Mobile Telecommunications Company Saudi Arabia · TADAWUL:7030
Mobile Telecommunications Company Saudi Arabia — Zain KSA — Q2 2024 Earnings Presentation
26 slides from Mobile Telecommunications Company Saudi Arabia's earnings presentation, 2024
Slide 1: Welcome to Zain KSA Q2 2024 Earnings call
Welcome to Zain KSA Q2 2024 Earnings call
Slide 2: Disclaimer
“a Expectations and projections regarding future performance of the company referenced in this presentation are ‘forward-looking statements within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at the time of their preparation b
Slide 3: Our Board of Directors
e Our Board of Directors ont. aan Chairman Ahighly accomplished Saudi businessman with a vast experience in multiple industries, HH is also.a board member of Almarai Company, Alyamamah Cement Company, Farabi Gulf Petrochemicals Company, Projects and Technical Contracting Establishment and Ashbal Al
Slide 4: Our Executive Management
e Our Executive Management Eng. Sultan Bin Abdulaziz ‘AlDeghaither Zain KSACEO Eng. AlDeghaither first joined Zain KSA in 2009 as Director of Network Plan July Ist, 2018; where he spearheaded the turnaround story of Zain KSA, extinguishing SAR 2B+ of ‘accumulated losses and driving the market cap by
Slide 5: Eng. Sultan Bin Abdulaziz AlDeghaither, CEO
a, Ws Yau Mibing Po, iS 48 X Sar ~~ vo Eng. Sultan Bin Abdulaziz AlDeghaither CEO
Slide 6: H1 2024 Financial Results
H1 2024 Financial Results ™ Financial Results for H1 202 Revenue Revenue Growth Net profit 5 6% 172 Billion Riyals | * Compared to Hi 2023 if Million Riyals SAR 1.6 billion investment for 5G signing Sustainability Charn- ARS Yas hhe network expansion andenhanging pions Charter with Ministry of Best
Slide 7: Operational Performance
° Operational Performance Vier’ ZQIN 1H24 a m 5G cit Yaqoot First Operator to Provide Full Growth in Yaqoot revenue 5G Coverage of Holy Sites yn Business Invest SAR 1.6 billion for 5G Growth in B2B revenue. network expansion in the Kingdom
Slide 8: Tamam Revenue Growth
e Tamam Growth Ir THE FASTEST LOAN IN KSA Revenue Growth 22% growth in H1 24 Vs H1 23
Slide 9: Population coverage
Population coverage 9 *3G Population coverage is reduced due to the shutdown of 3G sites in Riyadh and Jeddah cities.
Slide 10: 5G Network Expansion
© 5G Network Expansion gr", C4)
Slide 11: Hajj Season 1445
e Hajj Season 1445 a OY The first telecom operator Exceptional effort: to fully cover the holy sites with 5G bpp Ud during Hajj Season1445AH [ema Ge) mss Zain Zain KSA first operator to fully , ™ cover Holy Sites in 5G 241100 486 +45 @+1250 4150 22325% | faa7ex | |S272e +467 Growth indote trafic dot
Slide 12: Zain KSA Contribution in Saudi Vision 2030
® Zain KSA Contribution in Saudi Vision 2030 e am ° AN OY) x ° Red Sea ZQIN Global Zain KSA mentioned in Saudi Vision 2030 Report.
Slide 13: Zain KSA Contribution in Saudi Vision 2030
® Zain KSA Contribution in Saudi Vision 2030 A The Digital Partner For Media Oasis in collaboration with eG ete 4) Ministry of Media During World Economic Forum. Ministry of Media 4 es Ga Mer 3 Ow) ZAIN
Slide 14: Sustainability Champions Pledge with Ministry of Economy and Planning
Ow) ZAIN WORLD ECONOMIC FQRUM \USTAINABILITY CHAMPIONS buibAillg ale ola—_i_w tll 319) MINISTRY OF ECON’ Zain KSA signed a Sustainability Champions WORLD EC@NOMIC FQRUM Pledge with Ministry of Economy and planning
Slide 15: Ghazi Al-Gosaibi Award
© Ghazi Al-Gosaibi Award rue OC) Zain KSA wins the Ghazi Alghisaibi Award for Best Work Environment for Women! =_ oy “ee | iL! gary Zain KSA won the Ghazi Al-Gosaibi Award for the Best Work Environment for Women.
Slide 16: Zain KSA Empower National Talents
e Zain KSA Empower National Talents King Fahd University of Petroleum and Minerals Prinses Noura University
Slide 17: Sustainability
© Sustainability Child helpline awareness event Kebar (phase one completed) 0 60 /o 555 participants increase in the calls On ground training for elderly 372 volunteering hours
Slide 18: Mehdi Khalfaoui, CFO
as”, dr Ne, “ust - Mehdi Khalfaoui CFO
Slide 19: Revenue, Gross Profit, EBITDA and Opex
REVENUE [Million SAR] GROSS PROFIT [Million SAR] GROSS MARGIN % 71% 69% +10% 62% 59% 62% 61% 60% 59% +9% +15% 5,969 5,857 9,883 5,445 5,315 9,075 4,885 8,386 7,917 7,901 +7% +1% +4% 0% 1,484 1,545 1,540 2,392 2,535 2,552 2019 2020 2021 2022 2023 Q2 2023 Q1 2024 Q2 2024 2019 2020 2021 2022 2023 Q2 20
Slide 20: Debts and Financing Cost
Debts [Million SAR] Financing cost [Million SAR] 2,0 1.511 18 10.909 1,8 Operational Income/(Loss)11.000 898 10.233 900 Financing Cost * % 10.000 9.259 9.233 9.421 800 Borrowings (MFAs) 1,6 8.953 8.932 1.002 9.000 MOF Loan 1.066 642 650 700 1,4 13 8.000 54% 719 572 Other Loans (ARB) 12 41% 56% 600 1
Slide 21: Capex and Free Cash Flow
+152% 1,103 37% 946 +8% 690 23% Capex - Gross Addition 616 557 512 570 Capex/Revenue 2,943 375 13% 1,907 10% 10% 1,018 915 951 3% 2% 3% 62 52 68 2019 2020 2021 2022 2023 Q2 2023 Q1 2024 Q2 2024 2019 2020 2021 2022 2023 Q2 2023 Q1 2024 Q2 2024 3,334 2,204 FCF 1,292 568 770 489 2,531 -182 -159 2,043 1
Slide 22: Zain Saudi Arabia borrowings summary
With financial support from financial institutions, shareholders, and the Ministry of Finance. Zain Saudi Arabia borrowings summary Outstanding Amount in Description Party Million SAR Murabaha Facility Arrangement (MFA) Consortium of eight banks 5,323 Government Loan (MoF) Ministry of Finance 1,934
Slide 23: Company Debt
e Company Debt > oo) ) - Evolve cost transformation initiatives * Opportunity to approach business differently * Increasing efficiencies to lower operating costs * Aligning businesses to changing customer behavior AQ Committed investment in key capital projects * Network investment including 5G and
Slide 24: from Zain
Ow) fom Zain
Slide 25: investor.relations@sa.zain.com
investor.relations@sa.zain.com 25
Slide 26: Thank You
Thank You All rights reserved - © Zain KSA