Slide 1: Annual Results 2010
Tuesday, February 22, 2011 ANNUAL RESULTS 2010
Slide 2: Annual Results 2010: Business review
ANNUAL RESULTS 2010 Business Highlights review Financial Outlook results Résultats Annuels 2010 2
Slide 3: Environment in Morocco
Environment in Morocco The Economy in Morocco (MAD bn) 5.6% 5.2% 4.0% 5.2% • Sustained GDP growth in 2.7% 2010 615 689 736 779 835 • Growth acceleration in 2011 2007 2008 2009 2010E 2011E Value GDP growth Ministry of Economy and Finance The Telecom market + 27.5pts 101.5% • Mobile market still growi
Slide 4: Environment in Sub-Saharan Africa
Environment in Sub-Saharan Africa 2010E Real GDP growth 5.1% 4.7% • Sustained economical growth in 4.4% 4.5% the Sub-Saharan area Burkina Faso Gabon Mauritania Mali IMF Mobile penetration 111% (End of September 2010) 91% • Strong Mobile customer base growth 45% • Heavy multiple SIM trend 28% • Inten
Slide 5: Strong growth of the Group's customer base
Strong growth of the Group’s customer base +19% 25.8 (In millions) 21.7 Internet Fixed-line +10% Mobile +54% Morocco Sub-Saharan Morocco Sub-Saharan Africa Africa 2009 2010 2010 Annual Results 5
Slide 6: Higher than expected results
Higher than expected results 2010 Comparable Maroc Telecom Group MADm Chg. basis Revenues 31,655 +4.3% +2.4% Operating income 14,335 +2.3% +2.7% Operating margin 45,3% -0.9pt +0.2pt Net earnings 9,536 +1.2% +2.3% group-share Cash Flow 12,836 -2.7% from operations 2010 Annual Results 6
Slide 7: Growing Dividend
Growing Dividend Proposed dividend of MAD 10.58 per share, representing : • 100% of annual distributable earnings • A 2.6% growth • A dividend yield of 6.8%* * Based on share price at February 18, 2011 (154.50 MAD) 2010 Annual Results 7
Slide 8: Annual Results 2010: Highlights review
ANNUAL RESULTS 2010 Business Highlights review Financial Outlook results Résultats Annuels 2010 8
Slide 9: Highlights: Mobile in Morocco
Highlights MOBILE IN MOROCCO USAGE KEEPING THE BEST EXTENSION OF THE STIMULATION QUALITY OF LARGEST DISTRIBUTION • Plans : more minutes SERVICE NETWORK IN MOROCCO & 1 unlimited free number • +330 2G BTS 349 OWNED-SHOPS • More attractive prepaid • +800 3G BTS bonuses INNOVATION RETENTION • Mobile Pay
Slide 10: Business review: Morocco mobile customer base
Business review MOROCCO Mobile Customer base Market share (In thousands) 16,890 + 19.8% 53% +10.6% 817 751 15,272 731 + 10.2% 706 682 16,073 • Maroc Telecom maintains 15,989 15,173 its strong leadership in the 14,590 14,872 high value segment (66% market share in the postpaid) Q4-09 Q1-10 Q2-10 Q3-1
Slide 11: Mobile in Morocco: ARPU & usage
Mobile in Morocco ARPU & USAGE Blended ARPU (MAD / customer / month) • Limited decline of the ARPU despite the mobile termination -4.7% rate decrease 98 94 95 93 91 2009 3m 6m 9m 2010 Blended outgoing usage (Minutes / customer/ month) ~ • Stable usage despite the growth of the customer base 52 51 51
Slide 12: Mobile in Morocco: strong growth of mobile data
Mobile in Morocco STRONG GROWTH OF MOBILE DATA Non-voice outgoing Mobile Revenues +25% 10.5% • Outgoing SMS: +38% • 3G dongles up by 3.2x in only 1 year % average bill • Generalization of Mobile Internet in all postpaid offers 8.7% • Mobile data growth will remain sustained in 2011 2009 2010 Non-voi
