Mobile Telecommunications Company K.s.c.p · KSE:ZAIN
Mobile Telecommunications Company K.s.c.p — Zain Group — H1 2014 Earnings Presentation
28 slides from Mobile Telecommunications Company K.s.c.p's earnings presentation, Sep 12, 2014
Slide 1: Zain Group Financial Results Presentation H1-2014
ZAIN GROUP Financial Results Presentation H1-2014
Slide 2: Disclaimer
1 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
Slide 3: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 4: Zain at a glance
3 Zain at a glance As of H1-2014 46.5 16.1 4G 329 MILLION MILLION LONG TERM EVOLUTION TB OF DAILY ACTIVE CUSTOMERS IN (LTE) NETWORK IN DATA USAGE CUSTOMERS IRAQ KUWAIT, SAUDI ARABIA,BAHRAIN AND 108 11.4 LEBANON $ 2.2 BILLION MILLION PEOPLE UNDER MILLION CUSTOMERS IN REPUBLIC 141 IN REVENUES LICENSE
Slide 5: The World of Zain
4 The World of Zain As of H1-2014 Ownership: Management Ownership: 76% Ownership: 15.5% Contract Revenues: $856 m Customers: 2.1 m Customers: 16.1 m Prepaid: 86% Prepaid: 99% Market Share: 49% Ownership: 100% Revenues: $645 m Customers: 2.6 m Ownership: 96.52% Prepaid: 72% Revenues: $231 m Market Sh
Slide 6: Key Performance Indicators as of Q2-2014
5 Key Performance Indicators as of Q2-2014 Customers Revenues +5% +2% 46,512 44,392 1,122 1,100 USD Million Thousand Q2-14 Q2-13 Q2-14 Q2-13 EBITDA / Margin Net Income / EPS (3%) (2%) 209 213 474 487 USD Million USD Million 0.05 0.05 44.3% 42.2% Q2-14 Q2-13 Q2-14 Q2-13 EBITDA EBITDA margin Net Incom
Slide 7: Key Performance Indicators as of H1-2014
6 Key Performance Indicators as of H1-2014 Customers Revenues +5% +3% 46,512 44,392 2,226 2,159 USD Million Thousand H1-14 H1-13 H1-14 H1-13 EBITDA / Margin Net Income / EPS +1% +3% 407 397 943 936 USD Million USD Million 0.10 0.10 43.3% 42.3% H1-14 H1-13 H1-14 H1-13 EBITDA EBITDA margin Net Income
Slide 8: Key Performance Indicators: Capex
7 Key Performance Indicators Capex & Capex / Revenues +20% +10% 800 668 608 USD Million 18% 15% 13% 2014 F 2013 2012 Capex Capex / Revenues F = Forecasted
Slide 9: Key Performance Indicators as of 30/6/2014
8 Key Performance Indicators as of 30/6/2014 Total Debt Net Debt & Net Debt / EBITDA +10% +15% 3,090 2,815 1,828 1,590 USD Million USD Million 0.97 2,220 0.84 1,547 1,268 870 H1-14 H1-13 H1-14 H1-13 Net debt Net debt/EBITDA Long Term Short Term Total Debt • Net Debt = Total interest bearing debts (e
Slide 10: Zain Dividends
9 Zain Dividends Dividend Payout Ratio Dividend Yield (%) 274% 15% 8% 8% 89% 86% 7% 77% 2013 2012 2011 * 2010 2013 2012 2011 * 2010 Dividend Per Share (KWD) Cash Dividend (USD m) 0% (23%) (68%) 2,761 0.200 0.065 908 0.050 0.050 690 685 2013 2012 2011 * 2010 2013 2012 2011 * 2010 * Zain Group distrib
Slide 11: EBITDA Margins As of H1-2014
10 EBITDA Margins As of H1-2014 46.8% 42.6% Group EBITDA margin 42.3% 40.9% 39.2% 36.7% 17.5% Kuwait Jordan Republic of Sudan Iraq Bahrain KSA South Sudan -4.4%
Slide 12: Penetration Rates As of H1-2014
11 Penetration Rates As of H1-2014 216% 178% 175% 136% 96% 59% 16% Kuwait Bahrain KSA Jordan Iraq Republic of Sudan South Sudan Source: World Cellular Information Services (WCIS).
