Etisalat Group
Investor Presentation
September 2015
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
Etisalat Group
5
$36 Billion Market Cap
The most valuable Company of
UAE
The most valuable Telecom
Company in the MENA Region
18 Countries
Diversified portfolio
170 million aggregate subscribers
across our footprint
Revenue
The largest revenue for telco
Group in ME and Africa Region
EBITDA Margin
among the highest in the
industry
Credit Ratings
highest rated telco outside Asia
Key Company Highlights
6
Strong Relationship with
the UAE Government
Leading Telecom
Operator With Largest
Market Cap among
Middle East & Africa
Telcos
Strong FCF Profile with
Consistent History of
Returning Capital to
Shareholders
Diversified Operator
with Exposure to
Attractive and High
Growth Markets Across
Africa and Asia
Highly Rated Telco
(Aa3/AA-/A+) with Low
Leverage
1
3
4
5
2
Top Telecom Companies in ME & Africa
7
Top 10 GCC Companies(1)
Leading Telecom Operator in the Middle East and Africa
Source: Bloomberg Data as at 1 November 2015
(1) Ranking by Market Cap
1
Top 10 UAE Companies(1)
$36bn
$33bn
$21bn
$16bn
$10bn
$9bn
$7bn
$6bn
$6bn
$5bn
$3bn
$2bn
Etisalat Group
STC
MTN Group
Vodacom
Maroc Telecom
Turk Cell
Ooredoo
Du
Mobily
Zain Group
Vodafone Qatar
Asia Cell
$66bn
$36bn
$35bn
$33bn
$22bn
$20bn
$19bn
$18bn
$15bn
$12bn
SABIC
Etisalat Group
Qatar National Bank
STC
Al Rajhi Bank
Industries Qatar
Saudi Electricity
Kingdom Holding
FGB Bank
Emaar Proporties
$36bn
$17bn
$15bn
$13bn
$13bn
$12bn
$11bn
$10bn
$7bn
$5bn
Etisalat Group
DP World
FGB Bank
Emirates NBD
NBAD
Emaar Proporties
Emaar Malls
ADCB
DIB
Aldar Properties
8
H1 2015 Revenue (USD bn)(1)
Source: Bloomberg
1
H1 2015 EBITDA (USD bn)(1)
Top 10 Telecom Companies in Middle East and Africa
Leading Telecom Operator in the Middle East and Africa
0.6
0.8
0.9
1.0
1.0
1.2
1.7
2.6
2.7
3.7
Du
Zain Group
Maroc Tel
Turk Telecom
Turk Cell
Vodacom
Ooredoo
MTN Group
STC
Etisalat Group
1.7
1.9
1.9
2.4
2.7
3.5
4.4
5.8
6.6
7.1
Maroc Tel
Zain Group
Mobily
Turk Cell
Turk Telecom
Vodacom
Ooredoo
MTN Group
STC
Etisalat Group
Diversified Telecom Operator
9
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
2
16%
18%
14%
2013 2014 9M'15
9.6
(3.7)(5.6)
2013 2014 9M'15
Strong Financial Profile and Consistent Track Record of Shareholder Remuneration
10
Strong Cash
Flow
Generation,
Consistent
Reinvestment
and Robust
Balance Sheet
Operating Cash Flows (AED bn) Capex / Revenue (%) Net Cash/(Debt) Position (AED bn)
Consistent
History of
Attractive
Shareholder
Returns
Dividend Payout Ratio (%)
3
13.0
17.2
11.6
2013 2014 9M'15
78.2%
62.2%
93.7%
2013 2014 H1'15
5.54 5.54
3.48
0.70 0.700.40
2013 2014 H1'15
Dividend (AED bn) DPS
6.0% 6.1% 6.0%
2013 2014 H1'15(1)
1. Annualized dividend yield stock price is based on actual payment date of 18 August 2015
Dividend (AED bn) & DPS (AED Dividend Yield (%)
Highest Rated Telco outside Asia with Strong Balance Sheet and Lowest Leverage Among Peers
11
MEA Telco Ratings and Total Debt / EBITDA Etisalat’s Credit Rating
A+/Stable
