Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain Group — Q1 2015 Earnings Presentation
26 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, Dec 11, 2015
Slide 1: Zain Group Financial Results Q1-2015
Zain Group Financial Results Q1-2015
Slide 2: Disclaimer
Disclaimer Mobile Telecommunications Company KSCP “Zain Group” has prepared this presentation to the best of its abilities, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions, estimates, or
Slide 3: Contents
Contents Zain Group Overview Zain Operations Overview Financial Statements 3
Slide 4: Zain at a Glance
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Zain AT A GLANCE As Of 31ST March, 2015 46.1 Million active 13.5 4G Long term Over customers Million customers evolution (LTE) In Iraq network in Kuwait, 6,700 Saudi Arabia, Jordan, Bahrain Employees $396 Million in EBITDA and Lebanon
Slide 5: The World of Zain
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW THE WORLD OF ZAIN As Of 31ST March, 2015 MOROCCO LEBANON IRAQ Ownership: 15.5% Ownership: Ownership: 76% Management Contract Revenues: $304 m Customers: 2.1 m Customers: 13.5 m Prepaid: 86% Prepaid: 99% Market Share: 43% JORDAN KUWAIT
Slide 6: Group Results
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Group Results CUSTOMERS REVENUES -0.4% -15% 46,054 46,224 1,104 942 USD Million Thousand Q1-15 Q1-14 Q1-15 Q1-14 EBITDA / MARGIN NET INCOME / EPS -16% -30% 469 198 396 139 USD Million USD Million 0.05 0.04 42.0% 42.5% Q1-15 Q1-14 Q1-1
Slide 7: Capex & Capex / Revenues
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW CAPEX & CAPEX / Revenues 10% 4% 800 730 705 USD Million 17% 16% 15% 2015 F 2014 2013 Capex Capex / Revenues F = Forecasted 7
Slide 8: Total CAPEX
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Total CAPEX Group Total Capex (excluding KSA) = USD 134 million Q1-2015 % of Opco USD Million Revenues Bahrain Others Kuwait 7 3% 4% 1% Iraq 55 18% Republic of Sudan 58 33% Sudan 43% KSA 79 17% Iraq Jordan 7 6% 41% Bahrain 6 13% S. Su
Slide 9: Total Debt, Net Debt & Net Debt / EBITDA
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Total Debt Net Debt & Net Debt / EBITDA 8% 25% 2,127 3,185 2,716 2,943 1,703 2,227 USD Million 1.34 USD Million 0.96 716 469 Q1-15 Q1-14 Q1-15 Q1-14 Long Term Net debt Net debt/EBITDA • Net Debt = Total interest bearing debts (excludi
Slide 10: Zain Dividends
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Zain Dividends DIVIDEND PAYOUT RATIO DIVIDEND YIELD (%) 274% 15% 8% 8% 8% 89% 86% 7% 80% 77% 2014 2013 2012 2011 * 2010 2014 2013 2012 2011 * 2010 DIVIDEND PER SHARE (KD) CASH DIVIDEND (USD M) 2,761 0.200 0.065 908 0.040 0.050 0.050 6
Slide 11: EBITDA Margins
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW EBITDA Margins 49.5% 42.2% Group EBITDA margin 42.0% 38.9% 38.8% 36.1% 20.2% 1.0% Kuwait Jordan Bahrain Republic of Sudan Iraq KSA South Sudan 11
Slide 12: Market Penetration Rates
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Market Penetration Rates 221% 181% 180% 127% 92% 84% 57% 19% Kuwait KSA Bahrain Jordan Iraq Lebanon Republic of Sudan South Sudan Source: World Cellular Information Services (WCIS). 12
Slide 13: Customers Contribution and Growth
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Customers Contribution Customers Growth Lebanon South Sudan KSA 27% 5% 2% Kuwait 14% Republic of Sudan KSA 25% 23% Lebanon 4% Bahrain 1% Group -0.4% South Sudan -1% Bahrain 2% Jordan 8% Jordan -1% Kuwait Republic of Sudan -3% 6% Iraq
Slide 14: Revenue Contribution and Blended ARPU
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW Blended ARPU Revenue Contribution $31 Bahrain 5% Kuwait 29% $19 $15 Iraq 33% $9 $9 Jordan $7 12% $5 South Sudan Republic of Sudan 2% 19% Kuwait Bahrain KSA South Jordan Iraq Republic Sudan of Sudan
