Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — e& (Emirates Telecommunications Group Company PJSC) — Investor Day (March 2023)
144 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's investor day presentation, Mar 7, 2023
Slide 1: e& Capital Markets Day 2023
e& Capital Markets Day 2023 07 March 2023 e& Head Office Abu Dhabi, United Arab Emirates
Slide 2: Agenda
Agenda 9:00 – 9:15 Introduction Nazih Hassanieh, Head of Investor Relations – e& 9:15 – 9:45 Business Overview & Strategy Hatem Dowidar, Group Chief Executive Officer – e& 9:45 – 10:15 Financial Overview Karim Bennis, Group Chief Financial Officer – e& 10:30 – 11:00 etisalat by e& UAE Masood M. Shar
Slide 3: Disclaimer
Disclaimer Emirates Telecommunications Group Company PJSC (“e&” or the “Company”) and its subsidiaries have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any n
Slide 4: Business Overview & Strategy
Business Overview & Strategy Hatem Dowidar Group Chief Executive Officer – e&
Slide 5: Our Vision
Our Vision From Regional Telecom Giant To Global Technology Group
Slide 6: We are the Region's Most Valuable Portfolio of Telecom Brands
We are& We are the Region’s Most Valuable Portfolio of Telecom Brands Our brand transformation yielded several prestigious Brand Finance accolades, and drove the total portfolio value to over $14 Bn Market Capitalisation Aggregate Subscribers Geographical Expansion The Largest in the Region by Value
Slide 7: Our Group
Our Group Mobile & Fixed Services A footprint of population of ~600mn, with around 163mn subscribers UAE Pakistan KSA Morocco Afganistan Operations in 16 countries, 13 out of which Mauritania Mali Burkina Faso Gabon Egypt are ranked as first or Morocco second in terms of value UAE Pakistan share Mal
Slide 8: Our Verticals
Our Verticals Global Our verticals are Nations Pride Regional Telecom Giant growing through TechCo building/acquiring new capabilities and ready for being carved out e& enterprise: Accelerate growth in cloud, cyber and IoT and expand internationally through new, fast-growth business models etisalat
Slide 9: We are a global technology and investment group
We are& We are a global technology and investment group drawn to the future and the limitless possibilities we see in it. 9
Slide 10: Overall Group Results
Overall Group Results The Group closed the year recording outstanding full year performance exceeding Revenue EBITDA Net Profit profitability expectations withstanding operating environment challenges such as inflationary Reported margin of Reporting a +4.7% y-o-y pressures, competitive AED 52.4 gro
Slide 11: Key Highlights: Telecom Verticals
Key Highlights Telecom Verticals To spearhead the growth of already existing and lucrative telco verticals Revenue growth of 3.2% in 2022 Revenue growth of 5.6% in constant accelerated by connectivity and digital currency in 2022 driven by most key lines markets Continued investment in 5G roll-out a
Slide 12: Key Highlights: Digital Verticals
Key Highlights Digital Verticals Carved out and scaling new digital verticals to expedite techco vision Joint venture offering public cloud Acquisition of majority shares of managed and professional services in STARZPLAY, a leading Subscription the Middle East, Turkey, Africa and Video on Demand ser
Slide 13: Strategic Investment: Vodafone
Strategic Investment ▪ Vodafone is an attractive business at the heart of digital communications in ▪ Initially acquired 9.8% . Europe with strong portfolio in next generation services such as IoT, Market conditions and share price movements Commercial telematics and B2B solutions allowed e& to incr
Slide 14: ESG at a Glance
ESG at a Glance e& maintained the MSCI ESG Rating at “A”, and as part of our strategy we declared our commitment to achieving net zero in the UAE for Scope 1 and 2 emissions by 2030 We continue to bolster MSCI ESG Rating our ESG commitments Rating on 7-point scale locally and globally, which are ref
Slide 15: Our 2030 Strategy
Our 2030 Strategy Our Vision To be a leading global TechCo Group We have great ambitions to move from a stable topline to sustained growth over the next eight years, abiding by our Double Down on Core: Diversify Portfolio: vision and our four • Evolve core business in UAE • Expand geographically str
Slide 16: Final Thoughts
Final Thoughts 2022 was another excellent year for the Group, despite the unprecedented economic challenges We designed our strategy to transition e& from topline stability to sustained growth and to achieve our vision “To be a leading global TechCo Group” e& will continue to invest in telco to gene
Slide 17: Financial Overview
Financial Overview Karim Bennis Group Chief Financial Officer – e&
Slide 18: FY 2022 at a Glance
FY 2022 at a Glance Revenue EBITDA Reported Revenue Growth Y-o-Y (1) Reported EBITDA Growth Y-o-Y (1) AED 52.4 bn + 4.7% AED 26.2 bn +3.7% -1.7% Y-o-Y (Reported) EBITDA Margin 50.0% -1.9% Y-o-Y (Reported) Net Profit Attributable to Shareholders AED mn +7% 10,007 The highest net profit 9,317 9,027 in
Slide 19: 2022 Guidance
2022 Guidance Key Metrics FY 2022 Guidance Status Reported Figures Achieved all guided figures reflecting profound resilience in times of turbulent macro- economic headwinds Low-to-mid single-digit Revenue Y-o-Y Growth in +4.7% Constant Currency (%) growth EBITDA Margin (%) 50%-51% 50.0% EPS (AED) ~
Slide 20: Group Revenue
Group Revenue Revenue (AED m) & YoY Growth (%) Sources of Revenue Variance (AED m) Strong revenue growth at constant currency +5.8% 972 +4.7% 13,613 12,973 13,135 53,342 52,434 53,342 • Strong performance in UAE attributed to 269 52,434 4% 3% -1,633 -127 population growth and -389 strong business ac
