Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Mobile Telecommunications Company (MTC) — FY2006 Earnings Presentation
34 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, Dec 31, 2006
Slide 1: Investor Relations Presentation
Investor Relations Presentation December 31, 2006
Slide 2: Disclaimer
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 time of
Slide 3: MTC Group vision and mission
MTC Group vision and mission Vision MTC Vision / Mission pillars • “MTC will become a global wireless operator by 2011 - through its profitable “3x3x3” expansion strategy” Wireless Beyond mobile Wireless provider provider Beyond telecommuni- Entertainment Entertainment positioning cations positionin
Slide 4: New Strategy - ACE
New Strategy - ACE • ACE Strategy A C E Accelerate Consolidate Expand • Accelerate growth in all • Capture group-wide • Expand into adjacent operation; synergies markets, i.e., – Middle East • Attain full ownership in – Iraq – Africa subsidiaries where – Saudi Arabia possible and where price is – Af
Slide 5: Vision of MTC Group
Vision of MTC Group Strategy Dec 2006 27,037,337 Customers 2003 – 2005 2006 – 2008 2009 – 2011 Regional International Global 2003 2004 2005 2006 2007 2008 2009 2010 2011 5,000,000 15,000,000 30,000,000 Customers Customers Customers 5
Slide 6: new shores.
new shores. When we look back on our accomplishments, we can't but feel proud for becoming one of the leading mobile operators in the Middle East and Africa in less than four years. When we look ahead and see all the promising opportunities, we can't but realize that there is still a lot to be done.
Slide 7: Unified management team
Unified management team Internal Audit BOD Omar Al-Omar Group CEO Group CSO Dr. Saad Al-Barrak CEO Office(1) Dr. Marwan Al Ahmadi Ameena Al-Shaar Legal Strategic PMO Dr. Frank Farraj Mishal Almana Communications & Business Development(3) Investor Relations Salah Al Fouzan Ibrahim Adel Group CRO Grou
Slide 8: MTC History
MTC History 3 MTC history Awarded 2nd GSM license in the Kingdom of Bahrain 7 2 MTC Acquired 4 100% of Acquired Fastlink Madacom in 9 – the leading Madagascar Jordanian mobile Awarded GSM license in Iraq MTC acquired operator 65% of V-Mobile Introduced GSM in Nigeria KIA reduced its in Kuwait – one
Slide 9: MTC Share Price Evolution
MTC Share Price Evolution MTC distributed 5%,7%,15% Bonus shares on April 2004, 2005, 2006 respectively MTC did a 100% Capital Increase on Nov 2005 USD (million) 2003 2004 2005 2006 Average daily Trading ( value) 4.62 4.25 9.49 8.67 Average daily Trading ( share ) 454,694 359,819 622,730 806,075 Ret
Slide 10: KSE Overview - Year 2006
KSE Overview - Year 2006 Listed Companies: 180 Total Market Capitalization: $144,652,530,407 Investments 43 •3rd largest market on the Middle East. Industrial 25 • Kuwait Stock Exchange Index 10,067 point Services 43 •Kuwait Automated Trading System (KATS) Real Estate 29 •Registered Auction Trading
Slide 11: Stock round lots and daily trading limits
Stock round lots and daily trading limits Stock Price (Fils) Round lot Unit Change (Fils) Max Daily Change (5 Units) 0.5:50 80,000 0.5 5x0.5 = 2.5 Fils 50:100 40000 1 5x1 = 5 Fils 102:250 20,000 2 5x2 = 10 Fils 255:500 10,000 5 5x5 = 25 Fils 510:1000 5,000 10 5x10 = 50 Fils 1,020:2,520 2,500 20 5x20
Slide 12: Direct Investing in KSE
