Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain Group — FY2012 Earnings Presentation
21 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, Dec 31, 2012
Slide 1: Zain Group IR Presentation
ZAIN GROUP IR PRESENTATION December 31st 2012
Slide 2: Disclaimer
1 Disclaimer Certain expectations and projections regarding future performance of the Group 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 the time of
Slide 3: A brief introduction to Zain Group
2 A brief introduction to Zain Group 42.7 12.5 4G 222 MILLION MILLION CUSTOMERS LONG TERM TB OF DAILY ACTIVE IN REPUBLIC EVOLUTION (LTE) DATA USAGE CUSTOMERS OF SUDAN NETWORK IN SAUDI ARABIA AND 108 KUWAIT $ 4.58 13.7 BILLION MILLION PEOPLE UNDER LICENSE MILLION CUSTOMERS IN 348.7 IN REVENUES MILLIO
Slide 4: Key Milestones
3 Key Milestones • MERGED MTC ATHEER AND IRAQNA AND REBRANDED TO ZAIN • REBRANDED • ZAIN KSA FROM CELTEL RAISED $1.6 • ACQUIRED TO ZAIN ALL SOLD MOBILE BILLION IN FASTLINK AFRICAN OPERATIONS RIGHTS ISSUE IN JORDAN OPERATIONS IN 15 AND GROUP • AWARDED AFRICAN INCREASED 2ND GSM • ACQUIRED • COMMENCED
Slide 5: The World of Zain
4 The World of Zain Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $1,733 m Customers: 1.9 m Customers: 13.7 m Prepaid: 86% Prepaid: 99% Market Share: 50% Ownership: 100% Revenues: $1,187 m Customers: 2.3 m Ownership: 96.52% Prepaid: 70% Revenues: $509 m Market Share: 42% C
Slide 6: Key Performance Indicators
5 Key Performance Indicators Customers Revenues +6% (4%) USD Million Thousand 42,714 40,263 4,791 4,584 2011 2012 2011 2012 EBITDA / Margin Net Income / EPS (13%) (6%) USD Million USD Million 1,033 2,176 902 2,041 0.27 45.4% 0.23 44.5% 2011 2012 2011 2012 EBITDA EBITDA margin Net Income EPS ($)
Slide 7: EBITDA Margins and Penetration Rates
6 EBITDA Margins and Penetration Rates EBITDA Margins Penetration Rates * 49.2% 183% Group EBITDA margin : 44.5% 172% 44.3% 44.2% 41.2% 35.8% 134% 134% 83% 13.7% 60% Kuwait Jordan Iraq Republic of Bahrain KSA South 19% Sudan Sudan (10.7%) Kuwait KSA Jordan Bahrain Iraq Republic of South Sudan Sudan
Slide 8: Blended ARPU and Revenue Contribution
7 Blended ARPU and Revenue Contribution Blended ARPU Revenue Contribution Bahrain 5% $42 Kuwait 26% $27 Iraq 38% $18 Jordan $12 11% $11 $11 $6 South Sudan Republic of Sudan 1% 19% Kuwait Bahrain KSA Jordan South Iraq Republic of Sudan Sudan
Slide 9: Our Customers
8 Our Customers Customers Contribution Customers Growth 2012 vs. 2011 27% Lebanon South Sudan 5% 2% KSA 21% 18% Republic of Sudan 29% Bahrain 1% 10% 7% 6% Jordan 8% Iraq 32% Kuwait 5% Jordan Bahrain Iraq Kuwait Lebanon KSA* Republic (1%) of Sudan * The management has reinforced the 90 days policy fo
Slide 10: Top Telecom Companies by Market Cap
MTN 33.0 9 Etisalat 22.0 STC 20.9 Vodacom 17.9 Mobily 16.8 Zain 11.9 Maroc Telecom 10.9 Ooredoo 10.2 Market Cap ($ billion) NMTC 4.2 Top Telecom Companies Orascom 3.2 Zain KSA 2.4 Top Companies in SABIC 75.4 MTN 33.0 Qatar Industries 26.2 Middle East & North Africa Alrajhi Bank 26.0 Qatar National B
Slide 11: Zain Operations