Slide 21: Group EBITDA
Group EBITDA EBITDA (AED m) & Margin (%) Sources of EBITDA Variance (AED m) Robust EBITDA margin despite inflationary pressure +3.7% 719 -0.4% 6,573 6,714 26,721 26,202 • EBITDA in constant 6,042 26,721 52% 97 currency increased yoy by -913 -192 26,202 3.7% 48% 50% 50% -230 46% • Steady margin at 50
Slide 22: Group CAPEX
Group CAPEX CAPEX (AED m) & Intensity Ratio (%) Sources of CAPEX Variance (AED m) Invest in building premium networks 438 11 8,362 2,937 2,950 8,362 44 • Lower CAPEX spend (-4%) 8,037 with relatively stable 16% 15% 167 8,037 capex intensity ratio 22% 1,613 22% -986 • Capital spend in the UAE 12% foc
Slide 23: Sound Financial Position
Sound Financial Position Cash & Cash Equivalents (AED m) Total Debt (AED m) The Group maintained a position of balance sheet 47,954 strength, despite robust 31,345 32,839 expansionary measures 28,575 26,701 25,732 • Increase in cash balance supported by growth in operating cash flow and efficient wo
Slide 24: Group Debt Profile
Group Debt Profile Borrowings by Operations (AED m) Borrowings by Currency (%) Diversified debt profile 37,309 • Total debt of AED 48.0 Euro 18% AED 16% billion PKR 7% • 78% of debt is at Group Others level mostly in bank 7% MAD borrowings 5,893 6% 3,467 USD 1,284 46% • 61% of debt is in USD/AED Gro
Slide 25: Dividends
Dividends Cash Dividends (AED m) Dividends per Share (AED) Balanced shareholders remuneration with consistent 6,954 6,954 6,954 0.80 0.80 0.80 history of dividend payment 3,477 3,477 3,477 • Proposed final dividends of 40 fils per share bringing the full year 3,477 3,477 3,477 dividends to 80 fils p
Slide 26: FY 2023 Guidance
FY 2023 Guidance Positive Outlook for 2023 FY 2022 Actual FY 2023 Guidance Revenue Growth Y-o-Y Low to mid single digit In Constant Currency +4.7% (%) growth EBITDA Margin (%) 50.0% ~ 49.0% EPS (AED) 1.15 1.13 – 1.15 Intensity Ratio (%) 15.3% 15% - 17% Dividend (AED) 0.80 0.80 26
Slide 27: Masood M. Sharif Mahmood, CEO etisalat by e& UAE
Masood M. Sharif Mahmood Chief Executive Officer – etisalat by e& UAE
Slide 28: Financial Performance
Financial Performance Net Revenue EBITDA (AED Bn) & EBITDA (AED Bn) Margin (%) Key Headlines Strong profitable growth +3.2% +4.6% resulting from sustainable 30.2 31.2 15.5 16.2 top line growth and Increased revenue growth of 3.2% in continued Opex control 2022 vs. 1% in 2021 , demonstrating 1 sustai
Slide 29: Financial Performance: Sources of Growth
Financial Performance Sources of Growth – 2022 Vs. 2021 (AED Bn, %) Driven by value capture of 31.16 high value growth 0.31 Revenue growth of 3.2% in 0.12 -0.09 2022 accelerated by connectivity and digital lines FY 2022: 0.64 71% Total revenue share 67% Mobile revenue share 30.18 76% Fixed revenue s
Slide 30: Key Achievements
Key Achievements • High Value: Enriched offer i.e. elife Ultra • Launched GoChat Messenger – ~1m MAUs Consumer • Mid/Low Value: Differentiated offer i.e. 5G • Integrated elGrocer within Smiles – 29% YoY Core and powered Home Wireless growth in Smiles subscribers Key achievements across Digital comme
Slide 31: Achievements: Network Speed
Achievements etisalat by e& Fixed Broadband Speed Evolution (Mbps) Key technology achievements +338% (+179) Continued investment in 5G • etisalat by e& maintained fixed broadband speed +83% Mobile Network (+106) leadership in UAE via a >2x speed increase during +59% roll-out and enhancements of +50%
Slide 32: Macro-economic Outlook
Macro-economic Outlook Solid UAE macro-economic 3.9% outlook Real Growth is expected in 2023 ~10.5M Expected to grow by 2% in 2023 Population Provides a platform for GDP growth for the UAE ICT Sector Growth is expected in 2023 with 3.5% 3.0% Brent price per Barrel expected to Forecasted for 2023 – 1
Slide 33: UAE ICT Sector
UAE ICT Sector UAE ICT sector to be shaped by Key trends Core BusinessSet for Digital Services Offer 5G to Scale Providing growth Continued Growth Huge Potential Further opportunities in both the core and digital adjacent sectors Driven by increasing Potential to disrupt and scale Driving opportunit
Slide 34: etisalat by e& strategy
etisalat by e& strategy To be the customer champion in a hyper-connected digital world Grow-Transform-Scale-Excel Our 2030 strategy will enable 2030 Vision us to maximize value for all our stakeholders by Utilize technology, analytics and innovation to foster ideas and deliver sustainable and amazin
Slide 35: Final Thoughts
Final Thoughts We have reinforced our unparalleled differentiating strengths (network, CX, value propositions, customer relationships) to deliver strong, sustainable profitable growth The core business is set for further growth supported by solid macro-economic outlook and next-generation connectivi
Slide 36: Mikhail Gerchuk, CEO e& international
Mikhail Gerchuk Chief Executive Officer – e& international
Slide 37: International Overview
International Overview Acquired in 2014 Launched in 2006 Launched in 2007 e& is present in 15 countries e& stake: 53% e& stake: 66% e& stake: 100% outside of the UAE across the Position: #1/3 in Morocco Position: #2/4 in Egypt Position: #1/5 in Afghanistan Middle East, Africa and Asia Moov in 10 cou
Slide 38: International Contribution
International Contribution Revenue Breakdown (FY 2022) Other 2% International OpCos Other Pakistan contribute significantly to the Group 13% e& International 39% 2% • Ambition is to grow the AED 52 B AED 20 B size of the international 59% Egypt 24% 60% portfolio through organic etisalat by e& MT Gro
