Slide 1: Analyst Presentation - Half year results 2002
Analyst July 2002 Presentation - Half year results 2002 MOBISTAR Investor Relations July 2002
Slide 2: Agenda
Agenda h Key highlights 1H 2002 h 1H 2002 FINANCIALS h Outlook FULL FY 2002 h Conclusions 2 July 2002 Analyst presentation
Slide 3: Mobistar sustains its market share above 33%
KEY HIGHLIGHTS 1H 2002 Mobistar sustains its market share above 33% ‘000 customers Mobistar Competition 9000 8000 5,250* 7000 5,147 6000 4,656 5000 3,829 4000 2,765 3000 2,153 2000 2,547 2,611 1,238 1,578 1,800 2,150 1000 682 1,040 1,235 510 0 End 98 1H99 End 99 1H00 End 1H01 End 1H 02 2000 2001 Mar
Slide 4: Mobistar customer base - breakdown
KEY HIGHLIGHTS 1H 2002 Mobistar customer base - breakdown 2700 ‘000 customers 2,611 2,547 411 2200 1700 % of postpaid base 1,800 69% of 100.0 active 1,527 90.0 1200 base 80.0 In ‘000 1,040 70.0 80.1 % 60.0 76.3 % 72.4% 700 50.0 31% of 40.0 active 673 200 30.0 base 20.0 10.0 23.7 % 27.6% End 99 End 2
Slide 5: Business market share and references
KEY HIGHLIGHTS 1H 2002 Business market share and references 27% 25% 23% 21% 19% 17% 15% 1999 2000 2001 1H 2002 CMA SMA 5 July 2002 Analyst presentation
Slide 6: Postpaid ARPU: further slight increase
KEY HIGHLIGHTS 1H 2002 Postpaid ARPU : further slight increase 60.2 60.3 56.6 ARPU 00 ARPU 01 Min of Use 6.2% Rev/min -5.7% ARPU 1H 02 2000 2001 1H 2002 Price elasticity for postpaid customers is confirmed 6 July 2002 Analyst presentation
Slide 7: Prepaid ARPU: steady increase on active base
KEY HIGHLIGHTS 1H 2002 Prepaid ARPU : steady increase on active base 19.7 16.15 15.8 14.3 ARPU 00 ARPU 01 Min of use Rev/min ARPU 1H 02 +1% +1.2% 2000 2001 1H 2002 • Usage take-up of prepaid customers • Slight price increase (SMS & activation fee) 7 July 2002 Analyst presentation
Slide 8: Average blended ARPU increase stronger than expected
KEY HIGHLIGHTS 1H 2002 Average blended ARPU increase stronger than expected Average Recurring Network Revenue/active customer €/month 38 37 36 34 32 31.7 30.9 31.7 30 28 26 24 22 20 1999 2000 2001 1H 2002 Increase due to > Higher ARPU per offer 8 July 2002 Analyst presentation > Rising share of post
Slide 9: Mobile data in % of revenues: strong growth
KEY HIGHLIGHTS 1H 2002 Mobile data Mobile data in % of revenues : strong growth outperforms expectations Mobile Data revenues in % of mobile recurring revenues 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1H 4 05 1H 2 1H 3 03 04 05 01 02 00 01 0 0 0 20 20 20 20 20 20 20 20 20 20 20 1H 1H FY FY Actuals Ta
Slide 10: SMS: further increase in usage and higher share of Premium SMS
KEY HIGHLIGHTS 1H 2002 mobile data SMS : further increase in usage and higher share of Premium SMS Share premium SMS in SMS revenues SMS / month / active SMS user 60 50 P2P SMS 40 +9% 52.2 +20% 48 premium SMS 30 40 2001 20 premium SMS 1H 2002 10 0 2000 2001 1H 2002 • SMS usage per active SMS user is
Slide 11: The view of our GPRS users
KEY HIGHLIGHTS 1H 2002 mobile data The view of our GPRS users Executives Stay in touch anywhere Improve productivity anytime Improve Quicker Interactive Increase Improve stock Productivity stock Mgt response times mission follow-up Technicians Quicker Invoicing Quicker Improve service Simplified Acc
Slide 12: GPRS
KEY HIGHLIGHTS 1H 2002 mobile data GPRS In order to propose Mobile Data solutions to our customers, we have contracted more than 40 partners 12 Analyst presentation July 2002
Slide 13: Agenda
Agenda h Key highlights 1H 2002 h 1H 2002 FINANCIALS h Outlook FULL FY 2002 h Conclusions 13 Analyst presentation July 2002
Slide 14: Mobistar group - Net income positive
