The Egyptian Company for Mobile Services (Mobinil)

Transcription

The Egyptian Company for Mobile Services (Mobinil)
One on One - EFG Hermes conference
London and New York
November 2010
Disclaimer
This presentation contains “forward-looking statements” about Mobinil. Such statements are not actual facts and
include expressions about management’s opinions on the results of its strategies and management’s expectations
about new and existing programs, opportunities, technology and market conditions.
Although Mobinil believes its expectations are based on reasonable assumptions, these forward looking statements
are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that
anticipated events will occur or that expected objectives will be achieved.
Important factors that could cause actual results or performance to differ materially from the results anticipated in The
forward-looking statements include, among other things, the success of the announced plans and the,
Mobinil’s other strategic, financial and operating initiatives, changes in economic, business and competitive market,
risks and uncertainties attendant upon International operations, technological trends, exchange rate fluctuations and
market regulatory factors.
The forward-looking statements in this presentation speak only as of the date hereof and Mobinil does not undertake
to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
This presentation does not constitute an offer or invitation to purchase any shares or other securities in the company
and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or
commitment whatsoever.
Any decision to purchase shares or other securities in the Company is the sole responsibility of the investors who shall
be responsible for his own due diligence.”
©The Egyptian Company for Mobile Services (Mobinil) │ One on One - EFG Hermes conference │ November 2010 │ Page 2
Agenda
1. Economy and Market Overview
2. Mobinil Overview
3. Competitive Environment
4. Regulatory Environment
5. Operational Highlights
6. LINKdotNET Acquisition
7. Q & A
Economy and Market Overview
One of the largest markets in the world
Population (in Egypt)
(2010 est.)
Largest in Middle East (above Iran &
Turkey)
2nd largest in Africa, after Nigeria
16th largest in the world
79M
Population distribution
Greater Cairo, the capital, and its
outlying suburbs are home to nearly
20% of total population
43% urban;
57% rural
Population < 25 years of age
33% under 15 years old
Median age only 24
58%
Adult literacy rate (%age 15+)
Basic level reading and writing
Area (km2)
2X size of France
4X size of UK
Inhabited Area
Only 35,000 square kilometers is
cultivated and permanently settled
71.4%
997,739
97% of inhabitants live on
3.5% of land area
Sources: Central Agency for Public Mobilization and Statistics, IMF
Avg Ex rate: 1USD = 5.5EGP
Country Overview
Large market, strong economy (1/2)
2008
2009
2010
2011
2012
2013
2014
2015
Population
76
78
79
80
82
84
86
87
GDP % (constant prices)
7.2
4.7
5.0
5.5
5.7
5.9
6.2
6.5
Inflation % (avg consumer prices)
11.7
16.2
12.0
9.5
8.5
7.5
7.0
6.5
Inflation % (end of period consumer
prices)
20.2
10.0
10.0
9.0
8.0
7.0
7.0
6.0
Gross domestic product per capita,
constant prices EGP
6,993
7,115
7,325
7,578
7,856
8,156
8,492
8,867
Gross domestic product per capita (PPP)
per capita USD
5,897
6,123
6,347
6,662
7,029
7,436
7,890
8,396
*Egyptian Fiscal year: July 1 to June 30
**Sources: IMF World Economic Outlook, Apr-2010
•
•
•
•
•
Economy is more diversified than neighbors-strong financial sector, tourism, agriculture and
industry.
Per capita GDP is below the global average but ahead of India & is rising.
Driven mainly by strong domestic demand, the Egyptian economy is growing & has
rebounded from the global financial crisis.
4.7% in the year ending Jun-2009.
