Mtn Group Limited · JSE:MTN
Mtn — Investor Day (2016)
106 slides from Mtn's investor day presentation, 2016
Slide 1: MENA Overview
MENA Overview Ismail Jaroudi – VP MENA
Slide 2: Agenda
AGENDA 1 Overview 2 MTN Syria 3 MTN Sudan 4 MTN Yemen 5 MTN Afghanistan 6 MTN Cyprus 7 Looking ahead
Slide 3: MENA overview
MENA overview • Subscriber growth of 2.7% across the region(Q3 16 vs. Q3 15) • Improved economic outlook expected for Yemen in 2018 • Good EBITDA growth in Syria, Sudan and Cyprus • Afghanistan and Yemen EBITDA affected by the drop in revenue performance • Yemen EBITDA further affected by the licenc
Slide 4: MTN Syria
ci MTN Syria
Slide 5: Syria – country overview
Syria – country overview Population 17.0m Market share 40.9% Penetration 84% Economics GDP per capita $1 000 (2016 forecast) Inflation 48% Exchange rate US$ = 540 SYP Demographics Language Arabic Religion 90% Muslim, 10% Christian 5
Slide 6: Syria – country overview
Syria – country overview The state of unrest still dominates the country • Impact of unrest resulted in: Gross domestic product (GDP) (US$bn) - Decreased population by 40% from 2011 to 2015 35 - Exterminated poverty index increased to 25% in 2016 30 vs.11.2% in 2010 25 20 - Depreciation of currency
Slide 7: Syria – market overview
Syria – market overview • Number of people displacement by end of 2016 will reach Market share vs Penetration 4.3 million 100% • Regulator has the right to grant a 3rd entrant a mobile license 80% • Competition is investing aggressively on their network 60% mainly on Mobile Broadband (MBB) and hybri
Slide 8: Syria – market players
Syria – market players Syrian Telecom MTN Syritel (fixed line) Launch date 2001 2001 1975 (BOT effective Jun 02) Subscribers 5.9m (Sep 16) 8.6m (Sep 16) 3.5m (Apr 16) Coverage 75% geographical N/A N/A 98% population Shareholders MTN 75% Drex Technologies Syrian government Teleinvest 25% 8
Slide 9: Syria – management structure
Syria – management structure CEO Ziad Sabah GM: GM: CO: CO: CO: SM: GM: Bus. Risk Cust. Care HR Operating Finance Consumer Sales & Dist. Maher Samer Ahmad Abdallah Kamal Ghiath Tarek Bairakdar Kaddouh Ramadan Homsi Santina Bazerbashi Noureddine GM: CO: Acting CO: Capital Proj. Technical IT Mohamad B
Slide 10: Syria – licence
Syria – licence Commenced in 1 January 2015 (conversion of BOT) Period 20 years Licence from commencement order date (6/1/2015), on a revenue share basis, renewable with new conditions Year 1 – 50 % of total revenues Fees Year 2 & 3 – 30 % of total revenues Year 4 to 20 – 20 % of total rev
Slide 11: Syria – operational performance
Syria – operational performance Launched Jun 2002 Market share 40.9% Population 17.0m Market size 2016 14.8m Penetration 84% Shareholding 75% Satisfactory performance despite a challenging environment Revenue SYP (million) Subscribers increased by 1.1% QoQ 55 860 53 280 Revenue increased 10.5%* • Su
Slide 12: Syria – coverage
Syria – coverage June 2016 June 2016 % land 63% % population 76% 2 915 (37% out of service Total number of sites sites) 3G population coverage 65% 12
Slide 13: Syria – looking forward
Syria – looking forward Opportunities Challenges 20 year licence Prolongation of crisis 3G and growth of data High inflation and currency depreciation Expected country rebuild Sanctions Educated population In-country skill shortage 13
Slide 14: MTN Sudan
MTN Sudan
Slide 15: Sudan – country overview
Sudan – country overview Population 37.6m Market share 33.8% Penetration 69% Economics GDP per capita $1 850 Inflation 19% Exchange rate US$ = 8.73 SDG Demographics Language Arabic Religion Islam, Christian 15
Slide 16: Sudan – country overview
