Financial Analysis

Tesco_Reformulated BS

MOBILE TELECOMMUNICATIONS COMPANY K.S.C (ZAIN)
REFORMULATED BALANCE SHEETS
(in millions)
	12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD
Net operating assets (NOA):
Operating assets
Cash	343.57	399.242	302.609	196.846	255.965
Accounts receivable, less allowance for doubtful account	242.258	350.3	218.167	221.816	323.889
Inventories	16.836	14.922	11.906	21.182	13.258
Property, plant and equipment, net	852.59	734.641	699.03	795.644	793.686
Other assets	1819.868	1595.905	1696.586	1837.949	1927.424
Total operating assets	3275.122	3095.01	2928.298	3073.437	3314.222
Operating liabilities
Accounts payable	362.409	73.981	84.487	63.756	47.202
Income taxes payable	66.425	57.561	55.606	52.133	29.628
Other liabilities	265.999	446.475	428.352	425.825	665.523
Total operating liabilities	694.833	578.017	568.445	541.714	742.353
Net operating assets (NOA):	2580.289	2516.993	2359.853	2531.723	2571.869
Net financial assets (obligations) (NFA/NFO):
Financial assets
Short term investment	1.941	1.93	2.693	213.797	395.715
Total financial assets	1.941	1.93	2.693	213.797	395.715
Financial liabilities
Current portion of long-term debt	171.616	198.402	270.656	313.823	124.933
Long-term debt	616.645	557.319	381.136	226.159	94.734
Preferred Stock	0.0	0.0	0.0	0.0	0.0
Total financial liabilities	788.3	755.7	651.8	540.0	219.7
Net financial Obligations (NFA/NFO)	-786.3	-753.791	-649.099	-326.185	176.048
NET FINANCIAL OBLIGATIONS (ASSETS)	786.32	753.791	649.099	326.185	-176.048
less minority interest	168.6	142.5	120.1	125.0	100.9
Common Shareholders' Equity (CSE)	1,625.4	1,620.7	1,590.6	2,080.5	2,647.0
CSE as per Thomson Analytics	1625.4	1620.7	1590.6	2080.5	2647.0
Check reformulated = conventional (must be 0)	0.0	0.0	0.0	0.0	0.0

Zain_Reformulated IS

MOBILE TELECOMMUNICATIONS COMPANY K.S.C (ZAIN)
Reformulated Income Statement
(in millions)
	12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD
Operating Income
Revenues	1,213.23	1,240.04	1,281.90	1,245.70	1,351.68
Cost of sales	336.03	351.57	360.98	312.00	240.77
Gross margin	877.20	888.47	920.93	933.70	1,110.91
Operating expenses	542.48	545.64	543.66	576.90	672.04
Other operating income (expense)	-82.56	-66.96	-34.31	-40.00	-19.24
Operating income from sales(before tax)	252.17	275.87	342.95	316.80	419.62
Taxes
Tax as reported	30.42	26.47	47.68	45.60	36.17
Other tax adjustments
Tax benefit on net interest	1	0	1	2	3
Operating income from sales (after tax)	221	249	294	270	380
Dirty surplus items	- 0	- 0	- 0	- 0	- 18.91
Equity Earnings	0.00	0.00	0.00	0.00	0.00
Operating Income (after tax)	221	249	294	270	361
Financing Expense (Income)
Interest expense	26.28	23.55	26.38	30.70	55.25
Interest income	18.69	18.10	16.99	17.00	17.81
Other interest adjustments	0.00	0.00	0.00	0.00	0.00
Net interest expense	7.59	5.45	9.39	13.70	37.44
less Tax benefit from Net Interest Expense	-1	-0	-1	-2	-3
Preferred dividends
Net Financial Expense (after tax)	7	5	8	12	34
Minority interest	19.85	27.50	28.05	32.00	34.65
Comprehensive income to Common	194	216	258	226	292
Comprehensive Income to Common as per Thomson	194	216	252	0	292
Check Row 30 = Row 31	0	0	6	226	0
Tax allocation
a. Calculate average tax rate (as rate not given )
Operating Income	334.722	342.825	377.265	412.3	438.868
Income taxes for year	30.419	26.473	47.677	45.6	36.174
Average tax rate (Tax cost / Operating Income)	9%	8%	13%	11%	8%
b. Allocation of tax cost
Allocation to financing activities
NFE	7.59	5.45	9.39	13.70	37.44
Tax rate	9%	8%	13%	11%	8%
Tax benefit (NFE x tax rate)	1	0	1	2	3

