Arabian Internet And Communications Services Company · TADAWUL:7202
Arabian Internet And Communications Services — H1 2024 Earnings Presentation
26 slides from Arabian Internet And Communications Services's earnings presentation, Jul 29, 2024
Slide 1: H1 2024 Results Presentation
H1 2024 Results Presentation Riyadh, 29 July 2024
Slide 2: Agenda
Agenda 1H 2024 Results Presentation 1 Investment Thesis 2 Strategy Update 3 Sustainability Journey 4 Financial Performance 5 Contact Details
Slide 3: Investment Thesis
1H 2024 Results Presentation 1 Investment Thesis
Slide 4: Investment Thesis Update
This message/document has been classified as “Public” Investment Thesis Update solutions is the right stock in the right market at the right time Employer of Choice Strong Project Pipeline Wining ratio of +50% 66% Saudization Signed of a joint venture agreement with Jeddah Development and Urban 19%
Slide 5: Strategy Update
1H 2024 Results Presentation 2 Strategy Update
Slide 6: LEAP 2.0 targets significant economic value creation in 2024-2026
This message/document has been classified as “Public” LEAP 2.0 targets significant economic value creation in 2024-2026 The new strategy aims at augmenting the core business by emerging tech, innovation and efficiency gains Growth Profitability + Drive growth through expansion and enhancements Susta
Slide 7: solutions Portfolio
This message/document has been classified as “Public” solutions Portfolio “solutions by stc” helps its clients in their IT and digital aspirations throughout the value chain DESIGN & BUILD RUN CONNECT ACCESS DIGITIZE SECURE System Business Outsourcing & Connectivity Cloud Digital Cybersecurity Integ
Slide 8: Sustainability Journey
1H 2024 Results Presentation 3 Sustainability Journey
Slide 9: In 2023, solutions Embarked on its Sustainability Journey
In 2023, solutions Embarked on its Sustainability Journey The GROW strategy framework focuses on operational excellence, market competitiveness, and innovation, ensuring that sustainability is at the core of our growth ESG Drive KSA’s Digital Transformation and Empower People through Sustainable Tec
Slide 10: Sustainability as a Part of Our Culture
Sustainability as a Part of Our Culture We aim to ensure that every employee understands and contributes to our sustainability goals through the Plant, Feed, and Thrive framework PLANT Feed Thrive We aim to cultivate a Our primary goal is to Amplify meaningful culture that values nourish our engagem
Slide 11: A Meaningful Positive Impact for All Stakeholders
A Meaningful Positive Impact for All Stakeholders solutions’ GROW strategy framework and cultural and sustainability initiatives to benefit employees, community, customers, partners and the Kingdom Revitalizing Workforce Relations Widening Impactful Greening by Sustainable Optimizing Governance for
Slide 12: Financial Performance
1H 2024 Results Presentation 4 Financial Performance
Slide 13: solutions 1H 2024 Financial Dashboard
solutions 1H 2024 Financial Dashboard Growth rates matured, while strong margins and returns were sustained in H1 2024 1H 24 Revenue 1H 24 GP Margin 1H 24 Capex 1H 24 Capex / Revenue SARmn 5,580 +4% YoY 23.6% -131bps YoY SARmn 55 +16% YoY 0.98% +10bps YoY 1H 24 EBITDA 1H 24 EBITDA Margin 1H 24 Net C
Slide 14: Revenue Trend and Breakdown by Business Segment
This message/document has been classified as “Public” Revenue Trend and Breakdown by Business Segment Group revenue grew +4% YoY in H1 2024 driven by IT Managed and Operational Services Revenue Trend (SARmn) Management Commentary +3% Slower growth in H1 is driven by market seasonality 2,701 2,795
Slide 15: Revenue Breakdown by Entity
This message/document has been classified as “Public” Revenue Breakdown by Entity Giza and ccc accounted for 25% of H1 2024 revenue1 Management Commentary Revenue Breakdown by Entity (SARmn) +3% Giza Arabia has shown significant growth in KSA whereas Giza’s non-KSA business is affected by the 2,70
Slide 16: Revenue Breakdown by Customer Type
This message/document has been classified as “Public” Revenue Breakdown by Customer Type The revenue share of stc and the Government increased YoY to 79% in H1 2024 Revenue Breakdown by Customer Type (SARmn) Management Commentary +3% Revenue growth was driven by 20% YoY increase in revenues from s
Slide 17: Profitability - Gross Profit Performance
This message/document has been classified as “Public” Profitability - Gross Profit Performance Gross profit margin rebounded to 25.1% in Q2 2024 from 22.1% in Q1 2024 Management Commentary Gross Profit Trend (SARmn) Gross margin decreased by 131 bps year-on-year to -5% 23.6% in H1 2024. 732 796
Slide 18: Profitability - Gross Profit Drivers
This message/document has been classified as “Public” Profitability - Gross Profit Drivers H1 2024 Gross Profit dynamics reflected projects mix and reallocation of projects across subsidiaries1 Gross Profit Breakdown by Entity (SARmn) Management Commentary -5% solutions stable gross margins profil
Slide 19: Profitability - EBITDA and Net Profit
This message/document has been classified as “Public” Profitability - EBITDA and Net Profit Quarterly EBTIDA and net profit margins continued to recover YTD EBITDA & Net Profit Trend (SARmn) Management Commentary 600 20.0 517 EBITDA grew 4% YoY in H1 2024 as a dip in gross margin 500 456 440 469 4
Slide 20: Balance Sheet - Working Capital
This message/document has been classified as “Public” Balance Sheet - Working Capital Working capital normalized in Q2 2024 after seasonality impact in Q1 2024 Accounts Receivable (SARbn) Accounts Payable (SARbn) Management Commentary 5 As of the end of June 2024, solutions’ working capital 5 4.3
Slide 21: Cash Flow Generation
This message/document has been classified as “Public” Cash Flow Generation Cash flow generation improved in Q2 2024 but remained negative in H1 2024 due to working capital cycle impact in Q1 2024 Capital Expenditures (SARmn) Management Commentary OCF surged 10x YoY to SAR 954mn in Q2 2024 due to 1
Slide 22: Returns and Dividends
This message/document has been classified as “Public” Returns and Dividends High returns and progressively growing dividends Return Ratios (%) Management Commentary Capex-light business model generates high 60% returns and allows for generous dividends. 55% 53.7% The company distributed dividend
Slide 23: Outlook and Guidance
This message/document has been classified as “Public” Outlook and Guidance solutions maintains its 2024 guidance 2024 Outlook H1 2024 FY 2024 Guidance Results Oil Price $80-$90 / bbl Revenue Growth 4% 8% - 11% KSA GDP Growth 4.4% KSA Fiscal Budget SAR 79 bn deficit EBITDA Margin 16.3% 13% - 15% 2024
Slide 24: Contact Details
1H 2024 Results Presentation 5 Contact Details
Slide 25: IR Contact Details
IR Contact Details Contact solutions by stc investor relations team Abdullah Al-Dayel Investor Relations Director +966 11 525 2985 aaldayel@solutions.com.sa Faisal Altimyat Investor Relations Manager +966 11 525 2159 faltimyat@solutions.com.sa Investor relations – solutions by stc
Slide 26: Shukran!
Shukran! | Stu © solutions by sie