Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — e& (Emirates Telecommunications Group Company PJSC) — Investor Day (February 2022)
144 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's investor day presentation, Feb 25, 2022
Slide 1: Capital Markets Day 2022
Capital Markets Day 2022 25 February 2022
Slide 2: Disclaimer
Disclaimer Emirates Telecommunications Group Company PJSC (“e&” or the “Company”) and its subsidiaries have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any n
Slide 3: Agenda
Agenda 8:30 - 8:45 • Event Starts Nazih Hassanieh, Vice President of Investor Relations – e& 8:45 - 9:00 • Welcome Keynote H.E. Jassem Mohamed Bu Ataba Alzaabi, Chairman – e& 9:00 – 9:30 • Business Overview & Strategy Hatem Dowidar, Chief Executive Officer – e& 9:30 – 10:00 • Financial Overview Kari
Slide 4: Welcome Keynote
Capital Markets Day 2022 25 February 2022 Welcome Keynote H.E. Jassem Mohamed Bu Ataba Alzaabi Chairman - e&
Slide 5: Our vision
Our vision From To Regional Telecom Giant Global Technology Group
Slide 6: We are
We are We are a global technology and investment group drawn to the future and the limitless possibilities we see in it. This restless curiosity urges us forward to search for more, for new, for better. Creating an alternate world powered and made possible by all of us. 6
Slide 7: We are the most valuable listed company in the UAE
Value creation remains our key focus Total Shareholder Return 220 (31/12/2020 = 100) 200 180 160 140 We are 120 THE MOST 100 VALUABLE 80 60 LISTED COMPANY 40 20 in the UAE 0 1/24/21 3/7/21 4/18/21 5/30/21 7/11/21 8/22/21 10/3/21 11/14/21 12/26/21 e& MSCI EM Telecom Source: Euroland.com 7
Slide 8: Strategy building blocks to become a Global Technology Group
Strategy building blocks to become a Global Technology Group Telecom UAE Telecom e& life e& enterprise e& capital International Accelerate growth in Continue leadership Acquiring, growing Accelerate Create a leading cloud, cyber and IoT position in core and and supporting the international growth co
Slide 9: Our brand architecture
Our brand architecture Telecoms 9
Slide 10: Foundations for future growth
Foundations for future growth 01 02 03 Building from a Successful Clear Ambition Position of Execution of for Sustained Leadership Transformation Value Creation • World’s Strongest • Maximizing value of • Dedicated business Telecom Brand UAE operations verticals in place to drive next level of growt
Slide 11: Empower societies, Innovate, Make possible
Empower Make Innovate societies possible 11
Slide 12: etisalat e&life e&enterprise e&capital
etisalat e&life exenterprise eXcapital
Slide 13: Business Overview
Capital Markets Day 2022 25 February 2022 Business Overview Hatem Dowidar Chief Executive Officer – e&
Slide 14: From a Regional Telecom Giant To a Global Technology Group
From a Regional Telecom Giant To a Global Technology Group
Slide 15: We are
We are We are a global technology and investment group drawn to the future and the limitless possibilities we see in it. This restless curiosity urges us forward to search for more, for new, for better. Creating an alternate world powered and made possible by all of us. 15
Slide 16: World's Strongest Telecom Brand
We are the World’s Strongest Telecom Brand!
Slide 17: Most Valuable Listed Company in the UAE
We are the Most Valuable Listed Company In The UAE Company Market Cap Market Company Market Cap Market 1 e& (previously Etisalat Group) $78.4 B ADX 6 Emirates NBD $23 B DFM International Holding Company Abu Dhabi Commercial Bank 2 (IHC) $75.6 B ADX 7 (ADCB) $17 B ADX 3 Alpha Dhabi Holding (ADH) $70.
Slide 18: Mobile & Fixed Services footprint
Mobile & Fixed Services Mobile Services UAE Pakistan Egypt Cote d’Ivoire KSA Morocco Benin Niger Mauritania Mali Togo Central Africa Burkina Faso Gabon Afghanistan Chad A footprint of population of ~600M, with over 159M Regional ICT market growth CAGR of >15% subscribers Operations in 16 countries,
Slide 19: 2021: An outstanding year for the Group
2021: An outstanding year for the Group Reaping the benefits of the transformation Maximizing value from the Regional footprint Growing adjacencies 1 2 3 core leadership organically & through M&A • Successfully executed the first year • Increased stake in Maroc Telecom • Enterprise Digital services
Slide 20: Strong Financial Performance (1/3)
Strong Financial Performance (1/3) Overall Group Results ~159 million 53,342 million Subscribers Revenue 26,721 million 9,317 million EBITDA @ 50.1% margin Net Profit @ 17.5% margin 19,732 million 80 fils OFCF (1) @ 37.0% margin Div. Per Share @ 75% Payout Ratio AA-/Aa3 Credit Rating (2) Source: e&
Slide 21: Strong Financial Performance (2/3)
Strong Financial Performance (2/3) Performance Compared to Industry & Peers Total Shareholder Return: Last 12 Months2 Share Price Evolution vs. Peers1 Market Capitalization (% USD, period ending on Dec 30th 2021) (18th Feb. 2022) MTN3 202.2% Verizon 225.97 AT&T 170.50 MTN3 168% Etisalat 95.9% T-Mobi
Slide 22: Strong Financial Performance (3/3)
Strong Financial Performance (3/3) Performance Compared to Industry & Peers Revenue Growth LCY3 EBITDA Margin Net Profit Margin (% YoY, Q3 YTD 2021/ Q3 2020) (%) (Q3 YTD 2021) (%) (Q3 YTD 2021) STC 8.2% Etisalat 51% STC 18% Axiata 5.9% Telenor 45% Etisalat 18% Veon 5.0% Ooredoo 45% Vodacom1 17% 1 2
Slide 23: Delivering on the Soft Agenda
Delivering on the Soft Agenda Sustainability & Diversity • We joined ICT sector for Paris We have managed to improve the MSCI ESG Sustainability Agreement commitments to Net- rating to “A”, after launching sustainability framework and Zero emission by 2050. enhancing policies in line with internatio
Slide 24: What's happening around us? (1/2)
What’s happening around us? (1/2) Globally, telecommunications companies are at a crossroads Telcos are facing challenges.. … hence, focusing on adjacencies to capture and accelerate growth Pressure on core telco revenues (Voice revenue and decline in legacy B2B core) • Operators are creating focuse
Slide 25: What's happening around us? (2/2)
What’s happening around us? (2/2) Technology disruption is creating both challenges and opportunities Source: Deloitte, Juniper, Analysis Mason, Gartner, McKinsey, Oliver Wyman, CES 2022, Bain NLP: Natural Language Processing | PBC: Packaged Business Capabilities| DLT: Distributed Ledger Technologie
Slide 26: Where do we stand?
