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 2024)
134 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's investor day presentation, Feb 21, 2024
Slide 1: Capital Markets Day 2024
Capital Markets Day 2024 st 21 February 2024 UAE Confidential Restricted
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: Content
CONTENT 9:00 – 9:10 Introduction Nazih Hassanieh, Head of Investor Relations - e& 9:10 – 9:30 e& Overview Hatem Dowidar, Group Chief Executive Officer - e& 9:30 – 9:50 e& Financial Performance Karim Bennis, Group Chief Financial Officer - e& 9:50 – 10:10 e& Strategy Harrison Lung, Group Chief Strate
Slide 4: e& Overview
e& Overview Hatem Dowidar Group Chief Executive Officer, e& UAE
Slide 5: Our Vision
Our Vision To be a leading global technology group UAE
Slide 6: 2023 Key Achievements: Financial
2023 Key Achievements Financial achievements Our strategy continues to drive profitable growth Revenue EBITDA Net Profit Dividend 53.8bn 26.1bn 10.3bn 80 fils per share Consistent history of 2.5% YoY 3.7% YoY 3.0% YoY dividend payments despite Growth Growth Growth macroeconomic turbulence At Constan
Slide 7: 2023 Key Achievements: Investments
2023 Key Achievements Investments Telco Investments TechCo Investments 1) Hungary Serbia Slovakia Bulgaria 2) 1) Note: 1) Deals signed but not yet closed 2) Deal signed on Dec 2022 and Closed on May 2023 7 Restricted
Slide 8: Our Group
Our Group Increased footprint to 32 countries with a Telco and/or TechCo operations with additional 4 countries for PPF telecom A footprint of 32 countries and population of ~850 million: • ~170 million Telco customers (16 countries of operations) • ~50 million Careem customers (10 countries of oper
Slide 9: Brand Finance Global 500 Report 2024
* * Source: Brand Finance Global 500 Report 2024 *Won by e&’s telecom Brand Restricted
Slide 10: 2023 Key Achievements: Data and AI
2023 Key Achievements Data and AI External AI alliances and joint collaborations Global Telco AI MBZUAI 450+ Use Cases Cutting Edge Alliance Partnership Platforms Revenue Cost Generation Optimization Consortium between 4 Objective to incubate Telcos to accelerate AI and tech start ups, GTM AI create
Slide 11: 2023 Key Achievements: Sustainability
2023 Key Achievements Sustainability ESG Constituent company in the Ratings “A” rated FTSE4Good Index Series B score 2023 Our Commitment Group Net zero scopes 1 and 2, by 2040 (2022 Baseline)Targets validated by SBTI Actions in 2023 Collaborations Signed the UN Women Explored utilizing the power of
Slide 12: We are e&, we are Etisalat & more
Telecom operator & Technology Group UAE & Global Stable, industrial core & Agile, fast growth Financial return & Sustainable growth Company and employees & Community and society We are e&, we are Etisalat & more 12 Restricted
Slide 13: Final Thoughts
Final Thoughts At e&, we are committed to our Tech strategy move, and we believe that we are on the right path 2023 was another successful year for e&, despite the continuation of the economic challenges in some of our operations We expanded our footprint to 32 countries, and our PPF acquisition wil
Slide 14: Financial Performance
Financial Performance Karim Bennis Group Chief Financial Officer UAE
Slide 15: Strong underlying performance
Strong underlying performance Record revenue & Met 2023 Sustained strong net profit Guidance cashflow generation
Slide 16: Operating Environment
Operating Environment Witnessing a series of tumultuous macro-economic backdrops in the past 3 years… Profound currency impact on OpCo ..predominantly leading to robust inflationary Key Macro Implications to e& markets with negative repercussions on pressures across the board, accommodated by the Gr
Slide 17: FY 2023 Guidance
FY 2023 Guidance … yet we delivered against our guidance Key Metrics FY 2023 Guidance FY 2023 Actual Status Revenue Growth in High single digit Constant Currency (%) growth +8.3% EBITDA Margin (%) ~49% ~49% This Year…. > EPS (AED) ~1.15 1.18 CAPEX/Revenue (%) ~15% 14% 17 Restricted
Slide 18: Record financial performance
e& reported record financial performance…. ... maintaining resilient cash generation & a solid balance sheet AED 53.8 billion AED 18.8 billion Revenue Operating Free Cashflow 8.3% y-o-y in constant currency 3.7% y-o-y in reported currency AED 26.1 billion 35.0% EBITDA 3.7% y-o-y in constant currency
Slide 19: Group Revenue
Group Revenue Strong revenue growth across all key markets in constant currency Revenue (AED mn) & YoY Growth (%) Sources of Revenue Variance (AED mn) 56,786 53,342 53,752 52,434 In constant currency variance would amount to 3% -2% 3% 8% AED 2,001 mn FY2021 FY2022 FY2023 FY2023 CC Revenue Growth by