5.8% in Q1-10, the fastest rate seen in almost two years, according to Economic
Development Minister and ICT grew 11.6%. (Bloomberg, May 10, 2010)
Country Overview
Large market, strong economy (2/2)
•
•
•
•
•
•
•
•
•
•
•
•
•
Prime Minister predicts growth of a least 6 percent in new fiscal year through June, helped
by tourism and foreign investment (Business Week, September 23rd 2010)
Substantial Shadow (grey) economy estimated at between 40-69% of GDP
Strong political institutions and regulatory frameworks
Government has been implementing a business and structural reform program since 2004
Government is running a high budget deficit –expected to be 7.9% in the fiscal year that
ends June 2011, down from the 8.2% of GDP in 2009/10 (July-June)
Cutting state subsidies, which could help balance the budget, remains a highly sensitive
political issue
Headline inflation remains high – could dampen consumer activity
Inflation peaked at 28% in 2008 due to global financial crisis and volatility in commodity
prices, but has dropped -hovering around 10-12% since that time
Egypt remains exposed due to high cost of food imports –world’s largest importer of Wheat
Official unemployment figures remain high – averaging 9.6% during 2009
Official poverty levels remain high: 22% of Egyptians live below official poverty line
Significant income divisions could contribute to rising social unrest
Regional instability could negatively impact local economy and investment (Palestine, Iran &
Iraq)
*Egyptian Fiscal year: July 1 to June 30
Mobile Market Maturing
Spectacular growth rates are behind us
100
73%
71%
70%
55%
45%
41%
50
38%
40%
30%
Growth %
Subscribers (M)
75
33%
25%
20%
25
14%
9%
7%
6%
5%
3%
2
3
4
6
8
13
18
31
43
61
69
75
81
86
90
93
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010E
2011E
2012E
2013E
2014E
2015E
0
-5%
Source: Mobinil Management estimates
Future Competitive Landscape
• Regulator maintains strong role in controlling market development –
through issuing of new licenses control of spectrum allocation, operator
dispute resolution, product approvals and dial range allocation
• Per minute price less of differentiator than currently:
– Bundled offers
– Buckets
– Flat rate pricing
• New telco entrants encroaching on traditional MNO space: including VOIP
providers, OEMs, new licensees
• Competition arena expands to include all Telco players: PSTN, mobile,
internet, OEMs, content providers (incl. TV & satellite)
• Increasing consolidation & cooperation as well as more aggressive
competition over subscribers
Mobinil Overview
In Our Vision Lies Our Mission
Our Mission
Our Vision
To be part of people’s daily
lives by providing reliable and
simple services that help
people interact and
communicate better.
To maintain our position as the
leading mobile service
provider in Egypt, providing
the best quality of service for
our customers, the best
working environment for our
employees, top value for our
shareholders and proudly
contributing to the
development of our
community.
Pillars of Mobinil’s Strategy
Invest on
gathering & structuring
the information
Acquire maximum
Market Share
profitably
Sustain future growth by
expanding in new
territories and new
industries
Apply a segmented
approach in everything we
do to meet dynamic market
needs – Customer Centric
Maintain competitive
advantage of being the
operator of choice for all
Egyptians – Customer
intimacy
Enhance
Quality and Standards
Improve efficiency to
become more agile
Belong proudly to Mobinil
Subscriber Base
management
Strategic Challenges
Maintaining Market
Leadership in Maturing
Mobile Market
Successfully handling LINK
integration to exploit
Broadband & Data
Opportunities
Responding Intelligently to
Intensifying Competition
Effectively Managing
Regulatory Relationships
Securing Healthy Revenue
growth and Sustaining
Profitability
The Strategy Forward
Focus to consolidate and capitalize on the position being the preferred operator,
and enhance our network and technology
High end and Low end
Customer Intimacy
• Deeper understanding of
customer needs
• Maintain the emotional bond
and relationship with customers
• Service excellence
Investment
Choice
Investment
Choice
Investment
Choice
Driver of quantitative growth
Operational Excellence
• Aligning costs to value
• Continuously improve quality,
efficiency and reliability of
operational processes
• Service adaptability
Driver of qualitative growth
Technology
• Smart investment to compete
effectively
Competitive Environment
Key Existing Market Offers
January to March 2010
•
On Feb 26th, Mobinil launched an acquisition free minutes promo on the already booming El-Masry tariff; which would
further push gross adds in the coming months. Etisalat launched two new regional tariffs on Feb 26th and it was the first
time Alexandria was added. Mobinil and Vodafone followed with their own regional tariffs on March 24th and March 23rd
respectively.