Sudan – country overview The country still suffers tension with South Sudan – disputed borders and oil revenue • Impact of unrest resulted in: Gross domestic product (GDP) (US$bn) - Degradation of economic climate – consumer 85 84 consumption behaviour changes 80 - Increased poverty and unemployment
Slide 17: Sudan – market overview
Sudan – market overview • Negotiating LTE licence with regulator Market share vs Penetration • Mobile Money regulations are being redrafted – launch 80% expected in December 2016 70% • Competition is investing aggressively on new 60% 50% technologies (e.g. LTE) and coverage areas 40% • Competitors o
Slide 18: Sudan – market players
Sudan – market players Zain Sudani Sudatel Canar MTN (previously Mobitel) (CDMA) (fixed line) (Limited mobility) Launch date 2005 1997 2006 1993 2006 Subscribers 7.7m (Sep 16) 9.5m (Sep 16) 4.6m (Sep 16) 0.23m (Sep 16) 0.014m (Sep 16) Coverage 54.74% N/A N/A N/A N/A Shareholders MTN (85%) MTC Sudate
Slide 19: Sudan – management structure
Sudan – management structure CEO Malik Melamu CFO GM:HR CTO CIO GM: CS GM: CEX GM: BRM CMO GM: S&D Ali Nasreldin Nabil Ahmed Abdalla Elfadi Wardi Daniel Acting Open Amir Babiker Baalbaki Mukhtar Ali Fayet Mohammod Udochi Mustafa Wardi 19
Slide 20: Sudan – licence
Sudan – licence Granted in October 2004 Period Effective commercial launching date 4 April 2005 20 years renewable thereafter from commercial launching date Fees 150 million Euro 900MHz band 9.6 MHz Spectrum / technologies 1800MHz band 10 MHz 2100MHz band 15 MHz Coverage 60% of
Slide 21: Sudan – operational performance
Sudan – operational performance Launched Sep 2005 Market share 33.8% Population 37.6m Market size 2016 30.3m Penetration 69% Shareholding 85% Progress in tough conditions Revenue SDG (million) Subscribers decreased 13.0% to 7.7 million 1 641 Revenue increased by 15.7%* 1 430 • Data revenue increased
Slide 22: Sudan – coverage
Sudan – coverage June 2016 % land 16.6% % population 54.7% Total number of sites 2 038 3G population coverage 33.6% 22
Slide 23: Sudan – looking forward
Sudan – looking forward Opportunities Challenges Mobile Money and EBU Customer experience Data and smartphone penetration Regulatory demands Youth brand and affordability perception Aggressive competition OTT’s Exchange rates and availability of hard currency 23
Slide 24: MTN Yemen
MTN Yemen
Slide 25: Yemen – country overview
Yemen – country overview Population 27.1m Market share 42.8% Penetration 46% Economics GDP per capita $1 096 Inflation 30% Exchange rate US$ = 320 YER Demographics Language Arabic, English Religion Islam 25
Slide 26: Yemen – country overview
Yemen – country overview Fully fledged military conflict since 2015 • Unrest has resulted in: Gross domestic product (GDP)* (US$bn) - Yemen’s GDP contraction of 28% in 2015 40 37 - Lack of skilled specialised resources 35 35 31 32 - Destruction of country’s infrastructure 30 • Recovery for the count
Slide 27: Yemen – market overview
Yemen – market overview • Coalition countries (Gulf states) committed to financing Market share vs Penetration the rebuilding of the country. 47% • MBB licence expected to be granted end 2017/beginning 46% 2018 45% • Yemen Mobile enjoying monopoly over MBB service – 44% providing fast data service a
Slide 28: Yemen – market players
Yemen – market players Public Tele- MTN Sabafon Yemen Mobile Hits Unitel “Y” communication Corporation Launch date July 2000 February 2001 November 2004 December 2007 1982 (15yr GSM (expected) Fixed line license licence) Subscribers 5.3m (Sep 16) 2.4 m 4m 0.8 m 1.2 m Coverage Geographical – *Geograp
Slide 29: Yemen – management structure