Slide 39: Macroeconomic Outlook
Macroeconomic Outlook 2022 posed significant macroeconomic challenges for international OpCos Morocco Egypt Pakistan Afghanistan Inflation 8% 21% 25% 30% (YoY, monthly) LCY vs USD -11% -37% -22% +16% (Jan to Dec’22) Interest Rates 2.50% 16.75% 16.00% n.a. (Jan to Dec’22) + 100bps +800 bps +625 bps •
Slide 40: International Growth
International Growth 2022 posed significant Revenue in constant currency EBITDA and EBITDA margin in constant currency Steady growth in revenue (AED B, 2020-2022 at 2020 FX rates) (AED B, %, 2020-2022 at 2020 FX rates) and EBITDA achieved, when normalized for FX Morocco Morocco +5% 26% 28% • 5% Reve
Slide 41: Capital Investment
Capital Investment We continued to invest Capital intensity Key investments in 2022 across our footprint, (CAPEX as a % of Revenue, excluding spectrum and licenses) increasing our capital intensity year-over-year 4G rollout and upgrades across all OpCos, and extending 5G coverage in KSA 23.8% 18.8%
Slide 42: OpCo Growth
OpCo Growth Despite headwinds, we Change in Revenue Key levers driving OpCo growth managed strong top-line (% in LCY, 2022 YoY) growth across our regions: 19 • Grew revenue by >5% in Clear strategy for each OpCo, local currency in all OpCos aligned with e& strategy (except MT Group) • Gain in value
Slide 43: MT Group Key Achievements
MT Group Key Achievements MT Group Revenue (MAD B) 2022 Actions 0% MT Group had a challenging • Cost control and organic growth 36.8 35.8 35.7 year with macroeconomic from Moov Africa supported and regulatory developments impacting results strong EBITDA margin • Group topline was flat, • Acceleratio
Slide 44: Egypt Key Achievements
Egypt Key Achievements Revenue (EGP B) 2022 Actions +19% Egypt delivered strong • Ranked #1 in NPS through its 25.6 financial results in local 21.5 customer-centric approach currency 18.0 • Mobile data remains key • Remained one of Egypt’s fastest growth driver growing operators, consistently acquir
Slide 45: PTCL Key Achievements
PTCL Key Achievements Revenue (PKR B) 2022 Actions +10% Strong top-line growth was • PTCL enlarged its FTTH network 151.6 tempered at the EBITDA level 137.6 129.4 to reach 500k+ households due to macroeconomic factors achieving 200k+ subscribers • Ufone top-line growth • Expansion of 4G coverage (+7
Slide 46: Mobily Key Achievements
Mobily Key Achievements Revenue (SAR B) 2022 Actions +6% Mobily delivered strong • Extended 5G coverage to 80%+ 15.7 revenue and EBITDA growth 14.8 14.0 in 6 main cities across KSA • Revenue increase of 6% mainly driven by • Continued roll out of FTTH wholesale and B2B coverage, driving 10% revenue
Slide 47: Digital
Digital We continue to progress on Digital recharge growth across focus markets MFS transaction value across focus markets our digital agenda: (AED M, % penetration in total recharge) (AED M) • Drive usage of digital 2,500 3,000 service channels - self 3.4x +29% care app and digital recharge • Grow
Slide 48: Strategic Partnership
Strategic Partnership To enable e& customers to send/receive money through We have collaborated with mobile wallets in a seamless digital experience global partners to leverage best-in-class solutions and services across our footprint To build a digital insurance offering and allow e& subscribers to
Slide 49: Network Experience
Network Experience Network Experience Strong and continuously (Download speed, %) improving network performance across the footprint Download speed 34 Mbps -5% YoY 18 Mbps Egypt +26% YoY 10 Mbps +4% YoY +100% improvement in 2021 40 Mbps +30% YoY 3 Mbps Afghanistan +25% YoY Source: Opensignal, Jan-De
Slide 50: Customer Experience
Customer Experience 1st Etisalat Egypt 2nd Competitor 1 1 3rd Competitor 2 We continue to lead in 4th Competitor 3 customer experience in all Egypt our key markets Q1 Q2 Q3 Q4 1st Ufone 2nd Competitor 1 1 3rd Competitor 2 4th Competitor 3 Q1 Q2 Q3 Q4 1st Mobily 1 2nd Competitor 1 3rd Competitor 2 Q1
Slide 51: Synergies
Synergies Tangible synergies realized across OpCos by • Leveraging scale and scope of e& • Leveraging resources and capabilities Commercial Technology Carrier & Wholesale • Sharing knowledge, experiences and best practices • Centers of excellence • Volume pooling and joint Incremental revenue enhanc
Slide 52: AI Capabilities
AI Capabilities Incremental Revenue from AI (AED M) We use our AI expertise to We run 200 machine learning >3x drive enhanced revenue and models customer experience across Machine learning our OpCos drives incremental Our AI capabilities include revenue 2019 2020 2021 2022 ~6% cutting-edge algorithm
Slide 53: Partner Networks
Partner Networks e& international launched Key services on offer: partner network program •Customer Value Management leverage e& capabilities and create value •Procurement services •Carrier & Wholesale Signed MoU with Tunisie Telecom as first partner Going forward, focus is on expanding scale and sc
Slide 54: Way Forward
Way Forward Strategy in place to grow the portfolio of international investments, maximizing value creation for the Group Lead in organic Expand Accelerate digital Drive scale growth internationally services synergies • NPS leadership, with • Execute M&A focused • Leverage telco • Expedite procureme
Slide 55: Salman AlBadran, CEO Mobily
Salman AlBadran Chief Executive Officer – Mobily
Slide 56: Saudi Arabia is a Key Market
