Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2019 Earnings Presentation
26 slides from Maroc Telecom Sa's earnings presentation, Jul 22, 2019
Slide 1: 2019 Half-Year Results
2019 HALF-YEAR RESULTS PRESENTATION TO FINANCIAL ANALYSTS July 22, 2019
Slide 2: Highlights
01 HIGHLIGHTS
Slide 3: H1 2019 Highlights
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES H1 2019 Highlights GROWTH IN CONSOLIDATED MAINTAINING A HIGH EBITDA HIGHER NET INCOME REVENUE MARGIN GROUP SHARE +0.8%(1) 51.5%(2) +1.8%(2) +20% 11 +2.6% Morocco subsidiaries +25% Subsidiaries (1) GOOD PERFORMANCE OF MOBILE EXPANSION OF THE GROW
Slide 4: Regulatory highlights
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Regulatory highlights In Morocco In subsidiaries Enactment of Act No. 121.12, amending and Attribution of a global Mobile license to Onatel supplementing Act 24-96, which establishes a and launch of 4G. general obligation to access and share inf
Slide 5: Other highlights H1 2019
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Other highlights H1 2019 Acquisition of 100% of Tigo Chad : o Mobile customer base(1) : 3.7 million o Mobile market share (customer base)(1) : 51% Sale of 8% of the state's shares : o Sale of 6% in the form of blocks of shares to Moroccan in
Slide 6: Overview
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Overview Customer base growth Consolidated revenue growth(1) (million) (MAD billion) 17.9 17.8 60.4 62.7 8.1 7.8 -1.0% 38.2 39.8 +4.1% +3.9% +0.8% 10.6 10.7 +1.4% 22.2 22.9 +3.5% H1 2018 H1 2019 H1 2018 H1 2019 Morocco International Strong growt
Slide 7: H1 2019 results above guidance announced
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES H1 2019 results above guidance announced 2019 Stable Stable CAPEX(3) of approximately Outlook(1) revenues EBITDA 15% of revenues H1 2019 ACHIEVEMENTS(1) +0.8% +5.1% (2) 10.7% 1) At constant scope and exchange rates 2) At constant exchange rates
Slide 8: Business Review
02 BUSINESS REVIEW
Slide 9: Mobile
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Mobile Mobile customer base Mobile revenue ARPU (million) (MAD billion) (MAD/month) 18.9 19.5 6.8 7.0 2.2 +19.0% 1.8 +18.3% -13.4% +3.2% +2.6% +6.5% 57.5 +0.1% 57.5 17.1 17.4 +1.6% H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Prepaid
Slide 10: Mobile Internet: Continued growth
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Mobile Internet: Continued growth Mobile Internet base Data traffic Data revenue (million) 11.1 10.1 1.9 +18.2% 1.6 +10.3% +37% +19.7% 8.5 9.3 +8.8% 55% 45%(2) H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Penetration rate(1) Of which
Slide 11: Fixed-line and Internet: growth in Data revenue
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Fixed-line and Internet: growth in Data revenue Fixed-line & ADSL customer bases(1) Fixed-line & Internet revenue (million) (MAD billion) 4.7 4.6 -0.2% +3.6% 1.1 1.1 +0,0% 1.5 1.5 +4.5% 1.8 1.9 1.4 1.5 +6.2% 2.1 2.0 -3.6% H1 2018 H1 2019
Slide 12: Revenue sustained by Data
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES International Revenue sustained by Data Mobile customer base Revenue(1) (million) (MAD billion) 37.8 +4.1% 39.4 8.1 -1.0% 7.8 H1 2018 H1 2019 H1 2018 H1 2019 Sustained growth in Mobile customer base (+4.1%) 25% growth in Mobile Data which compen
Slide 13: Investments
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Investments CAPEX(1) Change in Mobile Data traffic (MAD billion) CAPEX/ 13% revenues 8% -36% +37% 1.4 0.9 55% Of which 45%(2) 4G traffic H1 2018 H1 2019 H1 2018 H1 2019 Sustained growth in Mobile Data traffic with a 4G population coverag
Slide 14: Development of High Speed
