Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2009 Earnings Presentation
39 slides from Maroc Telecom Sa's earnings presentation, Jul 29, 2009
Slide 1: First Half 2009 Results
First Half 2009 Results Presentation to analysts July 29, 2009
Slide 2: Highlights, Business review, Financial results, Outlook
Highlights Business review Financial results Outlook 1 July 2009
Slide 3: A more challenging economic climate in Morocco
Highlights A more challenging economic climate in Morocco GDP growth of 3.7% in Q1/09 All sectors bar agriculture have been affected by the economic slowdown (non-agricultural GDP growth of 0.2% in Q1/09) Inflation rises at a slower pace (up 2.2% at end-June 2009) Economy is forecast to grow b
Slide 4: Leadership maintained in Morocco
Highlights Leadership maintained in Morocco Market share* Customer base Mobile: Customer base* 14.3 million / up 0.5% y-o-y 62,2% o/w postpaid 0.67 million / up 18.6% y-o-y Internet: Customer base 575,000/ up 15%% y-o-y 66,2% o/w ADSL 483,000 / up 0.1% 3G+ 89,000/ x 6.3 Fixed-line: Customer ba
Slide 5: A positive growth in Sub-Saharan Africa
Highlights A positive growth in Sub-Saharan Africa A more moderate economic slowdown GDP growth* falls from 5.5% in 2008 to 1.5% in 2009, vs. a 2.3% contraction in GDP for trading partners (Europe) Inflation slows but FDI dries up Rapid market growth Penetration rate stands at just 33%** Mob
Slide 6: The Group continues to conquer new markets
Highlights The Group continues to conquer new markets International development continues with acquisition of Sotelma in Mali A full-service operator active in six countries: Aggregate population of 65 million 20 million customers 18% of consolidated revenues in HY1/2009 + 5 July 2009
Slide 7: Results have been maintained despite a difficult economic climate
Highlights Results have been maintained despite a difficult economic climate 2009/2008 Revenues MAD14,586 m up 1.9% EBITDA MAD 8,589 m up 1.0% Earnings from operations MAD 6,552 m down 1.7% Net income (Group share) MAD 4,646 m up 2.6% 6 July 2009
Slide 8: Business review
Highlights Business review Financial results Outlook 7 July 2009
Slide 9: Mobile operations in Morocco: Highlights
Business review Mobile Mobile operations in Morocco: Highlights Changes to promotional strategy and reductions in call rates: Postpaid International New prepaid promotions Continued roll-out of unlimited call plans with extension to enterprises Introduction of mobile TV services and loyalty pr
Slide 10: Mobile operations in Morocco: Customer base and market share
Business review Mobile Mobile operations in Morocco: Customer base and market share Customers, '000 30/06/08 31/12/08 30/06/09 Var. yoy Customer base 14,223 14,456 14,289 0.5% Postpaid** 566 603 671 18.6% Prepaid 13,658 13,853 13,618 -0.3% Market share* 66.4% 63.4% 62.2% -4.2 pts Postpaid** 63.7% 65
Slide 11: Mobile operations in Morocco: ARPU and usage
Business review Mobile Mobile operations in Morocco: ARPU and usage Mixed ARPU Mixed usage (MAD/client/month) (Minutes/client/month) 74 74 99 99 94 71 21 19 Inbound 21 53 50 55 Outbound HY1/08 2008 HY1/09 S1-2008 2008 HY1/2009 Moderate decline in ARPU (down 4.4%) despite intense competitive pressure
Slide 12: Mobile operations of African subsidiaries: Customer bases and ARPU
Business review Mobile Mobile operations of African subsidiaries: Customer bases and ARPU 30/06/08 31/12/08 30/06/09 Var. yoy* Mauritania Customer ('000) 1,015 1,141 1,315 29.6% ARPU (MAD) 73 70 63 -18.0% Burkina Faso Customer ('000) 756 977 1,316 74.1% ARPU (MAD) 104 95 78 -23.3% Gabon Customer ('0
Slide 13: Mobile revenue structure
Business review Mobile Mobile revenue structure MADm - IFRS S1-2007 H1-2008 H1-2009 Var. 08/09* Revenues** 8,889 10,174 10,453 2.8% Maroc Telecom 7,900 8,923 9,015 1.0% Mauritel 420 430 472 4.0% Onatel 328 421 558 35.3% Gabon Telecom 223 308 326 7.9% Mobisud (France + Belgium) 17 92 83 2.8% Mobile r