Direct Investing in KSE Trading Cycle in Kuwait Stock Exchange : 1. Open an account at the Kuwait Clearing Company (KCC). 2. A Copy of the civil identification, the name of the bank the client deals with (3 K.D for individuals, 5 K.D for corporate). 3. Choose one of the registered Brokerage Firms in
Slide 13: Top Companies at KSE
Top Companies at KSE Top 5 companies ranked by profits as of 31 December 2006 Net Income EPS Serial Company Name Trailing P/E (USD million) (Cent) 1 MTC 1,050 16.68 85 2 National Bank of Kuwait 874 14.10 47 3 Kuwait Finance House 560 14.80 46 4 Gulf Bank 366 14.60 40 5 Commercial Bank of Kuwait 345
Slide 14: Group Structure
Group Structure Middle East MTC MTC Kuwait International GROUP Celtel International Jordan Burkina Chad Faso Bahrain Congo B DRC Gabon Kenya Iraq Malawi Zambia Lebanon Sierra Niger Leone Tanzania Uganda Sudan Africa Nigeria Madagascar MTC serves 27 million customers with a presence in 20 countries (
Slide 15: MTC Q3 2006 Snapshot
MTC Q3 2006 Snapshot MTC Group YTD 2006 Net Customers Revenue EBITDA (mil) ($) Income Middle East 10.167 2,116 1,210 787 Africa 16.870 2,050 897 333 Group 27.037 4,166 2,045 1,050 Comparative Annual Growth Customers + 98% Revenues +110% EBITDA + 79% Net Income + 69% 15
Slide 16: Middle East & Africa
Middle East & Africa YTD 2006 Group highlights Custom ers 27m Revenues 4.17b 37% 49% 51% 63% EBITDA 2.05b Net Incom e 1.05b Middle East Africa 30% 43% 57% 70% 16
Slide 17: MTC – Middle East & Africa Strength
MTC – Middle East & Africa Strength Middle East Africa • Mature Market • Emerging Markets • High ARPU • Medium ARPU • Moderate Growth • Very High Growth MTC is strong in both markets capitalizing High ARPU & High Growth 17
Slide 18: Middle East Overview
Middle East Overview Middle East Middle East (Q3 2006) Operations: 6 Customers (mil): 10.168 Employees: 4,924 Revenue (mil): 2,116 EBITDA (mil): 1,210 Net Profit (mil): 787 Kuwait Jordan Bahrain Iraq Lebanon Sudan 18
Slide 19: Contribution of Middle East Operations
Contribution of Middle East Operations Customers (As of Dec 2006) Revenues (2006) Kuwait 14% Kuwait Sudan 38% 27% Jordan Sudan 19% 31% Lebanon 6% Bahrain 2% Lebanon Iraq 3% Jordan 32% Bahrain 23% 5% Customers 10.2 million Revenues US$ 2.12 billion Iraq is not consolidated (associate company) 19
Slide 20: Contribution Middle East Operations
Contribution Middle East Operations EBITDA (2006) Net Income (2006) Sudan 34% Sudan 31% Kuwait 44% Lebanon 1% Kuwait Lebanon Iraq 46% 1% 3% Bahrain Bahrain 3% 2% Jordan Jordan 21% 14% EBITDA 1.21 billion Net Income 787 million 20
Slide 21: MTC Vodafone – Kuwait
MTC Vodafone – Kuwait 809 359 382 715 333 611 USD m 540 427 448 393 329 353 1,076 1,079 929 2004 2005 2006 2004 2005 2006 Revenue EBITDA Net Profit Prepaid Customers Postpaid Customers Mobile Telecommunication company was established in 1983 Kuwait Currently operates mobile services under a Vodafo
Slide 22: Fastlink – Jordan
Fastlink – Jordan 456 458 417 202 221 USD m 242 254 189 193 1,814 1,740 145 135 103 946 2004 2005 2006 2004 2005 2006 Revenue EBITDA Net Profit Prepaid Customers Postpaid Customers Fastlink Jordan was first mobile provider in the country and Jordan continues to retain a commanding market share Popu
Slide 23: MTC Vodafone – Bahrain
MTC Vodafone – Bahrain 107 70 46 26 35 36 16 19 1 21 176 187 84 (22) (34) 2004 2005 2006 2004 2005 2006 Revenue EBITDA Net Profit Prepaid Customers Postpaid Customers Commercial service launched in Dec 2003 Bahrain Fastest GSM/3G deployment in the Middle East Co-branding agreement with Vodafone P
