Escolar Documentos
Profissional Documentos
Cultura Documentos
summary
1. general overview
2. economic environment and market overview 3. operational and financial figures
4. prospects 5. appendix
1general overview
1993
(Telecom Plus) Sonatel Multimedia 100%
1999
Sonatel Mobiles 100%
2004
Sonatel Business Solutions 100%
February 2003
Orange Mali 70%
4
May 2007
Orange Bissau 90%
November 2007
Orange Guinea 90%
1.key considerations
an integrated, innovative operator, leading player in west African subregion
operating in 4 countries with a population of 36 million inhabitants running fixed, mobile, Internet, TV and mobile payment activities serving 11.2 million subscribers at the end of December 2010 strong g mobile subscriber g growth of 27.4% in 2010 confirmed leadership in all its historical markets one of the highest profitability: Ebitda margin of 54% and net margin of 31% 42% owned by France Telecom (one of the largest worldwide operators) and backed up by the Senegalese government listed on the Brvm in Cte dIvoire since 1998 and first value at Brvm stock exchange 70% pay-out ratio and a dividend yield of 10% for 2010 a low debt level 1st investor and biggest tax payer in Senegal and more than Fcfa.500 billion of Capex (over the past 5 years) in our markets (Senegal, Mali, Bissau and Guinea)
growth prospects thanks to new operations in Guinea and Guinea Bissau and other regional players that could be added to Sonatels footprint
access to Facebook and Gmail via mobile phone july august september
2010
Adsl - prepaid
Senegal: 3G in experimentation since 2008, full license since march 2011 and since july 2010 in Mali
1.commercial dynamism
religious events
Internet day
pack multimedia
new offers
tombola
2.highlights
increased competition around abundance greater dynamism of the market with a penetration rate of 69% and a stronger g g growth 5 million Orange subscribers in spite of a market share decrease to 61% unfavourable tax and regulatory measures institution in june then suspension in november 2010 of the surtax on the entering international communications and the contract with Global Voice attribution of a license of infrastructure cables management in august 2010 increase in the Rutel tax from 2% to 5% in september 2010 celebrating 25 years of Sonatel in november 2010
Senegal
Mali
maintaining leadership despite new competition maintaining 2 digit growth on turnover improving the debt collection with competitors decline in domestic interconnection rates by 39% improvement of debt collection with the competitor
10
2.highlights
Guinea
normalization of the political climate return to the constitutional order with the election of a new President of the Republic macroeconomic environment remains difficult first recorded profits improved market share (+4 points) 900 000 subscribers despite increasing competitive pressure attribution of a 6th license
Bissau
consolidation of commercial dynamics driven in 2009 generally stable political environment macroeconomic environment remains difficult improved operational performance
11
2.improved penetration rates and maintaining strong positions in all markets despite increased competitive pressure
Senegal
GDP 4% inflation 0.9% penetration 69% position 1st/3 market share 60%
Mali
GDP 5.1 % inflation 2.1% penetration 52% position 1st/2 market share 69%
Bissau
GDP 3.5% inflation 1.5% penetration 41% position 2nd/3 market share 31%
GDP 3% inflation 15.4% Guinea penetration 36% position 2nd/6 market share 28%
activities
12
2.regulation
west african regulatory framework harmonization done in 5 countries: Burkina Faso, Sierra Leone, Gambie, Cap Vert, Ghana and in progress in the other Ecowas members states new taxes on international incoming traffic in Senegal suspended in november 2010 roadmap of telecom sector policy under study g workshop p numeric dividend: national committee began new communication law adopted in Senegal in february 2011: - setting up of an independent authority of regulation, - separation of regulation and policy functions, - setting up of 2 decisional parties (collegiate management and general manager), - universal access contribution allowed for communication, communication energy and Tv, Tv - new regulatory issues: local loop unbundling, numbers portability, - license for infrastructure.
