Arabian Internet And Communications Services Company · TADAWUL:7202
Arabian Internet And Communications Services — FY2024 Earnings Presentation
30 slides from Arabian Internet And Communications Services's earnings presentation, Feb 24, 2025
Slide 1: FY 2024 Results Presentation
FY 2024 Results Presentation Riyadh, 24 February 2025
Slide 2: Agenda
Agenda FY 2024 Results Presentation 1 solutions by stc at a Glance in 2024 2 2024 Key Milestones 3 Investment Thesis 4 Strategy Update 5 PPP Projects 6 Financial Performance 7 Contact Details
Slide 3: solutions by stc at a Glance in 2024
FY 2024 Results Presentation 1 solutions by stc at a Glance in 2024
Slide 4: solutions by stc at a Glance
solutions by stc at a Glance The leading ICT services provider and enabler of the digital transformation across the Kingdom IT services provider IT Services Years of experience Key highlights #1 in Saudi Arabia 22.7% market share in KSA 25+ in IT sector FY 2024 Revenue growth YoY Net income growth f
Slide 5: Key Milestones
FY 2024 Results Presentation 2 2024 Key Milestones
Slide 6: 2024 Key Milestones
This message/document has been classified as “Public” 2024 Key Milestones A transformative year for solutions that enhanced its capabilities, expanded portfolio and widened the client reach Strategic area LEAP Initiative Highlight Rationale 1st PPP of solutions Expansion into new businesses, getting
Slide 7: Investment Thesis
FY 2024 Results Presentation 3 Investment Thesis
Slide 8: Investment Thesis Update
This message/document has been classified as “Public” Investment Thesis Update solutions offers a winning combination of market leadership, growth potential and superb returns Market Leadership Sizeable and Superior Value Asset-Light Business Diversified Portfolio Creation Model • Undisputable marke
Slide 9: Strategy Update
FY 2024 Results Presentation 4 Strategy Update
Slide 10: LEAP 2.0 targets significant economic value creation in 2024-2026
This message/document has been classified as “Public” LEAP 2.0 targets significant economic value creation in 2024-2026 Our strategy aims at augmenting the core business by emerging tech, innovation and efficiency gains Growth Profitability + Drive growth through expansion, enhancements and innovati
Slide 11: Value-added M&A drive growth, expand offering and bring synergies
This message/document has been classified as “Public” Value-added M&A drive growth, expand offering and bring synergies The recent acquisitions reinforced the group’s market leadership and made a notable financial contribution* Ownership share: 88.2% Ownership share: 100% Ownership share: 40% Strate
Slide 12: Expansion into AI
This message/document has been classified as “Public” Expansion into AI Driving solutions ambition as a Next Gen Services provider and an AI First company. Booming Enablement of Existing capabilities Customer AI market National AI Play and deep client access demand evolving AI market is rapidly KSA
Slide 13: Aiming to become an AI First organization
This message/document has been classified as “Public” Aiming to become an AI First organization solutions enables and orchestrates an AI-powered ecosystem for customers to deliver unparalleled outcomes Provide integrated Build best-in-class Install AI in the Develop the AI ecosystem AI offering capa
Slide 14: PPP Projects
FY 2024 Results Presentation 5 PPP Projects
Slide 15: Leading innovation and urban transformation through strategic PPPs
This message/document has been classified as “Public” Leading innovation and urban transformation through strategic PPPs The PPP model creates recurring revenue streams, enhances financial performance and contributes to sustainability Building the right set-up Testing the Engine Capture the opportun
Slide 16: Financial Performance
FY 2024 Results Presentation 6 Financial Performance
Slide 17: solutions FY 2024 Financial Dashboard
