Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2010 Earnings Presentation
28 slides from Maroc Telecom Sa's earnings presentation, Jul 28, 2010
Slide 1: Maroc Telecom
Maroc R Telecom /
Slide 2: Business review, Highlights, Financial results, Outlook
Business Highlights review Financial Outlook results First Half 2010 Results 2
Slide 3: Operating environment in Morocco
Operating environment in Morocco GDP in Mo ro c c o * (MAD bn) 5,6% 5,2% 4,0% 4,3% • A s us taine d g ro wth in Q1-10 with a 5.6% growth 2,7% for the non-agricultural GDP and a 3.5% growth for 615 689 736 778 816 the total GDP. • Co ntro lle d inflatio n (+1.4% in Q2-10) 2007 2008 2009 2010E 2011E .
Slide 4: Regulatory context in Morocco
Re g ulato ry c o nte xt in Mo ro c c o • 2010-2013 re g ulato ry g uide path: • Decrease of the mobile termination rates • Asymmetric tariffs converging at the end of 2012 Mo bile Te rmination Rate s (MAD/ Min) Wana 0.923 Mé dite l 0.749 IAM 0.624 0.303 m id 2010 201 3 First Half 2010 Results 4
Slide 5: Leading operator active on all market segments with a well established brand
Leading operating active on all market segments with a well established brand Mobile Internet Fixed Subscribers 15.9 Subscribers 822k Subscribers 1.237 Q2 millions Q2 lines Q2 millions o/w postpaid 731 k o/w ADSL 477k Growth +11.3% Growth -4.1% Growth +42.9% Penetration 88.5% Penetration Penetration
Slide 6: Sub-Saharan Africa
Sub-Saharan Africa • Re al GDP g ro wth in 2010e 5,4% 5,1% 4,6% 4,4% + 4.7% Average GDP growth in the sub- Saharan area (IMF 2010) Mauritania Burkina Faso Gabon Mali • Inflatio n is unde r c o ntro l in all markets where Maroc Telecom is operating (2.7% in 2010) Mo bile pe ne tratio n (Q1 2010) 101%
Slide 7: Appealing results in Maroc Telecom's subsidiaries
Appealing results in Maroc Telecom’ subsidiaries Mauritel S o te lma Photo Mauritania Mali 2010 vs 2009 2010 vs 2009 Mobile subs. (000) Mobile subs. (000) 1,464 +130% Q2 2010 1,547 +18% Q2 2010 Market share* 53% - Market share* 21% +4 pts Market share 30% +13 pts H1-10** * Q1-2010 vs. Q1-2009 Source
Slide 8: Key figures Maroc Telecom Group
Key figures Maroc Telecom Group MMAD % Co mparable bas is Revenues 15,465 +6.0% +2.2% Operating income 6,667 +1.8% +2.6% Operating margin 43.1% -1.8 pt +0.2pt Cash Flow from operations 5,510 +1.6% First Half 2010 Results 8
Slide 9: Business review
Business Highlights review Financial Outlook results First Half 2010 Results 9
Slide 10: Highlights Mobile in Morocco
Highlights Mobile in Morocco POSTPAID PREPAID PREPAID More free minutes Free additional LOYALTY PROGRAM in the postpaid bonus on prepaid Extension offers refills above MAD50 and improvement (permanent offer) MOBILE EXTENSION OF THE PAYMENT DISTRIBUTION NETWORK Development of 335 owned-shops, the dis
Slide 11: Business review Morocco
Business review Morocco Mo bile c us to me rs bas e +11.3% 15,904 669 682 706 731 • Cus tome r bas e is 14,289 still growing 671 15 173 14 ,8 7 2 1 4,5 7 0 1 4 ,59 0 1 3 ,61 8 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Prepaid Postpaid Churn -7.8pts Churn is de c re as ing thanks to: 35.2% 36.5% 33.5% 27.4% • Th
Slide 12: Mobile in Morocco ARPU and usage
Mobile in Morocco ARPU et usage Ble nde d ARPU Ble nde d o utg o ing us ag e (MAD / customer / month) (Minutes / customer / months) ~ -9.1% 54 55 94 97 98 94 51 49 91 44 Q2-09 Q3- 09 Q4-09 Q1- 10 Q2-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 • ARPU is stabilizing at a high level despite the growth of the cust
Slide 13: Business review Morocco: Mobile
Business review Morocco Mobile (MADm) 5 9 .7 % 6 2 .2 % 6 3 .4 % 5 7 .4 % 6 2 .5 % +2.8 pts 5 ,0 0 4 4 ,8 4 7 4 ,5 3 7 3 ,1 1 5 4,983 +7.4% 4,638 3 ,0 7 1 2 ,6 0 5 3,117 +12.5% 2,770 (in MADm ) Q 2 -0 9 Q 3 -0 9 Q 4 -0 9 Q 1 -1 0 Q 2 -1 0 Revenues EB ITD A E BITD A margin Mobile revenues are growing
Slide 14: Highlights Fixed & Internet in Morocco
Highlights Fixed & Internet in Morocco • De c re as e of the • Fre e natio nal calls with triple-play offers te rminatio n rate s from (telephony over Internet) abroad to the fixed lines in Morocco Robust growth Free doubling of the of the e nte rpris e marke t ADSL bandwidth speeds First Half 2010