Slide 20: Group EBITDA
Group EBITDA Sustained EBITDA growth in constant currency, despite inflationary pressure EBITDA (AED mn) & Margin (%) Sources of EBITDA Variance (AED mn) 27,181 26,721 26,202 26,117 In constant currency variance would amount to AED 497 mn 50% 50% 49% 49% FY2021 FY2022 FY2023 FY2023 CC EBITDA Growth
Slide 21: Group CAPEX
Group CAPEX Investing in network capabilities with world-class network speed in home market CAPEX (AED mn) & Intensity Ratio (%) Sources of CAPEX Variance (AED mn) 8,362 8,037 7,287 16% 15% 14% FY2021 FY2022 FY2023 CAPEX Breakdown (FY 2023) FY 2023 Intensity Ratio by Key Operations (%) 31.5% 14.0% 3
Slide 22: Group Financial Position
Group Financial Position Robust balance sheet and commitment to high investment grade credit ratings Cash & Cash Equivalents (AED mn) Total Debt (AED mn) 32,839 47,954 49,041 28,989 28,575 25,732 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 Net Debt/(Cash) (AED mn) & Net Debt/EBITDA (x) Investment Grad
Slide 23: Group Debt Profile
Group Debt Profile Relaxed repayment schedule with robust liquidity Borrowings by Operations (AED mn) Borrowings by Currency (%) 38,964 5% 5% AED 8% Euro USD 11% 52% Others MAD 5,868 18% PKR 3,097 1,112 Egypt Pakistan MT Group Group Debt by Source (AED mn) Repayment Schedule (AED mn) 37,460 25,341 1
Slide 24: Group Dividend Profile
Group Dividend Profile Balanced shareholder remuneration with consistent history of dividend payment Dividend Per Share (AED) Cash Dividend (AED mn) Interim Final 0.8 0.8 0.8 6,954 6,954 6,954 3,477 3,477 3,477 3,477 3,477 3,477 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 Dividend Pay-out Ratio (%) Di
Slide 25: Enhancing shareholder return from FY2024
We are enhancing shareholder return by increasing our dividend payout starting Fiscal Year 2024 onward
Slide 26: Dividend Policy
Dividend Policy Improving shareholder return by proposing a new dividend policy 1 2 Introducing dividend floor of 0.8 AED per Recommending progressive dividend of 3 fils share annually annually starting from fiscal year 2024 0.89 0.86 0.83 0.80 FY2023 FY2024 FY2025 FY2026 3 4 Tenor of Policy is 3 ye
Slide 27: New Royalty Scheme Overview
New Royalty Scheme Overview A more simplified Federal Royalty scheme and new corporate tax with positive financial impact Previous Royalty Scheme New Royalty Scheme + Corporate Key Metrics (2021 -2023) Tax (2024 – 2026) Royalty on UAE Regulated Revenue 15% Nil Royalty on Regulated UAE Net Profit 30%
Slide 28: Capital Allocation
Capital Allocation Capital allocation takes into consideration shareholders return and growth of the business 1 We established a new capital allocation framework that is taking into consideration 4 main pillars: A B C D Execution Macro-economic Financial Strategic Fit Risk Risk Return 2 Each dimensi
Slide 29: Closing Remarks
Closing Remarks The Group is well positioned to capture future growth and create value Delivered record performance in 2023 despite unprecedent macro-economic headwinds Accelerate growth in digital verticals supported by robust balance sheet Profitable growth in telecom verticals led by strong opera
Slide 30: e& Group Strategy
e& Group Strategy Harrison Lung Group Chief Strategy Officer, e& UAE
Slide 31: Global and regional turbulence abound
Global and regional turbulence abound GCC boom Interest rate hikes Regional currency devaluation Wars and political instabilities 31
Slide 32: Globally, the telco sector has underperformed
Globally, the telco sector has underperformed MSCI Total Shareholder Returns1 (TSR) (%, USD-based) Comments 450 Information • The telco sector as a whole has declined +317% Technology by 11% TSR growth in the last 9 years 400 • This compares to 76% for the overall MSCI Index, including telcos 350 •
Slide 33: Divergence in strategy has never been more profound
Divergence in strategy has never been more profound 10 years ago 3-5 years ago Today Lower complexity New verticals Entirely new business models GPRS/ EDGE Fintech expansion Agriculture What is the optimal Many telcos entering into Fintech Telus farming-specific data mgmt. protocol to take the lead
Slide 34: Our 4D's Strategy
In e&, we have our 4D’s Strategy Our Vision To be a leading global TechCo Group Double Down Diversify Digitalize & Transform Drive on Core Portfolio Operations Sustainability • Evolve core business in • Expand geographically • Deepen digitization & • Best in class ESG UAE operation automation powere
Slide 35: Execution of our journey through our verticals