Saudi Arabia is a Key Market Population by Nationality (millions, %) Households1 by geotype (millions) +2.2% +2.2% 40 35.0 36.2 37.5 8 33.6 32.9 34.0 6.3 6.5 6.7 15.5 6.0 6.0 6.1 12.6 11.7 12.6 13.4 14.4 6 0.9 0.9 (41%) 0.9 0.9 0.9 0.9 (38%) (36%) (37%) (38%) (40%) 20 4 4.5 21.0 21.2 21.4 21.6 21.8
Slide 57: Saudi Regulatory and Telecom Environment
Saudi Regulatory and Telecom Environment Next Spectrum Macro KSA Internet Generation Trading Indicators Speeds Wi-Fi Regulations Annual Inflation Saudi Arabia's mobile and CST published the +3.3% in December 20221 CST has performed the first fixed broadband median Spectrum Trading global live demo o
Slide 58: Mobily's Year In Review
Mobily’s Year In Review May 31 Signed a strategic MoU with Telecom 22 MSCI ESG index upgraded Mobily June 10 rating to BBB in the rating round of May Egypt to build the first direct bilateral submarine cable system linking the Kingdom with Egypt January 18 2022 Partnered with The Diriyah E-prix June
Slide 59: Key Business Highlights
Key Business Highlights Extended 5G Solidified position as a Award winning Market-leading coverage to more than service provider for network recognized as technologies 80% in 6 main cities Internet of Things #1 for social media across the Kingdom (IoT), cloud and gaming computing, and data centers E
Slide 60: Strategic Pillars
Strategic Pillars GAIN and our Stakeholders Market Businesses Market Consumers Business Gain Partners confidence of the market Gain attention of the businesses Gain confidence of the market Gain loyalty of the consumers Gain interest of the business partnersEmployees Regulator Gain respect of CITC G
Slide 61: Strategy and Achievements
Strategy and Achievements 2022 Achievements • Consumer Revenues: +1.0% YoY • G GROW core revenues • Business Revenues: +14.5% YoY Wholesale Revenues: +20.2% YoY PURPOSE To be the Better Choice to • Outsourcing Revenues: +44.2% YoY Unlock Possibilities • Launched Mobily Pay • Partnered with Cisco to
Slide 62: Vision For The Future
Vision For The Future Expand 5G rollout and Increase market share network coverage Evolve into the Achieve total experience TMT company Repositioning to be a leadership of the future leader in new trends Transform the business to Ensure commitment to address new opportunities achieve ESG performance
Slide 63: Sustainability at Mobily
Sustainability at Mobily Aligning with National and International Frameworks Saudi Vision 2030 Saudi ICT Global Reporting Saudi Green Initiative Strategy 2023 Initiative Our Contribution to the Sustainable Development Goals work ESG 2022 Performance at a Glance Successful Launched the first Launched
Slide 64: Performance Highlights
Performance Highlights “Empower the Digital Economy to Unlock Possibilities” Strong achievement in our financial KPI’s: Robust revenue growth drive the growth of the year: • Highest annual Revenues, EBITDA, and Net Income levels • Consistent growth in Business, Wholesale, and Consumer since 2014 uni
Slide 65: Key Financial Highlights: Resilient Revenue Growth
Key Financial Highlights | Resilient Revenue Growth Revenues EBITDA and EBITDA Margin (In SAR Million) (In SAR Million) +5.6% +10.4% EBITDA Margin% 15,669 6,161 14,046 14,834 5,581 13,450 5,350 4,947 37.6% 39.3% 36.8% 38.1% 2019 2020 2021 2022 2019 2020 2021 2022 Achieved the highest level of revenu
Slide 66: Key Financial Highlights: Strong Cash Generation
Key Financial Highlights | Strong Cash Generation CAPEX and CAPEX-to-revenues % Operational Cash Flow (EBITDA – CAPEX) (In SAR Million) (In SAR Million) +16.6% CAPEX/Revenues% +0.1% 4,067 2,760 2,792 3,489 2,092 2,093 2,558 20.5% 19.9% 2,187 14.1% 13.4% 2019 2020 2021 2022 2019 2020 2021 2022 CAPEX
Slide 67: Key Financial Highlights: Ongoing Deleveraging
Key Financial Highlights | Ongoing Deleveraging -15.9% 12,128 11,693 11,973 11,003 -7.3% 10,199 Net Debt and 2.17x 2.06x 2.06x 1.86x 1.66x Net Debt/EBITDA (In SAR Million) 0.0% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net Debt and Net Debt/EBITDA improvement: ▪ Strong downtrend in Net Debt/EBITDA rat
Slide 68: Key Financial Highlights: Sustained Profitability
Key Financial Highlights | Sustained Profitability +54.6% 1,657 Net Income 1,072 (In SAR Million) 783 31 2019 2020 2021 2022 Highest level of net income in the last 9 years Net Income increased by 54.6%, on the back of: ▪ Robust and healthy revenue growth of 5.6% ▪ Cost discipline and strong EBITDA
Slide 69: Hazem Metwally, CEO etisalat by e& Egypt
Hazem Metwally Chief Executive Officer – etisalat by e& Egypt Egypt
Slide 70: Key Messages
Key Messages Despite of 2022 economic challenges, IMF expecting medium term positive outlook ICT showed a solid performance in 2022, highest growing sector for the fourth year in a row supported by telecom market growth, government focus on digitization, infrastructure investments and enterprise gro
Slide 71: EM 2022 performance
EM 2022 performance Progressing steadily to maximize shareholders’ value by enhancing company business drivers 2022 2022 2022 2022 26 % 30 % 26 % 0.51x EBITDA Net profit Free Cash Net debt / Growth Growth2 flow3 EBITDA 2022 Growth 0.55 x in 2021 19 % REVENUE1 2022 2022 2022 2022 Growth 43.7 % 16 % 2
Slide 72: Country Overview
Country Overview IMF medium term positive outlook 2022 a challenging year Market features 2023 2024 2025 2022 Macro-economics Competition Inflation % 16% Fierce market competition with international 11% 8% GDP brand names; in addition to TE’s sole control over $475bn in 2022 being the 3rd largest Ar
Slide 73: Industry Overview