Slide 14: Mobile margin structure
Business review Mobile Mobile margin structure MADm - IFRS S1-2007 H1-2008 H1-2009 Var. 08/09* EBITDA 5,399 6,174 6,011 -3.1% Maroc Telecom 4,999 5,776 5,370 -7.0% Mauritel 256 261 256 -7.1% Onatel 209 236 308 33.7% Gabon Telecom 34 80 90 15.1% Mobisud (France + Belgium) -99 -179 -14 ns EBITDA margi
Slide 15: Fixed-line and Internet in Morocco: Highlights
Business review Fixed-line and Internet Fixed-line and Internet in Morocco: Highlights Recurring promotions for call plan offerings Tariff rebalancing: MAD 10 increase in line rental charge Extension of unlimited call plan offering and reduction in international call rates Reduction in Data se
Slide 16: Domestic market customer bases
Business review Fixed-line and Internet Domestic market customer bases 000 30/06/08 31/12/08 30/06/09 Var. yoy Fixed-line customer base* 1,329 1,299 1,290 -2.9% Residential 806 775 753 -6.6% Corporate 361 364 373 3.3% Public telephony 162 160 163 0.6% Internet customer base 501 510 576 15.0% o/w Fix
Slide 17: Subsidiaries' customer bases
Business review Fixed-line and Internet Subsidiaries’ customer bases Customer base - '000 30/06/08 31/12/08 30/06/09 Var. yoy Mauritania Fixed-line 46 49 56 21.7% Internet 7 9 11 57.1% Burkina Faso Fixed-line 130 145 151 16.2% Internet 15 17 21 40.0% Gabon Fixed-line 31 33 36 16.1% Internet 12 14 19
Slide 18: Fixed-line & Internet revenue structure
Business review Fixed-line and Internet Fixed-line & Internet revenue structure MADm - IFRS S1-2007 H1-2008 H1-2009 Var. 08/09* Revenues** 5,532 5,525 5,606 1.3% Maroc Telecom 4,727 4,750 4,759 0.2% Mauritel 165 125 134 1.3% Onatel 410 374 399 8.7% Gabon Telecom 230 275 314 16.8% Fixed&Internet reve
Slide 19: Fixed-line & Internet margin structure
Business review Fixed-line and Internet Fixed-line & Internet margin structure MADm - IFRS S1-2007 H1-2008 H1-2009 Var. 08/09* EBITDA 2,677 2,329 2,578 10.7% Maroc Telecom 2,934 2,283 2,396 4.9% Mauritel -9 24 43 72.3% Onatel -35 52 51 -0.9% Gabon Télécom -214 -31 89 ns EBITDA margin 48.4% 42.2% 46.
Slide 20: Financial results
Highlights Business review Financial results Outlook 19 July 2009
Slide 21: Changes in consolidation scope and other elements
Financial results Changes in consolidation scope and other elements Minor change in the consolidation scope: Mobisud France withdrawn from scope as from June 1, 2009 Other elements: Writeback of a provision for contingencies and risks relating to Medi1Sat in an amount of MAD 50 million Exchange
Slide 22: Consolidated income statement
Financial results Consolidated income statement • Impact of stepped up sales and marketing MADm - IFRS H1-2008 H1-2009 % Var efforts, increased maintenance costs, plus amortization and depreciation in a context of slower growth. Revenues 14,308 14,586 1.9% • Deterioration in operating margin in Oper
Slide 23: Consolidated balance sheet
Financial results Consolidated balance sheet MADm - IFRS 31/12/2008 30/06/2009 % Var Non current assets 25,034 24,575 -1.8% Current assets 13,449 12,283 -8.7% • Subsidiaries account for 15% of the balance sheet total. o/w cash 2,678 929 -65.3% Balance sheet total 38,483 36,858 -4.2% • Excluding the
Slide 24: Cash flow statement
Financial results Cash flow statement In MADm - IFRS 30/06/2008 30/06/2009 Variation Value % Cash flow – Operating activities 5,022 6,125 1,103 22.0% Cash flow – Investing activities -2,206 -2,455 -249 -11.3% Cash flow – Financing activities -5,646 -5,397 249 4.4% Cash position at the end of the per
Slide 25: Capital expenditure
Financial results Capital expenditure MADm - IFRS H1-2008 H1-2009 Var. yoy Capex - consolidated 1,930 1,611 -16.5% % consolidated revenues 13.5% 11.0% Mobile 1,028 738 -28.2% % Mobile gross revenues 10.1% 7.1% Fixed and Internet 902 873 -3.2% % Fixed and Internet gross revenues 16.3% 15.6% Capex - M
Slide 26: Outlook
Highlights Business review Financial results Outlook 25 July 2009