The execution of our journey already started through our verticals UAE Continue Expand Create a leading Accelerate growth Acquiring, growing leadership position internationally to consumer in cloud, cyber and and supporting the in core and achieve scale ecosystem player, IoT and expand visionary tec
Slide 36: Strong performance across our 4D's pillars
… and start delivering strong performance across our 4D’s Strategic pillars Double Down Diversify Digitize & Transform Drive on Core Portfolio Operations Sustainability Evolve core business in Expand Internationally Deepen digitization and Best in class ESG UAE operation. automation powered by perfo
Slide 37: e& Capital investment thesis and portfolio companies
Also, e& Capital closed 9 new deals and deployed ~85 million USD in 2023 Investment Thesis 2023 - Key portfolio companies’ ▪Potential disruptions to our core markets that we need to ➢The largest global travel eSIM marketplace offering eSIM packages in more than 200 countries understand (access to in
Slide 38: e& 2030 Strategy Outcome
e& 2030 Strategy Outcome Growth Operations Coverage 3 Continents Accelerated Growth Focusing in stable FX Revenue Non UAE Revenue Techco Revenue ESG Commitment 60% 40% Net Zero Emissions Diversify portfolio Diversify portfolio Scope 1 & 2 – UAE operations (1) 1) Net zero emission at a group level fo
Slide 39: Restricted
etisalat and
Slide 40: e& Sustainability
e& Sustainability Andrew Dunnett Senior Vice President, e& Sustainability UAE
Slide 41: Sustainability / ESG e& Context
Sustainability / ESG e& Context Alignment with UAE Sustainability ambitions Company Vision: To be a leading global technology Group Delivering higher ESG ratings for investor community Company Strategy: e& Strategy fourth Pillar…… Compliance with growing regulatory requirements e& will achieve best
Slide 42: 2023: e& Group ESG Sustainability
2023: e& Group ESG Sustainability 2023 - Strengthening foundations and building momentum ENVIRONMENT SOCIAL GOVERNANCE Progress against targets, Diversity, Youth, New Sustainability Committee Group CEO e& Group wide NET ZERO Targets People of Determination Chair New Director Reporting Digital Inclus
Slide 43: 2024: e& Group Prioritised Goals
2024: e& Group Prioritised Goals enhancing programme across opcos & related entities ENVIRONMENT SOCIAL GOVERNANCE 2024 Goals 2024 Goals 2024 Goals Publish e& Group Climate Transition Publish new and refreshed e& Group Build with Finance colleagues best in Plan diversity targets class Non-Financial
Slide 44: 2024-2030 ESG / Sustainability Programme
Longer term View 2024: e& 2023 Sustainability Report Sustainability Strategy: We will be delivering the following new items….. • clearer structure to ease access to relevant information / data In 2024 e& will launch a refreshed • greater data clarity re Group / UAE / Primary opcos / investments Sust
Slide 45: e& UAE
Masood M. Sharif Mohamed UAE Chief Executive Officer, e& UAE UAE
Slide 46: All-round financial performance review
All-round financial performance review Record-breaking Revenue growth and record double digit growth in Net Profit Net Revenue EBITDA & EBITDA Margin (AED Bn) (AED Bn, %) +6.1% +4.4% Record ‘23 revenue growth of 6.1% (AED 1.8Bn), 29.7 31.5 15.8 16.4 1 highest in 8 years - fueled by growth in Core an
Slide 47: Review of Revenue Sources of Growth
Review of Revenue Sources of Growth All revenue lines growing Sources of Revenue Growth (AED Bn, %) +6.1% YoY % 31.46 • Record 2023 revenue growth, 0.84 in absolute and % terms 0.47 o +1.8Bn 0.19 29.67 0.29 o +6.1% growth 2.6% 1.7% 26.7% 15.5% • Core (Mobile & Fixed) grew by 2.2% YoY 2022 Revenue Mo
Slide 48: Consumer Segment
Consumer Segment Healthy growth across all product lines Phenomenal YoY growth across Key Enablers delivering record revenues Net Revenue1 Mobile Revenue Device Revenue (%) (%) (%) +6% +3% +26% 2022 2023 2022 2023 Home Revenue1 Digital Revenue (%) (%) +3% +12% 2022 2023 2022 2023 2022 2023 Powered b
Slide 49: Business Segment Review
Business Segment Review Record growth across all B2B sub-segments Record YoY growth in SMB, Enterprise Private and Government segments Total Business Billing Enterprise Private Sales Government Sales (%) (%) (%) +6% +5% +6% 2022 2023 2022 2023 SMB Sales Total International Sales (%) (%) +8% +3% 2022
Slide 50: Revenue Drivers
Revenue Drivers Revenue growth has been driven by strong subscriber growth and digital services adoption Mobile subscribers (#) Fixed subscribers (#) Digital (#) Total Mobile1 eLife Smiles Users3 12.6 3.7% YoY 5.0% ~30% Million YoY YoY Mobile Prepaid1 Enterprise Internet2 GoChat Downloads 9.6 2.
