Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2011 Earnings Presentation
33 slides from Maroc Telecom Sa's earnings presentation, Jul 26, 2011
Slide 1: 1st Half Results 2011
Tuesday, July 26th, 2011 1st HALF RESULTS 2011
Slide 2: 1st Half Results 2011 agenda
1st HALF RESULTS 2011 Highlights Business review Financial Outlook results 2
Slide 3: Morocco: strengthening growth outlook
Morocco: strengthening growth outlook Economy in Morocco (MADm) 5.2% 5.0% 4.0% 818 779 736 Value GDP growth Source : Ministry of Finance • GDP estimated growth of 5,0% for 2011. The domestic demand represents 2.7 points of GDP growth • Salaries raise in many companies and the public service • Slight
Slide 4: Morocco: lower prices stimulate growth of customer base and usage
Morocco: lower prices stimulate growth of customer base and usage Sustained growth in the Mobile market +23% • Growth of the Mobile customer 105% base in an intensely competitive 75% 86% environment • Growth in Multiple Sim 24 27 33 penetration (estimated at 25% of Q1-09 Q1-10 Q1-11 customer base) M
Slide 5: Sub-saharan Africa: promising growth outlook
Sub-saharan Africa: promising growth outlook Growing mobile penetration MAURITANIA 77% 89% • 2011e Real GDP growth: +6.0% • Mobile market: +19% at 2.9 million customers (Q1-2011) • Strong depreciation of MRO: -8.0% in H1 2011 vs. H1 2010 • Commercial launch of Chinguitel GSM/UMTS network Q1-2010 Q1-
Slide 6: Group customer base: growth driven by sub-saharan affiliates
Group customer base: growth driven by sub-saharan affiliates (In million) +16.5% 27.5 23.6 8.7 Sub-saharan +47% 6.0 Africa 18.8 +6.4% 17.6 Morocco H1-2010 H1-2011 2011 First half results 6
Slide 7: Solid fundamentals
Solid fundamentals H1 2011 Maroc Telecom Group MADm Chg*. Revenues 15,323 -0.8% Operating Income 6,094 -8.3% Operating margin 39.8% -3.2pt Net earnings 3,985 -10.3% Group-share Operating Cash Flow 4,715 -14.4% * Data for the year 2010 were restated after a material misstatement was identified in the
Slide 8: 1st Half Results 2011: Business review
1st HALF RESULTS 2011 Highlights Business review Financial Outlook results 8
Slide 9: Highlights: Mobile in Morocco
Highlights Mobile in Morocco LOWER PRICES EXTENSION OF THE LARGEST DISTRIBUTION NETWORK IN MOROCCO • « Heure Jawal » promotion: 1h for MAD 29 valid 7days evening & WE 356 owned stores among which 5 new openings • Permanent Bonus for small top-up (MAD 5 to 30) & 9 restored agencies • First 5 seconds
Slide 10: Business review: customer base growth thanks to churn improvement
Business review Growth in customer base thanks to churn improvement Mobile customer base Customer Value Market (In thousands) +6.9% market share share* Q1-11 Apr-11 16,994 15,904 934 +27.7% 50% 72% 731 14,289 671 *On the basis of outbond 16,060 + 5.8% Data : ANRT traffic revenues 15,173 13,618 • Cus
Slide 11: Mobile in Morocco: lower price stimulates consumption
Mobile in Morocco Lower price stimulate consumption Blended outgoing usage ; Minute price (Minutes / cust. / month ; MAD/ min) 1.21 1.30 0.99 -24% • Good elasticity of usage to lower price +22% 55 49 60 Outbound usage Minute price Blended ARPU (MAD / cust. / month) -7.8% 94 94 • Good resilience of t
Slide 12: Mobile Internet in Morocco
