Slide 1: Maroc Telecom
Maroc Telecom
Slide 2: Highlights, Business review, Financial results, Outlook
Business Highlights review Financial Outlook results First Half 2010 Results 2
Slide 3: Operating environment in Morocco
Operating environment in Morocco GDP in Morocco (MADbn) 5,6% 5,2% 4,0% 4,3% • A sustained growth in Q2-10 with a 4,8% growth for 2,7% the non-agricultural GDP and a 2.9% growth for the 615 689 736 778 816 total GDP. • Controlled inflation (+0.4% in Q3-10). 2007 2008 2009 2010E 2011E Value GDP growth
Slide 4: Regulatory context in Morocco
Regulatory context in Morocco • 2010-2013 regulatory guideline: • Decrease of the mobile termination rates. • Asymmetric tariffs converging at the end of 2012. Mobile Termination Rates (MAD/Min) Wana 1.065 0,923 Méditel 0.866 0,749 IAM 0,624 0.333 Beginning mid 2010 2013 2010 September 30th, 2010 Re
Slide 5: Leading operator active on all market segments with a well established brand
Leading operating active on all market segments with a well established brand Mobile Internet Fixed Subscribers 16.7 Subscribers 916k Subscribers 1.227 Q3 million Q3 lines Q3 million o/w postpaid 751 k o/w ADSL 481k Variation +9.8% Variation +54.2% Variation -3.3% Penetration 96.8% Penetration Penet
Slide 6: Sub-Saharan Africa
Sub-Saharan Africa • Real GDP growth in 2010e 5,1% + 4.7% Average GDP 4,7% growth in the sub- 4,4% 4,5% Saharan area Burkina Faso Gabon Mauritania Mali • Inflation is under control in all markets where Maroc Telecom is operating (3.4% in 2010e) Source: IMF Mobile penetration (Q2 2010) 105% 90% • Mar
Slide 7: Appealing results in Maroc Telecom's subsidiaries
Appealing results in Maroc Telecom’ subsidiaries Mauritel Sotelma Photo Mauritania Mali 2010 vs 2009 2010 vs 2009 Mobile subs. (000) 1,578 +17% Mobile subs. (000) 1,959 +185% Q3 2010 Q3 2010 Market share* 53% +1pt Market share* 26% +9 pts * Q2-2010 vs. Q2-2009 Source: Dataxis; market data Gabon Tele
Slide 8: Key figures Maroc Telecom Group (MADm)
Key figures Maroc Telecom Group (MADm) MADm % Comparable basis Revenues 23,710 +5.8% +2.9% EBITDA 13,988 +5.1% +4.2% EBITDA margin 59.0% -0.4 pt +0.8 pt Earnings from operations 10,505 3.5% +4.1% Operating margin 44.3% -1.0 pt +0.5 pt September 30th, 2010 Results 8
Slide 9: Key figures Maroc Telecom Group (EURm)
Key figures Maroc Telecom Group (EURm) EURm % Comparable basis Revenues 2,126 +6.3% +2.9% EBITDA 1,254 +5.7% +4.2% EBITDA margin 59.0% -0.4 pt +0.8 pt Earnings from operations 942 4.0% +4.1% Operating margin 44.3% -1.0 pt +0.5 pt September 30th, 2010 Results 9
Slide 10: Business review
Business Highlights review Financial Outlook results First Half 2010 Results 10
Slide 11: Highlights: Mobile in Morocco
Highlights Mobile in Morocco POSTPAID PREPAID PREPAID More free minutes Increase of usage LOYALTY PROGRAM and one on-net thanks to more Extension unlimited number advantageous bonuses and improvement MOBILE EXTENSION OF THE PAYMENT DISTRIBUTION NETWORK Progressive 342 owned-shops, launch national o/
Slide 12: Business review Morocco: mobile customers base and churn
Business review Morocco Mobile customers base +9.8% 16,740 751 • Customer base is 15,239 731 still growing 706 669 682 15 989 14 872 15 173 14 570 14 590 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Prepaid Postpaid Churn -5.6pts Churn is decreasing thanks to: 36.5% 33.5% 30.9% • The launch of offers 27.4% 22.8% i