solutions FY 2024 Financial Dashboard Steady growth with operating and net margins reaching multi-year records in FY 2024 FY 24 Revenue FY 24 GP Margin FY 24 Capex FY 24 Capex / Revenue SARmn 12,064 +9% YoY 23.1%-46bps YoY SARmn 255 +128% YoY 2.12%+110bps YoY FY 24 EBITDA FY 24 EBITDA Margin FY 24 N
Slide 18: Revenue Trend and Breakdown by Business Segment
This message/document has been classified as “Public” Revenue Trend and Breakdown by Business Segment Group revenue growth accelerated to +9% YoY in FY 2024 driven by IT Managed and Operational Services Revenue Trend (SARmn) Management Commentary +30% Acceleration of growth in 4Q 2024 was driven b
Slide 19: Revenue Breakdown by Entity
This message/document has been classified as “Public” Revenue Breakdown by Entity The share of Giza and ccc increased to 28% of FY 2024 revenue after 19% a year ago1 Revenue Breakdown by Entity (SARmn) Management Commentary +30% The group’s focus on efficient projects delivery resulted in some pro
Slide 20: Revenue Breakdown by Customer Type
This message/document has been classified as “Public” Revenue Breakdown by Customer Type The revenue share of stc and the Government remained flat YoY at 79% in FY 2024 Revenue Breakdown by Customer Type (SARmn) Management Commentary +30% Revenue from stc grew 12% YoY in FY 2024 driven by enhanced
Slide 21: Profitability - Gross Profit Performance
This message/document has been classified as “Public” Profitability - Gross Profit Performance Gross profit margin slightly decreased to 23.1% in FY 2024 from 23.5% in FY 2023 Management Commentary Gross Profit Trend (SARmn) Gross margin fell 46 bps YoY to 23.1% in FY 2024 due to +59% changes in m
Slide 22: Profitability - Gross Profit Drivers
This message/document has been classified as “Public” Profitability - Gross Profit Drivers FY 2024 Gross Profit performance reflects changes in the market dynamics, projects mix and regulation 1 Gross Profit Breakdown by Entity (SARmn) Management Commentary solutions standalone gross margin dynami
Slide 23: Profitability - EBITDA and Net Profit
This message/document has been classified as “Public” Profitability - EBITDA and Net Profit FY 2024 EBTIDA and net profit margins hit multi-year record levels EBITDA & Net Profit Trend (SARmn) Management Commentary 600 553 20.0 486 EBITDA grew 17% YoY in FY 2024 driven by the 500 440 469 453 463 1
Slide 24: Balance Sheet - Working Capital
This message/document has been classified as “Public” Balance Sheet - Working Capital Efficient working capital management resulted in reduced receivables and increased payables Accounts Receivable (SARbn) Accounts Payable (SARbn) Management Commentary 5 3.9 Receivable days declined to 123 days in
Slide 25: Cash Flow Generation
This message/document has been classified as “Public” Cash Flow Generation Working capital improvements supported cash flow generation in 2H 2024 and ensured FCF growth YoY in FY 2024 Capital Expenditures (SARmn)* Management Commentary 255 OCF fell by 12% YoY to SAR 1.51bn in FY 2024 affected by t
Slide 26: Returns and Dividends
This message/document has been classified as “Public” Returns and Dividends Sustainable returns and progressively growing dividends Return Ratios (%) Management Commentary 50% Capex-light business model generates high 44.1% returns and allows for generous dividends. 45% 43.4% 39.7% 41.2% The com
Slide 27: Outlook and Guidance
This message/document has been classified as “Public” Outlook and Guidance solutions announces its 2025 guidance 2025 Outlook FY 2024 FY 2025 Results Guidance Oil Price $75-$80 / bbl Revenue Growth 9.3% 8% - 10% KSA GDP Growth 4.6% KSA Fiscal Budget SAR 101 bn deficit EBITDA Margin 16.1% 14% - 16% 2
Slide 28: Contact Details
FY 2024 Results Presentation 7 Contact Details
Slide 29: IR Contact Details
IR Contact Details Contact solutions by stc investor relations team Abdullah Al-Dayel GM of Corporate Finance & Investor Relations +966 11 525 2985 aaldayel@solutions.com.sa Wafi Alfawzan Investor Relations Director +966 11 525 1174 walfawzan@solutions.com.sa Ghadah Alsuhaim Investor Relations Manag
Slide 30: Shukran!
Shukran! | Stu @ solutions by sie