13
contributes significantly to job creation: +100 000 jobs in the subregion (card vendors, call boxes managers) with 3 000 + direct jobs relative l ti part t in i th the country 10.4 10.4% % 13.8 13.8% % 9.7 9.7% % 4.0 4.0% % 7.8 7.8% % 10.7 10.7% %
value (Fcfa billion) contribution on country taxes revenues contribution on country budgetary revenues contribution on country exports contribution on country GDP contribution on private & general investments contribution on private investments
14
15
Orange Bissau Orange Guinea 3 2 41% 28% growth 6 2 36% 31% growth
- normalization of political and economic environment - depreciation of the GNF - strong competition
market specifications
- strong development of multisim and abundance offers on mobile - strong g competition - development of Internet broadband
- growth in fixed lines due to prepaid offers et development - new competitor (Maroc Tlcom) - market share of internet taken from leader
16
240 358
Fixed line
258 233
282 722
7.4%
9.5%
6 971 710
Mobile
8 884 735
10 905 583
27.4%
22.7%
Internet
52 836
64 052
91 854
21.2%
43.4%
7 264 904
9 207 020
11 280 159
26.7%
22.5%
17
mobile subscribers
Senegal
2008
2009
2010
09/08
10/09
3 536 672
4 607 891
5 089 540
30.3%
10.5%
Mali
2 757 094
3 474 952
4 716 819
26.0%
35.7%
Guinea
617 896
684 211
907 038
10.7%
32.6%
Bissau
60 048
117 681
192 186
96.0%
63.3%
total
6 971 710
8 884 735
10 905 583
27.4% 22.7%
18
3.arpu erosion linked to the progression of subscribers, development of the abundance and impact of regulatory measures
decline in arpu due to the development of abundance and decline in interconnection rates but slowing in Senegal improvement in arpu in Guinea result of the revaluation rates arpu* Senegal
USD
2008
174 14 117 10 162 5 61
2009
193 10 97 9 168 5 76
2010
179 9 83 7 170 6 106
09/08
10,4% -25.9% -17.5% -14.8% 3.3% 1.4% 24.6%
10/09
-7,0% -15.6% -14.4% -17.0% 1.0% 20.1% 39.8%
fixed lines mobile prepaid mobile postpaid mobile prepaid mobile postpaid mobile prepaid mobile postpaid
Mali
USD
Guinea
USD
Bissau
mobile prepaid
USD
*exchange rate at 31/12/2010 1 XOF = 12.16 GNF *exchange rate at 31/12/2010 1 USD = 493.0503 XOF/**arpu on a monthly basis in USD
19
7.1%
-8.9%
3.maintaining the dynamics of growth with strong financial performance despite unfavourable tax and regulatory environment
2008 529 552 2009 562 626 2010 599 002 10/09 6.46%
millions XOF
revenue
Ebitda Ebitda margin operating profit operating p g margin g net profit g net margin Capex p rate Capex
299 063 56.5% 194 104 36.7% 156 825 29.6% 133 061 25.1%
316 108 56.2% 223 884 39.8% 185 028 32.9% 92 163 16.4%
324 242 54.1% 228 044 38.1% 184 760 30.8% 118 139 19.7%
2.57%
1.86%
-0.14%
28.18%
20
revenues by activity
other
international balance
domestic interconnetion
fixed lines
variation 10/09
21
in % of revenue
Ebitda margin
56.5%
56.2%
54.1%
operating margin
36.7%
39.8%
38.1%
net margin
29 6% 29.6%
32 9% 32.9%
30 8% 30.8%
* exceptional acceleration provisions in 2009 (Ebitda impact) and accelerated depreciation of certain assets following the inventory of 2010 (operating margin impact)
22
millions XOF mobile networks % fixed lines/Internet network % information system % logistics buildings and others % total capex in percentage of revenue
2009
65 814 71.4% 15 799 17.1% 5 958 6 5% 6.5% 4 590 4 9% 4.9% 92 161 16.4%
2010
87 699 74.1% 20 081 17.1% 6 480 5 5% 5.5% 3 826 3 2% 3.2% 118 139 19.7%
10/09
32.25%
27.1%
8.76%
-16.65%
28.18%
23
millions XOF
S Senegal l 64.6%
M li Mali 29.6%
G i Guinea 4.8%
Bi Bissau 1.0%
revenue Ebitda operating profit net profit cape capex growth in revenue* g
61.0%
35.1%
3.4%
0.6%
57.5%
39.7%
3.0%
-0.3%
49.7%
47.8%
2.9%
-0.4%
54 5% 54.5% 3.0%
35 5% 35.5% 9.4%
7 6% 7.6% 36.8%
2 3% 2.3% 57.0%
* contributive revenue
24
508
557
591
50% 40%
221 166
204
7 7% -7.7%
13 2008
Equity
51
2.56%
54 2010
2009
Financial debt
2008
2009
Free Cash Flow Variation
2010
Debt/equity ratio
