Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P (VIVA) — Q2 2016 Earnings Presentation
16 slides from Kuwait Telecommunications's earnings presentation, 2016
Slide 1: Q2-2016 Investor Presentation
Q2-2016 Investor Presentation Kuwait Telecommunications Company K.S.C.P
Slide 2: Table of content
Table of content VIVA’s History in Brief 2 Key Milestones 3 Vision and Values 4 Shareholders' Structure 5 Population & Penetration 6 Competitive Strengths 7 Market Share 8 Financial Results 9 Financial Highlights 10 Stock Performance 11 Appendix – Balance Sheet & Income Statement 12 1
Slide 3: VIVA's History in Brief
VIVA’s History in Brief 2007 Jun 2008 Sep 2008 Dec 2008 Dec 2014 Jun 2015 VIVA’s Stock under KSE15 Index VIVA Stock was listed on Kuwait Stock Exchange Commercial Launch of VIVA Operations in Kuwait Public placement of VIVA shares which was 2.4x oversubscribed. distributed among c. 1 million Kuwaiti
Slide 4: Key Milestones
Key Milestones 2008 2010 2012 2014 2016 Launches commercially Expand retail network and VIVA launches Elite Strategic partnership with During April 2016, VIVA under the brand name VIVA launch joint promotions Program for loyal, VIP and Real Madrid. Recognized as Best Telecom with retailers. high val
Slide 5: Vision and Values
Vision and Values Our vision is to provide unique services and products that satisfy the aspirations of our clients and accommodate their needs, which in turn will earn us their trust. This is through presenting our customers with numerous telecommunications opportunities with the goal of boosting o
Slide 6: Shareholders' Structure
Shareholders' Structure Saudi Telecom 52% Kuwaiti Government 24% Public Shareholders 24% STC, the leading regional telecom The Kuwaiti government holds 24% Public Share holders consists of operator, won the bid for third mobile of VIVA through different companies, portfolios, funds and license
Slide 7: Population & Penetration
Population & Penetration Kuwait population since 2010 is growing at the same level of 2.8% yearly and the growth is forecasted by IMF at 2.8% over the next 5 years compared to almost 1% for the global population growth. This growth coupled with rising income levels will propel growth in consumer spe
Slide 8: Competitive Strengths
Competitive Strengths STC (the largest telecom company in the region) will continue to be a major shareholder and VIVA will continue to benefit from being a member of the STC group. Through this relationship, VIVA has access to technical support, industry best practice for provision of telecom servi
Slide 9: Market Share
Market Share Total Subscriber Base in Kuwait (Mn) Subscriber Market Share – June 2016 10.0 7.6 7.7 7.8 8.0 31% 6.41 5.9 6.0 5.2 32% 4.5 3.9 4.0 3.3 2.5 2.8 2.0 0.0 37% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jun-16 VIVA Subscribers (Mn) Revenue Market Share – 6M 2016 3.0 2.4 2.5 2.4 2.5 24
Slide 10: Financial Results
Financial Results 6M 2016 Key Figures & Ratios 6M 2015 Change % 2.4 • VIVA’s Revenue grew by 4% during Subscribers (Mn) 2.5 -5% 140.0 the first half of 2016 to reach KD Revenue (KD Mn) 134.4 +4% 20.4 140 million as compared to the same Operating Profit (KD Mn) 25.1 -19% 15% period in 2015. Operating
Slide 11: Financial Highlights
Financial Highlights Revenue (KD Million) Net Profit (KD Million) 300.0 276.9 50.0 43.0 239.0 40.4 250.0 40.0 200.0 182.4 140.0 30.0 24.3 150.0 134.4 21.6 19.4 20.0 100.0 50.0 10.0 0.0 0.0 2013 2014 2015 1H 2015 1H 2016 2013 2014 2015 1H 2015 1H 2016 Operating Profit (KD Million) CAPEX (KD Million)
Slide 12: Stock Performance
Stock Performance Rebased Index Since VIVA’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices VIVA's Market Stock Price (KWD) KSE Weighted Index Telecom Weighted Index 170 150 VIVA +43.1% Rebased 100 Index 130 110 90 KSE Weighted Index ‐16.6% 70 Telecom Weighted Inde
Slide 13: Appendix
Appendix Balance Sheet (2013– 30 June 2016) Income Statement (2013– Q2 2016) 12
Slide 14: Balance Sheet (2013 – June 2016)
Balance Sheet (2013 – June 2016) 2013 2014 2015 30 Jun 2016 Balance Sheet KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 119.0 113.1 125.4 133.2 Intangible assets 30.6 36.3 50.6 53.7 Other non-current assets 0.7 0.7 0.6 0.5 Non-current assets 150.3 150.1 176.5 187.4 Inventories 4.9 5.8 7.1 8.
Slide 15: Income Statement (2013 – 6M 2016)
Income Statement (2013 – 6M 2016) 2013 2014 2015 6M 2015 6M 2016 Income Statement KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 182.4 239.0 276.9 134.4 140.0 Operating expenses (116.8) (126.3) (145.8) (70.0) (73.5) Depreciation and amortization (39.5) (67.6) (82.2) (39.2) (46.0) Finance costs (1.4) (2.2) (2
Slide 16: Thank you
Thank you Investor Relations Department: E-mail: Investor.relations@viva.com.kw Tel : +965 5000 1911 www.viva.com.kw
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