Where do we stand? A privileged position in the MENA region to capture regional growth opportunities Undisputed market position across the MENA region, with a customer base of over 159 million customers ICT market size across UAE, KSA and Egypt is expected to grow by >15% p.a. from 2020-25 The globa
Slide 27: 4 strategic imperatives
Looking Forward We aspire to diversify internationally & vertically to transform from a Telco to a TechCo. The next wave of core Powered by digital customer experience, to 1 transformation in the UAE transform the core and de-risk against telco business market headwinds We have formulated 2 Expandin
Slide 28: Realizing the aspiration
Realizing the aspiration By establishing 5 focused business verticals, supported by common Group functions Telecom Telecom e& life e& enterprise e& capital UAE International Expand Accelerate growth in Continue leadership internationally to Acquiring, growing Create a leading cloud, cyber and IoT po
Slide 29: e& capital: Taking it a step further
e& Capital: Taking it a step further Setting the scene for a bullish growth arm Why Invest? Move faster in exploring new tech and business models e& capital Fill capability gaps by leveraging agility/innovation of start-ups We are well positioned to engage in Drive growth in adjacencies Venture Capi
Slide 30: Our tech footprint is growing and broadening
Our tech footprint is growing and broadening Several deals executed over the last three years 30
Slide 31: Final Thoughts
Final Thoughts 2021 was an excellent year for the group and our transformation has laid the foundation for the future. We have set the course towards irreversible growth and we are rejuvenating our Group with a new identity. We will evolve from a regional telecom giant to a Global Technology Group.
Slide 32: we are
we are
Slide 33: Financial Overview
Capital Markets Day 2022 25 February 2022 Financial Overview Karim Bennis Group Chief Financial Officer
Slide 34: A record year for the Group…
A record year for the Group… 34
Slide 35: 2021 Achievements: positive top line growth of +3.2%
2021 Achievements: e& delivered positive top line growth of +3.2% for the first time since 2018 Total Revenue (AED m) +3.2% 53,342 52,388 52,186 51,636 51,708 2017 2018 2019 2020 2021 35
Slide 36: 2021 Achievements: EBITDA level above 50%
2021 Achievements: Growing new revenue streams with focused cost optimisation supported EBITDA level above 50% despite margin pressure Highest EBITDA (AED m) and EBITDA Margin (%) EBITDA ever +1.0% 26,721 26,370 26,443 25,873 25,854 50.2% 49.4% 50.5% 51.1% 50.1% 2017 2018 2019 2020 2021 36
Slide 37: 2021 Achievements: Net profit record
2021 Achievements: Net profit acceleration in the last two years with consecutive net profit record Record Net Profit Net Profit after Royalty (AED m) +3.2% 9,317 9,027 8,601 8,615 8,693 8,421 8,412 8,263 7,078 6,742 MT Group 5,839 Consolidation 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 38: 2021 Achievements: Creating shareholder value
2021 Achievements: Creating shareholder value record share price and market cap supported by rising EPS for the first time to AED 1.07 e& Share Price and Market Cap Mkt Cap (USD/bn) Share Price (AED) 31.7 16.1 18.8 17.5 17.0 16.4 16.9 11.7 11.0 +87.6% 75 38 45 41 40 39 40 25 24 2013 2014 2015 2016 2
Slide 39: Consistent revenue growth across major markets
Consistent revenue Group Revenue growth across major Sources of Revenue Growth (AED m) markets Revenue Growth (AED m) & YoY Growth (%) FY 2021 vs FY 2020 13,613 53,342 176 53,342 Robust revenue growth 857 13,294 -82 attributed to recovery in the UAE 13,064 51,708 387 and continued improvement in 2
Slide 40: Sustained strong EBITDA margins
Sustained strong Group EBITDA EBITDA margins Sources of EBITDA Growth (AED m) proving the Group’s EBITDA Growth (AED m) & Margin (%) FY 2021 vs FY 2020 agility 26,721 158 26,721 6,741 32 26,443 353 6,573 26,443 Continuous focus on cost 6,301 29 optimisation to build resilience 51% 51% 50% 48% 48%
Slide 41: Investing in future opportunities: Group CAPEX
Investing in future Group CAPEX opportunities Sources of CAPEX Growth (AED m) CAPEX (AED m) & Intensity Ratio (%) FY 2021 vs FY 2020 Consolidated capex increased 8,362 1,221 8,362 Y/Y by 18% in FY’21; Excluding 2,944 2,937 7,096 938 -42 spectrum costs, capex up Y/Y by 2,728 7,096 -78 -773 Spectrum
Slide 42: Solid balance sheet & strong cash generation
