Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — H1 2012 Earnings Presentation
34 slides from Maroc Telecom Sa's earnings presentation, Jul 24, 2012
Slide 1: Results of First-Half 2012
RESULTS OF FIRST-HALF 2012 Presentation to analysts July 24, 2012
Slide 2: Group Performances
GROUP PERFORMANCES Business overview Financial results Outlook
Slide 3: Maroc Telecom's business environment
Maroc Telecom’s business environment Steady growth in sub-Saharan Africa and slower growth in Morocco GDP growth 5.0% 4.0% 4.2% MOROCCO 3.4%(1) 2.4%(2) • Slowdown in the economies of partner countries of Morocco 779 811 838 • Downturn in grain harvest • Rise in fuel prices 2010 2011 2012e Value (MAD
Slide 4: Maroc Telecom's business environment: competition
Maroc Telecom’s business environment Intense competition in Morocco and stable conditions in sub-Saharan Africa Morocco: persistent competition in mobile market • Price cuts continue to boost usage • Despite the maturity of the mobile market • Significant decline in MTRs weigh on incoming revenues +
Slide 5: Maroc Telecom's first-half 2012
Maroc Telecom’s first-half 2012 Strong growth in customer bases and international revenues Growth of customer bases (H1-12 vs. H1-11 in %) Group customer base growth of 14.4% +64% +59% • Morocco: customer base growth of 21% for postpaid mobile, 71% for 3G internet, and +28% +14.4% 19.4% for ADSL +7.
Slide 6: Cost reduction plan
Cost reduction plan Voluntary redundancy plan • headcount reduced so far by 800 employees • restructuring provision of MAD 800 million covering the entire projected voluntary redundancy plan Network restructuring Cut in subsidies Ongoing efforts to optimize costs 6
Slide 7: Results of first-half 2012
Results of first-half 2012 Strong international growth and solid cash flow during the half-year (MAD millions) Morocco International Group Revenues 11,876 3,488 15,172 Change -5.3% +20.9% -1.0% EBITDA 6,834 1,524 8,358 Change -4.8% +33.4% +0.5% % revenues 57.5% 43.7% 55.1% CFFO 4,901 557 5,458 Chang
Slide 8: Results of first-half 2012
Results of first-half 2012 Increasing contribution of subsidiaries to Group results % Group revenues FY 2010 H1 2011 FY 2011 H1 2012 18% 19% 20% 23% % Group EBITDA FY 2010 H1 2011 FY 2011 H1 2012 13% 14% 14% 18% 8
Slide 9: Business Overview
Group performances BUSINESS OVERVIEW Financial results Outlook
Slide 10: Mobile in Morocco: highlights of H1 2012
Mobile in Morocco: highlights of H1 2012 Marketing policy focused on stimulating usage through price cuts and enhanced offers Promotional offers: 1h for MAD 29 / 1h for MAD 20 129 Jawal top-up x2 / x3 Jawal top-up x3 / x4 / x5 Jawal top-up x5 / x6 84 47 44 48 xx promotional days 27 24 39 19 17 14 In
Slide 11: Mobile in Morocco: change in revenues
Mobile in Morocco: change in revenues Outbound revenues stable Change in price per minute Change in outbound consumption Mobile client base (%) (%) (millions) -23% -25% -27% -28% 40% 40% +2.3% 27% 17.0 17.0 17.1 17.2 17.4 23% 0.93 0.96 1.02 1.08 1.13 +21% 1.13 16.1 16.0 16.1 16.1 16.3 +1.2% Q3-11 Q4
Slide 12: Mobile in Morocco: change in revenues