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES International Development of High Speed CAPEX(1) Change in physical radio sites (MAD billion) CAPEX/ 21% revenue 13% 3G sites +32% 4G sites +170% -39%(2) 6,225 +7.0% 6,662 1.7 1.0 H1 2018 H1 2019 H1 2018 H1 2019 Expansion and densification of Ra
Slide 15: Financial Review
03 FINANCIAL REVIEW
Slide 16: Improved results
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Morocco Improved results Change MAD million H1 2018 H1 2019 Change on a comparable basis(1) Increase in an already high EBITDA margin Revenues 10,562 10,713 1.4% 1.4% (In %) EBITDA 5,542 6,136 +10.7% +9.0% +2.1 pt +0.9 pt +1.8 pt Margin (%) 52.5
Slide 17: International
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES International MAD million H1 2018 H1 2019 Change Change on a comparable Higher EBITDA Margin thanks to cost-control basis(1) efforts Revenues 8,146 7,824 -4.0% -1.0% (in %) EBITDA 3,318 3,273 -1.4% -1.3% +0.8 pt +1.2 pt -1.8 pt +1.0 pt Margin (%
Slide 18: Consolidated results
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Maroc Telecom group Consolidated results MAD million H1 2018 H1 2019 Change Change on a comparable Adjusted net income, Group share basis(1) (MAD million) Revenues 17,939 17,844 -0.5% +0.8% +323 EBITDA 8,860 9,409 +6.2% +5.1% +13 -121 Margin (%)
Slide 19: Consolidated Cash Flow
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Maroc Telecom Group Consolidated Cash Flow Change Net debt MAD million H1 2018 H1 2019 Change on a comparable (MAD million) basis(1) EBITDA 8,860 9,409 +6.2% +5.1% CAPEX 3,599 3,227 -10.3% -8.2% o/w licenses & 480 1,327 frequencies CAPEX / REVEN
Slide 20: Appendices
04 APPENDICES
Slide 21: Macroeconomic environment
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 1 Macroeconomic environment Morocco(1) International(2) 6.0% 5.6% 5.5% 4.1% 3.0% 3.2% 2017 2018 2019e 2017 2018 2019e GDP Real GDP growth 2019 should confirm the recovery of the economy Sustained economic growth and the maintenance of g
Slide 22: Transition from adjusted financial indicators to published financial indicators
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 2 Transition from adjusted financial indicators to published financial indicators H1 2018 H1 2019 MAD million Morocco International Group Morocco International Group Adjusted EBITA 3,679 1,861 5,540 4,170 1,692 5,862 Restructuring costs
Slide 23: Impact of the adoption of IFRS 16
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 3 Impact of the adoption of IFRS 16 H1- 2019 (in MAD million) Morocco International Group EBITDA +98 +91 +189 Adjusted EBITA +6 +9 +15 Adjusted Net Income -10 Group share of adjusted Net Income -10 Adjusted CFFO +101 +154 +254 Net Debt
Slide 24: Regulatory Environment in Morocco
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 4 Regulatory Environment in Morocco Mobile termination rates MAD/min 0.9232 INWI 0.7485 Orange Maroc 0.6601 Maroc Telecom 0.6238 0.5390 0.4679 0.4152 0.3390 0.2534 0.2943 0.2289 0.1399 0.1399 0.1399 0.2066 0.1238 0.1169 0.1169 January 1
Slide 25: Current presence of the Maroc Telecom Group
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Appendix 5 Current presence of the Maroc Telecom Group CENTRAL AFRICA BURKINA FASO COTE D’IVOIRE MAURITANIA MOROCCO GABON Chad(1) NIGER TOGO BENIN MALI Acquisition year 2001 2006 2007 2009 2015 2015 2015 2015 2015 2019 Population (millions) 35.2
Slide 26: Important legal notices
HIGHLIGHTS BUSINESS REVIEW FINANCIAL REVIEW APPENDICES Important legal notices Forward-looking statements This presentation contains forward looking statements and france.org). These documents are also available in French provisional items concerning the financial position, on our website (www.iam.m