Business Highlights review Financial Outlook results First Half - PowerPoint PPT Presentation

Business Highlights review Financial Outlook results First Half 2010 Results 2

Operating environment in Morocco GDP in Morocco* (MAD bn) 5,2% 4,3% 5,6% • A in Q1-10 with a 5.6% growth 4,0% s us tained growth 2,7% for the non-agricultural GDP and a 3.5% growth for 816 778 736 the total GDP. 689 615 • (+1.4% in Q2-10) Controlled inflation 2007 2008 2009 2010E 2011E . Value GDP growth * Haut Commissariat au Plan Telecom market • A growing mobile market 88% + 19 pts • Usage is still limited M obile market 69% • Strong growth of internet (millions) 28 27 25 25 subscriptions thanks to 24 24 23 21 22 M obile the rapid take-off of penetration mobile internet (dongles) T2-08 T3-08 T4-08 T1-09 T2-09 T3-09 T4-09 T1-10 T2-10 • New entrant (Source ANRT) First Half 2010 Results 3

Regulatory context in Morocco • : 2010-2013 regulatory guide path • Decrease of the mobile termination rates • Asymmetric tariffs converging at the end of 2012 (MAD/ Min) Mobile Termination Rates Wana 0.923 0.749 Méditel IAM 0.624 0.303 mid 2010 2013 First Half 2010 Results 4

Leading operating active on all market segments with a well established brand Mobile Internet Fixed Subscribers 822k Subscribers 15.9 Subscribers 1.237 Q2 lines Q2 millions Q2 millions o/w postpaid 731 k o/w ADSL 477k Growth +11.3% Growth -4.1% Growth +42.9% Penetration (1) Penetration Penetration 88.5% 4% Q2 2010 Q2 2010 ADSL 44% of Q2 2010 fixed lines Market shares (Q2 2010): 99% (1) 57% 54% (1) Excluding limited mobility First Half 2010 results

Sub-Saharan Africa • Real GDP growth in 2010e 5,4% 5,1% 4,6% 4,4% + 4.7% + 4.7% Average GDP growth in the sub- Saharan area (IMF 2010) Mauritania Burkina Faso Gabon Mali • in all markets where Maroc Telecom Inflation is under control is operating (2.7% in 2010) Mobile penetration (Q1 2010) 101% 87% • Markets with a limited penetration (Burkina Faso, Mali) will benefit from a strong growth of the subscribers base 32% 26% • will support the growth of the Prepaid offers mobile penetration in more matured countries Burkina Faso Mali Mauritania Gabon (Gabon, Mauritania) (Source: Dataxis) First Half 2010 Results 6

Appealing results in Maroc Telecom’ subsidiaries Mauritel Sotelma Mauritania Mali Photo 2010 vs 2009 2010 vs 2009 Mobile subs. (000) Mobile subs. (000) 1,464 +130% 1,547 +18% Q2 2010 Q2 2010 Market share* Market share* 53% - 21% +4 pts Market share 30% +13 pts H1-10** * Q1-2010 vs. Q1-2009 Source Dataxis Gabon ** Maroc Telecom estimates Telecom Gabon 2010 vs 2009 Mobile subs. (000) 577 +8% Q2 2010 Onatel Market share* 34% - Burkina Faso 2010 vs 2009 Mobile subs. (000) 1,994 +52% Q2 2010 Market share* 43% +2 pts First Half 2010 results

Key figures Maroc Telecom Group MMAD % Comparable bas is +6.0% +2.2% Revenues 15,465 Operating income 6,667 +1.8% +2.6% 43.1% Operating margin +0.2pt -1.8 pt Cash Flow 5,510 +1.6% from operations First Half 2010 Results 8

Business Highlights review Financial Outlook results First Half 2010 Results 9

Highlights Mobile in Morocco POSTPAID PREPAID PREPAID LOYALTY PROGRAM Free additional More free minutes bonus on prepaid Extension in the postpaid refills above MAD50 and improvement offers (permanent offer) MOBILE EXTENSION OF THE PAYMENT DISTRIBUTION NETWORK Development of 335 owned-shops, the distribution o/w 12 new in H1 2010 network and launch of new services First Half 2010 results

Business review Morocco Mobile cus tomers bas e +11.3% 15,904 • is Cus tomer bas e 731 706 682 669 14,289 still growing 671 15 173 14,872 14,590 14,570 13,618 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Prepaid Postpaid Churn -7.8pts thanks to: Churn is decreas ing 36.5% 35.2% 33.5% 27.4% • The launch of offers 22.8% improving loyalty • Loyalty programs Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 First Half 2010 Results 11

Mobile in Morocco ARPU et usage Blended ARPU Blended outgoing us age (MAD / customer / month) (Minutes / customer / months) ~ -9.1% 55 54 97 98 51 94 94 49 91 44 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 is stabilizing at a high level despite the growth of the customers base • ARPU First Half 2010 Results 12

