Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2007 Earnings Presentation
27 slides from Maroc Telecom Sa's earnings presentation, Aug 2, 2007
Slide 1: 2007 First Half Results Presentation
2007 First half Results Presentation August 2, 2007
Slide 2: First half highlights
First half highlights Business review Financial results Outlook 1 August 2007
Slide 3: Maroc Telecom consolidates its leadership despite the competition intensification
Maroc Telecom consolidates its leadership despite the competition intensification Mobile : Customer base: 11.7 million customers / +31% vs June 2006 Market share(*): 66.4% Internet : Customer base: 444 k lines / +34% vs June 2006 40% of fixed lines(**) Market share(*): 93% Fixe : Custome
Slide 4: A successful international development
A succesfull international development Africa: leading operators in their markets Mauritel since 2001 Acquisition of a 51% Onatel stake in Burkina Faso: December 2006 Acquisition of a 51% Gabon Telecom stake: February 2007 Maroc Telecom continues to prospect other opportunities in the region
Slide 5: More than 15 million of customers
More than 15 million of customers Morocco France – Belgium (MVNO) Mobile Fixed Internet Mobile Customer (k) •Customer (m) 11, 7 1,3 0,4 41 •Market share 66,4% leader 100% leader 98% leader •Penetration 57,8% 4,3% 39%* Mauritanie Mobile Fixed Internet • Customer (k) 767 36 5 • Market share 70% leader
Slide 6: First half results: encouraging trend
First half results: encouraging trend Revenues 13,007 MADm / +19.5% +10.1% on comparable basis Operating income 5,999 MADm / +33.6% +34.5% on comparable basis Operating margin: 46.1% / +8.1 points on comparable basis Net income group share 3,850 MADm / +28.4% Net margin: 29.6% / +2.1 points Cash Flo
Slide 7: Business review
First half highlights Business review Financial results Outlook 6 August 2007
Slide 8: Mobile in Morocco: highlights
Mobile in Morocco: highlights New abundance offers to increase usage Launch of many new offers : mobile email, push-to-talk, Blackberry services, Internet broadband using 3G… Mobisud: development of a community offer Decrease of access charges Intensification and diversification of promotions Highli
Slide 9: Mobile in Morocco: Growth and leadership
Mobile in Morocco: Growth and leadership Customers, '000 30/06/2006 31/12/2006 30/06/2007 Var yoy Customer base 8,924 10,707 11,713 31.3% Postpaid** 371 410 463 31.5% Prepaid 8,553 10,297 11,250 24.8% Market share* 67.4% 66.9% 66.4% -1.0 pts Postpaid** 56.1% 59.4% 61.7% 5.6 pts Prepaid 68.0% 67.2% 6
Slide 10: Mobile in Morocco: ARPU and usage
Mobile in Morocco: ARPU and usage ARPU Outgoing Usage (MAD/customer/month) (Minutes/ustomer/month) H1-06 694 706 716 642 462 508 FY-06 H1-07 93 89 83 117 113 107 54 39 40 29 21 21 Postpaid* Prepaid** Blended Postpaid* Prepaid** Blended Slowdown of ARPU decrease, with the customer base growth: -8.5%
Slide 11: Mobile subsidiaries: huge growth of customer bases
Mobile subsidiaries: huge growth of customer bases Mobile customer base (thousand) +9% 263 Gabon / Libertis 463 241* +50% Onatel / Telmob 309 +48% 767 518 Mauritel Mobiles June 06 June 07 The global customer base of African subsidiaries reached nearly 1.5 million customers, up 40% yoy. (*) customer
Slide 12: Mobile revenues structure and margins
Mobile revenues structure and margins en MADm - IFRS H1-2006 H1-2007 %change co mparable basis** Published Comparable basis Gross revenues 7,079 7,487 8,888 19.0% Maroc Telecom* 6,746 6,746 7,900 17.1% Mauritel Mobiles 333 333 420 35.1% Onatel (Telmob) - 255 328 26.6% Gabon Telecom (Libertis) - 153
Slide 13: Fixed-line & Internet in Morocco: highlights
Fixed-line & Internet in Morocco : highlights New products: New ‘Phony’ unlimited tariff plan ADSL+ Launch delivering a broadband up to 20 Mo IPTV : new 60 channels offer New prices cuts: ADSL : from 17% to 33% depending on speed International leased lines: -15% ‘Téléboutiques’ ‘Atlas Of
Slide 14: Fixed-line in Morocco: customer base consolidation
