Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — FY2013 Earnings Presentation
39 slides from Maroc Telecom Sa's earnings presentation, Feb 13, 2014
Slide 1: Annual Results 2013
ANNUAL RESULTS 2013 February 13, 2014 1 Résultats annuels 2013
Slide 2: Highlights
Highlights Continued STEADY STABILIZED ACCELERATED GROWTH IN GROWTH MARGINS MODERNIZATION CUSTOMER in international ranking among of fixed-line and BASE activities the sector’s highest mobile high-speed networks 2 Annual Results Résultats 2013 annuels 2013
Slide 3: Economic Environment
Group Business Financial Outlook Performance Review Results ECONOMIC ENVIRONMENT MOROCCO 5.0% 4.8% 4.2% • Steady economic growth in 2013, thanks to agriculture 2.7% • Stabilization of growth projected for 2014 • End of subsidies for gasoline and fuel oil expected to affect inflation 2011 2012 2013 2
Slide 4: Mobile Markets Still Dynamic
Group Business Financial Outlook Performance Review Results MOBILE MARKETS STILL DYNAMIC A continually growing market MOROCCO Insufficient elasticity to price cuts +16.1% +10.7% Source : ANRT Source: ANRT -23% Mobile market (M customers) Penetration rate (%) Outgoing usage (min) Outgoing mobile aver
Slide 5: Growth in International Business Sustaining Group Performance
Group Business Financial Outlook Performance Review Results GROWTH IN INTERNATIONAL BUSINESS SUSTAINING GROUP PERFORMANCE Growth in mobile, fixed-line and internet customer bases (2013 vs. 2012 in %) +47.3% +28.8% +33.2% 13.3% growth, to 37 millions customers, in Group customer base +17.8% • Morocco
Slide 6: Success of International Development Strategy
Group Business Financial Outlook Performance Review Results SUCCESS OF INTERNATIONAL DEVELOPMENT STRATEGY % Customer base 2011 2012 2013 Morocco International 35% 40% 45% % Group revenues 2011 2012 2013 Morocco 20% 23% 27% International 6 Annual Results Résultats 2013 annuels 2013
Slide 7: Expedited Network Modernization
Group Business Financial Outlook Performance Review Results EXPEDITED NETWORK MODERNIZATION Offering the latest technology Change in 3G coverage Change in number of Single RAN sites (% of population covered) (% of total Radio sites) • More than 2,000 site deployments in 2013 Morocco’s • Significant
Slide 8: Expansion of Distribution Network
Group Business Financial Outlook Performance Review Results EXPANSION OF DISTRIBUTION NETWORK Improving service and forging closer ties with customers Branches for the general public MOROCCO Modernizing and expanding the sales network by improving local presence, customer loyalty, and overall consum
Slide 9: Results in Line with Targets
Group Business Financial Outlook Performance Review Results RESULTS IN LINE WITH TARGETS EBITDA margin maintained at a substantial 56% (approx.) • High level sustained in Morocco (57.8%) as a result of cost cutting Target Reported • Strong increase internationally (+3.7 pts, to 50.4%) 56% 56.8% li
Slide 10: Very Attractive Dividend Yield Maintained
Group Business Financial Outlook Performance Review Results VERY ATTRACTIVE DIVIDEND YIELD MAINTAINED Proposed distribution of MAD 6 per share 100% of distributable earnings Yield of 6.1%* * Based on the share price at February 12, 2014 (MAD 97.99). 10 Annual Results Résultats 2013 annuels 2013
Slide 11: Business Review
BUSINESS REVIEW Financial Results Outlook Annexes Résultats annuels 2013
Slide 12: Steady Fall in Prices Partly Counterbalanced by Increased Usage
Group Business Financial Mobile - Morocco Outlook Performance Review Results STEADY FALL IN PRICES PARTLY COUNTERBALANCED BY INCREASED USAGE “Pass” and “Multiple Top-Ups” promotional days per quarter Increased frequency of promotional offers • “Permanent Pass” promotion throughout Q4 2013 • Launch i
Slide 13: Monetizing Consumption: The Case of 3G Internet
MONETIZING CONSUMPTION THE CASE OF 3G INTERNET Change in revenue from data top-ups Change in revenue from data top-ups Prepaid Postpaid x5 x3 avantoverhaul Before la refonte ofdu parcours top-up client procedure après la refonte after overhaul ofdu parcours top-up client procedure avant monétisation
