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Etisalat AnnualReport2015 English
Etisalat AnnualReport2015 English
Etisalat Building
Intersection of Zayed The 1st Street and
Sheikh Rashid Bin Saeed Al Maktoum Street
P.O. Box 3838, Abu Dhabi, UAE
Regional Offices:
Abu Dhabi, Dubai, Northern Emirates
Business snapshots
Chairmans statement
Board of Directors
10
Our Journey
12
CEOs Statement
14
Management Team
16
21
22
Operational Highlights
24
28
UAE
30
Sauadi Arabia
34
Egypt
36
Morrocco
38
Nigeria
42
Pakistan
44
Human Resorces
54
56
Corporate Governance
58
Financials
60
122
51.7
167
AED
Billion
Revenue
Million
Aggregate
subscribers
26.6
80
AED
Billion
EBITDA
8.3
AED
Billion
Net Profit
04
Fils
Dividend
per share
10.3
AED
Billion
CAPEX
Etisalat Group
05
Etisalat Group
07
08
Etisalat Group
09
Board Member
Chairman of Nomination & Remuneration
Committee
Board Member
Member of Nomination & Remuneration
Committee
10
Board Member
Member of Investment & Finance Committee
Board Member
Member of Investment & Finance Committee
Hasan Al Hosani
Company Secretary
Etisalat Group
11
12
Etisalat Group
13
14
Etisalat Group
15
Hatem Dowidar
Mr Hatem Dowidar joined Etisalat Group in September 2015 as Group Chief Operating Officer and
was appointed as Acting Chief Executive Officer of Etisalat Group in March 9, 2016. Prior to joining
Etisalat Group, Mr. Dowidar was latterly Chairman of Vodafone Egypt and Group Chief of Staff
for Vodafone Group. Mr Dowidar has over 24 years of experience in multinational companies. He
initially joined Vodafone Egypt in its early start-up operation in 1999 as Chief Marketing Officer.
After successfully undertaking two group assignments and the role of CEO Vodafone Malta, he
became the CEO of Vodafone Egypt from 2009 - 2014.
Engineer Saleh Al Abdooli was appointed as Chief Executive Officer of Etisalat UAE in April 2012.
A strong and charismatic leader, Saleh rose to international fame after his resounding success
in Egypt as the CEO of Etisalat Misr. He built and launched the first 3G operator in Egypt in 7
months. In less than five years, he achieved 27% of revenue share, 28% market share, 36% EBITDA
margin, and 99% 2G/3G coverage. Mr Abdooli also serves on the Board of Etisalat Misr and
Etisalat Services Holding, Al Abdooli holds Bachelors and Masters in Electrical Eng. and Telecom
from University of Colorado at Boulder, USA.
Serkan Okandan
Abdeslam Ahizoune
Mr. Okandan joined Etisalat in January 2012 as Chief Financial Officer of the Etisalat Group. Prior
to his appointment, he was the Group Chief Financial Officer of Turkcell. Mr. Okandan started
his professional career at PricewaterhouseCoopers in 1992, and worked for DHL and Frito Lay as
a Financial Controller before joining Turkcell. Mr. Okandan is a board member and Chairman of
the audit and risk committee of Etisalat Nigeria, PTCL, Ufone, Etisalat Services Holding, a board
and audit committee member of Maroc Telecom and a board member of Mobily. Mr. Okandan
graduated from Bosphorus University with a degree in Economics.
Mr. Ahizoune has been Chairman of the Maroc Telecom Management Board since February 2001 and
served as CEO from 1998 to 2001. Earlier, he was Minister of Telecommunications in four different
governments. Mr. Ahizoune has been Chairman of the Moroccan Royal Athletics Federation since
2006, and also serves as a board member of several foundations: Inter Alia; King Mohammed V for
solidarity; King Mohammed VI for the environmental protection, and Princess Lalla Salma against
cancer. He is also the Vice-President of CGEM and the President of its Moroccan-Emirati economic
commission. He holds an engineering degree from Tlcom ParisTech.
Abdulaziz Al Sawaleh
Chief Human Resources Officer, Etisalat Group
Mr. Farroukh joined was appointed as CEO of Mobily in July 2015. Prior to joining Mobily, he was
CEO for MTN South Africa. He brings over thirty years of experience across Middle East, Africa,
North America and Europe. Mr. Farroukh began his career in 1983 as the Finance Manager for
Mediterranean Investor Group. After an early career in audit and finance, he joined Investcom in
1996, as Group Finance Controller. He was later appointed as Managing Director for Ghana and
Regional Manager for its West Africa operations. Following Investcoms acquisition by MTN Group,
he served as CEO MTN Nigeria, Vice President West and Central Africa and later chief operating
officer at MTN Group.
Khalifa Al Shamsi
Hazem Metwally
Khalifa Al Shamsi was appointed as Chief Digital Services Officer of the EG in 2012. Prior to
this role, Mr. Al Shamsi held the position of Senior Vice President of Technology Strategy of the
Etisalat Group. Since joining Etisalat in 1993, Mr. Al Shamsi has held various key senior positions
including Vice President and Senior Vice President of Marketing of Etisalat UAE. Mr. Al Shamsi
serves on the Boards of Mobily and Etisalat Afghanistan, Chair E-visions Board and appointed the
Managing Director of Mobily. Mr. Al Shamsi has a Bachelors degree in Electrical Engineering from
the University of Kentucky, USA.
Ahmad Farroukh
Mr. Al Sawaleh is the Chief Human Resources Officer (CHRO) of the Etisalat Group. Prior to this
position, he was the CHRO of Etisalat UAE. Mr. Al Sawaleh has more than 25 years experience
in various leadership positions. He is responsible for leading the global Human Capital strategies
including the areas of talent development, organization effectiveness, compensation & benefits and
Performance Management. Mr.Al Sawaleh is board member of Atlantique Telecom, Etisalat Nigeria,
and Etisalat Services Holding and the Chairman of E Marine Board. Mr. Al Sawaleh holds an MBA
degree in Global Leadership Management from UAE University and a BBA degree from the USA.
16
Saleh Al Abdooli
Mr. Metwally was appointed Chief Executive Officer of Etisalat Misr in October 2015. He started
his telecom career in 1999 in sales distribution and operations focusing on both consumer and
corporate segments. He joined Etisalat Misr in 2006 as Chief Commercial Officer managing
sales, marketing, and customer care functions. In 2012, he was promoted to Chief Operating
Officer expanding his responsibilities to include Carriers Relations and Wholesale Operations. Mr.
Metwally holds a bachelor degree in Telecommunications and Electronics Engineering from Cairo
University.
Etisalat Group
17
Obaid Bokisha
Chief Procurement Officer, Etisalat Group
Obaid Bokisha was appointed as Chief Procurement Officer of the EG in June 2012. Since joining
Etisalat, he was assigned various responsibilities contributed to the network implementation of all existing
systems covering GSM, UMTS, LTE and WiFi networks. Positions held include Vice President Mobile
Networks Planning & Intl Support of Etisalat UAE and Senior Vice President Mobile Networks
Optimization EG.Mr. Bokisha serves on the board of Canar, and Etisalat Nigeria. Mr. Bokisha has a
degree in Communications Engineering from the Etisalat College of Engineering.
Kamal Shehadi was appointed as Chief Legal & Regulatory Officer of EG in November 2012. He
Joined Etisalat in 2010 as Head ofthe Regulatory Department. Prior to that, Dr. Shehadi was the
Chairman and CEO of TRA, Lebanon. He has more than 17 years of experience in consulting and
advisory services for telecom regulatory authorities and telecom service providers.Dr. Shehadi
serves on the board of Atlantique Telecom Holding and Etisalat Nigeria. Dr. Shehadi has a B.A. in
Economics from Harvard University and a PhD in International Political Economy from Columbia
University, USA.
Javier Garcia
Chief Internal Auditor, Etisalat Group
Javier Garcia joined Etisalat in December 2012 as Chief Internal Auditor of the EG. Mr. Garcia
was the head of Internal Audit at Telefonica Group before joining Etisalat. He held various
positions with Telefonica including Business Process Audit Director and Vice President of Internal
Audit (Chile) before becoming the Group Head of Internal Audit. Mr. Garcia serves on the audit
committees of Maroc Telecom, PTCL and Ufone. Mr. Garcia holds a Bachelors in Economics and a
Masters in Financial Markets from the Autonomous University of Madrid.
John Wilkes
Chief Internal Control Officer, Etisalat Group
John Wilkes was appointed as the Chief Internal Control Officer for EG in January 2013. Prior
to this, Mr. Wilkes was the General Manager of Risk & Supply Chain of the Vodafone Hutchison
Company. He has more than 24 years of experience in companies such as KPMG Air in New
Zealand where he was the Group Internal Auditor and Stockland in Australia where he held the
position of Chief Risk Officer. Mr. Wilkes is a qualified chartered accountant.
Hatem Bamatraf
Chief Technology Officer at Etisalat Group
Mr. Hatem Bamatraf was appointed Chief Technology Officer at Etisalat Group in September
2013. Prior to this position he wasthe Executive Vice President of Enterprise Business at Du.
Hatem began his professional career in 1995 at Etisalat and was seconded to Mobily in 2004
as Director of Mobile Network Development in the Central Region, KSA. Mr. Bamatraf serves
on the boards of Etisalat Afghanistan and Etisalat Sri Lanka and is the chairman of the Board
of Technologia. He graduated from the Etisalat College of Engineering and holds a bachelors
degree in Engineering.
18
Etisalat Group
19
One
Company
Vision
To be the leading
and most admired
emerging markets
telecom group
People
& culture
Mission
Provide best in class total
customer experience for
retail and business
Operational
Excellence
Portfolio
Support economic
development and job
creation through ICT
& socially responsible
behavior
Customer
Experience
Service
offering
20
Etisalat Group
21
January 2015
August 2015
March 2015
Sign 5G agreement
Etisalat Group and Ericsson signs strategic partnership to develop the next
generation of mobile technology - 5G. The partnership will tap into the
potential of the 450Mbps LTE speed. Etisalat UAE has already demonstrated
115Gbps data transmission rate capability as part of the development of 5G.
April 2015
4G licence in Morocco
In Morocco, Maroc Telecom was awarded a 20-year 4G license for MAD
1 billion.
Tap Issuance of USD 400 million
Etisalat Group successfully completes the tap issuance of US$400 million
notes under its US$7bn GMTN Program.
June 2015
Government approves foreign ownership
The UAE Federal Government approves lifting the restriction on foreign
ownership of Etisalat shares to local institutions, foreign institutions and
expatriate individuals up to a limit of 20%.
July 2015
Credit Ratings affirmed
The three Credit Ratings Agencies Standards & Poors, Moodys and Fitch
affirmed Etisalat high credit rating at AA-/Aa3/A+ with stable outlook
Etisalat Group launches regions first Internet of Things platform
Etisalat Group announced the launch of the regions first Internet of Things
(IoT) application allowing customers to develop and deploy innovative new
IoT solutions for the growing Machine-to-Machine (M2M) market.
September 2015
Foreign and institutional investors effective trading
date in Etisalat Share
Ownership of Etisalat share by foreign investors and local
institutions became effective on 15 September 2015.
October 2015
Etisalat Group completes the sale of Zantel
Etisalat Group completes the sale of Etisalats shareholdings of
85% in Zanzibar Telecom Limited (Zantel) to Millicom.
Fixed-network infrastructure sharing in the UAE
Etisalat UAE implemented phase I of fixed-network
infrastructure sharing in the UAE.
November 2015
Etisalat Inclusion in MSCI Index
Equity index compiler MSCI announced the inclusion of
Etisalat in the MSCI Emerging Markets Index post the close of
business day of 30 November 2015.
December 2015
License Renewal/Acquisition in Niger and Ivory Coast
Maroc Telecom Group renewed/acquired 2G/3G licenses
in Niger and granted universal license in Ivory Coast.
22
Etisalat Group
23
Subscribers
167
2015
167
2014
EBITDA
increase. Total broadband segment grew by
8% year on year to 1.1 million subscribers.
