summary 1. highlights operational results financial results prospects appendix

Transcription

1 Sonatel group

2 summary 1. highlights operational results financial results prospects appendix 2

3 1.highlights

4 key messages cancellation of the surtax on international incoming calls to Senegal in May improvement of operational and financial results of the group (turnover, Ebitda, cash) democratic transition in Senegal, environmental uncertainty dissipated commissioning of the new submarine cable "ACE" major political and institutional crisis in Mali with negative impacts on the economy and operators Sonatel stock split in a ratio of 10 shares for 1 on November 23 rd, 2012 strong growth in activities and results in Guinea and Guinea Bissau Alioune Ndiaye appointed managing director of Sonatel replacing Cheikh Tidiane Mbaye leaving for early retirement strengthen of our competitive positions through investment, innovation and animation record on mobile subscribers hiring 4

5 1.highlights 2012 Senegal maintained leadership in the mobile and financial performance improvement successful presidential elections and normalization of relations with the State and the regulator: cancellation of the surtax and the license granted to MTL infrastructure, suspension of the decree increasing the rate of Codete to 5% commissioning of the new submarine cable "ACE" pursuing leadership in the mobile subscribers hiring (62% market share in volume), preserving the value market share significant increase of the mobile and mobile internet subscriber basis launching of mobile TV on January 20 th 2012 and rise of usage of mobile internet QSE certification: Quality, Health / Safety and Environment appointment of the new managing director on October 1 st adoption of a new tax law negative impacts of the crisis on the economy and political activity - regaining market shares major political and institutional crisis leading to a economic recession in 2012 financial performance despite the political and institutional crisis and the competition allocation of a third global license decrease in termination tariffs for mobile calls by 34% (from 29.5 to 22 cfaf) increased competition around abundance, the main lever of the market animation operational and financial results maintained despite the crisis improving market share value of 4% Mali 5

6 1.highlights 2012 Guinea good dynamics of commercial conquest - improving financial and operational performance good operational and financial performance driven by the rise of usage, increasing network capacity and the improvement of quality of service stability of the Guinean franc against Euro and Cfa franc strong growth in financial results positive free cash flow for the first time validation of Orange Guinea interconnection catalog by regulator (Arpt) launching of Orange Money (3rd quarter 2012) and Orange s cool (1st quarter 2012) persistent political and institutional instability with a limited impact on the operational and financial performance confused political situation following the presidential election process unfinished political transition under international supervision improvement of our market position and level of profitability despite the economic gloom strengthening of the presence and commercial animation: carnival 2012, reposition of the prepaid bundle offer per second billing, redesign of Internet Everywhere bundle offer Bissau 6

7 1.innovation 2012: focus on mobile data mobile TV & vod sponsoring & sporting events internet & mobile data Bissau: special tariffs for young subscribers and internet promotion innovation Senegal : pass internet & domino Orange Money Guinea 7

8 1.positive effects of Sonatel stock split on share price and liquidity stock split 11/23/ EGM 10/31/ stock price (cfaf) traded volume (number of shares)

9 1.creation of wealth: motor of economic development a contribution to budget revenues increased: more than 330 billion XoF paid for taxes, fees, royalties, payroll taxes, duties and dividends in 2011 including more than 238 billion XoF in Senegal, more than 72 billion XoF in Mali, more than 19 billion XoF in Guinea and 3 billion XoF in Bissau contribution to private sector development in the region: more than 170 billion XoF in turnover generated in favor of local businesses, more than 106 billion XoF in Senegal, 32 billion XoF in Mali, 27 billion Xof in Guinea and 4 billion XoF in Bissau more than indirect jobs thanks to a wide commercial distribution network and dynamic partners, more than 3,000 direct jobs more than 136 billion XoF were generated in 2012 on export revenues paid by foreign telecommunications operators including 96 billion XoF by Senegal, 59 billion XoF by Mali and 11 billion XoF by Guinea and 3 billion XoF by Bissau strengthening of Corporate Social Responsibility (CSR) policy since 2005 through sponsorship, social and economic development, good governance and environmental conservation constant contribution to the Universal Service with mobile coverage of more than 99% of senegalese territory including villages of more than 500 inhabitants 9

10 2. operational results

11 2.strong positions on our markets strengthening of our competitive position through investment, innovation and commercial animation Senegal Mali Sonatel group GDP 3.7% inflation 2.3% penetration 90% position 1 er /3 market share 63% (+2pts) GDP -4.5% inflation 7.2% penetration 73% position 1 er /2 market share 64% (+4pts) France Telecom/Orange present in 18 countries in Africa Guinea GDP 4.8% inflation 14.7% penetration 42% position 2 e /6 market share 34% (+4pts) Bissau GDP -2.8% inflation 5% penetration 45% position 2 e /3 market share 39% (+2pts) Sonatel, leading firm in West Africa fixed line mobile internet leased line TV adsl Orange Money 11