January
Unlimited Mobile Internet
February
ALO Bundle International Calls El Masry Acquisition
EGP 1.99/minute
Promo
March
Baladna
Golden Star
Dial
Fawry
Payment
Mobinil
Vodafone
Hakawy
Roaming
EGP 1
SMS
Promo
300 Free Minutes
Promo
Hakawy
Regional Tariffs
Vodafone
Ahlan Mohafzat and Ahlan
Alexandria
Etisalat
Mobile TV
Key Existing Market Offers
April to June 2010
•
June was the highlight in Q2, and set up the stage for summer’s fierce competition. Mobinil had successful launches with
it’s Ma3alem Recharge Promo on June 1st, which gave customers double their credit when they recharge. VFE and ETS
followed with their own recharge promos on the 14th and 11th respectively.
April
May
Daily Prepaid BB
Service
Mobinil
EGP 1 Roaming
Receiving Rate
Star Handset Double your
Discount points with Star
Promo
June
Recharge promo
+Masry Re-pricing
200 min
promo
Win Back
Drink Pepsi and
Talk w/ VFE
Mi-Fi 3G
Router
Vodafone
SMS Promo
150 mins
Promo
Hakawy
Friends
50% Recharge
promo
Recharge
Bonus Promo
152 Free
Minutes
Ahlan Kol
El Nas Plus
El Super
Program
EGP
0.01/Minute
O/B Roaming
Recharge Promo
Unlimited Prepaid
USB Modem
Etisalat
MBB, MI and Smartphones
•
Mobinil continued its “Eish Alnet” campaign in 2010 and became the first to offer time based offers for its
customers. Moreover, on June 27th, Mobinil launched a joint broadband offer with LINKdotNET,
Customers can double their ADSL speed during summer time and get immediate connection through
Mobinil USB modem. On Jan 28th, Mobinil launched an Unlimited Mobile Internet bucket in order to
increase MI and Smartphone penetration. Moreover, Mobinil continued to offer Blackberry Tariff
Promotions and competitive prices on Blackberry Handsets.
50% Free Credit
upon recharge
Direct
Marketing
Campaign
Daily MBB Offer
Prepaid MBB OfferTwo Months for
Free
Prepaid
Internet
Promo
Summer
Promo with
LINKdotNET
Mobile
Broadband
i phone
Prepaid Blackberry
Promo
Up to 75% discount
on Blackberry
Service
Unlimited Mobile
Internet Bucket
Mobile Internet
&
Smart Phones
Discounted Blackberry
Handsets
Regulatory Environment
Regulatory Environment
 Mobinil insists that termination rates between the 3 mobile operators should be symmetric as
it has always been.
Termination Rates
Customer Registration
 Mobinil is currently in dispute with NTRA and Telecom Egypt in respect of mobile fixed
interconnection rates and insist on decoupling the link between interconnect rates and on-net
tariffs imposed by NTRA.
 New complex procedure has been introduced starting Q2 2010 where state security
validation has to occur for every new customer in addition to validation of old prepaid
customers data.
 Other possible restriction where shared by the regulator but not put into force regarding
unregistered handsets and customers with more than 10 lines.
International Gateway
Dials shortage
 There is actually in Egypt 2 international gateways: one operated by Telecom Egypt and the
second by Etisalat (limited to its own traffic). Both Mobinil and Vodafone Egypt route
international traffic via Telecom Egypt.
 Current outgoing and incoming international calls from Mobinil network uses TE’s gateway,
Mobinil gets discount on outgoing traffic only according to a matrix agreed upon between two
operators in the currently applied Interconnection Agreement.
 NTRA is obliged to provide operators dials when needed given the range availability.
 Starting early this year NTRA was in short of dial ranges till the application of the new
nationwide 11 digit numbering.
