emirates telecommunications corporations etisalat...top 10 gcc companies (1) most valuable telecom...
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Etisalat Group
Investor Presentation
May 2016
Aspire Forward
Emirates Telecommunications Group Company PJSC and its subsidiaries (“Etisalat Group” or the “Company”) have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions or estimates, or other information contained in this Presentation.
The information contained in this Presentation is an overview and should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary.
Where this Presentation contains summaries of documents, those summaries should not be relied upon and the actual documentation must be referred to for its full effect.
This Presentation includes certain “forward-looking statements”. Such forward-looking statements are not guarantees of future performance and involve risks of uncertainties. Actual results may differ materially from these forward-looking statements.
2
Disclaimer
Agenda
3
1. Key Company Highlights
2. Financial Overview
3. Appendix
1. Key Company Highlights
Key Company Highlights
5
Highly Rated Telco
(Aa3/AA-/A+) with Low
Leverage
Most valuable
Telecom Operator
With Largest Market
Cap among Middle
East & Africa Telcos
Leading Telecom
Operator With highest
revenue and EBITDA
among Middle East &
Africa Telcos
Strong FCF Profile with
Consistent History of
Returning Capital to
Shareholders
1
4
5 2
Diversified Operator
with Exposure to
Attractive and High
Growth Markets Across
Africa and Asia
3
Top Telecom Companies in ME & Africa
6
Top 10 GCC Companies(1)
Most Valuable Telecom Operator in the Middle East and Africa
Source: Bloomberg Data as at 5 May 2016
(1) Ranking by Market Cap
1
Top 10 UAE Companies(1)
$45bn
$34bn
$19bn
$17bn
$12bn
$9bn
$8bn
$8bn
$6bn
$5bn
$3bn
$2bn
Etisalat
STC
MTN Group
Vodacom
Maroc Tel
Turk Cell
Du
Ooredoo
Mobily
Zain Group
Vodafone Qatar
Global Telecom
$66bn
$45bn
$34bn
$32bn
$25bn
$18bn
$17bn
$15bn
$12bn
$12bn
SABIC
Etisalat
STC
Qatar National Bank
Al Rajhi Bank
Saudi Electricity
Industries Qatar
FGB Bank
Kingdom Holding
Emaar Proporties
$45bn
$15bn
$15bn
$12bn
$12bn
$12bn
$10bn
$9bn
$6bn
$5bn
Etisalat
DP World
FGB Bank
Emirates NBD
Emaar Proporties
NBAD
Emaar Malls
ADCB
DIB
Aldar Properties
7
Leading Telecom Operator in the Middle East and Africa
Source: Bloomberg Data as at 5 May 2016
2
FY 2015 Revenue (USD bn) FY 2015 EBITDA (USD bn)
Top 10 Telecom Companies in Middle East and Africa
3.6
3.8
3.8
4.5
5.1
5.4
8.8
10.2
13.5
14.1
Maroc Tel
Zain Group
Mobily
Turk Cell
Turk Telecom
Vodacom
Ooredoo
MTN Group
STC
Etisalat Group
1.4
1.5
1.6
1.8
1.8
1.9
3.5
4.2
5.0
7.2
Turk Cell
Du
Zain Group
Maroc Tel
Turk Telecom
Vodacom
Ooredoo
MTN Group
STC
Etisalat Group
Diversified Telecom Operator
8
Etisalat Misr, Egypt
Licence type Mobile & Internet
% Ownership 66%
Canar, Sudan
Licence type Fixed
% Ownership 92%
Etisalat, Afghanistan
Licence type Mobile
% Ownership 100%
(1) The 53% stake in Maroc Telecom is held by Etisalat Investment North Africa LLC (EINA), an indirect subsidiary of Etisalat in which Etisalat holds effective ownership of 91.3% and Abu Dhabi Fund for Development holds the remaining 8.7%.
(2) Maroc Telecom ownership.
