Mobile Telecommunications Company K.S.C.P · KSE:ZAIN
Mobile Telecommunications Company K.S.C.P — Zain Group — 9M 2014 Earnings Presentation
28 slides from Mobile Telecommunications Company K.S.C.P's earnings presentation, 2014
Slide 1: Zain Group Financial Results Presentation 9 Months-2014
ZAIN GROUP Financial Results Presentation 9 Months-2014
Slide 2: Disclaimer
1 Disclaimer Mobile Telecommunications Company KSCP “Zain Group” has prepared this presentation to the best of its abilities, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions, estimates
Slide 3: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 4: Zain at a glance
3 Zain at a glance As of 9 Months-2014 43.7 13.3 4G 329 MILLION MILLION LONG TERM EVOLUTION TB OF DAILY ACTIVE CUSTOMERS IN (LTE) NETWORK IN DATA USAGE CUSTOMERS IRAQ KUWAIT, SAUDI ARABIA,BAHRAIN AND 108 11.1 LEBANON $ 3.3 BILLION MILLION PEOPLE UNDER MILLION CUSTOMERS IN REPUBLIC 141 IN REVENUES LI
Slide 5: The World of Zain
4 The World of Zain As of 9 Months-2014 Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $1,243 m Customers: 2.1 m Customers: 13.3 m Prepaid: 85% Prepaid: 98% Market Share: 48% Ownership: 100% Revenues: $935 m Customers: 2.7 m Ownership: 96.52% Prepaid: 74% Revenues: $353 m M
Slide 6: Key Performance Indicators as of Q3-2014
5 Key Performance Indicators as of Q3-2014 Customers Revenues (1%) (6%) 43,663 44,325 1,100 1,036 USD Million Thousand Q3-14 Q3-13 Q3-14 Q3-13 EBITDA / Margin Net Income / EPS (8%) (13%) 186 471 434 163 USD Million USD Million 0.05 0.05 42.8% 41.9% Q3-14 Q3-13 Q3-14 Q3-13 EBITDA EBITDA margin Net In
Slide 7: Key Performance Indicators as of 9 Months-2014
6 Key Performance Indicators as of 9 Months-2014 Customers Revenues (1%) +0.1% 3,263 3,259 43,663 44,325 USD Million Thousand 9M-14 9M-13 9M-14 9M-13 EBITDA / Margin Net Income / EPS (2%) (2%) 1,377 1,407 570 584 USD Million 0.15 USD Million 0.15 43.2% 42.2% 9M-14 9M-13 9M-14 9M-13 EBITDA EBITDA mar
Slide 8: Key Performance Indicators: Capex
7 Key Performance Indicators Capex & Capex / Revenues +20% +10% 800 668 608 USD Million 18% 15% 13% 2014 F 2013 2012 Capex Capex / Revenues F = Forecasted
Slide 9: Key Performance Indicators as of 30/9/2014: Debt
8 Key Performance Indicators as of 30/9/2014 Total Debt Net Debt & Net Debt / EBITDA +7% +25% 2,820 2,642 1,751 1,404 1,821 1,794 USD Million USD Million 0.95 0.74 999 848 9M-14 9M-13 9M-14 9M-13 Net debt Net debt/EBITDA Long Term Short Term Total Debt • Net Debt = Total interest bearing debts (excl
Slide 10: Zain Dividends
9 Zain Dividends Dividend Payout Ratio Dividend Yield (%) 274% 15% 8% 8% 89% 86% 7% 77% 2013 2012 2011 * 2010 2013 2012 2011 * 2010 Dividend Per Share (KWD) Cash Dividend (USD m) 0% (23%) (68%) 2,761 0.200 0.065 908 0.050 0.050 690 685 2013 2012 2011 * 2010 2013 2012 2011 * 2010 * Zain Group distrib
Slide 11: EBITDA Margins
10 EBITDA Margins As of 9 Months-2014 47.0% Group EBITDA margin 42.2% 41.6% 40.4% 37.3% 36.5% 17.1% 10.3% Kuwait Jordan Republic of Sudan Iraq Bahrain KSA South Sudan
Slide 12: Penetration Rates
11 Penetration Rates As of 9 Months-2014 223% 185% 175% 133% 99% 58% 19% Kuwait Bahrain KSA Jordan Iraq Republic of Sudan South Sudan Source: World Cellular Information Services (WCIS).