 Although 015 dial was available in compliance with the new 11 digit requirements but dials
were not available affecting our Q2 results.
Operational Highlights
Network Rollout
• Mobinil covers the major touristic
destinations.
2G Network Map
• Mobinil 3G coverage is extended to
almost all major cities.
• Mobinil is covering 99.66% of the
Egyptian population as of July 2010.
• Mobinil provides exclusive coverage
to major oil fields and remote farms.
• Mobinil has added more than 1,950
HSDPA 3G sites since 3G Launch in
Sep 08.
• Over 9,500 2G cells with EDGE
feature enabled.
Cell Site Installation – H1 2010
• 276 2G sites and 317 3G sites
• Added 22 BSCs to network representing a +5% increase to Mobinil network in one
year
• Added more than 5.5 MBHCA capacity for switches representing a + 9% increase
YoY
• Installed 4K TRX to cater for traffic and subscribers increase representing a + 5%
increase YoY
• Launching the new generation HLR (SDM) with capacity of 18M subs
5000
Key facts
4500
•
4000
3500
Mobinil has 4,625 2G and 1,896 3G
cell sites in H1 2010.
3000
•
2500
Covering 2,600 cities, towns and
villages and more than 71 highways.
2000
1500
•
1000
Equivalent to approximately 99.66%
of Egypt’s population, and 24.87%
500
geographic coverage.
0
1999
2000
2001
2002
2003
2004 2005
2G 3G
2006
2007
2008
2009
2010
(H1)
Cell Site Installation
Subscriber Base Growth
Postpaid
30,000
25,000
Prepaid
Dials shortage
period
Closing Base
20M subscriber
milestone
10M subscriber
milestone
20,000
15,000
10,000
26,148
25,391
756
25,354
24,668
686
22,853
22,187
667
20,115
19,477
639
17,518
16,933
586
15,118
14,563
555
11,901
11,295
606
5,000
0
H1 2007
H2 2007
1st growth phase
H1 2008
H2 2008
H1 2009
H2 2009
2nd growth phase
* Reclassification of 180K from Postpaid to Prepaid
H1 2010
Key Operational Performance Indicators
Global ARPU (EGP)
H1 2010 Market Share
60
55
55
Mobinil
Vodafone
39.61%
37.95%
48
50
44
45
44
38
40
Etisalat
35
22.44%
30
36
31
25
20
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
Global AUPU
Global Revenue (MEGP)
160
6,000
151
151
5,000
145
4,000
141
139
138
3,000
134
130
2,000
127
3,869
4,379
4,707
5,308
5,215
5,592
5,076
1,000
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
115
0
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
Prepaid Subscriber Base
•
The Egyptian mobile market is predominantly a prepaid market – with 97% of the
subscriber base being prepaid customers.
•
Average revenues per user (ARPU) is taking a declining trend as new low value
clients are added in addition to the dual SIM penetration.
Revenue / Average Revenue Per User
4,500
4,000
45
40
40
37
3,500
36
36
3,000
35
33
31
2,500
30
2,000
26
1,500
25
1,000
2,364
2,908
3,374
4,003
4,066
4,285
3,880
20
500
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
0
15
Prepaid Revenue
Prepaid ARPU
Revenues without connection fees, roaming revenue and equipment sales
Post-Paid Subscriber Base
Revenue / Average Revenue Per User
1,200
310
295
283
290
1,000
272
270
260
800
250
227
600
230
216
197
400
210
190
914
950
854
944
841
200
1,023
•
Post paid subscribers represent a minority, accounting for some 756k of Mobinil’s
total subscriber base.
Post paid ARPU has shown a recent decline as a result of price reductions in
Mobinil’s offering – this market remains somewhat price inelastic and hence price
declines were not matched with increased usage (tariff reductions were viewed to
be necessary to reduce the gap between prepaid and postpaid tariffs).