Zain_Decomposition

Analysis of profitabililty
A. Analysis of ROCE
	Formula
		12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD
ROCE	Comprhensive Income/Common Share Equity	0.12	0.13	0.16	0.11	0.11
FIRST LEVEL
	RNOA + (FLEV x (RNOA - NBC))	0.12	0.14	0.17	0.12	0.12
RNOA	OI/NOA	0.09	0.10	0.12	0.11	0.14
FLEV	NFO/CSE	0.48	0.47	0.41	0.16	-0.07
NBC	NFE/NFO	0.01	0.01	0.01	0.04	-0.20
SPREAD	(RNOA - NBC)	0.08	0.09	0.11	0.07	0.34
SECOND LEVEL
PM	OI/SALES	0.182	0.201	0.229	0.216	0.267
ATO	SALES/NOA	0.47	0.49	0.54	0.49	0.53
	RNOA	0.09	0.10	0.12	0.11	0.14
THIRD LEVEL
PM	GM/SALES	0.72	0.72	0.72	0.75	0.82
	operating expense/SALES	0.52	0.49	0.45	0.50	0.51
	TAXES/SALES	0.03	0.02	0.04	0.04	0.03
	Other income/sales	0.000	0.000	0.000	0.000	-0.014
		0.182	0.201	0.229	0.216	0.267
ATO	1/ATO	2.13	2.03	1.84	2.03	1.90
	CASH/SALES	0.283	0.322	0.236	0.158	0.189
	RECEIVABLES/SALES	0.200	0.282	0.170	0.178	0.240
	INVENTORIES/SALES	0.0139	0.0120	0.0093	0.0170	0.0098
	OTHER CURR. ASSETS/SALES	1.5000	1.2870	1.3235	1.4754	1.4259
	PPE/SALES	0.7027	0.5924	0.5453	0.6387	0.5872
	ACCOUNTS PAYABLE/SALES	0.2987	0.0597	0.0659	0.0512	0.0349
	INCOME TAXES/SALES	0.0548	0.0464	0.0434	0.0419	0.0219
	OTHER .LIABILITIES/SALES	0.2192	0.3601	0.3342	0.3418	0.4924
		2.13	2.03	1.84	2.03	1.90

