Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2012 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, February 2013
Slide 1: FY 2012 Results
FY 2012 Results Emirates Integrated Telecommunications Company PJSC February 2013
Slide 2: Disclaimer
Disclaimer • Emirates Integrated Telecommunications Company PJSC (hereafter ”du”) is a telecommunication services provider in the UAE. • du cautions investors that certain statements contained within this document state management’s intentions, hopes, beliefs, expectations or predictions of the futu
Slide 3: Contents
Contents Slide Highlights of the Full Year Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 3
Slide 4: 2012 Year In Review
2012 Year In Review Sixth year of strong performance across all areas of the business Sustained period of certainty with Royalty Regime • Positive growth trends for Revenue, EBITDA and Net Profit • UAE Federal Government announced the royalties • Achieved 14.71% like for like revenue* growth in 2012
Slide 5: Full Year Financial Highlights
Full Year Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) Royalty (AEDm) (AEDm) (000s) +14.71% +37.10% +55.81% +26.92% +23.80% 10,157 3,999 2,823 1,748 6,457 2,916 1,377 5,216 1,812 8,855 FY'11 FY'12 FY'11 FY'12 FY'11 FY'12 FY'11 FY'12 FY'11
Slide 6: Q4 Financial Highlights
Q4 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) Royalty (AEDm) Quarterly (AEDm) Net Additions (000s) +13.55% +38.59% +71.39% -15.47% +78.60% 2,738 852 497 617 1,176 521 848 497 278 2,411 Q4 '11 Q4 '12 Q4 '11 Q4 '12 Q4 '11 Q4 '12 Q4 '11 Q4
Slide 7: Contents
Contents Slide Highlights of the Full Year and Q4 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 7
Slide 8: Market overview
Market overview Strengthened market position – focus on gaining revenue share UAE Mobile Subscribers - Market share quarterly evolution UAE Telecom Market - Revenue share quarterly evolution 70% 80% 60% 70% 51.3% 67.5% 50% 60% 48.7% Etisalat 40% 50% du 40% 30% Etisalat 30% 32.5%* 20% 20% du * 10% 10
Slide 9: Contents
Contents Slide Highlights of the Full Year and Q4 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 9
Slide 10: Profitability
Profitability Sustained growth in profitability with strong EBITDA and Net Profit performance Quarterly EBITDA (AEDm) Quarterly Net Profit before royalty (AEDm) +71.39% 1400 +38.59% 70.0% 1000 50.0% 1200 60.0% 800 31.13% 40.0% 1000 42.93% 27.23% 50.0% 800 37.79% 38.39% 37.97% 600 26.56% 25.94% 30.0%
Slide 11: Total revenues
Total revenues Mobile business continues to drive revenues Quarterly Revenue* (AEDm) Like for Like Revenue Breakdown Yearly Change (AEDm) 10,157 144 64 4 +13.55% 1,091 +13.78% 8,855 2,411 2,328 2,447 2,372 2,452 2,374 2,521 2,447 2,738 2,649 Q4 Q1 Q2 Q3 Q4 FY 2011 Tel (Mobile) Tel (Fixed) Wholesale
Slide 12: Revenue Drivers - Mobile
Revenue Drivers - Mobile Quarterly Mobile Revenues (AEDm) Year on Year Mobile Revenues (AEDm) +15.42% +15.95% 2,628 3,727 5,312 6,839 7,930 1,887 1,921 1,896 1,936 2,178 Q4 Q1 Q2 Q3 Q4 FY '08 FY '09 FY '10 FY '11 FY '12 2011 2012 * Mobile Subscribers Active 90 Days (‘000) Quarterly Mobile ARPU (AED)
Slide 13: Revenue Drivers - Mobile
Revenue Drivers - Mobile Data revenues continue to grow, reflecting the global trend in data consumption Revenue Mobile Data* (AEDm)- mobile New Data Methodology differences Old Data Definition Definition Fair value 23.79% 23.81% allocation to 600 25.0% Monthly recurring No fair value data based on