1,101
•
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
0
170
150
Postpaid Revenue
Postpaid ARPU
Revenues without connection fees, roaming revenue and equipment sales
Summary Financials – P&L
(EGP in Millions)
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
3,869
4,379
4,707
5,308
5,215
5,592
5,076
566
720
748
911
963
944
968
(2,039)
(2,509)
(2,587)
(2,682)
(2,683)
(3,002)
(2,956)
1,264
1,150
1,372
1,714
1,569
1,645
1,152
(91)
(1)
(292)
(326)
(364)
(278)
(199)
Net profit before tax
1,173
1,148
1,079
1,389
1,205
1,368
953
Income tax
(260)
(236)
(202)
(297)
(246)
(290)
(215)
Net Income for the year after tax
913
912
877
1,092
960
1,078
737
Minority interest
0.10
1.51
(0.73)
(0.45)
0.00
(0.43)
0.07
Earnings per share
8.50
8.43
8.12
10.04
9.40
10.87
7.42
Total operating revenues
Depreciation & Amortization
Other operating expenses
Operating Income
Other Income/expenses
Revenue (EGPM) / Revenue Growth
6,000
EBITDA (EGPM) / EBITDA Growth
40%
33%
3,000
50%
40%
35%
5,000
30%
27%
22%
4,000
40%
2,500
19%
16%
2,000
20%
15%
11%
H2 2009
H1 2010
2,120
H1 2009
-20%
2,589
H2 2008
-10%
500
2,532
-10%
-16%
2,626
-5%
1,000
2,120
0%
0
H1 2008
-1%
1,869
-3%
5,076
5,592
5,215
5,308
4,707
4,379
3,869
1,000
H2 2007
10%
1,500
0%
5%
H1 2007
7%
10%
5%
2,000
20%
1,830
3,000
30%
25%
25%
21%
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
0
-30%
-40%
Summary Financials – Balance Sheet
(EGP in Millions)
H1 2007
YTD 2007
H1 2008
YTD 2008
H1 2009
YTD 2009
H1 2010
Current assets
1,508
1,347
1,851
1,588
1,536
1,869
1,866
Long term assets
7,390
8,706
11,187
12,070
12,094
12,770
12,607
Total assets
8,898
10,053
13,039
13,658
13,630
14,640
14,473
Current liabilities
4,810
4,484
4,960
5,429
5,080
6,000
5,017
Long term liabilities
1,894
3,814
5,870
5,987
5,731
4,961
5,929
Total liabilities
6,703
8,298
10,830
11,416
10,812
10,961
10,946
Total shareholders equity
(inc minority interest)
2,195
1,755
2,209
2,242
2,818
3,679
3,527
Cash
459
415
590
650
314
814
610
Accounts receivable
292
264
248
253
252
303
291
Accounts payable
1,177
1,271
1,931
2,087
2,423
2,521
1,848
Borrowing (ST+LT)
2,479
3,760
5,332
5,175
5,362
4,421
5,579
Net Debt Development (EGPm) / Net Debt / EBITDA
Net Debt
6,000
Net Debt/EBITDA
300%
2.45
5,000
250%
2.01
1.98
1.87
4,000
1.79
200%
1.61
3,000
1.36
150%
4,900
5,094
4,166
3,802
50%
5,204
1,000
3,715
100%
2,494
2,000
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
0
0%
Summary Financials – Cash Flow
(EGP in Millions)
Net Income
Depreciation & Amortization
Other reconciliation adjustments
(net)
Cash flow from operating activities
Capital expenditure
Other investments (net)
Cash flow from investing activities
Dividends paid
Proceeds of borrowing
Repayments of borrowings
Other Financing (net)
Cash flow from financing activities
Net change in cash
Cash balance year end
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
913
566
912
720
877
748
1,092
911
960
963
1,078
944
737
968
(502)
977
(1,224)
(160)
(1,384)