Slide 14: Solid Growth in Customer Base
Group Business Financial Mobile - Morocco Outlook Performance Review Results SOLID GROWTH IN CUSTOMER BASE Mobile customer base (thousands) +1.9% 18,193 17,855 • Continued growth in customer base, bolstered by the prepaid +15.1% (+157,000 new customers) and high-value postpaid (+181,000 new +0.9% cu
Slide 15: Focus on Mobile Revenue
Group Business Financial Mobile - Morocco Outlook Performance Review Results FOCUS ON MOBILE REVENUE Mobile revenue Mobile services revenue (MAD millions) (MAD millions) Services Equipment Outgoing Incoming 17,477 -10.1% 498 15,719 16,979 -9.2% 303 15,416 -39.2 % 3,509 3,230 -8.0% -9.2% 16,979 15,41
Slide 16: Focus on Fixed-Line Business
Group Business Fixed and internet Financial Morocco Outlook Performance Review Results FOCUS ON FIXED-LINE BUSINESS Fixed-line and internet customer base Fixed-line and internet revenue (thousands) (MAD millions) Fixed line Broadband Voice Data** Intra-Maroc Telecom LL 7,391 6,670 +10.8% 1767 922 +9
Slide 17: Strong Business Growth Driven by Expansion of Customer Bases
Group Business Financial International Outlook Performance Review Results STRONG BUSINESS GROWTH DRIVEN BY EXPANSION OF CUSTOMER BASES AND INCREASED MARKET SHARE Mauritania Customer base Revenue Burkina Faso Revenue (thousands) Customer base (MAD millions) (MAD millions) 61% (thousands) 59% +6.4%(1)
Slide 18: Financial Results
Business Review FINANCIAL RESULTS Outlook Annexes Résultats annuels 2013
Slide 19: Consolidated Results
Group Business Financial Outlook Performance Review Results CONSOLIDATED RESULTS MAD millions 2012(2) 2013 Change like for like REVENUES 29,849 28,559 -4.3% EBITDA 16,720 16,213 -3.0% Margin (%) 56.0% 56.8% +0.8 pt EBITA 10,968 10,978 +0.1% Margin (%) 36.7% 38.4% +1.7 pts NET EARNINGS (GROUP SHARE)
Slide 20: Maroc Telecom Group Consolidated Cash Flows
Group Business Financial Outlook Performance Review Results MAROC TELECOM GROUP CONSOLIDATED CASH FLOWS MAD millions 2012(1) 2013 Change like for like EBITDA 16,720 16,213 -3.0% Margin (%) 56.0% 56.8% +0.8 pt CAPEX 5,385 4,796 -10.9% CAPEX/CA (%) 18.0% 16.8% -1.2 pts EBITDA − CAPEX 11,336 11,417 +0.
Slide 21: Growth in International Revenues
Group Business Financial Outlook Performance Review Results GROWTH IN INTERNATIONAL REVENUES Group revenues MAD millions 29,849 International: +667 Morocco 28,559 -4.3% ∆ Interco 7,079 +235 -1,884 +101 +144 +187 -73 7,754 +9.5% Gabon Mali Mauritania Burkina Faso 23,178 International 21,294 Morocco -
Slide 22: EBITDA
Group Business Financial Outlook Performance Review Results EBITDA Group margin boosted by international margin EBITDA EBITDA margin MAD millions % ∆ EBITDA 16,720 Maroc Telecom 16,213 -3.0% +598 3,307 3,904 -1,106 ∆ international +18.0% Morocco EBITDA Group 13,414 12,308 -8.2% (1) International Cha
Slide 23: EBITA and Net Earnings Affected Chiefly by Decrease in EBITDA
Group Business Financial Outlook Performance Review Results EBITA AND NET EARNINGS AFFECTED CHIEFLY BY DECREASE IN EBITDA EBITA before Group EBITA restructuring MAD millions ∆ EBITDA ∆ depreciation & 11,846 Restructuring amortization 11,178 -5.6% charge 10,978 +0.1% International 1,826 -508 -160 -20
Slide 24: Continued Investment to Consolidate Our Network Leadership
Group Business Financial Outlook Performance Review Results CONTINUED INVESTMENT TO CONSOLIDATE OUR NETWORK LEADERSHIP Group CAPEX(1) CAPEX(1)/revenues MAD millions % 5,385 -10.9% 4,796 International -24.9% International -5.1% Group Morocco Morocco Change 12-13 Focus on Morocco CAPEX(1) MAD millions
Slide 25: Very Strong Growth of International Cash Flow
Group Business Financial Outlook Performance Review Results VERY STRONG GROWTH OF INTERNATIONAL CASH FLOW CFFO CFFO/EBITDA MAD millions % 11,834 ∆ Morocco ∆ International 11,644 -1.6% International Morocco +45.0% Group -9.1% Morocco International 2012 2013 Var. 13/12 ∆ EBITDA +189 ∆ WCR +716 -1,106
Slide 26: Low Consolidated Debt