Zain_Trend_Bal_Sheet_base_year

MOBILE TELECOMMUNICATIONS COMPANY K.S.C (ZAIN)
REFORMULATED BALANCE SHEETS
(in millions)
	12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD	12/31/2010 KWD		12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD
Net operating assets (NOA):	%	%	%	%	%
Operating assets
Cash	134.23	155.98	155.98	76.90	100	255.965		343.57	399.242	302.609	196.846
Accounts receivable, (Net)	74.80	108.15	108.15	68.49	100	323.889		242.258	350.3	218.167	221.816
Inventories	126.99	112.55	112.55	159.77	100	13.258		16.836	14.922	11.906	21.182
Property, plant and equipment, net	107.42	92.56	92.56	100.25	100	793.686		852.59	734.641	699.03	795.644
Other assets	94.42	82.80	82.80	95.36	100	1927.424		1819.868	1595.905	1696.586	1837.949
Total operating assets	98.82	93.39	93.39	92.73	100	3314.222		3275.122	3095.01	2928.298	3073.437
Operating liabilities
Accounts payable	767.78	156.73	156.73	135.07	100	47.202		362.409	73.981	84.487	63.756
Income taxes payable	224.20	194.28	194.28	175.96	100	29.628		66.425	57.561	55.606	52.133
Other liabilities	39.97	67.09	67.09	63.98	100	665.523		265.999	446.475	428.352	425.825
Total operating liabilities	93.60	77.86	77.86	72.97	100	742.353		694.833	578.017	568.445	541.714
Net operating assets (NOA):	100.33	97.87	97.87	98.44	100	2571.869		2580.289	2516.993	2359.853	2531.723
Net financial assets (obligations) (NFA/NFO):
Financial assets
Short term investment	0.00	0.00	0.00	0.00		395.715		1.941	1.93	2.693	213.797
Total financial assets	0.49	0.49	0.49	54.03	100	395.715		1.941	1.93	2.693	213.797
Financial liabilities
Current portion of long-term debt	137.37	158.81	158.81	251.19	100	124.933		171.616	198.402	270.656	313.823
Long-term debt	650.92	588.30	588.30	238.73	100	94.734		616.645	557.319	381.136	226.159
Preferred Stock						0		0	0	0	0
Total financial liabilities	358.84	344.03	344.03	245.82	100	219.667		788.261	755.721	651.792	539.982
Net financial Obligations (NFA/NFO)	0.00	0.00	0.00	0.00		176.048		-786.32	-753.791	-649.099	-326.185
NET FINANCIAL OBLIGATIONS (ASSETS)	-446.65	-428.17	-428.17	-185.28	100	-176.048		786.32	753.791	649.099	326.185
less minority interest	0.00	0.00	0.00	0.00		100.927		168.566	142.545	120.117	125.048
Common Shareholders' Equity (CSE)	61.41	61.23	61.23	78.60	100	2646.99		1625.403	1620.657	1590.637	2080.49

Zain_Trend_Inc_Statem

TESCO PLC (TSCO)
Reformulated Income Statement
	12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD	12/31/2010 KWD		12/31/2014 KWD	12/31/2013 KWD	12/31/2012 KWD	12/31/2011 KWD restated	12/31/2010 KWD
	%	%	%	%	%
Operating Income
Revenues	89.76	91.74	94.84	92.16	100	1351.681		1213.229	1240.035	1281.903	1245.7
Cost of sales	139.56	146.02	149.92	129.58	100	240.773		336.029	351.569	360.975	312
Gross margin	78.96	79.98	82.90	84.05	100	1110.908		877.2	888.466	920.928	933.7
Operating expenses	80.72	81.19	80.90	85.84	100	672.04		542.478	545.641	543.663	576.9
Other operating income (expense)	429.00	347.94	178.31	207.86	100	-19.244		-82.556	-66.958	-34.314	-40
Operating income from sales(before tax)	60.09	65.74	81.73	75.50	100	419.624		252.166	275.867	342.951	316.8
Taxes
Tax as reported	84.09	73.18	131.80	126.06	100	36.174		30.419	26.473	47.677	45.6
Other tax adjustments
Tax benefit on net interest	22.36	13.64	38.45	49.10	100	3.0861004539		0.6899488172	0.421081511	1.1866646257	1.5152073733
Operating income from sales (after tax)	58.12	65.46	77.32	70.90	100	380.3638995461		221.0570511828	248.972918489	294.0873353743	269.6847926267
Dirty surplus items	0.00	0.00	0.00	0.00		-18.912		0	0	0	0
Equity Earnings					100	0		0	0	0	0
Operating Income (after tax)	61.16	68.88	81.36	74.61	100	361.4518995461		221.0570511828	248.972918489	294.0873353743	269.6847926267
Financing Expense (Income)
Interest expense	47.57	42.62	47.75	55.56	100	55.254		26.283	23.548	26.384	30.7
Interest income	104.93	101.58	95.40	95.44	100	17.813		18.691	18.095	16.994	17
Other interest adjustments						0		0	0	0	0
Net interest expense	20.28	14.56	25.08	36.59	100	37.441		7.592	5.453	9.39	13.7
less Tax benefit from Net Interest Expense	0.00	0.00	0.00	0.00		-3.0861004539		-0.6899488172	-0.421081511	-1.1866646257	-1.5152073733
Preferred dividends
Net Financial Expense (after tax)	20.09	14.65	23.88	35.47	100	34.3548995461		6.9020511828	5.031918489	8.2033353743	12.1847926267
Minority interest	0.00	0.00	0.00	0.00		34.645		19.854	27.496	28.047	32
Comprehensive income to Common	66.44	74.01	88.16	77.11	100	292.452		194.301	216.445	257.837	225.5
											0
											225.5
											412.3
											45.6
											0.1105990783
											13.7
											0.1105990783
											1.5152073733