(438)
700
0
0
262
(144)
(16)
702
2,333
(1,550)
(318)
(1,868)
(1,333)
1,977
(1,040)
(8)
(404)
61
61
(611)
1,014
(1,109)
(910)
(2,019)
(479)
1,820
(254)
0
1,088
83
129
538
2,541
(1,513)
0
(1,513)
(718)
0
(164)
(0)
(882)
147
147
(214)
1,709
(1,029)
(160)
(1,192)
(709)
750
(570)
0
(529)
(13)
268
312
2,334
(1,175)
0
(1,172)
(223)
0
(948)
0
(1,170)
(9)
(14)
(461)
1,244
(731)
(750)
(1,481)
(889)
2,250
(1,064)
0
297
60
311
Interest (EGPm) / (FFO/Interest Cover)
Interest Expense
450
FFO/Interest
FFO (EGPm) / (FFO / Net Debt)
120
FFO
2,500
FFO/Net Debt
98.1
400
65%
100
59%
2,000
350
60%
80
55%
300
250
60
200
40
49%
1,500
13.8
5.7
100
6.7
6.1
45%
41%
38%
1,000
20
4.9
50%
45%
44%
40%
35%
31%
5.7
500
30%
329
301
-20
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
1,706
394
2,021
301
1,923
286
2,003
17
1,624
107
0
1,633
0
50
1,479
150
70%
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
0
H1 2010
25%
20%
Funds From Operations (FFO) calculated by adding depreciation and amortization expenses to earnings.
Efficiency Focus
Capex / Minute
Capex Expenditure / Subscriber Base
2,000
1,800
3,216
4,000
0.20
3,500
0.18
1,600
1,400
0.18
0.16
2,634
2,597
0.14
3,000
2,738
2,501
0.14
2,401
2,500
1,200
1,000
0.11
0.12
2,000
0.10
1,500
0.08
0.10
0.08
800
600
0.04
1,000
400
500
813
H1 2008
Capex
1,622
H2 2007
994
1,310
H1 2007
1,861
1,717
0.04
1,547
200
0.05
0.06
793
0
0
H2 2008
H1 2009
H2 2009
Subscribers Additions
0.02
0.00
H1 2010
H1 2007
H2 2007
EBITDA Margin
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
Net Income Margin
52.0%
25.0%
50.0%
20.0%
48.0%
46.0%
15.0%
44.0%
10.0%
42.0%
40.0%
H1 2010
14.5%
41.8%
H2 2009
19.3%
46.3%
H1 2009
18.4%
48.6%
H2 2008
20.6%
49.5%
H1 2008
18.6%
45.0%
H2 2007
20.9%
42.7%
H1 2007
36.0%
23.6%
47.3%
5.0%
38.0%
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
0.0%
Funding and Liquidity Policy
•
Mobinil adopts a conservative funding policy which aims to minimise currency risk
(borrowings in Egyptian Pounds where possible) and match the life of assets as possible.
•
Mobinil maintains no exposure to banking institutions in that cash is immediately offset
against existing bank overdrafts / revolving facilities.
•
Mobinil’s operations generate gross monthly cash flows of between EGP700-800m.
•
Mobinil seeks to have funding in place at least one month prior to any known or expected
expenditure.
Cash collection
Cash concentration
Cash disbursements
 Collections against post-paid invoices, Prepaid cards and sale of new lines are
made at Banks, shops, home collection, E-payment and ATM providing a wide
variety of collection sources.
 Only certified checks are accepted.
 Cash deposited in interest bearing bank account on daily basis and
Reconciliations made to assure the proper recording.
 Cheques deposited at a bank that accelerates clearing process and invests
 Available cash in secured assets with the minimum risk.
 60-90 days from invoices presentation via checks or wire transfers.