Slide 13: Our Customers As of H1-2014
12 Our Customers As of H1-2014 Customers Contribution Customers Growth Q2-14 vs. Q2-13 Lebanon South Sudan 16% Group customer growth 5% 4% 1% KSA 9% 19% Republic of Sudan 6% 25% 4% 3% Bahrain 0.4% 2% Iraq KSA Kuwait Lebanon Bahrain Jordan Republic South of Sudan Sudan Jordan 8% (8%) Kuwait Iraq 6% 3
Slide 14: Blended ARPU & Revenue Contribution as of H1-2014
13 Blended ARPU & Revenue Contribution as of H1-2014 Blended ARPU Revenue Contribution $38 Bahrain 5% Kuwait 29% $20 Iraq 39% $16 $9 $9 $8 Jordan 10% $5 South Sudan Republic of Sudan 2% 15% Kuwait Bahrain KSA Jordan Iraq South Republic of Sudan Sudan
Slide 15: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 16: State of Kuwait
15 State of Kuwait Key Statistics – June 2014 Market Share by Customers Financials Zain 36% 3.4 m $42,100 332 298 Population GDP/Capita 216% 1983 USD Million 150 146 Penetration Year of launch Ooredoo 99 100 Viva 31% 33% 2.6 m 100% Customers Ownership Q2-14 Q2-13 Revenues EBITDA Net Income $38 Techn
Slide 17: Republic of Iraq
16 Republic of Iraq Key Statistics – June 2014 Market Share by Customers Financials Zain 49% 424 434 34.6 m $7,100 Population GDP/Capita USD Million 96% 2003 Korek 168 180 Penetration 107 Year of acquisition 18% 87 Asia Cell 33% 16.1 m 76% Q2-14 Q2-13 Customers Ownership Technology : 2G Revenues EBI
Slide 18: Republic of Sudan
17 Republic of Sudan Key Statistics – June 2014 Market Share by Customers Financials Zain 41% 35.5m $2,600 175 164 1,041 Population GDP/Capita 912 59% 2006 SDG Million USD Million Penetration Year of full 74 70 441 acquisition Sudani 389 MTN 27% 32% 36 198 11.4 m 100% 29 174 Customers Ownership Q2-1
Slide 19: Kingdom of Saudi Arabia
18 Kingdom of Saudi Arabia Key Statistics – June 2014 Market Share by Customers Financials Zain 16% 470 431 29.2 m $31,300 Population GDP/Capita USD Million Mobily 175% 2008 39% STC 45% 71 69 Penetration Year of acquisition 9.1 m 37% (88) (99) Customers Ownership Q2-14 Q2-13 $16 Technology : 4G LTE
Slide 20: Kingdom of Jordan
19 Kingdom of Jordan Key Statistics – June 2014 Market Share by Customers Financials Zain 40% 7.4 m $6,100 129 Population GDP/Capita 119 2003 USD Million 136% Year of acquisition 52 55 Penetration Umniah Orange 29% 31% 34 32 3.8 m 96.52% Q2-14 Q2-13 Customers Ownership Technology : 3G Revenues EBITD
Slide 21: Kingdom of Bahrain
20 Kingdom of Bahrain Key Statistics – June 2014 Financials 1.3 m $29,800 52 Population GDP/Capita 50 USD Million 178% 2003 Technology : 4G LTE Penetration Year of launch Number of sites : 393 18 19 Coverage : 100% 3 4 License : expires in 2028 768 63% Q2-14 Q2-13 Thousand Ownership Revenues EBITDA
Slide 22: Republic of South Sudan
21 Republic of South Sudan Key Statistics – June 2014 Market Share by Customers Financials Zain 39% 18 17 11.6 m $1,400 Population GDP/Capita USD Million MTN 0.3 16% 2006 24% Vivacell Penetration Year of full 33% (2) (0.3) acquisition Gemtel 4% 648 Thousand 100% (16) Customers Ownership Q2-14 Q2-13
Slide 23: Lebanon
22 Lebanon Key Statistics – June 2014 4.9 m $15,800 Population GDP/Capita 80% 2004 Technology : 4G LTE Mobile Year of acquisition Number of sites : 1,116 Penetration Coverage : 99% License : Management Contract (MC) until 31st July, 2014 2.1 m MC Customers Ownership • Zain operates in Lebanon under
Slide 24: Contents
FINANCIAL RESULTS PRESENTATION Contents • Zain Group Overview • Zain Operations Overview • Financial Statements
Slide 25: Balance Sheet
24 Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 30-Jun-14 31-Dec-13 30-Jun-13 30-Jun-14 31-Dec-13 30-Jun-13 Assets KD ‘000 Liabilities and Equity KD ‘000 Current liabilities Current assets Trade and other payables 550,935 542,566 546,733 Cash and bank balances 355,046 399,24
Slide 26: Income Statement
25 Income Statement Six months ended 30-Jun 2014 2013 KD’000 Revenue 626,938 611,940 Cost of sales (175,612) (172,885) Six months ended Gross profit 451,326 439,055 30-Jun 2014 2013 Operating and administrative expenses (179,731) (170,977) Earnings per share Fils Depreciation and amortization (88,11
Slide 27: Cash flow statement
26 Cash flow statement Six months ended Six months ended 30-Jun 30-Jun 2014 2013 2014 2013 KD’000 Cash flows from investing activities KD’000 Cash flows from operating activities Deposits maturing after three months and bank balances blocked 1,575 (3,442) Profit for the period before income tax 140,
Slide 28: Q&A
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 and CIA Fact Book. Zain Group Head Office Building P.O. Box 22244, 13083 Safat, Kuwait City, Kuwait Tel: +965 2464 4