22 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Jul 23, 2019
Slide 1: Etisalat Group Q2 2019 Results Presentation
ETISALAT GROUP Q2 2019 RESULTS PRESENTATION 23 JULY 2019 - ABU DHABI, UAE
Slide 2: Disclaimer
Etisalat Group | Q2 2019 Results Presentation DISCLAIMER Emirates Telecommunications Group Company PJSC and its subsidiaries (“Etisalat Group” or the “Company”) have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to th
Slide 3: 1. Business Overview
1. Business Overview Saleh Al Abdooli Chief Executive Officer Etisalat Group
Slide 4: Etisalat Group Financial Highlights
Etisalat Group | Q2 2019 Results Presentation FINANCIAL HIGHLIGHTS ETISALAT GROUP FINANCIAL HIGHLIGHTS AED Million Q2 2019 Growth Growth H1 2019 Growth Growth YoY% YoY% Constant YoY% QoQ% Exchange Rates (1) Revenue 12,879 -2% -1% 25,869 -1% +1% EBITDA 6,722 +2% 2% 13,339 +2% +4% EBITDA Margin 52% +2
Slide 5: Etisalat Group Q2'19 Financial Highlights
Etisalat Group | Q2 2019 Results Presentation FINANCIAL HIGHLIGHTS ETISALAT GROUP Q2’19 FINANCIAL HIGHLIGHTS • Expanding Etisalat Group customer base by +2% • Improved EBITDA Margin and operating free cash flow • Interim dividends of 40 fils per share • Improving full year guidance • Maintained subs
Slide 6: 2. Financial Overview
2. Financial Overview Serkan Okandan Chief Financial Officer Etisalat Group
Slide 7: Etisalat Group Financial Highlights
Etisalat Group | Q2 2019 Results Presentation FINANCIAL HIGHLIGHTS ETISALAT GROUP FINANCIAL HIGHLIGHTS Revenue Breakdown Q2 2019 (AED m) EBITDA Breakdown Q2 2019 (AED m) 12.9 6.7 Bn Bn Y0Y Growth -2% Y0Y Growth +2% UAE -1% UAE -1% MT Group (LC - 1%) -4% MT Group (LC + 10%) +7% Egypt (LC +15%) +21% E
Slide 8: Int'l Operations Financial Highlights Q2 2019
Etisalat Group | Q2 2019 Results Presentation FINANCIAL HIGHLIGHTS INT’L OPERATIONS FINANCIAL HIGHLIGHTS Q2 2019 Revenue (AED m) / EBITDA (AED m) / Revenue & EBITDA (AED m) / EBITDA Margin (%) / EBITDA Margin (%) YoY Growth % Maroc Telecom Q2 2019 Growth Growth in AED in MAD Revenue 3,209 -4% -1% EB
Slide 9: Group Revenue
Etisalat Group | Q2 2019 Results Presentation REVENUE GROUP REVENUE Revenue (AED m) and YoY growth (%) Sources of Revenue growth Q2 2019 Vs. Q2 2018 (AEDm) 4% 5% -3% Constant Cu Y/Y % growth +3% -1% +1% Highlights Revenue by Cluster (Q2 2019) • In Q2’19 consolidated revenue decreased Y/Y by 2% attri
Slide 10: Group EBITDA
Etisalat Group | Q2 2019 Results Presentation EBITDA GROUP EBITDA EBITDA (AED m) & EBITDA Margin Sources of EBITDA growth – Q2 2019 vs Q2 2018 (AED m) Highlights EBITDA by Cluster (Q2 2019) • In Q2’19 consolidated EBITDA increased Y/Y by 2% to AED 6.7 billion. Domestic vs. Int’l International • EBIT
Slide 11: Group Capex
Etisalat Group | Q2 2019 Results Presentation CAPEX GROUP CAPEX CAPEX (AED m) & CAPEX/Revenue Ratio (%) Sources of Capex growth – Q2 2019 vs Q2 2018 (AED m) Highlights CAPEX by Cluster (Q2 2019) In Q2’19 consolidated capex decreased Y/Y by 32% Domestic vs. Int’l International resulting in a Capex
Slide 12: Group Balance Sheet & Cash Flows
