Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — FY2021 Earnings Presentation
26 slides from Maroc Telecom Sa's earnings presentation, Feb 17, 2022
Slide 1: Annual Results 2021
ANNUAL RESULTS 2021 PRESENTATION TO ANALYSTS Thursday 17 February 2022
Slide 2: Highlights
1 HIGHLIGHTS
Slide 3: 2021 Highlights
Highlights 2021 HIGHLIGHTS 1 MAINTAINING HIGH INCREASE OF THE GROUP GROWTH OF THE GROUP ADJUSTED EBITDA MARGIN CUSTOMER BASE SHARE OF NET INCOME FOR THE GROUP (1) +1.8 % 51.9 % +11.1% SUSTAINED GROWTH CONTINUED GROWTH OF FIXED DATA INCOME IN THE REVENUES OF MOOV IN MOROCCO AFRICA SUBSIDIARIES (2) +7
Slide 4: Regulatory Highlights
Highlights REGULATORY HIGHLIGHTS In Morocco In the subsidiaries Review of the multi-year framework for Mobile Drop in Mobile call termination rates in Mauritania, Burkina termination rates, maintening current rates and Faso, Mali, Gabon, Côte d’Ivoire, Benin, Togo and Niger; asymmetry levels; — — Co
Slide 5: Overview
Highlights OVERVIEW Growth of the customer base Drop in consolidated revenues (millions) (MAD bn) 72.9 74.2 36.8 35.8 (1) +1.8% -2.0% 16.9 16.9 +1.5%(2) 49.7 50.6 +1.9% International Morocco 20.9 19.9 -4.7% 23.2 23.6 +1.6% 2020 2021 2020 2021 An increase of almost 2% in the Group’s The continued gro
Slide 6: 2021 Results in Line with the Objectives Announced
Highlights 2021 RESULTS IN LINE WITH THE OBJECTIVES ANNOUNCED 2021 2021 Outlook(1) achievements(1) DECREASE IN REVENUES -2.0% (2) DECREASE IN EBITDA -2.2 % CAPEX(3) OF MAXIMUM 15% OF REVENUES 15.3% (1) At constant scope and exchange rates (2) Adjusted EBITDA – refer to appendix 2 (3) Excluding frequ
Slide 7: Proposal to distribute MAD 4.78/share
Highlights DIVIDEND Proposal to distribute MAD 4.78/share REPRESENTING A RETURN OF 3.5%* (*) Based on the price on February 16, 2022 (136.75 MAD) 7
Slide 8: Business Review
<= = _-- ©)/ Business — REVIEW
Slide 9: Morocco/Mobile
MOROCCO/MOBILE Business review Mobile customer base Mobile revenues (millions) (MAD bn) 19.5 +2.1% 19.9 13.4 -8.1% 2.3 2.4 +1.9% 12.3 +71.1% -17.2% Equipment Postpaid Incoming income Prepaid 17.2 17.5 +2.1% Outgoing income -9.4% 2020 2021 2020 2021 Growth in Mobile customer base (+2.1%) in Prepaid a
Slide 10: Morocco/Fixed and Internet
MOROCCO/FIXED AND INTERNET Business review Fixed & Internet customer base (1) Fixed-line and Internet revenues (millions) (MAD bn) 9.5 9.5 -0.5% 2.3 2.3 +0.0% -1.7% Intra LL Maroc Telecom Fixed Internet -0.2% Data(2) 3.5 3.8 +7.6% 2.0 Voice (including 2.0 Transit and other) 1.7 1.7 3.7 3.4 -8.2% 202
Slide 11: International
INTERNATIONAL Business review Mobile customer base Revenues (millions) (MAD bn) +1.8% +1.5%(1) 16.9 16.9 49.2 50.1 +18.8% 2020 2021 2020 2021 Continued growth in the Mobile customer base (+1.8%) Moov Africa subsidiaries' revenues growth of 3.4%(1) excluding call termination decline Growth by 19%(1)
Slide 12: Morocco/Investments
MOROCCO/INVESTMENTS Business review Change in Data traffic Capex (MAD bn) +16% 7.0% CAPEX / REVENUES 13.2% +79.4% +19% Fixed Traffic 2.6 Mobile Traffic 1.5 -4% 2020 2021 2020 2021 16% growth in Data traffic driven by increased Fixed broadband usage Fixed Data traffic, up 19% year-on-year, was booste
Slide 13: International/Investments
INTERNATIONAL /INVESTMENTS Business review Change in Mobile Data traffic Capex(1) (MAD bn) 10.9% CAPEX / REVENUES 16.9% +63% +57% 2.9 1.8 2020 2021 2020 2021 Mobile Data traffic in the subsidiaries increased by 63% thanks to a major Mobile network expansion program Investments also included upgradin
Slide 14: Financial Review