Slide 24: MTC Atheer - Iraq
MTC Atheer - Iraq 351 3,162 USD m 38 123 114 65 1,035 3 31 27 6 3 241 2004 2005 2006 2004 2005 -4 2006 Prepaid Customers Postpaid Customers Revenue EBITDA Net Profit Iraq Completed first-year requirements set by the Ministry in a record time and launched its services in Baghdad in March 2005. Popu
Slide 25: MTC Touch - Lebanon
MTC Touch - Lebanon 132 127 58 54 123 USD m 30 382 428 318 11 9 7 7 2 2 2004 2005 2006 2004 2005 2006 Revenue EBITDA Net Profit Prepaid Customers Postpaid Customers Lebanon The Lebanese Government awarded MTC a contract to manage one of the two existing mobile phone networks till June 2008 Populat
Slide 26: Mobitel - Sudan
Mobitel - Sudan 657 65 USD m 380 330 2,688 2006 2006 Revenue EBITDA Net Profit Prepaid Customers Postpaid Customers Sudan Launched in in 1996. Celtel acquired 39% of Mobitel in March 2001. Population (m) 41.2 After MTC acquired Celtel in March 2005, MTC made the acquisition GDP/ Capita (US$) 2
Slide 27: Africa Overview
Africa Overview Africa Africa (Q3 2006) Operations: 14 Customers (k): 16,870 Employees: 7,652 Revenue (mil): 2,050 EBITDA (mil): 897 Net Profit (mil): 333 Burkina Faso Chad Republic of Congo DRC Gabon Kenya Madagascar Malawi Niger Nigeria Sierra Leone Tanzania Uganda Zambia 27
Slide 28: Celtel – Africa Overview
Celtel – Africa Overview Customers Revenues Operations Ownership (000s) (USD mil) Burkina Faso 96% 518 61.2 Chad 100% 348 65.4 Republic of Congo 90% 683 143.5 DRC 99% 1,833 253.2 Gabon 84% 514 164.6 Kenya 60% 1,939 174.3 Madagascar 100% 331 35.6 Malawi 100% 357 42.2 Niger 80% 397 61.1 Nigeria* 65% 6
Slide 29: Contribution of Celtel Operations
Contribution of Celtel Operations Customers (As of Dec 2006) Revenues (2006) Burkina Burkina Faso Zambia C had C had Faso 3% C ongo 2% Zambia 3% Uganda 8% C ongo 7% 3% 9% 3% 4% DRC Uganda Tanzania DRC 12% 2% 9% 11% Gabon Gabon Tanzania 8% Sierra 8% Leone 3% 1% Kenya Kenya 8% Sierra 11% Leone M adaga
Slide 30: Contribution of Celtel Operations
Contribution of Celtel Operations EBITDA (2006) Net Profit (2006) Madagascar Malawi M a da ga s c a r Ma la wi Kenya 2% 2% Niger Kenya 2% 1% 15% Niger Gabon 2% Ga bo n 0% 6% 3% 13% DRC DR C 10% 7% Congo Nigeria Co ngo 3% 40% Nige ria 12% 35% Chad C ha d 2% 2% Burkina Faso B urkina S ie rra Leo ne 3%
Slide 31: J yi Symbolic a>
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Slide 32: MTC comparison with main competitors
MTC comparison with main competitors Total number Number Revenues Net Net Profit Revenues EBITDA EBITDA Net Profit of mobile of YoY Profit YoY (USD mn) (USD mn) Margin (USD mn) 9M 2006 subscribers operations Growth Margin Growth MTC 24.9 20 2,937 114.3% 1,401 47.7% 772 26.3% 63.6% Wataniya 8.8 6 1,0
Slide 33: Summary of key messages
Summary of key messages Successful execution of 3x3x3 strategy Regional powerhouse in ME and Africa Two very attractive regions: • Mature high ARPU base in ME • Emerging high growth markets in Africa Capture synergies and accelerated growth through integration and ACE 33
Slide 34: Thank you
Thank you For further information, please contact: Mr. Ibrahim Adel Mr. Mohammad Abdal MTC Corporate Communications MTC Investor Relations Team leader & Investor Relations Director Telephone: +965 464 4956 PO BOX 22244 Safat, 13083 Kuwait Fax: +965 464 4506 Telephone: +965 464 4954 Email: m.abdal@mt
Mobile Telecommunications Company (MTC) — FY2006 Earnings Presentation on 6ix