Slide 51: Overview of Mobile Subscriber Evolution
Overview of Mobile Subscriber Evolution Consistent Mobile subscriber growth across both postpaid and prepaid segments Evolution of Mobile Subscribers Postpaid Mobile Subscribers 2022-2023, Million, QoQ % 2023, Million, YoY % 6.7% 8.1% 11.5% 8.5% 2.79 2.87 2.96 3.00 +0.5% +3.9% +0.4% +0.7% +0.5% +2.1
Slide 52: Fixed Broadband and eLife Subscriber Evolution
Overview of Fixed Broadband and eLife Subscriber Evolution QoQ growth in Fixed Broadband and eLife Subscribers Evolution of Fixed Broadband Subscribers Evolution of Fixed eLife Subscribers 2022-2023, Million, QoQ % 2022-2023, Million, QoQ % +1.2% +1.1% +0.9% +0.7% -2.4% +1.1% +1.4% +1.3% +1.5% +1.3%
Slide 53: Mobile and Fixed Broadband ARPUs
Overview of Mobile and Fixed Broadband ARPUs New propositions are providing greater value to customers, reversing downward ARPU trend in 2022 Evolution of Mobile ARPU Evolution of Fixed Broadband ARPU 2022-2023, AED/Month, % 2022-2023, AED/Month, % -3.9% -0.8% +5.0% +2.8% 84 82 487 479 483 479 482 4
Slide 54: Consumer Segment Review: Smiles super app
Consumer Segment Review Strong digital growth led by Smiles super App Extraordinary growth momentum across all verticals Overall Smiles Super-App Food Delivery ~100% growth in Transaction value Home Services ~30% growth 200% increase ~50% growth in Gross Merchandise in Monthly Active Users on the or
Slide 55: Network Performance
Network Performance We continue to bring global leading networks to our customers #1 UAE Globally in Mobile Speeds1 303 Mbps e& UAE (313 Mbps) | 1.1x vs. du Global #1 Dubai City Rank #2 Abu Dhabi #7 UAE Globally in Fixed Speeds1 248 Mbps e& UAE (269 Mbps) | 2.0x vs. du Global Country Rank #1 UAE FTT
Slide 56: AI Overview
AI Overview AI continues to scale strongly across the organization and transformational Use Cases have been launched 655% Transformational Use Cases (7.5x) AI Scales 468 62 Strongly World’s First Telco Autonomous Store Q1 23 Q4 23 Store that utilizes AI, IoT and computer vision to AI Use Cases Launc
Slide 57: Future Outlook: UAE economy
Future Outlook UAE Economy is set to grow at an accelerated rate in 2024 and beyond to 2026 UAE Real GDP Growth, % • Global Economy is subject to 4.0 4.2 4.3 4.6% 3.5% 3.4 downside risks UAE 2024 Non-oil GDP 2024 Oil GDP Economy Growth Growth • However, GCC is set for 2023 2024 2025 2026 (Vs. 4.5% i
Slide 58: Future Outlook: market drivers
Future Outlook Market drivers will continue to provide growth and transformational opportunities Core Set for Digital Services 5G Set for Continued Growth Scale Monetization Driven by subscriber Growth opportunities B2B use cases will drive growth, premiumized continue in loyalty, growth in e.g. Pri
Slide 59: Closing Messages: 2024 Priorities
Closing Messages 2024 Priorities Sustain profitable growth and value extraction of healthy economic 2024 UAE outlook Sustain outright network leadership position as differentiation Invest in infrastructure modernization to enhance speed to market, efficiencies and customer experience Continue build
Slide 60: e& international
Mikhail Gerchuk Chief Executive Officer, e& international UAE
Slide 61: 2023 strategy execution
2023 strategy execution e& international successfully progresses on its LEAD strategy in 2023 L E A D Lead in organic Expand Accelerate digital Drive scale growth internationally ecosystems synergies 2023 Results +10% revenue growth1 2 transactions >3 million wallets 5 partner markets 1. In constant
Slide 62: 2023 results
2023 results e& international OpCos grow at constant currency and contribute significantly to the Group • 8% revenue CAGR since 2021 Revenue in constant currency EBITDA and margin in constant currency (AED B, 2021-2023 at 2021 FX rates) (AED B, %, 2021-2023 at 2021 FX rates) • Strong EBITDA margin a
Slide 63: Macroeconomic situation
Macroeconomic situation 2023 posed significant challenges in Egypt and Pakistan Currency vs. USD Inflation Interest rate Comments (’22 vs. ’23 avg.) (Dec’23, YoY) (Dec ‘23) • Economy negatively impacted Egypt -58% 34% 19.75% by global and regional conflicts +600 bps YoY • Political and economic unce
Slide 64: 2023 results: revenue and EBITDA growth
2023 results All OpCos grow revenue and EBITDA in local currency Revenue Growth Accelerated or sustained revenue (% YoY in LCY) growth across all markets 2022 YoY 26% 2023 YoY Grew revenue by >5% (except MT 19% 19% Group) 10% 9% 7% 7% Positive EBITDA growth to 6% 3% complement topline 0% MT Group e&
Slide 65: Capex
Capex We continue to invest across our footprint Capital intensity Key investments in 2023 (CAPEX as a % of Revenue, excluding spectrum and licenses) Returned to pre-pandemic CAPEX levels 23.8% 23.0% 18.8% 4G rollout and upgrades in all OpCos Expansion of FTTH network in Pakistan and Morocco Network
Slide 66: Maroc Telecom Group
Maroc Telecom Group Delivered consistent growth in 2023, maintaining high EBITDA margin MT Group Revenue 2023 Highlights (MAD b) +3% 35.8 35.7 36.8 MT Group returns to revenue growth after 2 years of decline Group EBITDA margin improvement given cost control and efficiency measures FY’21 FY’22 FY’23