Slide 14: Revenue Drivers – Mobile
Revenue Drivers – Mobile High-value postpaid segment contributes to growth YoY Contribution to growth in mobile revenues (excluding inbound roaming and handset revenue) Quarterly Minutes of Use by Customer Segment 700 647 655 635 627 594 600 500 Prepaid 400 43.27% 300 Postpaid 200 258 240 240 228 24
Slide 15: Revenue Drivers – Fixed
Revenue Drivers – Fixed Quarterly Fixed Revenue (AEDm) Fixed line subscription Yearly Fixed Line Subscribers (‘000) +5.61% +0.76% 391 409 410 408 394 77 70 60 48 74 317 332 339 347 346 262 357 477 531 561 Q4 Q1 Q2 Q3 Q4 * FY '08 FY '09 FY '10 FY '11 FY '12 2011 2012 Fixed Revenue excluding Calling C
Slide 16: Revenue Drivers
Revenue Drivers Revenue Quarterly - Wholesale Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) -3.71% +39.08% 136 123 100 88 78 86 43 78 28 32 45 39 46 41 43 60 47 57 50 45 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 2012 * Wholesale International Hubbing Year to Date Broadcast Revenue
Slide 17: Gross Margin
Gross Margin Fourth quarter shows healthy growth in gross margin Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) 1,850 80.0% 8,000 90.00% +16.89% +9.57% 7,000 85.00% 1,800 *72.38% 75.0% * 6,000 80.00% 68.90% 69.21% 1,750 68.29% 67.80% 70.0% 66.49% 5,000 75.00% 1,700 65.0% 4,000 67.90%
Slide 18: Gross Margin
Gross Margin By Segment (Quarterly) Quarterly Mobile Gross Margin before handset subsidy (AEDm) Quarterly Fixed Gross Margin (AEDm) +10.76% +14.31% 1,500 90.0% 330 100.0% 85.0% 320 74.97% 79.62% 90.0% 1,450 78.44% 79.08% 80.0% 310 80.0% 73.20% 71.86% 72.01% 70.18% 1,400 71.60% 75.0% 300 69.03% 70.0%
Slide 19: Overheads
Overheads Focus on optimising efficiencies, resulting in a positive impact on our cost base Overheads Quarterly Overheads (AEDm) Overheads as a percentage Q4 '11 Q4 '12 FY '11 FY '12 of revenue Quarterly Overheads % of Revenue 900 40.0% Manpower 16.06% 11.74% 15.54% 13.27% 800 Telecommunications lic
Slide 20: Capital Investments
Capital Investments Significant increase in investment in capital expenditure in 2012 Quarterly Capex Additions (AEDm) Yearly Capex Additions (AEDm) 3,000 Capex Additions % of Revenue 70.0% 59.19% 2,500 60.0% 45.46% 50.0% 2,000 40.0% 1,500 30.0% 1,000 17.59% 16.93% 14.57% 20.0% 500 10.0% 330 335 444
Slide 21: Cash & Debt overview
Cash & Debt overview Quarterly Free Cash Flow (AEDm) Year on Year Free Cash Flow (AEDm) Net Cash Operations Net Cash Investments FCF Net Cash Operations Net Cash Investments FCF 1,200 3,500 1,000 2,500 3,018 800 617 2,923 507 521 600 414 1,500 306 1,748 400 1,587 1,377 500 973 200 982 603 721 819 87
Slide 22: Contents
Contents Slide Highlights of the Full Year and Q4 Results 4 Market Information 8 哐Η Financial Summary 10 Strategy and Outlook 23 22
Slide 23: Strategy and Outlook
Strategy and Outlook Efficiency and value creation: Positioning the company for success in a continually evolving telecommunications market • Focus on profitable growth and increased value share • Maximise return on investments and cash flow generation for our shareholders • Continue a progressive d
Slide 24: Sluall Lay Lag
® Sluall Lay Lag add life to life
Slide 25: 洰ӎ
洰ӎ 25
Emirates Integrated Telecommunications Company PJSC — FY2012 Earnings Presentation on 6ix