In the international operations, Maroc
Telecom evidenced strong subscriber
growth in the year with year over year
growth of 26% by adding 10.6 million net
additions and closing the year with 50.8
million subscribers. This growth is mainly
attributable to the acquired operations
of Atlantique Telecom and the operations
in Morocco, Mauritania and Burkina
Faso. Nigeria, despite disconnected sim in
compliance with the regulator mandated
registration process, grew subscriber base
to 22.2 million representing year over
year growth of 5%. In Pakistan, subscriber
base declined by 9% year over year to
24.0 million impacted by the biometric
verification process mandated by the
industry regulator
26.5
23.2
2014
2015
Revenues
8.6
8.3
99
95
2015
2015
2014
48.5
2014
51.7
24
Etisalat Group
25
CAPEX
8.9
2014
10.3
2015
DEBT
22.2
22.1
2014
2015
26
(AED m)
2014
2015
Revenue
48,508
51,737
EBITDA
23,212
26,526
EBITDA Margin
48%
51%
Federal Royalty
5,306
6,056
Net Profit
8.601
8,263
18%
16%
2014
2015
18,543
21,422
Total Assets
128,109
128,265
Total Debt
22,229
22,080
Net Debt
(3,686)
(658)
Total Equity
60,214
59,375
2014
2015
(AED m)
Operating
17,209
20,425
Investing
(24,102)
(9,349)
Financing
9,162
(8,108)
2,268
2,967
834
(9)
(9)
(78)
18,543
21,422
Etisalat Group
27
Afghanistan
Pakistan
Egypt
Sri Lanka
Middle East
28
Asia
Africa
Operator
Country
Etisalat
United Arab Emirates
PTCL/Ufone
Pakistan
Maroc Telecom
Morocco
Onatel
Burkina Faso
Moov
Ivory coast
Moov
Niger
Licence Type:
Etisalat Ownership
Population: (million)
Penetration
Number of operators
Mobile, Fixed
48%
34
Mobile: 127% Fixed: 8%
3
Mobile
41%
23
106%
5
Mobile
48%
18
38%
4
Operator
Country
Etisalat
Afghanistan
Etisalat
Nigeria
Moov
Central Afriacn Republic
Sotelma
Mali
Canar
Sudan
Licence Type:
Etisalat Ownership
Population: (million)
Penetration
Number of operators
Mobile
100%
33
80%
Mobile 4
Mobile
40%
182
77%
Mobile 4
Mobile
48%
5
26%
4
Fixed
92%
40
1%
Fixed 2
Operator
Country
Etisalat Misr
Egypt
Etisalat
Sri Lanka
Moov
Benin
Mauritel
Mauritania
Moov
Togo
Licence Type:
Etisalat Ownership
Population: (million)
Penetration
Number of operators
Mobile
100%
21
126%
Mobile 5
Mobile
48%
11
83%
5
Mobile
46%
7
65
2
Etisalat Group
29
9.7 million
Mobile
Subscribers
28.8 AED
Billion Revenue
16.3 AED
0.9 million
Landline
Subscribers
Billion EBITDA
57%
EBITDA Margin
7.3 AED
1.1 million
Fixed Broadband
Subscribers
30
4.9 AED
Billion CAPEX
Etisalat Group
31
Etisalat Group
33
14.4 SAR
Billion Revenue
2.9 SAR
Billion EBITDA
3.4 SAR
Billion CAPEX
by enabling young Saudi entrepreneurs
to pitch their business ideas to public
and potential investors. To similar ends,
Mobily actively worked on increasing its
nationalization rate and developing fresh
Saudi graduates. In addition, Mobily has
introduced Mobily Elite as the Companys
flagship development program, which aims
to attract and develop outstanding young
Saudi talents.
To promote Global Family synergy, Mobily is
actively participating in various initiatives
which improve efficiency, reduce costs,
and stimulate revenue with the Etisalat
Group. In 2015, among other things, Mobily
sought and benefited from Etisalat Group
expertise in reviewing, restructuring and insourcing of Customer Value Management
(CVM) campaigns to increase marketing
efficiency and performance.
Etisalat Group
35
9.5 EGP
Billion Revenue
3.6 EGP
Billion EBITDA
1.9 EGP
Billion CAPEX
years, which is why the successful launch
of the channel serving social media has
resulted in multiple ongoing improvements.
EMs response time reached two minutes and
Facebook service levels for all cases were
met to 100% satisfaction. In fact, EM was
officially recognized for the success of our
social media initiatives: we were named the
most socially devoted service provider for
2015, we achieved second and third place
for growth rate and audience respectively
on Facebook, and second place for both
audience and growth rate on Twitter.
Beyond these specifically mobile-based
services and technologies, EM also released
two other initiatives in 2015: eCloud hosted
services and a machine-to-machine inhouse platform for SIM management.
eCloud securely delivers hosted services (like
storage, software applications, and software
development platforms) over the Internet. It
includes both SaaS (software as a service) and
Etisalat Group
37
47.7 million
Mobile
Subscribers
34.1 MAD
Billion Revenue
1.9 million
Landline
Subscribers
16.7 MAD
Billion EBITDA
49%
EBITDA Margin
5.6 MAD
1.2 million
Broadband
Subscribers
Net Profit
8.8 MAD
Billion CAPEX
38
Etisalat Group
39
40
Etisalat Group
41
227.6 NGN
Billion Revenue
41.7 NGN
Billion EBITDA
60.2 NGN
Billion CAPEX
Etisalat Group
43
20 million
Mobile
Subscribers
118.6 PKR
Billion Revenue
36.2 PKR
Billion EBITDA
4 million
Landline
Subscribers
31%
EBITDA Margin
1.9 PKR
Billion Net Profit
28.9 PKR
Billion CAPEX
44
Etisalat Group
45
Etisalat Group
47
ETISALAT
(EFM)
FACILITIES
MANAGEMENT
E-MARINE
E-marine is the trusted principal provider of
submarine cable solutions in the Middle East
and the Sub-Continent and is committed
to the expansion and advancement of the
region. In keeping with this, it added a new
cable ship, the CS MARAM, to help maintain
TAMDEED PROJECTS
Etisalat Group
49
Etisalat Group
51
Etisalat Group
53
Etisalat Group
55
Etisalat Group
57
Board of Directors:
The Board of Directors exercises all the
powers required to carry out Companys
business as mandated in its objects, unless
a Special Resolution passed to the contrary
by the General Assembly or otherwise
is explicitly stated in the Company Law
or Articles of Association. The Board of
Directors of Etisalat currently consists of
eleven members. Seven Board Members,
including the Chairman of the Board, were
appointed by virtue of Federal Decree No.
58
Audit Committee:
The Audit Committee undertakes its duties
in accordance with its Charter, which
complies with the Ministerial Resolution
for
Etisalat Group
59
Opinion
In our opinion, the consolidated financial
statements present fairly, in all material
respects, the financial position of the
Group as at 31 December 2015 and its
financial performance and its cash flows
for the year then ended in accordance
with International Financial Reporting
Standards.
Report on other legal and regulatory
requirements
60
Etisalat Group
61
Consolidated statement of profit or loss for the year ended 31 December 2015
Consolidated statement of comprehensive income for the year ended 31 December 2015
Notes
2015
AED000
Continuing operations
Revenue
51,737,018
48,508,398
(33,048,845)
(31,705,838)
(995,330)
(931,963)
13
(315,929)
(639,173)
2014
(Restated)
AED000
9,510,918
9,562,546
(55,432)
(141,596)
(3,248,799)
(2,445,629)
1,255,830
1,301,869
(172,162)
(27,969)
295,964
(16,076)
(284,991)
(1,940,675)
(1,598,316)
7,570,243
7,964,230
7,674,508
7,723,284
Non-controlling interests
(104,265)
240,946
7,570,243
7,964,230
7,964,230
Notes
Prot for the year
Operating expenses
Share of results of associates and joint ventures
2015
AED000
2014
(Restated)
AED000
Operating prot
17,376,914
15,231,424
(6,054,976)
(5,305,530)
11,321,938
9,925,894
916,078
2,652,927
(1,212,177)
(1,736,288)
11,025,839
10,842,533
(1,277,590)
(1,165,325)
9,748,249
9,677,208
(237,331)
(114,662)
9,510,918
9,562,546
8,262,756
8,601,086
Non-controlling interests
1,248,162
961,460
9,510,918
9,562,546
AED 0.95
AED 0.99
35
22
34
28
Attributable to:
Chairman
The accompanying notes on pages 67 to 121 form an integral part of these consolidated financial statements.
The Independent Auditors report is set out on page 61
62
Board Member
The accompanying notes on pages 67 to 121 form an integral part of these consolidated financial statements.
The Independent Auditors report is set out on page 61
Etisalat Group
63
Consolidated statement of changes in equity for the year ended 31 December 2015
2015
Notes
AED000
2014
(Restated)
AED000
2013
(Restated)
AED000
Non-current assets
Goodwill
14,577,512
15,690,382
5,552,266
17,193,072
19,094,776
9,447,281
10
46,269,981
45,972,612
31,319,161
Investment property
11
39,357
41,378
41,211
14
4,648,888
4,969,044
6,491,053
Other investments
15
812,338
983,997
866,984
Other receivables
18
213,645
240,066
595,981
22
675,412
293,584
16
1,232,884
2,390,194
2,390,194
308,734
317,383
243,042
89,993,416
56,947,173
85,971,823
Current assets
Inventories
17
774,089
624,652
498,232
18
18,215,158
17,318,579
10,613,248
703,089
637,299
503,396
16
565,804
459,855
683,833
15
448,448
19
21,422,354
18,542,859
15,450,248
41,680,494
37,583,244
28,197,405
532,757
35
Total assets
612,230
128,264,547
128,109,417
85,144,578
20
1,533,176
1,075,481
828,565
Non-current liabilities
Other payables
Notes
Balance at 1 January 2014 (as
previously reported)
Effects of restatement
Balance at 1 January 2014 (as
restated)
1,404,543
23
3,213,147
3,133,794
2,963,623
320,115
369,379
185,812
24
7,070
6,983
2,564
Provisions
25
1,918,844
1,976,404
1,172,286
42,344,526
39,867,123
26,703,396
326
356
682
8,159,944
8,159,944
12
12
33
(150,933)
(150,933)
1,791,831
1,791,831
(1,392,078)
(6,923,982)
7,674,508
770
770
16,362
17,132
(575,277)
28
881,313
36
(162,993)
Acquisition of non-controlling
interests
Repayment contribution of equity
contribution to non-controlling
interests for acquisition of a
subsidiary
(881,313)
-
790,614
(790,614)
Dividends
33
(6,243,152)
8,696,754
27,583,414
7,208,883
7,570,243
115,450
(47,543)
(434)
(5,664)
(6,098)
(209,094)
(209,094)
27
(104,265)
(162,993)
(434)
(5,531,904)
(18,364)
8,249,785
(5,531,904)
132,569
60,214,472
Disposal of a subsidiary
20,974,568
326
(18,241)
17,994,120
3,609,711
7,964,230
42,220,352
2,460
30,770,852
240,946
6,873,841
17,283
4,199,637
7,723,284
27,440,371
10,934
32,685,713
8,568,134
7,906,140
24
21
49,240,131
20
9,060,552
60,214,472
1,721,291
Borrowings
40,179,579
17,994,120
4,006,459
42,220,352
4,702,839
9,201,051
(352,565)
6,873,841
1,607
27,523,037
49,592,696
27,440,371
4,015,579
26,253,770
(844,850)
(352,565)
9,060,552
AED000
7,906,140
Current liabilities
40,532,144
AED000
22
201,089
28,266,980
(352,565)
AED000
Total
equity
1,911,773
7,906,140
4,359,024
Owners' Non-controlling
equity
interests
68,751
126,736
4,467,122
2,044,540
936,699
207,808
28,266,980
Acquisition of a subsidiary
18,619,459
1,910,480
7,906,140
693,661
25
AED000
18,241
17,880,525
26
AED000
21
Provisions
AED000
23
Retained
earnings
Borrowings
Reserves
Transfer to reserves
38
Share capital
(6,243,152)
43,489,051
(1,920,861)
15,886,048
(8,164,013)
59,375,099
35
291,152
504,785
Total liabilities
68,889,448
67,894,945
35,904,447
Net assets
59,375,099
60,214,472
49,240,131
Equity
Share capital
27
8,696,754
7,906,140
7,906,140
Reserves
28
27,583,414
27,440,371
28,266,980
Retained earnings
7,208,883
Total equity
43,489,051
12
6,873,841
4,006,459
42,220,352
40,179,579
15,886,048
17,994,120
9,060,552
59,375,099
60,214,472
49,240,131
Chairman
The accompanying notes on pages 67 to 121 form an integral part of these consolidated financial statements.
The Independent Auditors report is set out on page 61
64
Board Member
The accompanying notes on pages 67 to 121 form an integral part of these consolidated financial statements.