Industry Overview The landscape of the Egyptian ICT sector continues to show promise & opportunity Telecom Market Digitization Enterprise Digital & Fintech OV E R V IE W Mobile market sustains One of the main enablers & Enterprise growth supported New revenue streams to strong growth of ~18% in oppo
Slide 74: Competitive Landscape
Competitive Landscape EM maintain high revenue growth and remarkable EBITDA margin Value Share EBITDA Margin orange vodafone WE 19.1 % 11.5 % 19.2 % ~EGP 3.7 bn REVENUE REVENUE REVENUE MOBILE GROWTH GROWTH GROWTH REVENUE** 2021 29.1% 41 % 23.5% NA 43.8% 46% 3.6% NA 2022 29.4% 43.7 % 22.2% NA 44.2% 4
Slide 75: 2022 strategic partnerships and agreements
EM Performance 2022 strategic partnerships and agreements Etisalat by e& became Al Ahly’s club main sponsor and technology Etisalat by e& and Telecom Egypt signed agreements with a total value of partner for 4 years EGP ~ 15bn 10-year transmission agreement The agreement secures the required capacit
Slide 76: Commercial Performance
Commercial Performance Strong double digit growth in consumer & enterprise revenues capitalizing on differentiation and enriching customers life Mass Young Professionals Youth High Value Consumer Creating an integrated system to enrich Consumer customers’ life through relevance, connectivity ▪ Best
Slide 77: Digital Performance (1/3)
Digital Performance (1/3) Building the foundation for fintech ecosystem MY ETISALAT APP EM WALLET More than 2.5 Mn daily active unique New to my Etisalat 2 to 3x growth in number of transactions & users subscribers App. E-Coins Customer Experience 2022 Sizable double digit growth in revenue, users,
Slide 78: Digital Performance (2/3)
Digital Performance (2/3) Digital experience for customers Sales Customer care 87% of total shops installed Digitization was a key enabler in reducing the contact rate Retail Quality Management (RQM) RQM Audit point for sales agents through recording screen, user’s voice and facial expressions. 87%
Slide 79: Digital Performance (3/3)
Digital Performance (3/3) Digitizing for employees Developed an integrated wellbeing Tailored learning solutions to program (E-well) to support EM Digitalization of HR services & systems to ensure efficiency upscale our future capabilities employees Digitization Chat-bot & Robotics Digitization Empl
Slide 80: Introducing e& to the Egyptian Market
Introducing e& to the Egyptian Market Rebranding process across all channels Sponsorship of ElAhly club Completed full rebranding of stores nationwide New ATL campaigns with rebranding Rebranding elements in 3 HQ buildings and floor renovations Digitization Rebranding Sub-brands new logos Social med
Slide 81: ESG
ESG EM towards Environment, Social and Governance sustainability Sustainability People Etisalat by e& ESG Framework Contribution and Awareness Program o Sustainability is a priority on the C level agenda & cascading down across the organization o Program incorporates 8 UN SDGs and 3 environmental o
Slide 82: Network Capability
Network Capability Target oriented mindset focused on investment rationalization & operational efficiency Strong growth in TDD sites and utilization of the newly acquired 2.6GHz spectrum 2022 2022 2022 19% 6% 270% Smart investments in network resources paved the way for better customer experience an
Slide 83: Strategic Focus
Strategic Focus Capture disproportionate incremental revenue from market growth Grow, and Enrich the Customer Base Deepen loyalty of all customers (digital & telco) by x-selling products and services Fair share in enterprise, in total revenues Shake Up the B2B Space Become the ICT partner of choice
Slide 84: Hatem Bamatraf, CEO PTCL Group
Hatem Bamatraf Chief Executive Officer – PTCL Group
Slide 85: Macro-economic Challenges
Macro-economic Challenges • Global recession CURRENCY HIGHER POLICY impacting Pakistan’s DEVALUATION TAX REGIME RATE economy as well. Country is facing challenges of foreign exchange reserves, ~50% YoY 17% higher inflation with slower economic growth RISE IN ENERGY GDP INFLATION PRICE HIKES • Govern
Slide 86: Population & Youth Potential
Population & Youth Potential Percentage of Population (0-14 years) • Pakistan annual population growth rate is 2% • ~5 Mn per annum addition to 18+ years Pakistan 5th most age group populous country • Economic recovery can with 230+ Mn 26% 18% unlock benefits, population India especially given the O
Slide 87: Growth Opportunity
Growth Opportunity Fixed Broadband subscribers per 100 inhabitants Mobile Broadband subscribers per 100 inhabitants Household penetration at ~7% vs. 50% in • Pakistan has low comparable countries penetration vs. comparable countries, signifying high growth potential Pakistan 1.2 10x potential Pakist
Slide 88: Telecom Landscape
Telecom Landscape Industry Total Revenue (Bn) 8% Industry CAGR CAGR • Driven by growing 614 654 consumer appetite, Industry 564 110 B2B 8% Telecom Industry Value 102 95 continues to grow Share despite macro-economic 456 484 Mobile 7% challenges 419 • Advent of latest tech 50 57 60 Fixed 9% (LTE, GPO
Slide 89: Key Highlights FY 2022
Key Highlights FY 2022 • PTCL Group reported Revenue 2022 revenue stands highest ever with double digit revenue PKR 151.6Bn growth • All OPCOs contributed 10.2 % towards the double-digit YoY Growth revenue growth of PTCL Group 55% 8.6 % 40% 7.1 % 10% 35.4 % of Group’s YoY Growth of Group’s YoY Growt
Slide 90: PTCL Group Key Strengths