Funding Profile
•
•
Mobinil’s four long term bank facilities:
Facility
Size
Signed
Maturity
Terms
Facility 1
EGP1.8bn
2005
2013
3 year grace period, 11 semi annual payments of EGP163.5m,
final payment of EGP165m
Facility 2
EGP2.3bn
2007
2014
EGP460m due after year 5, EGP690m due after year 6 and
EGP1150m due after year 7
Facility 3
EGP2.2bn
2008
2015
EGP80m due August 2010 followed by 9 semi annual instalments
of EGP 235.5m
Facility 4
EGP 610mn
2009
2014
2 years Grace period,6 semi annual payments of EGP 101.7m
Mobinil’s Local Bond:
Bond
Size
Issued
Maturity
Bond “A”
EGP1.5bn
2010
2015
Terms
5 years Bullet repayment at Maturity, fixed rate.
Debt maturing profile – Long term debt
1800
EGP 1500m
bond
102
1600
165
1400
327
1200
471
EGP 1800m
Facility 1
203
203
1000
1500
471
800
327
471
600
1150
102
400
200
EGP 610m
Facility 4
EGP 2200m
Facility 3
690
327
471
460
236
0
80
2010
2011
2012
2013
2014
2015
EGP 2300m
Facility 2
Proudly Announcing
The Acquisition of LINKdotNET by Mobinil
Internet & Broadband are Booming
• Although mobile revenues represent bulk of Egyptian telecom revenues –
they will continue to be pressured by falling prices.
• The contribution of broadband business to overall telecom revenue has
been low so far.
• But declining PC prices & spread of affordable Smart phones will drive the
uptake of broadband services.
• The Egyptian Minister of Communication and IT recently announced a
plan to increase broadband penetration fourfold within the next four years
to 4M households, with total investment expected to reach US$1bn.
• Future growth will come from Broadband.
Egypt has more Internet users than fixed
line subs!
– Egyptians love the internet.
– Adoption has been helped by “Free
Internet initiative”: dial up internet at cost of
local call
– Increasing availability of Internet services
in work areas, libraries and internet cafes
– Falling PC costs (strong refurbished
market & Govt initiatives)
– Introducing Arabic domain names – may
also help boost penetration (May 2010)
– Facebook is now one of the 10 most-visited
websites in the Arab world: in Egypt it ranks 2nd
after Google Egypt
Internet users (M)
Penetration %
60
60%
50
60%
52.7
40
40%
30
27%
20
10
0
20%
21.4
7%
5.0
2005
0%
2010E
– 4M Egyptian Facebook subscribers: largest
grouping in the region – most accessing in
English (September 2010)
Sources: Egyptian Ministry of Communications and Information Technology (MCIT), Mobinil Estimates
The estimated number of Internet users out of total population.
This includes those using the Internet from any device (including mobile phones) as per ITU definition
2015E
Egypt is the 2nd largest Internet market in
Africa & still growing (2009 data)
GHANA
1.3
ZIMBABWE
1.4
TUNISIA
MUsers
KENYA
SUDAN
ALGERIA
SOUTH
AFRICA
MOROCCO
EGYPT
3.5
4.0
4.2
4.4
4.7
10.3
16.6
NIGERIA
Source: ITU
44.0
Broadband (DSL): Spectacular growth
rates and still a lot that can be done
•
DSL is still a relatively small – but rapidly
growing market.
•
Introduced commercially in 2000 – spectacular
growth rates
6
6.1%
5.3
– 2005-2009 CAGR nearly 80%
•
•
•
Adoption has been helped by government 4
sponsored
efforts
to
reduce
monthly
subscription fees
Arab Advisors 2009 survey found that 24% of
Egyptian households share DSL connection
with their neighbors although this is illegal –
demonstrates extent of demand
DSL subscribers
(M)
Google.com.eg
Facebook
YouTube
Google
Yahoo
4%
Penetration %
2
1.7%
Top 5 Internet Sites in Egypt
1.
2.
3.
4.
5.