Zain_Common_Size_IS

TESCO PLC (TSCO)
Reformulated Income Statement
(in millions)
	02/26/2011 GBP	02/27/2010 GBP	02/28/2009 GBP restated	02/23/2008 GBP	02/24/2007 GBP		02/26/2011 % of Revenues	02/27/2010 % of Revenues	02/28/2009 % of Revenues	02/23/2008 % of Revenues	02/24/2007 % of Revenues
Operating Income
Revenues	1,213.23	1,240.04	1,281.90	1,245.70	1,351.68		100.00	100.00	100.00	100.00	100.00
Cost of sales	336.03	351.57	360.98	312.00	240.77		27.70	28.35	28.16	25.05	17.81
Gross margin	877.20	888.47	920.93	933.70	1,110.91		72.30	71.65	71.84	74.95	82.19
Operating expenses	542.48	545.64	543.66	576.90	672.04		44.71	44.00	42.41	46.31	49.72
Other operating income (expense)	-82.56	-66.96	-34.31	-40.00	-19.24		-6.80	-5.40	-2.68	-3.21	-1.42
Operating income from sales(before tax)	252.17	275.87	342.95	316.80	419.62		20.78	22.25	26.75	25.43	31.04
Taxes
Tax as reported	30.42	26.47	47.68	45.60	36.17		2.51	2.13	3.72	3.66	2.68
Other tax adjustments
Tax benefit on net interest	1	0	1	2	3		0.06	0.03	0.09	0.12	0.23
Operating income from sales (after tax)	221	249	294	270	380		18.22	20.08	22.94	21.65	28.14
Dirty surplus items	0	0	0	0	-18.912
Equity Earnings	0.00	0.00	0.00	0.00	0.00		0.00	0.00	0.00	0.00	0.00
Operating Income (after tax)	221	249	294	270	361		18.22	20.08	22.94	21.65	26.74
Financing Expense (Income)
Interest expense	26.28	23.55	26.38	30.70	55.25		2.17	1.90	2.06	2.46	4.09
Interest income	18.69	18.10	16.99	17.00	17.81		1.54	1.46	1.33	1.36	1.32
Other interest adjustments	0.00	0.00	0.00	0.00	0.00
Net interest expense	7.59	5.45	9.39	13.70	37.44		0.63	0.44	0.73	1.10	2.77
less Tax benefit from Net Interest Expense	-1	-0	-1	-2	-3
Preferred dividends
Net Financial Expense (after tax)	7	5	8	12	34		0.57	0.41	0.64	0.98	2.54
Minority interest	19.85	27.50	28.05	32.00	34.65
Comprehensive income to Common	194	216	258	226	292		16.02	17.45	20.11	18.10	21.64
	759%	545%	939%	1370%	3744%
	0	0	0	0	0
	0.6899488172	0.421081511	1.1866646257	1.5152073733	3.0861004539