PTCL Group Key Strengths PTCL Group PTCL Group is the only integrated telecom provider in Pakistan • 2nd largest operator by revenue • Un-parallel network infrastructure and services across the value chain Largest fiber Carrier of Carriers with 24 Mn mobile base with 300+ Branch & • Well positioned
Slide 91: Flash Fiber
Flash Fiber Market Share (%) Flash Fiber Home Passes (‘000) PTCL offers multiple 55% Net Add share FY’22 leading to Industry largest consumer services: • FTTH: Fastest internet in 6% +10pp increase in subscriber market share FTTH rollout FY’22 FY’22 vs FY’21 the country 27% 592 • xDSL: only operator
Slide 92: Ufone: Base, 4G and Rollout
Total Base (Mn) 4G Base (Mn) 4G Rollout • Significant growth post ~1Mn addition to 61% growth 8.3k site level 7% 4G spectrum acquisition Ufone Base FY’22 higher vs. industry rollout activities in Sep’21 FY’22 vs FY’21 23.6 22.7 11.4 Spectrum 9.8 • Record setting site level Acquisition rollout in cou
Slide 93: Awards
Awards • Ufone has marked the Best Overall Network Performance Score (NPS) awarded by Pakistan Telecommunication Authority for best quality in both Voice & Data Services • OpenSignal has declared Ufone as Leading Global Rising Star for improved performance OpenSignal has declared Ufone as • Ufone wa
Slide 94: Carrier of Carriers
• Offers multiple solutions Carrier of Carriers Key Partners 13% including Connectivity, Smart Solutions & Managed Services FY’22 vs FY’21 Carrying 6.5 Tbps of traffic • Clientele from multiple Revenue ~60% of the country corporate sectors Growth including majority of Telecom & Banks as well as Gove
Slide 95: Ubank
Leading Deposit Amount (PKR Bn) Deposit Customers Ubank offers diverse Branch & 68% growth 35% portfolio of microfinance ATM Network 3.7Mn banking services, including FY’22 vs FY’21 300+ 230+ • Microfinance Loans & 92 FY’22 Deposits Branches ATMs 55 • Islamic Banking Revenue • International Growth 3
Slide 96: Awards
Awards • Receive multiple awards FY ‘22, recognizing the performance in microfinance Microfinance Bank of the Year – Pakistan Domestic Initiative of Islamic Banking Initiative of the Year – Pakistan the Year – Pakistan Awarded by Asian Banking & Finance Awarded by Asian Banking & Finance 3G Excellen
Slide 97: PTCL Group's Financial Performance FY2022
PTCL Group’s Financial Performance FY2022 Highest Ever Stable EBITDA Revenue (PKR Mn) Revenue EBITDA (PKR Mn) development EBITDA Margin % +10% +13% +0.2% +4% • Revenue increased with positive contribution from 151,644 156,190 43,326 all OPCOs (PTCL: 9%, 137,625 41,365 41,690 41,770 Ufone: 7.1% and U
Slide 98: PTCL Financial Performance 2022
PTCL Financial Performance 2022 Highest Ever Resilient EBITDA Revenue (PKR Mn) Revenue EBITDA (PKR Mn) development • PTCL records highest ever +9% EBITDA Margin % +6.1% revenue (PKR 83Bn) with 83,444 21,882 9% YoY growth, 76,853 20,631 contributed by both Retail 71,548 71,804 19,986 19,591 and Busin
Slide 99: PTCL Retail Revenue 2022
PTCL Retail Revenue 2022 • PTCL Retail Revenue shows promising growth in 2022 46Bn 6% 31 of PTCLGroup Revenue % • Backed by significant Retail Revenue (PKR) YoY Growth investments in Fixed Broadband Growth PKR Mn Y’22 vs. Y’21 Total Retail Total 46,404 +6% 43,936 xDSL xDSL 29,348 +5% 27,954 4,544 Fl
Slide 100: Business Solutions Performance 2022
Business Solutions Performance 2022 B2B posted double digit revenue growth in 2022 37Bn 13% 24 of PTCLGroup % Revenue B2B Revenue (PKR) YoY Growth Corporate Revenue (PKR Mn) Wholesale Revenue (PKR Mn) International Revenue (PKR Mn) +19% +21% -2% 10,697 15,204 10,921 11,381 11,140 10,400 9,006 12,529
Slide 101: Ufone Financial Performance 2022
Ufone Financial Performance 2022 Revenue growth despite Depleting EBITDA due Revenue (PKR Mn) increase in taxes EBITDA (PKR Mn) to economic challenges • Revenue Growth of 7.1% +7% EBITDA margin % YoY (Adjusted growth: 64,620 60,074 -13.1% 23,392 15%), backed by 58,257 +15% 56,078 20,545 53,753 18,72
Slide 102: Ubank Financial Performance 2022
Ubank Financial Performance 2022 Continued growth Significant EBITDA Revenue (PKR Mn) momentum EBITDA (PKR Mn) Growth • Ubank continued the +35% EBITDA Margin % +61% growth momentum by posting +35% revenue 14,966 3,383 growth in FY’22 vs last 2,104 11,050 1,973 year 10,191 13.5% 657 • Revenue growth
Slide 103: PTCL Group Cost Optimization Initiatives
PTCL Group Cost Optimization Initiatives Cost reductions addressing the full cost base 5.5 Secured 119% PKR Bn 1 Network Maintenance and O&M Contracts achievement against targeted optimization savings Saving Target Refurbishment of Modems 2 6.5 3 Fuel and Power PKR Bn 4 Employment Cost Savings Actua
Slide 104: Transformation & Strategic Priorities
Transformation & Strategic Priorities Become the Leading Exceed market growth in Lead Pakistan’s FTTH Technology Player and mobile transition National Champion to Strengthen market positioning & brand value Become undisputed leader in Fixed & FMC support Pakistan Digital Transformation Evolve into a
Slide 105: Salvador Anglada, CEO e& enterprise
Salvador Angalada Chief Executive Officer – e& enterprise
Slide 106: Who We Are
Who We Are We enable organizations to maximize their digital potential by designing, 28% AED 2 Bn delivering and operating CAGR Revenue intelligent and secure We combine the agility and 2022 2015 - 2022 end-to-end digital expertise of a digital managed and solutions professional services company… …
Slide 107: Value Proposition
Value Proposition With an e2e value proposition, we help our Enhancing customer customers embrace experience digital technologies and transform the way they Business do business Multi Cloud Applications Embracing data and analytics Digita Customer Centric Engagement Digitizing processes and IoT & AI