Slide 13: Mobile in Morocco ARPU & Usage
Mobile in Morocco ARPU & Usage Blended ARPU Blended outgoing usage (MAD / customer / month) (Minutes / customer / months) -2.6% -7.3% 97 98 95 55 91 94 51 49 51 44 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 • ARPU is stabilizing at a high level despite the growth of the customers ba
Slide 14: Business review Morocco: Mobile
Business review Morocco Mobile (MADm) +2.2pts 62,2% 63,4% 57,4% 62,5% 64,4% 4,847 4,983 4,537 5,004 5,235 +4,6% 3,071 2,605 3,117 3,372 +8,3% 3,115 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 (in MADm) Revenues EBITDA EBITDA margin Mobile revenues are growing significantly, margins continue to be improved. Septem
Slide 15: Highlights: Fixed & Internet in Morocco
Highlights Fixed & Internet in Morocco • Unmetered national • Robust growth of the enterprise market calls plan from the MTBOX (Triple-play) DSL back to growth Stabilization of the fixed- line customer base thanks to DSL, IPTV, unmetered plans September 30th, 2010 Results 15
Slide 16: Business review Fixed & Internet in Maroc
Business review Fixed & Internet in Maroc Fixed lines customer base -3.3% 1,269 1,227 371 369 372 376 375 164 158 155 154 150 • Stabilization of the number of lines in 735 707 705 706 702 2010 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Residential Public telephony Corporate Internet customer base +55% 916 592 43
Slide 17: Business Review Fixed & Internet in Morocco
Business Review Fixed & Internet in Morocco Fixed (MADm) 49,9% 47,1% 48,5% 47,8% 47,4% -2.5 pts 2,268 2,088 -7.9% 2,284 2,193 2,119 1,133 1,075 1,064 1,013 989 -12.7% (in MADm) Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Revenues EBITDA EBITDA margin Decrease of the traffic due to the competition from Mobile. Sep
Slide 18: Mauritania
Mauritania Population 3.2 million In MADm – IFRS 9m-2009* 9m-2010 var. Revenues (net) 836 894 +6.9% GDP $ 3.6 billion Mobile 700 770 +10% Fixed and Internet 165 161 -2.1% -1.1% in 2009 +4.6% in 2010e Operating income 298 284 -4.6% % of revenues 35.6% 31.8% -3.8pts Revenue per ≈ $ 2 034 in 2009 * 200
Slide 19: Burkina Faso
Burkina Faso Population 14.7 million In MADm - IFRS 9m-2009 9m-2010 var. Revenues (net) 1,255 1,368 +9% GDP $ 8.7 billion Mobile 849 984 +16% Fixed and Internet 581 584 +0.6% +3.2% in 2009 +4.4% in 2010e Operating income 242 360 +49% % of revenues 19.3% 26.3% +7.1pts Revenue per ≈ $ 1,302 in 2009 in
Slide 20: Gabon
Gabon Population 1.5 million In MADm - IFRS 9m-2009 9m-2010 var. Revenues (net) 864 787 -9.0% GDP $ 11.01 billion Mobile 472 434 -7.9% Fixed and Internet 448 424 -5.5% -1.4% in 2009e +5.4% in 2010e Operating Income 87 70 -19% % of revenues 10% 8.9% -1.1pt Revenue per ≈ $ 14,297 in 2009e inhabitant (
Slide 21: Mali
Mali Population 14 million In MADm - IFRS 9m-2009* 9m-2010 var. Revenues (net) 907 1,126 24.1% GDP $ 9.5 billion Mobile 847 881 36% Fixed and Internet 273 251 -6.8% +4.5% in 2009e +5.1% in 2010e Operating Income -85 144 Ns % of revenues -9.4% 12.8% +22pts Revenue per ≈ $ 1.164 in 2009e * As if this
Slide 22: Financial results
Business Highlights review Financial Outlook results First Half 2010 Results 22
Slide 23: Financial results
