Saudi Telecom Co. · TADAWUL:7010
Saudi Telecom — Q4 2020 Earnings Presentation
47 slides from Saudi Telecom's earnings presentation, 2021
Slide 1: Investor Presentation Q4 2020
Investor Presentation Investor Relations Q4, 2020
Slide 2: Index
Investor Presentation 2020 | stc group Index I. Macro Environment 3 II. KSA Telecom Market Overview 8 III. stc Profile 12 IV. Strategy Overview 26 V. Business Overview 29 VI. Financial Highlights 38
Slide 3: I. Macro Environment
I. Macro Environment
Slide 4: Domestic Macroeconomic Indicators
Domestic Macroeconomic Indicators Investor Presentation 2020 | stc group GDP & Government Budget: Saudi Unemployment Rate (15+): Data on 9M 2020, real GDP showed that the economy decreased by 4.2% Y-o-Y. During GaStat’s latest labor market release for Q3 2020 shows that Saudi Q3 2020, the oil sector
Slide 5: Domestic Macroeconomic Indicators Cont.
Domestic Macroeconomic Indicators Cont. Investor Presentation 2020 | stc group Nominal GDP of World’s Major Economies: Population: (KSA ranked #18 out of the top largest 20 economies in 2019) 33.41 34.21 (Mn) 35 32.55 10% 31.02 31.79 $ 30.77 13.10 12.65 30 11.71 12.14 5,082 10.07 10.24 7% 5.39% 25 3
Slide 6: Domestic Macroeconomic Indicators Cont.
Domestic Macroeconomic Indicators Cont. Investor Presentation 2020 | stc group Historical Average Communication Consumer Spending (By Segmentation of Average Consumer Spending in 2018 Total Households): (By Total Households): Throughout the years, percentage of consumer spending on communication ser
Slide 7: Aligning stc Strategy with Saudi Arabia's NTP 2020 & 2030 Vision
Aligning stc Strategy with Saudi Arabia’s 2020 NTP 2020 Investor Presentation 2020 | stc group & 2030 Vision To raise our ranking on the E-Government Survey Index from our current position of 36 to be among the top five nations; Elements of stc Strategy: To increase the private sector's contribu
Slide 8: II. KSA Telecom Market Overview
II. KSA Telecom Market Overview
Slide 9: KSA & Telecom Industry (Q4 2020)
KSA & Telecom Industry (Q4 2020) Investor Presentation 2020 | stc group • Expat remittances from Saudi Arabia rise 30% to SAR 12.9 bln in November 2020. • Saudi bank loans granted to the public and private sectors increased 16% by the end of November 2020 to SAR 1.832 trillion compared to SAR 1.585
Slide 10: KSA Internet Usage
KSA Internet Usage Investor Presentation 2020 | stc group Internet Use Based on Device Perspective As of Jan 2020: # # Total Number of Active Internet Users As a Percentage Total Number of Active Mobile Internet Users As a Percentage Internet Users: 32.23 mn of Total Population: 93% Mobile Internet
Slide 11: stc Internet Performance
stc Internet Performance Investor Presentation 2020 | stc group 4G Mobile Download Speed: (Mbps) (Mbps) 100 100 80 80 60 60 40 78.2 40 78.2 72.8 66.2 52.7 61.8 51.4 45.4 20 37.9 20 0 0 Ookla Meqyas Q1-Q2 2019 Q3-Q4 2019 Q1-Q2 2020 Q3-Q4 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 4G Mobile Upload S
Slide 12: III. stc Company Profile
We are looking forward III. stc Company Profile * stc is ranked as the 3rd most valuable brand in the Middle East with a total value of SAR 34.5 bn (USD 9.20 bn) as of January 2021
Slide 13: stc at Glance (Q4 2020)
stc at Glance (Q4 2020) Investor Presentation 2020 | stc group Balance Sheet SAR GCC Ranking** #1 in KSA in Mobile Total Assets 112.58 bn #2 & Fixed Broadband A- subscribers Total stc group Total Equity 64.04 bn #1 Standard employees 19K Total Liabilities 57.22 bn #3 & Poor's & A1 Total stc KSA Debt
Slide 14: Board of Directors
Board of Directors Investor Presentation 2020 | stc group HRH. Prince Mohammed Khalid ALFaisal Mr. Rashid Ibrahim Sharif Chairman of the Board Board Member H.E. Dr. Khaled Hussain Biyari Mr. Osama Yassin Al-Khiary Board Vice Chairman Board Member H.E. Mohammed Talal Al-Nahhas Mr. Roy Chestnutt Board
Slide 15: Major Milestones
Major Milestones Investor Presentation 2020 | stc group Since Establishment, stc has Capitalized on Major Growth Opportunities 1998 2005 2007 2009 2011 2013 2015 2017 2019 Stack acquisition Acquired 60% $5 billion international Sukuk 10 million Acquisition of push- Company in MAXIS stake
Slide 16: Winning Awards
Wining Awards Investor Presentation 2020 | stc group 2010: 2017: Advertiser Excellence in the Middle East and North Africa by Dubai Linux; 7 awards (1 Grand Prix, 2 silver, 4 bronze) on creativity portrayed in advertising campaigns by Dubai Operational Excellence Award at the Global Forum for