Maroc Telecom, Morocco
Licence type Mobile, Fixed & Internet
% Ownership(1) 53%
Mauritel, Mauritania
Licence type Mobile, Fixed & Internet
% Ownership(2) 41%
PTCL, Pakistan
Licence type Mobile, Fixed & Internet
% Ownership 23%
Etisalat Lanka, Sri Lanka
Licence type Mobile
% Ownership 100%
Thuraya, UAE
Licence type Satellite telecommunication
% Ownership 28%
Network coverage
140 countries
Etisalat, UAE
Licence type Mobile, Fixed & Internet
% Ownership 100%
Etihad Etisalat (Mobily),Saudi Arabia
Licence type Mobile & Internet
% Ownership 27%
Gabon Telecom, Gabon
Licence type Mobile, Fixed & Internet
% Ownership(2) 51%
Onatel, Burkina Faso
Licence type Mobile, Fixed & Internet
% Ownership(2) 51%
Atlantique Telecom, Moov – West Africa
Licence type Mobile
% Ownership(2) 100%
Sotelma, Mali
Licence type Mobile, Fixed & Internet
% Ownership(2) 51%
EMTS, Etisalat Nigeria
Licence type Mobile
% Ownership 40%
Maroc Telecom(4)
Other Africa
Middle East
Asia
3
Strong Financial Profile and Consistent Track Record of Shareholder Remuneration
9
Strong Cash
Flow
Generation,
Consistent
Reinvestment
and Robust
Balance Sheet
Operating Cash Flows (AED bn) Capex / Revenue (%) Net Debt/(Cash) Position (AED bn)
Consistent
History of
Attractive
Shareholder
Returns
Dividend Payout Ratio (%)
4
78.2%
64.3%
84.2%
2013 2014 2015
5.54 5.54
6.96
0.70 0.70 0.80
2013 2014 2015
Dividend (AED bn) DPS
6.0% 6.1%
5.1%
2013 2014 2015(1)
1. Annualized dividend yield stock price is based on actual payment date of 18 August 2015 and 26 April 2016
Dividend (AED bn) & DPS (AED Dividend Yield (%)
17.2
20.4
4.35.1
2014 2015 1Q'15 1Q'16
18%
20%
10%
13%
2014 2015 1Q'15 1Q'16
1.69
0.66
(1.29)
(2.63)
2014 2015 1Q'15 1Q'16
Highest Rated Telco outside Asia with Strong Balance Sheet and Lowest Leverage Among Peers
10
MEA Telco Ratings and Total Debt / EBITDA Etisalat’s Credit Rating
A+/Stable
AA-/Stable
Aa3/Stable
Net Debt (Net Cash) / EBITDA
Source: Company filings, Bloomberg(1) On March 6, 2015 Moody’s placed Etisalat Group under review
5
-0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
4
2
6
-2
8
12
14
16
yyy
Ooredoo, A-STC, A-
Etisalat, AA-xxx
Ratings
Debt/EBITDA
Bharti, BBB-MTN, BBB-
Batelco, BB
AA-
AA-
(1)
-0.51x
0.07X0.02X
-0.85X
2013 2014 2015 1Q'16
2. Financial Overview
Etisalat Group Financial Highlights – 1Q 2016
12(1) Financial figures are restated to exclude the impact of discontinued operations
Revenue Breakdown 1Q 2016 (AED m) EBITDA Breakdown 1Q 2016 (AED m)
Represents others
61%
24% 6%6%
3%
57%
24%9%
8%
2%
UAE +1%
MT Group +7%
Egypt +9%
Pakistan -6%
UAE -4%
MT Group +2%
Egypt +8%
Pakistan -2%
YoY Growth YoY Growth
+1% -2%
12.9bn
6.4bn
(LC +16%)
(LC -3%)
(LC +14)
(LC +1%)
(LC +10%) (LC +5)
Etisalat Group Financial Highlights – FY2015
13(1) Financial figures are restated to exclude the impact of discontinued operations
56%
24%9%
8%
3%
61%
24% 6%5%