Solid balance sheet Group Balance Sheet and Cash Flow & strong cash generation Balance Sheet (AED m) Dec-20 Dec-21 Cash Flow (AED m) Dec-20 Dec-21 Cash & Bank Balances 31,345 28,575 Operating 18,968 18,110 Maintained strong liquidity Total Assets 133,018 128,197 Investing (7,129) (8,775) position
Slide 43: Diversified and efficient debt profile
Diversified and Group Debt efficient debt profile Borrowings by Operations (AED m) Borrowings by Currency (%) Optimised borrowing costs and 16,101 Others debt profile Euro 28% 35% Successful bonds issuance in 5,933 June 2021 that was 6x 2,194 1,505 oversubscribed USD MAD 23% 14% 63% of debt is
Slide 44: Track record of consistent dividends
Track record of Dividends consistent dividends Dividends per Share (AED) Cash Dividends (AED m) to shareholders 10,431 6,954 3,477 6,954 0.40 Proposed final dividends of 40 3,477 3,477 3,477 0.80 0.80 0.80 fils per share bringing the full 3,477 3,477 3,477 year dividends to 80 fils per 2019 2020 2
Slide 45: Financial Highlights Country Performance
Financial Highlights Country Performance
Slide 46: Etisalat UAE: Financial performance continues to be resilient
Financial Etisalat UAE performance EBITDA (AED m) and EBITDA Margin (%) Revenue (AED m) and YoY Growth (%) continues to be resilient 30,185 15,765 7,807 3,842 3,826 15,471 UAE turned around the revenue 7,402 7,441 29,888 3,670 decline and reached the AED 30 52% 53% 51% 5% 50% 49% billion revenue m
Slide 47: UAE Breakdown & Key KPIs
UAE Breakdown & Key KPIs: Revenue turn-around in 2021 Mobile Revenue(1) (AED m) Fixed Revenue(2) (AED m) Other Revenue(3) (AED m) 2,794 10,789 2,811 11,199 2,202 8,269 2,705 2,794 2,638 10,764 2,779 11,151 1,969 1,957 7,900 6% 1% 5% 0% 0% 0% 12% -1% -2% 1% 1% -1% -15% -12% -7% Q4’20 Q3’21 Q4’21 FY’2
Slide 48: Maroc Telecom Group
Maintaining Maroc Telecom Group(1) exceptional EBITDA Revenue (AED m) and YoY Growth (%) Subscribers (m) margin despite top line pressure 74.2 3,521 3,522 13,922 72.9 72.8 3,440 13,535 Subscriber growth is driven by 6% domestic and international 3% 2% 2% operations -2% MT Group’s domestic market
Slide 49: Etisalat Misr
Sustaining double Etisalat Misr digit growth in Revenue (AED m) and YoY Growth (%) Subscribers (m) revenue and profitability 27.8 1,367 5,027 27.0 1,303 26.4 4,170 1,124 Solid subscribers gains due to 22% 19% 21% 22% 21% higher demand for connectivity Consistent execution and mobile data drives
Slide 50: PTCL Group
Growth across all PTCL Group segments while Revenue (AED m) and YoY Growth (%) Subscribers (m) investing in the business 25.5 771 771 3,116 25.2 25.2 747 2,940 7% Growth in fixed and mobile 3% 6% broadband subscribers Revenue growth driven by data -3% -7% in mobile and fixed; in addition to grow
Slide 51: Financial Highlights FY 2021
Financial Highlights FY 2021: Improved revenue and profitability while sustaining strong cash flow generation Revenue EBITDA Net Profit CAPEX(1) AED Billion AED Billion AED Billion AED Billion 53.3 26.7 9.3 7.1 YOY Growth YOY Growth YOY Growth YOY Growth +3.2% +1.0% +3.2% +9.5% Free Cash Flow(2) EBI
Slide 52: 2022 Guidance
2022 Guidance: Delivered strong performance against FY 2021 Guidance and Positive Outlook for 2022 Revised Guidance Actual Guidance Financial KPI FY 2021 FY 2021 FY 2022 Low single Revenue Growth % +2.0% to +3.0% +3.2% digit growth EBITDA Margin % ~50% 50.1% ~49% EPS (AED) ~1.05 1.07 ~1.08 CAPEX / R
Slide 53: we are
we are
Slide 54: Etisalat UAE Business Overview
Capital Markets Day 2022 25 February 2022 Etisalat UAE Business Overview Masood M. Sharif Mahmood Chief Executive Officer – Etisalat UAE
Slide 55: Grow Transform Excel
Grow Transform Excel
Slide 56: Strong Foundation (1/2)
Strong Foundation (1/2) Telecom Core remains a top priority 1 • Revenue Market Share 72.1% Market leadership in UAE • Mobile Revenue Market Share 67.0% • Fixed Revenue Market Share 79.7% • Fastest Mobile Network in World 2 years in a row Global network leadership • Broadband Ranking 13th Globally •
Slide 57: Strong Foundation (2/2): Robust results
Strong Foundation (2/2) Robust results Net Revenue (AED M) EBITDA (AED M), Net Profit (AED M), Capex (AED M) Margin (%) Margin (%) +1.0% -1.9% -1.7% -22.6% 29,888 30,185 15,765 15,471 7,943 7,809 3,413 2,640 52.7% 51.3% 26.6% 25.9% 2020 2021 2020 2021 2020 2021 2020 2021 57
Slide 58: Focus to Grow: Establishing UAE Telco