Etisalat Group | Q2 2019 Results Presentation BALANCE SHEET / CASHFLOWS GROUP BALANCE SHEET & CASH FLOWS Balance Sheet (AED m) Dec-18 Jun-19 Investment Grade Credit Ratings Cash & bank Balances 28,361 26,014 AA-/Stable Total Assets 125,243 124,103 Total Debt 23,526 25,319 Net Cash / (Debt) 4,835 695
Slide 13: Debt Profile: Diversified Debt Portfolio
Etisalat Group | Q2 2019 Results Presentation DEBT PROFILE DEBT PROFILE: DIVERSIFIED DEBT PORTFOLIO Borrowings by Operation Q2 2019 (AED m) Borrowings by Currency Q2 2019 (%) 14,966 7,433 1,668 1,252 Group MT Group Egypt Pakistan Debt by Source Q2 2019 (AED m) Repayment Schedule Q2 2019 (AED m) 8,38
Slide 14: Group Dividends: Proposed DPS of AED 40 Fils for H1 2019
Etisalat Group | Q2 2019 Results Presentation DIVIDENDS GROUP DIVIDENDS: PROPOSED DPS OF AED 40 FILS FOR H1 2019 Interim Dividends and Dividends Per Share Interim Dividend Payout Ratio 3.48 3.48 3.48 85.6% 80.7% 78.3% 0.40 0.40 0.40 2017 2018 2019 H1'17 H1'18 H1'19 Interim Dividends (AED bn) DPS Pay
Slide 15: Country by Country Financial Review
COUNTRY BY COUNTRY FINANCIAL REVIEW 15
Slide 16: UAE: Maintaining Profitability Margins While Investing in New Technologies
Etisalat Group | Q2 2019 Results Presentation UAE UAE: MAINTAINING PROFITABILITY MARGINS WHILE INVESTING IN NEW TECHNOLOGIES Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA % Net Profit (AED m) / Profit Margin (%) CAPEX (AED m) & CAPEX / Revenue Ratio (%) 16
Slide 17: UAE: Revenue Breakdown and Key KPI's
Etisalat Group | Q2 2019 Results Presentation UAE UAE: REVENUE BREAKDOWN AND KEY KPI’s Mobile Revenues(1) (AED m) Fixed Revenues(2) (AED m) Other Revenues(3) (AED m) Mobile Subs(4) (m) & ARPU(5) (AED) Fixed Broadband(6) Subs (m) & ARPU(7) (AED) (1) Mobile revenues includes mobile voice, data, rental
Slide 18: Maroc Telecom: Expanding International Footprint
Etisalat Group | Q2 2019 Results Presentation MAROC TELECOM GROUP MAROC TELECOM: EXPANDING INTERNATIONAL FOOTPRINT Morocco, Benin, Burkina Faso, CAR, CDI, Chad, Gabon, Mali, Mauritania, Niger & Togo Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) Y/Y % growth
Slide 19: Egypt: Strong Revenue Growth & Profitability
Etisalat Group | Q2 2019 Results Presentation EGYPT EGYPT: STRONG REVENUE GROWTH & PROFITABILITY Subscribers(1) (m) Revenue (AED m) / EBITDA CAPEX (AED m) & CAPEX/Revenue Ratio (%) Y/Y % growth +20% +14% +21% HIGHLIGHTS • Regulatory restrictions continue to negatively impact customer acquisitions •
Slide 20: Pakistan: Growth in Local Currency with Improved Margins
Etisalat Group | Q2 2019 Results Presentation PAKISTAN PAKISTAN: GROWTH IN LOCAL CURRENCY WITH IMPROVED MARGINS Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) Y/Y % growth -8% -12% -16% REVENUE BREAKDOWN Q2 2019 USD / PKR FX Rate (PKR) 160.0 140.8 121.5 138.9
Slide 21: 2019 Actual Against Guidance: Improving the Full Year Guidance
Etisalat Group | Q2 2019 Results Presentation GUIDANCE 2019 ACTUAL AGAINST GUIDANCE: IMPROVING THE FULL YEAR GUDIANCE Financial Guidance Revised Guidance Actual KPI 2019 in AED 2019 in AED H1 2019 in AED Revenue Growth % Slightly lower Around -1.3% -1.0% EBITDA Margin% 48% - 49% 49.5% - 50.5% 51.6%
Slide 22: Etisalat Group Investor Relations
ETISALAT GROUP INVESTOR RELATIONS Email: ir@etisalat.ae Website: www.etisalat.com/en/ir/index.jspr 22