4%
Revenue Breakdown FY 2015 (AED m) EBITDA Breakdown FY 2015 (AED m)
UAE +6%
MT Group +52%
Egypt -6%
Pakistan -10%
UAE +9%
MT Group +42%
Egypt -4%
Pakistan +2%
YoY Growth YoY Growth
+7% +14%
51.7bn
26.5bn
(LC +2%)
(LC -9%)
(LC +2%)
(LC +4%)
Represents others
Revenue growth is attributed to UAE, MT Group and Egypt operations
Positive revenue growth in the UAE impacted by lower handset sales
Higher contribution from international consolidated operations
― Growth in MT Group driven by int’l subsidiaries
― Revenue growth in Egypt despite currency devaluation
― Revenue growth in Pakistan continued negatively impacted by increased competition in international and mobile revenues
Group Revenue
14
Revenue (AED m) and YoY growth (%)
Key HighlightsGeographical Split of Revenue (1Q 2016)
Domestic vs. Int’l International
Sources of Revenue growth – Q1’16 vs Q1’15 (AED m)
38,853
48,50951,737
12,726 12,853
30%
1%
18%
26%
7%
FY'13 FY'14 FY'15 Q1'15 Q1'16
Revenue YoY growth %
UAE57%
Int'l43%
MT57%
Egypt21%
Pakistan19%
Others3%
12,726 12,853 69
198 95
67 169
Q1'15 UAE MT Group Egypt Pakistan Others Q1'16
UAE61%
Int'l37%
Others2%
Group EBITDA
15
EBITDA in the UAE negatively impacted by higher cost of sales and network costs.
Higher contribution of EBITDA of consolidated international operations due to:
― Positive contribution from Maroc Telecom Group due to int’l subsidiaries
― Positive contribution from Egypt due to higher revenue
― Pakistan contribution impacted by currency devaluation while grew in local currency
EBITDA (AED m) & EBITDA Margin
Key HighlightsGeographical Split of EBITDA (Q1 2016)
Domestic vs. Int’l International
18,901
23,212
26,526
6,530 6,424
51% 50%49% 48% 51%
FY'13 FY'14 FY'15 Q1'15 Q1'16
EBITDA EBITDA Margin
Sources of EBITDA growth – 1Q’16 vs 1Q’15 (AED m)
6,530 6,424
164
24 29
7
11
Q1'15 UAE MT Group Egypt Pakistan Others Q1'16
MT66%
Egypt17%
Pakistan15%
Others2%
UAE26%
Int'l70%
Others4%
Group CAPEX
16
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Lower capital spend in the UAE
Increased Capital expenditure in international operations
due to:
― Higher capex spend in MT Group due to License
acquisition in Ivory Coast and Togo
― Higher capex spending in Pakistan driven by
investment in the mobile network
Key HighlightsGeographical Split of CAPEX (Q1 2016)
Domestic vs. Int’l International
Others3%
(2)
6,334
8,914
10,309
1,266 1,639
10%13%
16%18%
20%
FY'13 FY'14 FY'15 1Q'15 1Q'16
CAPEX CAPEX/Revenue
Sources of Capex growth – Q1’16 vs Q1’15 (AED m)
MT68%
Egypt13%
Pakistan18%
Others1%
1,266
1,639
193
467
15
77 37
Q1'15 UAE MT Group Egypt Pakistan Others Q1'16
Group Balance Sheet, Cash Flows and Debt Profile
17
Net cash position (AED m) Mar’15 Mar’16
Operating 4,255 5,096
Investing (1,175) (1,737)
Financing (25) (243)
Net change in cash 3,054 3,116
Effect of FX rate changes 556 206
