Mobile Telecommunications Company K.S.C.P · KSE:ZAIN
Mobile Telecommunications Company K.S.C.P — Zain Group — Q1 2014 Earnings Presentation
27 slides from Mobile Telecommunications Company K.S.C.P's earnings presentation, Jul 10, 2014
Slide 1: Zain Group Financial Results Presentation Q1-2014
ZAIN GROUP Financial Results Presentation Q1-2014
Slide 2: Disclaimer
1 Disclaimer Mobile Telecommunications Company KSC “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 31st March-2014 46.2 16.0 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 11.9 LEBANON $ 1.1 BILLION MILLION PEOPLE UNDER MILLION CUSTOMERS IN REPUBLIC 141 IN REVENUES
Slide 5: The World of Zain
4 The World of Zain As of 31st March-2014 Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $432 m Customers: 2.1 m Customers: 16.0 m Prepaid: 86% Prepaid: 99% Market Share: 49% Ownership: 100% Revenues: $313 m Customers: 2.5 m Ownership: 96.52% Prepaid: 72% Revenues: $111.8 m
Slide 6: Key Performance Indicators as of 31st March 2014
5 Key Performance Indicators as of 31st March-2014 Customers Revenues +5% +4% 46,224 44,139 1,104 1,059 USD Million Thousand Q1-14 Q1-13 Q1-14 Q1-13 EBITDA / Margin Net Income / EPS +5% +8% 469 449 198 184 USD Million USD Million 0.05 0.05 42.5% 42.4% Q1-14 Q1-13 Q1-14 Q1-13 EBITDA EBITDA margin Net
Slide 7: Key Performance Indicators: Capex
6 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 8: Key Performance Indicators: Debt and Net Debt
7 Key Performance Indicators as of 31st March 2014 Total Debt Net Debt & Net Debt / EBITDA +28% +43% 2,943 2,302 1,703 USD Million USD Million 1,188 0.91 2,227 1,825 0.63 716 477 Q1-14 Q1-13 Q1-14 Q1-13 Net debt Net debt/EBITDA Long Term Short Term Total Debt • Net Debt = Total interest bearing debt
Slide 9: Zain Dividends
8 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 10: EBITDA Margins
9 EBITDA Margins As of 31st March-2014 48.7% Group EBITDA margin 42.5% 41.6% 39.2% 38.8% 37.7% 18.7% 2.2% Kuwait Jordan Republic of Sudan Iraq Bahrain KSA South Sudan
Slide 11: Penetration Rates
10 Penetration Rates As of 31st March-2014 205% 169% 169% 135% 95% 48% 18% Kuwait Bahrain KSA Jordan Iraq Republic of Sudan South Sudan Source: World Cellular Information Services (WCIS).
Slide 12: Our Customers
11 Our Customers As of 31st March-2014 Customers Contribution Customers Growth Q1-14 vs. Q1-13 18% Lebanon South Sudan Group customer growth 5% 4% 2% 13% KSA 18% Republic of Sudan 26% 8% Bahrain 5% 2% 4% 1% Jordan 8% Iraq Bahrain Kuwait Jordan Lebanon South KSA Republic Sudan of Sudan Iraq Kuwait (3
Slide 13: Blended ARPU & Revenue Contribution
12 Blended ARPU & Revenue Contribution as of 31st March-2014 Blended ARPU Revenue Contribution $38 Bahrain 4% Kuwait 29% Iraq $20 40% $16 $9 $9 Jordan $7 10% $4 South Sudan Republic of Sudan 2% 15% Kuwait Bahrain KSA Iraq Jordan South Republic of Sudan Sudan
Slide 14: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 15: State of Kuwait
14 State of Kuwait Key Statistics – March 2014 Market Share by Customers 3.4 m $42,100 Zain 37% Population GDP/Capita 205% 1983 Technology : 4G LTE Nationwide Penetration Year of launch Number of sites : 1,841 Coverage : 100% Wataniya 2.5 m 100% Viva 29% Customers Ownership 34% $38 ARPU Financials –
Slide 16: Republic of Iraq
