Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2021 Earnings Presentation
24 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Feb 14, 2022
Slide 1: Full-year and Q4 2021 results
Full-year and Q4 2021 results Emirates Integrated Telecommunications Company PJSC 14 February 2022 Emirates Integrated Telecommunications Company PJSC
Slide 2: Disclaimer
Disclaimer This document has been prepared by Emirates Integrated Telecommunications Company PJSC (the “Company”) solely for presentation purposes. The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, a
Slide 3: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 3 Emirates Integrated Telecommunications Company PJSC
Slide 4: Q4 2021 highlights: Recovery is gaining pace
Q4 2021 highlights Recovery is gaining pace Macro • Oil prices remain very supportive of growth forecasts • PMI readings are edging towards pre-pandemic levels • UAE’s wide-ranging reforms are supportive of an increase in FDI and population growth Macro • First quarter of EXPO 2020 update Resumption
Slide 5: Financial review Highlights
Financial review Highlights Revenues EBITDA Net profit (adjusted*) (AED million) (AED million) (AED million) +12.0% +20.5% +14.7% 3,070 1,242 212 2,740 1,031 185 Q4’20 Q4’21 Q4’20 Q4’21 Q4’20 Q4’21 Revenues EBITDA Net profit (adjusted*) (AED million) (AED million) (AED million) +5.4% +1.9% -9.3% 11,
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Mobile services: customer base
Operating review Mobile services: customer base +8.9% +8.9% +12.4% Mobile customer base(*) (000s) • Postpaid customer base is recovering 7,253 – Handset financing plan is a key tool for customer 6,658 6,784 6,565 6,451 acquisition – Improved digital customer experience – Gross-adds are normalizing Q
Slide 8: Fixed services: customer base +65.8%
Operating review Fixed services: customer base +65.8% Fixed customer base(*) (000s) • Consistent subscriber base growth throughout the +65.8% year – We have improved product and services for +17.9% consumer and enterprise segments – We have gained market share across all service categories – We expa
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +12.0% +5.4% +6.8% 2,883 3,070 11,682 2,740 2,855 2,874 11,084 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 2020 2021 • Mobile services – Postpaid and Prepaid revenues are recovering with an acceleration during Q4 • Fixed services – Strong commercial performance • Other revenues – Wholesa
Slide 11: Mobile revenues are recovering and returning to growth
Financial review Mobile revenues are recovering and returning to growth +5.6% +6.5% -2.8% (AED million) (AED million) Revenues 1,390 5,454 Revenues 1,316 1,312 1,295 1,304 5,301 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 2020 2021 • Q3’21 was an inflection point – QoQ growth provides strong signs of recovery • L
Slide 12: Sustained growth in fixed revenues
Financial review Sustained growth in fixed revenues +18.3% +10.7% +4.5% (AED million) (AED million) Revenues Revenues 731 763 2,844 645 663 687 2,569 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 2020 2021 • Disciplined execution of our broadband strategy • Solid contribution from Consumer segment – Net-adds accele
Slide 13: Other revenues
Financial review Other revenues +17.7% +15.5% +9.2% (AED million) (AED million) Revenues Revenues 908 873 917 3,537 839 779 3,061 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 2020 2021 • Equipment revenues continued its growth path – Unabated demand for 5G handsets • Wholesale revenues – Traffic continues its reco
Slide 14: EBITDA
Financial review EBITDA +1.9% +20.5% +12.9% 4,507 4,592 1,242 1,120 1,130 1,100 1,031 (AED million) (AED million) 40.7% 39.3% 37.6% 38.8% 39.6% 38.3% 40.5% Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 2020 2021 • Growth in service revenues contributed to increase in gross profit • Cost savings initiatives to mitig
Slide 15: Net profit (adjusted)
Financial review Net profit (adjusted) • Underlying net profit is stable despite – Higher depreciation and amortisation charges +562.7% -23.7% 321 257 283 426 240 107 70 178 (AED million) (AED million) 48 185 213 213 1,017 923 -137 Significant one-offs Net profit adjusted 2020 2021 Q4’20 Q1’21 Q2’21
Slide 16: Capex and operating free cash flow
Financial review Capex and operating free cash flow Capex (AED million) +39.1% 1,013 2,602 • Capex at highest level. Strong deployment in 2021: 1,871 – 5G covers 91% of 649 population 541 568 33.0% – Continued transformation 372 19.7% 19.7% 22.7% 22.3% of IT and network 12.9% 16.9% infrastructure –
Slide 17: Unleveraged balance sheet and strong liquidity position
Financial review Unleveraged balance sheet and strong liquidity position (AED million) 2,584 Gross debt Cash & Term deposits 2,243 2,016 5,584 1,224 3,569 995 2,016 200 200 200 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Cash & Term Undrawn facility Total liquidity deposits 17 Emirates Integrated Telecommunicatio
Slide 18: Outlook
Outlook 2022 • Return to normality – Gradual release of social distancing measures encourages return to office and in-school learning • Macro – Oil price forecasts remain supportive for fiscal expansion – Social and economic reforms will cement the UAE’s position as a global hub – Macro data points
Slide 19: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 19 Emirates Integrated Telecommunications Company PJSC
Slide 20: Operating KPI
Appendix Operating KPI 2020 2020 2020 2020 2021 2021 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mobile customers ('000s), of which 7,440 6,418 6,594 6,658 6,784 6,565 6,451 7,253 Postpaid 1,363 1,262 1,265 1,271 1,313 1,285 1,298 1,337 Prepaid 6,077 5,156 5,330 5,386 5,471 5,280 5,153 5,916 Net-adds ('000s),
Slide 21: P&L
Appendix P&L Summary P&L 2020 2021 2020 2021 AEDm Q4 Q4 change Full-year Full-year change Revenues 2,740 3,070 12.0% 11,084 11,682 5.4% Direct costs -991 -1,186 19.7% -3,753 -4,408 17.5% Indirect costs -724 -772 6.5% -2,838 -2,812 -0.9% Other income 6 130 2024.6% 14 131 839.1% EBITDA 1,031 1,242 20.
Slide 22: Cash flow statement
Appendix Cash flow statement Cash flow statement 2020 2021 AED million Full-year Full-year 2020 2021 Net profit 1,443 1,101 Full-year Full-year Adjustments for non cash items Purchase of property, plant and equipment -1,835 -1,869 Finance costs 19 24 Purchase of intangible assets -174 -129 Finance i
Slide 23: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-20 31-Dec-21 AED million 31-Dec-20 31-Dec-21 Property, plant and equipment 8,063 9,068 Share capital 4,533 4,533 Right-of-use assets 1,851 1,650 Share premium 232 232 Intangible assets 487 446 Retained earnings 1,896 1,748 Goodwill 41
Slide 24: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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