Mobile Telecommunications Company Saudi Arabia · TADAWUL:7030
Mobile Telecommunications Company Saudi Arabia — Zain KSA — H1 2023 Earnings Presentation
28 slides from Mobile Telecommunications Company Saudi Arabia's earnings presentation, 2023
Slide 1: Welcome to Zain KSA H1 2023 Earnings call
Welcome to Zain KSA H1 2023 Earnings call
Slide 2: Disclaimer
Disclaimer Expectations and projections regarding future performance of the company referenced in this presentation are ‘forward- looking statements’ within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at the time of their pre
Slide 3: Introduction
Introduction Zain KSA established itself as a reliable telecom operator and a digital service provider whose services include telecom services, 5G network, FinTech (Financial Technology), cloud computing, IoT solutions, fiber services, drones, and many others. Zain KSA is committed to the continuous
Slide 4: Our Values
Our Values Agility We adapt quickly to change and make timely decisions Belonging We believe that we are one family and Zain is our second home Customer centric We strive to provide a distinctive service that exceeds customers' expectations Inclusion We accept our difference and believe that our div
Slide 5: Our Strategic Pillars
Our Strategic Pillars The below eight pillars come as a natural evolution and extension of the strategy Zain KSA has successfully delivered on as well as the expectations of stakeholders. Creative positive impact Generate value from and for Adopting sustainable and Leveraging areas of strength, outc
Slide 6: Our Shareholder Structure
Our Shareholder Structure Zain Group provides Zain KSA with operational, technical, brand financial support. Founding Shareholders 01 Zain Group 37.04% 02 HRH Prince Saud Bin Fahad Bin Abdulaziz Al Saud 2.98% Founders 03 Saudi Plastic Factory Est. 2.93% 47% 53% 04 HH Prince Sultan Bin Mohammed Bin S
Slide 7: Our Financial History
Our Financial History Covid 19 Pandemic Financial History 10,000 9,075 8,386 7,917 7,901 8,000 7,306 7,531 6,699 6,741 6,927 6,404 6,523 6,244 5,934 6,000 4,000 3,004 2,000 505 332 485 280 550 12 231 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (972) (980) (2,000) (1,
Slide 8: Our Board of Directors
Our Board of Directors Bader Nasser Al Kharafi Martial Caratti Ossama Matta Saud Abdullah AlBawardi Mr. Martial Caratti is a member of the Board Vice Chairman Mr. Matta was appointed the key role Mr. AlBawardi has more than 15 years of Directors of Zain Group since November A renowned regional econo
Slide 9: Our Management Team
Our Management Team Mehdi Khalfaoui Eng. Saad Al-Sadhan Eng. Abdulrahman Al-Mufadda Maher AlFawaz CFO CBWO CTO CSO Mr. Khalfaoui was appointed CFO in Feb-2017. Eng. Al-Sadhan’s professional career spans over 19 Mr. AlMufadda has more than 19 years in the Maher has over 18 years in the Network Engine
Slide 10: Operational Update
Operational Update Eng. Sultan Bin Abdulaziz AlDeghaither CEO
Slide 11: 2023 H1 Financial Results
2023 H1 Financial Results ony) ZQiN 687 221% 4.8 million SAR growth in net profit billion SAR net profit compared to H1 2022
Slide 12: Zain KSA Today
Zain KSA Today 8.7 Million 1,543 Zainers 249 Shops 41% Data Revenue 5,391 POS Customers Woman: 19 % (Excluding SMS & VAS) Local: 86% 9,952 Total number of sites 64 SAR 16,523 TB/Day 99% 98% 94% 62.5% 566 Cities covered by 3G Blended ARPU Average daily data traffic 2G 3G 4G 5G 479 Cities covered by 4
Slide 13: Forbes Ranking