Focus to Grow Establishing UAE Telco UAE Telco: Continue leadership position in core and enhance digital customer experience and operational agility 1 Overall Group Strategy to evolve into a Technology Company puts increased focus on distinct connectivity and digital business units The “Connectivity
Slide 59: A Thriving UAE Market
A Thriving UAE Market Recovery driven, future focused 4.2% Growth is expected in 2022 1.5% Between 2021-24, back to Real & ~3% for 2023 and 2024 Population pre-Covid level GDP Growth Projects the 50 Creating significant ~2% Expected to remain stable ~18% Higher than pre-Covid opportunities Inflation
Slide 60: Dynamic ICT Marketplace
Dynamic ICT Marketplace A crucible of opportunities Roll-out of Next Generation Networks (5G, Edge) will enable new use cases for B2C and B2B segments e.g. NaaS, Pvt. Networks, Gaming etc. 4th industrial revolution and adoption of digital technologies (e.g. AI, Big Data, Cloud) are driving digital t
Slide 61: Telecom UAE 2024: Continued leadership as a digital telco
Telecom UAE 2024 Continued leadership as a digital telco Strategic Pillars Strategic Priorities Core premiumized with curated digital B2C experiences that maximize engagement Grow Our Positioning Core & Digital Services Transformed from Telecom Provider to B2B Telecoms Orchestrator Digital Telco tha
Slide 62: Final Thoughts
Final Thoughts 2021 had many notable achievements, we succeeded in delivering against our financial and operational targets, while planning for our future. Etisalat UAE growth is pivotal for the continuity of its role of being both an enabler and beneficiary of group and adjacent verticals’ growth.
Slide 63: we are
we are
Slide 64: Mobily
Capital Markets Day 2022 25 February 2022 Mobily Salman AlBadran Chief Executive Officer – Mobily
Slide 65: Saudi Arabia is a key market
Saudi Arabia is a key market Population by nationality (millions, %) Households1 by geotype (millions) +2.2% +2.2% 40 35.0 36.2 37.5 8 33.6 32.9 34.0 6.3 6.5 6.7 15.5 6.0 6.0 6.1 12.6 11.7 12.6 13.4 14.4 6 0.9 0.9 (41%) 0.9 0.9 0.9 0.9 (38%) (36%) (37%) (38%) (40%) 20 4 4.5 4.4 21.0 (62%) 21.2 (64%)
Slide 66: Saudi Arabia regulatory environment is very active
Saudi Arabia regulatory environment is very active KSA Among top 10 Worldwide in IPv6 adoption Mobily has highest License (UL) and Cloud Computing Registration (Class C) Mobily wins CITC Best User Experience Award for 2021 National Roaming Launched in all KSA USF areas Open Access initiative continu
Slide 67: Mobily GAIN strategy unlocks possibilities
Mobily GAIN strategy unlocks possibilities PURPOSE GROW G core revenues To be the Better Choice to Unlock Possibilities HOW ACCELERATE By Empowering the Digital Economy Empowering the Digital A digital revenue streams BY BEING Economy to The Everyday Hero Unlock IMPLEMENT Possibilities I and optimiz
Slide 68: Mobily embraces technology excellence
Mobily embraces technology excellence Prized Network All 5G 4G Everywhere Largest IOT Mobily #1 Total population All Mobily sites with Network in customer experience coverage in Riyadh 4G super-coverage in Middle East in Saudi Arabia in Q1 2022 (L800) in Saudi Arabia (CITC, Ookla Speedtest) 68
Slide 69: Mobily awarded best customer experience in 2021
Mobily awarded best customer experience in 2021 Mobily is awarded the best customer experience in the Telecom sector in 2021 10 Lowest number of complaints in fixed internet for more than Qtr two years since Q2 - 2019 Lowest Complaints in 17 mobile internet service for more than Four years Since Q3
Slide 70: Sustainability at Mobily
Sustainability at Mobily Our Contribution to the Sustainable Development Goals work Sustainability Framework Accountable Positive Enterprise Community Impacts Safeguarding the Responsible Planet Employer Marketplace & Customers ESG 2021 Performance at a Glance Launched 3-year Mobily Sustainability S
Slide 71: Transformation is progressing well
Transformation is progressing well 1. Network Transformation Transformation as a holistic 2. Information Technology Transformation approach across all key business 3. Digital Transformation areas to create a 4. Organizational Transformation more efficient, faster, better 5. Process Transformation or
Slide 72: Key Financial Highlights: Record Revenues and EBITDA
Key Financial Highlights Record Revenues and EBITDA Revenues EBITDA and EBITDA Margin (In SAR Million) (In SAR Million) EBITDA Margin +5.6% Pre IFRS16 EBITDA +4.6% 14,834 5,594 14,046 5,350 13,450 4,947 11,865 4,531 4,318 38% 37% 38% 38% 2018 2019 2020 2021 2018 2019 2020 2021 Revenues increased +5.