Slide 108: Success Pillars
Success Pillars Our strength and success relies on the capabilities that we have built over the years People Platforms Partnerships ecosystem Multicloud Platform CPaaS Digital architects Internet of things Operation engineers Video Cloud platform platform Data scientists Safe city platform Smart cit
Slide 109: References & Operations
References & Operations References This has allowed us to secure and deliver key strategic projects, providing a 24x7 support to our customers thanks to our Cloud, IoT and Security operation centers 24x7 Operations +5K +2T +40K +410K +85K +1M Managed virtual Security events Smart fire alarm IoT conn
Slide 110: Operating Model
Operating Model We are organized in four regional business units, having a regional offices in the countries we operate, all supported by our e2e digital transformation consultancy and sales functions Full regional business units Shared support functions Regional offices Digital transformation consu
Slide 111: Our Strategy
Our Strategy Vision We enable organizations to maximize their digital potential In 2022, we kicked-off our new strategic cycle with the ambition to further accelerate growth, expand through new fast We provide Advanced Digital Solutions to continuously transform & growth business models Mission enha
Slide 112: Cybersecurity Leader
Cybersecurity Leader Help AG has become a 360° Cybersecurity Portfolio regional reference for Most comprehensive portfolio in the region cybersecurity managed and professional services having been able to build the most comprehensive portfolio in the region Recognized as Major player by Best in clas
Slide 113: Strategic Partnership: Khazna JV with G42
Strategic Partnership Become the leader in the Middle East & Africa in wholesale DC operations We have established a JV with G42 to become the region’s largest data center provider under Khazna 105 MW 12 155 MW 16 60% 40% Current Activate Sites Capacity Sites Under Capacity Under Construction Constr
Slide 114: Strategic Partnership: JV with Bespin Global
Strategic Partnership Local JV HoldCo Investment We have formed a JV with Bespin Global to build Access Korea’s largest pure player in innovation market cloud managed and ~200 professional services in Operations Cloud experts Participate in BESPIN the METAP region GLOBAL success story Achieve 30% ma
Slide 115: CX as-a-service
CX as-a-service Frictionless Customer Journey With our CX practice we support businesses to meet their customer expectations and deliver a superior integrated experience Promotion Awareness Purchase Fulfillment Support Continuous Engagement Delivery Order Additional Share Targeting Communication Inf
Slide 116: Sustainability as-a-service
Sustainability as-a-service Creating a digital path to sustainability At e& enterprise, we are committed to support companies achieving their sustainability goals by bringing together the latest technologies to create a positive impact ANALYZE RECORD & REPORT REDUCE, REPLACE & REMOVE Consultancy Sus
Slide 117: AI Ecosystem
AI Ecosystem A holistic approach to an AI Ecosystem Artificial Intelligence is at the core of our solutions having established an AI Center of Excellence with the best platforms and tools at the service of our customers With best-in-class partnership ecosystem CONSULTANCY DEVELOPMENT DEPLOYMENT OPER
Slide 118: Priorities
Priorities Moving forward, we have defined clear priorities for this year that will allow us to continue executing our strategy and achieve our ambition 2 Accelerate through inorganic moves 0 Become a truly regional player with operations in UAE, KSA & Egypt 2 Enrich our commercial and consulting ca
Slide 119: Khalifa AlShamsi, CEO e& life
Khalifa AlShamsi Chief Executive Officer – e& life
Slide 120: e& life at a Glance
e& life at a Glance e& life is a key business pillar driving the ambitious growth strategy of e& via consumer etisalat by e& e& international digital verticals e& enterprise e& life Life and more at your fingertips. We bring the digital world to our customers’ fingertips – via next-generation techno
Slide 121: Strong Foundations of Growth
Growth Profile ~600m population in 16 countries e& life is building on strong foundations of growth ~163m customer base Above 80% mobile penetration Extensive Sales and Strong Financial Position Distribution capability Own physical stores and channel Most valuable listed partner network that drive s
Slide 122: e& life Objectives
e& life Objectives e& life provides a two-fold value creation objective for TWO OBJECTIVESFORCONSUMER DIGITAL the Group SCALE-UP NEW CONSUMER SUPPORT TO PREMIUMIZE DIGITAL BUSINESSES + COREREVENUE VALUE CREATION FOR THE GROUP 122
Slide 123: Strategic Direction
Strategic Direction e& life will take a 3-phased Time to market approach to achieve the aspiration, curating a 3 New frontier1 portfolio of bets with a balanced risk and reward Metaverse & Web 3.0 Level of innovation Time to market 2 Proven 1 Core Short-term builds Expand scope of areas with a short
Slide 124: e& money
e& money 124
Slide 125: Fintech Landscape
Fintech Landscape Fintech disclosed deals in MENAP, in USD Fintech in MENAP has grown exponentially in the last 2 UAE Pakistan Number of deals years, with UAE accounting Saudi Arabia Bahrain for ~40% of all Fintech Egypt Other funding in 2022 681M 131 627M 41% 86 38% 76 77 14% 14% 50 20% 159M 29% 10
Slide 126: Fintech Landscape: Regional Fintech by Sub-sector