Slide 15: Business review Fixed & Internet in Morocco
Business review Fixed & Internet in Maroc Fixe d line s c us to me r bas e -4.1% 1,290 1,237 373 371 369 372 376 164 164 158 155 154 • Stabilization of the number of line in 2010 753 735 707 705 706 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Residential Public telephony Corporate Bas e Clie nts Inte rne t +43.1%
Slide 16: Business Review Fixed & Internet in Morocco
Business Review Fixed & Internet in Morocco Fixe d (MADm) 49.8% 49.9% 47.1% 48.5% 47.8% -2 pts 2,268 2,284 2,193 2,384 2,119 -11.1% 1,133 1,075 1,064 1,187 1,013 -14.7% (in MADm ) T2-09 Q3-09 Q4-09 Q1-10 Q2-10 Revenues EBITDA EBITDA margin Slight decrease of the fixed lines base, but stabilization i
Slide 17: Mauritania
Mauritania Po pulatio n 3.1 millions In MADm – IFR S H1-2009 H1-2010 var. Re ve nue s (ne t) 565 595 +5.3% GDP $ 3.03 billions Mobile 472 509 +8% Fixed and Internet 113 110 -2.4% -1.1% in 2009 +4.6% in 2010e EBITDA 299 300 +0.4% Re ve nue pe r ˜ $ 2 038 % of re ve nues 52.9% 50.4% inhabitant (ppp) -
Slide 18: Burkina Faso
Burkina Faso Po pulatio n 14.4 millions In MADm - IFR S H1-2009 H1-2010 var. Re ve nue s (ne t) 833 934 +12.1% GDP $ 8.1 billions Mobile 558 677 +21.3% Fixed and Internet 399 391 -1.8% +3.2% in 2009 +4.4% in 2010e EBITDA 359 481 +33.9% Re ve nue pe r ˜ $ 1,304 % of re ve nues 43.1% 51.5% inhabitant
Slide 19: Gabon
Gabon Po pulatio n 1.5 million In MADm - IFR S H1-2009 H1-2010 var. Re ve nue s (ne t) 593 512 -13.7 % GDP $ 11.01 billions Mobile 326 277 -14.9% Fixed and Internet 315 281 -10.6% -1.4% in 2009e +5.4% in 2010e EBITDA 179 164 -8.2 % Re ve nue pe r ˜ $ 14,317 % of re ve nues 30.2% 32.6% inhabitant (pp
Slide 20: Mali
Mali Po pulatio n 13.7 millions In MADm - IFR S H1-2009 H1-2010 var. Re ve nue s (ne t) 600 703 +17% GDP $ 8.96 billions Mobile 449 538 +19.5% Fixed and Internet 160 172 +7.5% +4.5% in 2009e +5.1% in 2010e EBITDA 92 262 +184% Re ve nue pe r ˜ $ 1.173 % of re ve nues 15.3% 37.3% inhabitant (ppp) +3.3
Slide 21: Financial results
Business Highlights review Financial Outlook results First Half 2010 Results 21
Slide 22: Consolidated income statement
Consolidated income statement In MADm H1 2010 H1 2009 var Re ve nue s 15,465 14,586 +6.0% Operating expenses -8,799 -8,034 +9.5% EBITDA 9,004 8,589 +4.8% % of revenues 58.2% 58.9% -0.7pt Ope rating inc o me 6,667 6,552 +1.8% % of revenues 43.1% 44.9% -1.8pt Ne t Pro fit g ro up s hare 4,455 4,646 -4
Slide 23: Revenues & EBITDA
Revenues & EBITDA Re ve nue s (MADm ) EBITDA (MADm) +4.8% +6.0% 15,465 9,004 +33.6% 8,589 +46.2% 14,586 8,504 14,308 1,205 2,772 443 824 2,075 1,855 12,763 8,061 7,800 +0.4% 12,575 +1.5% 7,766 12,511 H1-08 H1-09 H1-10 H1-08 H1-09 H1-10 Sub-Saharan Africa Morocco First Half 2010 Results 23
Slide 24: Investments
Investments +49 % 2,404 • CAPEX are back-end loaded in H2-2010, with a target of slightly more than 20% of revenues for the full year (15.5% in H1-2010) • Stabilization of CAPEX in Morocco for the full 1,091 year 1,611 • Increase of mobile network coverage in the subsidiaries 473 +130 % 1,091 ~ +44%
Slide 25: Cash Flow Statement
Cash Flow Statement In MMAD H1 2010 H1 2009 var EBITDA 9,004 8,589 +4.8% Maroc Telecom 7,799 7,766 +0.4% Subsidiaries 1,205 824 +46.4% CAPEX -2,404 -1,611 +49.4% Maroc Telecom -1,313 -1,138 +15.6% Subsidiaries -1,091 -473 +130.7% Chang e in wo rking c apital -1,090 -1,572 +30.0% Cas h Flo w fro m o
Slide 26: Outlook
Business Highlights review Financial Outlook results First Half 2010 Results 26
Slide 27: Clear targets
Clear targets • Maintain the le ade rs hip while c o ntrolling the margins • S us tain the g rowth pro file thanks to inve s tme nts , the de ve lo pment o f our s ubs idiarie s and the s e arc h o f ne w M&A o ppo rtunitie s • S tre ng the ning s o cial re s pons ibility and c ivic mis s ions o f M
Slide 28: Unchanged 2010 guidance
Unchanged 2010 guidance • Mo de rate g ro wth in re ve nue s • Pro fitability to be maintaine d at hig h le ve ls First Half 2010 results Results 28