The Independent Auditors report is set out on page 61
Etisalat Group
65
Notes
2015
AED000
11,087,406
2014
(Restated)
AED000
9,834,941
Depreciation
10, 11
5,837,793
5,163,502
Amortisation
1,828,310
1,694,716
9,10
995,330
931,963
13
315,929
639,173
886,745
1,079,753
(84,654)
(21,694)
20,866,859
19,322,354
Inventories
(176,155)
51,816
(104,283)
223,979
(1,904,834)
(2,560,729)
Consolidated statement of cash flows for the year ended 31 December 2015
26
3,952,581
3,143,763
22,634,168
20,181,183
(1,762,003)
(2,266,300)
(447,245)
(706,363)
20,424,920
17,208,520
(33,792)
486,928
(22,756)
(8,779,322)
(6,874,794)
196,558
239,141
(1,529,228)
(2,038,764)
127,329
25
(3,457,471)
(962,898)
7,800
797,559
(99,956)
783,982
(18,660,985)
(18,370)
1,966,853
(12,806,856)
(25,065,305)
5,694,619
34,636,255
19
30
(4,186,981)
(18,608,720)
(209,094)
(8,164,013)
1,813,528
(6,923,982)
(1,242,993)
(1,755,522)
(8,108,462)
9,161,559
(490,398)
1,304,774
6,052,923
3,914,295
(9,225)
833,854
6,052,923
19
5,553,300
During the year, the Group concluded the swap of its entire stake in one of the available for sale financial assets with the stake of one of the minority shareholders in Canar and the
derecognition of the spectrum in PTCL, having a non cash impact of AED 6.1 million and AED 80 million respectively, which have been reflected as non-cash transactions in the consolidated
statement of cash flows for the year ended 31 December 2015.
Certain fixed deposits having maturities greater than three months have been excluded from cash and cash equivalents and the comparative figures have accordingly been reclassified
(refer note 19).
The accompanying notes on pages 67 to 121 form an integral part of these consolidated financial statements.
The Independent Auditors report is set out on pages 61
66
Notes to the consolidated financial statements for year ended 31 December 2015
1. General information
The Emirates Telecommunications Group
(the Group) comprises the holding company Emirates Telecommunications Group
Company PJSC (the Company), formerly
known as Emirates Telecommunications
Corporation (Corporation) and its subsidiaries. The Corporation was incorporated in
the United Arab Emirates (UAE), with limited liability, in 1976 by UAE Federal Government decree No. 78, which was revised
by the UAE Federal Act No. (1) of 1991 and
further amended by Decretal Federal Code
No. 3 of 2003 concerning the regulation of
the telecommunications sector in the UAE.
In accordance with Federal Law No. 267/10
for 2009, the Federal Government of the
UAE transferred its 60% holding in the Corporation to the Emirates Investment Authority with effect from 1 January 2008, which
is ultimately controlled by the UAE Federal
Government.
In accordance with the Decree by Federal
Law no. 3 of 2015 amending some provisions
of the Federal Law No. 1 of 1991 (the New
Law) and the new articles of association of
Emirates Telecommunications Group Company PJSC (the New AoA), Emirates Telecommunications Corporation has been converted
from a corporation to a public joint stock
company and subject to the provisions of
UAE Federal Law no. 2 of 2015 on Commercial Companies (the Companies Law) unless
otherwise stated in the New Law or New AoA.
Accordingly, the name of the corporation
has been changed to Emirates Telecommunications Group Company PJSC. The new law
introduces two new types of shareholders relating to government shareholders, a Special
Shareholder and a Government Shareholder.
Under the new law, the Company may issue
different classes of shares, subject to the approval of the Special shareholder. The new
law reduces the minimum number of shares
held by any UAE government entity in the
Company from owning at least 60% shares
in the Companys share capital to an ownership of not less than 51%, unless the Special Shareholder decides otherwise. Under
the new Law, foreign shareholders (whether
natural or legal / judicial persons) may own
up to 20% of the Companys ordinary shares
provided that shares owned by such foreign
persons / entities shall not hold any voting
Basis of preparation
The consolidated financial statements
of the Group have been prepared in
accordance with International Financial
Reporting Standards (IFRS) applicable
to companies reporting under IFRS and
the applicable provisions of UAE Fderal
Law No. (2) of 2015. The preparation of
financial statements in conformity with
IFRS requires the use of certain critical
accounting estimates. It also requires
management to exercise its judgement
in the process of applying the Groups
accounting policies. The areas involving a
higher degree of judgement or complexity,
or areas where assumptions and estimates
are significant to the consolidated
financial statements are disclosed in note
3. The consolidated financial statements
are prepared under the historical cost
convention except for the revaluation
of certain financial instruments and in
accordance with the accounting policies
set out herein.
Etisalat Group
67
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
At the date of the consolidated financial statements, the following Standards, Amendments and Interpretations have not been
effective but have not been early adopted:
Effective date
IFRS 9 Financial Instruments (revised versions in 2009, 2010, 2013 and 2014)
1 January 2018
Amendment to IFRS 7 Financial Instruments: Disclosures relating to transition to IFRS 9 (or otherwise when IFRS 9
is first applied)
1 January 2016
IFRS 7 Financial Instruments: Disclosures relating to the additional hedge accounting disclosures (and consequential
amendments) resulting from the introduction of the hedge accounting chapter in IFRS 9
1 January 2016
Amendments to IAS 16 and IAS 38 - Clarification of acceptable methods of depreciation and amortisation
1 January 2016
1 January 2016
1 January 2018
Amendment to IAS 27 Separate Financial Statements (as amended in 2011) relating to reinstating the equity
method as an accounting option for investments in in subsidiaries, joint ventures and associates in an entitys separate financial statements
1 January 2016
Annual Improvements to IFRSs 2012 - 2014 Cycle covering amendments to IFRS 5, IFRS 7, IAS 19 and IAS 34
1 January 2016
Amendments to IFRS 10 and IAS 28 clarify that the recognition of the gain or loss on the sale or contribution of
assets between an investor and its associate or joint venture depends on whether the assets sold or contributed
constitute a business
1 January 2016
IFRS 16 Leases
1 January 2019
IAS 1 Presentation of Financial Statements: Amendments resulting from the disclosure initiative
1 January 2016
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures
(2011) relating to the treatment of the sale or contribution of assets from and investor to its associate or joint venture 2.3
Management anticipates that the application of the above Standards and Interpretations in future periods will have no material
impact on the consolidated financial statements of the Group in the period of initial application with the exception of IFRS
15 Revenue From Contracts with Customers, IFRS 9 Financial Instruments and IFRS 16 Leases which management is currently
assessing. However, it is not practicable to provide a reasonable estimate of effects of the application of these standards until the
Group performs a detailed review.
Basis of consolidation
These consolidated financial statements
incorporate the financial statements of the
Company and entities controlled by the
Company. Control is achieved when the
Group has:
are
consolidated
from
Business combinations
The acquisition of subsidiaries is accounted
for using the acquisition method. The
cost of an acquisition is measured as the
aggregate of the fair value, at the date
of exchange, of the assets given, equity
instruments issued and liabilities incurred
or assumed. The acquirees identifiable
assets and liabilities that meet the
conditions for recognition under IFRS 3
Business Combinations are recognised at
their fair values at the acquisition date.
Acquisition-related costs are recognised
in the consolidated statement of profit or
loss as incurred.
Goodwill arising on acquisition is
recognised as an asset and initially
measured at cost, being the excess of
the cost of the business combination
over the Groups interest in the net fair
value of the identifiable assets, liabilities
and contingent liabilities recognised. If,
after reassessment, the Groups interest
in the acquisition-date net fair value
of the acquirees identifiable assets and
liabilities exceeds the cost of the business
combination, the excess is recognised
immediately in the consolidated statement
of profit or loss.
The non-controlling interest in the acquire
is initially measured at the minoritys
proportion of the net fair value of the
assets, liabilities and contingent liabilities
recognised.
Step acquisition
If the business combination is achieved
in stages, the acquisition date carrying
value of the acquirers previously held
equity interest in the acquire is remeasured to fair value at the acquisition
date; any gains or losses arising from
such re-measurement are recognised in
the consolidated statement of profit or
loss. Amounts arising from interests in the
acquire prior to the acquisition date that
have previously been recognised in other
comprehensive income are reclassified
to profit or loss where such treatment
Revenue
Revenue is measured at the fair value of
the consideration received or receivable
and represents amounts receivable for
telecommunication products and services
provided in the normal course of business.
Revenue is recognised, net of sales taxes,
discounts and rebates, when it is probable
that the economic benefits associated with
a transaction will flow to the Group and
the amount of revenue and associated cost
can be measured reliably. Revenue from
telecommunication services comprises
amounts charged to customers in respect
of monthly access charges, airtime usage,
messaging, the provision of other mobile
telecommunications services, including
data services and information provision
and fees for connecting users of other
fixed line and mobile networks to the
Groups network.
Access charges and airtime used by
contract customers are invoiced and
recorded as part of a periodic billing cycle
and recognised as revenue over the related
access period, with unbilled revenue
resulting from services already provided
from the billing cycle date to the end of
each period accrued and unearned revenue
from services provided in periods after
each accounting period deferred.
Etisalat Group
69
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
Revenue (continued)
Leasing
ii) Consolidation
On consolidation, the assets and liabilities
of the Groups foreign operations are
translated into UAE Dirhams at exchange
rates prevailing on the date of end of each
reporting period. Goodwill and fair value
adjustments arising on the acquisition
of a foreign entity are also translated at
exchange rates prevailing at the end of each
reporting period. Income and expense items
are translated at the average exchange
rates for the period unless exchange rates
fluctuate significantly during that period,
in which case the exchange rates at the
date of transactions are used. Exchange
differences are recognised in other
comprehensive income and are presented
in the translation reserve in equity. On
disposal of overseas subsidiaries or when
significant influence is lost, the cumulative
translation differences are recognised as
income or expense in the period in which
they are disposed of.
Foreign currencies
i) Functional currencies
Borrowing costs
Borrowing costs directly attributable to
the acquisition, construction or production
of qualifying assets, which are assets that
necessarily take a substantial period of
time to get ready for their intended use
or sale, are added to the cost of those
assets, until such time as the assets are
substantially ready for their intended use
or sale.
Investment income earned on the
temporary
investment
of
specific
borrowings pending their expenditure on
qualifying assets is deducted from the
borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in
the consolidated statement of profit or loss
in the period in which they are incurred.
Government grants
Government grants relating to nonmonetary assets are recognised at nominal
value. Grants that compensate the
Group for expenses are recognised in the
consolidated statement of profit or loss on
a systematic basis in the same period in
which the expenses are recognised. Grants
that compensate the Group for the cost of
an asset are recognised in the consolidated
statement of profit or loss on a systematic
basis over the expected useful life of the
related asset upon capitalisation.
Taxation
The tax expense represents the sum of the
tax currently payable and deferred tax.
The tax currently payable is based on
taxable profit for the year. Taxable profit
differs from profit as reported in the
consolidated statement of profit or loss
because it excludes items of income or
expense that are taxable or deductible
in other periods and it further excludes
items that are never taxable or deductible.
The Groups liability for current tax is
calculated using tax rates that have been
enacted or substantively enacted by end of
the reporting period.
Deferred tax is the tax expected to be
payable or recoverable on differences
between the carrying amounts of assets
and liabilities in the financial statements
and the corresponding tax bases used in
the computation of taxable profit, and is
accounted for using the liability method.
Deferred tax is calculated using relevant
tax rates and laws that have been enacted
or substantially enacted by the reporting
date and are expected to apply when the
related deferred tax asset is realised or the
deferred tax liability is settled.
Deferred tax is charged or credited in the
consolidated statement of profit or loss,
except when it relates to items charged or
credited directly to equity, in which case
the deferred tax is also dealt with in equity.
Etisalat Group
71
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
Assets in the course of construction are carried at cost, less any impairment. Cost includes professional fees and, for qualifying assets,
borrowing costs capitalised in accordance with the Groups accounting policy. Depreciation of these assets commences when the assets
are ready for their intended use.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All
other repairs and maintenance costs are charged to consolidated statement of profit or loss during the period in which they are incurred.
Other than land (which is not depreciated), the cost of property, plant and equipment is depreciated on a straight line basis over the
estimated useful lives of the assets as follows:
Buildings:
Permanent the lesser of 20 30 years and the period of the land lease.
Temporary the lesser of 4 10 years and the period of the land lease.
Years
20
10
coaxial cables
Cable ships
15
15 25
Line plant
15 25
Exchanges
5 10
Switches
Radios/towers
15
10 15
Earth stations/VSAT
Multiplex equipment
5 10
10
Power plant
57
Subscribers apparatus
35
(II) Licenses
General plant
27
Other assets:
Motor vehicles
Computers
4-6
The assets residual values and useful lives are reviewed and adjusted, if appropriate, at the end of the reporting period.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognised in the consolidated statement of profit or loss.