Mobile Internet in Morocco 3G Internet customer base and revenue growing fastly 3G Internet customer Market share (Active customers) Q1-11 +137% 44% 812 Data : ANRT 89 343 • Strong growth of the market share (+12 pts) • Launch of 3G internet on 3G customer base prepaid voice mobile plan 3G Internet
Slide 13: Business review: Mobile in Morocco
Business review Mobile in Morocco Mobile in Morocco (MADm) 59.6% 60.1% 56.7% -3.5pts -1.0% 9,015 9,519 9,418 -6.7% 5,370 5,722 5,339 Revenues EBITDA EBITDA margin Mobile Revenues and Margin slightly impacted by price cuts 2011 First half results 13
Slide 14: Highlights: Fixed-line & Internet in Morocco
Highlights Fixed-line & Internet in Morocco PRICE CUTS GROWING CORPORATE • ADSL CUTOMER BASE Price reduction in ADSL plans of • IP VPN: + 24% 8 Mbps and more • Fixed-lines: + 2,7% -50% promotion on ADSL & CDMA Packs • Fixed-line Price reduction for « phony Tout Temps » Permanent Bonus El Man
Slide 15: Significant rise in ADSL customer base
Business review Significant rise in ADSL customer base Fixed line customer base Market share (In thousands) Q1-11 ~ 1,290 1,236 1,234 98%(1) 373 376 382 (1) Excluding limited 164 154 127 mobility Source : ANRT 753 706 725 • Fixed-line customer base remains stable Residential Public telephony Corpora
Slide 16: Business review: Fixed lines & Internet in Morocco
Business review Fixed lines & Internet in Morocco Fixed in Morocco 50.3% (MADm) 48.2% 48.0% -0.2pts -11.0% 4,759 4,312 3,836 2,396 2,077 1,837 -11.6% Revenues EBITDA EBITDA margin • Decreasing public telephony due to the competition from Mobile • Lower rates for lines leased by Maroc Telecom’s Fixed
Slide 17: Highlights: Sub-saharan Africa
Highlights Sub-saharan Africa H1-10 H1-11 MAURITEL 60% 58%* • Restriction of some « All-net » usage promotions to « on-net » • New ADSL offering ranging from 4 to 10 Mbps 1,827 1,547 44%* 42% Source : Dataxis Q1-2011 vs. Q2-2011 ONATEL • Heavy price cuts: new digressive per-second rate plan 1,994 2,
Slide 18: Business review: Sub-saharan Africa
Business review Sub-saharan Africa Fixed & Mobile % of Group Revenues (MADm) H1 2009 H1 2010 H1 2011 43.0%* 39.6% 31.0%* 14% 18% 19% 2,625* 2,753* 2,885 % of Group EBITDA H1 2009 H1 2010 H1 2011 813* 1,183* 1,143 10% 13% 14% Revenues EBITDA EBITDA margin Increasing contribution of affiliates to the
Slide 19: 1st Half Results 2011: Financial results
1st HALF RESULTS 2011 Highlights Business review Financial Outlook results 19
Slide 20: Consolidated income statement
Consolidated income statement In MADm H1 2010* H1 2011 Chg* Revenues 15,447 15,323 +4,3% -0.8% Slight decline Operating expenses -6,464 -7,006 +8.4% in revenues despite strong price cuts EBITDA 8,982 8,317 -7.4% % revenues 58.2% 54,3% 58,8% -3.9pts Margin stayed at high level Operating income 6,645
Slide 21: Revenues
Revenues Revenues (MADm) MOROCCO AFFILIATES 15,447* 15,323 -91 132 ∆ Mobile -485 ∆ revenues ∆ Fixed Mobile+Fixed 2,753* 2,885 +4.8% revenues revenues 12,763 12,545 -1.7% H1-2010 Maroc Telecom Sub-saharan affiliates H1-2011 * Data for the year 2010 were restated after a material misstatement was iden
Slide 22: EBITDA
