Maroc Telecom Sa · CSEMA:IAM
Maroc Telecom Sa — FY2009 Earnings Presentation
39 slides from Maroc Telecom Sa's earnings presentation, Feb 23, 2010
Slide 1: 2009 Consolidated Results
2009 Consolidated Results February 23, 2010
Slide 2: Highlights, Business review, Financial results, Outlook
Highlights Business review Financial results Outlook 1 February 2010
Slide 3: Operating environment in Morocco
Highlights Operating environment in Morocco Economy: GDP growth & Inflation +5% GDP growth in 2009, buoyed by agricultural sector and resurgence in non-agricultural sectors in HY2 Deceleration in inflation (+1% in 2009 vs. +3.9% in 2008) Telecoms market: Slowdown in growth Price cuts and acc
Slide 4: Maroc Telecom's market positioning
Highlights Maroc Telecom’s market positioning Market share** Customer base Mobile: Customer base* 15.3 million / +5.6% vs 2008 60.8% o/w Postpaid 0.68 million / +13.1% vs 2008 Internet: Customer base 645,000 / +26% vs 2008 56.4% o/w ADSL 469,000 / -1.7% 3G+ 174,000 / 6x Fixed-Line: Customer ba
Slide 5: Operating environment in Sub-Saharan Africa
Highlights Operating environment in Sub-Saharan Africa Positive economic growth +1.6% GDP* growth in 2009, but income per capita fell by 0.8% Deceleration in inflation (from 13.6% in 2008 to 7.6% in 2009) FDI dries up Strong market growth Penetration rate stands below 50% Growth in subsidi
Slide 6: The Group continues to conquer new markets
Highlights The Group continues to conquer new markets International development continues with the acquisition of Sotelma in Mali A full-service operator active in six countries representing: Population of 65 million 21.7 million customers (versus 19.2m in 2008) 15% of 2009 consolidated revenu
Slide 7: Results exceed expectations
Highlights Results exceed expectations 2009/2008 Guidance Reported Revenues MAD30,339 m +2.8% Around 2% Earnings from operations MAD14,008 m +0.9% Around 45% Operating margin 46.2% Net earnings – Group share MAD9,425 m -1.0% 6 February 2010
Slide 8: Dividend
Dividend Proposed dividend of MAD10.31 per share, representing: 100% of distributable earnings Dividend yield of 7% 7 February 2010
Slide 9: Highlights, Business review, Financial results, Outlook
Highlights Business review Financial results Outlook 8 February 2010
Slide 10: Mobile operations in Morocco: Highlights
Business review Mobile Mobile operations in Morocco: Highlights Overhaul and enrichment of range of postpaid call plans Reduction in international call rates Introduction of a loyalty program for prepaid customers Introduction of permanent bonuses for prepaid customers Launch of a mobile banking off
Slide 11: Mobile operations in Morocco: Customer base and market share
Business review Mobile Mobile operations in Morocco: Customer base and market share Customers, '000 31/12/07 31/12/08 31/12/09 Var. yoy Customer base 13,327 14,456 15,272 5.6% Postpaid** 505 603 682 13.1% Prepaid 12,822 13,853 14,590 5.3% Market share* 66.5% 63.4% 60.8% -2.6 pts Postpaid** 63.1% 65.