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is carried at cost less accumulated depreciation
and impairment loss. Investment properties are depreciated on a straight-line basis over the lesser of 20 years and the period of the lease.
Intangible assets
(i) Goodwill
Goodwill arising on consolidation represents the excess of the cost of an acquisition over the fair value of the Groups share of net
72
(III) Internally-generated
intangible assets
An internally-generated intangible asset
arising from the Groups IT development
is recognised at cost only if all of the
following conditions are met:
Inventory
Inventory is measured at the lower of cost
and net realisable value. Cost comprises
direct materials and where applicable,
directs labour costs and those overheads
that have been incurred in bringing the
inventories to their present location
and condition. Allowance is made,
where appropriate, for deterioration
and obsolescence. Cost is determined in
accordance with the weighted average
cost method. Net realisable value
represents the estimated selling price less
all estimated costs of completion and costs
to be incurred in marketing, selling and
distribution.
Etisalat Group
73
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
Financial instruments
Financial assets and financial liabilities
are recognised in the consolidated
statement of financial position when the
Group becomes a party to the contractual
provisions of the instrument.
i) Fair value
Financial assets and financial liabilities are
initially measured at fair value The fair
values of financial assets and financial
liabilities are determined as follows:
iv) Held-to-maturity
investments
Bonds and Sukuk bonds with fixed or
determinable payments and fixed maturity
dates that the Group has the positive
intent and ability to hold to maturity are
classified as held-to-maturity investments.
Held-to-maturity investments are recorded
at amortised cost using the effective
interest method less any impairment,
with revenue recognised on an effective
yield basis. The Group considers the credit
risk of counterparties in its assessment of
whether such financial instruments are
impaired.
74
v) Available-for-sale financial
assets (AFS)
Listed securities held by the Group that are
quoted in an active market are classified
as being AFS and are stated at fair value
at the end of each reporting period. Gains
and losses arising from changes in fair
value are recognised directly in equity
in the investment revaluation reserve
with the exception of impairment losses,
interest calculated using the effective
interest method and foreign exchange
gains and losses on monetary assets, which
are recognised directly in profit or loss.
Where the investment is disposed of or is
determined to be impaired, the cumulative
gain or loss previously recognised in the
investments revaluation reserve is included
in the consolidated statement of profit or
loss.
Dividends on AFS equity instruments are
recognised in the consolidated statement
of profit or loss when the Groups right to
receive the dividends is established.
The fair value of AFS monetary assets
denominated in a foreign currency is
determined in that foreign currency and
translated at the exchange rate prevailing
vi) Loans and receivables
Trade receivables, loans and other
receivables that have fixed or determinable
payments that are not quoted in an
active market are classified as loans
and receivables. Loans and receivables
are recognised initially at fair value and
subsequently measured at amortised cost
using the effective interest method less
impairment. Interest income is recognised
by applying the effective interest rate,
except for short-term receivables when
the recognition of interest would be
immaterial.
Appropriate allowances for estimated
irrecoverable amounts are recognised in
the consolidated statement of profit or
loss where there is objective evidence
that the asset is impaired. The allowance
recognised is measured as the difference
between the assetss carrying amount and
the present value of estimated future cash
flows discounted at the effective interest
rate computed at initial recognition.
The allowance for doubtful debts reflects
estimates of losses arising from the failure
x) Financial liabilities at
FVTPL
Financial liabilities are classified as at
FVTPL where the financial liability is
either held for trading or it is designated
as such. A financial liability is classified
as held for trading if it has been incurred
principally for the purpose of disposal in
the near future or it is a derivative that is
not designated and effective as a hedging
instrument. Financial liabilities at FVTPL
are stated at fair value, with any resultant
gain or loss recognised in the consolidated
statement of profit or loss.
Etisalat Group
75
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
xvii) Derecognition of
financial assets
The Group derecognises a financial asset
only when the contractual rights to
the cash flows from the asset expire;
or it transfers the financial asset or
substantially all the risk and rewards of
ownership to another entity. If the Group
neither transfer nor retains substantially
all the risks and reward of ownership and
continues to control the transferred asset,
the Group recognises its retained interest
in the asset and associated liability for
amounts it may have to pay. If the Group
retains substantially all the risks and
rewards of ownership of a transferred
financial asset, the Group continues to
recognise the financial asset and also
recognises a collateralised borrowing for
the proceeds received.
Provisions
Provisions are recognised when the Group
has a present obligation as a result of a past
event, and it is probable that the Group
will be required to settle that obligation.
Provisions are measured at the directors
best estimate of the expenditure required
to settle the obligation at the reporting
date, and are discounted to present value
where the effect is material.
(ii)
part of a portfolio of identified
financial instruments that are
managed together and for which
there is evidence of a recent actual
pattern of short-term profit taking;
or
Dividends
b)
Upon initial recognition it is
designated by the entity as at fair
value through profit or loss (FVTPL).
An entity may use this designation
only when doing so results in
76
3. Critical accounting
judgements and key sources
of estimation uncertainty
In the application of the Groups
accounting policies, which are described in
Note 2, the directors are required to make
judgements, estimates and assumptions
about the carrying amounts of assets and
liabilities that are not readily apparent
from other sources. The estimates and
associated assumptions are based on
historical experience and other factors
that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in
the period in which the estimate is revised
if the revision affects only that period or
in the period of the revision and future
periods if the revision affects both current
and future periods.
The key assumptions concerning the
future, and other key sources of estimation
uncertainty at the reporting date, that
have a significant risk of causing a material
adjustment to the carrying amounts
of assets and liabilities within the next
financial year, are disclosed below.
vii) Classification of
associates, joint ventures
and subsidiaries
The appropriate classification of certain
investments as subsidiaries, associates
and joint ventures requires significant
analysis and management judgement as
to whether the Group exercises control,
significant influence or joint control
over these investments. This may involve
consideration of a number of factors,
including ownership and voting rights,
the extent of Board representation,
contractual arrangements and indicators
of defacto control.
Etisalat Group
77
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
x) Valuation of derivative
financial instruments
The fair values of derivative financial
instruments measured at fair value or
generally obtained by reference to quoted
market prices, discounted cash flow
models and recognized pricing models
as appropriate. Information about the
valuation techniques and inputs used in
determining the fair value of derivative are
disclosed in note 22.
4.Segmental information
Information regarding the Groups
operating segments is set out below
in accordance with IFRS 8 Operating
Segments. IFRS 8 requires operating
segments to be identified on the basis
of internal reports that are regularly
reviewed by the Groups chief operating
decision maker and used to allocate
resources to the segments and to assess
their performance.
78
Pakistan
Egypt
Morocco
International - others
c) Segment assets
For the purposes of monitoring
segment performance and allocating
resources between segments, the
Board of Directors monitors the
tangible, intangible and financial assets
attributable to each segment. All assets
are allocated to reportable segments.
Goodwill is allocated based on separately
identifiable CGUs as further disclosed in
Note 9. Assets used jointly by reportable
segments are allocated on the basis
of the revenues earned by individual
reportable segments.
The segment information has been
provided on the following page.
International
UAE
AED000
Morocco
AED000
Egypt
AED000
Pakistan
AED000
Others Eliminations
AED000
AED000
Consolidated
AED000
29,473,205
7,926,522
4,509,866
4,178,315
5,649,110
369,406
78,901
33,636
58,053
274,691
(814,687)
Total revenue
29,842,611
8,005,423
4,543,502
4,236,368
5,923,801
(814,687)
51,737,018
Segment result
14,068,713
2,784,764
774,020
41,383
(291,966)
17,376,914
31 December 2015
Revenue
External sales
Inter-segment sales
Federal royalty
51,737,018
(6,054,976)
916,078
(1,212,177)
(1,212,177)
11,025,839
Taxation
Profit for the year from continuing operations
(1,277,590)
9,748,249
Total assets
57,168,689 32,604,589
12,982,700
Non-current assets *
25,299,915 29,643,138
11,062,738
17,151,841
19,909,477 20,869,205
(15,270,113)
128,264,547
14,860,508 (13,030,463)
84,987,677
1,930,585
2,045,383
870,844
1,188,459
1,545,283
7,580,554
947,274
5,627
42,429
995,330
4,814,366
29,983
4,844,349
834,616
4,436,395
282,143
4,718,537
126,921
5,394,001
180,219
5,574,220
(965,193)
(980,051)
(980,051)
-
20,967,801 (13,656,100)
15,688,048 (9,694,741)
899,543
931,963
-
48,508,398
48,508,398
15,231,424
(5,305,530)
2,652,927
(1,736,288)
10,842,533
(1,165,325)
9,677,208
128,109,417
89,382,449
6,768,761
931,963
2015
AED million
24,724
5,119
29,843
2014
AED million
23,741
4,511
28,252
2015
AED000
-
2014
AED000
540,328
8,014
6,818
40,042
384,817
13,727,236 20,868,347
11,988,655 18,103,605
926,980
1,079,446
-
295,964
651,310
995,330
931,963
In May 2014, the Group acquired 53% stake in Maroc Telecom. Maroc Telecom is accordingly consolidated in the Group consolidated financial
statements from the date of acquisition.
Accordingly, the comparatives for the year ended 31 December 2014 include the results of operations relating to Maroc Telecom with effect from
the date of acquisition.
* Non-current assets exclude derivative financial assets and deferred tax assets.
Etisalat Group
79
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
2015
AED000
435,651
2014
(Restated)
AED000
431,990
527,332
662,069
Other costs
215,896
620,964
33,298
21,265
1,212,177
1,736,288
1,240,819
1,762,788
AED000
2014
(Restated)
AED000
11,112,853
10,294,285
Staff costs
5,433,064
6,192,735
5,772,304
5,092,328
Unwinding of discount
2,974,392
2,793,203
Amortisation (Note 9)
1,808,250
1,676,433
2015
Marketing expenses
973,298
1,277,551
Regulatory expenses
1,013,150
1,039,950
304,917
225,035
257,156
(359,870)
3,399,461
3,474,188
33,048,845
31,705,838
Operating expenses include an amount of AED 5.49 million (2014: AED 29.51 million), relating to social contributions made during
the year.
The mechanism for computation of federal royalty for the year ended 31 December 2015 is in accordance with the
Guidelines, which are subject to clarifications from the MOF. The Company has
made certain judgements for the computation of federal royalty in the absence
of clarifications from MOF. The Group is
in discussion with MOF on the basis of
allocation of indirect costs between regulated and non regulated services.
The federal royalty has been treated as
an operating expense in the consolidated
statement of profit or loss on the basis
that the expenses the Company would
otherwise have had to incur for the use
of the federal facilities would have been
classified as operating expenses.
8. Taxation
80
2015
AED000
1,768,096
2014
(Restated)
AED000
1,527,471
(490,506)
(362,146)
1,277,590
1,165,325
a) Current tax
Corporate income tax is not levied in the UAE for telecommunication companies and accordingly the effective tax rate for the
Corporation is 0% (2014: 0%). The table below reconciles the difference between the expected tax expense, (based on the UAE effective tax rate) and the Groups tax charge for the year.
2015
AED000
11,025,839
2014
(Restated)
AED000
10,842,533
1,768,096
1,527,471
1,768,096
1,527,471
The current income tax assets represent refunds receivable from tax authorities and current income tax liabilities represent income
tax payable.
c) Deferred tax
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current
tax liabilities and when these relate to the same income tax authority. The amounts recognised in the consolidated statement of
financial position after such offset are as follows:
Other income
(26,500)
1,736,288
All interest charges are generated on the Groups financial liabilities measured at amortised cost. Borrowing costs included in the
cost of qualifying assets during the year arose on specific and general borrowing pools. Borrowing costs attributable to general
borrowing pools are calculated by applying a capitalisation rate of 8.50% (2014: 9.28%) to expenditure on such assets. Borrowing
costs have been capitalised in relation to loans by certain of the Groups subsidiaries.
b) Federal Royalty
In accordance with the Cabinet decision No. 558/1 for the year 1991, the
Company (formerly known as Corporation) was required to pay a federal
royalty, equivalent to 40% of its annual
net profit before such federal royalty, to
the UAE Government for use of federal
facilities. With effect from 1 June 1998,
Cabinet decision No. 325/28M for 1998
increased the federal royalty payable to
50%.
(28,642)
1,212,177
2015
AED000
436,440
2014
(Restated)
AED000
388,897
479,638
2,264,030
916,078
2,652,927
2015
AED000
308,734
2014
(Restated)
AED000
317,383
(4,015,579)
(4,702,839)
(3,706,845)
(4,385,456)
Etisalat Group
81
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
8. Taxation (Continued)
The following represent the major deferred tax liabilities and deferred tax assets recognised by the Group and movements thereon
without taking into consideration the offsetting of balances within the same tax jurisdiction.