Slide 67: e& Egypt
e& Egypt Strong growth across core with investments in digital/adjacencies to drive future growth Egypt Revenue 2023 Highlights (EGP b) +19% Growth across all segments – consumer, B2B, digital, wholesale 30.5 25.6 21.5 Successful data monetization, CVM activities and base expansion drive consumer gr
Slide 68: PTCL Group
PTCL Group Strong growth in both fixed and mobile segments PTCL Group Revenue 2023 Highlights (PKR b) +26% Record topline growth driven by both mobile and fixed businesses 190.6 137.6 151.6 Highest 4G subscriber growth in the market, supported by network investments FY’21 FY’22 FY’23 Mobile ARPU gro
Slide 69: Leading in customer experience
Leading in customer experience e& international OpCos gain market share and lead in NPS Afghanistan Morocco Egypt Revenue market share (gain/loss YoY1) #2 #1 #1 #1 n/a NPS (rank) 1. As of Q3 2023 Note: For Revenue Market Share, Egypt based on 3-player market, Pakistan based on 3-player market, Afgha
Slide 70: PPF Telecom acquisition
PPF Telecom acquisition Acquisition marks e& international’s entry into the European market Well-run entities • Track record of revenue and market share growth • Strong management team Slovakia Favourable markets • Stable currencies Hungary • Well-established regulatory framework Complementary with
Slide 71: Telenor Pakistan acquisition
Telenor Pakistan acquisition Market consolidation in Pakistan will enable e& Group to exceed 200 million subscribers Strengthens position as leading integrated operator with scale in both mobile and fixed Sustainable operations with clear path to profitability Sizable synergies expected from in-mark
Slide 72: e& international AI Center of Excellence
AI e& international AI Center of Excellence ~10% contribution to outgoing OpCo revenues1 CVM Revenue 200+ unique use cases CoE Impact Drop in churn Churn volume 250+ AI models Afghanistan Egypt NPS Driven by team of 30 data scientists Leading in NPS Campaigns 80% ML Driven 1. Includes PTCL, Ufone, E
Slide 73: Digital Telco Brand - ONIC
Digital Telco Brand - ONIC e& international launched our first digital brand ONIC in Pakistan with promising initial results 3x Market ARPU 44% Share of acquisitions from port-ins Share of port-ins from 78% competition Source: e& digital JV / Circles X platform data 73 Restricted
Slide 74: Partner Network Programme
Partner Network Programme e& international launches and grows Partner Networks Programme in 2023 Launched Partner Network Programme in 2023 Access to e& scale benefits and cutting-edge expertise while generating revenue for e& Signed 4 operators covering 5 countries in first year Tunisia Azerbaijan
Slide 75: Priorities for 2024 and beyond
Priorities for 2024 and beyond We will focus on value extraction from our new assets as we continue to consolidate our position in existing markets L E A D Lead in organic Expand Accelerate digital Drive scale growth internationally ecosystems synergies • Grow faster than market • Close JV with PPF
Slide 76: e& international overview
e& international overview e& international operates in 15 countries across the Middle East, Africa and Asia Current operations in 15 countries, Partner Networks in 5 countries, 730 million total population e& international operations Partner Networks countries 76 Restricted
Slide 77: e& enterprise
SALVADOR ANGLADA Chief executive officer, e& enterprise UAE
Slide 78: 2023 was a year of phenomenal growth
2023 was a year of phenomenal growth We have achieved key milestones and laid the foundation for our future growth Continue to build scale Launch new propositions Expand capabilities M&A and international expansion Customer Experience Cyber security services 2.7 Bn Revenue KSA Practice platform 32%
Slide 79: Ambition to become regional digital transformation champion
Our ambition is to become a regional digital transformation champion Our strategy will allow us to further accelerate growth and expand through new, fast growth business models 1 2 3 4 Lead Execute Accelerate Drive Ambition LEAD & Operate Regionally the use of emerging a People Centric Strategic in
Slide 80: Infinite Digital Potential. Realised
Our Value Proposition covers technological needs of the customers in every stage of their digital journey We provide customers with unpaired technological expertise and experience to unleash their digital potentials We enable organizations to maximize their digital potential Vision We provide Advanc
Slide 81: Quality of services recognized by analysts
The outstanding quality of our services is being recognized both from customers and major analyst companies Gartner and IDC recognized e& enterprise a prominent position in shaping the industry October 2023 “Visionary” in the Public Cloud IT Transformation Services June 2023 “Major Player” in Worldw
Slide 82: Digital infrastructure proposition