Group Business Financial Outlook Performance Review Results LOW CONSOLIDATED DEBT NET DEBT MAD millions +11,645 Financial expenses Tax paid(1) -327 Settlement of tax dispute -2,488 Dividends to Dividends to 2012 minorities 2013 shareholders -1,500 -595 -7,111 -6,890 Other CFFO -6,502 -12 0.4x 0.4x N
Slide 27: Outlook
Business Review Financial Results OUTLOOK Annexes Résultats annuels 2013
Slide 28: Changing Regulatory Environment
Group Business Financial Outlook Performance Review Results CHANGING REGULATORY ENVIRONMENT MOROCCO: • Méditel is no longer considered by the ANRT to be a dominant operator on the mobile market, nor is Inwi considered to be a dominant operator. Maroc Telecom has thus become the sole dominant operato
Slide 29: Outlook for 2014
Group Business Financial Outlook Performance Review Results OUTLOOK FOR 2014 TRENDS IN 2014 MOROCCO INTERNATIONAL • Stimulation of mobile consumption • Growth in revenue and customer bases in all countries • Growth of data revenue • Rise in capital expenditures for network improvement • Confirmation
Slide 30: Annexes
Business Review Financial Results Outlook ANNEXES Résultats annuels 2013
Slide 31: Regulatory Environment in Morocco
Group Business Financial Outlook Annexes performances overview results REGULATORY ENVIRONMENT IN MOROCCO Mobile termination rates MAD/min 0.9232 Inwi 0.7485 0.6601 Méditel 0.6238 Maroc Telecom 0.5390 0.4679 0.4152 0.3390 0.2534 0.2943 0.2289 0.2066 0.1399 Jan 1, 2011 July 1, 2011 Jan 1, 2012 July 1,
Slide 32: Morocco
Group Business Financial Outlook Annexes Performance Review Results MOROCCO MAD millions 2012 2013 Change Revenues 23,178 21,294 -8.1% Mobile 17,477 15,719 -10.1% Services 16,979 15,416 -9.2% Equipment 498 303 -39.2% Fixed line 6,669 7,391 +10.8% Fixed-line data(1) 1,757 1,865 +6.2% Elimination -968
Slide 33: Morocco
Group Business Financial Outlook Annexes Performance Review Results MOROCCO Population 32.9 million Mobile 2012 2013 Change $104.8 billion Customer base (‘000) 17,855 18,193 1.9% GNP in 2013e ARPU (MAD) 78.6 69.0 -12.1% Per-capita ≈ $5,480 Market share(1) 45.8% 42.9% -2.9 pts income (PPP) Penetratio
Slide 34: International
Group Business Financial Outlook Annexes Performance Review Results INTERNATIONAL MAD millions 2012(1) 2013 Change Change like for like Revenues 7,079 7,754 +9.5% +9.5% Mauritania 1,375 1,476 +7.4% +9.4% Mobile services 1,257 1,357 +7.9% +10.0% Burkina Faso 2,067 2,211 +7.0% +6.4% Mobile services 1,
Slide 35: Mauritania
Group Business Financial Outlook Annexes Performance Review Results MAURITANIA Change like Population 3.7 million Mobile 2012 2013 for like $4.2 billion Customer base (‘000) 2,013 1,872 -7.0% GNP +6.4% in 2013e ARPU (MAD) 53.3 56.6 +6.2% Per-capita $2,208 in 2013e Market share(1) 60.8% 58.6% -2.2 pt
Slide 36: Burkina Faso
Group Business Financial Outlook Annexes Performance Review Results BURKINA FASO Change like Population 17.8 million Mobile 2012 2013 for like $12.1 billion Customer base (‘000) 3,872 4,643 +19.9% GNP +6.5% in 2013e ARPU (MAD) 39.5 36.1 -8.6% Per-capita $1,493 in 2013e Market share(1) 38.8% 38.3% -0
Slide 37: Gabon
Group Business Financial Outlook Annexes Performance Review Results GABON Change like Population 1.56 million Mobile 2012 2013 for like $20.0 billion Customer base (‘000) 777 1,041 +33.9% GNP +6.6% in 2013e ARPU (MAD) 79.2 80.7 +1.9% Per-capita $19,234 in 2013e Market share(1) 27.2% 28.6% +1.4 pts i
Slide 38: Mali
Group Business Financial Outlook Annexes Performance Review Results MALI Change like Population 16.9 million Mobile 2012 2013 for like $11.4 billion Customer base (‘000) 6,023 8,923 +48.1% GDP +4.8% in 2013e ARPU (MAD) 33.2 25.9 -21.9% Per-capita $1,122 in 2013e Market share(1) 41.2% 43.2% +2.0 pts
Slide 39: Important Legal Notice
IMPORTANT LEGAL NOTICE FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and forecasts concerning the financial position, earnings from operations, strategy, and outlook of Maroc Telecom, as well as the impact of certain operations. Although Maroc Telecom may base its