AA-/Stable
Aa3/Stable
Net Cash (Net Debt) / EBITDA
Source: Company filings, Bloomberg
4
0.51x
-.16x-0.19x
2013 2014 9M'15
-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-
Strong Relationship with the UAE Government
12
5
Access to-Government support, as highlighted by the recent Maroc Telecom acquisition
Established by the UAE Federal Government Decree No. 78 in 1976
Majority owned (60% by the UAE Federal Government
7 out of 11 Members of the Board of Directors, including the Chairman, are appointed by the UAE Government
Important contributor tothe UAE Federal budget
Strong link to the UAE Government recognized by Ratings Agencies
Corporate Update
13
Most Recent
Development
Etisalat inclusion in the MSCI EM index effective from 1st December 2015
Allowing Foreign and Institutional investors to own Etisalat’s share
Completed sale of Atlantique Telecom
Completed sale of 85% shareholding in Zantel
Completed towers sale and leaseback in Nigeria
Infrastructure sharing in the UAE
Acquisition of 4G license and spectrum in Morocco and launched 4G+
services
Renewal of 2G license in Mauritania
completed the tap issuance of US$400 million notes under its US$7bn
GMTN Program;
Credit Ratings Agencies Standards & Poor’s, Moodys and Fitch affirmed
Etisalat high credit rating at AA-/Aa3/A+ with stable outlook
2. Financial Overview
Etisalat Group
15
9M 2015 Highlights
9M 2015AED Million
Revenue
% in Total
EBITDA
EBITDA Margin
Capex
Capex/Revenue
UAEYoY%
21,868 +9%
56% -1pp
12,393 +8%
57% 0pp
2,256 +40%
10% +2pp
Int’lYoY%
16,913 +13%
43% +1pp
7,387 +8%
44% 0pp
3,098 -31%
10% -12pp
Consolidated
YoY%
39,066 +11%
100%
20,038 +8%
51% +1pp
5,378 -13%
14% -4pp
Robust revenue growth led by strong performance of UAE operations and consolidation of Maroc Telecom
― Strong revenue growth in UAE
― Int’l performance benefited from consolidation of Marc Telecom
Steady improvement in EBITDA level in absolute terms and in EBITDA margin
Capex decline attributed to higher capex spend on 3G/2G license acquisition/renewal in Pakistan in 2014
Strong revenue growth with Y/Y revenue growth of
17% mainly attributed to strong performance of UAE
and consolidation of Maroc Telecom Group
Revenue growth in the UAE is mainly due to strong
post-paid & eLife customer acquisition coupled with
strong data revenue performance and handset sales
Revenue from international operations increased Y/Y by
13% and contributed 43% of consolidated revenues an
improvement of 1 points compared to 9M’14:
― Positive contribution from consolidation of
Maroc Telecom Group of 9 months in 9M’15
compared to 5 months in 9M’14
― Negative contribution from Egypt and Pakistan
due to currency depreciation, increased
competition and imposed regulatory measures
in the mobile segment
Int'l43%
UAE56%
Others1%
Group Revenue
16
Revenue (AED m) and YoY growth (%) 9M 2015 Highlights
Geographical Split of Revenue (9M’15)
Egypt20%
Pakistan19%
MT Group (1)
55%
Others7%
Domestic vs. Int’l International