Financial results The whole set of financial figures are reported to end-June 2010. Résultats au 30 Septembre 2010 23
Slide 24: Consolidated income statement (MADm)
Consolidated income statement (MADm) In MADm H1 2010 H1 2009 var Revenues 15,465 14,586 +6.0% Operating expenses -8,799 -8,034 +9.5% EBITDA 9,004 8,589 +4.8% % of revenues 58.2% 58.9% -0.7pt Earning from operations 6,667 6,552 +1.8% % of revenues 43.1% 44.9% -1.8pt Net earnings group share 4,455 4,6
Slide 25: Consolidated income statement (EURm)
Consolidated income statement (EURm) In EURm H1 2010 H1 2009 var Revenues 1,382 1,305 +5.8% Operating expenses -786 -719 +9.3% EBITDA 804 769 +4.7% % of revenues 58.2% 58.9% -0.7pt Earning from operations 596 586 +1.6% % of revenues 43.1% 44.9% -1.8pt Net earnings group share 399 416 -4.0% % of reve
Slide 26: Revenues & EBITDA (MADm)
Revenues & EBITDA (MADm) Revenues EBITDA +4.8% +6.0% 15,465 9,004 +33.6% 8,590 +46.2% 14,586 8,504 14,308 1,205 2,772 443 824 2,075 1,855 12,763 8,061 7,800 +0.4% 12,511 12,575 +1.5% 7,766 H1-08 H1-09 H1-10 H1-08 H1-09 H1-10 Sub-Saharan Africa Morocco September 30th, 2010 Results 26
Slide 27: Revenues & EBITDA (EURm)
Revenues & EBITDA (EURm) Revenues EBITDA +4.7% +5.8% 1,382 804 1,305 769 1,254 745 108 +45.9% 248 +35.5% 39 74 183 163 707 695 697 +0.3% 1,097 1,125 1,140 +1.3% S1-08 S1-09 S1-10 S1-08 S1-09 S1-10 Sub-Saharan Africa Morocco September 30th, 2010 Results 27
Slide 28: Investments (MADm)
Investments (MADm) +49% 2,404 • CAPEX are back-end loaded in H2-2010, with a target of slightly more than 20% of revenues for the full year (15.5% in H1-2010) • Stabilization of CAPEX in Morocco for the full 1,091 year 1,611 • Increase of mobile network coverage in the subsidiaries 473 +130% 1,091 ~
Slide 29: Investments (EURm)
Investments (EURm) +49% 215 • CAPEX are back-end loaded in H2-2010, with a target of slightly more than 20% of revenues for the full year (15.5% in H1-2010) • Stabilization of CAPEX in Morocco for the full 97 year 144 • Increase of mobile network coverage in the 97 subsidiaries 42 +131% ~ 49 +44% 34
Slide 30: Cash Flow Statement (MADm)
Cash Flow Statement (MADm) In MADm H1 2010 H1 2009 var EBITDA 9,004 8,589 +4.8% Maroc Telecom 7,799 7,766 +0.4% Subsidiaries 1,205 824 +46.4% CAPEX -2,404 -1,611 +49.4% Maroc Telecom -1,313 -1,138 +15.6% Subsidiaries -1,091 -473 +130.7% Change in working capital -1,090 -1,572 +30.0% Cash Flow from o
Slide 31: Cash Flow Statement (EURm)
Cash Flow Statement (EURm) In EURm H1 2010 H1 2009 var EBITDA 804 769 +4.7% Maroc Telecom 697 695 +0.3% Subsidiaries 108 74 +45.9% CAPEX -215 -144 +49.1% Maroc Telecom -117 -102 +15.4% Subsidiaries -97 -42 +130.9% Change in working capital -97 -139 +30.1% Cash Flow from operations 492 485 +1.4% Maro
Slide 32: Outlook
Business Highlights review Financial Outlook results First Half 2010 Results 32
Slide 33: Clear targets
Clear targets • Maintain the leadership while controlling the margins • Sustain the growth profile thanks to investments, the development of our subsidiaries and the search of new M&A opportunities • Strengthening social responsibility and civic missions of Maroc Telecom by extending the coverage of
Slide 34: Unchanged 2010 guidance
Unchanged 2010 guidance • Moderate growth in revenues • Profitability to be maintained at high levels September First 30th, Half 2010 2010 Results Results 34