Yemen – management structure CEO Raed Ahmad Deputy CEO / Corp Affairs Ali Abdul Wareth Hashem BRM SM CFO CMO GM HR GM S,D & CRD CTO CIO Ahmed Abdullah Malek Mohammad Houssam Tamer Mahmoud Abdulkader Madari El Koussa Nasher Abdul Khorbotly Saad Dayem 29
Slide 30: Yemen – licence
Yemen – licence 29 months extension to the current license to Dec 2017 by which time a renewal of the original license Period for another 15 years will be negotiated US$36.4m was paid for the extension Fees The full 15 year license renewal amount has still to be negotiated Spectrum / 900 MHZ
Slide 31: Yemen – operational performance
Yemen – operational performance Launched Jul 2000 Market share 42.8% Population 27.1m Market size 2016 12.5m Penetration 46% Shareholding 83% A challenging environment impacted growth Revenue ZAR (million) Subscribers flat at 5.3m 3 691 3 371 Revenue decreased 3.7%* • Offset by 10.9%* increase in da
Slide 32: Yemen – coverage
Yemen – coverage June 2016 % land 57.1% % population 70.7% Total number of sites 1 414 3G population coverage 0% 32
Slide 33: Yemen – looking forward
Yemen – looking forward Opportunities Challenges Fast growing MBB business Civil war impact on operations MFS – digital, Mobile Money Lack of independent regulatory body Coverage superiority, especially in rural and untapped Delayed MBB license areas Possibility of loss of revenue from
Slide 34: MTN Afghanistan
MTN Afghanistan
Slide 35: Afghanistan – country overview
Afghanistan – country overview Population 33.5m Market share 37.8% Penetration 52% Economics GDP per capita $624 Inflation 6% Exchange rate US$ = 65.95 AFN Demographics Language Pashtu, Dari Religion Islam 35
Slide 36: Afghanistan – country overview
Afghanistan – country overview Challenging operating environment • Impact of unrest resulted in: Gross domestic product (GDP) (US$bn) - Migration of high- and middle-class 22 - Loss of skilled resources 20.5 20.3 20.1 - High poverty and unemployment rate 20 19.2 - Negative output gap 17.9 - Currency
Slide 37: Afghanistan – market overview
Afghanistan – market overview • New telecom tax – 10% Market share vs Penetration • Fifth operator commenced its operations destroying value 60% in the market 50% • Irrational competitor behaviour 40% • Improved network availability 30% 20% 10% 0% Dec 2014 Dec 2015 Jun 2016 Market share Penetration
Slide 38: Afghanistan – market players
Afghanistan – market players MTN Roshan AWWC SALAM Etisalat Launch date 2006 2003 2002 2013 2007 Subscribers 6.5m (Sep 16) 5.9m 3.2m 1.0m 5.7m Coverage 78% 69% 58% 27% 65% Shareholders MTN AKFED (major) 20% Ministry of Afgan Telecom Etisalat UAE MTI Communications (Government) MCT Ehsan bayat 38
Slide 39: Afghanistan – management structure
Afghanistan – management structure CEO Hassan Ibrahim Jaber Chief GM: Chief Mkt. Chief Tech GM: Sales & GM: Cust CFO GM: Corp GM: Info System HR Officer Officer Distribution Relations Services EBU & MM Fareed Alex Raul Ernesto Raad Mohamamd Mohammad Marius Hidayatullah Tarek Soliman Tayar D’Souza Ve
Slide 40: Afghanistan – licence
Afghanistan – licence The 3G licence obtained on Jun 20, 2012 for a term of (15) years against a one time non refundable fee of US$ 25 million Period The GSM licence acquired on October 15, 2005 for a one-time non-refundable fee of US$ 40.1 million for the period of 15 years The licence will b
Slide 41: Afghanistan – operational performance
Afghanistan – operational performance Launched Jul 2006 Market share 37.8% Population 33.2m Market size 2016 17.6m Penetration 52% Shareholding 100% Performance impacted by challenging environment Revenue ZAR (million) Subscribers flat at 6.5m 2 824 2 694 Revenue decreased 17.9%* • Offset by 66.7%*
Slide 42: Afghanistan – coverage