EBITDA Consolidated EBITDA (MADm) 8,982* 8,317 1,183* -624 -41 1,142 -3.4% ∆ Maroc Telecom ∆ affiliates 7,799 EBITDA EBITDA -8.0% 7,175 H1-2010 Maroc Telecom Sub-saharan affiliates H1-2011 EBITDA Morocco (MADm) 7,799 ∆ Revenues ∆ Interco -8.0% ∆ Universal -218 Service ∆ Other OPEX -184 -90 7,175 -13
Slide 23: Investments
Investments (In MADm) 2,404 2,009 Sub-saharan 1,091 Africa 788 Fixed & Internet 550 Morocco 763 Mobile Morocco 763 459 H1-2010 H1-2011 • Slight increase in investments forecasted for the FY 2011 2011 First half results 23
Slide 24: Cash Flow Statement
Cash Flow Statement In MADm H1 10* H1 11 Chg* EBITDA 8,982 8,317 -7.4% Maroc Telecom 7,799 7,175 -8.0% Sub-saharan Africa 1,183 1,142 -3.4% CAPEX 2,404 2,009 -16.4% CAPEX represent 13% Maroc Telecom 1,313 1,222 -6.9% of revenues Sub-saharan Africa 1,091 788 -28% Change in Working Capital 1,090 1,591
Slide 25: 1st Half Results 2011: Outlook
1st HALF RESULTS 2011 Highlights Business review Financial Outlook results 25
Slide 26: Outlook for 2011
Outlook for 2011 Revised outlook for 2011 Slight decline in revenues in 2011 • In Morocco: price cuts and rise in Mobile usage; decline of Fixed-line activity • Sub-saharan Africa: steady growth of Mobile Operating Margin comparable to that of H1 2011 • Morocco: lower interconnection tariffs and fix
Slide 27: Strategic thrusts
Strategic thrusts Investments Synergies Innovation Maintaining Sustainable International High margins Leadership development expansion • Quality of service • Opening up of • Network expansion • Cost control and • Distribution isolated areas • Growth of customer optimization in • Innovation • Reducti
Slide 28: Appendices
1st HALF RESULTS 2011 Appendices 28
Slide 29: Morocco
Morocco Population 31.9 million In MADm – IFRS H1 2010 H1 2011 Chg. Revenues (net) 12,763 12,545 -1.7% GDP $ 91.7 billion Mobile 9,519 9,418 -1.0% Fixed et Internet 4,312 3,836 -11.2% +5.0% in 2011e EBITDA 7,800 7,175 -8.0% % of revenues 61.1% 57.2% -3.9pts Revenue per Operating income 6,104 5,576 -
Slide 30: Mauritania
Mauritania In MADm – IFRS H1 2010 H1 2011 Chg. Population 3.2 million Revenues (net) 595 601 +1.0% GDP $ 4.4 billion Mobile 509 510 - Fixed et Internet 115 117 +1.5% +5.2% in 2011e EBITDA 300 267 -11.1% -5.9pts % of revenues 50% 44% Revenue per ≈ $ 1,352 in 2011e Operating income 195 170 -13.2% inha
Slide 31: Burkina Faso
Burkina Faso Population 15 million In MADm – IFRS H1 2010* H1 2011 Chg.* Revenues (net) 915 846 -7.6% GDP $ 9.6 billion Mobile 658 638 -3% Fixed et Internet 392 337 -14% +5.5% in 2011e EBITDA 459 309 -33% % of revenues 50% 37% -13.6pts Revenue per Operating income 259 87 -66% ≈ $ 639 in 2011e inhabi
Slide 32: Gabon
Gabon Population 1.5 million In MADm – IFRS H1 2010 H1 2011 Chg. Revenues (net) 512 472 -7.8% GDP $ 16.7 billion Mobile 277 221 -20% Fixed et Internet 281 308 +9.7% EBITDA 164 141 -14.1% +5.6% in 2011e % of revenues 32% 30% +2.2pts Revenue per Operating income 34 11 -68% ≈ $ 11,046 in 2011e % of rev
Slide 33: Mali
Mali Population 13.8 million In MADm – IFRS H1 2010 H1 2011 Chg. Revenues (net) 703 976 39% GDP $ 10.7 billion Mobile 538 817 +52% Fixed et Internet 173 166 -3.6% +6.0% in 2011e EBITDA 262 426 +63% % of revenues 37% 44% +6.3pt Revenue per Operating income 54 250 - ≈ $ 777 in 2011e inhabitant (ppp) %