Digital infrastructure proposition provides customers with agility & flexibility in a robust secured infrastructure The offering allows organizations to shift their workload to the cloud, leveraging our support throughout the whole journey Data & AI Focus Areas AED709 Mn Partnership ecosystem Revenu
Slide 83: Help AG cybersecurity portfolio
Help AG has a well recognized portfolio and most comprehensive portfolio in the region With the launch of Unify (Cyber Security Service platform) we are focused on building a services centric business AED855 Mn 360O Cybersecurity Portfolio Cyber Security Service Platform Key Statistics Revenue 2T 10
Slide 84: IoT proposition
With our IoT proposition, we are helping customer build safer, smarter, sustainable solutions We enable organization to thrive leveraging the data collected from the devices installed AED607 Mn Applications Smart City Safe City Smart Industry 4.0 Drones & Digital Aviation Smart Smart Retail Immersiv
Slide 85: engageX CX practice
engageX support organizations end-to-end in the definition, implementation and operation of their CX We have set up an omni-comprehensive CX practice with investments focused on building and enhancing capabilities AED545 Mn Revenue1 14% Continuous YoY Growth A reliable & strategic Promotion Awarenes
Slide 86: Digital Transformation Consultancy
Digital Transformation Consultancy is the natural complementation of our offering to provide e2e services Our extensive experience position us as the single partner capable to support throughout the whole digital journey Consulting approach Value delivered to customers 1 DISCOVER 2 DESIGN 3 DEVELOP
Slide 87: Ministry of Justice digital transformation
The MoJ platform is a case study of our value proposition support the ministry through a digital journey We are transforming MOJ’s digital readiness and the way it delivers services to Government, citizens and businesses Ambition to become a Secured and New digital platform integrated #1 reference D
Slide 88: Sustainability proposition
The sustainability proposition is the testament to our commitment for a more sustainable world Last year, during COP, we launched our sustainability practice to support organizations achieve their net zero targets Fulfill the sustainability objectives of the markets we operate in, by providing all t
Slide 89: KSA is one of our top priorities
KSA is one of our top priorities this year Our ambition is to double KSA’s contribution in our overall revenue in 2024 Capabilities focus 2024 focus areas Cloud & Digital Infrastructure and Data & AI Data & AI Double KSA’s contribution to overall revenue in 2024 Cyber Security Cx and Customer Suppor
Slide 90: Our Fintech proposition continues to grow
Our Fintech proposition continues to grow We have our first fintech prop with Haifin and we expanded our propositions to P2P platform through Beehive’s acquisition Fintech Blockchain based platform for trade 1st and largest Regulated peer-to-peer finance fraud prevention crowdfunding platform in MEN
Slide 91: Strategy to accelerate our growth
Moving forward, we have set up a clear strategy to accelerate our growth We have identified 4 strategic priorities Reinforce and add capabilities Expand margins Build Scale Becoming #OneTeam Build capabilities organically and Building resilient cost models Expand footprint in key markets, Consolidat
Slide 92: Ambition to expand from UAE to the world
Our ambition is to expand from UAE to the world The strategic priorities will enable our ambition and become a Next-Gen Tech company 2023 2028 Ambition Differentiating Factors UAE focused company From UAE to the World, MENA focussed player and become a beacon of 5% revenue outside of UAE 35% revenue
Slide 93: e& life
Khalifa AlShamsi Chief Executive Officer, e& life UAE
Slide 94: e& life: on track to deliver 5-year ambition
e& life We are well on track to deliver on e& life 5-year ambition Capital Market Day 2022 We delivered… Incubated and scaled e&money Launch of Wio Digital Bank Acquired majority stake of Starzplay Acquired majority stake in Careem EA 94 Restricted
Slide 95: Year of Landmark Achievements for e& life
2023 Marks of Year of Landmark Achievements for e&life Delivered major growth, captured market share in multiple verticals and closed Careem transaction Leading Fintech app in MENAP #1 Entertainment MENAP leading Everything MENAP hub App UAE #1 Fintech App & 1st Starzplay #2 SVOD in MENA Closed tran
Slide 96: e& money: 2023 Key Achievements
e& money : A Year of Outstanding Achievements 2023 Key Achievements 1 e& money became the fastest growing fintech app in UAE 2 Strong traction from International money remittance 3 Offered Physical card and as well as xPays capabilities 4 Launched UAE market’s most rewarding loyalty plan with 1% ins
Slide 97: 10X organic growth in MAU
Delivered 10X organic growth in MAU and rapid adoption in transaction volume growth ~900K 350K+ Total Registrations, growing 3.6x over last year Cards 1st B2C non-bank principal issuer 6X Increase In International Money Transfers UAE #1 Fintech App Based on total MAU from Data.ai 97 Restricted
Slide 98: e& money's Consumer Value Proposition