Slide 13: Mobile in Morocco revenues and EBITDA
Business review MOROCCO Mobile in Morocco (MADm) 63.4% 57.4% 62.5% 64.4% 62.2% -1.2pts 5,235 4,847 4,537 4,983 4,916 +1.4% 3,372 3,071 3,117 2,605 3,056 -0.5% Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Revenues EBITDA EBITDA margin • Continued growth of revenues through the growth of the customer base and the li
Slide 14: Highlights: Fixed-line & Internet in Morocco
Highlights FIXED-LINE & INTERNET IN MOROCCO FIXED-LINE DSL GROWTH OF THE CUSTOMER BASE CUTOMER BASE CORPORTATE STABILISATION GROWTH SUBSCRIBERS • DSL • 3-play offer: MTBox • Significant price cute • IPTV • Increase bandwidth • IP solutions • Unlimited voice plans speeds • Fixed-Line/Mobile • Unlimit
Slide 15: Fixed-line & Internet customer base
Business review FIXE-LINE & INTERNET IN MOROCCO Fixed-Line customer base Market share (In thousands) 1,234 ~ 1,231 98%(1) 369 372 376 375 377 158 155 154 150 146 (1)Excluding limited mobility 707 705 706 702 708 • The Fixed-line customer base is stabilized thanks to the enrichment of offers and Q4-0
Slide 16: Fixed-line in Morocco revenues and EBITDA
Business review FIXE-LINE & INTERNET IN MOROCCO Fixe-Line in Morocco (MADm) 47.1% 48.5% 47.8% 47.4% 47.5% +0.4pts 2,193 2,119 2,284 2,088 2,107 -7.7% 1,064 1,013 989 1,075 1,000 -7.0% Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Revenues EBITDA EBITDA margin • Competition from Mobile (decrease in Fixed-lines usage
Slide 17: Subsidiaries with promising results
Subsidiaries with promising results Mauritel Sotelma Photo Mauritania Mali 2010 vs 2009 2010 vs 2009 Mobile subs. (‘000) 2,162 +164% Parc subs. (‘000) 1,576 +17% Market share* 31% +12 pts Market share* 54% +3 pts Revenues (MADm) 1,575 +25.1% Revenues (MADm) 1,184 +7.1% * Q3 2010 vs Q4 2009 Source: D
Slide 18: Subsidiaries in Sub-Saharan Africa
Business review SUBSIDIARIES IN SUB-SAHARAN AFRICA % Group revenues (MADm) 42.4% 42.7% 2008 2009 2010 31.6% 5,609 12.8% 15.5% 17.7% 4,696 3,923 % Group EBITDA 2008 2009 2010 1,991 2,395 1,238 2008 2009 2010 7.0% 11.0% 12.9% Revenues EBITDA EBITDA margin • Further internationalization and sustained g
Slide 19: Annual Results 2010: Financial results
ANNUAL RESULTS 2010 Business Highlight review Financial Outlook results Résultats Annuels 2010 19
Slide 20: Consolidated income statement
Consolidated income statement In MADm 2009 2010 Chg* Revenues 30,339 31,655 +4,3% +4.3% Steady growth Operating expenses -12,191 -13,043 +7.0% of revenues EBITDA 18,149 18,612 +2.5% % revenues 59.8% 58.8% 5 -1.0pt Maintaining a high margin Operating income 14,008 14,335 +2.3% % revenues 46.2% 45.3%
Slide 21: Revenues & EBITDA
Revenues & EBITDA Revenues EBITDA (MADm) (MADm) +2.5% +4.3% 18,612 31,655 18,149 17,641 30,339 2,395 +20.3% 29,521 1,238 1,991 5,609 4,696 +19.4% 3,923 16,217 +0.4% 26,191 16,158 25,764 25,738 +1.7% 16,403 2008 2009 2010 2008 2009 2010 Sub-Saharan Africa Morocco Variations are calculated on released
Slide 22: Investments
Investments +12% 6,535 • Investments are down by 11% in Morocco, representing 16.2% of 5,847 revenues, and are focused on DSL, switching, backhauling • Huge Investments in the subsidiaries (41% of revenues) to increase 1,083 2,281 the coverage and the quality of networks (MADm) 1,873 -24% +10% +110%
