Middle East and North Africa Region MENA -...
Transcript of Middle East and North Africa Region MENA -...
Middle East and North Africa RegionMENA
Jamal RamadanVice President
MTN global footprint
Now operating in 21 countries serving acombined population of over 500 million people
South and East West and Central Middle East and NorthAfrica Region Africa Region Africa RegionSouth Africa Nigeria Syria14 076 000 14 985 000 2 896 000
Uganda Ghana Iran2 094 000 3 872 000 3 720 000Botswana Côte d’Ivoire Sudan750 000 2 302 000 1 884 000Rwanda Cameroon Yemen576 000 2 238 000 1 426 000
Swaziland Benin Afghanistan356 000 562 000 877 000Zambia Guinea Republic Cyprus194 000 523 000 106 000
Congo-Brazzaville279 000Liberia
272 000Guinea Bissau
176 000
MTN Subscribers
2
3
MENA region
521
6
43
Syria (1)
Population 19.1 mLand Area 0.18 m km2
Governorates 14Capital DamascusGDP 2.9%GDP per Capita $ 1,614
Cyprus (6)
Population 0.9mLand Area 9,250 km2
Districts 6Capital NicosiaGDP 3.8%GDP per Capita $ 13,235
Sudan (3)
Population 37 mLand Area 2.5 m km2
States 26Capital KhartoumGDP 9.3%GDP per Capita $ 934
Afghanistan (5)
Population 31.3 mLand Area 0.6 m km2
Provinces 34Capital KabulGDP 8%GDP per Capita $ 319
Iran (2)
Population 71 mLand Area 1.6 m km2
Provinces 30Capital TehranGDP 6%GDP per Capita $ 3,446
Yemen (4)
Population 21.5 mLand Area 0.5 m km2
Governorates 21Capital Sana’aGDP 3.2%GDP per Capita $ 600
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Group structure
MTN Network Solutions100%
MTNNetworkOperator100%
MTNAfghanistan100%
MTNSudan85%
MTNIrancell49%
MascomZambia100%
MTNCyprus99%
MTNYemen83%
MTNCôte d’Ivoire68%
MTNRwanda40%
MTNSyria75%
MTNLiberia60%
MTNNigeria82%
MascomBotswana51%
MTN GuineaBissau100%
MTNGhana98%
MTN Congo-Brazzavile100%
MTNUganda97%
MTNBenin75%
MTN GuineaRepublic75%
MTNCameroon70%
MTNSwaziland30%
Mednet100%
MTN Holdings100%
MTN Inernational100%
MTN Mauritius100%
Investcom LLC100%
MTNServiceProvider100%
South Africa
South and East Africa region
West and Central Africa region
Middle East and North Africa region
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Shareholding
• Process of diversement of a portion of local company underway• 0%Cyprus
• Larrycom Company Limited• 15% Sudan
• Al Bashair• Sara Adhami• Zubair Corporation
• 17%Yemen
• Teleinvest• 25%Syria
• IFC has a right to 9.1% of closing funding• 0%Afghanistan
• 51% IEDC (Key shareholders : Iran Electronics Industrial and MastazafanFoundation)
• 51%Irancell
DetailsOutside ownership
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Management structure
VPJamal Ramadan
CEOSyria
Ismail Jaroudi
CEOAfghanistan
Toufic Ramadan
CEOCyprus
Bassel Jamaleddine
CEOSudan
Imad Kreidieh
MDIran
Alireza Dezfouli
CEOYemen
Raed Ahmad
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Regulations and licences
• 900 MHz• 1800 MHz• 3G
• 21m€• 20 Years
• Dec 2003• 20 Years• Renewable thereafter
Cyprus
• 900 MHz• 1800 MHz
• US$ 40m• 2.5% of net revenue to
Telecom. Development Fund
• Oct 2005• 15 Years• Renewable for additional 10
years
Afghanistan
• 900 MHz• E-900 MHz
• US$10m• 15 Years• No revenue share
• Jul 2000• 15 Years• Renewable thereafter
Yemen
• 900 MHz• 1800 MHz• 3G
• 150m€• 15 Years• Profit share 2.5% from PAT
• Oct 2004• 15 Years• Renewable thereafter
Sudan
• 900 MHz• 1800 MHz• 3G Trial
• Upfront US$20m• Revenue share:
Year 1 to 3 - 30% Year 4 to 6 - 40%Year 7 to 15 - 50%
• Jun 2002• 15 Years BoT contract• Renewable, 3 years at discretion
of licencee
Syria
• 900 MHz• 1800 MHz
• Initial fee 300m€• Each contractual year 28.1%
• Issued Nov 05, effective Jul 06• 15 Years• Renewable 2 periods of 5 years
Iran
SpectrumLicence fees(High level)
Period
8
-18134
320
279
32
679
Highlights
431
960
864
526184
2141
• Fastest growing contributor to group• Strong subscriber growth in Iran and Afghanistan• Speedy rollout in Iran, Sudan and Afghanistan• Yemen market leadership maintained in challenging environment• All successfully MTN branded (Afghanistan Nov 07)
-42
337
53
17
32
Revenue (Rm)15% Group
EBITDA (Rm)8% Group
EBITDA Margin25% Group
Iran Syria Afghanistan Yemen Sudan Others (inc Mednet)
9
4,912
8,025
10,908
6,297
Highlights
87%12.4%29%15.82%15.8%33.5%22.9%SeptJune
SeptJune 12%18%12%41%27%45%23%
24343218No. of operators
39111191421ARPU ($)
Penetration
Market share
Subs. (000)September 07
87%9%24%15%15%30%19%
14%22%19%42%30%45%26%
1068873,7201,4261,8842,89610,895
CyprusAfghanistanIranYemenSudanSyriaTotal
MENA Regional Subscribers Growth (000)
Dec-06 Mar-07 Jun-07 Sep-07
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CAPEX Roll-out plan
36
75
64
353
206
2,149
Approved or committed
at30 Jun 2007
91
166
56
492
242
714
Actual6 months ended
Jun 2007
126Cyprus
288Afghanistan
82Yemen
839Sudan
451Syria
2,863Irancell
Approved or committed to31 Dec 2007
Rm
MTN Syria green field site
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Funding
• Strong cash flow sufficient to cover CAPEX• Local capacity for additional funding120558Yemen
• Group bridge funding• 3rd party project finance to replace in due course
• Group funding• Impact of sale may result in change
• Strong cash flow sufficient to cover additional CAPEX• Purchase of forex a challenge• Limited local capacity• Group funding support
• Group bridge funding• 3rd party project finance to replace in due course
• Group and vendor funding• 3rd party funding continues to be explored
Commentary
24164Afghanistan
12710Cyprus
4481,358Syria
845640Sudan
2,863Iran
CAPEXEBITDA*Rm
* 6 months to Jun 07 x 2
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Looking forward
• Regional synergies• Hub and cluster• Network planning• Leverage content relationships• Economies of scale• Traffic management• Reporting
• Innovation• Utilisation of complementary technologies
such as GPRS,3G• Introducing & developing new relevant
products (including non-traditional)
• Branding – MTN fast becoming leading brand
• Significant untapped telephony market potential driven by
• Stagnant fixed line growth & ongoing fixed/mobile substitution
• Unstructured and inconsistent regulatory bodies
• Roll-out challenges
• Political environment
• Increasing competition
ChallengesOpportunities
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Looking forward
• Focus on increasing footprint
• Least cost operator initiatives
• Leverage synergies
• Enhance customer centricity to reach bottom of Pyramid customers
• Launching of innovative products, services and technologies
• Ongoing infrastructure roll-out
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