Mobile Telecommunications Company Saudi Arabia · TADAWUL:7030
Mobile Telecommunications Company Saudi Arabia — Zain KSA — FY2023 Earnings Presentation
35 slides from Mobile Telecommunications Company Saudi Arabia's earnings presentation, March 2024
Slide 1: Welcome to Zain KSA FY 2023 Earnings call
Welcome to Zain KSA FY 2023 Earnings call
Slide 2: Disclaimer
Disclaimer 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 pre
Slide 3: Introduction
Introduction Zain KSA established itself as a reliable telecom operator and a digital service provider whose services include telecom services, 5G network, FinTech (Financial Technology), cloud computing, IoT solutions, fiber services, drones, and many others. Zain KSA is committed to the continuous
Slide 4: Our Values
Our Values Agility We adapt quickly to change and make timely decisions Belonging We believe that we are one family and Zain is our second home Customer centric We strive to provide a distinctive service that exceeds customers' expectations Inclusion We accept our difference and believe that our div
Slide 5: Our Strategic Pillars
Our Strategic Pillars The below eight pillars come as a natural evolution and extension of the strategy Zain KSA has successfully delivered on as well as the expectations of stakeholders. Creative positive impact Generate value from and for Adopting sustainable and Leveraging areas of strength, outc
Slide 6: Our Shareholder Structure
Our Shareholder Structure Zain Group provides Zain KSA with operational, technical, brand financial support. Substantial Shareholders Ownership 37% Zain Group Zain Group 37.04% Publice 63% Around 292,000 Tadawul: 7030 Shareholders Bloomberg: ZAINKSA:AB Issued Shares: 898,729,175 Paid Capital: SAR 8,
Slide 7: Our Financial History
Our Financial History Covid 19 Pandemic Financial History 9,883 10,000 9,075 8,386 7,917 7,901 8,000 7,306 7,531 6,699 6,741 6,927 6,404 6,523 6,244 5,934 6,000 4,000 3,004 2,000 1,267 505 332 485 280 231 550 12 0 -1,270 -972 -980 -2,000 -1,749 -1,651 -2,278 -1,925 -2,358 -4,000 -3,099 2008 2009 201
Slide 8: Our Board of Directors
Our Board of Directors Bader Nasser Al Kharafi Martial Caratti Ossama Matta Saud Abdullah AlBawardi Mr. Martial Caratti is a member of the Board Vice Chairman A renowned regional economic Mr. Matta was appointed the key role Mr. AlBawardi has more than 15 of Directors of Zain Group since November id
Slide 9: Our Management Team
Our Management Team Mehdi Khalfaoui Eng. Saad Al-Sadhan Eng. Abdulrahman Al-Mufadda Maher AlFawaz CFO CBWO CTO CSO Mr. Khalfaoui was appointed CFO in Feb-2017. Eng. Al-Sadhan’s professional career spans over 19 Mr. AlMufadda has more than 19 years in the Maher has over 18 years in the Network Engine
Slide 10: Eng. Sultan Bin Abdulaziz AlDeghaither, CEO
Eng. Sultan Bin Abdulaziz AlDeghaither CEO
Slide 11: 2023 Financial Results
2023 Financial Results Oy) es Re ‘owtl pro O | profi bg e O | edto 2 on-riyals ompare Lae iit =SSSaaSPae i ee
Slide 12: Distribution of Dividends
Distribution of Dividends Zain KSA achieves all-time record revenue and profit of SAR 9.9 billion, and SAR 1.3 billion respectively, with the board of directors’ recommendation for the distribution of dividends at a rate of 5% of the nominal share value.