15 Republic of Iraq Key Statistics – March 2014 Market Share by Customers Zain 49% 34.6 m $7,100 Population GDP/Capita 95% 2003 Technology : 2G Penetration Year of acquisition Number of sites : 3,936 Coverage : 98% Korek 17% License : expires in 2022 16.0 m 76% Asia Cell 34% Customers Ownership $9 A
Slide 17: Republic of Sudan
16 Republic of Sudan Key Statistics – March 2014 Market Share by Customers Zain 35.5m $2,600 42% Population GDP/Capita 48% 2006 Technology : 3G Penetration Year of full acquisition Number of sites : 2,301 Coverage : 86% Sudani 11.9 m 100% License : expires in 2029 MTN 33% 25% Customers Ownership $4
Slide 18: Kingdom of Saudi Arabia
17 Kingdom of Saudi Arabia Key Statistics – March 2014 Market Share by Customers 29.2 m $31,300 Population Zain GDP/Capita 17% 169% 2008 Technology : 4G LTE Penetration Year of acquisition Number of sites : 5,918 Mobily Coverage : 93% STC 8.4 m License : expires in 2033 39% 44% Customers 37% Ownersh
Slide 19: Kingdom of Jordan
18 Kingdom of Jordan Key Statistics – March 2014 Market Share by Customers Zain 40% 7.4 m $6,100 Population GDP/Capita 135% 2003 Penetration Year of acquisition Technology : 3G Umniah Orange Number of sites : 1,712 28% 32% Coverage : 100% 3.9 m 96.52% License : expires in 2026 Customers Ownership $9
Slide 20: Kingdom of Bahrain
19 Kingdom of Bahrain Key Statistics – March 2014 1.3 m $29,800 Population GDP/Capita 169% 2003 Technology : 4G LTE Penetration Year of launch Number of sites : 345 Coverage : 100% License : expires in 2028 774 56.25% Thousand Ownership Customers $20 ARPU Financials – Q1-14 • Zain began operations i
Slide 21: Republic of South Sudan
20 Republic of South Sudan Key Statistics – March 2014 Market Share by Customers 11.6 m $1,400 Zain 40% Population GDP/Capita 18% 2006 Technology : 3G Penetration Year of full acquisition Number of sites : 303 Coverage : 45% MTN 725 License : MOU 24% Vivacell Thousand 100% 32% Gemtel Customers Owner
Slide 22: Lebanon
21 Lebanon Key Statistics – March 2014 4.9 m $15,800 Population GDP/Capita 79% 2004 Technology : 4G LTE Mobile Year of acquisition Number of sites : 1,047 Penetration Coverage : 99% License : Management Contract (MC) until June-2014 2.1 m MC Customers Ownership • Zain operates in Lebanon under a man
Slide 23: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 24: Balance Sheet
23 Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 31-Mar-14 31-Dec-13 31-Mar-13 31-Mar-14 31-Dec-13 31-Mar-13 Liabilities and Equity KD ‘000 Current liabilities Assets KD ‘000 Trade and other payables 569,571 542,566 525,005 Current assets Due to banks 201,429 198,402 519,813
Slide 25: Income Statement
24 Income Statement Three months ended Three months ended 31-Mar 31-Mar 2014 2013 2014 2013 KD’000 KD’000 Attributable to: Revenue 311,131 299,007 Shareholders of the Parent Company 55,914 52,001 Cost of sales (84,216) (84,722) Non-controlling interests 5,907 4,936 Gross profit 226,915 214,285 61,82
Slide 26: Cash flow statement
25 Cash flow statement Three months ended Three months ended 31-Mar 31-Mar 2014 2013 2014 2013 KD’000 KD’000 Cash flows from investing activities Cash flows from operating activities Deposits maturing after three months and bank balances (3,466) (2,946) blocked Profit for the period before income ta
Slide 27: 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