Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2013 Earnings Presentation
36 slides from Maroc Telecom Sa's earnings presentation, Jul 25, 2013
Slide 1: H1 2013 Results
H1 2013 RESULTS JULY 25, 2013 1 H1 2013 results
Slide 2: Solid Fundamentals
SOLID FUNDAMENTALS GROWTH IN VOICE AND DATA USAGE in Morocco under challenging competitive and macroeconomic conditions STEADY GROWTH in international business STRONG RISE in margins, attributable mainly to the impact of voluntary redundancy plans ACCELERATION OF UPGRADES for broadband fixed-line an
Slide 3: Economic Environment
Group Business Financial Outlook performances overview results ECONOMIC ENVIRONMENT GDP growth 5.0% 4.6% 2.5% MOROCCO 2.7% • A first-half notable for slowdown in consumer spending • Faster growth in 2013, boosted by an abundant grain harvest 2011 2012 2013e 2014e Source: Ministry of Finance, HCP 6.0
Slide 4: Mobile Markets Maintain Momentum
Group Business Financial Outlook performances overview results MOBILE MARKETS MAINTAIN MOMENTUM A still-growing market MOROCCO Price elasticity +13% +9% 72 120% 122% 64 113% - 22% Source: ANRT Source: ANRT 65% 36.2 39.0 39.5 51% Q1 2012 Q4 2012 Q1 2013 Q1 2012 Q1 2013 Mobile market (clients in milli
Slide 5: International Growth Supports Group Performance
Group Business Financial Outlook performances overview results INTERNATIONAL GROWTH SUPPORTS GROUP PERFORMANCE Growth of customer bases (H1 13 vs. H1 12 in %) +25.4% Maroc Telecom Group had more than 35 millions +39.2% customers at June 30, 2013 +29.5% +16.7% +12.5% • Morocco (+869,000 customers) cu
Slide 6: Successful Development Strategy for International Activities
Group Business Financial Outlook performances overview results SUCCESSFUL DEVELOPMENT STRATEGY FOR INTERNATIONAL ACTIVITIES % Customer base H1 2012 H2 2012 H1 2013 Morocco International 38% 40% 43% % Group revenues H1 2012 H2 2012 H1 2013 Morocco 23% 24% 26% International 6 H1 2013 results
Slide 7: Significant Capital Spending for Tomorrow's Broadband
Group Business Financial Outlook performances overview results SIGNIFICANT CAPITAL SPENDING FOR TOMORROW’S BROADBAND MOROC NETWORKS CO MOBILE BROADBAND TARGET: migration of 50% of 2G to single RAN (2G/3G/4G ready) Significant gains in coverage, service quality, and cost cutting More than 1,500 s
Slide 8: Solid Half-Year Results
Group Business Financial Outlook performances overview results SOLID HALF-YEAR RESULTS • Full impact from voluntary redundancy plans EBITDA +0.6% carried out in 2012 • The margin from international activities rose by EBITDA margin +3.0 pts. to 58.1% 7.0 pts • Scheduled increase of CAPEX in H1 CFFO -
Slide 9: Business Overview
BUSINESS OVERVIEW Financial results Outlook Annexes H1 2013 results
Slide 10: Encourage Voice and Data Usage
Group Business Financial Mobile MOROCCO Outlook performances overview results ENCOURAGE VOICE AND DATA USAGE Growth of prepaid mobile usage Data monetization • Widespread use of per-second billing • End of unlimited data volume for free mobile internet • Enhancement of prepaid time-based top-ups acc
Slide 11: Continual Price Cuts Partially Compensated by Higher Usage
Group Business Financial Mobile MOROCCO Outlook performances overview results CONTINUAL PRICE CUTS PARTIALLY COMPENSATED FOR BY HIGHER USAGE Rate change per minute Ongoing significant price cuts -36% by Maroc Telecom: -43% • Continual price cuts in 2013 because of intense competition in the prepaid
Slide 12: Solid Growth of Customer Base
Group Business Financial Mobile MOROCCO Outlook performances overview results SOLID GROWTH OF CUSTOMER BASE Mobile customer base (‘000) 45.2%* 46.5% -1.3 pts 17,385 +3.8% 18,049 1,318 +16.7% 1,130 • Continued customer-base growth 16,731 +2.9% 16,255 • Rapid growth maintained in 3G-internet customer
Slide 13: Focus on Mobile Revenues
Group Business Financial Mobile MOROCCO Outlook performances overview results FOCUS ON MOBILE REVENUES Mobile-services revenues Mobile revenues (MAD millions) (MAD millions) Outgoing Incoming Services Equipment 8,937 -9.5% 307 8,085 8,630 -8.6% 197 7,888 -36% 1,760 1,567 -10.9% -8.6% 6,624 6,107 -7.