1H 2002 FINANCIALS Mobistar group - NET INCOME POSITIVE (mio €) 1H 2002 1H 2001 growth% TOTAL Revenues (*) 492.6 410.2 +20% Operating expenses 428.2 404.2 +6% EBITDA 142.7 70.1 +104% EBITDA margin in % of service rev. 31.5% 19% EBIT 64.4 6.0 +972% Net income 36.6 (17.8) N.A. CAPEX 80.4 105.1 -24% He
Slide 15: Mobistar group per activity
1H 2002 FINANCIALS Mobistar group per activity (mio €) MOBILE FIX VOICE/DATA 1H 2002 1H 2001 1H 2002 1H 2001 Revenues (*) 458.2 387.7 34.3 22.5 Operating expenses 387.3 371.5 40.8 32.8 EBITDA 146.1 78.5 (3.4) (8.3) EBITDA in % of service rev. 34.9% 22.6% (10%) (40.7%) EBIT 70.9 16.2 (6.5) (10.3) Net
Slide 16: Explanation of difference in mobile EBITDA margin
1H 2002 FINANCIALS Explanation of difference in mobile EBITDA margin (mio €) MOBILE 1H 2002 1H 2002 (average expectations) Revenues (*) 458.2 440.0 > 7.5% points difference in EBITDA margin due to Operating expenses 387.3 414.3 + 1.5% due to ARPU increase EBITDA 146.1 110.0 + 3% due to lower dealer
Slide 17: Details on Evolution Group Cash Opex
Details on Evolution GROUP CASH OPEX 400 > Interconnect costs show slight increase 350 in % of service revenues (from 22.2% to 300 81.7 103 22.7%) due to change in call mix 250 79.6 55.6 > Lower total dealer Commissions and 200 costs of handset sales 150 108.1 112.4 100 > Cost control in spite of st
Slide 18: CAPEX evolution: optimized spending pattern
1H 2002 FINANCIALS CAPEX evolution : optimized spending pattern 1600 40% 35% 1,371 1400 1,291 35% 31% % of service revenues 1200 30% 28% 1000 921 25% mio € 800 745 20% 18% 600 15% 400 10% 200 5% 0 0% 1999 2000 2001 1H 2002 Cumulative CAPEX CAPEX (excl. 3G lic)/service revenues CAPEX in 1H 2002 reduc
Slide 19: Cash flow statement
1H 2002 FINANCIALS CASH FLOW STATEMENT (in millions € ) 1H 2002 > Strong operating result • EBITDA 142.7 > Optimized timing of CAPEX • CAPEX (80.4) • CHANGE IN WORKING CAPITAL 17.3 > Active management of working capital • NET FINANCIAL CHARGES (25.9) > Financing at attractive conditions • TOTAL FREE
Slide 20: Balance sheet - Net equity positive
1H 2002 FINANCIALS Balance sheet - NET EQUITY POSITIVE (in thousand € ) 1H 2002 2001 • Fixed assets 854,762 854,669 • Current assets 189,476 257,853 • Cash & Equivalent 85,653 54,713 TOTAL 1,129,891 1,167,235 • Net Equity 3,076 Net debt (33,540) Net debt 807.5 mio € 861 mio € • Subordinated LT debt
Slide 21: Agenda
Agenda h Key highlights 1H 2002 h 1H 2002 FINANCIALS h Outlook FULL FY 2002 h Conclusions 21 Analyst presentation July 2002
Slide 22: Outlook for 2002: on track
OUTLOOK FOR 2002 : ON TRACK Continued focus on profitability • Focus on value: seduce for use • Consolidate mobile market share >30% • Align cost structure with best in class practices: “Mobistar@future” Prepare the future • Leverage our competitive position from being part of the Orange group • Fur
Slide 23: FY 2002 Financial Outlook
FY 2002 FINANCIAL OUTLOOK FREE CASH FLOW POSITIVE Original FY 2002 Forecasts Our Reviewed Full Year 2002 Forecasts • Group rev. up by 10 to 15% • Group revenue increase with 10 to 15% • Mobile data revenues at 12% of • Mobile data revenues at 14% of mobile service mobile service rev. revenues • Mobi
Slide 24: Agenda
Agenda h Key highlights 1H 2002 h 1H 2002 FINANCIALS h Outlook FULL FY 2002 h Conclusions 24 Analyst presentation July 2002
Slide 25: Conclusions: Mobistar is a value play
CONCLUSIONS h Mobistar fundamentals are stronger than ever : – market share maintained above 33 % – ARPU increase – Mobile centric strategy for business segment on track – group net income positive – Net equity positive – Optimized timing of CAPEX h Free Cash flow positive one year before plan h Pea
Slide 26: Q&A
Q&A 26 Analyst presentation July 2002