Reclassified as held for sales (6) (69)
Ending cash balance 22,148 24,676
Balance Sheet (AED m) Dec-15 Mar-16
Cash & Cash Equivalent (1) 21,422 24,676
Total Assets 128,265 132,139
Total Debt (1) 22,080 22,050
Net Cash / (Debt) (658) 2,626
Total Equity 59,375 57,573
Investment Grade Credit Ratings
Maintained healthy liquidity position
Net Cash to EBITDA level
Better operating cash flow due to better profitability and
working capital management
Maintained strong credit ratings with stable outlook from the
three credit ratings agencies
A+/Stable
AA-/Stable
Aa3/Stable (2)
Highlights
(1) Balances excludes discontinued operations
(2) On March 8th, 2016 Moody’s placed Etisalat Group under review
Debt Profile: Diversified debt portfolio
18
4,200
2,246
4,131
11,503
2016 2017 2-5 years > 5 years
Borrowings (1) by Currency
Debt (1) by Source Q1’16 (AED m)
Borrowings (1) by Operation Q1’16 (AED m)
Repayment (1) Schedule
(1) Debt balance excludes borrowing from discontinued operations
USD28%
Euro44%
MAD12%
Others16%
15,503
3,370 1,961
1,216
Group MT Group Egypt Pakistan
14,943
6,459
303 345
Bonds Bank Borrowings Vendor Financing Others
19
Country by Country Financial Review
Financial Performance
UAE: Moderate revenue growth with strong profitability
20
Key Highlights
UAE Market Facts
19M Total
Subscribers
200%Mobile
Penetration
AEDMillion
FY’15 YoY% 1Q’16 YoY%
Revenue 28,774 +6% 7,290 +1%
EBITDA 16,279 +9% 3,896 -4%
EBITDA % 57% +1pp 53% -3pp
Profit 7,325 0% 1,885 +4%
Capex 4,941 +96% 428 -31%
~ 86%FTTH
Coverage
~ 90%LTE
Coverage
> +80%Smartphone Penetration
Revenue growth driven by strong performance of fixed
and mobile broadband
Margin weakening on higher interconnection and roaming
costs, higher special project and G&A expenses
Profit improvement due to lower royalty charges
Capital spending focused on network modernisation and
maintenance
Etisalat UAE financial Performance:
21
EBITDA (AED bn) / EBITDA %Revenue (AED bn) / YoY Growth (%)
Free Cash Flow (1) (AED bn)Net Profit (AED bn) / Profit Margin (%)
(1) Free Cash Flow represents EBITDA less Capex
8%%
24.827.1
28.8
7.2 7.3
11%
1%
9% 9%
6%
FY'13 FY'14 FY'15 Q1'15 Q1'16
Revenue YoY growth %
6.1
7.3 7.3
1.8 1.9
25% 26%25% 27% 25%
FY'13 FY'14 FY'15 Q1'15 Q1'16
Net Profit Margin %
14.015.0
16.3
4.13.9
56% 53%57% 55% 57%
FY'13 FY'14 FY'15 Q1'15 Q1'16
EBITDA EBITDA %
12.0 12.411.3
3.4 3.5
47% 48%48% 46%39%
FY'13 FY'14 FY'15 Q1'15 Q1'16
FCF FCF%
UAE: Consistent high value subscriber growth
22
(1) Mobile ARPU (“Average Revenue Per User”) calculated as total mobile voice, data and roaming revenues divided by the average mobile subscribers.(2) ARPL (“Average Revenue Per Line”) calculated as fixed line revenues divided by the average fixed subscribers.(3) Fixed broadband subscriber numbers calculated as total of residential DSL (Al-Shamil), corporate DSL (Business One) and E-Life subscribers.