Afghanistan – coverage June 2016 % land 42.8% % population 78.0% Total number of sites 1 241 3G population coverage 38% 42
Slide 43: Afghanistan – looking forward
Afghanistan – looking forward Opportunities Challenges Drive data revenue – data devices and data bundling General security MFS – Mobile Money & Digital Lack of skilled resources Expanding 3G coverage and enhancing 3G service Irrational competitor behaviour (quality and speed) Increase
Slide 44: MTN Cyprus
MTN Cyprus
Slide 45: Cyprus – country overview
Cyprus – country overview Population 0.8m Market share 38.9% Penetration 109% Economics GDP per capita $27 377 Inflation -0.7% Exchange rate US$ = 0.92 EURO Demographics Language Greek, English, Turkish Religion Christian Orthodox, Islam, Maronite 45
Slide 46: Cyprus – country overview
Cyprus – country overview Cyprus, a member of the EU, is in recovery mode • Impact of financial crisis resulted in: Gross domestic product (GDP) (EURm) - Negative GDP growth for 3 years 20 000 19 776 19 504 - Increasing unemployment 19 000 - First bail measures in Europe 18 119 • Ongoing discussions
Slide 47: Cyprus – market overview
Cyprus – market overview • Recent spectrum auction for three blocks of 800/2600 Market share vs Penetration MHz – MTN and CYTA acquired; one block still 120% unallocated 100% • Telecoms under pressure – regulators, OTT’s, saturation 80% • CYTA aggressive network investment plan 60% • Cablenet – MVNO
Slide 48: Cyprus – market players
Cyprus – market players Cytamobile – Vodafone, CyTA, PrimeTel, Cablenet MTN PrimeTel (fixed line) Launch date 2004 Cyta: 1988 CyTa: 1961 PrimeTel: 2011 PrimeTel: 2003 Cablenet: 2003 Subscribers 407k (Sep 16) 563k (Sep 16) 252k (Dec 15) Coverage Almost 100% Almost 100% Almost 100% Shareholders MTN 10
Slide 49: Cyprus – management structure
Cyprus – management structure CEO Philip van Dalsen CFO CCO CTIO Bus. Sales Commercial Bus. Risk & Head Stoyanka Thanos Cosmas Director & Legal SM Audit SM of HR Stylianaki Chronopoulos Adam Andreas Evridiki Ariana Maria Neocleous Papadopolou Pantazi Sergiou 49
Slide 50: Cyprus – licence
Cyprus – licence 900MHz, 1800MHz and 2100MHz 2003 Period 20 years, renewable Fees 22.9 million Euros 900MHz, 1800MHz and 2100MHz Spectrum / technologies GSM UMTS 4G Technological neutrality applies GSM UMTS - 50% 01.12.2005 - 60% 01.12.2013 Coverage - 75% 01.12.2007 - 70% 31.10.2015
Slide 51: Cyprus – licence
Cyprus – licence 800MHz and 2600MHz Period 05 September 2016 – 05 September 2028 Fees 6 million Euros Spectrum / technologies LTE 50% 31.12.2018 Coverage 75% 31.12.2020 51
Slide 52: Cyprus – operational performance
Cyprus – operational performance Launched Jun 2003 Market share 38.9% Population 0.8m Market size 2016 1m Penetration 109% Shareholding 100% Operational growth despite a challenging environment Revenue ZAR (million) Subscribers increased by 5.5% Revenue increased 4.6%* 1 509 1 494 • Supported by 109
Slide 53: Cyprus – coverage (2G)
Cyprus – coverage 2G June 2016 % land 97.8% % population 99.4% Total number of 2G sites 579 53
Slide 54: Cyprus – coverage (3G)
Cyprus – coverage 3G June 2016 % land 72.3% % population 90.0% Total number of 3G sites 468 54
Slide 55: Cyprus – coverage (4G)
Cyprus – coverage 4G June 2016 % land 17.2% % population 59.3% Total number of 4G sites 206 55
Slide 56: Cyprus – looking forward
Cyprus – looking forward Opportunities Challenges Increase broadband base via cross selling: MTR European regulatory pressures Fixed broadband Roaming rates to be abolished in 2017 Mobile home broadband Competition is expected to intensify in 2017 – CYTA, PrimeTel and Cablenet TV offer
Slide 57: Looking ahead
Looking ahead
Slide 58: VP priorities for the region