Slide 12: Mobile operations in Morocco: ARPU and usage
Business review Mobile Mobile operations in Morocco: ARPU and usage Blended ARPU Blended usage (MAD/client/month) (Minutes/client/month) 108 99 98 76 71 71 24 19 Incoming 21 52 50 52 Outgoing 2007 2008 2009 2007 2008 2009 Slight decline in ARPU (down 1.4%) thanks to improvement in outgoing ARPU (usa
Slide 13: Mobile operations of African subsidiaries: Customer bases and ARPU
Business review Mobile Mobile operations of African subsidiaries: Customer bases and ARPU 31/12/07 31/12/08 31/12/09 Var. yoy* Mauritania Customer ('000) 905 1,141 1,335 17.0% ARPU (MAD) 92 70 59 -12.0% Burkina Faso Customer ('000) 564 977 1,569 60.6% ARPU (MAD) 144 95 73 -20.5% Gabon Customer ('000
Slide 14: Mobile revenues
Business review Mobile Mobile revenues MADm - IFRS 2008 2009 Var. 08/09* published comparable basis published Comp.basis Revenues** 21,183 21,491 22,190 3.4% Maroc Telecom 18,529 18,529 18,866 1.8% Mauritel 898 898 935 7.3% Onatel 881 881 1,162 33.0% Gabon Télécom 692 692 688 0.1% Sotelma - 363 414
Slide 15: Mobile margin
Business review Mobile Mobile margin MADm - IFRS 2008 2009 Var. 08/09* published comparable basis published Comp.basis EBITDA 12,876 13,092 13,166 0.7% Maroc Telecom 11,891 11,891 11,555 -2.8% Mauritel 521 521 474 -6.3% Onatel 473 473 657 39.9% Gabon Télécom 191 191 246 30.2% Sotelma - 177 257 43.8%
Slide 16: Fixed-Line and Internet in Morocco: Highlights
Business review Fixed-Line and Internet Fixed-Line and Internet in Morocco: Highlights Fixed-Line: Increase in monthly line rental charge / reduction in international call rates Introduction of mobile unlimited call plans for Business customers Internet Continuation of process of doubling ADSL
Slide 17: Domestic market customer bases
Business review Fixed-Line and Internet Domestic market customer bases 000 31/12/07 31/12/08 31/12/09 Var. yoy Fixed-line customer base 1,336 1,299 1,234 -5.0% Residential 825 775 707 -8.8% Corporate 351 364 369 1.4% Public telephony 160 160 158 -1.3% Internet customer base 476 512 645 26.0% o/w Fix
Slide 18: Subsidiaries' customer bases
Business review Fixed-Line and Internet Subsidiaries’ customer bases Customer base - '000 31/12/07 31/12/08 31/12/09 Var. yoy Mauritania Fixed-line 36 49 41 -16.3% Internet 5 9 6 -33.3% Burkina Faso Fixed-line 122 145 152 4.8% Internet 12 17 23 35.3% Gabon Fixed-line 24 33 36 9.1% Internet 10 14 20
Slide 19: Fixed-Line & Internet revenues
Business review Fixed-Line and Internet Fixed-Line & Internet revenues MADm - IFRS 2008 2009 Var. 08/09* published comparable basis published Comp.basis Revenues** 11,319 11,494 11,106 -3.2% Maroc Telecom 9,683 9,683 9,312 -3.8% Mauritel 256 256 263 5.8% Onatel 758 758 770 2.4% Gabon Télécom 622 622
Slide 20: Fixed-Line & Internet margin structure
Business review Fixed-Line and Internet Fixed-Line & Internet margin structure MADm - IFRS 2008 2009 Var. 08/09* published comparable basis published Comp.basis EBITDA 4,765 4,785 4,983 4.3% Maroc Telecom 4,511 4,511 4,603 2.0% Mauritel 51 51 74 48.0% Onatel 133 133 101 -23.8% Gabon Télécom 69 69 22
Slide 21: Highlights, Business review, Financial results, Outlook
Highlights Business review Financial results Outlook 20 February 2010
Slide 22: Consolidation scope and other elements
Financial results Consolidation scope and other elements Changes in the consolidation scope: Deconsolidation of Mobisud France as from June 1, 2009 Integration of Sotelma as from August 1, 2009 Other elements: Non-recurring items impacting on: EBITDA: positive MAD302 million Earnings from
Slide 23: Consolidated income statement
Financial results Consolidated income statement • in Morocco ,intensification in promotional MADm - IFRS 2008 2009 % Var efforts, increase in interconnection costs and amortization and depreciation. • Operating expenses (excl. amortization) rose Revenues 29,521 30,339 2.8% by 0.9% but fell by more t
Slide 24: Consolidated balance sheet
Financial results Consolidated balance sheet MADm - IFRS 2008 2009 % Var Non current assets 25,033 33,096 32.2% Current assets 13,450 12,824 -4.7% • Impact of consolidation of Sotelma o/w cash 2,678 874 -67.4% Balance sheet total 38,483 45,920 19.3% • Excluding net earnings for the period, total equ
Slide 25: Cash flow statement
