Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND

Emirates Telecom. Group Company (etisalat Group) Pjsc — Etisalat Group — Q2 2020 Earnings Presentation

24 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Jul 22, 2020

  1. Slide 1: Etisalat Group Q2 2020 Results Presentation

    ETISALAT GROUP Q2 2020 RESULTS PRESENTATION 22 JULY 2020 - ABU DHABI, UAE

  2. Slide 2: Disclaimer

    Etisalat Group | Q2 2020 Results Presentation DISCLAIMER Emirates Telecommunications Group Company PJSC and its subsidiaries (“Etisalat Group” or the “Company”) have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to th

  3. Slide 3: 1. Business Overview

    1. Business Overview Hatem Dowidar Chief Executive Officer (Interim) Etisalat Group

  4. Slide 4: Our Role

    Our While the world is going through difficult times, we at Etisalat, embraced additional responsibility to be the beacon of hope using our reach to enable businesses and social continuity in this physically distant environment. We have Role bridged the communities’ knowledge divide through robust d

  5. Slide 5: Supporting Our Stakeholders

    Etisalat Group | Q2 2020 Results Presentation TOGETHER MATTERS SUPPORTING OUR STAKEHOLDERS MORE MORE Reliable Network Business Continuity Serve & Resilient Health Speed Powered By Learning Matters Support, but Happiness Digital Offerings Suite Safety First Etisalat teams are working non- Business op

  6. Slide 6: Etisalat Group Financial Highlights

    Etisalat Group | Q2 2020 Results Presentation FINANCIAL HIGHLIGHTS ETISALAT GROUP FINANCIAL HIGHLIGHTS AED Million Q2 2020 Growth Growth H1 2020 Growth YoY% YoY% QoQ% Revenue 12,492 -3% -5% 25,606 -1% EBITDA 6,523 -3% -3% 13,238 -1% EBITDA Margin 52% 0pp +1pp 52% 0pp Net profit 2,388 +7% +10% 4,566

  7. Slide 7: Etisalat Group Financial Highlights

    Etisalat Group | Q2 2020 Results Presentation FINANCIAL HIGHLIGHTS ETISALAT GROUP FINANCIAL HIGHLIGHTS • Expanding Etisalat Group customer base by +2% • Top-line impacted by COVID-19 • Maintaining EBITDA Margin at 52% supported by cost optimization initiatives • Affirmation of high credit ratings at

  8. Slide 8: 2. Financial Overview

    2. Financial Overview Karim Bennis Chief Financial Officer Etisalat Group

  9. Slide 9: Financial Highlights: Revenue and EBITDA Breakdown

    Etisalat Group | Q2 2020 Results Presentation FINANCIAL HIGHLIGHTS ETISALAT GROUP FINANCIAL HIGHLIGHTS Revenue Breakdown Q2 2020 (AED m) EBITDA Breakdown Q2 2020 (AED m) 12.5 6.5 Bn Bn YoY Growth -3% YoY Growth -3% UAE -5% UAE -4% MT Group (LC +1%) +0% MT Group (LC +1%) -2% Egypt (LC +10%) +18% Egyp

  10. Slide 10: Int'l Operations Financial Highlights Q2 2020

    Etisalat Group | Q2 2020 Results Presentation FINANCIAL HIGHLIGHTS INT’L OPERATIONS FINANCIAL HIGHLIGHTS Q2 2020 Revenue (AED m) / EBITDA (AED m) / Revenue & EBITDA (AED m) / EBITDA Margin (%) / EBITDA Margin (%) YoY Growth % MT Group Q2 2020 Growth Growth in AED in MAD Revenue 3,213 +0% +1% EBITDA

  11. Slide 11: Group Revenue

    Etisalat Group | Q2 2020 Results Presentation REVENUE GROUP REVENUE Revenue (AED m) & YoY Growth (%) Sources of Revenue Growth – Q2 2020 vs Q2 2019 (AED m) 4% 5% -3% Constant Cu Y/Y % growth +1% +1% -2.5% Highlights Revenue by Cluster (Q2 2020) • In Q2’20 consolidated revenue decreased Y/Y by 3% att

  12. Slide 12: Group EBITDA

    Etisalat Group | Q2 2020 Results Presentation EBITDA GROUP EBITDA EBITDA (AED m) & EBITDA Margin (%) Sources of EBITDA Growth – Q2 2020 vs Q2 2019 (AED m) Constant Cu Y/Y % growth +1% +1% -2.6% Highlights EBITDA by Cluster (Q2 2020) • In Q2’20 consolidated EBITDA decreased Y/Y by 3% attributed to lo

  13. Slide 13: Group Capex

    Etisalat Group | Q2 2020 Results Presentation CAPEX GROUP CAPEX CAPEX (AED m) & CAPEX/Revenue Ratio (%) Sources of Capex Growth – Q2 2020 vs Q2 2019 (AED m) Highlights CAPEX by Cluster (Q2 2020)  In Q2’20 consolidated capex increased Y/Y by 6% resulting in a Capex / Revenue ratio of 12% Domestic vs