VP priorities for the region 1. Regional synergies 2. Business development 3. Organic growth 4. Cash upstreaming 5. Business continuity (including recovery of halted sites in Afghanistan) 6. High-value customers 7. Network experience 8. Data revenue growth and smartphone penetration 9. Digital reven
Slide 59: Questions
Questions
Slide 60: Thank you
thank you everywhere you go
Slide 61: Disclaimer
Disclaimer The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions
Slide 62: MENA Investor Day: MTN Irancell COO presentation
MENA Investor Day MTN Irancell COO presentation
Slide 63: Agenda
AGENDA 1 Overview 2 MTN Irancell 3 Licences and coverage 4 Looking ahead
Slide 64: Country overview – macroeconomic indicators
Country overview – macroeconomic indicators Area 1 648 195 km2 Capital Tehran No. of provinces 31 Languages Persian (Farsi) Literacy rate 93% Population 80.6 million Major cities Tehran 8.846 m Mashhad 2.749 m Isfahan 1.945 m Tabriz 1.549 m Shiraz 1.461 m Median age 28 years GDP (PPP): Per capita $1
Slide 65: Geopolitical overview
Geopolitical overview Political environment Economic environment • International economic sanctions lifted in early 2016 • Tehran is the country's capital and largest city as well as • Presidential Elections to be held in early 2017 its leading economic center • Political stability and security • In
Slide 66: Market overview
Market overview MTN Irancell MCI Rightel Shareholding MTN 49% TCI Holding 90% Social Security IEDC 51% Stock Exchange 10% Organization 100% Launch date Oct 2006 1993 2010 Subscribers 48 m 52 m 3m Suppliers Huawei Nokia Huawei Ericsson Huawei Nokia Ericsson Coverage (mobile) 86% 96% N/A Market share
Slide 67: Market dynamics
Market dynamics • Second-largest country in the Middle East and the 18th-largest in the world. • The world's 17th-most-populous country, population is projected to stabilize above 105 million by 2050 • The only country with both a Caspian Sea and an Indian Ocean coastline • Over five million tourist
Slide 68: Operational performance – June 2016
Operational performance – 30 June 2016 Launched Oct 2006 Market share 46.4% Population 80.6m Market size 2016 101m Penetration 126% Shareholding 49% Revenue growth of 8.7%* supported by increased data revenue growth Revenue IRR (billion) (100%) Subscriber growth of 2.0% to 47.3 million 63 319 56 726
Slide 69: Licence conditions
Licence conditions Granted Nov 2005 Effective July 2006 Period 15 years Renewable 2 periods of 5 years Protection period: not to issue any new license for 2 years from the effective date GSM license Initial fee €300m Each contractual year 28.1% of revenue (min of 80% of B.P revenue)
Slide 70: Spectrum update
Spectrum update • On 24 August 2014, mobile broadband license for 3G and Spectrum allocated to MTN Irancell Frequency band higher was awarded to MTN Irancell. Type of operating licence (MHz) • On 23 August 2015, TD-LTE license was awarded to MTN Irancell which allowed the company to convert its GSM
Slide 71: Coverage
Coverage Population coverage: 86% 2G Rollout: 1 199 cities Road coverage: 33 718 Km Population coverage: 44% 3G Rollout: 568 cities including capitals of all provinces Population coverage: 23% 4G Rollout: 228 cities including capitals of all provinces 71
Slide 72: Looking ahead
Looking ahead Commercial analysis Opportunities Threats Leading mobile data service provider Dependency on government organisations for national and international bandwidth Anticipated GDP growth next years Coverage gap vs. competition including indoor Leverage MNP to attract HVCs Access
Slide 73: Questions
Questions
Slide 74: MENA Investor Day: MTN Irancell CFO presentation
MENA Investor Day MTN Irancell CFO presentation