Financial results Cash flow statement En MADm - IFRS 2008 2009 Variation Valeur % Cash flow – Operating activities 11,580 14,816 3,236 27.9% Cash flow – Investing activities -4,838 -8,583 -3,745 -77.4% Cash flow – Financing activities -7,803 -8,002 -199 -2.6% Change in cash position -1,048 -1,804 -7
Slide 26: Capital expenditure
Financial results Capital expenditure MADm - IFRS 2007 2008 2009 Var. yoy Capex - consolidated 5,466 5,957 5,847 -1.8% % consolidated revenues 19.9% 20.2% 19.3% -0.9 pts Mobile 3,279 3,614 3,676 1.7% % Mobile gross revenues 17.0% 17.1% 16.6% -0.5 pts Fixed and Internet 2,188 2,343 2,171 -7.3% % Fixe
Slide 27: Highlights, Business review, Financial results, Outlook
Highlights Business review Financial results Outlook 26 February 2010
Slide 28: 2010 prospects
Outlook 2010 prospects In Morocco, In subsidiaries, GDP growth to be maintained at 4% Resumption in GDP growth (4.3%) Continued rollout of ambitious capex Accelerated FDI projects: infrastructure, energy, etc. Potential Mobile penetration growth of Inflation is under control with at leas
Slide 29: Four strategic thrusts
Outlook Four strategic thrusts • More service at lower prices • Capacity Abundance • Loyalty • Triple-play • Distribution Customer C onvergence • Business customers relations • Quality • Networks Segmentation • More granular segmentation • Adapted sales offerings 28 February 2010
Slide 30: Clear objectives
Outlook Clear objectives In Morocco, In subsidiaries Maintain leadership Achieve leadership while controlling through network margins expansion, introduction of new offerings and improved service Maintain growth via quality investment and international development Increase profitability thro
Slide 31: 2010 Guidance
Outlook 2010 Guidance Moderate growth in revenues, driven mainly by growth of subsidiaries Profitability to be maintained at high levels while pursuing a sustained program of capital expenditure 30 February 2010
Slide 32: Appendices
Appendices Consolidated data Morocco key figures Mauritania key figures Burkina Faso key figures Gabon key figures Mali key figures 31 February 2010
Slide 33: Consolidated data
Appendix Consolidated data en MADm - IFRS 2008** 2009 Var. published comp.basis published comparable basis* Consolidated revenues 29,521 29,996 30,339 1.3% Mobile (gross) 21,183 21,491 22,190 3.4% Fixed and Internet (gross) 11,319 11,494 11,106 -3.2% EBITDA 17,641 17,877 18,149 1.7% %revenues 59.8%
Slide 34: Morocco
Appendix Morocco Population 31.9 million GDP $90.78 billion +5.0% in 2009(r) / +3.2% in 2010(f) Income per capita (ppp) ≈ $4,590 / +5.2% in 2009(e) Inflation +1.0% in 2009(r) / +2.8% in 2010(f) 1 Euro = MAD 11.26 / -0.8% vs. 2008 Source: IMF, HCP MADm - IFRS 2008 2009 Variation Gross reven
Slide 35: Mauritania
Appendix Mauritania Interest 41% Control 52% Population 3.1 million GDP $3.24 billion +2.4% in 2009(e) / +4.7% in 2010(f) Income per capita (ppp) ≈ $2,100 / +1.5% in 2009(e) Inflation +6.0% in 2009(e) / +5.5% in 2010(f) MAD 1 = 32.38 Ouguiya (MRO) / -3.1% vs. 2008 Source: IMF MADm - IFRS 2
Slide 36: Burkina Faso
Appendix Burkina Faso Interest 51% Control 51% Population 14,4 million GDP $7.78 billion +3.5% in 2009(e) / +4.1% in 2010(f) Income per capita (ppp) ≈ $1,300 / +2.8% in 2009(e) Inflation +2.4% in 2009(e) / +2.0% in 2010(f) MAD 1 = FCFA 58.20 / -0.8% vs. 2008 Source: IMF MADm - IFRS 2008 20
Slide 37: Gabon
Appendix Gabon Interest 51% Control 51% Population 1,5 million GDP $10.94 billion -1.0% in 2009(e) / +2.6% in 2010(f) Income per capita (ppp) ≈ $14,420 / -0.9% in 2009(e) Inflation +1.1% in 2009(e) / +4.0% in 2010(f) MAD 1 = FCFA 58.20 / -0.8% vs. 2008 Source: IMF MADm - IFRS 2008 2009 Var
Slide 38: Mali
Appendix Mali Interest 51% Control 51% Population: 13,7 million GDP: $8.76 billion +4.1% in 2009(e) / +4.5% in 2010(f) Income per capita (ppp): ≈ $1,170 / +3.6% in 2009(e) Inflation: +2.4% in 2009(e) / +2.0% in 2010(f) MAD 1 = FCFA 58.20 / -0.8% vs. 2008 Source: IMF MADm - IFRS 2008 2009 V
Slide 39: Disclaimer
Disclaimer This presentation may contain forward-looking statements with respect to Maroc Telecom. Such statements, which are not historical facts, reflect management’s opinions concerning the results of its strategy and forecasts relating to new or existing programs, technological developments or m