Forbes Ranking Zain KSA advanced 15 places in Forbes Middle East’s Top 100 Listed Companies 2023, to 79th place. The new ranking strengthens Zain KSA’s regional position as a leading telecom company. 13
Slide 14: Al-Rajhi bank MoU
Al-Rajhi bank MoU Zain KSA and Alrajhi Bank have recently signed an MoU for a strategic partnership to enhance cooperation and offer customers rewards and services 14
Slide 15: Riyadh Third Health Cluster MoU
Riyadh Third Health Cluster MoU In partnership with RTHC we launched the virtual call center, which aims to raise the level of quality of communication with the beneficiaries of medical services. 15
Slide 16: Awards
Awards oO) ZAIN eaais "MMA SMARTIES" (40 4:49 dain Osipilas jg Cigdls BySie Byluguti Hea Yaqoot takes home two Awards Gold & Silver from “MMA SMARTIES” as the most innovative marketing campaign A 7 Ow) Zain
Slide 17: Tamam Growth
Tamam Growth Tamam is a Fintech company established in 2019 in KSA and providing consumer micro-lending services in the kingdom under the supervision of the Saudi Central Bank. Our continued strong growth is driven by our instant financing service without complicated documentation or visiting bank b
Slide 18: Red Sea Global partners with Zain KSA
Red Sea Global partners with Zain KSA 18
Slide 19: Sustainability Rating
Sustainability Rating (A-) Score in the latest CDP Score Report Climate Change 2022 Corporate Social Responsibility (CSR) & Environment, Social, Governance (ESG) Metrics 19
Slide 20: Financial Update
Financial Update Mehdi Khalfaoui CFO
Slide 21: Financial Highlights
Financial Highlights GROSS PROFIT [Million SAR] REVENUE [Million GROSS MARGIN % SAR] 69% 62% 62% 59% 57% 58% +9% +15% 0% 5,445 5,315 9,075 4,885 7,917 7,901 +8% +233 (+186) +19% -1% +5% 2,206 2,422 2,392 1,415 1,484 1,251 2020 2021 2022 Q2 2022 Q1 2023 Q2 2023 2020 2021 2022 Q2 2022 Q1 2023 Q2 2023
Slide 22: Financial Highlights
Financial Highlights Financial Debts [Million SAR] OPERATIONAL INCOME) [Million SAR] Financing cost [Million SAR] 12.000 898 11.268 10.909 13% 11.000 10.233 10.233 800 12% 11% 10.000 9.259 9.233 11% 9.000 700 9% 8.000 5.852 6.193 1,089 8% Financing Cost * 3.836 5.691 5.691 600 1,002 7.000 Borrowings
Slide 23: Financial Highlights
Financial Highlights CASH BALANCE [Million SAR] -52% CAPEX, CAPEX/ REVENUES [Million SAR] 1,424 37% 2,943 1,103 Capex - Gross Addition 689 Capex/Revenue 512 436 13% -64% 375 915 1,013 10% 8% +68% 173 2% 3% 2020 2021 2022 Q2 2022 Q1 2023 Q2 2023 37 62 2020 2021 2022 Q2 2022 Q1 2023 Q2 2023 EBITDA – C
Slide 24: Company Debt
Company Debt With financial support from financial institutions, shareholders, and the Ministry of Finance. Zain Saudi Arabia borrowings summary Outstanding Amount in Description Party Million SAR Murabaha Facility Arrangement (MFA) Consortium of eight banks 5,518 Government Loan (MoF) Ministry of F
Slide 25: Company Debt
Company Debt Evolve cost transformation initiatives. Taking Proactive Financial Measures • Opportunity to approach business differently • Increased capex guidance while • Increasing efficiencies to lower operating costs implementing efficient cost measures • Aligning businesses to changing customer
Slide 26: Q&A
Q&A
Slide 27: More Information
More Information Investor Relations For more information, please visit our website or contact us through: investor.relations@sa.zain.com +966 59 244 8888 Investor Relations app https://sa.zain.com/en/investors/share-statistics 27
Slide 28: Thank You
Thank You All rights reserved - © Zain KSA