12 2.subscriber base: strong growth still driven by the mobile subscribers 282, , , % -0.5% fixed line 10,905,525 14,153,204 17,911,057 30% 27% mobile internet 92, , ,351 15% 1.4% 11,280,956 14,543,200 18,301,170 29% 26% 12

13 2.mobile subscribers: record recruitment on mobile thanks to the dynamic of conquest in all countries mobile subscribers Senegal 5,089,540 6,083,302 7,118,160 20% 17% Mali 4,716,819 6,443,865 8,581,888 37% 33% Guinea 907,038 1,352,549 1,850,059 49% 37% Bissau 192, , ,950 42% 32% total ,53,204 17,911,057 30% 27% 13

14 2.arpu: strong growth of subscribers combined with abundance promoting the erosion of arpu average monthly arpu /10 12/11 fixed line 88,250 83,167 93, % 12.9% Senegal (cfaf) prepaid mobile 4,250 3,695 3, % -10% Mali (cfaf) prepaid mobile 3,583 2,751 2, % -23% Guinea (Gnf) prepaid mobile 37,493 38,675 43, % 29% Bissau (cfaf) prepaid mobile 3,417 3,421 3, % -10.7% 14

15 3. financial results

16 3.an improving financial performance maintaining profitable growth with a good cost control increase in net income due to the improvement of performance of Orange Guinea and Orange Bissau stability of operating costs (in billion XoF) turnover % 4.3% Ebitda % 3.7% Ebitda margin 54% 53% 52% operating income % 6.4% operating margin 38% 37% 38% net income % 11.0% net margin 31% 24% 26% group share net income % 12.6% capex % -1.6% capex rate 20% 19% 18% free cash flow % 6.8% 16

17 3.consolidated turnover: +4.3% turnover per activity turnover growth per activity % 6% 21% 63% 4% 1% -2.44% -1.5% 3.7% 5.16% 8.34% 9.0% Internet et data international balance domestic interconnection % 63% -2.86% -5.5% 4.72% leased line and others mobile 5% 8.1% 20% 5% 1% -0.4% 0.15% fixed line fixed line mobile leased line and others 2012/ /2010 domestic interconnection international balance Internet et data 17

18 3.steady investments: 18% of turnover in billion cfaf Senegal 63,913 58,979 48, % % network 57,329 47,490 35, % % others 6,584 11,490 12, % 11.06% Mali 41,668 44,483 44, % 0,00% network 38,597 41,751 38, % -7.40% others 3,071 2,732 5, % % Guinea 8,890 14,710 21, % 46.10% network 8,432 14,134 20, % 43.60% others , % % Bissau 2,752 1,866 3, % % network 2,558 1,654 3, % 83.80% others % % total 117, , % -1.6% 18

19 3.contributions: substantial gains from Orange Guinea and Orange Bissau most of the growth in turnover was driven by Guinea and Senegal groupe ( in bilions of cfaf) Senegal Mali Guinea Bissau turnover 662, , ,385 53,470 10,393 Ebitda 347, , ,693 24,168 4,591 operating income 250, ,975 80,383 13,645 1,915 net income 171,320 99,700 59,048 10,631 1,942 capex 118,124 48,169 44,487 21,484 3,984 growth of turnover +4% 2% 0% 48% 22% 19

20 3.contributions: a still dominant role of Senegal Guinea 8% Bissau 1% Guinea 7% Bissau 1% Mali 29% chiffre turnover chi d affaires Senegal 62% Bissau 3% Mali 31% Ebitda Senegal 61% Guinea 6% Bissau 1% Mali 32% Guinea 5% Bissau 1% operating résultat d'exploitation income Senegal 62% Guinea 18% Senegal 41% investissements capex Mali 35% net income résultat net Senegal 56% Mali 38% 20

21 3.good cash generation and low debt level of 4.5% debt & euity (in billions of cfaf) free cash flow % % 6.8% 4.5% equity debt free cash flow debt stable equity and cash flow ,9 0,8 0,7 cash flow a controlled and declining financial debt ,6 0,5 0,4 debt ,3 0,2 0,1 debt coverage ratio

22 3.revitalization of the share after the split stock split 11/23/ average monthly stock price peak of the month EGM 10/31/ coupon detachment dividend , ,500-11,

23 4.prospects

24 4.prospects. preservation of our market share is expected on all our markets despite increasing competition increased. growth will be supported by the development of network coverage, high market activity around the prepaid mobile broadband and value added services. mastered investments for network coverage and the launching of innovative products promote the continued growth of sales. better control of operating expenses will contribute to maintaining our current margin levels. a greater contribution expected from Guinea in the group's growth and cash flow generation. external growth in the sub-region will continue. 24

25 5.appendix 25

26 thank you 26