(1) Maroc Group countries are Morocco, Benin, Burkina Faso, Central African Republic, Cote d’Ivoire, Gabon, Mali, Mauritania, Niger and Togo
32,946
38,853
48,767
35,30439,066
22%
11%
2%
18%
26%
FY'12 FY'13 FY'14 9M'14 9M'15
Revenue YoY growth %
Group EBITDA
17
Consolidated EBITDA increased by 13% with margin
improvement to 51%
EBITDA of UAE operations grew by 8% due to higher
revenue and better cost measures
EBITDA of consolidated international operations increased by
20% resulting in 37% contribution to Group EBITDA, an
improvement of 2 points compared to 9M’14
― Consolidation of Maroc Telecom improved EBITDA of
Int’l operations;
― Egypt impacted by higher network cost and currency
depreciation; and
― Pakistan impacted by decline in international incoming
traffic and price pressure in the mobile segment
EBITDA Margin improved to 51% mainly due to higher
EBITDA in the UAE and consolidation of Maroc Telecom
Group
EBITDA (AED m) & EBITDA Margin 9M 2015 Highlights
Geographical Split of EBITDA (9M’15)
Egypt18%
Others4%
Pakistan14%
MT Group (1)
65%
Inter-National
37%
UAE62%
Others1%
Domestic vs. Int’l International
16,85518,901
23,365
17,75920,038
50% 51%51% 49% 48%
FY'12 FY'13 FY'14 9M'14 9M'15
EBITDA EBITDA Margin
(1) Maroc Group countries are Morocco, Benin, Burkina Faso, Central African Republic, Cote d’Ivoire, Gabon, Mali, Mauritania, Niger and Togo
Group CAPEX
18
CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Capex decreased Y/Y by 13% mainly attributed to
higher capex spend on 3G license acquisition and 2G
license renewal in Pakistan in H1’14
― On a like for like capex increased by 7%;
― Capex/Revenue ratio flat at 13%
Capital spending in the UAE increased by 40% focusing
on network modernization and enhancing eLife product
portfolio and ICT capabilities
Capital expenditure in international operations declined
by 31% and contributed 58% of consolidated capex in
9M’15:
― Higher capex spend in Maroc Telecom Group
due to 4G license acquisition in Morocco and 2G
license renewal in Mauritania;
― Lower capex spend in Pakistan due to 3G license
acquisition and 2G license renewal in H1’14
9M 2015 Highlights
Geographical Split of CAPEX (9M’15)
MT Group 58%
Pakistan22%
Egypt17%
Int’l58%
UAE42%
Domestic vs. Int’l International
Others3%
(2)
4,164
6,334
8,914
6,1655,378
17%14%13%
16%18%
FY'12 FY'13 FY'14 9M'14 9M'15
CAPEX CAPEX/Revenue
13% 13%14%
(1) Maroc Group countries are Morocco, Benin, Burkina Faso, Central African Republic, Cote d’Ivoire, Gabon, Mali, Mauritania, Niger and Togo
Group Balance Sheet, Cash Flows and Debt Profile
19
Balance Sheet (AED m) Dec-14 Sep-15
Cash & Cash Equivalent 18,543 18,350
Total Assets 128,835 125,530
Total Debt 22,229 23,325
Net Cash / (Debt) (3,686) (4,975)
Total Equity 60,402 56,623
Borrowings by Operation 9M’15 (AED m)
Borrowings by Operation 9M’15 (AED m)Net cash position (AED m) 9M ‘14 9M ‘15
Operating 10,783 11,566
Investing (21,454) (5,212)
Financing 10,453 (6,742)
Net change in cash (218) (388)
Effect of FX rate changes 623 282
Reclassified as held for sales (10) (86)
Ending cash balance 15,854 18,445