Slide 13: Tamam Growth
Tamam Growth Net Profit Annual Revenue 52Million 284Million 13
Slide 14: Zain KSA Today
Zain KSA Today 8.9 Million 1,543 Zainers 253 Shops 42% Data Revenue 4,377 POS Customers Woman: 20 % (Excluding SMS & VAS) Local: 86% 10385 Total number of sites 63 SAR 18,891 TB/Day 99% 98% 94% 65% 566 Cities covered by 3G Blended ARPU Average daily data traffic 2G 3G 4G 5G 479 Cities covered by 4G
Slide 15: The World's First zero-carbon 5G Network
The World’s First zero-carbon 5G Network 54M +2000K Total reach Engagement
Slide 16: Shareek
Shareek Under the patronage of the Crown Prince, Zain KSA Signs Agreement with Shareek to Launch Hyper-Scale Data Centers
Slide 17: Zain Participation in LEAP23
Zain Participation in LEAP23 25+ 15+ agreements and strategic partnerships VVIPs attendees
Slide 18: Zain KSA participation across the Kingdom
Zain KSA participation across the Kingdom Corporate 5 events Leap23 A STEP AHEAD CAREER City Scape Global GIITS by Aramco Career Fair KFUPM FAIR 4 Career fair events Sa’e Career fair Google cloud event AlQassim University King Khalid University Career Fair Career Fair
Slide 19: Sponsorships
Sponsorships Diamond sponsor of GIITS by Aramco Founding Partner of Saudi Games 2023 Official Telecommunication Partner for LIV Golf Jeddah Tournament Strategic sponsor of Black Hat Signature sponsor of Google cloud Diamond sponsor in A STEP AHEAD CAREER FAIR
Slide 20: Strategic partnerships
Strategic partnerships Google Cloud AST Space Mobile AWS EMAR Cisco Rakuten Symphony Pioneers Systems Qualcomm Nine Tenths Alrajhi Bank Huawei Riyad Bank
Slide 21: Strategic partnerships
Strategic partnerships China Mobile EnseyabTo provide its services Mis Almoammar ArubaNetworks Quant SA DAWIYAT SamsungMobileSA
Slide 22: 5G Expansion
Our coverage continues GJJJ and it reached 64 cities 2gQin New cities Buk i 9 mL Allaith > 0. ’ \ albadai v Q 9 Samtah Alaflaj
Slide 23: Awards and recognitions
Awards and recognitions ISO 22301 for Business Continuity TM Forum Business Process Framework ISO/IEC 27001 certification for Information 'Labor Award' for ICT Talent Management Systems(BCM) conformance certification Security Localization • Best Diversity and Inclusion Program Yaqoot by Zain KSA Tak
Slide 24: Sustainability Rating
Sustainability Rating Increase in MSCI rating from Decrease Risk in Sustainalytics index BBB to A 25.1 medium risk 81% score A- A-
Slide 25: Sustainability Efforts
Sustainability Efforts E-Waste Initiative Sustainability at Leap Data Privacy: Be Aware Be Safe cybersecurity 100K Devices to be recycled • Support Local Content awareness session • 360 Accessible booth design +3K Reach • +3000 Plants in booth design to be preserved and distributed • 20K Sustainable
Slide 26: Youth Empowerment
Youth Empowerment Aanaab and Code School Finland Saudi Child Helpline Alfaisal University Prince Sultan University Ministry of Human Resources
Slide 27: Financial Update
Financial Update Mehdi Khalfaoui CFO
Slide 28: Financial Highlights
Financial Highlights GROSS PROFIT [Million SAR] REVENUE (Million SAR) GROSS MARGIN % +9% 6,000 5,445 +10% 75 71% 69% 70 Gross Profit margin % 5,500 4,885 62% 65 5,000 59% 59% 60 4,500 55 4,000 50 3,500 45 40 9,883 3,000 5,969 5,857 35 9,075 5,445 5,315 8,386 7,917 7,901 2,500 4,885 30 2,000 25 1,500
Slide 29: Financial Highlights
Financial Highlights OPERATIONAL INCOME [Million SAR] FINANCIAL DEBTS [Million SAR] % FINANCING COST 1,600 20 1,500 18% Operational Income/(Loss) 1,400 % 11,576 1,300 898 1,200 15 12,000 900 10,993 Financing Cost * 1,100 13% -18% 11,000 85 10,317 800 SHL 1,000 12% 10,000 2,317 85 900 719 9,021 Borro
Slide 30: Financial Highlights
Financial Highlights CASH BALANCE [Million SAR] CAPEX, CAPEX/ REVENUES [Million SAR] 3,000 40 37% +152% Capex - Gross Addition 35 2,500 Capex/Revenue 30 2,000 23% 25 1,103 1,500 2,943 20 946 13% +4% 15 1,000 1,907 10% 10% 557 512 10 375 500 1,018 915 951 5 0 0 2019 2020 2021 2022 2023 2019 2020 2021
Slide 31: Company Debt
Company Debt 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 5,233 Government Loan (MoF) Ministry of F
Slide 32: Company Debt
Company Debt Evolve cost transformation initiatives Taking Proactive Financial Measures • Opportunity to approach business differently • Increased capex guidance while • Increasing efficiencies to lower operating costs implementing efficient cost measures • Aligning businesses to changing customer b
Slide 33: Q&A
Slide 34: More Information
More Information Investor Relations For more information, please visit our website or contact us through: investor.relations@sa.zain.com +966 59 244 8888 Investor Relations app https://sa.zain.com/en/investors/share-statistics 34
Slide 35: Thank You
Thank You All rights reserved - © Zain KSA