Mobile in Morocco: change in revenues Inbound revenues impacted by lower MTRs National Mobile termination rates Change in inbound mobile traffic (MAD/min) (%) -53% 25.0% 27.0% 0.62 0.47 13.0% 16.0% 0.29 H1-11 H2-11 H1-12 Q3-11 Q4-11 Q1-12 Q2-12 Change in inbound mobile revenues (%) Q3-11 Q4-11 Q1-12
Slide 13: Mobile in Morocco: change in revenues
Mobile in Morocco: change in revenues Mobile revenues down because of lower MTRs ARPU (MAD) -5.7% 86.3 • Strong impact of lower MTRs on 81.4 inbound ARPU 20.9 -18.2% 17.1 • Decline in outbound ARPU offset by the 65.6 -1.7% 64.3 strong growth of consumption 8.7% 9.1% • Rise in data in ARPU due to the
Slide 14: Fixed lines in Morocco: business development
Fixed lines in Morocco: business development Price cuts and enhanced content for rate plans Fixed-line and internet customer base Fixed-line revenues (thousands) (MAD millions) 1,762 +6.4% 1,875 3,836 -11.3% 3,404 869 528 +19.3% 630 +2.6% 892 1,234 2,957 -15.1% +0.9% 1,245 2,512 23% 26% H1-11 H1-12
Slide 15: International activity: H1 2012 highlights
International activity: H1 2012 highlights Competitive environment stabilized; gain in market share H1-11 H1-12 MAURITANIA 58% 59% • Success of offer combining voice, SMS, and mobile internet • Increase in usage • Increased share in international tariffs 1,827 1,956 +7.1% 44% 43% BURKINA FASO • Comp
Slide 16: International activity: change in revenues and customer bases
International activity: change in revenues and customer bases Strong growth in customer bases and revenues Mobile, fixed-line, and internet customer bases (thousands) +37% 12,003 10,023 10,431 8,735 9,100 • Growth of customer base driven by mobile (+39%) Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Change in inter
Slide 17: Financial Results
Group performances Business overview FINANCIAL RESULTS Outlook
Slide 18: Consolidated results
Consolidated results Results in line with Group forecasts (MAD millions) H1-2011 H1-2012 Change Revenues 15,323 15,172 -1.0% EBITDA 8,318 8,358 +0.5% Margin (%) 54.3% 55.1% +0.8 pt EBITA High margins 6,094 5,955 -2.3% maintained (before restructuring) Margin (%) 39.8% 39.3% 40.1% -0.5 pt EBITA 6,094
Slide 19: Consolidated revenues
Consolidated revenues International growth compensates for slowdown in Morocco Consolidated revenues ∆ Revenues (MAD millions) 15,323 Maroc Telecom +603 15,172 -1.0% 2,885 -669 ∆ International revenues 3,488 +20.9% 12,545 11,876 -5.3% H1-2011 Maroc Telecom International H1-2012 Morocco’s revenues (M
Slide 20: EBITDA
EBITDA Slower decline in Morocco thanks to cost control, strong improvement in international profitability ∆ EBITDA +381 Consolidated 8,318 8,358 +0.5% EBITDA Maroc Telecom (MAD millions) 1,143 ∆ EBITDA 1,524 +33.4% -341 International 7,175 6,834 -4.8% H1-2011 Maroc Telecom International H1-2012 EBI
Slide 21: EBITA / Net income – Group share
EBITA / NET INCOME – GROUP SHARE Higher depreciation and amortization, restructuring charges, and one-off Moroccan tax affect EBITA and net income Consolidated EBITA EBITDA Before restructuring (MAD millions) ∆ Depreciation and +40 Restructuring 6,094 amortization 5,955 -2.3% charges 518 ∆ EBITDA -1
Slide 22: Cash flow
