Mobile Telecommunications Company K.S.C.P · KSE:ZAIN
Mobile Telecommunications Company K.S.C.P — Zain Group — Q1 2012 Earnings Presentation
27 slides from Mobile Telecommunications Company K.S.C.P's earnings presentation, May 2012
Slide 1: IR Presentation Q1 2012
IR Presentation Q1 2012 May 2012
Slide 2: Disclaimer
Zain Group Disclaimer Certain expectations and projections regarding future performance of the company referenced in this presentation may be “forward-looking” statements within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at
Slide 3: To Consolidate Our Position in the Region
To Consolidate Our Position in the Region Who we are now : • Zain is an emerging telecoms player operating in 8 countries across the region, serving over 40.3 million active customers. • The company is the leading mobile telecom operator in 5 of its markets. • Revenues: US$ 1.172 billion; EBITDA: US
Slide 4: Zain's Historical Growth
Zain’s Historical Growth From a National Player to an Emerging Markets Leader * MTC Atheer & Iraqna jointly operate under Zain brand 4
Slide 5: Zain Group's Footprint
OVER 40.3 MILLION ACTIVE CUSTOMERS IN 8 COUNTRIES* £31 March 2012
Slide 6: Zain's Key Performance Indicators
Zain’s Key Performance Indicators Revenues (m) EBITDA (m) Net Profit (m) 1,500 1,250 $1,172 $ 1,163 1,000 750 $ 543 $ 530 500 $ 255 $ 251 250 0 Q1-2012 Q1-2011 6
Slide 7: Penetration Rates
Penetration Rates South Sudan 22% Republic of Sudan 52% Lebanon 74% Iraq 74% Jordan 124% Kuwait 160% KSA 184% Bahrain 221% 7
Slide 8: Top Companies in Middle East
Top 10 Companies in Middle East Market Cap (Billion) Market Market Cap ($Billion) N Company Cap $b 1 Saudi Basic Industries Corp 83.2 SABIC 83.2 Alrajhi 31.5 2 Alrajhi Bank & Investment Corp 31.5 Qatar National Bank 25.8 3 Qatar National Bank 25.8 STC 22.7 6 Saudi Telecom Co (STC) 22.7 Qatar Industr
Slide 9: Top Telecom Companies in Middle East & Africa
Top Telecom Companies in Middle East & Africa Market Cap (Billion) N Company Market Cap $b Market Cap ($Billion) 1 MTN 32.2 MTN 32.2 2 Saudi Telecom Co (STC) 22.7 STC 22.7 4 Vodacom 20.3 Vodacom 20.3 3 Emirates Telecom (Etisalat) 18.5 Etisalat 18.5 5 Maroc Telecom 13.3 Maroc Telecom 13.3 6 Etihad Et
Slide 10: Zain Group Country Breakdown Q1-2012
Zain Group Country Breakdown Q1-2012 Zain Group Customers Zain Group Revenues South Sudan Iraq 1% 36% Kuwait 26% Jordan 10% Bahrain 4% Republic of Sudan 23% 10
Slide 11: Zain Group Customer Growth Q1-2012 vs. Q1-2011
Zain Group Customer Growth Q1-2012 vs. Q1-2011 Group Customer Growth : +7% Republic of Sudan 25% Jordan 16% Lebanon 16% Kuwait 14% Bahrain 11% Iraq 4% -23% KSA 11
Slide 12: Blended ARPUs Q1-2012
Blended ARPUs Q1-2012 Kuwait $45 Bahrain $27 KSA $18 South Sudan $14 Jordan $13 Iraq $11 Republic of Sudan $7 12
Slide 13: EBITDA Margins Q1-2012
EBITDA Margins Q1-2012 60% 49.0% Group EBITDA: %46.3 50% 47.0% 46.0% 44.5% 40% 34.0% 30% 20% 16.0% 10.0% 10% 0% Kuwait Republic Iraq Jordan Bahrain KSA South of Sudan Sudan 13
Slide 14: Zain's Operations
Zain’s Operations Q1 2012
Slide 15: Kuwait
. Kuwait Contribution to Group total - Population: 2% Customers: 6% Revenues: 26% - Customer YoY Growth: 14% • Zain Kuwait, the Group’s flagship stayed ahead of its competitors and was able to maintain its leading position with a 42% market share. • The launch of new Happy hour offer, Student zone a
Slide 16: Iraq