6%
2%
1.4
0.1%
0
0%
2005
2010E
Sources: Egyptian Ministry of Communications and Information Technology (MCIT), Mobinil estimates
http://www.alexa.com/topsites/countries;0/EG
2015E
Although Egypt has largest number of Fixed DSL
subs, still a lot of room to expand as seen by
looking at per 100 population (2009 data)
KENYA
ZIMBABWE
GHANA
18.0
SUDAN
27.4
NIGERIA
kUsers
8.3
TUNISIA
MOROCCO
SOUTH
AFRICA
ALGERIA
EGYPT
44.6
82.0
372.8
475.8
481.0
818.0
1,077.5
Source: ITU
The Transaction
• Mobinil
signed
a
Share
Purchase
Agreement
with
InTouch
Communications, a wholly owned subsidiary of Orascom Telecom Holding
for the acquisition of 100% of LINKdotNET and Link Egypt (LINK) for an
enterprise value of 736m EGP (USD 130 million).
• The sale excludes the non-ISP part of Link business and affects only
Egyptian operations.
• The transaction closing is expected to occur in August 2010.
The Why?
• Reinforce our competitiveness
• Manage growth beyond voice
• Enrich the value proposition to our customer:
– State-of-the-art converged services:
– Mobile voice, mobile data & fixed internet…
• Deepen & enhance synergies between two leading companies
LINK Today
• The 2nd largest ISP (30% ADSL & 41% Dialup market share)
• A reliable and reputable company
• An experienced team of 1,200 employees.
• Providing full range of ISP products & services:
– A well developed ADSL & Dialup infrastructure
– Corporate VPN & data solutions
– Global connectivity
– The largest WiFi access network
• A large base of valuable corporate and consumer subscribers
Leading From The Top
Our driving force behind the scenes
Michel Monzani
Alex Shalaby
Chairman, Egyptian
Company
for Mobile Services (ECMS)
Ahmed El Bardai
Aldo Mareuse
Henri de Joux
CEO REEFY Company;
Representing public
shareholders on ECMS BoD
Group CFO, Orascom Telecom
Holding
Representing Orascom Telecom
Holding on ECMS BoD
Deputy General Secretary of
France Telecom Group
Representing Mobinil
Telecommunications on ECMS
BoD
Vice Chairman, The Egyptian Company for Mobile Services (Mobinil)
Senior Vice-President - Africa, Middle East and Asia Division France Telecom Group- Representing Mobinil Telecommunications
on ECMS BoD
Claude Benmussa
Jean-Michel Thibaud
Group Treasurer, France Telecom
Senior Advisor
Group - Representing Mobinil
PricewaterhouseCooper(PwC);
Telecommunications on ECMS BoD
Telecommunications on ECMS BoD
Marc Rennard
Executive Vice President
International - in charge of
Africa, Middle East & Asia France Telecom Group –
Telecommunications on
ECMS BoD
Nadia Makram Ebeid
Naguib Sawiris
Olaf Swantee
Executive Director, Center for
Environment & Development for
the Arab Region & Europe;
representing public shareholders
on ECMS BoD
Chairman, Orascom
Telecom Holding
Telecommunications in the
ECMS BoD
Senior Executive VP, Personal
Communication Services and
UK/EME Operations
Telecommunications on ECMS
BoD
Onsi Sawiris
Chairman, Orascom Group of
Companies; Representing as
Honorary Chairman on ECMS
BoD
Hassan Kabbani
CEO, Egyptian Company
for Mobile Services (ECMS) –
Mobinil Telecommunications SAE
Sheikh Fahd El Shobokshi
Chairman, Nile City Investment
Representing public shareholders on
ECMS BoD
Our competent and strong executive team
has positioned Mobinil market leader
Hassan Kabbani
CEO
Audette Hanna
VP, Human Resources
Yasser Asaad Radwan
VP, Commercial
Khalid Ellaicy
VP, Finance
Rana Abbadi
VP, General services
and Corporate Support
Magdy Gabra
VP, Customer Service
Mohamed Nabih
VP, Corporate
Strategy and Business
Development
Yasser Shaker
VP, Technology
Q&A
©The Egyptian Company for Mobile Services (Mobinil) │ Corporate Presentation │ January 1, 2010 │ Level of Confidentiality │ Page 46
Thank You

The Egyptian Company for Mobile Services (Mobinil)

Transcription

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