Mobile Subs (m) & ARPU(1) (AED)
Fixed Broadband(3) Subs (m)
Fixed Subs (m) & ARPL(2) (AED)
eLife Subs – Double & Triple-Play (m)
1.61 1.77 1.84
7.77 7.91 8.23
114 110110
Q1'15 Q4'15 Q1'16
Postpaid Prepaid Blended ARPU
0.96 0.87 0.84
132122
136
Q1'15 Q4'15 Q1'16
Fixed ARPL
0.80 0.87 0.89
383 407 389
Q1'15 Q4'15 Q1'16
E-Life (2P & 3P) ARPL
1.01 1.06 1.07
495 498 489
Q1'15 Q4'15 Q1'16
Fixed BB ARPL
UAE: Competitive dynamics
23
Mobile Market Share (%)
Fixed Value Share (%)
Fixed Market Share (%)
Mobile Value Share (%)
83.7% 16.3%44.6%
55.4%
81.7% 18.3%
64.7%
35.3%
EtisalatDu
Based on Company’s disclosures
Int’l Operations Financial Highlights 1Q 2016
24(1) Financial figures are restated to exclude the impact of discontinued operations
Revenue (AED m)/EBITDA (AED m) /EBITDA Margin (%)
Revenue & EBITDA (AED m) /EBITDA Margin (%) / YoY Growth %
YoY Growthin AEDMaroc Telecom Group
Revenue +7%3,119
EBITDA +2%1,571
EBITDA Margin -3pp50%
Etisalat Misr
Pakistan
Revenue -6%1,028
EBITDA -2%347
EBITDA Margin +1pp34%
1Q 2016
YoYGrowth in AED1Q 2016
Growth in MAD
-3%
+1%
+1pp
YoYgrowth in
PKR
Revenue +9%1,165
EBITDA +8%411
EBITDA Margin 0pp35%
YoYGrowth in AED1Q 2016
+16%
+14%
0pp
YoYgrowth in
EGP
+10%
+5%
-3pp
5,2875,489 5,480
2,319 2,2072,364
Q1'15 Q4'15 Q1'16
Revenue EBITDA
44%40%
43%
57%
21%
19%
Int’l Operations Financial Highlights FY 2015
25
(1) Financial figures are restated to exclude the impact of discontinued operations
Revenue (AED m)/EBITDA (AED m) /EBITDA Margin (%)
YoY Growthin AEDMaroc Telecom Group
Revenue +52%12,316
EBITDA +42%6,308
EBITDA Margin -4pp51%
Etisalat Misr
Pakistan
Revenue -10%4,236
EBITDA +2%1,292
EBITDA Margin +4pp30%
FY 2015
YoYGrowth in AEDFY 2015
Revenue & EBITDA (AED m) /EBITDA Margin (%) / YoY Growth %
13,182
21,107
22,344
4,035
8,306
9,571
FY'13 FY'14 FY'15
Revenue EBITDA
31%39% 43%
55%
20%
19%
Growth in MAD
-9%
+4%
+4pp
Growth in PKR
Revenue -6%4,544
EBITDA -4%1,692
EBITDA Margin +1pp+37%
YoYGrowth in AEDFY 2015
+2%
+2%
+1pp
Growth in EGP
+75%
+61%
-4pp
MoroccoBurkina
FasoGabon Mali Mauritania
Newly Acquired(2)
Population (m) 33.5 17.9 1.60 16.3 3.7 65.4
GDP per Capita ($)(4) 3,045 631 9,343 673 1,347 2,148
GDP Growth (%) 4.4 5.0 4.4 5.6 5.5 5.7
Penetration Rate (%)
M127/F 5 80 172 133 115 73
ARPU ($) 6.5 3.0 11.1 2.7 6.3 5.6
Number of Players 3 3 4 2 3Between 2 and
5
Country Position 1 1 3 2 1 2-4
Strong subscriber acquisition driven by Int’l operations
Revenue growth impacted by currency depreciation ― Y/Y growth in local currency attributed to
international operations and local domestic fixed segment
― Int’l contribute 41% of Group revenues
Maintained healthy EBITDA margin above 51% level
Increase in capital spending due to license acquisitions
license in Morocco, Niger and Mauritania, Ivory Coast and
Togo.
