Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain — H1 2011 Earnings Presentation
26 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, 2011
Slide 1: Investor Presentation H1-2011
Investor Presentation H1-2011 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 39.6 million active customers • The company is the leading mobile telecom operator in 5 of its markets • Revenues: US$ 2.38 billion; EBITDA: U
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 – 2011
Slide 5: Zain Group's Footprint
Zain Group’s Footprint 5 | Zain | IR Presentation H1 – 2011 % reflects ownership
Slide 6: Zain's Key Performance Indicators
Zain’s Key Performance Indicators Revenues (m) EBITDA (m) Net Profit (m) $3000 2,330 2,381 $2250 $1500 $995 $1,058 $750 $433 $507 $0 H1-2010 H1-2011 6 | Zain | IR Presentation H1 - 2011
Slide 7: Penetration Rates
Penetration Rates Substantial Potential for Future Growth 7 | Zain | IR Presentation H1 – 2011 Source: Informa
Slide 8: Top Companies in Middle East
Top 10 Companies in Middle East Market Cap (Billion) Company Market Cap $b 1 Saudi Basic Industries Corp 73.6 2 Alrajhi Bank & Investment Corp 27.9 3 Qatar National Bank 24.7 4 Etisalat 22.2 5 Qatar Industries 18.8 6 Saudi Telecom Co (STC) 18.2 7 Ezdan Real Estate 16.4 8 Maroc Telecom 16.1 9 NBK 15.
Slide 9: Top Telecom Companies in Middle East & Africa
Top Telecom Companies in Middle East & Africa Market Cap (Billion) Company Market Cap $b 1 MTN 38.5 2 Emirates Telecom (Etisalat) 22.2 4 Vodacom 19.3 3 Saudi Telecom Co (STC) 18.2 5 Maroc Telecom 16.1 6 ZAIN 14.9 7 Millicom 11.4 8 Etihad Etisalat (Mobily) 9.8 9 Qatar Telecom (Qtel) 7.0 10 Wataniya T
Slide 10: Zain's Mobile Operations
Zain’s Mobile Operations 9 | Zain Limited © |
Slide 11: Zain Group Country Breakdown H1-2011
Zain Group Country Breakdown H1-2011 Zain Group Customers Zain Group Revenues 11 | Zain | IR Presentation H1 - 2011
Slide 12: Zain Group Customer Growth H1-2011 vs. H1-2010
Zain Group Customer Growth H1-2011 vs. H1-2010 Group Customer Growth: +16% 156 12 | Zain | IR Presentation H1 - 2011
Slide 13: Blended ARPUs
Blended ARPUs June 30, 2011 US$ 13 | Zain | IR Presentation H1 - 2011 Note: Lebanon’s ARPU not included due to Management Contract
Slide 14: EBITDA Margins H1-2011
EBITDA Margins H1-2011 H1-2011 H1-2010 Group EBITDA Margin: 44.5% 14 | Zain | IR Presentation H1 - 2011
Slide 15: Kuwait
. Kuwait Contribution to Group total - Population: 2.5% Customers: 5% Revenues: 27% - Customer YoY Growth: 7% • Zain Kuwait, the Group’s flagship stayed ahead of its competitors and was able to maintain its leading position with a 43% customer market share. • The launch of new iPhone packages in H1-
Slide 16: Sudan
Sudan Contribution to Group total - Population: 37% Customers: 29% Revenues: 24% - Customer YoY Growth: 24% • Zain entered Sudan through its 2005 acquisition of Celtel which had a minority 31% stake in Mobitel, Sudan’s first mobile operator. In February 2006, the remaining 61% was fully acquired by
Slide 17: Iraq
Iraq Contribution to Group total - Population: 27% Customers: 31% Revenues: 33% - 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$1.2 billion in December 2007, Zain became the largest mob
Slide 18: Jordan
Jordan Contribution to Group Total - Population: 5.5% Customers: 7% Revenues: 10% Customer YoY Growth: 6% • In January 2003, Zain Jordan was the Group’s first acquired operation for a value of US$ 418.9 million. • Despite the heightening of price competition and the pressure on lowering voice prices
Slide 19: Bahrain
Bahrain Contribution to Group Total - Population: 1% Customers: 1% Revenues: 4% - Customer YoY Growth: (23%) • A Greenfield operation, Zain Bahrain launched its commercial services in December 2003. • Bahrain has the highest mobile penetration in the GCC region with 181%. • Despite the entrant of th
Slide 20: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Contribution to Group Total - Population: 23% Customers: 23% - Customer YoY Growth: 32% • Zain KSA launched commercial services in late August 2008, a year after it was rewarded its mobile license. • The operation’s customer base represented 23% of Zain Group’s customer base,
Slide 21: Lebanon
Lebanon Contribution to Group Total - Population: 4% Customers: 4% Revenues: 2% - Customer YoY Growth: 17% • Zain operates in Lebanon under a management contract since June 2004, when it was rebranded to mtc-touch. The Network Management Agreement (NMA) which had expired January 2011, was further re
Slide 22: Financial Performance: Financial Statements
Financial Performance Financial Statements 22 | Zain | IR Presentation H1-2010
Slide 23: Balance Sheet
Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 30 June 31 December 30 June 2011 2010 2010 30 June 31 December 30 June 2011 2010 2010 Non-current liabilities Assets KD ‘000 Due to banks 362,882 94,734 62,773 Current assets Other non-current liabilities 143,990 149,132 151,438 5
Slide 24: Income Statement
Income Statement Three months ended Six months ended 30 June 30 June 2011 2010 2011 2010 (Restate (Restated d) ) KD’000 KD’000 Continuing operations Revenue 335,062 342,899 659,440 672,573 Cost of sales (90,565) (93,149) (177,099) (178,342) Gross profit 244,497 249,750 482,341 494,231 Distribution,
Slide 25: Cash Flow Statement
Cash Flow Statement Three months ended Six months ended 30 June 30 June 2011 2010 2011 2010 KD’000 KD’000 Profit for the period 77,540 846,814 154,998 901,243 Other comprehensive income On continuing operations: Exchange differences on translating foreign operations 20,073 (59,322) (100,700) (51,843
Slide 26: Thank you
Thank you For more information please contact Investor Relation Team at: investor.relations@zain.com A wonderful world