Slide 17: Expanding Footprints Across Four Countries Has Unlocked Growth Opportunities
Expanding Footprints Across Four Countries Has Unlocked Investor Presentation 2020 | stc group Growth Opportunities 2007 Kuwait 2009 Bahrain Kingdom of Saudi Arabia 2008 Malaysia 17
Slide 18: stc 5G Technology
stc 5G Technology Investor Presentation 2020 | stc group 1st Launched 4,000 5G IoT Award Wining Commercial Towers Technology Network stc is the first telecom company Total number of 5G towers as end of The company will benefit from Internet stc group won 3 international awards launching the
Slide 19: Y-o-Y Revenue Breakdown
Y-o-Y Revenue Breakdown Investor Presentation 2020 | stc group Q4 2019 Q4 2020 stc KSA stc KSA SAR SAR 10.11 bn 11.24 bn 0 Channels by stc Channels by stc SAR SAR 4.47 bn 4.56 bn SAR 13.26 bn SAR 15.21 bn Revenue Revenue Other Operating Segments* Other Operating Segments* SAR SAR 3.69 bn 4.12 bn Eli
Slide 20: Key Credit Strengths
Key Credit Strengths Investor Presentation 2020 | stc group Largest telecom operator in the MENA region Market cap of SAR 212 bn (USD 56.53bn), and presence in 4 countries (as of 31-Dec-2020) Experienced best-in-class management team Strong financial performance Management team has signifi
Slide 21: Share Information
Share Information Investor Presentation 2020 | stc group Market Capitalization As of 31st Dec. 2020 Among Major Saudi Ownership Structure As of 31st Dec. 2020: Listed Companies : Foreign SAR Bn Ownership 304.2 5.52% 212.0 24.48% 184.0 130.1 88.7 70% 61.1 60.6 54.9 50.8 47.3 Public Investment Fund (P
Slide 22: Share Information
Share Information Investor Presentation 2020 | stc group Share Performance Vs. Telecom and TASI Index: Market Capitalization of Telecom Sector As of 31st Dec. 2020: Announcement Announcement on the Announcement on Announcement on the on the interim result of purchase of its the a sale of equity inte
Slide 23: Submarine Cable Investment & Optimized Connectivity
Submarine Cable Investment & Optimized Connectivity Investor Presentation 2020 | stc group Submarine Cables stc has given a strategic importance to establish its international network, as about 99% of the total communication # Cable System Name of Cable 99% and data transmission is carried out throu
Slide 24: Submarine Cable Investment & Optimized Connectivity
Submarine Cable Investment & Optimized Connectivity Investor Presentation 2020 | stc group Source: stc Wholesale Unit 24
Slide 25: Healthy Organization – stc's OHI Success Story Continues
Healthy Organization – stc’s OHI Success Story Continues with Hitting Investor Presentation 2020 | stc group Target Again stc OHI 2019 Entered Top Quartile 33 +6 39 +8 47 +8 55 +9 64 +7 71 +7 78 2013 2014 2015 2016 2017 2018 2019 stc Unique Success Story continues in it’s 7th year; Ranked in the
Slide 26: IV. Strategy Overview
IV. Strategy Overview wR sen ati . Sic
Slide 27: stc DARE Strategy
stc DARE Strategy Investor Presentation 2020 | stc group digitize stc accelerate performance → Instill digital mindset and unlock the potential of → Maximize shareholder returns by transforming costs and digital and analytics capabilities. monetizing assets. → Transform into an agile technology comp
Slide 28: stc Vision & Values
stc Vision & Values Investor Presentation 2020 | stc group Vision: “ We are a world-class digital leader providing innovative services and platforms to our customers in the MENA region. “ Values: 28
Slide 29: V. Business Overview
V. Business Overview
Slide 30: stc Subsidiaries, Associates & Joint Ventures
stc Subsidiaries, Associates & Joint Ventures Investor Presentation 2020 | stc group Local Subsidiaries International Subsidiaries Associate Companies Arab Satellite Communications Channels by stc 100% stc Bahrain 100% 36.6% Organization Specialized by stc 100% stc Kuwait 51.8% Virgin Mobile KSA 10%
Slide 31: Tawal
Tawal Investor Presentation 2020 | stc group Date of Incorporation: The subsidiary was founded in Q1 2018. Invested Capital: A total of SAR 2.5 billion. Subsidiary Objective: To be responsible for owning, constructing, operating, leasing and investing in the towers. stc Ownership: Since establishmen
Slide 32: Specialized by stc
Specialized by stc Investor Presentation 2020 | stc group Date of Incorporation: The subsidiary was founded in 2002. Invested Capital: A total of SAR 252 million. Subsidiary Objective: stc Specialized, is the only national licensed operator providing the business sector, and the governmental, indust