Slide 14: Continued Growth for Fixed Line and Internet Consumer Bases
Group Busin ess Fixed line and internet Financial MOROCCO Outlook peformance overview results CONTINUED GROWTH FOR FIXED LINED AND INTERNET CONSUMER BASES • Enhanced unlimited plans to fixed lines, with higher prices – Unlimited evenings and weekends at MAD 156 / month unlimited 24/7 + 1h to mobil
Slide 15: Focus on Fixed-Line Business
Group Business Fixed line and internet Financial MOROCCO Outlook performances overview results FOCUS ON FIXED-LINE BUSINESS Fixed-line and internet Fixed-line and internet revenues customer bases (‘000) (MAD millions) Fixed line ADSL* Voice Data LL intra Maroc Telecom 3,709 3,410 +8.8% 888 +95% 457
Slide 16: Strong Business Growth Driven by Expanding Customer Bases
Group Business Financial International Outlook performances overview results STRONG BUSINESS GROWTH DRIVEN BY EXPANDING CUSTOMER BASES AND MARKET-SHARE GAINS Mauritania Burkina Faso Customer base (‘000) Revenues (MAD millions) Parc base Customer (‘000)(‘000) Revenues (MAD millions) 60% 63% 45% 47% +
Slide 17: Financial Results
Business overview FINANCIAL RESULTS Outlook Annexes H1 2013 results
Slide 18: Consolidated Results
Group Business Financial Outlook performances overview results CONSOLIDATED RESULTS MAD millions H1 2012 H1 2013 Change like for like REVENUES 15,172 14,468 -4.6% EBITDA 8,358 8,406 +0.6% Margin (%) 55.1% 58.1% +3.0 pts EBITA 5,155 5,951 +15.4% Margin (%) 33.9% 41.1% NET INCOME (GROUP SHARE) 3,128 3
Slide 19: Growth of International Revenues
Group Business Financial Outlook performances overview results GROWTH OF INTERNATIONAL REVENUES Group revenues MAD millions International: +322 15,172 Morocco ∆ Intergroup 3,488 -967 Gabon Mali 14,468 -4.6% Mauritania Burkina Faso +63 +122 -59 +9.1% +70 +67 3,804 International Morocco 11,876 10,909
Slide 20: EBITDA
Group Business Financial Outlook performances overview results EBITDA Strong growth of margins in Morocco and abroad EBITDA MAD millions 8,406 +0.6% 8,358 -356 +404 1,524 1,928 ∆ EBITDA ∆ EBITDA +26.5% Maroc Telecom International 6,834 6,478 -5.2% Change H1 2012 Maroc Telecom International H1 2013 H
Slide 21: Stabilization of EBITA
Group Business Financial Outlook performances overview results STABILIZATION OF EBITA (EXCLUSIVE OF RESTRUCTURINGS CARRIED OUT IN 2012) Group EBITA MAD millions 5,956 +47 -52 5,951 -0.1% International ∆ EBITDA ∆ Depreciation, 1,194 +54% Restructuring costs amortization, and other Morocco -8.1% 4,380
Slide 22: Aggressive Capex Policy in the First Half
Group Business Financial Outlook performances overview results AGGRESSIVE CAPEX POLICY IN THE FIRST HALF Group CAPEX1 MAD millions 2,753 +37% 715 2,016 +7.0% International 668 +51% 2,038 Morocco 1,348 H1 2012 H1 2013 Change H1 13 / H1 12 • Morocco: accelerated capital spending during the year for ma
Slide 23: CFFO Stable Despite Rise in Capital Spending in Morocco
Group Business Financial Outlook performances overview results CFFO STABLE DESPITE RISE IN CAPITAL SPENDING IN MOROCCO CFFO MAD millions 5,458 ∆ Morocco ∆ International 5,354 -1.9% International 557 -458 +354 911 +64% 4,901 -800 4,443 -9.4% Morocco H1 2012 H1 2013 Change H1-13/H1-12 ∆ EBITDA -689 +6
Slide 24: Low Level of Consolidated Debt
Group Business Financial Outlook performances overview results LOW LEVEL OF CONSOLIDATED DEBT Net debt MAD millions 31/12/2012 6/30/2013 +5,354 Financial expenses Tax paid Dividends for Dividends for - 148 minorities shareholders -1,070 -7,111 -446 -9,644 CFFO 0.4x Net debt / Other EBITDA -6,209 -14