a significant and sustained generation of cash low debt equity ratio below 10% cash flow from operations more than 5 times the financial liability
264
20.3
280
280
25 20 15
55 5.5
52 5.2
10 5 0
51 13 2008
Cash flow
54
2009
Financial debt
2010
Debt coverage ratio
25
154 000
150 000
150 000
151 118
140 000
140 000 144 707 140 000 140 000 135 000 138 435 135 000 135 000
140 000
139 639
135 263
130 30 000
136 386
127 687
120 000
119 449
110 000
100 000
26
3.dividend
exercices share price on 31/12 dividend (millions de Fcfa) net dividende par share dividend growth dividend yield distribution rate (%)
2000
21 000
2001
20 000
2002
20 000
2003
22 500
2004
36 030
2005
67 015
2006
91 000
2007
175 000
2008
130 000
2009
120 000
2010
154 000
29 000
29 000
29 650
44 000
56 500
69 000
88 300
110 000
130 000
135 000
140 000
2 610
2 610
2 668
3 960
5 085
6210
7 947
9 900
11 700
12 150
12 600
2%
0%
2%
48%
28%
22%
28%
25%
18%
3,85%
3,7%
12%
13%
13%
18%
14%
9%
9%
6%
9%
10%
8%
61%
55%
57%
69%
66%
65%
68%
65%
73%
73%
74%
27
4 prospects
29
4.prospects
Our markets are still characterized by increased competition competition, development of abundance and multisim. The group has maintained its strong position on all its markets and maintain its market share value. On the new subsidiaries of Guineas, the commercial and financial performance have been greatly improved. Competition should remain strong but the group should maintain its strong position in its markets by continuing its policy focused on: providing a high quality technical service and commercial retention of its best customers development of innovative and appropriate offers to customer needs, easy to access and use improving customer relationship around the values of the Orange brand with the set up of our new CRM Macroeconomic prospects remain good in 2011 with a projected GDP growth on all our countries of presence better than 2010. Tax and regulatory pressure is however an element of concern in our environment. Our growth outlook is supported by: development of broadband, mobile data and X play offers development of value added services and contents improving macroeconomic and institutional environments of our guinean subsidiaries and their commercial position ii development of the coverage of our networks to get the residual potential penetration in Mali, Guinea and Guinea Bissau the continuation of our development through external growth
30
political situation in Ivory Cost which affects the functioning of some institutions in the subregion transfer of offices and staffs of the Brvm and DC/BR in Bamako Mali due to the situation in Ivory Cost trading g on the Brvm was closed on february y 11th then opened p march 1st with new Brvm offices in Mali
31
5 appendix
32
5.Senegal
overview of country economic evolution - GDP 12.7 billion $, GDP growth: 3.5% (2010) - GDP by sector: agriculture 13.8%, industry 23.3% and services 62.9% - population below poverty line: 54% - inflation rate 2010: 0.9% overview of population dynamics - population: 12.3 million, growth rate: 2.5% - urban b population: l ti 42% of f total, t t l urbanization b i ti rate: t 3.1% - literacy: 39.3% of total population specificities of the telecom market - fiber-optic network - 2/3 of fixed line service connections are in Dakar - fixed-line fixed line service in rural areas needed - mobile-cellular service is expanding rapidly - international: SAT-3/WASC fiber optic (Europe and Asia), Atlantis-2 (South America) and satellite earth station-1 Intelsat (Atlantic Ocean)
33
5.Mali
overview of country economic evolution - GDP 8.9 billion $, GDP growth: 5.1% (2010) - GDP by sector: agriculture 45%, industry 17% and services 38% - population below poverty line: 36.1% - inflation rate 2010 : 2.1% overview of population dynamics - population: 13.7 million, growth rate: 2.6% - urban b population: l ti 32% of f total, t t l urbanization b i ti rate: t 4 4.8% 8% - literacy: 46.4% of total population specificities of the telecom market - domestic system unreliable but improving, provide only minimal service - fixed lines availability is gradually increasing, number of subscribers remains under 1 per 100 persons - mobile-cellular number of subscribers has increased sharply over the last years - international: satellite earth stations-2 intelsat (Atlantic and Indian Ocean)