15,433
4,460
2,135 1,015
283
Group MT Egypt Pakistan Sri Lanka
14,873
7,752
313 387
Bonds Bank Borrowings Vendor Financing Others
20
Country by Country Financial Review
UAE: Continued strong operational & financial performance
21
9M 2015 Highlights
Solid operational performance
― 11.6 million subscribers (+7%)
Robust revenue growth led by strong performance of
fixed and mobile broadband
Stable EBITDA margin
UAE Market Facts
19M Total
Subscribers
200%Mobile
Penetration
Financial Performance
AEDMillion
FY’14 YoY% 9M’15 YoY%
Revenue 27,095 +9% 21,868 +9%
EBITDA 14,957 +6% 12,393 +8%
EBITDA % 55% -2pp 57% 0pp
Profit 7,309 +20% 5,496 +8%
Capex 2,524 +25% 2,256 +40%
~ 90%FTTH
Coverage
~ 90%LTE
Coverage
> +80%Smartphone Penetration
Etisalat UAE financial Performance: Steady growth
22
EBITDA (AED bn) / EBITDA %Revenue (AED bn) / YoY Growth (%)
Free Cash Flow (1) (AED bn)Net Profit (AED bn) / YoY Growth (%)
(1) Free Cash Flow represents EBITDA less Capex
10.1 10.7
11.4 12.4
60% 58% 57% 57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
9M'12 9M'13 9M'14 9M'15
EBITDA EBITDA %
16.9 18.5
20.1 21.9
-4%
9% 9% 9%
-10%
-5%
0%
5%
10%
15%
20%
0.0
5.0
10.0
15.0
20.0
25.0
9M'12 9M'13 9M'14 9M'15
Revenue YoY %
4.5 4.6 5.1
5.5
26% 25% 25% 25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
9M'12 9M'13 9M'14 9M'15
Profit Profit %
8.8
9.2
9.8
10.1
9M'12 9M'13 9M'14 9M'15
FCF
UAE market performance: Growing market & value share
23
Total UAE Market Revenue (AEDm)Total UAE Market Subscriber (000)
Value ShareMarket Share
15,812
18,024 18,775
19,343
13%14%
4%3%
0%
5%
10%
15%
20%
25%
30%
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
21,000
FY'12 FY'13 FY'14 9M'15
Total Market YoY %
32,588 35,561
39,331
31,057
3%
9%11%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
FY'12 FY'13 FY'14 9M'15
Revenue YoY %
56.8% 57.7% 58.5% 59.9%
43.2% 42.3% 41.5% 40.1%
FY'12 FY'13 FY'14 9M'15
Etisalat DU
69.8% 69.6% 68.9% 70.4%
30.2% 30.4% 31.1% 29.6%
FY'12 FY'13 FY'14 9M'15
Etisalat Du
Competitive Landscape: The leading telecom operator
24
Fixed Market ShareMobile Market Share
Fixed Value ShareMobile Value Share
52.3%53.9%
55.2%57.0%
47.7%46.1%
44.8%
43.0%
FY'12 FY'13 FY'14 9M'15
Etisalat DU
83.0% 83.8% 81.7% 80.7%
17.0% 16.2% 18.3% 19.3%
FY'12 FY'13 FY'14 9M'15
Etisalat Du
60.1%63.6% 63.1% 65.5%
39.9%36.4% 36.9% 34.5%
FY'12 FY'13 FY'14 9M'15
Etisalat Du
82.9%87.2% 86.5% 86.1%
17.1%12.8% 13.5% 13.9%
FY'12 FY'13 FY'14 9M'15
Etisalat DU
+ 4.7pp
-3.5pp
-0.5pp
+1.3pp -0.8
pp-2.1pp
-3.2pp
+ 3.2pp
UAE: Subscriber growth in high quality segments
25
(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)
1.42 1.68 1.71
7.45 7.69 7.94
119116 117
Q3'14 Q2'15 Q3'15
Postpaid Prepaid Blended ARPU
1.01 0.93 0.90
127 133
125
Q3'14 Q2'15 Q3'15
Fixed ARPL
0.75 0.82 0.84
386 404 398
Q3'14 Q2'15 Q3'15
E-Life (2P & 3P) ARPL
0.96 1.03 1.04
493 499 498
Q3'14 Q2'15 Q3'15
Fixed BB ARPL
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 72 120 136 101 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