Fintech Landscape Non-exhaustive list of regional Fintech categorized by sub-sector Fintech started to emerge across the full financial 1 services Digital attacker banks & Super-apps value chain 2 Payments 3 Retail lending 4 Retail accounts 5 SME/ Corporate 6 SME/ Corporate 7 IB & Capital 8 Blockcha
Slide 127: Fintech Landscape: Right to Win
Fintech Landscape Attractive market dynamics for Fintechs… Large unbanked population (66% in Egypt and 75% in Pakistan) e& markets are ideal for a Fintech focused growth play, High cash usage (55% in UAE, 63%+ in KSA) and we have everything to be a leading regional player Significant money corridors
Slide 128: e& money Journey
e& money Journey Our fintech (e& money) 2018 Joint Venture with Noor journey started 4 years ago, and e& became full owner as Bank of December 2021 Jun First launch of eWallet 2019 Launch of IMT / bill payments 2020 DIB’s acquisition of Noor Bank Dec e& acquires DIB’s shares 2021 Jul Launch of new b
Slide 129: e& money Strategy
Strategy e& money has the bold vision of becoming the leading financial super app in the region International Wealth Money Transfer Management Our strategy forward is shaped across four pillars: Bill Micro 1. Products suited for the Payment Credit UAE market 2. Analytical capabilities on credit scor
Slide 130: Key Achievements (1/2)
Key Achievements Achieved strong growth and momentum among customers We have made substantial progress towards our vision in 2022 (1/2) 4+ rating (out of 5) across platforms (4.7 App Store, 4.4 Google Store, 4.57 customer satisfaction) 3x app downloads and 5x monthly active users 4x revenue register
Slide 131: Key Achievements (2/2)
Key Achievements Accelerated adoption while launching new products and features We have made substantial progress towards our vision in 2022 (2/2) 5x Scaled up monthly remittance volume by 5x within 12 months (Jan 2022 vs Dec 2022) Jan 22 Dec 22 Launched fastest digital Integrated with 30+ Added deb
Slide 132: e& money roadmap
e& money 2024 ‒ Launch full-fledged product portfolio Acceleration ‒ Accelerate activity / usage with 2023 will be a critical year in tactical x-sell our journey, with a focus on ‒ Improve share of wallet with bundling product differentiation ‒ New license extensions 2023 ‒ Launch 3 iconic products
Slide 133: e& money: Card, Lending, Wealth
e& money 1. Card We plan to launch 3 new iconic products which will • We just launched the e& money prepaid card exponentially accelerate • e& money became the first telco-owned issuer in the UAE growth of e& money • The card will transition e& money to an open loop wallet and expand our payment use
Slide 134: Evision
Evision MS == Nae RM vik ea: arn anhlt = ee) fl Pinan st0 0k Wert
Slide 135: E-vision at a Glance
E-vision at a Glance Existing Verticals 2023 Plan Wide Geographic Reach Evision – leader in IPTV and Reaching 3m+ Subscribers OTT forming with Starzplay the No.1 entertainment hub IPTV - UAE in the MENA region Syria Algeria Tunisia Expand to KSA & Egypt Lebanon Morocco • #1 content aggregator & Liby
Slide 136: Market Potential
Market Potential Evision as one stop shop for entertainment covering video, gaming and music. Focused around ensuring a complete leisure time play across markets (video, audio, gaming) MENAP Media and Entertainment Overall EXPECTED 2025 (MENAP) Opportunity ~ 29M ~$5.5 B ~12% VIDEO SUBS REVENUE CAGR
Slide 137: MENA Streaming OTT
MENAStreaming OTT Streaming services have MENA OTT video market grown rapidly in the last 5 2017 to 2025P, USD mn years toa $5bn+ market in the MENA region Drivers for Growth in OTT in CAGR MENA 12% growth in OTT Both ad-supported video and SVOD offerings are (2022-2025) expected to grow rapidly in
Slide 138: 2022 Achievements
2022 Achievements 2022 was a pivotal year for evision with the acquisition of Evision a majority stake in the consortium acquiring Starzplay. Supported by a strong 2m+ subscriber growth and PAYING USERS better ARPU Evision Strong revenue 52% REVENUE INCREASE growth for 2022 IMPROVING Despite content
Slide 139: 2022 Achievements
2022 Achievements evision expanding across multiple verticals 22 • Evision expanded across 22 Countries of operation countries directly and through the acquisition of Starzplay • Evision launched 6 of its own branded channels • Evision secured premium Launch of Shoq OTT New Proprietary Channels Dire
Slide 140: 2023 Plan
2023 PLAN 2023 Plan Subsequent to the acquisition of Starzplay, - Expand IPTV and hospitality to MENA evision will focus on Media enabling the other key Vertical - Immersive content tech verticals of the business covering gaming and - Strengthen the Arabic original productions. music either organica
Slide 141: Key Performance Indicators
Key Performance Indicators Evision is now uniquely positioned to leverage content and harvest synergies with the acquisition of StarzPlay stake With the investment in StarzPlay evision has significantly scaled up its overall subscriber base and well positioned for next phase of its growth 22 Countri
Slide 142: Key Takeaways
Key Takeaways • e& life is a key business pillar driving the growth strategy of e&, with a focus on consumer digital sectors • Built on strong foundations of growth to enter large, growing sectors with addressable gaps; starting with Fintech and Multimedia • e& money, the fintech vertical of e& life
Slide 143: Closing Remarks
Closing Remarks Hatem Dowidar Group Chief Executive Officer – e&
Slide 144: we are
we are
e& (Emirates Telecommunications Group Company PJSC) — Investor Day (March 2023) on 6ix