Orascom Telecom Holding Citi 13 th Annual European & Emerging - PowerPoint PPT Presentation

Orascom Telecom Holding Citi 13 th Annual European & Emerging Telecoms Conference March 2013

Disclaimer This presentation contains forward-looking statements about Orascom Telecom Holding (“OTH”) . Such statements are not historical facts and include expressions about confidence and strategies of management and expectations of management about new and existing programs, technology and market conditions. Although OTH believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties. These statements may not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. The forward-looking statements in this presentation are only valid until the date of this document and OTH 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 is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Page 2

Content  4Q12 Highlights 4  Shareholder Structure 5  Global Presence 6  Market Position 7  OTH Operations 8  Appendix 22 Page 3

4Q12 Highlights Total Revenues 2 Group EBITDA 2 & EBITDA Margin Subscribers 1 908 46.8% 85 38.7% 425 346 78 896 +33% +11% Organic Organic 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 Djezzy: Djezzy grew its subscriber base by 8% The fluctuation of local currencies against Djezzy: increased by 8% in local currency YoY, as a result of promotions and channel the US dollar continued to adversely affect terms YoY, driven by top line growth incentives aimed at animating the subscriber our IFRS consolidated results Mobilink: increased by 12% in local currency base Djezzy: increased by 9% YoY in local currency terms YoY, exceeding revenue growth for Mobilink: increased by 6% YoY, as a result of terms, mainly attributed to a larger the quarter, mostly on the back of strong churn management coupled with reactivations subscriber base, as well as promotional and measures of the operational excellence promotions airtime incentives initiative banglalink: increased by 9% YoY, despite the Mobilink: increased by 9% in local currency implementation of a newly imposed post sales banglalink: increased doubled in local terms YoY, as a result of a focus on data, activation process and the disconnection of currency terms YoY, due to savings on VAS, voice alongside churn management high value suspected VoIP users in compliance commercial opex (SIM tax subsidy) resulting with new self regulations (both set by BTRC) banglalink: increased by 13% in local from lower gross additions for new sales, Telecel Globe: increased 42% compared to currency terms YoY, driven by a higher level following the implementation of a newly the previous year, mainly driven by strong of VAS and data adoption, and targeted imposed post sales activation process additions in Zimbabwe, where the number of start-up, as well as reactivation promotions, (registration of SIM cards prior to activation) subscribers increased by 70% YoY adversely impacted by VoIP disconnections by the regulator 1. Total subscribers in Millions 2. Group indicators in USD Millions Page 4

Shareholder Structure VIMPELCOM FREE ALTIMO TELENOR FLOAT 52.7% (Economic) 35.7% (E) 11.6% (E) 47.9% (Voting) 43.0% (V) 9.2% (V) OTH FREE FLOAT 100.0% 100.0% 100.0% 51.9% OJSC 48.1% WIND ITALY OTH KYIVSTAR VIMPELCOM Page 5

Global Presence OTH serves a population of 451 million with an average penetration of 56% CANADA PAKISTAN Population: 34 million Population: 190 million GDP Growth: 1.9% ALGERIA GDP Growth: 3.7% GDP/Capita PPP ($): 41,500 Population: 37 million GDP/Capita PPP ($): 2,900 Pop. Under 15 years: 16% GDP Growth: 2.6% Pop. Under 15 years: 35% Mobile Penetration: 72% GDP/Capita PPP ($): 7,500 Mobile Penetration: 64% Pop. Under 15 years: 28% Mobile Penetration: 87% BANGLADESH Population: 161 million GDP Growth: 6.1% GDP/Capita PPP ($): 2,000 Pop. Under 15 years: 34% Operations owned by Orascom Mobile Penetration: 60% Telecom (OTH has 65% indirect economic ownership in Globalive Investment Holding Canada , but a minority voting stake) CENTRAL AFRICA REPUBLIC BURUNDI Population: 5 million Population: 10 million GDP Growth: 4.1% GDP Growth: 4.2% GDP/Capita PPP ($): 800 GDP/Capita PPP ($): 600 Pop. Under 15 years: 41% Pop. Under 15 years: 46% Mobile Penetration: 20% Mobile Penetration: 22% ZIMBABWE Population: 13 million GDP Growth: 5.0% GDP/Capita PPP ($): 500 Pop. Under 15 years: 41% Mobile Penetration: 69% Note: Figures from CIA Factbook. Mobile Penetration is based on December 31, 2012 subscriber figures and market share. Page 6

Market Position Algeria: Despite limitations, Djezzy remains a profitable market leader with tremendous data potential Pakistan: Mobilink leads the maturing market, and with a large customer base has great potential for revenue enhancement through data, MFS and VAS uptake Bangladesh: In a large market with low penetration levels, banglalink is one of the fastest growing operators with a strong focus on increasing value share Telecel Globe: Leading positions in markets with low penetration levels, healthy APPM, and high growth potential. Internet is a mobile story in Africa Canada: Wind Mobile continues its "Value Plus" strategy execution, adding primarily postpaid subscribers while carefully managing prepaid economics for both voice and mobile broadband customers Page 7

Algeria Page 8

Djezzy Overview  GDP growth rate for 2012 stood at 2.5%  Young population with 24% of the population under 15 years of age Macro  Government, trade and agriculture sectors account for over 60 % of Algeria’s GDP Environment  Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings Population: 37 million GDP/capita: USD 7,500  OTA continues to face stringent conditions with the regulator (ARPT) regarding critical promotion and products  In September 2011, 3G licensing process launched, but was put on hold until situation surrounding Djezzy is Regulatory Market Size 1 : 32 million subs resolved Environment Penetration 1 : 87%  The Algerian government approved Q-tel acquisition deal over Wattaniya Market Players (subscribers): • Djezzy (17.8 million) Djezzy is the market leader in a three-player market: • Mobilis (7.4 million)  Djezzy: launched its operations in 2002, has a population coverage of 96% • Wattaniya (7.1 million) Competitive  Mobilis: was the first entrant launched in 1999, rebranded their mobile business to Mobilis. ATM is also the sole Landscape fixed line provider and owner of internet and international gateways  Wattaniya: launched in 2004. As challengers, Nedjma is a large contributor to market growth Market Shares 2  Balanced value pricing strategy leading to stable ARPU levels despite high market growth  Consolidate Djezzy brand leadership and strengthen emotional bonding with customers 22% OTA  Increase quality and control over the distribution channel Strategic 55% Mobilis Direction  Define leaner site configurations through tighter design guidelines to manage Capex requirements 23% Wattaniya  Modernize network once ban on foreign currency transfer is lifted 1. Penetration figures are provided based on OTA closing base and our Data Warehouse (DWH) figures for competition 2. DWH Market Share Page 9

Djezzy KPIs Mobile Subscribers (Millions) Revenues (DZD Billions) EBITDA (DZD Billions) & EBITDA Margin 143.3 134.7 135.6 135.6 129.3 17.85 16.60 85.2 80.4 78.8 73.2 15.09 68.7 14.62 14.11 58.5% 59.4% 54.0% 53.2% 59.3% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Capex 1 (DZD Billions) & Capex/Revenue Free Cash Flow 2 (DZD Billions) 19.0 80.7 77.5 14.0% 67.9 61.8 10.8 54.3 8.1% 6.9 5.4% 4.5 2.9 3.1% 2.2% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Note: foreign exchange rate DZD 77.8433/ USD 1 1. Capex figures excluding GSM licenses and may differ from previously released figures 2. Free Cash Flow is EBITDA less Capex Page 10

Pakistan Page 11