Slide 13: Our Customers
12 Our Customers As of 9 Months-2014 Customers Contribution Customers Growth Q3-14 vs. Q3-13 Lebanon South Sudan 13% Group customer growth (1%) 5% 2% 10% KSA 21% Republic of Sudan 5% 4% 25% 3% Bahrain 2% KSA Kuwait Lebanon Bahrain Jordan Republic Iraq South of Sudan Sudan Jordan 9% (7%) (9%) Iraq Ku
Slide 14: Blended ARPU & Revenue Contribution
13 Blended ARPU & Revenue Contribution as of 9 Months-2014 Blended ARPU Revenue Contribution Bahrain $36 5% Kuwait 29% $20 Iraq 38% $16 $9 $9 $8 Jordan 11% $5 South Sudan Republic of Sudan 2% 15% Kuwait Bahrain KSA Iraq Jordan South Republic of Sudan Sudan
Slide 15: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 16: State of Kuwait
15 State of Kuwait Key Statistics – September 2014 Market Share by Customers Financials Zain 36% 3.5 m $43,030 301 290 Population GDP/Capita 223% 1983 USD Million 138 141 Penetration Year of launch Ooredoo 92 88 Viva 31% 33% 2.7 m 100% Customers Ownership Q3-14 Q3-13 Revenues EBITDA Net Income $36 A
Slide 17: Republic of Iraq
16 Republic of Iraq Key Statistics – September 2014 Market Share by Customers Financials Zain 48% 439 35.0 m $7,100 387 Population GDP/Capita USD Million 99% 2003 Korek 128 179 Penetration Year of acquisition 18% 91 Asia Cell 59 34% 13.3 m 76% Q3-14 Q3-13 Customers Ownership Revenues EBITDA Net Inco
Slide 18: Republic of Sudan
17 Republic of Sudan Key Statistics – September 2014 Market Share by Customers Financials Zain 42% 39.0 m $2,600 163 152 975 Population GDP/Capita 848 58% 2006 SDG Million USD Million Penetration Year of full 64 acquisition 58 385 MTN Sudani 320 31% 27% 11.1 m 100% 17 14 99 77 Customers Ownership Q3
Slide 19: Kingdom of Saudi Arabia
18 Kingdom of Saudi Arabia Key Statistics – September 2014 Market Share by Customers Financials Zain 17% 427 435 29.5 m $31,300 Population GDP/Capita USD Million Mobily 175% 2008 39% STC 44% 70 59 Penetration Year of acquisition 9.0 m 37% (84) Customers (112) Ownership Q3-14 Q3-13 $16 Technology : 4
Slide 20: Kingdom of Jordan
19 Kingdom of Jordan Key Statistics – September 2014 Market Share by Customers Financials Zain 39% 7.5 m $6,100 127 122 Population GDP/Capita 2003 USD Million 133% Year of acquisition Orange 48 54 Penetration Umniah 30% 31% 33 26 4.0 m 96.52% Q3-14 Q3-13 Customers Ownership Technology : 3G Revenues
Slide 21: Kingdom of Bahrain
20 Kingdom of Bahrain Key Statistics – September 2014 Financials 1.3 m $29,800 53 Population GDP/Capita 47 USD Million 185% 2003 Technology : 4G LTE Year of launch Number of sites : 404 17 19 Penetration Coverage : 100% 3 License : expires in 2028 2 787 63% Q3-14 Q3-13 Thousand Ownership Revenues EB
Slide 22: Republic of South Sudan
21 Republic of South Sudan Key Statistics – September 2014 Financials 19 11.7 m $1,400 18 Population GDP/Capita USD Million 7 19% 2006 Penetration Year of full acquisition Technology : 3G (2) 664 Number of sites : 265 Thousand 100% Coverage : 45% (8) Ownership (13.2) Customers License : MOU Q3-14 Q3
Slide 23: Lebanon
22 Lebanon Key Statistics – September 2014 4.9 m $15,800 Population GDP/Capita 82% 2004 Mobile Year of acquisition Technology : 4G LTE Penetration Number of sites : 1,171 Coverage : 99% 2.1 m MC License : Management Contract (MC). Customers Ownership • Zain operates in Lebanon under a management con
Slide 24: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 25: Balance Sheet
24 Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 30-Sep-14 31-Dec-13 30-Sep-13 30-Sep-14 31-Dec-13 30-Sep-13 Assets KD ‘000 Liabilities and Equity KD ‘000 Current liabilities Current assets Trade and other payables 572,538 542,566 537,312 Cash and bank balances 307,972 399,24
Slide 26: Income Statement
25 Income Statement Nine months ended 30-Sep 2014 2013 KD’000 Revenue 921,397 924,687 Nine months ended Cost of sales (256,938) (262,939) Gross profit 664,459 661,748 30-Sep Operating and administrative expenses (267,052) (257,670) 2014 2013 Depreciation and amortization (129,088) (143,758) Earnings
Slide 27: Cash flow statement
26 Cash flow statement Nine months ended Nine months ended 30-Sep 30-Sep 2014 2013 2014 2013 Cash flows from investing activities KD’000 Cash flows from operating activities KD’000 Deposits maturing after three months (16,171) (3,278) and bank balances blocked Profit for the period before income tax
Slide 28: Q&A
Q&A For More Information Please Contact ZAIN Group Investor Relations Team (IR@zain.com) Note: All population, GDP per Capita and Mobile Penetration figures are sourced from EIU, WCIS and CIA Fact Book. Zain Group Head Office Building P.O. Box 22244, 13083 Safat, Kuwait City, Kuwait Tel: +965 2464 4