Iraq Contribution to Group total - Population: 25% Customers: 31% Revenues: 36% - Customer YoY Growth: 4% • After acquiring a 15-year nationwide license for US$ 1.25 billion in August 2007 and its acquisition of a rival operator Iraqna for US$1.2 billion in December 2007, Zain became the largest mob
Slide 17: Republic of Sudan
Republic of Sudan Contribution to Group total - Population: 34% Customers: 33% Revenues: 23% - Customer YoY Growth: N/A • Zain entered Sudan through its 2005 acquisition of Celtel which had a minority 39% stake in Mobitel, Sudan’s first mobile operator. In February 2006, the remaining 61% was fully
Slide 18: South Sudan
South Sudan Contribution to Group total - Population: 8% Customers: 1% Revenues: 1% - Customer YoY Growth: N/A • In June 2011, Republic of Sudan and South Sudan have successfully completed the separation process. Accordingly, Zain Group commenced separating the two entities by having different finan
Slide 19: Jordan
Jordan Contribution to Group Total - Population: 5% Customers: 7% Revenues: 10% Customer YoY Growth: 16% • In January 2003, Zain Jordan was the Group’s first acquired operation for a value of US$ 418.9 million. • Despite the heightening of price competition and the pressure on lowering voice prices,
Slide 20: Bahrain
Bahrain Contribution to Group Total - Population: 1% Customers: 1% Revenues: 4% - Customer YoY Growth: 11% • A Greenfield operation, Zain Bahrain launched its commercial services in December 2003. • Bahrain has the highest mobile penetration in the GCC region with 221%. • Despite the entrant of the
Slide 21: Kingdom of Saudi Arabia
Kingdom of Saudi Arabia Contribution to Group Total - Population: 21% Customers: 16% - Customer YoY Growth: (23%) • Zain KSA launched commercial services in late August 2008, a year after it was rewarded its mobile license. • Zain KSA board and management team are actively working on the company’s p
Slide 22: Lebanon
Lebanon Contribution to Group Total - Population: 3% Customers: 5% - Customer YoY Growth: 16% • Zain operates in Lebanon under a management contract since June 2004, when it was rebranded to mtc-touch. • The operation launched 3G services in November 2011, which is also expected to contribute to fur
Slide 23: Financial Statements
Financial Statements Q1 2012
Slide 24: Balance Sheet
Balance Sheet Unaudited Audited Unaudited Unaudited Audited Unaudited 31-Mar-12 31-Dec-11 31-Mar-11 31-Mar-12 31-Dec-11 31-Mar-11 Liabilities and Equity KD ‘000 Assets KD ‘000 Current liabilities Trade and other payables 783,375 506,541 577,733 Current assets Due to banks 149,121 313,823 230,454 Cas
Slide 25: Income Statement
Income Statement Three months ended Three months 31-Mar ended 2012 2011 31-Mar KD’000 2012 2011 Continuing operations KD’000 Revenue 325,729 324,378 Discontinued operations Cost of sales -87,891 -86,534 Gross profit 237,838 237,844 Release of provisions - 16,320 Profit for the period 77,680 77,458 D
Slide 26: Cash flow Statement
Cash flow Statement Three months Three months ended ended 31-Mar 31-Mar 2012 2011 2012 2011 KD’000 KD’000 Cash flows from operating activities Cash flows from investing activities Profit for the period before income tax of continuing and Deposits maturing after three months -15,065 - 92,387 86,069 d
Slide 27: Thank You
Thank You For more information, please contact Investor Relations Team at: [email protected]