Cost
At 1 January 2014
Accelerated
tax
depreciation
AED000
Deferred tax on
overseas earnings
AED000
Others
AED000
Total
AED000
1,809,381
181,243
49,756
2,040,380
At 1 January 2014
(Credit)/charge to the consolidated
statement of profit or loss
70,150
(22,882)
(205,012)
(157,744)
3,494
3,637,635
3,494
3,637,635
85,296
(381,403)
(296,107)
1,964,827
158,361
3,104,470
5,227,658
(37,453)
(37,453)
1,964,827
120,908
3,104,470
5,190,205
(87,838)
(14,838)
(267,408)
(370,084)
Exchange differences
(102,329)
(288,527)
(390,856)
At 31 December 2015
1,774,660
106,070
2,548,535
4,429,265
Exchange differences
At 31 December 2014
(Credit)/charge to the consolidated
statement of profit or loss
Credit to other comprehensive income
Exchange differences
At 31 December 2015
Trade names
Others
Total
AED000
AED000
AED000
7,174,907
12,891,983
237,006
2,717,480
15,846,469
1,429,854
608,910
2,038,764
11,761,694
6,292,302
2,218,006
2,218,924
10,729,232
(44,896)
(6,087)
(108,452)
(114,539)
(25,660)
(25,660)
(229,033)
(694,066)
(2,054,311)
2,225,979 4,717,136
26,419,955
Additions
Acquisition of Maroc Telecom (Note 30)
Reclassified as held for sale (Note 35)
Disposals
Exchange differences
At 31 December 2014
Amortisation and impairment
At 1 January 2014
(1,047,116)
(1,131,212)
17,844,589
19,476,840
1,622,641
4,845,027
15,800
1,538,360
6,399,187
767,137
57,882
869,697
1,694,716
540,328
(1,205)
(39,259)
(40,464)
Disposals
(25,635)
(25,635)
(3,299)
(8,762)
(200,374)
(498,952)
(702,625)
At 31 December 2014
2,154,207
5,410,585
70,383 1,844,211
7,325,179
Carrying amount
At 31 December 2014
15,690,382
14,066,255
2,155,596 2,872,925
19,094,776
17,844,589
19,476,840
2,225,979
4,717,136
26,419,955
47,496
1,004,996
439,172
1,444,168
Exchange differences
Tax losses
AED000
Others
AED000
Total
AED000
Additions
173,467
234,457
125,659
533,583
125,681
125,681
(88,390)
(47,774)
(136,164)
Licenses
AED000
Retirement
benefit
obligations
AED000
At 1 January 2014
Charge to other comprehensive income
Goodwill
AED'000
Cost
At 1 January 2015
1,262
66,869
79,572
147,703
74,497
1,572
76,069
Disposals
46,955
46,955
Exchange differences
8,597
(7,860)
(298)
439
257,823
293,466
253,460
804,749
(13,970)
52,502
81,890
120,422
(133,657)
(133,657)
(11,720)
98,476
(38,017)
307,951
(19,357)
315,993
(69,094)
722,420
At 31 December 2015
(4,412)
(167,499)
(788,534)
(956,033)
(1,160,311)
(1,524,948)
(192,373)
(422,988)
(2,140,309)
16,727,362
18,700,999
2,033,606 4,022,693
24,757,298
2,154,207
5,410,585
70,383
1,844,211
7,325,179
820,342
94,246
902,529
1,817,117
(55,307)
(7,240)
(62,547)
Disposals
(91,712)
(661,900)
(753,612)
(10,075)
Exchange differences
At 31 December 2015
(4,357)
(374,079)
(377,757)
(761,911)
2,149,850
5,709,829
154,554 1,699,843
7,564,226
14,577,512
12,991,170
1,879,052 2,322,850
17,193,072
Carrying amount
2015
AED million
1,369
2014
AED million
1,554
1,147
1,272
221
1
252
30
At 31 December 2015
Others - net book values
IRU
Computer software
Customer relationships
Others
82
2015
AED000
2014
AED000
526,212
564,917
713,175
890,352
568,859
1,099,868
514,604
317,788
2,322,850
2,872,925
Etisalat Group
83
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
Maroc Telecom
84
2015
AED000
2014
(Restated)
AED000
5,627
5,627
40,318
923,339
540,328
276
40,042
383,011
949,385
8,624
-
651,310
295,964
2,111
995,330
6,818
1,806
931,963
2015
2014
AED000
8,425,822
AED000
9,246,613
1,176,812
1,291,211
4,108,560
4,252,905
636,173
667,224
24,023
26,306
206,122
206,123
14,577,512
15,690,382
Goodwill has been allocated to the respective segment based on the separately identifiable CGUs.
c) Key assumptions for the value in use
calculations:
The cash flow forecasts for capital expenditure are based on past experience
and include the ongoing capital expenditure required to continue rolling out
networks in emerging markets, providing enhanced voice and data products
and services, and meeting the population coverage requirements of certain licenses of the Group. Capital expenditure
includes cash outflows for the purchase
of property, plant and equipment and
other intangible assets.
Etisalat Group
85
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
Plant and
Motor vehicles,
equipment computer, furniture
AED000
AED000
Assets under
construction
AED000
Total
AED000
8,377,255
48,251,308
4,368,610
4,935,317
65,932,490
195,113
1,267,828
118,640
5,290,561
6,872,142
2,092,884
12,325,579
393,038
75,457
14,886,958
Transfers
154,711
4,591,962
790,718
(5,537,391)
Disposals
(95,811)
(739,352)
(186,530)
(28,258)
(1,049,951)
(14,032)
(499,415)
(55,271)
(78,138)
(646,856)
Exchange differences
At 31 December 2014
(241,164)
(3,046,779)
(276,947)
(79,127)
(3,644,017)
10,468,956
62,151,131
5,152,258
4,578,421
82,350,766
2,687,337
28,830,292
3,035,933
59,767
34,613,329
186,961
4,195,564
778,490
5,161,015
6,818
6,818
(63,626)
(607,979)
(139,206)
(810,811)
the year.
(11,850)
(328,525)
(51,236)
(391,611)
(227,978)
(1,748,506)
(224,102)
(2,200,586)
2,570,844
30,340,846
3,406,697
59,767
36,378,154
31,810,285
1,745,561
4,518,654
45,972,612
Cost
At 1 January 2015
Additions
Transfer to Intangibles
10,468,956
62,151,131
5,152,258
4,578,421
82,350,766
250,299
1,789,362
93,036
6,773,730
8,906,427
(125,681)
(125,681)
Transfers
396,964
5,135,194
703,258
(6,235,416)
Disposals
(170)
(1,086,142)
(76,992)
(28,565)
(1,191,869)
(25,549)
(248,025)
(23,365)
381
(296,558)
(595,148)
(4,261,389)
(279,069)
(128,890)
(5,264,496)
10,495,352
63,480,131
5,569,126
4,833,980
84,378,589
2,570,844
30,340,846
3,406,697
59,767
36,378,154
221,132
4,926,138
648,808
5,796,078
8,014
8,014
(61)
(860,879)
(106,088)
(967,028)
(16,121)
(141,355)
(19,861)
(177,337)
2015
AED000
2014
AED000
59,425
56,771
Cost
At 1 January
Additions
At 31 December
Depreciation
At 1 January
Additions
7,898,112
cost and included separately under noncurrent assets in the consolidated statement of financial position.
600
2,654
60,025
59,425
18,047
15,560
2,621
2,487
At 31 December
20,668
18,047
39,357
41,378
72,211
70,450
2015
AED million
7.9
2014
AED million
10.9
1.2
1.3
The fair value of the Groups investment property has been determined based on a Sales Comparable approach and with reference
to observable latest market prices for similar commercial properties in the neighbourhood. Accordingly, the fair value is classified
as level 3 of the fair value hierarchy.
(158,129)
(2,562,792)
(208,352)
(2,929,273)
At 31 December 2015
2,617,665
31,709,972
3,721,204
59,767
38,108,608
Carrying amount
At 31 December 2015
7,877,687
31,770,159
1,847,922
4,774,213
46,269,981
86
Etisalat Group
87
12. Subsidiaries
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
Name
UAE
UAE
UAE
Principal activity
Telecommunications services
Cable television services
Holds investment in Pakistan
Telecommunication Co. Ltd
Percentage
shareholding
2015
2014
100%
100%
100%
100%
90%
90%
UAE
100%
100%
UAE
Infrastructure services
100%
100%
India
Technology solutions
100%
100%
E-Marine PJSC
Tanzania
Telecommunications services
85%
Republic of Sudan
Telecommunications services
90%
90%
100%
100%
100%
100%
Egypt
Telecommunications services
66%
66%
Togo
Telecommunications services
100%
100%
Sri Lanka
Telecommunications services
100%
100%
Pakistan
Telecommunications services
Holds investment Socit de
Participation dans les
Tlcommunications (SPT)
23%
23%
UAE
Kingdom of Morocco
Kingdom of Morocco
91.3%
100%
91.3%
100%
Information relating to subsidiaries that have non-controlling interests that are material to the Group are provided below:
Maroc Telecom
consolidated
AED'000
PTCL
consolidated
Etisalat Misr
consolidated
2015
51.6%
76.6%
34%
1,112,165
28,367
149,254
(763,259)
(370,002)
(239,802)
(1,530,466)
(338,811)
(51,585)
7,397,153
5,891,136
2,577,070
6,613,092
2,757,637
1,919,962
33,217,963
17,151,841
11,062,738
Current liabilities
12,588,260
5,420,384
3,924,046
4,299,232
5,390,308
1,441,883
Non-current liabilities
2014
AED'000
Information relating to non-controlling interests:
Non-controlling interest (shareholding %)
Profit
Dividends
Non-controlling interests as at 31 December
51.6%
76.6%
34%
774,968
87,358
162,138
(1,213,005)
(281,547)
8,710,201
6,571,582
2,716,746
Mauritius
Telecommunications services
Holds investment in Etisalat DB
Telecom Private Limited
48%
48%
Current assets
Non-current assets
100%
100%
6,210,368
2,761,653
1,561,629
33,159,577
18,106,693
12,165,580
Current liabilities
10,114,183
5,752,276
3,604,457
Non-current liabilities
3,364,827
5,052,799
1,573,563
Etisalat Group
89
Notes to the consolidated financial statements for year ended 31 December 2015
Notes to the consolidated financial statements for year ended 31 December 2015
a) Associates
Name
AED000
2014
(Restated)
AED000
17,994,120
9,060,552
2015
As at 1 January
Total comprehensive income:
Profit for the year
1,248,162
961,460
(42,461)
(108,642)
(1,300,678)
(618,808)
(9,288)
6,936
16,362
356
Acquisition of a subsidiary
8,159,944
Disposal of a subsidiary
115,450
(5,664)
132,570
(209,094)
1,791,831
(1,920,861)
(1,392,078)
15,886,048
17,994,121
2015
AED000
2014
(Restated)
AED000
(327,904)
(651,109)
11,975
11,936
(315,929)
(639,173)
Country of
incorporation
Principal activity
Percentage
shareholding
Saudi Arabia
Telecommunications services
27%
UAE
28%
Nigeria
Telecommunications services
40%
Mobily
All Associates
2015
AED000
4,720,161
2014
(Restated)
AED000
6,224,993
2015
AED000
4,898,798
2014
(Restated)
AED000
6,430,745
(293,914)
(623,955)
(327,904)
(651,109)
(68,900)
(68,901)
4,426,247
(35,446)
(776,531)
4,720,161
(226)
4,570,668
(35,405)
(776,531)
4,898,799
Exchange differences
Other movements
Dividends
Carrying amount at 31 December
c) Reconciliation of the above summarised financial information to the net assets of the associates
Mobily
All Associates
Net Assets
Our share in net assets of associates *
Others **
Impairment
2015
2014
(Restated)
2015
2014
(Restated)
AED000
AED000
AED000
AED000
15,229,323
16,299,163
1,968,556
4,828,843
4,181,820
4,475,587
4,526,395
4,852,860
244,427
244,574
244,273
245,939
(200,000)
(200,000)
4,426,247
4,720,161
4,570,668
4,898,799
* Our share in the net assets of associates does not include the share of results of EMTS effective from 1 January 2013 (refer note 13)
** "Others" include an amount of AED 150 million (2014: AED 150 million) relating to premium paid on rights issue in the prior years.