  14. Slide 14: Group Balance Sheet & Cash Flows

    Etisalat Group | Q2 2020 Results Presentation BALANCE SHEET / CASHFLOWS GROUP BALANCE SHEET & CASH FLOWS Balance Sheet (AED m) Dec-19 Jun-20 Investment Grade Credit Ratings Cash & bank Balances 29,657 24,421 AA-/Stable Total Assets 128,266 121,893 Total Debt 23,889 24,828 Net Cash / (Debt) 5,768 (40

  15. Slide 15: Debt Profile: Diversified Debt Portfolio

    Etisalat Group | Q2 2020 Results Presentation DEBT PROFILE DEBT PROFILE: DIVERSIFIED DEBT PORTFOLIO Borrowings by Operation Q2 2020 (AED m) Borrowings by Currency Q2 2020 (%) 14,831 7,333 1,342 1,321 Group MT Group Egypt Pakistan Debt by Source Q2 2020 (AED m) Repayment Schedule Q2 2020 (AED m) 12,2

  16. Slide 16: Group Dividends: Proposed Interim DPS of AED 40 Fils for H1 2020

    Etisalat Group | Q2 2020 Results Presentation DIVIDENDS GROUP DIVIDENDS: PROPOSED INTERIM DPS OF AED 40 FILS FOR H1 2020 Interim Dividends and Dividends Per Share Interim Dividend Payout Ratio 85.6% 3.48 3.48 3.48 3.48 3.48 80.6% 80.7% 78.3% 76.2% 0.40 0.40 0.40 0.40 0.40 2016 2017 2018 2019 2020 H1

  17. Slide 17: Country by Country Financial Review

    COUNTRY BY COUNTRY FINANCIAL REVIEW 17 17

  18. Slide 18: UAE: Maintaining Strong Profitability Margins While Investing in Networks

    Etisalat Group | Q2 2020 Results Presentation UAE UAE: MAINTAINING STRONG PROFITABILITY MARGINS WHILE INVESTING IN NETWORKS Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA Margin (%) Net Profit (AED m) / Profit Margin (%) CAPEX (AED m) & CAPEX / Revenue Ratio (%) 18

  19. Slide 19: UAE: Revenue Breakdown and Key KPIs

    Etisalat Group | Q2 2020 Results Presentation UAE UAE: REVENUE BREAKDOWN AND KEY KPIs Mobile Revenues(1) (AED m) Fixed Revenues(2) (AED m) Other Revenues(3) (AED m) Mobile Subs(4) (m) & ARPU(5) (AED) Fixed Broadband(6) Subs (m) & ARPU(7) (AED) (1) Mobile revenues includes mobile voice, data, rental,

  20. Slide 20: Maroc Telecom: Maintained Profitability

    Etisalat Group | Q2 2020 Results Presentation MAROC TELECOM GROUP MAROC TELECOM: MAINTAINED PROFITABILITY Morocco, Benin, Burkina Faso, CAR, CDI, Chad, Gabon, Mali, Mauritania, Niger & Togo Subscribers (m) Revenue (AED m) / EBITDA Margin (%) CAPEX (AED m) & CAPEX/Revenue Ratio (%) Y/Y % Growth (AED)

  21. Slide 21: Egypt: Strong Revenue Growth and Profitability

    Etisalat Group | Q2 2020 Results Presentation EGYPT EGYPT: STRONG REVENUE GROWTH AND PROFITABILITY Subscribers (m) Revenue (AED m) / EBITDA Margin (%) CAPEX (AED m) & CAPEX/Revenue Ratio (%) Y/Y % Growth (AED) +21% +33% 18% Highlights • Y/Y revenue growth attributed to data and wholesale segments •

  22. Slide 22: Pakistan: Lockdown & Telecom Taxes Impacted Performance

    Etisalat Group | Q2 2020 Results Presentation PAKISTAN PAKISTAN: LOCKDOWN & TELECOM TAXES ON MOBILE SERVICES IMPACTED PERFORMANCE Subscribers (m) Revenue (AED m) / EBITDA Margin (%) CAPEX (AED m) & CAPEX/Revenue Ratio (%) Y/Y % Growth (AED) -16% -15% -15% REVENUE BREAKDOWN Q2 2020 USD / PKR FX Rate

  23. Slide 23: H1 2020: Ongoing Cost Optimization Initiatives

    Etisalat Group | Q2 2020 Results Presentation YTD 2020 HIGHLIGHTS H1 2020: ONGOING COST OPTIMIZATION INITIATIVES TO MINIMIZE THE COVID-19 IMPACT ON PROFITABILITY AND PRESERVE LIQUIDITY Revenue EBITDA Net Profit CAPEX 25.6 13.2 4.6 2.6 AED Billion AED Billion AED Billion AED Billion Yo Y Gro wth Yo Y

  24. Slide 24: Etisalat Group Investor Relations

    ETISALAT GROUP INVESTOR RELATIONS Email: ir@etisalat.ae Website: www.etisalat.com/en/ir/index.jspr 24 24

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