Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — FY2015 Earnings Presentation
30 slides from Maroc Telecom Sa's earnings presentation, February 2016
Slide 1: Annual Results 2015 Presentation to Analysts
ANNUAL RESULTS 2015 Presentation to Analysts
Slide 2: Highlights
HIGHLIGHTS
Slide 3: Highlights
HIGHLIGHTS Business Review Financial Review Outlook HIGHLIGHTS Appendices Confirmation of the Group's Continued strong international EBITDA and EBITA growth growth profile in growth Completion of the acquisition Excellent performance and relaunch Launch of 4G+ of the Fixed-line of the six new in Mor
Slide 4: Macroeconomic Environment
HIGHLIGHTS Business Review Financial Review Outlook MACROECONOMIC ENVIRONMENT Appendices / MOROCCO / / INTERNATIONAL / 5.0% 6,2% 5,8% 6,2% 3.0% 2.4% 2014 2015 2016e 2014 2015 2016e Nominal GDP GDP growth Nominal GDP GDP growth • Sustain solid economic growth • Sustain strong economic growth • Inflat
Slide 5: Operating and Financial Activities
HIGHLIGHTS Business Review OPERATING AND FINANCIAL Financial Review Outlook Appendices ACTIVITIES / GROWTH IN CUSTOMER BASES / (2015 vs. 2014 as a % on a comparable basis) SHARP INCREASE IN THE GROUP’S CUSTOMER BASE TO NEARLY 51 MILLION CUSTOMERS Former subsidiaries New subsidiaries Group -9% +21% +
Slide 6: Success of the Relaunch of 6 New Subsidiaries
HIGHLIGHTS Business Review SUCCESS OF THE RELAUNCH Financial Review Outlook Appendices OF 6 NEW SUBSIDIARIES Accelerated growth in / Revenue growth at constant exchange rates / Niger and Ivory Cost +12.5% +11.4% Robust growth in Benin and Togo Recovery in +2.0% the Central African -1.3% Republic and
Slide 7: Regulatory Highlights
HIGHLIGHTS Business Review Financial Review Outlook REGULATORY HIGHLIGHTS Appendices / MOROCCO / / INTERNATIONAL / • Decision by the ANRT to set the rates for the main • Renewal of licenses 2G in Mauritania and in services contained in the Maroc Telecom Niger, and acquisition of 3G licenses in Niger
Slide 8: Success of the International Development Strategy
HIGHLIGHTS Business Review SUCCESS OF THE Financial Review Outlook Appendices INTERNATIONAL DEVELOPMENT STRATEGY 2013 2014 2015 45% 49% % GROUP CUSTOMER BASE 59% 2013 2014 2015 27% 30% 41% % GROUP REVENUES 2013 2014 2015 24% 26% 33% % EBITDA Morocco International / 2015 ANNUAL RESULTS / 8 /
Slide 9: Results Exceeding the Objectives Announced
HIGHLIGHTS Business Review RESULTS EXCEEDING THE OBJECTIVES Financial Review Outlook Appendices ANNOUNCED 2015 OUTLOOK ACHIEVEMENTS IN 2015 ON A COMPARABLE BASIS* ON A COMPARABLE BASIS* Stable revenues +1.6% Slight drop in EBITDA +0.7% CAPEX around 20% of revenues, excluding frequencies and licenses
Slide 10: Dividend Yield Still Highly Attractive
HIGHLIGHTS Business Review DIVIDEND YIELD Financial Review Outlook Appendices STILL HIGHLY ATTRACTIVE Proposed distribution of MAD 6.36/share 100% of Net Profit Representing a yield of 5,5%* *Based on the February 12, 2016 exchange rate (MAD116.25) / 2015 ANNUAL RESULTS / 10 /
Slide 11: Business Review
BUSINESS REVIEW
Slide 12: Morocco – Mobile
Highlights BUSINESS REVIEW MOROCCO – MOBILE Financial Review CONTINUED PRESSURE ON PRICES Outlook Appendices / USAGE / PRICE ELASTICITY / Outgoing usage +13% MT / POSTPAID / / PREPAID / • Launch of three unlimited Mobile +10% Market • Almost permanent promotional rates: up to packages 31 days of pro
Slide 13: Morocco - Mobile
Highlights BUSINESS REVIEW MOROCCO - MOBILE Financial Review Outlook Appendices / MOBILE CUSTOMER BASE / / MOBILE REVENUES/ (000) (MAD million) 15,214 433 18,230 +0.4% 18,298 14,276 -6.2% -4.9% 219 -49.4% 1,496 1,649 +10.2% 16,734 16,649 14,781 14,058 -0.5% 2014 2014 2015 2015 2014 2015 Prepaid Post
Slide 14: Morocco - Mobile Data
Highlights BUSINESS REVIEW MOROCCO - MOBILE DATA Financial Review CONTINUED EXPANSION OF MOBILE DATA Outlook Appendices / 3G INTERNET CUSTOMER BASE / / ARPU Data / (000) (% ARPU) 6,502 +36.3% 4,771 1,462 +22.2% 20,7% +4.7 pts 16,0% 16.6% 1,196 5,040 +41.0% 3,575 2014 2014 2015 2015 2014* 2015 Prepai
Slide 15: Morocco - Fixed-Line and Internet