e& money’s Consumer Value Proposition Is About To Be Achieved Within The First Year Anniversary Of Relaunch With Significant Customer Traction Strategic Pillars International and e& money Local Transfers Cards 1. Deliver the best customer experience Bill Loyalty Payments 2. Become Top digital remitt
Slide 99: e& Life 2028 Strategy
e& Life 2028 Strategy Center of Excellence to build, invest and scale unique Consumer Digital businesses 2028 Vision To be the home of several consumer digital unicorns in MENAP, across multiple verticals 2028 Goals Achieve combined Revenue growth rate of >6x, driven by Home to 4 Consumer Digital un
Slide 100: e& Capital Markets Day
e& Capital Markets Day 21st February 2024 100 Restricted
Slide 101: Careem: prominent consumer internet brand in Greater MENA
Careem is one of the most prominent consumer internet brands in Greater MENA 74 50m 1b+ 16 Cities Customers Transactions Services Note : figures as of Dec’23 101 Restricted
Slide 102: Careem tech team and track record
Proven native-tech track record of building and scaling digital services in the region 2022 2012 Careem Pay Rides launch in UAE 2021 Careem Plus 2013-19 Rides expanded from Morocco to Pakistan 2020 Careem Grocery 2019 2019 Careem Food Acquisition by Uber Enabled by one of the largest and most sophis
Slide 103: Careem Technologies spin-off
Careem Technologies’ spin-off includes all services and IP other than Rides Careem Rides (CR) Careem Technologies (CT) Remains exclusively available All services and IP other than on the Everything App Rides Remains 100% owned by Uber Access to Rides’ user-base No change to customer Majority owned b
Slide 104: Robust top-line growth in 2023
Robust top-line growth in 2023 along with margin improvement 50% 61% +7pp GTV Gross Revenue EBITDA YoY growth YoY growth improvement vs. ‘22 104 Restricted
Slide 105: Careem Plus membership
Careem Plus is the 3x YoY growth in members category-leading membership program 3x Higher TxPU1 +28pp Higher monthly retention 1 1 vs non-members 105 105 Restricted
Slide 106: Strong EA platform drives cross-selling
Strong EA platform drives strong discovery and cross-selling of services Personalised Cross-sell AI-enabled accelerants to contextually experiences to minimize effort to between relevant simplify discovery transact services 106 Restricted
Slide 107: Near-term priorities
1 Grow the EA in existing cities 2 Expand the EA to new cities Near-term priorities 3 Invest in AI-enabled product experiences 4 Monetize the platform through Ads & B2B 107 107 Restricted
Slide 108: Vision: go-to platform for everyday services
Reflects our strategic imperative to create deep engagement on our platform Vision is to build the go-to platform for dependable everyday services in the region Reflects our commitment to Reflects our desire to truly simplify reliability and building trust with the lives of customers our customers 1
Slide 109: TAM large enough to build valuable companies
$30b+ Others TAM is large enough to build one of the $500 bn+ $140b+ most valuable $270b+ Grocery 2023 MENA TAM Payments companies from the region $70b+ Food source : Euromonitor, World Bank, Statista, Bernstein Research, Kearney analysis, Redseer 109 Restricted
Slide 110: Supported by two strong partners
➔ Large and overlapping geographical footprint Excited to be ➔ Cross-selling to e&’s large customer base supported by two ➔ Synergies with group companies (e.g. e& Money) strong partners ➔ Exclusive partner on Rides ➔ Global mobility & deliveries platform ➔ Technology knowledge sharing 110 110 Restr
Slide 111: Maaz Sheikh, CEO STARZPLAY
1 1 1 MAAZ SHEIKH NAME OF SPEAKER, CHIEF EXECUTIVE OFFICER, STARZPLAY TITLE, POSITION e& Capital Markets Day 21st February 2024 111
Slide 112: STARZPLAY at a glance
STARZPLAY AT A GLANCE MENAP’s HOME-GROWN OTT DIGITAL CHAMPION WITH PRESENCE IN MORE THAN 20 MARKETS • STARZPLAY is the UAE’s home-grown OTT operator present in more than 20 countries across MENAP • Success has been underpinned by the support of US / international and local top-notch investors • A Co
Slide 113: STARZPLAY Today
STARZPLAY TODAY THE SECOND LARGEST SVOD PLAYER UNDERPINNED BY SECULAR MACRO / INDUSTRY TAILWINDS 1 3.2mn 512mn 2nd 19% Total Subs Population 2027 (5) Market leader(1) Market Share(2) 4% 13% 15% OTT Penetration CAGR SVOD market CAGR AVOD market Rates in MENA (3) 22-27 (4) 22-27 (4) 2 Global 20x 3x Tr
Slide 114: STARZPLAY Future: strong growth ahead
STARZPLAY FUTURE STRONG GROWTH AHEAD Subscribers (Thousands) +50% 1. Since the acquisition of the majority of STARZPLAY by a Consortium led by e& Group, 3,185 Subscribers 1,962 2,105 the company has significantly accelerated its growth 2021 2022 2023 2. STARZPLAY was able to leverage e& Group assets
Slide 115: Drivers for growth: content and AVOD expansion
STARZPLAY DRIVERS FOR GROWTH CONTENT AND AVOD EXPANSION WITH SYNERGISTIC COLLABORATIONS CONTENT LEVERAGE STARZON EXPANSION TO GROW BASE 1. Launched in Nov-23 under a single-app with STARZPLAY 1. STARZPLAY as leading premium Hollywood content 2. Free viewing experience with 50+ channels and +10k hour
