 2: Disclaimer
1 Disclaimer Mobile Telecommunications Company KSCP “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 31st December, 2014 44.3 13.8 4G 329 MILLION MILLION LONG TERM EVOLUTION TB OF DAILY ACTIVE CUSTOMERS IN (LTE) NETWORK IN DATA USAGE CUSTOMERS IRAQ KUWAIT, SAUDI ARABIA,BAHRAIN AND 108 11.4 LEBANON $ 4.3 BILLION MILLION PEOPLE UNDER MILLION CUSTOMERS IN REPUBLIC 141 IN REVEN
Slide 5: The World of Zain
4 The World of Zain As of 31st December, 2014 Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $1,601 m Customers: 2.1 m Customers: 13.8 m Prepaid: 86% Prepaid: 99% Market Share: 42% Ownership: 100% Revenues: $1,218 m Customers: 2.7 m Ownership: 96.52% Prepaid: 74% Revenues:
Slide 6: Key Performance Indicators as of Q4-2014
5 Key Performance Indicators as of Q4-2014 Customers Revenues (4%) (10%) 46,102 44,288 1,117 1,005 USD Million Thousand Q4-14 Q4-13 Q4-14 Q4-13 EBITDA / Margin Net Income / EPS (17%) (36%) 180 492 406 115 USD Million USD Million 44.0% 0.05 0.03 40.4% Q4-14 Q4-13 Q3-14 Q3-13 EBITDA EBITDA margin Net
Slide 7: Key Performance Indicators as of 31st December, 2014
6 Key Performance Indicators as of 31st December, 2014 Customers Revenues (4%) (2%) 46,102 44,288 4,268 4,376 USD Million Thousand 2014 2013 2014 2013 EBITDA / Margin Net Income / EPS (6%) (10%) 1,898 1,783 764 685 USD Million USD Million 0.18 0.20 43.4% 41.8% 2014 2013 2014 2013 EBITDA EBITDA margi
Slide 8: Key Performance Indicators: Capex
7 Key Performance Indicators Capex & Capex / Revenues +4% +16% 730 705 608 USD Million 17% 16% 13% 2014 2013 2012 Capex Capex / Revenues
Slide 9: Total Capex Full Year 2014
8 Total Capex Full Year 2014 Group Total Capex (excluding KSA) = USD 730 million % of USD Million 2014 Revenues Others South Sudan 5% 1% Kuwait 137 11% Bahrain 14% Republic of Sudan Iraq 208 13% 25% Sudan 183 27% KSA 211 12% Jordan 8% Jordan 59 13% Iraq 28% Kuwait Bahrain 101 52% 19% S. Sudan 9 13%
Slide 10: Stock Performance (Dec-2013 to Dec-2014)
9 Stock Performance (Dec-2013 to Dec-2014) 690 680 700 670 680 660 640 650 650 650 620 640 630 Fils 600 590 530 550 500 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Stock Summary USD KWD Closing Price (31/12/14) 1.810 0.530 Paid-Up Capital (Million) 1,47
Slide 11: Key Performance Indicators: Total Debt and Net Debt
10 Key Performance Indicators as of 31st December, 2014 Total Debt Net Debt & Net Debt / EBITDA +1% +20% 2,693 2,677 1,519 2,107 1,263 1,974 USD Million USD Million 0.85 0.67 586 703 2014 2013 2014 2013 Net debt Net debt/EBITDA Long Term Short Term Total Debt • Net Debt = Total interest bearing debt
Slide 12: Zain Dividends
11 Zain Dividends Dividend Payout Ratio Dividend Yield (%) 274% 15% 8% 8% 8% 89% 86% 7% 80% 77% 2014 2013 2012 2011 * 2010 2014 2013 2012 2011 * 2010 Dividend Per Share (KWD) Cash Dividend (USD m) 2,761 0.200 0.065 908 0.040 0.050 0.050 690 685 533 2014 2013 2012 2011 * 2010 2014 2013 2012 2011 * 20
Slide 13: EBITDA Margins
12 EBITDA Margins As of 31st December, 2014 47.9% Group EBITDA margin 41.8% 41.1% 40.2% 36.9% 36.1% 17.1% 8.4% Kuwait Jordan Republic of Sudan Bahrain Iraq KSA South Sudan
Slide 14: Penetration Rates
13 Penetration Rates As of 31st December, 2014 221% 183% 171% 133% 91% 56% 19% Kuwait Bahrain KSA Jordan Iraq Republic of Sudan South Sudan Source: World Cellular Information Services (WCIS).
Slide 15: Our Customers
14 Our Customers As of 31st December, 2014 Customers Contribution Customers Growth 2014 vs. 2013 Lebanon South Sudan Group customers growth (4%) 5% 1% 7% 6% 5% KSA 20% Republic of Sudan 2% 26% KSA Kuwait Lebanon Bahrain Jordan Republic Iraq South Bahrain (1%) of Sudan Sudan 2% (3%) Jordan 9% Iraq Ku
Slide 16: Blended ARPU & Revenue Contribution
15 Blended ARPU & Revenue Contribution as of 31st December, 2014 Blended ARPU Revenue Contribution Bahrain $36 4% Kuwait 29% $19 Iraq 38% $16 $9 $9 Jordan $8 11% $5 South Sudan Republic of Sudan 2% 16% Kuwait Bahrain KSA Jordan Iraq South Republic Sudan of Sudan
Slide 17: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 18: Zain Kuwait
17 Zain Kuwait Key Statistics – December 2014 Market Share by Customers Financials Zain 35% 3.5 m $43,030 312 Population GDP/Capita 283 221% 1983 USD Million 157 143 Penetration Year of launch Viva Ooredoo 100 99 33% 32% 2.7 m 100% Customers Ownership Q4-14 Q4-13 Revenues EBITDA Net Income $36 ARPU
Slide 19: Zain Iraq
18 Zain Iraq Key Statistics – December 2014 Market Share by Customers Financials Zain 42% 450 35.3 m $7,100 358 Population GDP/Capita USD Million 193 91% 2003 Korek 19% 115 Penetration Year of acquisition Asia Cell 100 39% 32 13.8 m 76% Q4-14 Q4-13 Customers Ownership Revenues EBITDA Net Income Tech
Slide 20: Zain Sudan
19 Zain Sudan Key Statistics – December 2014 Market Share by Customers Financials Zain 42% 39.2 m $2,600 172 1,058 153 Population GDP/Capita 901 56% 2006 SDG Million USD Million Penetration Year of full 68 420 acquisition MTN Sudani 60 356 31% 27% 11.4 m 100% 21 15 132 89 Customers Ownership Q4-14 Q
Slide 21: Zain KSA
20 Zain KSA Key Statistics – December 2014 Market Share by Customers Financials Zain 17% 431 420 29.6 m $31,300 Population GDP/Capita USD Million Mobily 171% 2008 38% STC 45% 73 55 Penetration Year of acquisition 9.0 m 37% (82) Customers (123) Ownership Q4-14 Q4-13 $16 Technology : 4G LTE Revenues E
Slide 22: Zain Jordan
21 Zain Jordan Key Statistics – December 2014 Market Share by Customers Financials Zain 40% 7.6 m $6,100 Population GDP/Capita 116 118 2003 USD Million 133% Year of acquisition 51 Penetration Umniah Orange 46 29% 31% 29 27 3.8 m 96.52% Q4-14 Q4-13 Customers Ownership Technology : 4G LTE Revenues EBI
Slide 23: Zain Bahrain
22 Zain Bahrain Key Statistics – December 2014 Financials 1.3 m $29,800 56 Population GDP/Capita 47 USD Million 183% 2003 Technology : 4G LTE 21 Penetration Year of launch Number of sites : 415 18 Coverage : 99% 3 4 License : expires in 2028 788 55% Q4-14 Q4-13 Thousand Ownership Revenues EBITDA Net
Slide 24: Zain South Sudan
23 Zain South Sudan Key Statistics – December 2014 Financials 81 11.8 m $1,400 Population GDP/Capita USD Million 19% 2006 Penetration Year of full 19 21 acquisition Technology : 3G 1 692 Number of sites : 274 Thousand 100% Coverage : 50% (3) (13) Ownership Q4-14 Q4-13 Customers License : MOU Revenue
Slide 25: Touch (Lebanon)
24 Touch Managed by Zain Key Statistics – December 2014 5.0 m $15,800 Population GDP/Capita 83% 2004 Mobile Year of acquisition Technology : 4G LTE Penetration Number of sites : 1,206 Coverage : 99% 2.1 m MC License : Management Contract (MC). Customers Ownership • Zain operates in Lebanon under a m
Slide 26: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 27: Balance Sheet
26 Balance Sheet 2014 2013 2014 2013 ASSETS KD ’000 LIABILITIES AND EQUITY KD ’000 Current liabilities Current assets Trade and other payables 656,064 542,566 Cash and bank balances 343,570 399,242 Due to banks 171,616 198,402 827,680 740,968 Trade and other receivables 358,377 350,300 Non-current l
Slide 28: Income Statement
27 Income Statement 2014 2013 KD ’000 Revenue 1,213,229 1,240,035 Cost of sales (336,029) (351,569) 2014 2013 Gross profit 877,200 888,466 Earnings per share Operating and administrative expenses (359,728) (342,923) Fils (EPS) Depreciation and amortization (171,749) (194,566) Basic – Fils 50 56 Prov
Slide 29: Cash flow statement
28 Cash flow statement 2014 2013 2014 2013 KD ‘000 KD ‘000 Cash flows from operating activities Cash flows from investing activities Profit for the year before income tax 237,698 261,697 Deposits maturing after three months and bank balances (5,994) (2,867) Adjustments for: blocked Investments in a
Slide 30: Annex: Quarterly results by operation
29 ANNEX Zain Group Q1, 2013 Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 2014 2013 Customers (000) 44,139 44,392 44,325 46,102 46,224 46,512 43,663 44,299 44,299 46,102 Group Revenues ($ m) 1,059 1,100 1,100 1,117 1,104 1,122 1,036 1,005 4,268 4,376 EBITDA ($ m) 449 487 471 492 46
Slide 31: Q&A and Investor Relations contact
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 4