Slide 15: Kuwait Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN KUWAIT MARKET SHARE FINANCIALS Zain 3.5 m $71,000 36% Population GDP/Capita 88 82 221% 1983 KD Million Penetration Year of launch 40 43 Viva 32% Ooredoo 28 32% 26 2.9 m 100% Customers Ownership Q1-15 Q1-14 $ $31 ARPU Technology :
Slide 16: Iraq Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN IRAQ MARKET SHARE FINANCIALS 35.5 m $14,100 Zain Population GDP/Capita 43% 92% 2003 Penetration Year of acquisition 13.5 m 76% Korek Ownership 19% Customers Asia Cell 38% $ $7 ARPU Technology : 2G, 3G - Number of sites : 4,101 -
Slide 17: Sudan Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN SUDAN MARKET SHARE FINANCIALS 39.4 m $4,500 Zain Population GDP/Capita 41% 1,109 57% 2006 951 Penetration Year of full SDG Million acquisition 11.6 m 100% MTN 430 373 Customers 32% Sudani Ownership 272 27% 180 $ $5 ARPU Q1-15 Q1-
Slide 18: KSA Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN KSA MARKET SHARE FINANCIALS 29.8 m $52,800 Population Zain GDP/Capita 18% 181% 2008 Penetration Year of acquisition 10.6 m 37% STC Mobily Customers 44% 38% Ownership $ $15 ARPU Technology : 2G, 3G, 4G - Number of sites : 6,315 -
Slide 19: Jordan Market Share and Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN JORDAN MARKET SHARE FINANCIALS 7.6 m $11,900 Zain Population GDP/Capita 38% 127% 2003 Penetration Year of acquisition 3.8 m 96.52% Umniah 31% Orange Customers Ownership 31% $ $9 ARPU 110 112 Technology : 2G, 3G, 4G - Number of si
Slide 20: Bahrain Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN BAHRAIN FINANCIALS 1.4 m $51,400 Population GDP/Capita 180% 2003 Penetration Year of launch 785 55% Thousand Customers Ownership $ $19 ARPU Technology : 2G, 3G, 4G - Number of sites : 431 - Coverage : 99% - License : expires in 2
Slide 21: South Sudan Financials
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW ZAIN SOUTH SUDAN FINANCIALS 12.3 m $2,000 Population GDP/Capita 19% 2006 Penetration Year of full acquisition 714 Thousand 100% Customers Ownership $ $9 ARPU 19 Technology : 2G, 3G - Number of sites : 275 - Coverage : 50% - License :
Slide 22: Touch Market Share (Managed by Zain)
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW TOUCH MARKET SHARE MANAGED BY ZAIN 5.0 m $17,900 Touch Population GDP/Capita 53% 84% 2004 Mobile Year of acquisition Penetration 2.1 m MC Customers Ownership Alfa 47% Technology : 2G, 3G, 4G - Number of sites : 1,229 - Coverage : 99%
Slide 23: Balance Sheet
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW BALANCE SHEET Unaudited Audited Unaudited Unaudited Audited Unaudited 31-Mar-15 31-Dec-14 31-Mar-14 31-Mar-15 31-Dec-14 31-Mar-14 Liabilities and Equity KD ‘000 KD ‘000 Current liabilities Assets Trade and other payables 724,966 656,0
Slide 24: Income Statement
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW INCOME STATEMENT Three months ended 31 March 2015 2014 KD’000 Revenue 278,941 311,131 Cost of sales (74,022) (84,216) Three months ended Gross profit 204,919 226,915 31 March 2015 2014 (86,922) (90,935) Earnings per share Operating an
Slide 25: Cash Flow Statement
ZAIN GROUP ZAIN FINANCIAL OVERVIEW OPERATIONS STATEMENTS OVERVIEW CASH FLOW STATEMENT Three months ended Three months ended 31-Mar 31-Mar 2015 2014 2015 2014 KD’000 KD’000 Cash flows from investing activities Cash flows from operating activities Deposits maturing after three months and bank balances
Slide 26: Q&A and Contact
Q&A For More Information Please Contact Zain Group Investor Relations Team : [email protected] Note: All population, GDP per Capita and Mobile Penetration figures are sourced from EIU, WCIS & CIA Fact Book as the end of 2014. Zain Group, Head Office Building P.O. Box 22244, 13083 Safat, Kuwait City, Kuwai