Slide 75: Agenda
AGENDA 1 Key performance matrix 2 Revenue 3 Expenditure 4 Income Statement 5 Balance Sheet
Slide 76: Key performance matrix (IRR b)
Key performance matrix (IRR b) Revenue Expenditure 31 038 8.7% 33 739 13.9% 21 023 27 261 20.7% 18 581 13.1% 15 395 June 2014 June 2015 June 2016 June 2014 June 2015 June 2016 EBITDA Data and Digital revenue 13 710 12 717 65.3% 2.1% 2.8% 12 458 8 295 12 117 88.5% 4 400 June 2014 June 2015 June 2016
Slide 77: Revenue analysis
Revenue analysis Data & Digital revenue up 65.3% due to • Up 65.3% due to aggressive 3G and LTE roll out and an increase in smartphones and data users 13 710 13 620 Airtime revenue 12 986 • Decline in MOU as a result of increase usage of voice over OTT applications and highly competitive pricing in
Slide 78: Expenditure
Expenditure Revenue share and regulatory fees • Increased 8% in line with revenue growth 9 509 8 815 Interconnect • Decreased by 16% due to an increase in on-net traffic Network costs • Increased by 13% due to an increase in the new sites and technology changes Transmission cost • Increased by 162%
Slide 79: Expenditure
Expenditure Commission and discounts • Increased by 11% aligned to commission related revenue increases and an increase in device sales Digital costs • Increased by 31% aligned to the increase in digital revenue, taking into account the change in the nature of the content • Content costs are mainly
Slide 80: Income statement
Income statement IRR bn H1 2016 H1 2015 Var H1 2014 FY 2015 FY 2014 Revenue 33 739 31 038 8.7% 27 261 63 319 56 727 EBITDA 12 717 12 458 2.1% 12 117 26 200 24 298 EBITDA margin % 37.7% 40.1% (2.4%) 44.4% 41.4% 42.8% EBITDA margin % excl RS & RF 65.9% 68.5% (2.6%) 70.8% 69.3% 69.7% Depreciation 4 068
Slide 81: Balance sheet
Balance sheet IRR bn H1 2016 H1 2015 H1 2014 Non-current assets 55 821 44 370 33 199 PPE 46 534 35 780 23 499 Intangible assets 6 173 6 288 3 155 Other 3 115 2 301 6 545 Current assets 64 795 55 865 44 764 Bank & restricted cash 48 225 37 322 30 491 Other 16 570 18 543 14 273 Total assets 120 617 10
Slide 82: Questions
Questions
Slide 83: MENA Investor Day: MTN Irancell CMO presentation
MENA Investor Day MTN Irancell CMO presentation
Slide 84: Agenda
AGENDA 1 Competitive landscape 2 Market share 3 Digital 4 Data 5 Distribution 6 Commissions
Slide 85: Competitive landscape
Competitive landscape Q1 2016 Q2 2016 Q3 2016 • 800 MB free internet for new subs • Handset on installment • Hamrahi’ lucky draw ~$300k monthly prize • Handset on Installment • Free SIM campaign (One SIM for every money • Free SMS on recharge Iranian) • Voice subscription offers – ERM ~$0.004 • Go t
Slide 86: Market share
Market share • MTN Irancell gained market share in Q4 2015 through Market share 0.32% 0.31% 0.30% 0.30% aggressive voice offers (the Amazing Offers campaign) 2.39% 2.72% 2.72% 2.94% • RighTel market share growth in Q2 2016 driven by aggressive price offers across voice, SMS and data 51.37% 50.66% 50
Slide 87: Digital
Digital • Digital subscriber is almost flat in Q3 2016 vs. Q2 Subscribers (million)* • RBT, Vitrin (MTN Play), and SDP services remain key 21.0 20.7 20.7 20.7 drivers 20.5 • Revenues up 43% in H1 2016 vs. same period last year 20.0 • Anticipating stable performance in the remainder of the 19.5 19.5
Slide 88: Data – data users, MB/user and smartphones
Data – data users, MB/user and smartphones Data users (Q3 2016- 26 million unique customers) Strong growth driven by • Smart coverage; rollout and modernisation 24 (92%) • Adoption of smartphones; including 4G handsets and 18 (69%) devices – over 50% penetration • Provision of 4G devices by MTN Iran
Slide 89: Smartphone strategy
