25 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, 2010
Slide 1: Investor Presentation H1-2010
Investor Presentation H1-2010 A wonderful world
Slide 2: Disclaimer
Zain 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 the ti
Slide 3: To Consolidate its Position in the Middle East
To Consolidate its’ Position in the Middle East Who we are now • Zain is an emerging telecoms player operating in 7 countries in the Middle East, serving over 34.2 million active customers • The company is the leading mobile telecom operator in 4 of its markets • Revenues: US$ 2,330.4 million; EBITD
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 the Zain brand 4 | Zain | IR Presentation H1-2010
Slide 5: Zain's Key Performance Indicators
Zain’s Key Performance Indicators Revenues (m) EBITDA (m) Net Profit (m) $3,085 $3,085.00 $2,330 $2,313.75 $2,122 $1,542.50 $1,083 $995 $771.25 $525 $0 H1-2009 H1-2010 5 | Zain | IR Presentation H1-2010
Slide 6: Penetration Rates
Penetration Rates Substantial Potential for Future Growth Sudan 50% Lebanon 63% Iraq 73% Jordan 99% Kuwait 140% KSA 155% Bahrain 205% 6 | Zain | IR Presentation H1-2010 Source: Informa
Slide 7: Top Companies in Middle East Market Cap
Top 10 Companies in Middle East Market Cap (Billion) SABIC $69.0 Al Rajhi Bank $31.1 Ezdan $22.4 Etisalat $21.5 STC $19.9 Zain $17.6 NBK $17.5 Saudi Electricity $15.2 Industries Qatar $15.1 Qatar National Bank $14.9 As of August 23, 2010 $0 $17.5 $35.0 $52.5 $70.0 Source: Reuters 7 | Zain | IR Prese
Slide 8: Top Telecom Companies in Middle East & Africa
Top Telecom Companies in Middle East & Africa Market Cap (Billion) MTN $29.4 Etisalat $21.5 STC $19.9 Zain $17.6 Maroc Telecom $15.0 Vodacom $12.6 Mobily $10.0 Millicom $9.8 Qtel $6.7 Orascom $4.7 Wataniya $3.9 Zain KSA $3.0 As of August 23, 2010 $0 $7.5 $15.0 $22.5 $30.0 Source: Reuters 8 | Zain |
Slide 9: Zain's Mobile Operations
Zain’s Mobile Operations 9 | Zain Limited © |
Slide 10: Zain Group Country Breakdown
Zain Group Country Breakdown June 30, 2010 Zain Group Customers Zain Group Revenues Kuwait 6% Kuwait 26% KSA 20% Sudan Sudan 25% 27% Bahrain 2% Bahrain 6% Lebanon 2% Lebanon 4% Jordan 10% Jordan 7% Iraq 34% Iraq 31% 10 | Zain | IR Presentation H1-2010
Slide 11: Zain Group Customer Growth H1-2010 vs. H1-2009
Zain Group Customer Growth H1-2010 vs. H1-2009 Bahrain -11% Kuwait 4% Jordan 5% Group Customer Growth: +28% Iraq 15% Lebanon 20% % Sudan 37% KSA 83% 156 11 | Zain | IR Presentation H1-2010
Slide 12: Blended ARPUs
Blended ARPUs June 30, 2010 US$ Sudan $10 Iraq $11 Jordan $15 KSA $18 Bahrain $27 Kuwait $52 12 | Zain | IR Presentation H1-2010 Note: Lebanon’s ARPU not included due to Management Contract
Slide 13: EBITDA Margins H1-2010
EBITDA Margins H1-2010 H1-2010 H1-2009 54% 52% 49% 51% 48% 46% 48% 45% Group EBITDA Margin: 43% 34% 36% 34% 19% 1% -55% n t q n n A n ai da Ira a ai no KS w rd hr Su ba Ku Jo Ba Le 13 | Zain | IR Presentation H1-2010
Slide 14: Kuwait
Kuwait Contribution to Group total - Population: 3% Customers: 6% Revenues: 26% - Customer YoY Growth: 4% • Despite Viva’s entry in the market, Zain Kuwait still commands 46% of the market. • Zain is listed on the Kuwait Stock Exchange (KSE) with 24.6% held by the Kuwait Investment Authority. • The
Slide 15: Sudan
Sudan Contribution to Group total - Population: 35% Customers: 27% Revenues: 25% - Customer YoY Growth: 37% • In February 2006, Zain Group acquired the remaining 61% of Mobitel for US$ 1.332 billion. • Zain Sudan leads the Sudanese market with a 58% market share. • The operation’s healthy performanc
Slide 16: Iraq
Iraq Contribution to Group total - Population: 26% Customers: 34% Revenues: 31% - Customer YoY Growth: 15% • Zain Iraq’s customer base reached over 11.6 million, maintained on the back of various successful retention programs and the introduction of innovative products and services. • Iraq is the la
Slide 17: Jordan
Jordan Contribution to Group Total - Population: 6% Customers: 7% Revenues: 10% - Customer YoY Growth: 5% • Despite the highly competitive market, Zain Jordan managed to maintain its position as the market leader with a 42% market share. • In H1-2010, Zain Jordan launched below-the-line campaigns ta
Slide 18: Bahrain
Bahrain Contribution to Group Total - Population: 1% Customers: 2% Revenues: 6% - Customer YoY Growth: (11%) • Bahrain is the country with the highest mobile penetration rate (205%) in which Zain operates. • The operation’s market share decreased 6 percentage points to 37% as compared to the first q
Slide 19: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Contribution to Group Total - Population: 25% Customers: 20% - Customer YoY Growth: 83% • Zain KSA launched commercial services in late August 2008. • The operations customer’s increased 83% from the previous year, the highest customer growth in the Group, reaching a total of
Slide 20: Lebanon
Lebanon Contribution to Group Total - Population: 4% Customers: 4% Revenues: 2% - Customer YoY Growth: 20% • Zain operates in Lebanon under a management contract since June 2004, when it was rebranded to mtc-touch. • On 31st May 2010, the Network Management Agreement (NMA) was extended for a period
Slide 21: Financial Performance Financial Statements
Financial Performance Financial Statements 21 | Zain | IR Presentation H1-2010
Slide 22: Balance Sheet
Balance Sheet 22 | Zain | IR Presentation H1-2010
Slide 23: Income Statement
Income Statement Te Text xt 23 | Zain | IR Presentation H1-2010
Slide 24: Cash Flow Statement
Cash Flow Statement 24 | Zain | IR Presentation H1-2010
Slide 25: Thank you
Thank you For more information please contact Investor Relation Team at: investor.relations@zain.com A wonderful world