Mobile Telecommunications Company K.S.C.P · KSE:ZAIN
Mobile Telecommunications Company K.S.C.P — Zain Group — 9M 2012 Earnings Presentation
27 slides from Mobile Telecommunications Company K.S.C.P's earnings presentation, 2012
Slide 1: IR Presentation 9 Months 2012
IR Presentation 9 Months 2012
Slide 2: Disclaimer
Zain Group Disclaimer Certain expectations and projections regarding future performance of the company referenced in this presentation may be “forward-looking” statements within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at
Slide 3: To Consolidate Our Position in the Region
To Consolidate Our Position in the Region 8 Countries 41.3 Customer Million $3.5 Revenue Billion $1.6 EBITDA Billion $722 Net Million Income 3
Slide 4: Zain's Historical Growth
Zain’s Historical Growth From a National Player to an Emerging Markets Leader * MTC Atheer & Iraqna jointly operate under Zain brand 4
Slide 5: Zain Group's Footprint
AROUND 41.3 MILLION ACTIVE CUSTOMERS IN 8 COUNTRIES* ‘The numbers show active customers as of September 30, 2012. *Exchisive of Morocco, in which Zain has a 15.5% ownership in the mobi
Slide 6: Zain's Key Performance Indicators
Zain’s Key Performance Indicators Revenues (m) EBITDA (m) Net Profit (m) 4,000 $3,582 $3,490 3,500 3,000 2,500 2,000 $1,566 $1,611 1,500 1,000 $722 $763 500 0 9 Months-2012 9 Months-2011 6
Slide 7: Penetration Rates
Penetration Rates Kuwait 188% KSA 159% Jordan 140% Bahrain 131% Iraq 76% Republic of Sudan 57% South Sudan 20% 7
Slide 8: Top Companies in Middle East
Top Companies in Middle East Market Cap (Billion) Market Cap ($billion) Company Market Cap $b SABIC 73.2 1 Saudi Basic Industries Corp 73.2 Alrajhi 28.1 2 Alrajhi Bank & Investment Corp 28.1 Qatar National Bank 25.7 3 Qatar National Bank 25.7 Qatar Industries 23.0 4 Qatar Industries 23.0 STC 22.6 5
Slide 9: Top Telecom Companies in Middle East & Africa
Top Telecom Companies in Middle East & Africa Market Cap (Billion) Market Cap ($billion) Company Market Cap $b 1 Vodacom 37.5 37.5 Vodacom 2 MTN 36.3 36.3 MTN 4 Saudi Telecom Co (STC) 22.6 22.6 STC 21.0 3 Emirates Telecom (Etisalat) 21.0 Etisalat 13.9 5 Etihad Etisalat (Mobily) 13.9 Mobily 11.7 7 ZA
Slide 10: Zain Group Country Breakdown 9 Months-2012
Zain Group Country Breakdown 9 Months-2012 Zain Group Customers Zain Group Revenues Kuwait KSA 5% Jordan Iraq 16% 8% Bahrain 37% South Sudan 1% 2% Kuwait 26% Iraq 33% Republic Sudan South Sudan Republic 30% 1% Sudan Bahrain 20% Lebanon 5% Jordan 5% 11% 10
Slide 11: Zain Group Customer Growth Q3-2012 vs. Q3-2011
Zain Group Customer Growth Q3-2012 vs. Q3-2011 Bahrain 21% Jordan 20% Lebanon 14% Iraq 9% Kuwait 6% Republic of Sudan 3% -33% *KSA -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% * The management has reinforced the 90 days policy for active customers and eliminated inactive customers, to ali
Slide 12: Blended ARPUs Q3-2012
Blended ARPUs Q3-2012 Kuwait $44 Bahrain $27 KSA $19 Jordan $13 South Sudan $11 Iraq $11 Republic of Sudan $6 12
Slide 13: EBITDA Margins 9 Months-2012
EBITDA Margins 9 Months-2012 55% 50% 50% Group EBITDA: 45% 45% 45% 44% 40% 41% 35% 36% 30% 25% 20% 15% 15% 10% 5% 0.2% 0% Kuwait Jordan Iraq Republic of Sudan Bahrain KSA South Sudan 13
Slide 14: Zain's Operations
Zain’s Operations 9 Months-2012
Slide 15: Kuwait
. Kuwait Contribution to Group total - Population: 3% Customers: 5% Revenues: 19% - Customer YoY Growth: 6% • Zain Kuwait, the Group’s flagship stayed ahead of its competitors and was able to maintain its leading position with a 41% market share. • The launch of Wiyana Concept portal, Zain Teen, Bla