Slide 25: Outlook
Business overview Financial results OUTLOOK Annexes H1 2013 results
Slide 26: Outlook for 2013 Unchanged
Group Business Financial Outlook performances overview results OUTLOOK FOR 2013 UNCHANGED TRENDS FOR 2013 MOROCCO INTERNATIONAL • Continued efforts to boost usage • Revenue growth in all countries • Slight increase in capital spending • Cost optimization • Lower capital expenditure OUTLOOK FOR 2013
Slide 27: Annexes
Business overview Financial results Outlook ANNEXES H1 2013 results
Slide 28: Regulatory Environment in Morocco
Group Business Financial Outlook Annexes performances overview results REGULATORY ENVIRONMENT IN MOROCCO 0.9232 MTR (MAD per min) Inwi 0.7485 0.6601 Méditel 0.6238 Maroc Telecom 0.5390 0.4679 0.4152 0.3390 0.2534 0.2943 0.2289 0.2066 0.1399 Jan 1, 2011 July 1, 2011 Jan 1, 2012 July 1, 2012 Jan 1, 20
Slide 29: Morocco
Group Business Financial Outlook Annexes performances overview results Morocco MAD millions H1 2012 H1 2013 Change Revenues 11,876 10,909 -8.1% Mobile 8,937 8,085 -9.5% Services 8,630 7,888 -8.6% Equipment 307 197 -36% Fixed line 3,410 3,709 +8.8% Fixed-line data* 892 908 +1.8% Elimination -464 -885
Slide 30: Morocco Market Data
Group Business Financial Outlook Annexes performances overview results Maroc Population 32.8 million Mobile H1 2012 H1 2013 Change $107.1 billion Customer base (‘000) 17,385 18,049 3.8% GDP in 2013e ARPU (MAD) 81.4 71.5 -12.2% Revenue per ≈ $5,537 Market share* 46.5% 45.2% -1.3 pts capita (PPP) Pene
Slide 31: International
Group Business Financial Outlook Annexes performances overview results International MAD millions H1 2012 H1 2013 Change Change like for like Revenues 3,488 3,804 9.1% +9.1% Mauritania 667 737 10.5% +10.4% Mobile services 607 673 11.0% +11.0% Burkina Faso 1,028 1,095 6.5% +6.6% Mobile services* 845
Slide 32: Mauritania
Group Business Financial Outlook Annexes performances overview results Mauritania Change like Population 3.7 million Mobile H1 2012 H1 2013 for like $4.5 billion Customer base (‘000) 1,956 2,000 2.3% GDP +5.9% in 2013e ARPU (MAD) 53.8 54.6 +1.4% Revenue per $2,230 in 2013e Market share* 60.4% 62.9%
Slide 33: Burkina Faso
Group Business Financial Outlook Annexes performances overview results Burkina Faso Change like Population 17.7 million Mobile H1 2012 H1 2013 for like $11.9 billion Customer base (‘000) 3,574 4,248 18.9% GDP +7.0% in 2013e ARPU (MAD) 42.3 37 -12.5% Revenue per $1,488 in 2013e Market share* 45.1% 46
Slide 34: Gabon
Group Business Financial Outlook Annexes performances overview results Gabon Change like Population 1.56 million Mobile H1 2012 H1 2013 for like $19.3 billion Customer base (‘000) 714 929 30.2% GDP +6.1% in 2013e ARPU (MAD) 85.6 77.7 -9.2% Revenue per $17,586 in 2013e Market share* 28.1% 28.4% +0.3
Slide 35: Mali
Group Business Financial Outlook Annexes performances overview results Mali Change like Population 16.8 million Mobile H1 2012 H1 2013 for like $11.4 billion Customer base (‘000) 5,377 7,524 39.9% GDP +4.8% in 2013e ARPU (MAD) 37.8 27.9 -26% Revenues per $1,136 in 2013e Market share* 43.0% 44.2% +1,
Slide 36: Important Legal Disclaimer
IMPORTANT LEGAL DISCLAIMER Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements and elements with respect to Maroc Telecom’s financial condition, results of operations, business, strategy, plans and outlook of Maroc Telecom, including the impact