All Associates
AED000
8,219,218
2014
(Restated)
AED000
12,236,079
2015
AED000
10,322,709
2014
(Restated)
AED000
13,620,360
33,254,541
33,414,430
38,946,136
39,542,307
(26,009,691)
(29,155,683)
(29,410,616)
(32,577,701)
(234,745)
(195,663)
(17,889,673)
(15,756,123)
15,229,323
16,299,163
1,968,556
4,828,843
Revenue
14,112,564
13,704,679
18,811,004
18,566,650
Loss
(1,069,514)
(1,543,114)
(3,886,080)
(6,514,093)
(1,069,514)
(1,543,114)
(3,886,080)
(6,514,093)
776,531
776,531
2015
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Dividends received
90
Borrowings amounting to AED 8,247 million classified as non current liabilities in the financial statements of Mobily have been
reclassified to current liabilities in the above table, to comply with the requirements of IFRS.
Etisalat Group
91
Current assets
245,962
Non-current assets
13,610
83,112
Current liabilities
(103,136)
(107,877)
Net assets
Revenue
156,436
140,487
185,294
157,277
23,949
27,157
Profit or Telecommunications
loss
Emirates
Group Company PJSC
Notes to the consolidated financial statements for the year ended 31 December 2015
165,252
Notes to the consolidated financial statements for the year ended 31 December 2015
The Group has not identified any contingent liabilities or capital commitments in relation to its interest in joint ventures.
14. Investment in associates and joint ventures (continued)
Fair value
through Profit
and loss
AED000
The shares of one of the Groups associates are quoted on public stock markets and it is classified as Level-1 fair value. The
market value of the Groups shareholding based on the quoted prices is as follows:
2015
2014
AED000
AED000
4,920,891
9,082,335
At 1 January 2014
Additions
Acquisition of Maroc Telecom (Note 30)
Total
AED000
1,119,847
195,585
1,315,432
937
74,124
75,061
49,271
80,071
129,342
Disposal
(454,292)
(3,594)
(457,886)
The Group had recognized its share of results from Mobily in its published condensed consolidated interim financial information
during the year with a lag of one quarter. However, the share of results of Mobily recognised for the year ended 31 December
2015 represents the Groups share of results for the full year results of Mobily for 2015.
Investment revaluation
(56,588)
(56,588)
Impairment
(3,061)
(3,061)
(3,570)
(3,570)
e) Joint ventures
Exchange differences
(5,583)
(9,150)
(14,733)
At 31 December 2014
Additions
44,625
747,381
191,991
983,997
Name
Country of
incorporation
UAE
Principal activity
Percentage
shareholding
Disposal
30,671
13,428
44,099
(7,616)
(8,793)
(2,114)
(18,523)
50%
Investment revaluation
(181,297)
(181,297)
ICT Services
50%
Impairment
(516)
(516)
UAE
Exchange differences
(3,984)
(11,438)
(15,422)
At 31 December 2015
33,025
576,008
203,305
812,338
2014
AED000
60,309
11,975
11,936
Dividends
(4,000)
(2,000)
78,220
70,245
2015
AED000
245,962
2014
AED000
165,252
13,610
83,112
Current liabilities
(103,136)
(107,877)
Net assets
Revenue
156,436
140,487
185,294
157,277
23,949
27,157
Current assets
Non-current assets
Profit or loss
The held to maturity investment represents Sukuk which is the bond structured to conform with the principles of
Islamic Sharia law. At 31 December 2015,
the market value of the investment in
Sukuk was AED 203 million (2014: AED
194 million)
16. Related party transactions
The Group has not identified any contingent liabilities or capital commitments in relation to its interest in joint ventures.
15. Other investments
Fair value
through Profit
and loss
AED000
At 1 January 2014
Additions
Acquisition of Maroc Telecom (Note 30)
Disposal
Investment revaluation
Annual Report 2015
92
Impairment
Reclassified as held for sale (Note 35)
1,119,847
195,585
Total
AED000
1,315,432
937
74,124
75,061
49,271
80,071
129,342
(454,292)
(3,594)
(457,886)
(56,588)
(56,588)
(3,061)
(3,061)
(3,570)
(3,570)
Etisalat Group
93
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
Short-term benets
17. Inventories
Associates
2015
AED millions
Joint Ventures
2014
AED millions
2015
AED millions
2014
AED millions
Trading transactions
Telecommunication services sales
76.8
136.8
93.5
99.6
219.7
272.9
7.3
7.3
562.9
451.5
2.9
8.4
Short-term benets
1,232.9
2,390.2
The Company provides a primary gateway facility to Thuraya including maintenance and support services. The Corporation receives annual income from
Thuraya in respect of these services.
Subscriber equipment
2015
AED000
16,790
2014
AED000
17,272
2015
AED000
470,500
2014
AED000
444,321
340,040
224,188
Obsolescence allowances
(36,451)
(43,857)
774,089
624,652
Net Inventories
2015
2014
AED000
AED000
43,857
93,374
(4,065)
(51,143)
(3,341)
1,626
At 31 December
36,451
43,857
2,152,393
2,190,424
2014
(Restated)
AED000
9,366,038
AED000
9,382,221
(1,954,616)
(1,646,120)
7,411,422
7,736,101
6,887,638
5,310,370
The remuneration of the Board of Directors, who are the key management personnel of the Group, is set out below in
aggregate for the category specified in
IAS 24 Related Party Disclosures.
566,460
666,822
Other receivables
2015
AED000
16,790
2014
AED000
17,272
2015
AED000
470,500
2014
AED000
444,321
340,040
224,188
Prepayments
Accrued income
1,143,078
954,840
2,420,205
2,890,512
At 31 December
18,428,803
17,558,645
18,428,803
18,215,158
17,558,645
17,318,579
213,645
240,066
17. Inventories
Subscriber equipment
Maintenance and consumables
Obsolescence allowances
Net Inventories
Movement in obsolescence allowances
At 1 January
Net decrease in obsolescence allowances
Foreign Exchange differences
Annual Report 2015
94
At 31 December
(36,451)
(43,857)
774,089
624,652
2015
2014
AED000
AED000
43,857
93,374
(4,065)
(51,143)
(3,341)
1,626
36,451
43,857
Etisalat Group
95
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
Upto 60 days
61-90 days
2015
AED000
9,923,695
2014
(Restated)
AED000
8,905,884
576,975
622,006
90-365 days
1,915,806
1,492,935
1,882,584
2,025,646
14,299,060
13,046,471
2015
AED000
1,646,120
2014
AED000
1,550,560
319,011
122,931
8,205
(13,419)
(18,720)
(13,952)
1,954,616
1,646,120
No interest is charged on the trade receivable balances. With respect to the amounts receivable from the services rendered the
Group holds AED 424 million (2014: AED 299 million) of collateral in the form of cash deposits from customers. Amounts due from
other telecommunication operators/carriers include interconnect balances with related parties.
19. Cash and cash equivalents
Maintained locally
Maintained overseas, unrestricted in use
2015
AED000
17,746,449
2014
AED000
15,924,323
3,487,184
2,335,947
275,990
291,504
21,509,623
18,551,774
(87,269)
(8,915)
21,422,354
18,542,859
(15,956,323)
(12,498,851)
5,466,031
6,044,008
Cash and cash equivalents comprise cash on hand and short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. These are denominated primarily in UAE Dirham, with financial institutions and banks. Interest is earned on these investments at prevailing market rates. The carrying amount
of these assets approximates to their fair value.
20. Trade and other payables
2015
AED000
2014
(Restated)
AED000
Current
Federal royalty
5,847,678
5,444,018
Trade payables
8,207,720
9,070,849
5,534,660
4,039,455
1,554,145
1,810,398
Deferred revenue
Other payables and accruals
At 31 December
Non-current
Other payables and accruals
At 31 December
11,541,510
10,406,132
32,685,713
30,770,852
1,533,176
1,075,481
1,533,176
1,075,481
21. Borrowings
Details of the Groups bank and other borrowings are as follows:
Carrying Value
Fair Value
Bank borrowings
Bank overdrafts
Bank loans
Other borrowings
Bonds
Loans from non controlling interest
Vendor nancing
Others
2015
AED000
2014
AED000
2015
AED000
2014
AED000
3,055,377
3,441,325
2,416,452
4,966,465
3,055,377
3,511,765
2,416,452
4,909,289
15,139,036
7,803
14,901,901
8,189
14,608,777
8,584
14,164,803
8,671
271,950
389,831
271,950
366,057
62,577
52,705
63,488
56,562
21,978,068
22,735,543
21,519,941
21,921,834
560,221
22,080,162
-
570,715
22,492,549
(263,379)
22,080,162
22,229,170
4,199,637
3,609,711
17,880,525
18,619,459
On 22 May 2014, the Group had completed the listing of USD 7 billion (AED
25.7 billion) Global Medium Term Note
(GMTN) programme which will be used
to meet medium to long-term funding requirements on the Irish Stock Exchange (ISE). Under the programme,
Etisalat can issue one or more series of
conventional bonds in any currency and
amount up to USD 7 billion. The listed
programme was rated Aa3 by Moodys,
AA- by Standard & Poors and A+ by
Fitch.
In May 2015, the Group issued an additional bonds amounting to USD 400
million under the existing USD 5 years
tranches.
Amounts due to other telecommunication administrators include interconnect balances with related parties.
Federal royalty for the year ended 31 December 2015 is to be paid as soon as the consolidated financial statements have been
approved but not later than 4 months from the year ended 31 December 2015.
96
Etisalat Group
97
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
As at 31 December 2015, the total amounts in issue under this programme split by currency are USD 1.4 billion (AED 5.14 billion)
and Euro 2.4 billion (AED 9.63 billion) as follows:
Nominal Value
Fair
Value
Carrying
Value
2015
AED000
2015
AED000
2015
AED000
Bonds
2.375% US dollar 900 million notes due 2019
3.500% US dollar 500 million notes due 2024
Bonds in net investment hedge relationship
3,306,600
1,837,000
3,294,696
1,859,595
3,306,574
1,815,817
4,816,800
4,901,576
4,761,356
4,816,800
5,083,169
4,725,030
14,777,200
15,139,036
At 31 December 2015
of which due within 12 months
of which due after 12 months
Nominal Value
Bonds
2.375% US dollar 500 million notes due 2019
3.500% US dollar 500 million notes due 2024
Fair
Value
14,608,777
- 14,608,777
Carrying
Value
2014
AED000
2014
AED000
2014
AED000
1,837,000
1,837,000
1,841,225
1,879,618
1,824,285
1,812,709
Carrying Value
Year of maturity
EGP
1,318,825
1,207,849
2014-2017
EURO
EURIBOR +0.8%
334,650
2015-2018
EGP
324,748
2014
USD
LIBOR +4.8%
263,379
2015-2016
379,715
2012-2019
USD
3M SLIBOR+4%
188,407
206,176
2014-2015
EURO
EURIBOR +4.9%
54,107
2014-2022
PKR
735,000
549,000
2014-2019
USD
720,972
2014-2019
EUR
545,749
2014-2016
USD
0.75%
6 month LIBOR
+.1.52%
6 month
EURIBOR+.1.4%
3 months
LIBOR+3.5%
Mid corridor + 0.75%
19,099
2012-2018
EGP
2012-2020
2015-2016
MAD
5.45%
2,489,855
2,080,295
2017
USD
0%
53,185
29,316
2017
EUR
2%
233,959
2013-2015
EGP
10%
8,584
8,671
9.69%
57,387
CFA
8.0%
44,791
5,495,221
5,283,174
5,354,400
5,685,837
5,244,635
14,382,800
14,901,901
14,164,803
The terms and conditions of the Groups bank and other borrowings are as follows:
2017
2014-2017
Other borrowings
Advances from non-controlling interests
N/A
USD
Interest free
560,221
570,715
2019
USD
2.375%
1,827,933
1,824,285
Bonds
2019
USD
2.375%
1,478,641
Bonds
2024
USD
3.500%
1,815,817
1,812,710
Bonds
2021
EUR
1.750%
4,761,356
5,283,174
Bonds
2026
EUR
2.750%
4,725,030
5,244,633
Others
Various
Various
Various
Bonds
Total Borrowings
Reclassied as held for sale (Note 35)
Borrowings from continuing operations
98
64,256
337,447
5,354,400
14,164,803
43,957
271,950
2014
AED000
2010-2017
2015
AED000
Interest rate
Currency
805,592
1,291,275
22,080,162
22,492,549
(263,379)
22,080,162
22,229,170
Etisalat Group
99
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
a) Interest rates
The weighted average interest rate paid during the year on bank and other borrowings is set out below:
2015
2014
Bank borrowings
6.0%
5.1%
Other borrowings
2.7%
2.9%
At 31 December 2015, the Group had AED 4,832 million (2014: AED 2,000 million) of undrawn committed borrowing facilities in
respect of which all conditions precedent had been met.