Inter-firm_ratios

DRIVERS OF PROFITABILITY (ROCE)
		2007	2008	2009	2010	2011
ROCE	Zain	0.1178	0.1929	0.2335	0.2559	0.3433
	Vodafone	-0.2046	0.0058	0.0904	0.0910	0.0957
First-Level Decomposition
RNOA	Zain	0.0857	0.0989	0.1246	0.1065	0.1405
	Vodafone	-0.1467	0.0190	0.0727	0.0709	0.0730
FLEV	Zain	0.4838	0.4651	0.4081	0.1568	-0.0665
	Vodafone	0.2658	0.3390	0.3934	0.3194	0.3484
SPREAD	Zain	0.0769	0.0922	0.1120	0.0692	0.3357
(RNOA-NBC)	Vodafone	-0.1965	-0.0297	0.0434	0.0595	0.0632
NBC	Zain	0.0088	0.0067	0.0126	0.0374	-0.1951
	Vodafone	0.0498	0.0487	0.0293	0.0114	0.0098
Second Level Decomposition
PM	Zain	0.1822	0.2008	0.2294	0.2165	0.2674
	Vodafone	-0.3467	0.0483	0.1700	0.1784	0.2007
ATO	Zain	0.4702	0.4927	0.5432	0.4920	0.5256
	Vodafone	0.4232	0.3933	0.4279	0.3972	0.3636

Inter-firm_Graphs

Tesco 2007 2008 2009 2010 2011 0.11778175907359728 0.1928934722368375 0.23349734009340892 0.25590173373424607 0.34326790650668304 Kroger 2007 2008 2009 2010 2011 -0.20459874014858337 5.7780824600920577E-3 9.0426983817508286E-2 9.1005653589172522E-2 9.5650634536019713E-2 Tesco 2007 2008 2009 2010 2011 8.5671431061703829E-2 9.8916810054308912E-2 0.12462104011323542 0.10652223510499693 0.14054055612712199 Kroger 2007 2008 2009 2010 2011 -0.14672871616237515 1.898205108469684E-2 7.2739099201668947E-2 7.0878204531653832E-2 7.2995045052411237E-2 Tesco 2007 2008 2009 2010 2011 0.48376925599374432 0.4651144566678822 0.40807487817773652 0.1567827771342328 -6.6508751449759915E-2 Kroger 2007 2008 2009 2010 2011 0.26578345244484619 0.33903213621164852 0.39343601741730033 0.31935354919764719 0.34843606510217856 Tesco 2007 2008 2009 2010 2011 8.7776619986425011E-3 6.6754823140963643E-3 1.2638034220263768E-2 3.7355465845235407E-2 -0.19514507149246221 Kroger 2007 2008 2009 2010 2011 4.9767512190720238E-2 4.8651135351089961E-2 2.9306644735677831E-2 1.1372695679901072E-2 9.8259875523942584E-3 Tesco 2007 2008 2009 2010 2011 0.18220554502305225 0.20077894453706965 0.22941465569106159 0.21649256853715032 0.26740917387024388 Kroger 2007 2008 2009 2010 2011 -0.34667175078482831 4.8262741856495969E-2 0.16998261045531232 0.17844982878357846 0.20074293937758586 Tesco 2007 2008 2009 2010 2011 0.47019112975329513 0.49266525572379416 0.54321307301768385 0.49203645106514421 0.52556370483877679 Kroger 2007 2008 2009 2010 2011 0.42324970474287793 0.39330652081760942 0.4279208267647574 0.39718841432800678 0.36362447057284425 Tesco 2007 2008 2009 2010 2011 7.6893769063061335E-2 9.2241327740212542E-2 0.11198300589297165 6.9166769259761535E-2 0.3356856276195842 Kroger 2007 2008 2009 2010 2011 -0.19649622835309538 -2.9669084266393121E-2 4.3432454465991116E-2 5.9505508851752764E-2 6.3169057500016973E-2

RNOA

FLEV

NBC

First_Level_Interfirm

Second_Level_Interfirm