3 FINANCIAL REVIEW
Slide 15: Morocco Financial Review
MOROCCO Financial review MAD millions 2020 2021 Change Revenues 20,881 19,906 -4.7% Relaunch of major investment plans impacting cash Adjusted EBITDA (1) 11,950 11,234 -6.0% generation (MAD millions) Margin (%) 57.2% 56.4% -0.8 pt 86% Adjusted EBITA (1) 8,079 7,599 -5.9% 64% Margin (%) 38.7% 38.2% -
Slide 16: International Financial Review
INTERNATIONAL Financial review Improvement in adjusted EBITDA margin (%) Change +2.0 pt -0.9 pt MAD millions 2020 2021 Change at constant exchange rates Revenues 16,883 16,912 0.2% 1.5% Adjusted EBITDA (1) 7,150 7,355 2.9% 4.2% 43.5% Margin (%) 42.4% 43.5% 1.1 pt 1.1 pt 42.4% Adjusted EBITA (1) 3,52
Slide 17: Maroc Telecom Group: Consolidated Results
MAROC TELECOM GROUP: Financial review CONSOLIDATED RESULTS Adjusted Group share of Net Income Change (MAD Millions) MAD millions 2020 2021 Change at constant exchange rates +125 -53 Revenues 36,769 35,790 -2.7% -2.0% Adjusted EBITDA (1) 19,100 18,589 -2.7% -2.2% Margin (%) 51.9% 51.9% -0.0 pt -0.1 p
Slide 18: Maroc Telecom Group: Consolidated Cash Flows
MAROC TELECOM GROUP: Financial review CONSOLIDATED CASH FLOWS Net debt (MAD Millions) Change MAD millions 2020 2021 Change at constant exchange rates Adjusted EBITDA (1) 19,100 18,589 -2.7% -2.2% CAPEX 3,448 5,615 62.8% 64.0% Of which licences and 135 123 frequencies - 12,110 CAPEX / revenues (exclu
Slide 19: Outlook
4 OUTLOOK
Slide 20: Outlook for 2022
OUTLOOK FOR 2022 Outlook In Morocco In the subsidiaries Competitive and regulatory pressures; Rise in Data and Mobile Money usage; — — Continued investment to support increased traffic; Decrease in national call termination rates with a — positive impact on margins; Extended coverage of FTTH network
Slide 21: Appendices
5 APPENDICES
Slide 22: Appendix 1: Macroeconomic Environment
APPENDIX 1/MACROECONOMIC ENVIRONMENT Appendices IN MOROCCO (1) INTERNATIONAL (2) 1650 10,0% +5.6% +3.2% 180 7,0% +5.7% 1600 5,0% +4.8% 175 5,0% 1550 0,0% 170 3,0% 1500 +1.2% -6.3% 165 -5,0% 1,0% 1450 160 GDP -1,0% -10,0% 155 1400 Real GDP -3,0% -15,0% growth 150 1350 145 -5,0% 1300 -20,0% 140 -7,0%
Slide 23: Appendix 2: Transition from Adjusted to Published Financial Indicators
APPENDIX 2 /TRANSITION FROM ADJUSTED FINANCIAL INDICATORS TO PUBLISHED FINANCIAL INDICATORS Appendices 2020 2021 MAD millions Morocco International Group Morocco International Group Adjusted EBITDA 11,950 7,150 19,100 11,234 7,355 18,589 Dispute resolution 420 420 Published EBITDA 12,370 7,150 19,52
Slide 24: Appendix 3: Impact of IFRS 16
APPENDIX 3 /IMPACT OF IFRS 16 Appendices 2020 2021 (in MAD millions) Maroc International Groupe Maroc International Groupe Adjusted EBITDA 266 292 557 253 294 547 Adjusted EBITA 33 29 62 11 39 50 Group share of adjusted Net Income -17 -21 Adjusted CFFO 266 292 557 253 294 547 Net Debt 838 801 1 639
Slide 25: Appendix: Presence of the Maroc Telecom Group
APPENDIX 4 /PRESENCE OF THE MAROC TELECOM GROUP Appendices BURKINA FASO CÔTE D’IVOIRE MAURITANIA MOROCCO REPUBLIC CENTRAL AFRICAN GABON BENIN NIGER TOGO CHAD MALI Year of acquisition 2001 2006 2007 2009 2015 2015 2015 2015 2015 2019 Percentage held 52% 61% 51% 51% 85% 100% 95% 100% 100% 100% Populat
Slide 26: Important Legal Disclaimer
IMPORTANT LEGAL DISCLAIMER Appendices FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements and items of a forward-looking nature relating to the financial position, results of operations, strategy and outlook of Maroc Telecom and the impacts of certain operations. Althou