Slide 16: Iraq
Iraq Contribution to Group total - Population: 26% Customers: 33% Revenues: 27% - Customer YoY Growth: 9% • After acquiring a 15-year nationwide license for USD 1.25 billion in August 2007 and its acquisition of a rival operator Iraqna for USD1.2 billion in December 2007, Zain became the largest mob
Slide 17: Republic of Sudan
Republic of Sudan Contribution to Group total - Population: 35% Customers: 30% Revenues: 15% - Customer YoY Growth: 3% • Zain entered Sudan through its 2005 acquisition of Celtel which had a minority 39% stake in Mobitel, Sudan’s first mobile operator. In February 2006, the remaining 61% was fully a
Slide 18: South Sudan
South Sudan Contribution to Group total - Population: 9% Customers: 2% Revenues: 1% - Customer YoY Growth: N/A • In June 2011, Republic of Sudan and South Sudan have successfully completed the separation process. Accordingly, Zain Group commenced separating the two entities by having different finan
Slide 19: Jordan
Jordan Contribution to Group Total - Population: 5% Customers: 8% Revenues: 8% Customer YoY Growth: 20% • In January 2003, Zain Jordan was the Group’s first acquired operation for a value of USD 418.9 million. • Despite the heightening of price competition and the pressure on lowering voice prices,
Slide 20: Bahrain
Bahrain Contribution to Group Total - Population: 1% Customers: 1% Revenues: 3% - Customer YoY Growth: 21% • A Greenfield operation, Zain Bahrain launched its commercial services in December 2003. • Zain Bahrain has the second highest ARPU of $27 in the Group. • The operation managed to increase its
Slide 21: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Contribution to Group Total - Population: 22% Customers: 16% - Customer YoY Growth: (33%) • Zain KSA launched commercial services in late August 2008, a year after it was rewarded its mobile license. • Zain KSA has successfully completed its Capital Restructuring in July 2012
Slide 22: Lebanon
Lebanon Contribution to Group Total - Population: N/A Customers: 5% - Customer YoY Growth: 14% • Zain operates in Lebanon under a management contract since June 2004, when it was rebranded to mtc-touch. • The launch of Ramadan Promo and Touch Mobile App contributed to the increase in the operation’s
Slide 23: Financial Statements
Financial Statements 9 Months-2012
Slide 24: Balance Sheet
Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 30-Sep-12 31-Dec-11 30-Sep-11 30-Sep-12 31-Dec-11 30-Sep-11 Assets KD ‘000 Liabilities and Equity KD ‘000 Current liabilities Current assets Trade and other payables 515,140 506,541 570,730 Due to banks 267,036 313,823 268,434 Cas
Slide 25: Income Statement
Income Statement Nine months ended Nine months ended 30-Sep 30-Sep 2012 2011 2012 2011 KD’000 KD’000 Continuing operations Discontinued operations Revenue 974,623 988,109 Cost of sales (274,149) (266,363) Release of provisions - 16,320 Gross profit 700,474 721,746 Profit for the period 221,735 233,4
Slide 26: Cash flow Statement
Cash flow Statement Nine months ended Nine months ended 30-Sep 30-Sep 2012 2011 2012 2011 KD’000 Cash flows from investing activities KD’000 Deposits maturing after three months and those under Cash flows from operating activities (75,490) 169,749 lien Profit for the period before income tax from In
Slide 27: Thank You
Thank You For more information, please contact Investor Relations Team at: Ir@zain.com