Fixed-line in Morocco : customer base consolidation lines '000 30/06/2006 31/12/2006 30/06/2007 Var yoy Maroc Telecom number of lines 1,310 1,266 1,280 -2.3% Residential 850 813 820 -3.5% Corporate 299 296 301 0.7% Public telephony 161 157 159 -1.2% Penetration rate* 4.4% 4.2% 4.2% -0.2 pt Growth of
Slide 15: Internet in Morocco: ADSL still soaring
Internet in Morocco: ADSL still soaring Internet customer base (thousand) 444 391 Narrowband 332 Broadband 252 438 384 325 242 10 7 7 6 Dec-05 June-06 Dec-06 June-07 ADSL growth by nearly 35% in an annual basis Highlights Business review Financial results Outlook 14 August 2007 Fixed & Internet
Slide 16: Fixed subsidiaries: weak growth except in Burkina
Fixed subsidiaries: weak growth except in Burkina Fixed customer base (thousand) - 22 22* Gabon Telecom +11.4% 96 107 Onatel - Mauritel SA 36 36 juin 06 juin 07 The total customer base of subsidiaries in Africa reached nearly 165,000 Growth only in Burkina Faso (*) customer base at December end 2006
Slide 17: Fixed and Internet revenues structure and margins
Fixed and Internet revenues structure and margins en MADm - IFRS H1-2006 H1-2007 %change co mparable basis** Published Comparable basis Gross revenues 5,077 5,698 5,532 -2.9% Maroc Telecom* 4,918 4,918 4,727 -3.9% Mauritel 159 159 165 11.0% Onatel - 363 410 10.8% Gabon Télécom - 258 230 -12.2% Opera
Slide 18: Financial results
First half highlights Business review Financial results Outlook 17 August 2007
Slide 19: Scope of consolidation and other features
Scope of consolidation and other features Change in the scope of consolidation: Fully consolidation of : Onatel: since 1/1/ 2007 Gabon Telecom : since 1/3/2007 Mobisud Belgique : since 1/4/2007 Other elements: Release of the unused part of the provision for the voluntary redundancy plan: 1
Slide 20: Growing revenues
Growing revenues Var. comparable MADm – IFRS H1-2006 H1-2007 basis** Consolidated revenues 10,888 13,007 10.1% Mobile (gross)* 7,079 8,888 19.0% Fixed and Internet (gross)* 5,077 5,532 -2.9% Double-digit growth of Mobile revenues with the customer base increase, despite a 8.5% ARPU decrease in Moroc
Slide 21: Margins stand at a high level
Margins stand at a high level Var. Operating margins MADm – IFRS H1-06 H1-07 comparable 51.6% Mobile basis** 45.6% Operating income 4,491 5,999 34.5% 46.1% Consolidated 41.2% Mobile * 3,228 4,588 39.1% Fixed & 24.9% 25.5% Internet Fixed and Internet * 1,262 1,411 21.2% S1-06 S1-07 The consolidated m
Slide 22: Growing capex
Growing capex Capex/Revenues MADm - IFRS H1-06 H1-07 % Var. 17.3% Fixed & Internet 13.9% 13.6% Capex 1,512 2,143 41.7% 13.0% Consolidated 12.0% Mobile 851 1,184 39.1% Mobile Fixed and Internet 661 959 45.1% 9.1% H1-06 H1-07 Maroc Telecom continues to highly invest in Morocco, capex represent 13% of
Slide 23: A net cash position of MAD -2.7 billion
A net cash position of MAD -2.7 billion Variation MADm - IFRS H1-06 H1-07 Value % Cash flow – Activity 4,385 5,442 1,057 24.1% Cash flow – Investment -1,518 -2,322 -804 53.0% o/w: Capex -1,512 -2,143 -631 41.7% Acquisition -10 -334 -324 ns Cash flow – Financing -9,636 -2,961 6,675 ns o/w: Dividends
Slide 24: Outlook
First half highlights Business review Financial results Outlook 23 August 2007
Slide 25: Perspectives
Perspectives Morocco, a growing country Africa, a high potential Favourable economic data… Promising economic forecasts : 2007 forecats > 4% (excl. agriculture) More than 5.5%/year within the next three Inflation under control < 3% years (source : World bank) Decrease of unemployment rate: 1
Slide 26: Outlooks for 2007 end
Outlooks for 2007 end Within the same scope, taking into account new acquisitions: Consolidated revenues growth will exceed 16% (will exceed 8% on a comparable basis) Consolidated operating income will exceed 18% (will exceed 20% on a comparable basis) Highlights Business review Financial result
Slide 27: Disclaimer
Disclaimer This presentation contains forward-looking statements regarding Maroc Telecom. This information cannot be considered as historical data and reflects management’s opinions on the expected impact on earnings of its strategy as well as its forecasts related to new or existing programmes, tec