Maroc Telecom: Growth driven by int’l operationsMorocco, Benin, Burkina Faso, CAR, Gabon, Ivory Coast, Mali, Mauritania, Niger and Togo
26
Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Key Highlights
37.2 40.2
50.8 51.6 53.1
FY'13 FY'14 FY'15 Q1'15 Q1'16
Macro and Market Snapshot (2015) (3)(4)
12,477 12,728 12,316
2,921 3,119
57%54%
51% 53%50%
FY'13 FY'14 FY'15 Q1'15 Q1'16
Revenue EBITDA %
2,159 1,995
3,298
313
779
11%
25%17% 16%
29%
FY'13 FY'14 FY'15 1Q'15 1Q'16
CAPEX CAPEX/Revenue
(1) Revenue figures in AED for FY”13 and FY’14 are not comparable to FY’15 due to differences in accounting policies
(2) Newly Acquired Operations are in Benin, CAR, CDI, Gabon, Niger and Togo
(3) Source: World Bank and GSMA Intelligence
(4) Based on latest available statistics
14%
Egypt: Strong revenue growth and improved operating profit in local currency
27
Total Subscribers (1) (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Key Highlights
(1) Subscribers and market share data as per statistic published by the Ministry of Information and Technology
(2) Source: IMF, Business Monitor International
(3) Based on latest available statistics
Macro and Market Snapshot (2015) (1) (3)
Population (m) 86.7
GDP per Capita($) 3,304
GDP Growth (%) 2.2
Penetration Rate (%) 113
ARPU ($) 3.3
Number of Players (Mobile)
3
Country Position 3
4,742 4,844 4,544
1,070 1,165
36% 35%36% 36% 37%
FY'13 FY'14 FY'15 1Q'15 1Q'16
Revenue EBITDA %
1,229 1,229
880
168 153
16%13%
26% 26%19%
FY'13 FY'14 FY'15 1Q'15 1Q'16
CAPEX CAPEX/Revenue
10095 94 96 94
23% 24%23% 23% 24%
FY'13 FY'14 FY'15 Q1'15 Q1'16
Market Subs Market Share
Revenue growth Y/Y impacted by currency depreciation
Maintained growth in local currency mostly due to data
segment
Improvement in EBITDA in local currency despite higher
network and billing costs, interconnections and termination
costs.
Sustained EBITDA margin at 36% level
Capex spending focused on network expansion
28.2
26.3
24.0
25.8 24.9
FY'13 FY'14 FY'15 1Q'15 1Q'16
Pakistan: Subscriber growth amidst intense competition
28
Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Subscriber growth impacted by regulatory mandated biometric
verification measures
― Turnaround in net mobile subscriber growth in the last two
quarters
― Maintained growth in data revenue driven by growth in DSL EVO
Revenue growth impacted by subscriber loss and adverse competitive
environment in the mobile segment and lower int’l incoming traffic
EBITDA margin improved due to costs optimisation measures
Capital spending focused on mobile network enhancement
Key Highlights Macro and Market Snapshot (2015) (1) (2)
Population (m) 186.3
GDP per Capita ($) 1,243
GDP Growth (%) 4.1
Penetration Rate (%) Mobile 64 / Fixed 3
ARPU ($) 1.9
Number of Players (Mobile/ Fixed) 5
Country Position Fixed 1 / Mobile 4
(1) Source: IMF, Business Monitor International
(2) Based on latest available statistics
4,761 4,719
4,236
1,094 1,028
32% 34%35%
27% 30%
FY'13 FY'14 FY'15 1Q'15 1Q'16
Revenue EBITDA %
1,392
2,965
1,028
135 212 12%
21%
29%
63%
24%
FY'13 FY'14 FY'15 1Q'15 1Q'16
CAPEX CAPEX/Revenue
Nigeria: Growth impacted by challenging regulatory and macro economic environments