Cash flow Strong growth in CFFO (MAD millions) H1-2011 H1-2012 Change EBITDA 8,317 8,358 +0.5% Morocco 7,175 6,834 -4.8% International 1,143 1,524 +33.4% CAPEX -2,009 -2,016 +0.3% Efficient CAPEX % revenues 13.1% 13.3% +0.2 pt Morocco -1,222 -1,348 +10.3% International -788 -668 -15.2% ∆ WCR -1,592
Slide 23: Outlook
Group performances Business overview Financial results OUTLOOK
Slide 24: Outlook unchanged for 2012
Outlook unchanged for 2012 Trends for 2012: focus on cash flow Morocco International • Continued price cuts and increased • Stabilized competitive environment usage • Revenue growth in all countries • Growth in ADSL • Optimized spending • Lower CAPEX • Net decrease in CAPEX Outlook 2012 (excl. restr
Slide 25: Appendices
Maroc , APPENDICES Telecom 2”
Slide 26: Regulatory context in Morocco
Regulatory context in Morocco Lower MTRs with asymmetry maintained Average MTR* (MAD/minute) 0.9232 Inwi 0.7485 Méditel 0.6601 Maroc Telecom 0.6238 0.5390 0.4679 0.4152 0.3390 0.2534 0.2943 0.2288 0.2066 0.1517 * Average MTR of peak and offpeak times 26
Slide 27: Morocco
Morocco MAD Millions H1-2011 H2-2012 Change Revenues 12,545 11,876 -5.3% Mobile 9,418 8,937 -5.1% Services 8,922 8,630 -3.3% Equipment 496 307 -38.1% Fixed-line 3,836 3,404 -11.3% Fixed-line Data 869 892 -2.6% Elimination -708 -464 EBITDA 7,175 6,834 -4.8% Margin (%) 57.2% 57.5% 0.3 pt EBITA 5,576 5
Slide 28: Morocco
Morocco Population 32.5 million In MAD millions - IFRS H1-2011 H1-2012 Change Revenues 12,545 11,876 -5,3% GDP $100.3 billion Mobile 9,418 8,937 -5.1% Service 8,922 8,630 -3.3% +3.4%/2.4%* in 2012e Equipment 496 307 -38.1% Fixed-line et Internet 3,836 3,404 -11.3% Revenue per Fixed-line Data 869 892
Slide 29: International
International MAD Millions H1-2011 H1-2012 Change Change like to like Revenues 2,885 3,488 20.9% 21.7% Mauritania 601 667 11.1% 10.0% incl. Mobile Services 505 607 20.1% 18.9% Burkina Faso(1) 846 1,028 21.6% 22.9% incl. Mobile Services 667 845 26.6% 28.0% Gabon 472 635 34.5% 36.0% incl. Mobile Servi
Slide 30: Mauritania
Mauritania Population 3.3 million Change like In MAD millions – IFRS H1-2011 H1-2012 for like GDP $4.1 billion Revenues 601 667 +10.0% +5.1% in 2012e Mobile services 505 607 +18.9% Revenue per ≈ $2,268 in 2012e inhabitant (PPP) Inflation +6.0% in 2012e Change like Mobile H1-2011 H1-2012 for like 1 M
Slide 31: Burkina Faso
Burkina Faso Population 15 million Change like In MAD millions – IFRS H1-2011 H1-2012 for like GDP $10.21 billion Revenues 846 1,028 +22.9% +5.0% in 2012e Mobile services 667 845 +28.0% Revenue per $1,524 in 2012e inhabitant (PPP) Inflation +2.5% in 2012e Change like Mobile H1-2011 H1-2012 for like
Slide 32: Gabon
Gabon Population 1.5 million Change like In MAD millions - IFRS H1-2011 H1-2012 for like GDP $18 billion Revenues 472 635 +36.0% +5.6% in 2012e Mobile services 220 332 +52.5% Revenue per $ 17,053 in 2012e inhabitant (PPP) Inflation +2.3% in 2012e Change like Mobile H1-2011 H1-2012 for like 1 MAD = 5
Slide 33: Mali
Mali Population 13.8 million Change like In MAD million - IFRS H1-2011 H1-2012 for like GDP $11.1 billion Revenues 976 1,186 +22.8% +6.0% in 2012e Mobile services 812 1,004 +25.0% Revenue per $1,173 in 2012e inhabitant (PPP) Inflation +6.0% in 2012e Change like Mobile H1-2011 H1-2012 for like 1 MAD
Slide 34: Telecom
Telecom