Mobile Telecommunications Company K.S.C.P · KSE:ZAIN
Mobile Telecommunications Company K.S.C.P — Zain Group — Q3 2015 Earnings Presentation
27 slides from Mobile Telecommunications Company K.S.C.P's earnings presentation, November 2015
Slide 1: Zain Investors Presentation Q3 2015
Zain Investors Presentation Q3 2015
Slide 2: Disclaimer
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, or
Slide 3: Contents
Contents Zain Group Overview Zain Operations Overview Financial Statements 3
Slide 4: Zain at a Glance
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Zain AT A GLANCE 9M 2015 45.6 Million active 11.8 4G Long term Over customers Million customers evolution (LTE) In KSA network in Kuwait, 6,700 Saudi Arabia, Jordan, Bahrain Employees $1.2 Billion in EBITDA and Lebanon 108 Million peo
Slide 5: The World of Zain
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW THE WORLD OF ZAIN 9M 2015 MOROCCO LEBANON IRAQ Ownership: 15.5% Ownership: Ownership: 76% Management Contract Revenues: $924 m Customers: 2.3 m Customers: 11.4 m Prepaid: 86% Prepaid: 99% Market Share: 54% Market Share: 42% JORDAN KUW
Slide 6: Group Results Q3 2015
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Group Results Q3 2015 CUSTOMERS REVENUES +4% -7% 45,571 1,036 43,663 968 USD Million Thousand Q3-15 Q3-14 Q3-15 Q3-14 EBITDA / MARGIN NET INCOME / EPS -0.3% -23% 433 434 163 125 USD Million USD Million 0.04 0.03 44.7% 41.9% Q3-15 Q3-1
Slide 7: Group Results 9M 2015
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Group Results 9M 2015 CUSTOMERS REVENUES +4% -13% 3,263 45,571 43,663 2,850 USD Million Thousand 9M-15 9M-14 9M-15 9M-14 EBITDA / MARGIN NET INCOME / EPS -10% -31% 570 1,377 1,239 394 USD Million USD Million 0.15 0.10 43.5% 42.2% 9M-1
Slide 8: Capex & Capex / Revenues
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW CAPEX & CAPEX / Revenues -18% +4% 730 705 600 USD Million 17% 16% 16% 2015 F 2014 2013 Capex Capex / Revenues F = Forecasted 8
Slide 9: Total CAPEX
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Total CAPEX Group Total Capex (excluding KSA) = USD 469 million 9M-2015 % of Opco USD Million Revenues Others Bahrain 1% Kuwait 87 11% 2% South Sudan 2% Iraq 131 14% Iraq 28% Sudan 188 35% Republic of Sudan KSA 315 23% 40% Jordan 40 1
Slide 10: Total Debt and Net Debt
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW TOTAL DEBT Net Debt & Net Debt / EBITDA +11% +16% 3,129 2,820 2,034 2,421 1,751 USD Million 1,821 USD Million 1.23 0.98 999 708 9M-15 9M-14 9M-15 9M-14 Net debt Net debt/EBITDA Long Term Short Term • Net Debt = Total interest bearing
Slide 11: Zain Dividends
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW 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 (KD) CASH DIVIDEND (USD M) 2,761 0.200 0.065 908 0.040 0.050 0.050 6
Slide 12: EBITDA Margins 9M 2015
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW EBITDA Margins 9M 2015 49.2% 44.2% Group EBITDA margin 43.5% 40.8% 38.8% 38.6% 23.3% Kuwait Jordan Republic of Sudan Iraq Bahrain KSA South Sudan -3.2% 12
Slide 13: Market Penetration Rates
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Market Penetration Rates 225% 187% 181% 126% 90% 86% 58% 20% Kuwait Bahrain KSA Jordan Lebanon Iraq Republic of Sudan South Sudan Source: World Cellular Information Services (WCIS). 13
Slide 14: Customers Contribution and Growth
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Customers Contribution Customers Growth Lebanon South Sudan KSA 31% 5% 2% Kuwait 9% Republic of Sudan 25% KSA 26% Lebanon 6% South Sudan 5% Group +4.4% Republic of Sudan 4% Bahrain Jordan 2% 9% Bahrain 3% Kuwait Jordan 3% 6% Iraq 25%
Slide 15: Revenue Contribution and Blended ARPU