IR PRESENTATION ZAIN OPERATIONS December 31st 2012
Slide 12: Kuwait
10 Kuwait Key Statistics – December 2012 Market Share Zain 42% 3.8 m $47,156 Contribution to Group total Population GDP/Capita Population: 3% 183% 1983 Customers: 5% Mobile Penetration Year of launch Revenues: 26% 2,252 100% Viva 21% Thousand Ownership Customers Customer YOY Growth: 7% $42 Wataniya
Slide 13: Iraq
11 Iraq Key Statistics – December 2012 Market Share Zain 50% 33.4 m $4,937 Contribution to Group total Population GDP/Capita Population: 28% 83% 2003 Customers: 32% Mobile Year of acquisition Revenues: 38% Penetration 13,707 Thousand 76% Korek Customers Ownership Customer YOY Growth: 10% 14% $11 ARP
Slide 14: Republic of Sudan
12 Republic of Sudan Key Statistics – December 2012 Market Share Zain 52% 35.9 m $2,489 Contribution to Group total Population GDP/Capita Population: 30% 60% 2006 Customers: 29% Mobile Year of full Revenues: 19% Penetration acquisition 12,535 100% Thousand Ownership Customers Customer YOY Growth: (4
Slide 15: Jordan
13 Jordan Key Statistics – December 2012 Market Share Zain 38% 6.6 m $5,300 Contribution to Group total Population GDP/Capita Population: 5% 134% 2003 Customers: 8% Mobile Year of acquisition Revenues: 11% Penetration 3,489 96.52% Umniah Thousand Customer YOY Growth: 27% 25% Ownership Customers Oran
Slide 16: Kingdom of Saudi Arabia
14 Kingdom of Saudi Arabia Key Statistics – December 2012 Market Share Zain 15% 28.9 m $25,587 Contribution to Group total Population GDP/Capita Population: 24% 172% 2008 Customers: 18% Mobile Year of acquisition Penetration STC 45% 7,495 37% Thousand Ownership Customer YOY Growth: (1%) Customers Mo
Slide 17: Financial Statements
IR PRESENTATION FINANCIAL STATEMENTS December 31st 2012
Slide 18: Balance Sheet
15 Balance Sheet 2012 2011 2012 2011 KD ’000 KD’000 LIABILITIES AND EQUITY ASSETS Trade and other payables 535,114 506,541 Cash and bank balances 302,609 404,764 Due to banks 270,656 313,823 Total Current liabilities 805,770 820,364 Trade and other receivables 319,109 332,843 Due to banks 381,136 22
Slide 19: Income Statement
16 Income Statement 2012 2011 2012 2011 KD’000 KD’000 Continuing operations Discontinued operations Revenue 1,281,903 1,321,921 Release of provisions - 16,320 Cost of sales (360,975) (353,914) 280,192 317,528 Gross profit 920,928 968,007 Distribution, marketing and operating expenses (254,820) (283,
Slide 20: Cash flow statement
17 Cash flow statement 2012 2011 2012 2011 KD ‘000 KD ‘000 Cash flows from investing activities Cash flows from operating activities Deposits maturing after three months and bank (95,071) 162,249 Profit for the year before income tax 320,799 364,737 balances blocked Investments in subsidiaries (28,5
Slide 21: Contact Zain Group Investor Relations Team
FOR MORE INFORMATION PLEASE CONTACT ZAIN GROUP INVESTOR RELATIONS TEAM Note: All population, GDP per Capita and Mobile Penetration figures are sourced from EIU, WCIS and CIA Fact Book. lr@zain.com Zain Group Head Office Building P.O. Box 22244, 13083 Safat, Kuwait City, Kuwait Tel: +965 2464 4444 Fa