During the prior year, Euro bonds issued (refer to note 21) and cross currency swaps have been designated as net investment
hedges. There was no material ineffectiveness of these hedges recorded as at the end of the reporting period.
2015
AED000
2014
AED000
1,255,830
1,301,869
As at the end of the reporting period the Group has cross currency USD-EUR swaps which are designated as hedges of net investment. The fair value of the cross currency swaps are calculated by discounting the future cash flows to net present value using
appropriate market interest and prevailing foreign currency rates. The fair value of swaps is as follows:
Fair value of swaps designated as net investment hedge (Derivative nancial assets)
Fair value of swaps designated as net investment hedge (Derivative nancial liabilities)
The fair value of bonds designated as hedge is disclosed in note 21.
Total
AED000
2,936,653
2,936,653
11,022
11,022
265,472
693,661
959,133
3,213,147
693,661
3,906,808
2,936,653
2,936,653
11,022
11,022
24,828
24,828
At 31 December 2015
Etisalat International Pakistan LLC
Licenses
Pakistan Telecommunication Company Limited
At 31 December 2014
Non-current
AED000
Investments
Atlantique Telecom S.A.
b) Available facilities
Current
AED000
2015
AED000
2014
AED000
675,412
293,584
(1,607)
Investments
Etisalat International Pakistan LLC
Atlantique Telecom S.A.
Licenses
Republic of Benin
Pakistan Telecommunication Company Limited
161,291
936,699
1,097,990
3,133,794
936,699
4,070,493
According to the terms of the share purchase agreement between Etisalat International Pakistan LLC and the Government of Pakistan (GOP)
payments of AED 6,612 million (2014: AED 6,612 million) have been made to GOP with the balance of AED 2,937 million (2014: AED 2,937 million) to be paid. The amounts payable are being withheld pending completion of certain conditions in the share purchase agreement related to
the transfer of certain assets to PTCL.
All amounts payable on acquisitions are financial liabilities measured at amortised cost and are mostly denominated in either USD, AED or PKR.
2015
AED000
2014
(Restated)
AED000
2015
AED000
2014
(Restated)
AED000
7,230
7,150
7,070
6,983
11,253
18,182
10,934
17,283
18,483
25,332
18,004
24,266
(479)
(1,066)
18,004
24,266
18,004
24,266
7,070
6,983
7,070
6,983
10,934
17,283
10,934
17,283
It is the Group policy to lease certain of its plant and machinery under finance leases. For the year ended 31 December 2015, the average effective
borrowing rate was 20% (2014: 25%). The fair value of the Groups lease obligations is approximately equal to their carrying value.
100
25. Provisions
Notes to the consolidated financial statements for the year ended 31 December 2015
At 1 January 2014
Additional provision during the year
Acquisition of Maroc Telecom (Note 30)
Utilization of provision
Release of provision
Adjustment for change in discount rate
Unwinding of discount
Exchange differences
Notes to the consolidated financial statements for the year ended 31 December 2015
Asset retirement
obligations
AED000
Other
AED000
Total
AED000
19,721
1,353,654
1,373,375
20,718
850,908
871,626
197,061
197,061
(6)
(46,511)
(46,517)
(6,025)
(243,774)
(249,799)
(549)
(1,188)
(1,737)
673
673
(426)
(41,116)
(41,542)
34,106
2,069,034
2,103,140
1,897
1,974,507
1,976,404
32,209
94,527
126,736
34,106
2,069,034
2,103,140
4,151
963,593
967,744
(2,696)
(2,696)
(769,966)
(769,966)
Release of provision
(630)
(100,659)
(101,289)
1,315
1,315
24
32
Exchange differences
(2,933)
(68,695)
(71,628)
At 31 December 2015
33,321
2,093,331
2,126,652
530
1,918,314
1,918,844
32,791
175,017
207,808
33,321
2,093,331
2,126,652
Unwinding of discount
Asset retirement obligations relate to certain assets held by certain Groups overseas subsidiaries that will require restoration at
a future date that has been approximated to be equal to the end of the useful economic life of the assets. There are no expected
reimbursements for these amounts.
Other includes provisions relating to certain indirect tax liabilities and other regulatory related items, including provisions relating to certain Groups overseas subsidiaries.
:
Funded Plans
Present value of dened benet obligations
Less: Fair value of plan assets
Unfunded Plans
Present value of dened benet obligations and other employee benets
Total
The movement in dened benet obligations for funded and unfunded plans is as follows:
As at 1 January
Other Adjustments
Reclassied as held for sale (Note 35)
2015
2014
AED000
AED000
3,686,056
3,541,336
(3,266,580)
(3,089,390)
419,476
451,946
1,491,004
1,592,594
1,910,480
2,044,540
2015
AED000
2014
AED000
5,133,930
4,467,509
162,946
(2,276)
Service cost
151,407
146,761
Interest cost
500,671
447,896
Actuarial (loss)/gain
(654)
11,754
33,715
210,071
Benets paid
(436,562)
(472,943)
Exchange difference
(205,447)
162,212
As at 31 December
5,177,060
5,133,930
2015
AED000
2014
AED000
3,089,390
2,555,736
295,745
318,868
Remeasurements
257,586
458,295
Benets paid
(239,247)
(371,355)
Exchange difference
(136,894)
127,846
3,266,580
3,089,390
2015
AED000
2014
AED000
Service cost
136,238
146,766
Interest cost
135,927
54,911
(1,501)
10,739
270,664
212,416
2015
2014
2.50%
2.80%
Pakistan
9.5%- 11.5%
11.25%- 12.5%
Morocco
4%
4.25%
As at 31 December
The amount recognised in statement of prot or loss is as follows:
Others
Following are the signicant assumptions used relating to the major plans
Discount rate
UAE
UAE
Pakistan
3.5% - 4%
7% - 10%
4.0%
Exchange difference
(205,447)
162,212
As at 31 December
5,177,060
5,133,930
2015
AED000
2014
AED000
3,089,390
2,555,736
Notes to the consolidated financial statements for the year ended 31 December 2015
Contributions received
Benets paid
26.
Provision
for end of service benefits (continued)
Exchange
difference
As at 31 December
The amount recognised in statement of prot or loss is as follows:
Service cost
Interest cost
Others
295,745
318,868
257,586
458,295
(239,247)
(371,355)
(136,894)
127,846
3,266,580
3,089,390
2015
AED000
2014
AED000
136,238
146,766
Notes to the consolidated financial statements for the year ended 31 December 2015
28. Reserves
135,927
54,911
As at 1 January
Total comprehensive income for the year
(1,501)
10,739
270,664
212,416
Following are the signicant assumptions used relating to the major plans
2015
2.50%
2.80%
Pakistan
9.5%- 11.5%
11.25%- 12.5%
Morocco
4%
4.25%
3.5% - 4%
4.0%
Pakistan
7% - 10%
7% - 11.5%
Morocco
3%-5%
3%-5%
2015
AED000
2014
AED000
2,564,547
2,469,808
424,297
477,771
Investment property
284,173
292,957
Fixed assets
242
175
Other assets
747
4,555
(7,426)
(155,876)
3,266,580
3,089,390
less: liabilities
2014
Restated
AED000
27,440,371
28,266,980
(575,277)
(844,849)
(162,993)
881,313
18,240
27,583,414
27,440,371
2015
AED000
2014
Restated
AED000
(2,734,834)
(2,209,881)
(692,291)
(524,953)
2014
Discount rate
UAE
2015
AED000
The expense recognised in profit or loss relating to contribution plan at the rate specified in the rules of the plans amounting to
AED 132 million (2014: AED 124 million).
(162,993)
(3,590,118)
(2,734,834)
204,477
(162,874)
(37,582)
(16,076)
(282,314)
295,964
1,595
(115,419)
7,850,000
7,850,000
8,166,000
8,166,000
As at 1 January
Loss on revaluation
As at 31 December
Development reserve
As at 1 January and 31 December
Asset replacement reserve
As at 1 January
Transfer from retained earnings
As at 31 December
2015
AED000
Authorised:
10,000 million (2014: 8,000 million) ordinary shares of AED 1 each
10,000,000
2014
AED000
8,000,000
24,286
8,190,286
8,166,000
Statutory reserve
As at 1 January
Transfer from retained earnings
As at 31 December
189,657
165,077
849,862
24,580
1,039,519
189,657
14,084,967
14,091,307
8,696,754
7,906,140
At the extraordinary general meeting held on 24 March 2015, the shareholders approved the increase of the authorised share capital of the Etisalat Group (formerly known as Corporation) to AED 10 billion. The Company has amended the articles of association
to reflect this increase. At the ordinary assembly meeting held on 24 March 2015, the shareholders approved the issue of one bonus
shares for every ten shares held.
104
General reserve
As at 1 January
Transfer from retained earnings
As at 31 December
7,165
(6,340)
14,092,132
14,084,967
Notes to the consolidated financial statements for the year ended 31 December 2015
These reserves are all distributable reserves and comprise amounts transferred from unappropriated profit at the
discretion of the Group to hold reserve
amounts for future activities including
the issuance of bonus shares.
Notes to the consolidated financial statements for the year ended 31 December 2015
c) Translation reserve
Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and the bases of recognition of income and expenses) for each class of financial asset and financial liability are disclosed in
Note 2.
Held-to-maturity investments
Capital management
Bank borrowings
Bonds
Other borrowings
Finance lease obligations
Cash and bank balances
Net funds
Total equity
106
1,798,688
2,850,049
17,862,343
16,891,823
19,661,031
19,741,872
576,008
747,381
33,025
44,625
203,305
191,991
21,422,354
18,542,859
675,412
293,584
42,571,135
39,562,312
32,664,744
30,035,935
Borrowings
22,080,162
22,492,549
3,906,808
4,070,493
18,004
24,266
58,669,718
56,623,243
The capital structure of the Group consists of bonds, bank and other borrowings, finance lease obligations, cash and
bank balances and total equity comprising share capital, reserves and retained
earnings.
2014
(Restated)
AED000
Financial assets
Loans and receivables, held at amortised cost:
b) Statutory reserve
2015
AED000
tween equity and debt financing and establishes internal limits on the maximum
amount of debt relative to earnings.
The limits are assessed, and revised as
deemed appropriate, based on various
considerations including the anticipated
funding requirements of the Group and
2015
AED000
2014
(Restated)
AED000
(6,567,142)
(7,325,741)
(14,608,777)
(14,164,803)
(904,243)
(1,002,005)
(18,004)
(24,266)
21,422,354
18,542,859
(675,812)
(3,973,956)
59,375,099
60,214,472
The Group takes into consideration several factors when determining its capital structure with the aim of ensuring
sustainability of the business and maximizing the value to shareholders. The
Group monitors its cost of capital with
a goal of optimizing its capital structure.
In order to do this, the Group monitors
the financial markets and updates to
standard industry approaches for calculating weighted average cost of capital, or WACC. The Group also monitors
a net financial debt ratio to obtain and
a) Market risk
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
2015
2014
83%
17%
86%
14%
108
2015
AED000
2014
AED000
41,507
112,074
970,526
1,164,144
(1,802)
12,187
195,230
156,556
By Fitch
By Moody's
By S&P
AED
5.2 billion
4.1 billion
3.0 billion
Rating
NA
NA
Baa1
A2
BBB+
2014
AED
7.0 billion
1.7 billion
-
Rating
A+
A
NA
NA
NA
net of any allowances for losses, represents the Groups maximum exposure to
credit risk without taking account of the
value of any collateral obtained.
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
and long-term funding and liquidity management requirements. The Group manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial
Borrowings
31,132,905
883,124
527,319
121,396
32,664,744
4,199,637
2,246,354
4,130,718
11,503,453
22,080,162
3,213,147
206,250
248,293
239,118
3,906,808
7,070
10,934
18,004
38,552,759
3,346,662
4,906,330
11,863,967
58,669,718
29,172,100
3,952,158
3,133,794
6,983
36,265,035
1,533,229
1,034,817
936,699
17,283
3,522,028
AED000
On demand or within one year
In the second year
In the third to fth years inclusive
After the fth year
As At 31 December 2015
Payables related to
Finance lease
investments and
obligations
licenses
licenses
Total
12,451
4,881,624
4,894,075
336
12,623,950
12,624,286
30,718,116
22,492,549
24,266
57,305,424
4,070,493
The above table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Group can be required to pay. The table includes both interest and principal cash flows.