Slide 23: Cash Flow Statement
Cash Flow Statement In MADm 2009 2010 Chg* EBITDA 18,149 18,612 +2.6% Maroc Telecom 16,158 16,217 0.4% Sub-Saharan Africa 1,991 2,395 20.3% CAPEX 5,847 6,535 6,535 11.8% CAPEX represents Maroc Telecom 4,763 4,253 -10.7% 20.6% of Sub-Saharan Africa 1,084 2,281 +110% revenues Change in working capital
Slide 24: Annual Results 2010: Outlook
ANNUAL RESULTS 2010 Business Highlights review Financial Outlook results Résultats Annuels 2010 24
Slide 25: 2011 Outlook
2011 Outlook IN MOROCCO IN SUB-SAHARAN AFRICA • Acceleration of GDP growth: • Maintaining sustained GDP +5.2% growth: +5.1% • Continued rollout of ambitious • Foreign Direct Investment investment projects: acceleration infrastructure, energy, etc… • Strong growth of Mobile • Inflation is under contr
Slide 26: 2011 Guidance
2011 Guidance Moderate growth in revenues Profitability to be maintained at high level 2010 Annual Results 26
Slide 27: Strategic thrusts
Strategic thrusts Investiments Synergies Innovations Maintaining Sustainable International Maintaining high leadership development expansion margins • Service quality • Opening up of • Coverage and • Costs control • Distribution isolated areas densification of • Improvement of the • Innovation • Red
Slide 28: Appendices
ANNUAL RESULTS 2010 Appendices Résultats Annuels 2010 28
Slide 29: Morocco
Morocco Population 31.9 million In MADm - IFRS 2009 2010 Chg. Revenues (net) 25,764 26,191 +1.7% GDP $ 91.7 billion Mobile 18,866 19,670 4.3% Fixed and Internet 9,312 8,507 -8.6% +4.0% in 2010e +5.2% in 2011e EBITDA 16,158 16,217 +0,4% % revenues 62.7% 61.9% -0,8pt Revenue per ≈ $ 4,773 in 2010e Ope
Slide 30: Mauritania
Mauritania Population 3.2 million In MADm - IFRS 2009* 2010 var. Revenues (net) 1,105 1,184 +7.1% GDP $ 3.5 billion Mobile 935 1,014 +8.4% Fixed and Internet 212 210 -0.6% +4.7% in 2010 +5.1% in 2011e EBITDA 548 578 +5.6% % revenues 49.5% 48.8% -0.7pt Revenue per ≈ $ 2,100 in 2010 Operating income 3
Slide 31: Burkina Faso
Burkina Faso Population 14.7 million In MADm - IFRS 2009 2010 var. Revenues (net) 1,693 1,802 +6.5% GDP $ 8.7 billion Mobile 1,162 1,276 +9.7% Fixed and Internet 770 799 +3.5% +4.4% in 2010 EBITDA 758 775 +2.3% +4.7% in 2011e % revenues 44.8% 43.0% -1.7pt Revenue per ≈ $ 1,341 in 2010 Operating inco
Slide 32: Gabon
Gabon Population 1.5 million In MADm - IFRS 2009 2010 var. Revenues (net) 1,220 1,044 -14% GDP $ 12.6 billion Mobile 688 575 -16.4% Fixed and Internet 615 572 -7.1% +4.5% in2010 EBITDA 476 429 -9.8% +5.0% in 2011 % revenues 39.0% 41.1% -2.1pts Revenue per ≈ $ 14,865 in 2010 Operating income 214 169
Slide 33: Mali
Mali Population 14 million In MADm - IFRS 2009* 2010 Chg Revenues (net) 1,258 1,575 25.1% GDP $ 9,5 billion Mobile 942 1,247 32.3% Fixed and Internet 332 328 -1.4% +4.5% in 2009e EBITDA 342 616 +80% +5.1% in 2010e % revenues 27.2% 39.1% +11.9pts Revenue per ≈ $ 1,207 in 2010 Operating Income -2,4 23
Slide 34: Regulatory environment in Morocco
Regulatory environment in Morocco • 2010-2013 regulatory guide path : • Decrease of the mobile termination rates • Asymmetric tariffs converging at end of 2012 Mobil Termination Rates (MAD/Min) Wana 1,065 Méditel 0,866 0,923 IAM 0,866 0,749 0,664 0,66 0,539 0,447 0,468 0,404 0,365 0,333 0,333 0,333