Slide 73: Key Financial Highlights: Solid Cash Flow Generation
Key Financial Highlights Solid Cash Flow Generation CAPEX/ CAPEX to revenues % Operational Cash Flow (EBITDA – CAPEX) (In SAR Million) (In SAR Million) CAPEX/Revenues% CAPEX +36.9% -25.1% 2,819 2,760 2,792 3,502 24% 2,092 2,558 21% 20% 14% 2,187 1,712 2018 2019 2020 2021 2018 2019 2020 2021 CAPEX ea
Slide 74: Key Financial Highlights: Balanced Net Debt levels
Key Financial Highlights Balanced Net Debt levels 13,368 13,109 12,510 13,036 12,367 12,128 Net Debt 2.60x 2.45x 2.30x 2.26x 2.17x and 2.40x Net Debt /EBITDA (In SAR Million) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net Debt and Net Debt / EBITDA improvement owing to: Mobily’s ongoing delev
Slide 75: Key Financial Highlights: Gaining Profitability
Key Financial Highlights Gaining Profitability +36.8% 1,072 783 Net Income (In SAR Million) 31 (123) 2018 2019 2020 2021 Increase in net income by 36.8% on the back of: Healthy revenue growth coupled with EBITDA margin stability, cost discipline, deleveraging, and lower SAIBOR Highest level of n
Slide 76: The way ahead in 2022…
The way ahead in 2022… Focus on increasing Revenue Growth, Profitability and Financial Performance Focus on Business growth Push Consumer growth Expand Wholesale Continued shift from “Integrated Telco” to “Digital Telco” Continued Technology Investment Complete Transformation Accelerate Sustainabili
Slide 77: we are
we are
Slide 78: Etisalat Misr
Capital Markets Day 2022 25 February 2022 Etisalat Misr Hazem Metwally Chief Executive Officer – Etisalat Misr
Slide 79: EM 2021 Performance
EM 2021 PERFORMANCE Progressing steadily towards higher shareholders expectations by enhancing company value drivers 2021 2021 2021 2021 41 % 20 % 15 % 4% EBITDA EBITDA FREE RETURN ON 2021 MARGIN GROWTH CASH FLOW2 CAPITAL GROWTH EMPLOYED3 20 % IMPROVMENT REVENUE1 GROWTH 2021 2021 2021 2021 14 % 48 %
Slide 80: Country Overview
COUNTRY OVERVIEW Resilient macro economy with a promising outlook, and new trends dominating the industry MACROECONOMIC HEALTH MARKET FEATURES OUTLOOK IMF 2025/2026* GDP COMPETITION Forecasted $438bn in 2022 vs. $396bn in 2021 Fierce market competition with international 2026 2026 A strong rebound t
Slide 81: Industry Overview
INDUSTRY OVERVIEW The landscape of the Egyptian telecom sector continues to show promise & opportunity Attractive Market Digitization Enterprise Adjacencies OVERVIEW Mobile market sustains strong One of the main enablers & Enterprise growth supported by New revenue streams to expand growth of ~16% i
Slide 82: Competition Landscape
COMPETITION LANDSCAPE A good momentum in mobile revenue share growing measurably faster than competition Value EBITDA Share Margin orange vodafone WE 19.4 % 9.5 % 15.7 % ~EGP2.8 bn REVENUE REVENUE REVENUE MOBILE GROWTH * GROWTH * GROWTH * REVENUE * 2020 28.8% 41 % 23.9% NA 43.9% 41% 3.4% NA 2021 29.
Slide 83: EM Commercial Performance
EM COMMERCIAL PERFORMANCE Strong double digit growth in consumer & enterprise capitalizing on differentiated propositions Mass Young Professionals Youth High Value Increasing uptake of Economic Consumer well positioned segmented market Best value 1st mover Fully customizable data Large voice
Slide 84: EM Digital Performance (1/3)
EM DIGITAL PERFORMANCE (1/3) Growing EM’s digital services & prioritizing customer engagement MY ETISALAT APP EM WALLET Economic NEW TO 25% 49% MY MY ETISALAT MONTHLY DIGITAL ETISALAT APP REVENUE BASE APP Customer Experience GROWTH GROWTH ’21 VS ’20 ’21 VS ’20 5X 8X 1.8X Digitization WALLET WALLET W
Slide 85: EM Digital Performance (2/3)
EM DIGITAL PERFORMANCE (2/3) Expanding EM’s digital initiatives to ensure continuous improvement in the quality of service RETAIL CUSTOMER CARE Economic Closely monitoring the quality of service Digitization was a key enabler in reducing the contact rate leading to work load in our shops reduction a
Slide 86: EM Digital Performance (3/3)
EM DIGITAL PERFORMANCE (3/3) Fostering EM’s digital initiatives to increase operational efficiency & work empowerment AGILE EFFORTS SECURING & ENABLING EFFECTIVE SIGNIFICANT IMPROVEMENT IN PEOPLE INDICES DIGITAL OPERATIONS Economic Engagement Index Performance Sustainable in % Excellence in % Engage
Slide 87: EM Network Capability
EM NETWORK CAPABILITY A result driven mindset focused on investment rationalization & operational efficiency Strong growth in 4G continuity and higher LTE handsets penetration will pave the way for further data growth as the main revenue driver in 2022 while capitalizing on the newly 2021 2021 2021
Slide 88: EM 2022 & Beyond
EM 2022 & BEYOND Maximize value from core services & beyond to improve EM’s financial performance & grow market share Customer Segmented B2B & ICT Experience Offering Opportunities 1 Unique CX across customer 2 Tailored offerings catering for 3 Accelerate growth & develop touchpoints customer needs
Slide 89: Key Messages
KEY MESSAGES The economy showed progressive performance throughout 2021 signaling for stability and evident in improving macroeconomic indicators Telecom industry showed a solid performance in 2021, driven mainly by data services, with a double-digit growth, supported by government initiatives towar
Slide 90: Q&A
Q&A 90
Slide 91: PTCL Group
Capital Markets Day 2022 25 February 2022 PTCL Group Hatem Bamatraf Chief Executive Officer – PTCL Group
Slide 92: Pakistan market has significant potential
Pakistan market has significant potential Key Highlights 220 Population 5th most populous country 189 Cellular Subscribers 86% of population Mn Mn Mobile Broadband 68% Youth Segment Driving market growth 108 Users < 30 years Mn 49% penetration GDP Growth Fixed Broadband 5.4% Rebounding from -0.5% 2.