29
Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Maintained Y/Y subscriber growth
― Slow down is attributed to to regulatory mandated registration
process
Revenue growth Y/Y impacted by currency devaluation
― Strong revenue growth in local currency driven by higher
subscriber base new products and services
Higher EBITDA due to higher revenue trend, resulting in better margin
Lower capex spend due to the tower sales and leaseback transaction
Key Highlights Macro and Market Snapshot (2015) (1) (2)
Population (m) 174.0
GDP per Capita ($) 1,343
GDP Growth (%) 6.31
Penetration Rate (%) 81%
ARPU ($) 8.4
Number of Players 4
Country Position 3
17.0
21.1 22.2 22.2 21.8
FY'13 FY'14 FY'15 1Q'15 1Q'16
(1) Source: IMF, Business Monitor International
(2) Based on latest available statistics
3,341
4,343 4,230
1,040 1,083
16% 14%
1%
15% 18%
FY'13 FY'14 FY'15 1Q'15 1Q'16
Revenue EBITDA %
1,487 1,480
1,114
140 47
14% 4%
45%34%
26%
FY'13 FY'14 FY'15 1Q'15 1Q'16
CAPEX CAPEX/Revenue
2016 Actual Against Guidance: Confident in delivering the full year management guidance
30
Revenue Growth %
EBITDA Margin%
CAPEX / Revenue %
Stable
~ 48% - 50%
Financial KPI
Guidance 2016In AED
Low single digits
~ 18%
Guidance 2016Constant
Currencies (1)
+1%
13%
ActualQ1 2016In AED
+3%
Actual Q1 2016Constant
Currencies
50%
(1) Constant currency: Financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period. In order to compute our constant currency results, we multiple or divide, as appropriate, our current AED results by the current year monthly average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior year monthly average foreign exchange rates.
3. Appendix
Etisalat Group
32
Etisalat Group Consolidated
FY’14 FY’15FY’14-15Growth
1Q’15 1Q’161Q’15-16
Growth
Subs (m) (1) 167 167 0% 167 165 -1%
Revenue (AED m) 48,508 51,737 +7% 12,726 12,853 +1%
EBITDA (AED m) 23,212 26,526 +14% 6,530 6,424 -2%
EBITDA Margin 48% 51% +3pp 51% 50% -1pp
Net Profit 8,601 8,263 -4% 2,177 2,001 -8%
Net Profit Margin 18% 16% -2pp 17% 16% -2pp
EPS (AED) 0.99 0.95 -4% 0.99 0.95 -8%
(1) Subscriber numbers calculated as aggregate number of GSM, CDMA, fixed, fixed broadband and WLL lines generating revenue during the last 90 days.
Etisalat UAE FY’14 FY’15FY’14-15Growth
1Q’15 1Q’161Q’15-16
Growth
Subs(1) (m) 11.0 11.6 +6% 11.4 12.0 +6%
Revenue (AED m) 27,095 28,774 +6% 7,221 7,290 +1%
EBITDA (AED m) 14,957 16,279 +9% 4,060 3,896 -4%
EBITDA Margin 55% 57% +1pp 56% 53% -3pp
Net Profit 7,309 7,325 0% 1,807 1,885 +4%
Net Profit Margin 27% 25% -2pp 25% 26% +1pp
CAPEX 2,524 4,941 +96% 622 428 -31%
CAPEX/Revenue 9% 17% +8pp 9% 6% -3pp
Currency Trend:
33
USD / MAD USD / EGP
USD / PKR USD / NGN
8.6 8.4 8.49.8 9.6 9.8
8.5 8.2 9.19.9 9.1
9.9
FY'12 FY'13 FY'14 FY'15 Q1'15 Q1'16
Average EoP
6.1 6.9 7.1 7.7 7.4 8.1
6.26.9 7.2
7.87.1
7.8
FY'12 FY'13 FY'14 FY'15 Q1'15 Q1'16
Average EoP
93.3
101.5 101.1102.7
101.3
104.797.3
105.6
101.1
104.7
100.6
104.9
FY'12 FY'13 FY'14 FY'15 Q1'15 Q1'16
Average EoP
158.8 159.2 165.2197.7 193.8 199.0
156.2 160.3183.5
199.3182.5
199.1
FY'12 FY'13 FY'14 FY'15 Q1'15 Q1'16
Average EoP