Slide 33: Channels by stc (Formerly Sale Advanced – SALECO)
Channels by stc (Formerly Sale Advanced – SALECO) Investor Presentation 2020 | stc group Date of Incorporation: The subsidiary was founded back in 2008 Invested Capital: A total of SAR 100 million Subsidiary Objective: Considered as the sales and distribution arm of stc Group, stc Channels is the le
Slide 34: Solutions by stc
Solutions by stc Investor Presentation 2020 | stc group Date of Incorporation: The subsidiary was founded in 2002. Invested Capital: A total of SR 100 million. Subsidiary Objective: To enable digital transformation to support government and private sector goals; spreading the benefits of Cloud com
Slide 35: AQALAT
AQALAT Investor Presentation 2020 | stc group Date of Incorporation: The subsidiary was founded in 2013. Invested Capital: A total of SAR 70 million. Subsidiary Objective: To develop and manage the company’s properties in all parts of the Kingdom by benefiting from the capabilities of the Saudi Tele
Slide 36: stc pay
stc pay Investor Presentation 2020 | stc group Date of Incorporation: The subsidiary was founded in 2018. Invested Capital: A total of SAR 400 million. Subsidiary Objective: stc Pay is a digital secure wallet that empowers individuals to take full control of their finances at their fingertips- anyti
Slide 37: Saudi Technology Ventures (VC Fund)
Saudi Technology Ventures (VC Fund) Investor Presentation 2020 | stc group STV is an independent VC fund with a total capital of USD 500 is anchored by stc with access to its assets (e.g., network, channels, analytics, customer base, etc.) Leading a SAR 78.75 million (USD $21 million) investment r
Slide 38: VI. Financial Highlights
VI. Financial Highlights Sic
Slide 39: Financial Highlight
Financial Highlight Investor Presentation 2020 | stc group Revenue EBITDA 14.7% 8.4% 14.6% 4.3% 2.2% 58.95 23 -1.3% 22.18 21.26 15.21 21 14.92 14.88 54.37 6.0 65% 50% 5.8 5.79 5.72 19 60% 13.93 5.6 55% 42% 17 13.26 5.4 5.33 5.34 50% 5.2 15 4.99 45% 39.1% 5.0 37.6% 34% 40% 13 4.8 35% 4.6 37.6% 38.2%
Slide 40: Financial Highlight Cont.
Financial Highlight Cont. Investor Presentation 2020 | stc group Revenue EBITDA +1.4% +2.0% 54.37 21.26 52.67 19.84 51.96 19.29 50.65 50.66 18.43 18.03 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Operating Profit Net Profit +1.0% +2.9% 12.25 12.48 10.78 10.66 11.86 10.02 10.99 9.26 9.95 8.90 2
Slide 41: Financial Highlight Cont.
Financial Highlight Cont. Investor Presentation 2020 | stc group Performance: 81 95% 17.27% 17.31% 38.17% 39.11% 16.45% 36.38% 37.62% 15.93% 58.95 61 54.37 50.66 51.96 65% 9.23% 9.86% 9.01% 9.04% 41 23.57% 22.96% 35% 21.69% 21.74% 21 19.77% 20.74% 19.62% 18.80% 1 5% 2017 2018 2019 12M 2017 2018 2019
Slide 42: Financial Highlight Cont.
Financial Highlight Cont. Investor Presentation 2020 | stc group Total Capital Expenditure (Capex): CFO/ Capex Ratio: 12 25% 10 30 2.61 3.00 20% 20.91% 8 25 2.40 18.78% 18.39% 2.01 15% 1.96 6 15.67% 20 1.80 10% 15 4 0.87 1.20 5% 10 2 7.94 9.76 11.37 10.84 5 0.60 0 0% 15.92 19.13 9.92 28.34 2017 2018
Slide 43: Financial Highlight Cont.
Financial Highlight Cont. Investor Presentation 2020 | stc group Dividends Distribution: Recently announced, the company has approved its dividend policy for the next 11.09 three years starting from the 4th quarter 2018 (as approved by the board of 10.78 * 90% 11 10.66 directors); 79.84% 74.21% 75
Slide 44: Financial Highlight Cont.
Financial Highlight Cont. Investor Presentation 2020 | stc group Stability of Dividend Distributions: Annualized Capital Gains: Over the last six years, stc distributed a total of SAR 52 billion to investors through a stable 1 year 5.16% dividend distribution in each quarter (SAR 1/share) which indi
Slide 45: Sukuk Programs Issued by stc
Sukuk Programs Issued by stc Investor Presentation 2020 | stc group Item International Sukuk Program Domestic Sukuk Program Issuing Type International Sukuk (senior, unsecured sukuk) Domestic Sukuk Currency USD denominated SAR denominated Program Amount USD 5 Bn SAR 5 Bn To support the execution o
Slide 46: Disclaimer
Disclaimer Investor Presentation 2020 | stc group This presentation has been prepared as an informative guide that might assist interested parties in gaining an insight into the history and background of telecommunications within Saudi Arabia, as they relate to the Saudi Telecom Company (stc). Furth
Slide 47: Let's create the future together
Let`s create the future together Thank you
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