Started to consolidate the results of Atlantique Telecom Group
from 26 January, 2015
Strong subscriber acquisition driven by Int’l operations
Revenue growth impacted by currency depreciation ― Y/Y growth in local currency of 17% mostly due to the
consolidation of Atlantique Telecom
Maintained healthy EBITDA margin at 52% level
Increase in capital spending due to 4G license acquisition in
Morocco and 2G License renewal in Mauritania
Maroc Telecom: Increased footprint into 5 new markets & sign of recovery in MoroccoMorocco, 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 (%)
9M 2015 Highlights
32.9
37.2 40.2 39.4
50.7
FY'12 FY'13 FY'14 9M'14 9M'15
Macro and Market Snapshot (9M’15) (3)(4)
12,686 12,477 12,728
9,610 9,247
56% 52%56% 57% 54%
FY'12 FY'13 FY'14 9M'14 9M'15
Revenue EBITDA %
2,339 2,159
1,995
871
1,800
17% 19%18% 17% 16%
FY'12 FY'13 FY'14 9M'14 9M'15
CAPEX CAPEX/Revenue
(1) Revenue figures in AED for FY”12, FY’13, FY’14, & 9M1’14 are not comparable to 9M’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
15%
Subscriber growth impacted by regulatory imposed control over indirect
distribution channel
Revenue growth Y/Y impacted by currency depreciation and slow-down
in subscriber acquisition
― Maintained growth in local currency
EBITDA impacted by higher network costs and utility/electricity expenses
Capex/Revenue Ratio declined to 17% with capital spending mainly
focussed on network expansion and capacity
Egypt: Performance impacted by regulatory measures and currency depreciation
27
Total Subscribers (1) (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
9M 2015 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 (9M 2015) (1) (3)
Population (m) 86.7
GDP per Capita($) 3,304
GDP Growth (%) 2.2
Penetration Rate (%) 113
ARPU ($) 3.3
Number of Players (Mobile)
3
Country Position 3
97 100 95 95 95
FY'12 FY'13 FY'14 9M'14 9M'15
5,075 4,742 4,844
3,551 3,298
39% 39%39% 36% 37%
FY'12 FY'13 FY'14 9M'14 9M'15
Revenue EBITDA %
1,174 1,229 1,229
692
540
19% 16%23% 26% 26%
FY'12 FY'13 FY'14 9M'14 9M'15
CAPEX CAPEX/Revenue
27.6 28.2
26.3 26.7
22.8
FY'12 FY'13 FY'14 9M'14 9M'15
Pakistan: Intense regulatory and competitive environment in the mobile segment
28
Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Subscriber growth impacted by regulatory mandated biometric
verification measures
― DSL and EVO subscribers grew Y/Y by 8% each
Revenue growth impacted by adverse competitive environment in the
mobile segment and lower international incoming traffic
EBITDA margin declined to 31% due to lower revenue coupled with
higher interconnection & termination costs
Decline in capital spending due to the high capex spend on 3G
license acquisition and 2G license renewal during H1’14
9M 2015 Highlights Macro and Market Snapshot (9M 2015) (1) (2)
Population (m) 186.3
GDP per Capita ($) 1,243
GDP Growth (%) 4.1
Penetration Rate (%) Mobile 64 / Fixed 3
ARPU ($) 1.9
Number of Players (Mobile/ Fixed) 5
Country Position Fixed 1 / Mobile 4
(1) Source: IMF, Business Monitor International