Highlights BUSINESS REVIEW MOROCCO - FIXED-LINE AND INTERNET Financial Review STRONG AND STEADY GROWTH IN FIXED-LINE ACTIVITIES Outlook Appendices / FIXED-LINE & INTERNET / FIXED-LINE & ADSL CUSTOMER REVENUES / BASE** / (MAD million) (000) 8,728 +8.6% 8,041 2,217 +7.2% 2,069 1,136 +15.4% 984 2,263 +
Slide 16: International
Highlights BUSINESS REVIEW INTERNATIONAL Financial Review CONTINUED VERY STEADY GROWTH Outlook Appendices / MOBILE CUSTOMER BASE / / REVENUE GROWTH (000) AT CONSTANT EXCHANGE RATES / 29,116 +1.0% 29,424 +12.5% 9,870 11,956 +11.4% +21.1% +9.1% +7.2% +7.4% 19,246 17,468 -9.2% +5.3% +2.0% -1.3% 2014 20
Slide 17: Morocco: Network Modernization
Highlights BUSINESS REVIEW MOROCCO Financial Review NETWORK MODERNIZATION Outlook Appendices / CAPEX (excluding 4G license and frequencies) / / CHANGE IN SINGLE RANs SITES/ (MAD million) (AS A % OF TOTAL NUMBER OF RADIO ACCESS NETWORKS) 15.9% 18.4% CAPEX/REVENUES 54% 3,866 43% +15.1% 3,359 1,132 1,5
Slide 18: International: Continued Investment
Highlights BUSINESS REVIEW Financial Review INTERNATIONAL Outlook CONTINUED INVESTMENT TO MAINTAIN SUBSIDIARY GROWTH Appendices / CAPEX (excluding licenses) / / CHANGE IN RADIO SITES/ (MAD million) 16.8% 16.8% CAPEX/REVENUES 2,347 +52.2% 637 1,542 3,779 +3% 3,662 1,542 1,710 +10.9% 4,140 4,762 +15%
Slide 19: Financial Review
FINANCIAL REVIEW Wi, ead b> | Te lecom ye’
Slide 20: Financial Review: Morocco
Highlights Business Review FINANCIAL REVIEW MOROCCO Outlook HIGH MARGINS AND STRONG CASH GENERATION Appendices MAD million 2014 2015 Change / EBITDA MARGIN / Revenues 21,133 21,033 -0.5% (%) EBITDA 11,578 11,144 -3.8% Gross Margin OPEX Margin (%) 54.8% 53.0% -1.8 pt 54.8% -1.0 pt -0.8 pt 53.0% -1.8
Slide 21: Financial Review: International
Highlights Business Review FINANCIAL REVIEW INTERNATIONAL Outlook STEADY GROWTH IN REVENUES AND CASH GENERATION Appendices Change on a MAD million 2014 2015 Change comparable / EBITDA MARGIN / basis (%) Revenues 8,630 14,010 62.3% 6.9% +2.9 pts -9.3 pts -1.3 pt EBITDA 4,113 5,599 36.1% 10.8% 47,7% 3
Slide 22: Maroc Telecom Group's Consolidated Results
Highlights Business Review FINANCIAL REVIEW MAROC TELECOM GROUP'S Outlook CONSOLIDATED RESULTS Appendices / NET EARNINGS – GROUP SHARE/ Change on a (MAD million) MAD million 2014 2015 Change comparable basis Revenues 29,144 34,134 17.1% 1.6% Change financial results +94 -134 EBITDA 15,691 16,742 6.7
Slide 23: Maroc Telecom Group's Consolidated Cash Flow
Highlights Business Review FINANCIAL REVIEW MAROC TELECOM GROUP'S Outlook CONSOLIDATED CASH FLOW Appendices / NET DEBT/ (MAD MILLION) MAD million 2014 2015 Change 2014 Pro-forma after the acquisition of 6 new EBITDA 15,691 16,742 6.7% subsidiaries Licenses December and December CAPEX 4,901 8,835 80.
Slide 24: Outlook
OUTLOOK
Slide 25: 2016 Outlook
Highlights Business Review Financial Review OUTLOOK 2016 OUTLOOK Appendices / 2016 HIGHLIGHTS / MOROCCO INTERNATIONAL Continued investment to roll out 4G+ Increased investments to ensure a better and broader coverage as well as a better quality of service Competitive pressure on Mobile Conti
Slide 26: Appendices
APPENDICES Maroc ., Telecom yy
Slide 27: Morocco – Global Telecom Market
Highlights Business Review Financial Review MOROCCO – Outlook GLOBAL TELECOM MARKET Appendices / MOBILE : INADEQUATE ELASTICITY FOR / MOBILE : MARKET DROP/ THE SHARP FALL IN PRICES/ 133% 0.41 129% 127% -22% 0.32 0.27 -16% 44.1 83 92 +11% 101 +10% 42.4 +4.0% 43.0 -2.5% 2013 2014 2015 2013 2014 2015 M
Slide 28: Scope of Consolidation of the Maroc Telecom Group
Highlights Business Review Financial Review SCOPE OF CONSOLIDATION OF THE Outlook MAROC TELECOM GROUP Appendices Population: Population: Population: Population: Population: 33.5 million 3.7 million 17.9 million 16.3 million 10.9 million GDP: 102 Md $ GDP: 4.7 Md $ GDP: 11.3 Md $ GDP: 10.9 Md $ GDP:
Slide 29: Important Legal Notices
IMPORTANT LEGAL NOTICES Forward-looking statements This presentation contains forward looking statements and provisional items concerning the financial position, operating results, strategy and outlook of Maroc Telecom and the impacts of certain transactions. Even though Maroc Telecom believes that
Slide 30: Questions / Answers
QUESTIONS / ANSWERS