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Blended ARPU Revenue Contribution $30 Bahrain 5% Kuwait 29% $19 $15 Iraq 33% $9 $9 Jordan $8 12% $5 South Sudan Republic of Sudan 2% 19% Kuwait Bahrain KSA Jordan South Iraq Republic Sudan of Sudan
Slide 16: Kuwait Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN KUWAIT MARKET SHARE FINANCIALS Zain 3.6 m $71,000 37% Population GDP/Capita 290 266 225% 1983 USD Million Penetration Year of launch 130 138 Viva Ooredoo 33% 92 30% 76 2.9 m 100% Customers Ownership Q3-15 Q3-14 $ $30 ARPU Technol
Slide 17: Iraq Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN IRAQ MARKET SHARE FINANCIALS 36.0 m $14,600 Zain Population GDP/Capita 42% 387 86% 2003 Penetration Year of acquisition 320 USD Million 11.4 m 76% Korek Customers Ownership Asia 22% 137 128 Cell 36% 59 42 $ $8 ARPU Q3-15 Q3-14 Te
Slide 18: Sudan Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN SUDAN MARKET SHARE FINANCIALS 39.9 m $4,300 Zain Population GDP/Capita 42% 1,139 3,378 975 58% 2006 2,967 Penetration Year of full SDG Million SDG Million acquisition 502 11.6 m 100% MTN 385 1,380 1,199 Customers Sudani Ownership
Slide 19: KSA Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN KSA MARKET SHARE FINANCIALS 30.0 m $52,200 Population GDP/Capita Zain 20% 181% 2008 488 427 Penetration Year of acquisition USD Million Mobily 11.8 m 37% STC 47% 31% Customers 118 Ownership 70 $ $15 ARPU (59) (84) Others 2% Q3-15
Slide 20: Jordan Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN JORDAN MARKET SHARE FINANCIALS 7.7 m $11,900 Zain Population GDP/Capita 37% 120 122 126% 2003 Penetration Year of acquisition USD Million 55 4.1 m 96.52% Umniah 31% Orange 48 Customers 32% 26 26 Ownership $ $9 ARPU Q3-15 Q3-14 Te
Slide 21: Bahrain Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN BAHRAIN FINANCIALS 1.4 m $51,700 Population GDP/Capita 187% 2003 50 47 Penetration Year of launch USD Million 814 55% Thousand Ownership 19 17 Customers 4 2 $ $19 ARPU Q3-15 Q3-14 Technology : 2G, 3G, 4G - Number of sites : 454 -
Slide 22: South Sudan Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN SOUTH SUDAN FINANCIALS 12.6 m $2,300 Population GDP/Capita 17 18 20% 2006 Penetration Year of full 7 USD Million acquisition 696 Thousand 100% (2) Customers Ownership (8) $ $9 (26) ARPU Q3-15 Q3-14 Technology : 2G, 3G - Number of
Slide 23: Touch Lebanon Market Share
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW TOUCH MARKET SHARE MANAGED BY ZAIN 5.0 m $18,000 Touch Population GDP/Capita 54% 90% 2004 Mobile Year of acquisition Penetration 2.3 m MC Customers Ownership Alfa 46% Technology : 2G, 3G, 4G - Number of sites : 1,282 - Coverage : 99%
Slide 24: Balance Sheet
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW BALANCE SHEET Unaudited Audited Unaudited Unaudited Audited Unaudited 30-Sep-15 31-Dec-14 30-Sep-14 30-Sep-15 31-Dec-14 30-Sep-14 Liabilities and Equity KD ‘000 Current liabilities Assets KD ‘000 Trade and other payables 747,376 656,0
Slide 25: Income Statement
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW INCOME STATEMENT Nine months ended 30-Sep 2015 2014 KD’000 Revenue 854,759 921,397 Cost of sales (218,898) (256,938) Nine months ended Gross profit 635,861 664,459 30-Sep Operating and administrative expenses (260,531) (267,052) 2015
Slide 26: Cash Flow Statement
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW CASH FLOW STATEMENT Nine months ended Nine months ended 30-Sep 30-Sep 2015 2014 2015 2014 Cash flows from investing activities KD’000 KD’000 Deposits maturing after three months and bank balances blocked (16,337) (16,171) Net cash out
Slide 27: Q&A and 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 & CIA Fact Book Zain Group, Head Office Building P.O. Box 22244, 13083 Safat, Kuwait City, Kuwait Tel: +965 2464 444