Slide 93: PTCL Group is the only integrated telecom provider in Pakistan
PTCL Group is the only integrated telecom provider in Pakistan PTCL is 2nd Largest Operator by Revenue No. 1 Broadband & Business Emerging MBB Fastest Growing Microfinance Solutions Provider Operator Bank Largest Broadband base of 22M Active Base & 2nd Best in Rapidly increasing base of ~ 3M 1.6m an
Slide 94: Highest Revenue growth since 2013
Highest Revenue growth since 2013 contributed by all OPCOs REVENUE EBITDA NET PROFIT CAPEX 137.6 41.7 2.6 35 PKR Bn PKR Bn PKR Bn PKR Bn +6% +4% -21% 🔻 +16% Y/Y Y/Y Y/Y Y/Y Margin: 30% Capex to Rev.: 25% Excluding 4G license 94
Slide 95: All OPCOs showed healthy growth
All OPCOs showed healthy growth FY’20 FY’21 Growth Revenue 71.8 76.9 +7% EBITDA (Margin) 19.6 (27%) 20.6 (27%) +5% (0 pp) Net Profit 6 6.9 +14% CAPEX 13 20.5 +58% Revenue 53.8 56.1 +4% EBITDA (Margin) 18.4 (34%) 18.7 (33%) +2% (-1 pp) Net Profit -3.6 -5.4 -52% CAPEX (excluding 4G license) 16.8 14 -1
Slide 96: PTCL Retail revenue showed promising growth in 2021
PTCL Retail revenue showed promising growth in 2021 Backed by significant investments in Fixed Broadband 44Bn Retail Revenue (PKR) 31 % 6% of PTCL Group Revenue YoY Growth 96
Slide 97: PTCL continues to lead Broadband market in 2021
PTCL continues to lead Broadband market in 2021 PTCL has achieved highest Market Share and Net Adds contribution in Broadband 2.1 1.6 10% 12% 75% 50% Mn Mn Industry Subs PTCL Subs Industry Revenue PTCL Revenue PTCL PTCL Net (Mn PKR) (Mn PKR) Growth Growth Market Share Adds Share As of 31st Dec’21. S
Slide 98: Flash Fiber successful launch as a brand
Flash Fiber successful launch as a brand
Slide 99: PTCL becomes fastest growing FTTH operator in Pakistan
PTCL becomes fastest growing FTTH operator in Pakistan 85 % 62 % Aggressive FTTH rollout Subs YoY YoY ‘21 99 2.2 1.4 Home passes 53 Subs Subscriber ‘20 Growth Y'20 Y'21 Y'20 Y'21 FTTH Subs (‘000) FTTH Revenue Home passes (Bn PKR) 99
Slide 100: B2B continued the growth momentum in 2021
B2B continued the growth momentum in 2021 33Bn B2B Revenue (PKR) 23 % 8% of PTCL Group Revenue YoY Growth 100
Slide 101: Diverse range of Business solutions
Diverse range of Business solutions Focus on Connectivity to Solutions & Leadership in ICT PTCL connects Pakistan to outside World Data Centres Security Submarine Operations Center Cable Digital Carrier of Carriers Over Over Solutions 60% of internet transit 1,000 50,000 Racks & Counting Square Feet
Slide 102: Ufone contributes significantly to Group revenue in 2021
Ufone contributes significantly to Group revenue in 2021 56Bn Ufone Revenue (PKR) 39 % of PTCL Group 4% Revenue YoY Growth 102
Slide 103: 4G Launch
Ufone acquired 9MHz 4G LAUNCH 4G spectrum license in Sep’21
Slide 104: Resulted in encouraging 4G trends
Resulted in encouraging 4G trends 12.5 400 54 % % % Industry 2nd highest 7.1 6.3 390 24 15 78 Sep'21 Dec'21 Sep'21 Dec'21 Sep'21 Dec'21 4G Active 90 Subs (Mn) 4G Net Adds (‘000) 4G Usage Volume (PB) 104
Slide 105: Took over 2nd best position for Industry Throughput speed
Took over 2nd best position for Industry Throughput speed 3x Increase in Ufone Ufone – Pre Spectrum Ufone Telenor Zong Jazz 34 31 31 32 26 26 25 24 22 23 18 16 13 10 10 9 9 8 Post 8 6 Pre Islamabad Karachi Lahore Nationwide (Mbps) Major Cities (Mbps) Source: Ookla 105
Slide 106: Backed by aggressive and timely rollout
Backed by aggressive and timely rollout Cumulative 4G Towers (‘000) Sep’21 Oct’21 Nov’21 Dec’21 4.2 4.5 5 5.7 (60% of total towers) 106
Slide 107: PTCL & Ufone – Digital Portfolio
PTCL & Ufone – Digital Portfolio MY UFONE APP MY UFONE APP UFONE DIGITAL DOWNLOADS ACTIVE USERS RECHARGES % 2021 2021 2021 1.8Mn +19% 808k +25% 12.1Bn 25% +9pp PTCL Touch APP PTCL DIGITAL DOWNLOADS ONLINE BILL PAYMENTS 2021 2021 1.4Mn k +26% 672k +20% 107
Slide 108: Ufone, PTCL customer experience remained higher than average
Ufone, PTCL customer experience remained higher than average 2nd Highest in the Industry TRI*M for Mobile Operators TRI*M for FTTH Operators Industry Industry 62 Avg 59 62 Avg 58 56 56 58 58 57 48 50 Ufone Jazz Telenor Zong PTCL Strom Fiber CVCV Nayatel Fiberlink Optix Source: Kantar, TRIM Scores fo
Slide 109: Cost Optimization Initiatives
Cost Optimization Initiatives -9.7 12.3 % % OPEX Growth Inflation YoY (‘21 vs.’20) YoY G&A O&M Contracts Fuel & Power • Call center staff rationalization • Rate negotiations • Hybrid Solutions • Scope Optimizations • Space & Cooling Optimization Network Maintenance • Rate negotiations SAC • Scope Op
Slide 110: U Bank Revenue continues to grow in 2021