Smartphone strategy Smartphone Penetration – 2016 On the supply side… • Dealing with OEMs to bring in 4G capable devices – 56.4% a la Samsung, Huawei • Importing MTN branded phones – first 5k brought in to test the market • Working with device resellers (dealers) to offer MTN Irancell SIMs with thei
Slide 90: Distribution channel
Distribution channel One of the key sales strategies is development digital sales channel including • USSD sales • E-Shop sales • Tele sales • Mobile app sales • IVR sales Point of sales Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Distributor 25 25 26 28 28 30 30 Dealers 14 520 14 732 15
Slide 91: Sales channels, commissions & discounts
Sales channels, commissions & discounts Airtime sales channel (%) Commissions & discounts 2015 2016 50 Effective discount rate on voucher 3.2% 3.3% & Echarge 40 30 Commission & discount on SIM (LC’ IRR) 15 888 19 189 20 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Discount rate on device
Slide 92: Questions
Questions
Slide 93: MENA Investor Day: MTN Irancell CTO presentation
MENA Investor Day MTN Irancell CTO presentation
Slide 94: Agenda
AGENDA 1 Overview 2 Network performance 3 Coverage 4 Managed services
Slide 95: Overview - operating environment
Overview - operating environment Building a superior data network 10 362 On-air 2G Sites in 3 242Cities 7 102 On-air 3G-2100 Sites in 1 336 Cities Highlights 4 014 On-air LTE-1800 Sites in 314 Cities 1 605 On-air LTE-TDD Sites in 70 Cities Data usage 1100 TB per day Continuous improvemen
Slide 96: 2015 and 2016 capex spend
2015 and 2016 capex spend Network investment 2016 rollout (2015 and H 2016) 10% 9% • 2G roll out – YTD new sites 344 added 3% (Total sites 10 351) 13% • 3G roll out – YTD new sites 2120 added (Total sites 6 714) • LTE roll out – YTD new sites 1 467 added (Total sites 3 354) 65% • WiMAX roll out – 94
Slide 97: Quality indicators (availability, quality, coverage)
Quality indicators (availability, quality, coverage) Throughput 145 Gbps – peak hour NPS User data speed & traffic distribution 22% 23% • 2G 15% 19% 15% 15% 17% - 109 Kbps 23% 13% - Taking 6 % of mobile data traffic 10% 10% 5% 7% -14% -17% 2% • 3G -26% - 1.9 Mbps -17% -22% - Taking 60% of mobile dat
Slide 98: Network performance – quality indicators
Network performance – quality indicators Network availability graph Plan progress 100 2G Planned # 11 162 93% On-air # 10 362 99 3G Planned # 9 855 72% 98 On-air # 7 102 4G Planned # 5 911 68% 97 On-air # 4 014 Jan Feb Mar Apr May Jun Jul Aug Sept Oct 2016 2016 2016 2016 2016 2016 2016 2016 2016 201
Slide 99: MPR score
MPR score Promoters Detractors and passives 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% Increased 50% promotion 40% for MTN 40% Irancell 30% 30% Network 20% this 20% quarter 10% 10% 0% 0% MTN Irancell MCI/TCI RighTel MTN Irancell MCI/TCI RighTel Network quality Price and special offers Network qua
Slide 100: 2G coverage map
2G coverage map No. of sites 10 362 No. of cities / villages 3 242 100
Slide 101: 3G coverage map
3G coverage map No. of sites 7 102 No. of cities / villages 1 336 101
Slide 102: 4G coverage map
4G coverage map No. of sites 4 014 No. of cities / villages 314 102
Slide 103: Managed services
Managed services MTN Irancell Operation Management (Regional and Central) MTN Irancell SVMS process supervision • Hourly follow up of down cells/sites and network Network Performance Back Office availability • Weekly analysis on the root cause of availability Field Manintenance degradation • Deep in
Slide 104: Questions
Questions
Slide 105: Thank you
thank you everywhere you go
Slide 106: Disclaimer
Disclaimer The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions