Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain — 9M 2009 Earnings Presentation
49 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, Sep 30, 2009
Slide 1: Investor Presentation
Investor Presentation September 30, 2009 A wonderful world
Slide 2: Disclaimer
Zain Disclaimer Certain expectations and projections regarding future performance of the company referenced in this presentation may be “forward-looking” statements within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at the ti
Slide 3: Becoming a Global Telecoms Player
Becoming a Global Telecoms Player Who we are now • Zain is an emerging telecoms player operating in 24 countries in the Middle East and Africa, serving over 71.8 million active customers • The company is the leading mobile telecom operator in 16 of its markets, while 4 are in second position • Reven
Slide 4: Zain's Historical Growth
Zain’s Historical Growth From a National Player to an Emerging Markets Leader * MTC Atheer & Iraqna jointly operate under the Zain brand 4 | Zain | IR Presentation 9 Months 2009
Slide 5: Zain's Historical Growth
Zain’s Historical Growth From a National Player to an Emerging Markets Leader 1983-2002 Population under license: 3.2 million Number of Operations: 1 2002-2005 Population under license: 42.8 million Number of Operations: 5 2005-2009 Population under license: 600 million Number of Operations: 24 Cust
Slide 6: Zain's Historical Growth
Zain’s Historical Growth From a National Player to an Emerging Market Leader 6 | Zain | IR Presentation 9 Months 2009 % reflects ownership
Slide 7: Group Structure
Group Structure MTC International Kuwait 100% Burkina Faso Chad Palestine 100% 100% 56.53% Congo B. D.R.C. Jordan 90% 98.5% 56.53% Gabon Kenya Bahrain 90% 95% 56.25% Malawi Zambia Iraq 100% 78.88% 71.67% Niger Sierra Leone Lebanon 90% 100% M.C.* Tanzania Uganda Sudan 60% 100% 100% Nigeria Madagascar
Slide 8: Zain's Key Performance Indicators
Zain’s Key Performance Indicators 8 | Zain | IR Presentation 9 Months 2009
Slide 9: Zain's Customers
Zain’s Customers Driven by Organic Growth and M&A Customers (m) Customer Growth Zain’s customers increase was boosted by the merger of Zain Jordan and Paltel and the addition of the launch of Zain KSA. 9 | Zain | IR Presentation 9 Months 2009
Slide 10: Penetration Rates
Penetration Rates Substantial Potential for Future Growth 17 countries in which Zain operates still have large growth potential. 10 | Zain | IR Presentation 9 Months 2009 Source: Informa
Slide 11: Top Companies in Middle East & Africa
Top 10 Companies in Middle East & Africa Market Cap (Billion) As of November 8, 2009 Source: Reuters 11 | Zain | IR Presentation 9 Months 2009
Slide 12: Top Telecom Companies in Middle East & Africa
Top 10 Telecom Companies in Middle East & Africa Market Cap (Billion) As of November 8, 2009 Source: Reuters 12 | Zain | IR Presentation 9 Months 2009
Slide 13: Moving Forward
Moving Forward Expansion Equity Listing ACE • Zain KSA launched its • Zain’s K.S.C stock is listed on the • Zain will become one of the Top-10 commercial services in August Kuwait Stock Exchange under the stock mobile operators in the world by 2008 ticker ZAIN 2011 • Zain Ghana launched its • The Za
Slide 14: One Network
One Network Innovative Services Guaranteeing Further Competitive Advantages What is One Network? • The world’s first border-less mobile network connecting 17 countries - started in Sept. 2006, further expanded in June, November 2007, April 2008, August and December 2008 to cover KSA and Ghana at lau
Slide 15: Zain's Mobile Operations
Zain’s Mobile Operations 16 | Zain Limited © |
Slide 16: Zain Group Country Breakdown
Zain Group Country Breakdown September 30, 2009 Zain Group Customers Zain Group Revenues 16 | Zain | IR Presentation 9 Months 2009
Slide 17: Zain Group Customer Growth
Zain Group Customer Growth September ‘09 vs. September ‘08 Group Customer Growth: +28% % 156156 % 17 | Zain | IR Presentation 9 Months 2009
Slide 18: Blended ARPUs
Blended ARPUs September 30, 2009 US$ 18 | Zain | IR Presentation 9 Months 2009 Note: Lebanon’s ARPU not included due to Management Contract
Slide 19: EBITDA Margins 9 Months 2009
EBITDA Margins 9 Months 2009 9 Months 2009 9 Months 2008 Group EBITDA Margin: 43% 19 | Zain | IR Presentation 9 Months 2009
Slide 20: Middle East
Middle East Overview Population (000s) Customers (000s) Kuwait 3,480 1,808 Jordan 6,317 2,625 Bahrain 1,130 693 Iraq 30,285 10,063 Lebanon 4,195 1,273 Kingdom of Saudi Arabia 28,831 4,401 Sudan 40,581 7,335 Palestine 4,312 1,731 Total 119,131 29,929 Revenues Breakdown Population Breakdown Customer B
Slide 21: Africa
Africa Overview Population (000s) Customers (000s) Nigeria 155,770 14,936 Kenya 39,888 2,191 DRC 67,470 3,569 Tanzania 45,782 4,764 Zambia 12,453 2,940 Congo Brazzaville 3,951 1,415 Gabon 1,375 870 Ghana 24,537 1,208 Others 117,702 10,004 Total 468,928 41,897 Population Breakdown Customer Breakdown
Slide 22: Kuwait
Kuwait Contribution to Group total - Population: 1% Customers: 3% Revenues: 15% - Customer YoY Growth: 6% • Despite Viva’s entry in the market, Zain Kuwait still commands 49% of the market, as a result of increased network coverage to 1,640 sites and introduction of key services and promotions. • Za
Slide 23: Sudan
Sudan Contribution to Group total - Population: 7% Customers: 10% Revenues: 12% - Customer YoY Growth: 62% • In February 2006, Zain Group acquired the remaining 61% of Mobitel for US$ 1.332 billion. • Zain Sudan’s excellent performance was driven primarily by a solid customer growth (62%), resulting
Slide 24: Iraq
Iraq Contribution to Group total - Population: 5% Customers: 14% Revenues: 16% - Customer YoY Growth: 18% • After securing a 15-year license in August 2007 for US$ 1.25 billion, and following the full integration between MTC-Atheer and Iraqna, Zain managed to increase its ownership stake to 71.67% t
Slide 25: Jordan
Jordan Contribution to Group Total - Population: 1% Customers: 4% Revenues: 6% - Customer YoY Growth: 17% • Despite the highly competitive market, Zain Jordan managed to maintain its position as the market leader with a 45% market share. • The aftershocks of the worldwide financial turmoil has cause
Slide 26: Bahrain
Bahrain Contribution to Group Total - Population: 0% Customers: 1% Revenues: 3% - Customer YoY Growth: 15% • A Greenfield operation, Zain Bahrain entered the market as the second mobile operator in December 2003. • Bahrain has the highest mobile penetration in the region with 188% and has surpassed
Slide 27: Zambia
Zambia Contribution to Group Total - Population: 2% Customers: 4% Revenues: 3% - Customer YoY Growth: 17% • One of the key performers of the Group, Zain Zambia was launched in 1998 and continues to be the preferred mobile network with 70% market share. • Zain Zambia continues to face a delay in the
Slide 28: Niger
Niger Contribution to Group total - Population: 3% Customers: 2% Revenues: 2% - Customer YoY Growth: 51% • Zain Niger started its commercial activities in October 2001 and since then has evolved to control 67% of the market. • To date, Niger hosts four other mobile operators, notably Orange and Moov
Slide 29: Malawi
Malawi Contribution to Group Total - Population: 3% Customers: 2% Revenues: 2% - Customer YoY Growth: 46% • Zain Malawi started its operation in October 1999, and currently holds 72% of the market. • Zain Malawi managed to sustain its profitability level and look forward to capitalize on the healthi
Slide 30: Burkina Faso
Burkina Faso Contribution to Group total - Population: 3% Customers: 2% Revenues: 1% - Customer YoY Growth: 17% • Zain Burkina Faso commenced operations in January 2001, and despite being the third operator to enter the market, it quickly positioned itself from a challenger to a leader with 51% mark
Slide 31: Tanzania
Tanzania Contribution to Group Total - Population: 8% Customers: 7% Revenues: 3% - Customer YoY Growth: 45% • Zain Tanzania launched its services in November 2001 and currently owns 60% while the government holds the remaining stake. • Despite the aggressive competition with 3 other peers, Zain lead
Slide 32: Chad
Chad Contribution to Group Total - Population: 2% Customers: 2% Revenues: 2% - Customer YoY Growth: 36% • Zain Chad launched services in October 2000 and is currently the no.1 operator with 70% market share. • Zain’s performance was underpinned by strategic activities rolled out to accelerate covera
Slide 33: Congo Brazzaville
Congo Brazzaville Contribution to Group Total - Population: 1% Customers: 2% Revenues: 2% - Customer YoY Growth: 14% • Zain Congo B. launched its commercial activities in December 1999. • Despite increased competition, Zain Congo B. was able to maintain its leadership position with 53%. • On the com
Slide 34: Gabon
Gabon Contribution to Group total - Population: 0% Customers: 1% Revenues: 3% - Customer YoY Growth: 14% • Zain Gabon launched in June 2000 and was able to maintain its lead position in the market since 2003. • Despite heavy bonus promotions and pricing activities from its competitors, Zain Gabon wa
Slide 35: Uganda
Uganda Contribution to Group Total - Population: 6% Customers: 3% Revenues: 1% - Customer YoY Growth: 20% • Zain Uganda launched services in 1995 and was Zain’s first operation in Africa, as well as the first GSM network in sub-Saharan Africa. • Despite the ongoing political and economic turmoil, Za
Slide 36: Sierra Leone
Sierra Leone Contribution to Group Total - Population: 1% Customers: 1% Revenues: 1% - Customer YoY Growth: 25% • Zain Sierra Leone launched services in September 2000 as the first mobile operator in the country. • The operation has been able to maintain a lead with 46% market share despite the aggr
Slide 37: Madagascar
Madagascar Contribution to Group Total - Population: 4% Customers: 2% Revenues: 1% - Customer YoY Growth: 31% • Zain Madagascar joined the Group’s African portfolio in 2005. • Zain’s market share remained relatively stable at 38% despite adverse economic conditions and political instability. • Sever
Slide 38: Democratic Republic of Congo
Democratic Republic of Congo Contribution to Group Total - Population: 11% Customers: 5% Revenues: 4% - Customer YoY Growth: 18% • Zain DRC started its commercial services in December 2000 and rapidly distinguished itself in this liberalized market as the first mobile operator with 45% market share.
Slide 39: Kenya
Kenya Contribution to Group Total - Population: 7% Customers: 3% Revenues: 2% - Customer YoY Growth: -14% • Acquired in 2004, Zain Kenya faces a highly competitive market with a relatively low ARPU of $4. • Customer base was reduced by 9% as compared to June 2009 due a recurring clean-up exercise wh
Slide 40: Ghana
Ghana Contribution to Group Total - Population: 4% Customers: 2% Revenues: 1% • Zain Ghana was the first telecom operator to introduce the 3.5G network when officially launched on December 15, 2008. • With the overall stabilization of the economic landscape, the telecom market size in Ghana increase
Slide 41: Nigeria
Nigeria Contribution to Group Total - Population: 26% Customers: 21% Revenues: 16% - Customer YoY Growth: -6% • In 2001, Zain made history by becoming the first telecom operator to launch commercial services in Nigeria, and was rebranded to Zain in August 2008. • Zain Nigeria is the largest contribu
Slide 42: Lebanon
Lebanon Contribution to Group Total - Population: 1% Customers: 2% Revenues: 1% - Customer YoY Growth: 67% • Zain operates in Lebanon under a management contract since June 2004, when it was rebranded to mtc-touch, and on January 2009, Zain signed an annual renewal agreement. • From the Group, Zain
Slide 43: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Contribution to Group Total - Population: 5% Customers: 6% • Zain KSA launched commercial services in late August 2008. • Despite operating in a highly competitive environment, Zain secured over 4 million customers in less than a year. • The operation successfully sealed a $2
Slide 44: Palestine
Palestine Contribution to Group Total - Population: 1% Customers: 2% • Zain Jordan and Paltel entered into a merger agreement in May 2009, and the finalization of rebranding to Zain is currently pending due to legal requirements. • The second mobile operator, Wataniya, is expected to launch in Novem
Slide 45: Financial Performance / Financial Statements
Financial Performance Financial Statements 45 | Zain | IR Presentation 9 Months 2009
Slide 46: Balance Sheet
Balance Sheet 30‐Sep‐09 30‐Sep‐08 30‐Sep‐09 30‐Sep‐08 KD (000s) KD (000s) KD (000s) KD (000s) Assets Liabili6es & Equity Current Assets Current Liabili6es 271,040 Cash on hands and banks 170,799 Trade and other payables 1,164,292 484,341 Short‐term deposits 58,820 870,661 Short‐term loans 453,318 56
Slide 47: Income Statement
Income Statement 30‐Sep‐09 30‐Sep‐08 KD (000s) KD (000s) Revenues 1,779,606 1,439,348 Cost of Sales (478,486) (409,469) Gross Margin 1,301,120 1,029,879 Distribution, Marketing and operating expenses (375,918) (342,376) General and administrative expenses (158,921) (130,564) Provision for doubtful d
Slide 48: Cash Flow Statement
Cash Flow Statement 30‐Sep‐09 30‐Sep‐08 30‐Sep‐09 30‐Sep‐08 KD (000s) KD (000s) KD (000s) KD (000s) Cash flows ‐ opera6ng ac6vi6es: Cash flows ‐ inves6ng ac6vi6es: Net profit / (Loss) for the period before Income Tax & AcquisiEon of investment (1,398) (1,779) 256,585 293,580 Minority Interest AcquisiEo
Slide 49: Thank you
Thank you For more information please contact Investor Relation Team at: investor.relations@zain.com A wonderful world