34
5.Guinea
overview of country economic evolution - GDP 4.394 billion $, GDP growth: 3% (2010) - GDP by sector: agriculture 24.2%, industry 38.5% and services 37.3% - population below poverty line: 47% - inflation rate: 15.4% overview of population dynamics - population: 9 million, growth rate: 2.6% population p 34% of total, , urbanization rate: 3.5% - urban p - literacy: 29.5% of total population specificities of the telecom market y of open-wire lines, small radiotelephone - inadequate system communication stations and new micro wave radio relay system - Conakry reasonably well covered, coverage elsewhere remains inadequate - mobile-cellular number of subscribers has increased sharply over the two last years - 6 competitors in mobile service - international: Satellite earth stations-1 intelsat (Atlantic O Ocean) )
35
5.Guinea Bissau
overview of country economic evolution - GDP 826 million illi $, $ GDP growth: th 3 3.5% 5% (2010) - GDP composition by sector: agriculture 62%, industry 12% and services 26% - inflation rate 2009: 1.5%
overview of population dynamics - population: 1.5 million, growth rate: 2% - urban population 30% of total, total urbanization rate: 3.2% - literacy: 42.4% of total population
specificities of the telecom market - small system - combination of microwave radio relay relay, open wire lines - radiotelephone and cellular communication fixed line teledensity under 1 per 100
36
5.organization
Sonatel General Manager
Risk and Quality Sonatel Sonatel Mobiles/Multimedia/ Mobiles/Multimedia/ Management Business Business Solutions Solutions Audit Sonatel Sonatel Mobiles/Multimedia/ Mobiles/Multimedia/ Security Business Business Solutions Solutions
Sonatel Mobiles/Multimedia/ Sonatel Sonatel Mobiles/Multimedia/ Multimedia/ Business Solutions Sonatel Business Business Solutions Solutions
Sonatel Sonatel Mobiles/Multimedia/ Mobiles/Multimedia/ Sonatel Foundation Business Business Solutions Solutions
Regulation and Business Business Solutions Legal Solutions Affairs General Public Marketing
38
Corporate Services
5.Senegal - competitors
Sentel
Parent co. et brand
Millicom International ownership License of 20 years in July 1998 Commercial launch in 1999 Rebranded in Tigo on December 2005 Financial data (Millicom Africa 2010) Revenues: US $ 905 million Ebitda margin: 39.6%
3rd global license (fixed, mobile and international) for Sudatel on September 2007 for US$ 200 million (Bintel - US$ 152 million, million Celtel - US$ 105 million) Sudatel began its operations at the beginnings g Expresso p brand of 2009 through Subscribers
9% market shares
Sentels brand
Millicom 7 operations
Sudatel 5 operations
39
5.Mali - competitors
O Ownership hi State of Mali (49%) Maroc Telecom (51%) set up in 1989 Commercial launch in 1990 Malitel as mobile operator (1999) GSM subscribers f market k t share h 31% of GSM 900 network 3G license obtained at the privatization
Maroc Telecom bought 51% stake in Mali phone company Sotelma for 275 millions euros ($382 8 million) the deal was realised on July ($382.8 8th 2009
Maroc Telecom, Telecom which is 53% owned by France's Vivendi and 30% by the Moroccan State, has expanded into Mauritania, Burkina Faso and Gabon s since through aso a d Gabo ce 2006 006 t oug acquisitions
40
5.Guinea - competitors
ownership
Intercel now owned by Expresso (30% in 30th June 2010 2010- 100% by 28th Feb 2012)
launch in
1993
GSM
5%
market share
subscribers
Privatization
Cellcom
17%
market share
41
Shareholding State of Bissau (90%) Staff (10%) Set up in 1995 GSM Subscribers 4.1% market share
Shareholding MTN (100%) Commercial launch in June 2004 GSM subscribers 64.9% market share
42
thank you y
43