U Bank Revenue continues to grow in 2021 Significant increase in Loan & Deposit portfolio 11Bn U Bank Revenue (PKR) 8 % 8% of PTCL Group Revenue YoY Growth 110
Slide 111: Expanding footprint & portfolio
Expanding footprint & portfolio Microfinance Loans & Deposits Islamic Banking 207 195 Microfinance Branch No. of Network ATMs Banking International Remittances Services Rural & Urban Retail Banking 2.7Mn 346k No. of No. of Corporate Finance & Investment Deposit Customers Loan Customers 19 16 % % 46
Slide 112: U Bank Awards in 2021
U Bank Awards in 2021 Rural/Cooperative Bank of the Year – Pakistan Fastest Growing Microfinance Bank in Pakistan 3G Creativity and Innovation Award 3G Best Emerging Leader in Corporate Sector Award Global Diversity & Inclusion Benchmark 112
Slide 113: Strategic Priorities
Strategic Priorities Customer Innovation Experience Most innovative player with trials & Best in Class with optimizations on new superior quality products technologies & services Connectivity Upscale Growth @ Scale to Solutions People & Most dominant player through scaling up Leadership in ICT & Org
Slide 114: we are
we are
Slide 115: e& enterprise
Capital Markets Day 2022 25 February 2022 e& enterprise Salvador Anglada Chief Executive Officer – e& enterprise
Slide 116: Etisalat Digital was launched in 2015 as the digital transformation unit
Etisalat Digital was launched back in 2015 as the business unit driving digital transformation for enterprises & governments Etisalat Digital Pillars Etisalat Digital Achievements Best Digital Experts Advanced Digital Platforms Historical performance 2021 Financials Multicloud CPaaS 24% CAGR Designe
Slide 117: e& enterprise created as carve out of Etisalat Digital
To execute e& strategy to accelerate growth and unlock additional value we have created e& enterprise as the carve out of Etisalat Digital 117
Slide 118: e& enterprise is born to accelerate growth in Cloud, Cyber and IoT
e& enterprise is born to accelerate our growth in Cloud, Cyber and IoT, and expand our international footprint through new, fast-growth business models Vision To be the Leading Digital Enabler for Enterprise & Governments within the MENAP region Strategy Design Principles 01 02 03 Expose & Attract e
Slide 119: Cloud & Data Center team helps customers on their journey to the cloud
The Cloud & Data Center team helps customers on their journey to the cloud with an e2e Multicloud proposition & supported by the strongest data center network in the UAE Cloud & DC Offering Highlights Multicloud Strong Partnership Data Center Approach Ecosystem JV with G42 Key References 119
Slide 120: Help AG is the cybersecurity market leader
On the cybersecurity front, Help AG is the market leader with the most comprehensive portfolio in the region and having reached 19% market share in the UAE Cybersecurity Offering Highlights Trusted Cybersecurity 19% Market Share International Advisor in UAE Presence 360° Market Offering E2E Cybersec
Slide 121: IoT & AI customer centric proposition
In IoT & AI, Enterprise Digital has developed a customer centric proposition using the latest platforms and technologies and incorporating AI at the center of its solutions IoT & AI Industry Offering Highlights Smart & Sustainable Safe Industry X.0 Digital Digital City City Healthcare Government Ver
Slide 122: Key strategic references with 24x7 managed operations
e& enterprise has a solid position as the digital enabler, having secured key strategic references with 24x7 fully managed operational capabilities Strategic References First Smart District Reference in the Strategic Agreement with ADDA as part Abu UAE for DMCC Dhabi government’s Cyber Eye for real-
Slide 123: FutureNow is the company's innovation engine
FutureNow is the company’s innovation engine and a reference model for collaboration with 3rd parties Digital Experience Centers & Scaleups Program Venture Builder Open Innovation Centers Cocreation Lab Futurenow Calls ERATE EXPERIENCE INSPIRE Program Open Innovation Centers Future Now Talks most Sh
Slide 124: Ambition to double revenues by 2025
e& enterprise’s ambition is to double its revenues by 2025 and accelerate growth Key Priorities Ambition (2021-2025) Accelerate growth through M&A and Regional Expansion 36% X2 International Revenue by 2025 Revenue Reinforce e& enterprise Commercial Model Contribution Invest in the expansion of Capa
Slide 125: we are
we are
Slide 126: e& life
Capital Markets Day 2022 25 February 2022 e& life Khalifa AlShamsi Chief Executive Officer – e& life
