27 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, August 2012
Slide 1: IR Presentation H1 2012
IR Presentation H1 2012 August 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 Who we are now : • Zain is an emerging telecoms player operating in 8 countries across the region, serving over 41.3 million active customers. • The company is the leading mobile telecom operator in 5 of its markets. • Revenues: US$ 2.38 billion; EBITDA: US$
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 41.4 MILLION ACTIVE CUSTOMERS IN 8 COUNTRIES*
Slide 6: Zain's Key Performance Indicators
Zain’s Key Performance Indicators Revenues (m) EBITDA (m) Net Profit (m) 3,000 2,500 $2,384 $2,381 2,000 1,500 $1,074 $1,058 1,000 $510 $507 500 0 H1-2012 H1-2011 6
Slide 7: Penetration Rates
Penetration Rates South Sudan 22% Republic of Sudan 52% Lebanon 74% Iraq 76% Jordan 124% Kuwait 160% KSA 184% Bahrain 221% 7
Slide 8: Top Companies in Middle East
Top 10 Companies in Middle East Market Cap (Billion) Market Market Cap ($Billion) N Company Cap $b 1 Saudi Basic Industries Corp 73.8 SABIC 73.8 Alrajhi 29.5 2 Alrajhi Bank & Investment Corp 29.5 Qatar National Bank 25.7 3 Qatar National Bank 25.7 Qatar Industries 21.0 4 Qatar Industries 21.0 STC 20
Slide 9: Top Telecom Companies in Middle East & Africa
Top Telecom Companies in Middle East & Africa Market Cap (Billion) N Company Market Cap $b Market Cap ($Billion) 36.4 Vodacom 1 Vodacom 36.4 35.9 2 MTN 35.9 MTN 20.7 4 Saudi Telecom Co (STC) 20.7 STC 20.4 Etisalat 3 Emirates Telecom (Etisalat) 20.4 12.8 Mobily 5 Etihad Etisalat (Mobily) 12.8 10.8 ZA
Slide 10: Zain Group Country Breakdown H1-2012
Zain Group Country Breakdown H1-2012 Zain Group Customers Zain Group Revenues KSA Kuwait Jordan South Sudan Iraq 1% 18% 5% 8% 35% Kuwait Lebanon 26% 5% South Sudan 1% Jordan 11% Republic of Sudan 31% Bahrain Iraq 4% 31% Bahrain 1% Republic of Sudan 23% 10
Slide 11: Zain Group Customer Growth H1-2012 vs. H1-2011
Zain Group Customer Growth H1-2012 vs. H1-2011 Group Customer Growth : +5% Lebanon 18% Jordan 18% Bahrain 17% Republic of Sudan 12% Kuwait 8% Iraq 5% -19% KSA 11
Slide 12: Blended ARPUs H1-2012
Blended ARPUs H1-2012 Kuwait $44 Bahrain $28 KSA $18 Jordan $13 South Sudan $11 Iraq $11 Republic of Sudan $7 12
Slide 13: EBITDA Margins H1-2012
EBITDA Margins H1-2012 60% 50% 49.0% Group EBITDA: %45.1 40% 45.0% 44.5% 42.0% 35.0% 30% 20% 17.0% 10% 3.0% 0% Kuwait Republic Iraq Jordan Bahrain KSA South of Sudan Sudan 13
Slide 14: Zain's Operations H1 2012
Zain’s Operations H1 2012
Slide 15: Kuwait
. Kuwait Contribution to Group total - Population: 2% Customers: 5% Revenues: 26% - Customer YoY Growth: 8% • Zain Kuwait, the Group’s flagship stayed ahead of its competitors and was able to maintain its leading position with a 42% market share. • The launch of Hybrid VPN, 8 GB for 8 KD and other o
Slide 16: Iraq
Iraq Contribution to Group total - Population: 25% Customers: 31% Revenues: 35% - Customer YoY Growth: 5% • After acquiring a 15-year nationwide license for US$ 1.25 billion in August 2007 and its acquisition of a rival operator Iraqna for US$1.2 billion in December 2007, Zain became the largest mob
Slide 17: Republic of Sudan
Republic of Sudan Contribution to Group total - Population: 34% Customers: 31% Revenues: 23% - Customer YoY Growth: N/A • Zain entered Sudan through its 2005 acquisition of Celtel which had a minority 39% stake in Mobitel, Sudan’s first mobile operator. In February 2006, the remaining 61% was fully
Slide 18: South Sudan
South Sudan Contribution to Group total - Population: 8% Customers: 1% Revenues: 1% - Customer YoY Growth: N/A • In June 2011, Republic of Sudan and South Sudan have successfully completed the separation process. Accordingly, Zain Group commenced separating the two entities by having different finan
Slide 19: Jordan
Jordan Contribution to Group Total - Population: 5% Customers: 8% Revenues: 11% Customer YoY Growth: 18% • In January 2003, Zain Jordan was the Group’s first acquired operation for a value of US$ 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: 4% - Customer YoY Growth: 17% • A Greenfield operation, Zain Bahrain launched its commercial services in December 2003. • Bahrain has the highest mobile penetration in the GCC region with 221%. • Despite the heightening of
Slide 21: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Contribution to Group Total - Population: 21% Customers: 18% - Customer YoY Growth: (19%) • 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: 3% Customers: 5% - Customer YoY Growth: 18% • Zain operates in Lebanon under a management contract since June 2004, when it was rebranded to mtc-touch. • In H1 2012, Zain revealed the new brand name for its management operation in Lebanon. After the
Slide 23: Financial Statements H1 2012
Financial Statements H1 2012
Slide 24: Balance Sheet
Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 30-Jun-12 31-Dec-11 30-Jun-11 30-Jun-12 31-Dec-11 30-Jun-11 Liabilities and Equity KD ‘000 Assets KD ‘000 Current liabilities Current assets Trade and other payables 459,625 506,541 506,938 Due to banks 176,501 313,823 231,447 Cas
Slide 25: Income Statement
Income Statement Six months ended Six months ended 30-Jun 30-Jun 2012 2011 2012 2011 KD’000 KD’000 Continuing operations Discontinued operations Revenue 663,535 659,440 Cost of sales -183,629 -177,099 Release of provisions - 16,320 Gross profit 479,906 482,341 Profit for the period 155,286 154,998 D
Slide 26: Cash flow Statement
Cash flow Statement Six months ended Six months ended 30-Jun 30-Jun 2012 2011 2012 2011 KD’000 KD’000 Cash flows from investing activities Cash flows from operating activities Deposits maturing after three months and those under 2,853 169,749 lien Profit for the period before income tax from Investm
Slide 27: Thank You
Thank You For more information, please contact Investor Relations Team at: Investor.relations@zain.com