(2) Based on latest available statistics
4,653 4,761 4,719
3,618
3,245
34% 31%28%
35%
27%
FY'12 FY'13 FY'14 9M'14 9M'15
Revenue EBITDA %
1,094 1,392
2,965
2,527
666
70%
21%24%
29%
63%
FY'12 FY'13 FY'14 9M'14 9M'15
CAPEX CAPEX/Revenue
33%32%
30%
Nigeria: Solid execution despite macro economic pressures
29
Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%)
Maintained strong subscriber growth leveraging better quality
network
Revenue growth Y/Y impacted by currency devaluation
― Strong revenue growth in local currency driven by improved
commercial activities & new products
EBITDA margin stable despite tower rental impact
Capital/ revenue ratio reduced to 23% level with capital spending
focused on supporting growth in subscription and traffic
9M 2015 Highlights Macro and Market Snapshot (9M 2015) (1) (2)
Population (m) 174.0
GDP per Capita ($) 1,343
GDP Growth (%) 6.31
Penetration Rate (%) 81%
ARPU ($) 8.4
Number of Players 4
Country Position 3
14.9
17.0
21.1 19.9
23.5
FY'12 FY'13 FY'14 9M'14 9M'15
(1) Source: IMF, Business Monitor International
(2) Based on latest available statistics
2,957 3,341
4,343
3,230 3,123
15% 14%6%
1%
15%
FY'12 FY'13 FY'14 9M'14 9M'15
Revenue EBITDA %
1,533 1,487 1,480
1,018
719
32%23%
52%45%
34%
FY'12 FY'13 FY'14 9M'14 9M'15
CAPEX CAPEX/Revenue
9M 2015 Actual Against Guidance: Improving full year guidance with better margin and cashflow generation
30
Revenue Growth %
EBITDA Margin%
CAPEX / Revenue Ratio
8% - 10%
47% - 48%
17% - 18%
11%
51%
14%
Financial Objective Guidance 2015 Actual 9M 2015
~ 9%
~ 50%
~ 15%
Revised Guidance 2015
3. Appendix
Etisalat Group
32
Etisalat Group Consolidated
FY’12 FY’13 FY’14FY’13–’14
YoYGrowth
9M’14 9M’15H1’14–’15
YoYGrowth
Subs (m) (1) 139 148 169 +14% 180 170 -6%
Revenue (AED m) 32,946 38,853 48,767 +26% 35,304 39,066 +11%
EBITDA (AED m) 16,855 18,901 23,365 +24% 17,759 20,038 +13%
EBITDA Margin 51% 49% 48% -1pp 50% 51% +1pp
Net Profit 6,742 7,078 8,892 +26% 6,240 5,659 -9%
Net Profit Margin 20% 18% 18% 0pp 18% 14% -3pp
EPS (AED) 0.85 0.90 1.12 +26% 0.72 0.65 -9%
(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’12 FY’13 FY’14FY’13-14Growth
9M’14 9M’15YoY
Growth
Subs(1) (m) 9.0 10.4 11.0 +6% 10.8 11.6 +7%
Revenue (AED m) 22,747 24,763 27,095 +9% 20,117 21,868 +9%
EBITDA (AED m) 13,456 14,047 14,957 +6% 11,425 12,393 +8%
EBITDA Margin 59% 57% 55% -2pp 57% 57% 0pp
Net Profit 5,907 6,094 7,309 +20% 5,070 5,496 +8%
Net Profit Margin 26% 25% 27% +2pp 25% 25% 0pp
CAPEX 1,795 2,014 2,524 +25% 1,616 2,256 +40%
CAPEX/Revenue 8% 8% 9% +1pp 8% 10% +2pp
Currency Trend:
33
7.86.1 6.9 7.1 7.8
6.06.2
6.9 7.27.8
FY'11 FY'12 FY'13 FY'14 9M'15
Average EoP
8.1 8.6 8.4 8.49.8
8.6 8.5 8.2 9.19.7
FY'11 FY'12 FY'13 FY'14 9M'15
Average EoP
USD / MAD USD / EGP
USD / PKR USD / NGN
86.3 93.3 101.5 101.1 102.8
89.497.3
105.6 101.1 104.5
FY'11 FY'12 FY'13 FY'14 9M'15
Average EoP
155.9 158.8 159.2 165.2198.8
162.3 156.2 160.3183.5
199.3
FY'11 FY'12 FY'13 FY'14 9M'15
Average EoP
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