Slide 27: Outlook remains favorable
Outlook Outlook remains favorable In Morocco, In Africa, Revenue growth Solid growth prospects maintained… …with the potential to …and bolstered by continued rollout of increase telephony ambitious projects… penetration rates …as well as by measures …and through synergies to improve purc
Slide 28: Four strategic thrusts
Outlook Four strategic thrusts… • More service for same price • Capacity Abundance • Loyalty • Triple play • Distribution Customer C onvergence • Enterprises relations • Networks • Quality Segmentation • Granularity • Adapting sales offerings 27 July 2009
Slide 29: …to achieve clear objectives
Outlook …to achieve clear objectives In Morocco, In subsidiaries Maintain leadership Achieve leadership while controlling through network margins expansion, introduction of new offerings and improved service Maintain growth via quality investment and international development Increase profit
Slide 30: Guidance adjustment
Outlook Guidance* adjustment Revenue growth around 2% Operating margin around 45% (*) excluding Sotelma 29 July 2009
Slide 31: Appendices
Appendices Customer base and penetration rates Consolidated data Morocco key figures ARPU and Usage in Morocco Mauritania key figures Burkina Faso key figures Gabon key figures 30 July 2009
Slide 32: Customer base and leadership positions
Appendix Customer base and leadership positions A mettre à jour Morocco Belgium (MVNO) Mobile Fixed-line Internet Mobile Customers (k) • Customers 14.3 1.3 0.5 100 (m) 62.2% leader 98.8% leader* 66.2% leader • Market share 75.0% 4.3%* 42.3%** • Penetration Mauritania Mobile Fixed-line Internet • Cus
Slide 33: Consolidated data
Appendix Consolidated data MADm - IFRS H1-2008 H1-2009 Var. 08/09* Consolidated revenues 14,308 14,586 2.0% Mobile (gross)** 10,174 10,453 2.8% Fixed and Internet (gross)** 5,525 5,606 1.6% EBITDA 8,503 8,589 0.6% %revenues 59.4% 58.9% Mobile** 6,174 6,011 -3.1% %revenues 60.7% 57.5% Fixed and Inter
Slide 34: Morocco key figures
Appendix Morocco key figures MADm - IFRS H1-2008 H1-2009 Var. 08/09 Gross revenues 13,673 13,774 0.7% Mobile 8,923 9,015 1.0% Communications 8,360 8,415 0.7% Handsets 563 600 6.6% Fixed and Internet 4,750 4,759 0.2% Voice 3,040 2,942 -3.2% Interconnection 291 228 -21.6% Data 876 1,050 19.9% Internet
Slide 35: ARPU and usage in Morocco
Appendix ARPU and usage in Morocco H1-2008 2008 H1-2009 ARPU (MAD/custom er/m onth) Prepaid 77 77 71 Postpaid 666 653 614 Blended 99 99 94 Inbound Usage (m inutes/custom er/m ois) Prepaid 19 19 17 Postpaid 66 63 59 Blended 21 21 19 Outbound Usage (m inutes/custom er/m ois) Prepaid 28 26 29 Postpaid
Slide 36: Mauritania key figures
Appendix Mauritania key figures MADm - IFRS H1-2008 H1-2009 Variation at constant exchange rate Gross revenues 555 606 3.6% Mobile* 430 472 4.0% Fixed and Internet* 125 134 1.3% EBITDA 285 299 -0.5% %revenues 51.4% 49.3% Mobile* 261 256 -7.1% %revenues 60.7% 54.2% Fixed and Internet* 24 43 72.3% %re
Slide 37: Burkina Faso key figures
Appendix Burkina Faso key figures MADm - IFRS H1-2008 H1-2009 Variation at constant exchange rate Gross revenues 796 957 22.7% Mobile 421 558 35.3% Fixed and Internet 375 399 8.7% EBITDA 288 359 27.4% %revenues 36.2% 37.5% Mobile 236 308 33.7% %revenues 56.1% 55.2% Fixed and Internet 52 51 -0.9% %re
Slide 38: Gabon key figures
Appendix Gabon key figures MADm - IFRS H1-2008 H1-2009 Variation at constant exchange rate Gross revenues 583 640 12.2% Mobile 308 326 7.9% Fixed and Internet 275 314 16.8% EBITDA 49 179 273.5% %revenues 8.4% 28.0% Mobile 80 90 15.1% %revenues 26.0% 27.6% Fixed and Internet -31 89 ns %revenues -11.3
Slide 39: Disclaimer
Disclaimer This presentation may contain forward-looking statements with respect to Maroc Telecom. Such statements, which are not historical facts, reflect management’s opinions concerning the results of its strategy and forecasts relating to new or existing programs, technological developments or m