Business review Morocco Mobile (MADm) 63.4% 62.5% +2.8 pts 62.2% 57.4% 5 9.7% 5 ,0 04 4 ,847 4,53 7 4,983 +7.4% 3,1 15 4,638 3 ,0 71 2,60 5 3,117 +12.5% 2,770 (in MADm) Q 2-09 Q 3-09 Q 4-09 Q 1-10 Q 2-10 Revenues EBITD A EBITDA margin Mobile revenues are growing significantly, margins continue to be improved First Half 2010 Results 13

Highlights Fixed & Internet in Morocco • with Free national calls • Decreas e of the triple-play offers from termination rates (telephony over Internet) abroad to the fixed lines in Morocco Robust growth Free doubling of the of the ADSL bandwidth speeds enterprise market First Half 2010 results

Business review Fixed & Internet in Maroc Fixed lines cus tomer bas e -4.1% 1,290 1,237 373 371 369 372 376 • Stabilization of the 164 164 158 155 154 number of line in 2010 753 735 707 705 706 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Residential Public telephony Corporate +43.1% Bas e Clients Internet 820 343 573 265 174 89 116 • Strong growth thanks to Mobile Internet 484 471 469 474 477 (dongles) Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 ADSL 3G dongles First Half 2010 Results 15

Business Review Fixed & Internet in Morocco Fixed (MADm) 49.8% 49.9% 48.5% -2 pts 47.8% 47.1% 2,284 2,268 2,193 2,384 2,119 -11.1% 1,133 1,075 1,064 1,187 1,013 -14.7% (in MADm) T2-09 Q3-09 Q4-09 Q1-10 Q2-10 Revenues EBITDA EBITDA margin Slight decrease of the fixed lines base, but stabilization in 2010 First Half 2010 Results 16

Mauritania H1-2009 H1-2010 var. In MADm – IFRS 3.1 millions Population Revenues (net) 565 595 +5.3% 472 509 +8% Mobile $ 3.03 billions GDP 113 110 -2.4% Fixed and Internet -1.1% in 2009 299 300 +0.4% EBITDA +4.6% in 2010e 52.9% 50.4% % of revenues ˜ $ 2 038 Revenue per -2.2% in 2009e inhabitant (ppp) 205 195 -4.9% Operating income 36.3% 32.7% % of revenues +4.9% in 2009 Inflation +4.6% in 2010e Mobile H1-2009 H1-2010 var. Ouguiya (MRO) 32.07 1,315 1,547 +18% MAD 1 = Customers (000) +2.7% vs. H1 2009 63 56 -11% ARPU (MAD) S ource: IMF 53% 53% - Market share* 74% 87% +13pts Penetration* 3 3 - Nb of operators Fixed 56 42 -25% Lines (000) 44.2% 44.2% - Market share 3.0% 3.0% - Penetration 2 2 - Nb of operators Internet 11 7 -33% Customers (000) * Source Dataxis à fin T1-2010 First Half 2010 Results 17

Burkina Faso H1-2009 H1-2010 var. In MADm - IFRS 14.4 millions Population Revenues (net) 833 934 +12.1% 558 677 +21.3% Mobile $ 8.1 billions GDP 399 391 -1.8% Fixed and Internet +3.2% in 2009 359 481 +33.9% EBITDA +4.4% in 2010e 43.1% 51.5% % of revenues ˜ $ 1,304 Revenue per +2.1% in 2009 inhabitant (ppp) 153 281 84% Operating income 18.4% 30.1% % of revenues -0.3% in 2009 Inflation +2.0% in 2010e Mobile H1-2009 H1-2010 var. FCFA 58.60 MAD 1 = Customers (000) 1,316 1,994 +52% -0.2% vs. H1 2009 ARPU (MAD) 78 61 -22% S ource: IMF Market share* 41% 43% +2pts Penetration* 18% 26% +8pts Nb of operators 3 3 - Fixed Lines (000) 151 154 +2% Market Share 100% 100% - Penetration 1.1% 1.1% - Nb of operators 1 1 - Internet Customers (000) 21 25 +20% * Source: Dataxis at end of Q1-2010 First Half 2010 Results 18

Gabon H1-2009 H1-2010 var. In MADm - IFRS 1.5 million Population Revenues (net) 593 512 -13.7% 326 277 Mobile -14.9% $ 11.01 billions GDP 315 281 Fixed and Internet -10.6% -1.4% in 2009e 179 164 EBITDA -8.2% +5.4% in 2010e 30.2% 32.6% % of revenues ˜ $ 14,317 Revenue per -1.7% in 2009e inhabitant (ppp) 53 34 Operating Income -35.9% 8.9% 6.6% % of revenues +0.8% in 2009e Inflation +7.5% in 2010e Mobile H1-2009 H1-2010 var. FCFA 58.60 MAD 1 = Customers (000) 533 577 +8% -0.2% vs. H1 2009 ARPU (MAD) 103 76 -27% S ource: IMF Market share* 34.4% 34% -0.4pt Penetration* 89% 101% +12pts Nb of operators 3 4 - Fixed Lines (000) 36 36 +1% Market share 100% 100% - Penetration 2.4% 2.4% - Nb of operators 1 1 - Internet Customers (000) 19 21 +8% •Source: Dataxis at end of Q1-2010 First Half 2010 Results 19