Slide 116: Drivers for growth: e& collaboration
STARZPLAY DRIVERS FOR GROWTH e& COLLABORATION - UNLOCKING SYNERGIES TO ACHIEVE PROFITABLE GROWTH AVOD/FAST DISTRIBUTION TECHNOLOGY JOINT CONTENT COLLABORATION INITIATIVES OPTIMIZATION ACQUISITION AND CONVERSIONS Launching “STARZON”, evision’s Developing joint marketing Rolling out STARZPLAY OTT Sing
Slide 117: Jayesh Patel, CEO WIO
Jayesh Patel Chief Executive Officer, WIO e& Capital Markets Day 21st February 2024
Slide 118: Title Body text
Title Body text 118 118 Restricted
Slide 119: Wio is a digital bank with a full banking license
Wio is a digital bank with a full banking license and a strong shareholder base • The bank is regulated by the CBUAE and Wio Securities is regulated by the SCA. • Wio is the all-in-one digital financial platform, live in the UAE and created to reboot banking for everyone. • We are rebooting banking
Slide 120: UAE market size and appetite for digital
The UAE has significant market size with an appetite for digital, creating a robust market opportunity for future growth 1 Market Overview & Positioning Revenue pool in 2023 Willingness to bank digitally AED 60B AED 51B 72% 75% Private and retail SMEs ready to bank Retail customers ready Business ba
Slide 121: We launched Wio Business in Sep 2022
We launched Wio Business in Sep 2022 The Operating System for businesses to enable them in a digital economy Geared around giving time back to business owners Addressing the banking and beyond banking needs of SMEs Everything customers need, under one roof and digitally Digital Savings Multi-currenc
Slide 122: New feature enhancements for Wio Business
We are working on several new feature enhancements for our Wio Business propositio COMING SOON SME Credit Introducing innovative credit services designed to meet financial needs of business customers Accounts enhancements Unveiling additional operational accounts tailored to cater different business
Slide 123: We launched Wio Personal 7 months ago
We launched Wio Personal 7 months ago Wio Personal is the best place to see, manage and grow your money Re-defining banking by providing a well-rounded digital experience Enabling customers to do more of what they love digitally and seamlessly Offering savvy features that put customers one step ahea
Slide 124: Enhancing Wio Personal product features
In addition, we are geared up towards enhancing our product features for our Wio Personal customers COMING SOON Credit enhancements Expanding our Wio Personal offering through innovative products catered to different needs Accounts and payments enhancements Introducing new account types and payment
Slide 125: Wio had a strong year 2023
Wio had a strong year 2023 and great start into 2024 +100K 4.8 Personal Wio Business and Wio Personal Customers 4.7 Business App Rating AED +10B Deposits 67 7 Corporate Awards NPS and recognitions 125 Restricted
Slide 126: Wio and e& strategic partnership
Wio and e& - a strong and strategic partnership BRANDING AND TECHNOLOGY AND CUSTOMER POSITIONING PRODUCT ACQUISITION Collaborative support Joint digital and technology Joint acquisition approaches through events and experiences supporting and and partnerships to foster to conferences leveraging plat
Slide 127: Wio's drivers for growth
Going forward, Wio’s drivers for growth towards achieving our vision To be positioned as the #1 bank for SMEs Easy. Enabling. Empowering To achieve the highest customer satisfaction for Retail Banking embedded into client’s journeys To become one of the top 4 banks for payroll To establish the prefe
Slide 128: Way Forward
& life way FORWARD use eXinternational e&life e&enterprise e&capital etisalat and
Slide 129: Conclusion & Way forward
Conclusion & Way forward Gearing towards a more unified and synergistic e& digital ecosystem Digital Entertainment TV Leverage on e& family of brands to provider richer and more personalized content Fintech Leveraging opco’s app scale and networks with central group tech & talents Digital Lifestyle
Slide 130: 2028 Ambitions
2028 Ambitions We aim to generate >6x revenue growth driven by organic and inorganic moves across multiple consumer digital verticals and geographies Gearing towards a fast and profitable Growth by Business Mix 2028 2028 Revenue Distribution Entertainment Fintech SuperApp New Verticals 2028 Revenue
Slide 131: Financial Guidance
Financial Guidance Karim Bennis Group Chief Financial Officer UAE
Slide 132: The Way Forward 2024 & Beyond
The Way Forward 2024 & Beyond e& 1 Year consolidated guidance & 5 year ambition by vertical (1)(2)(3) (3) (3) (2) Telecom 1 Year Guidance e& enterprise 1 Year Guidance e& life 1 Year Guidance Group 1 Year Guidance Mid Single Digit Revenue Growth Constant Currency (%) Strong Double Digit ∼2x Revenue
Slide 133: Closing Remarks
Closing Remarks Hatem Dowidar Group Chief Executive Officer, e& UAE
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e& (Emirates Telecommunications Group Company PJSC) — Investor Day (February 2024) on 6ix