Fair value hierarchy as at 31 December 2015
d) Fair value measurement of financial
Level 1
AED000
Level 2
AED000
Level 3
AED000
Total
AED000
675,412
675,412
578,556
233,784
812,340
578,556
675,412
233,784
1,487,752
Borrowings
21,978,068
21,978,068
1,607
1,607
21,979,675
21,979,675
Financial assets
Derivative nancial assets
Other Investments
Financial liabilities
Level 2
Level 3
Total
AED000
AED000
AED000
AED000
293,584
293,584
230,840
983,997
293,584
230,840
1,277,581
22,735,543
22,735,543
22,735,543
Reconciliation of Level 3
As at 1 January
Additions
Total
AED000
230,840
29,991
(11,440)
Disposal
(16,409)
Other movement
As at 31 December
802
233,784
Financial assets
Derivative nancial assets
Other Investments
753,157
753,157
Financial liabilities
Borrowings
110
22,735,543
Etisalat Group
111
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
Intangible assets
10,729,232
14,886,958
Investments
Inventory
Trade and other receivables
Deferred tax assets
Cash and cash equivalents
Trade and other payables
129,342
191,419
2,261,948
(8,664,357)
Provision
(197,061)
(22,450)
Bank loans
(2,543,565)
(3,637,635)
17,321,184
(8,159,944)
11,761,694
20,922,934
Consideration paid
Less: cash and cash equivalents acquired
2,261,948
2014
AED000
31. Commitments
a) Capital commitments
The Group has approved future capital projects and investments commitments to the extent of AED 5,105 million (2014: AED 7,188
million).
b) Operating lease commitments
i) The Group as lessee
46,955
(162,946)
4,303,344
Goodwill
2015
AED000
2014
AED000
304,917
225,035
At the end of the reporting period, the Group had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:
2015
AED000
297,436
2014
AED000
272,814
Between 2 to 5 years
1,104,972
1,040,687
After 5 years
1,019,504
1,159,391
2,421,912
2,472,892
Operating lease payments represent rentals payable by the Group for certain of its office and retail properties. Leases are negotiated
for an average term of five to ten years.
20,922,933
(2,261,948)
18,660,985
112
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
Property rental income earned during the year was AED 16 million (2014: AED 11 million). All of the properties held have committed
tenants for the next 5 years.
At the end of the reporting period, the Group had contracted with tenants for the following future minimum lease payments:
2015
AED000
2014
AED000
7,551
8,269
Between 2 to 5 years
7,400
8,224
14,951
16,493
114
2015
2014
AED million
1,403.1
1,298.5
-
AED million
949.0
771.3
39.4
iii)
The
Groups
associate,
Etisalat
33. Dividends
AED000
31 December 2014
Final dividend for the year ended 31 December 2013 of AED 0.35 per share
2,765,953
Interim dividend for the year ended 31 December 2014 of AED 0.35 per share
2,765,951
5,531,904
31 December 2015
Final dividend for the year ended 31 December 2014 of AED 0.35 per share
2,765,954
Interim dividend for the year ended 31 December 2015 of AED 0.40 per share
3,477,198
6,243,152
A nal dividend of AED 0.35 per share was declared by the Board of Directors on 25 February 2015, bringing the total dividend
to AED 0.70 per share for the year ended 31 December 2014.
An interim dividend of AED 0.40 per share was declared by the Board of Directors on 28 July 2015 for the year ended 31 December 2015.
A nal dividend of AED 0.40 per share was declared by the Board of Directors on 9 March 2016, bringing the total dividend to
AED 0.80 per share for the year ended 31 December 2015.
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
Earnings (AED'000)
Earnings for the purposes of basic earnings per share being the prot
attributable to the equity holders of the Company
2015
2014
(Restated)
8,262,756
8,601,086
At 31 December 2015 the disposal group comprised the following assets and liabilities:
8,696,754
Inventories
Trade and other receivables
The weighted average number of shares for the prior year was calculated by taking into consideration the bonus shares issued in
2015. The Group does not have potentially dilutive shares and accordingly, diluted earnings per share equals to basic earnings per
share.
35. Disposal Group held for sale/
Discontinued operations
Revenue
Operating expenses
Operating losses
Finance and other income
Finance costs
Loss before tax
Taxation
Gain on disposal of operation including a cumulative exchange
gain reclassied from foreign translation reserve to prot or loss
Loss for the year from discontinued operations
Note
116
44,896
73,617
74,075
119,221
255,245
Other investments
AED 0.95
Goodwill
Weighted average number of ordinary shares for the purposes of basic earnings per share
AED000
2014
(Restated)
AED000
2015
36
2014
(Restated)
AED000
AED000
466,397
548,249
(700,929)
(639,202)
(234,532)
(90,953)
(24,817)
10,317
(9,190)
(19,234)
(268,539)
(99,870)
(7,821)
(14,792)
(276,360)
(114,662)
39,029
(237,331)
(114,662)
3,570
11,374
330,861
134,682
87,269
8,915
612,230
532,757
2015
2014
(Restated)
AED000
AED000
288,455
239,130
263,379
Borrowings
Provision for end of service benets
2,276
2,697
291,152
504,785
321,078
27,972
2015
AED000
2014
AED000
49,605
24,861
Provision
(20,742)
(309)
(9,909)
(89,055)
18,954
(64,503)
2015
1,262
There are no cumulative income or expenses recognised in other comprehensive income relating to the disposal group.
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
On 22 October 2015, the Group disposed of Zanzibar Telecom Limited (Zantel) for a consideration of US$ 1.
2015
AED000
36.2 Analysis of assets and liabilities over which control was lost
2015
Assets
AED000
Goodwill
44,896
60,385
169,833
Other investments
2,890
Inventories
6,799
83,542
12,149
380,494
2015
Liabilities
AED000
227,973
Borrowings
211,950
1,748
441,671
Net liabilities
36.3 Gain on disposal of subsidiary
61,177
2015
AED000
Consideration received
Other cost
Net liabilities disposed of
Non controlling Interest
Cumulative exchange gain in respect of the net assets of the subsidiary
reclassied from equity to prot or loss on loss of control of subsidiary
Gain on disposal
118
(69,691)
61,177
(115,450)
162,993
39,029
(1,736,511)
223
(1,736,288)
11,125,163
(18,238)
(181,225)
(83,167)
10,842,533
Taxation
(1,153,576)
14,792
8,905
(35,446)
(1,165,325)
9,971,587
(3,446)
(172,320)
(118,613)
9,677,208
Notes to the consolidated financial statements for the year ended 31 December 2015
Notes to the consolidated financial statements for the year ended 31 December 2015
3,446
(114,662)
(172,320)
(118,613)
9,562,546
(118,613)
Others
(118,613)
AED '000
8,601,086
961,460
As
restated
9,562,546
AED '000
(104,345)(113,838)
48,508,398
4,969,044
(31,705,838)
As previously
reported
AED '000
Adj for a
subsidiary
classied as
held for sale
AED '000
Non-controlling interests
Others
AED '000
As restated
AED '000
48,766,875
(258,477)
48,508,398
Operating expenses
(31,832,583)
240,583
(113,838)
(31,705,838)
(931,963)
(931,963)
(461,065)
(178,108)
(639,173)
15,541,264
(17,894)
(178,108)
(113,838)
15,231,424
Federal royalty
(5,333,084)
(3,117)
30,671
(5,305,530)
Operating prot
10,208,180
(17,894)
(181,225)
(83,167)
9,925,894
2,653,494
(567)
(1,736,511)
223
(1,736,288)
11,125,163
(18,238)
(181,225)
(83,167)
10,842,533
Taxation
(1,153,576)
14,792
8,905
(35,446)
(1,165,325)
9,971,587
(3,446)
(172,320)
(118,613)
9,677,208
(118,108)
2,652,927
8,892,019
As previously
961,460
reported
9,853,479
AED '000
Consolidated statement of
Consolidated
statement
of prot
nancial
position
as
or
loss
for
the
year
ended
at 31 December 2014
31 December 2014
Investments
in associates
Revenue
and joint ventures
Operating expenses
Liabilities directly associated
Impairment and other losses
with the assets classied as
Sharefor
ofsale
results of associates
held
and joint ventures
Trade and other receivables
Adj for a
subsidiary
classied as
held for sale
AED '000
(172,320)
Mobily
Restatement
(172,320)
AED '000
48,766,875
5,822,453
(31,832,583)
(258,477)240,583
(749,064)-
(931,963)
(931,963)
1,126,517
(461,065)
17,376,549
--
(178,108)-
(621,732)
(57,970)-
504,785
(639,173)
17,318,579
Operating
prot before
Other
receivables
- non current
federal
royalty
Deferred tax liabilities
803,828
15,541,264
4,740,292
(17,894)-
(178,108)
(37,453)
(563,762)
(113,838)-
240,066
15,231,424
4,702,839
Trade
other payables
Federaland
royalty
Provision
Operating prot
30,988,248
(5,333,084)
1,862,566
10,208,180
(30,670)
30,671
113,838
(83,167)
30,770,852
(5,305,530)
1,976,404
9,925,894
Non-controlling
interests
Finance and other
income
Reserves
Finance and other costs
Retained earnings
Prot before tax
18,650,688
2,653,494
26,852,704
(1,736,511)
7,517,339
11,125,163
(17,894)(567)
223
(18,238)
(186,726)
(3,117)
(181,225)-(524,885)
(181,225)
(656,568)587,667
(118,613)
(83,167)
17,994,120
2,652,927
27,440,371
(1,736,288)
6,873,841
10,842,533
(1,153,576)
14,792
8,905
(35,446)
(1,165,325)
9,971,587
(3,446)
(172,320)
(118,613)
9,677,208
7,062,009
(118,108)
1,749,839
3,446
-
(570,956)
(28,548)
6,491,053
(114,662)
1,721,291
Taxation
Consolidated statement of
nancial
Prot forposition
the yearas
from
at
31 December
2013
continuing
operations
Investments in associates
and joint ventures
Loss from discontinued operations
Deferred tax liabilities
(118,108)
3,446
(114,662)
9,853,479
(172,320)
(118,613)
9,562,546
Trade
other
payables
for the
year
Prot and
Retained
earnings to:
Prot attributable
21,164,411
9,853,479
4,359,024
--
(189,843)
(172,320)
(352,565)
(118,613)-
20,974,568
9,562,546
4,006,459
8,892,019
(172,320)
8,601,086
8,892,019
(172,320)
961,460
9,853,479
(172,320)
961,460
9,562,546
Non-controlling interests
961,460
9,853,479
(172,320)
(118,613)
-
8,601,086
Non-controlling interests
(118,613)
-
(118,613)
961,460
9,562,546
(749,064)
(104,345)
4,969,044
(621,732)
504,785
(118,613)
Consolidated statement of
nancial position as
at 31 December 2014
Investments in associates
and joint ventures
Liabilities directly associated
with the assets classied as
held for sale
Trade and other receivables
Other receivables - non current
Deferred tax liabilities
Trade and other payables
Provision
Non-controlling interests
Annual Report 2015
120Reserves
Retained earnings
Consolidated statement of
nancial position as
at 31 December 2014
5,822,453
1,126,517
(749,064)
(104,345)
(621,732)
4,969,044
504,785
17,376,549
(57,970)
17,318,579
803,828
(563,762)
240,066
4,740,292
(37,453)
4,702,839
30,988,248
(186,726)
(30,670)
30,770,852
Investments in associates
and joint ventures
Liabilities directly associated
with the assets classied as
held for sale
Trade and other receivables
Other receivables - non current
Deferred tax liabilities
Trade and other payables
Provision
5,822,453
1,126,517
17,376,549
(57,970)
17,318,579
803,828
(563,762)
240,066
4,740,292
(37,453)
4,702,839
30,988,248
(186,726)
(30,670)
30,770,852
1,862,566
113,838
1,976,404
1,862,566
113,838
1,976,404
18,650,688
(656,568)
17,994,120
Non-controlling interests
18,650,688
(656,568)
26,852,704
587,667
27,440,371
Reserves
26,852,704
17,994,120
Group
121
27,440,371
7,517,339
(524,885)
(118,613)
6,873,841
7,517,339
(524,885)
(118,613)
6,873,841
Retained earnings
Etisalat
587,667
Notes:
1. Each shareholder is entitled to attend or to delegate
a proxy who is not a Board Member to attend at the
Annual General Assembly Meeting on his/her behalf by
virtue of a written special authorization made pursuant
to the delegation form attached with the invitation
dispatched by mail. All delegation forms shall be
submitted to the Securities Department of the National
Bank of Abu Dhabi, P.O. Box 6865-Abu Dhabi, latest by
23rd March 2016. Only original delegation forms will be
accepted. Proxy holders representing the shareholders
who are countable in quorum of the Annual General
Assembly Meeting (except for Government Shareholder)
may not represent, in this capacity, more than 5% of the
Companys share capital. Minors and those who have
no legal capacity shall be represented by their legal
representatives.
122
www.etisalat.com
124