Slide 127: 2022: e& life - Birth of a New Growth Arm
2022: e& life - Birth of a New Growth Arm Two-fold value creation engine for the Group SCALE-UP NEW CONSUMER DIGITAL BUSINESSES VALUE CREATION Two objectives for Value creation for e& life + FOR ETISALAT the Group GROUP SUPPORT TO PREMIUMIZE CORE REVENUE 127
Slide 128: Building on Strong Foundations of Growth
Building on Strong Foundations of Growth An array of relevant financial, operational and non-tangible advantages 150m+ Customer Base With real time insights supported by rich sources of data and strong ~600m commercial capabilities World’s Strongest population in Telecoms Brand 16 countries With Bra
Slide 129: Leading to Clear Portfolio Focus
Leading to Clear Portfolio Focus Fintech and Multimedia initially selected for new business scale-up Core/Connectivity Digital Services Cloud, IoT, Security Smart Connectivity and B2B Managed and Infrastructure Professional Services e& life Portfolio Scope Consumer Home and personal communications M
Slide 130: Fintech is Ready for Scale-up
Fintech is Ready for Scale-up Given Market Size and Right to Win Fintech is on the rise… …and Etisalat has the Right to Win $1 out of every Unicorns more 1/3 of all Large customer base that offers $5 goes to than doubled unicorns are scalability and quick take-up fintech in 2021 fintech Availability
Slide 131: Multimedia is Ready for Scale-up
Multimedia is Ready for Scale-up Given Market Size and Right to Win Multimedia is on the rise… …and Etisalat has the Right to Win USD 8.5 150+ million subscribers – providing billion opportunity for instant scale opportunity by 2025 Superior Infrastructure: Access Network (4G/5G and Fibre), Data Cen
Slide 132: Our Fintech and Multimedia Vision
Our Fintech and Multimedia Vision North Star established for each business line FINTECH MULTIMEDIA Become the Leading Create a Regional Fintech Player in the 360 Degree Media Region within and Entertainment 5 years Business 132
Slide 133: Fintech
Fintech life
Slide 134: A powerful Vision
A powerful Vision The most comprehensive platform in the core of fintech ecosystem by enabling partnerships Wealth Payments Management Insurance Remittance BNPL1) & Open Lending Banking Note: (1) BNPL = Buy Now Pay Later 134
Slide 135: Clear Go-to-Market Strategy
Clear Go-to-Market Strategy Customer and merchant propositions enhanced by Etisalat core assets Super App Consumer Proposition Merchant Proposition International & Domestic Marketplace Remittance • Single App • Advanced partnerships for all credit scoring Soft POS Merchant Micro Online & Solutions P
Slide 136: Our aspiration
Our aspiration Become the Leading Fintech Player in the region within 5 years A wholly owned fintech arm after Organic growth increasing ownership leveraging telco assets and to 100% from inorganic growth Partner Bank in 2021 A stand-alone fintech Enriched fintech app in Extending licenses organizat
Slide 137: Multimedia
Multimedia life
Slide 138: Opportunity for Multimedia e& leadership in MENAP
Opportunity for Multimedia e& leadership in MENAP While global and regional players are threatening this space, the market is not yet saturated leaving an opportunity for e& life to establish its leadership NON-EXHAUSTIVE Despite increased competition in the … media penetration in the region is stil
Slide 139: E-Vision as e&'s media vehicle
E-Vision as e&’s media vehicle Enhancing service offering, target market and business model E-Vision today E-Vision future vision Largest 600+ 15k hours 650+ Video Gaming Audio content HD/3D SVOD content TVOD library aggregator channels movies Original local content Casual games – Exclusive music/ i
Slide 140: Priority Markets
Priority Markets Focusing on e&’s presence and large consumer economies % of Rationale Population Population % of MENAP MENAP GDP GDP Current e& Presence Low-hanging fruit – deploy to main PRIORITY 1 markets where e& 400 Million 50% has an OpCo Priority MENAP markets GCC Clear synergies – linguistic
Slide 141: Wrapping up
Wrapping up Snapshot of e& life Building on strong foundations of growth i.e. footprint, scale of base, brand strength To drive growth in overall e& revenue and to create value Focusing on Scaling Sizeable/Fast Growing Sectors where we have the Right To Win (Initial focus on Fintech and Multimedia)
Slide 142: we are
we are
Slide 143: Closing Remarks
Capital Markets Day 2022 25 February 2022 Closing Remarks Hatem Dowidar Chief Executive Officer – e&
Slide 144: we are
we are
e& (Emirates Telecommunications Group Company PJSC) — Investor Day (February 2022) on 6ix