Kuwait Telecommunications Co. · KSE:STC

Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — 9M 2021 Earnings Presentation

20 slides from Kuwait Telecommunications's earnings presentation, 2021

  1. Slide 1: Investors Presentation

    Investors Presentation Kuwait Telecomunications Company K.S.C.P Kuwait Telecommunications Company K.S.C.P. 9M- 2021

  2. Slide 2: Table of content

    Table of content stc’s History in Brief 3 Key Milestones 4 Vision, Mission & Values 5 Shareholder’s Structure 6 Population & Penetration 7 Competitive Strengths 8 Our 2021 Strategy 9 Market Share 10 Financial Results 11 Cash Dividends 15 Stock Performance 16 Appendix 18 Appendix 19 Page | 2

  3. Slide 3: stc's History in Brief

    stc’s History in Brief Kuwait Telecommunications Company (stc) is a Kuwaiti shareholding organization fused as per Amiri Decree No. 187 on 22 July, 2008, to work and deal with the third GSM versatile system in Kuwait according to Law No. 2 of 2007. Appropriately, stc propelled its tasks in December

  4. Slide 4: Key Milestones

    Key Milestones  Best Network  stc Group was ranked Development 1st in the MENA region, Award at 5G MENA by Forbe’s "Global 2000" list  stc launches Elite  stc Reap Three  Partnership with Real Accolades at ME  Ranked 1st as a Leader  Launches Program for loyal,  Best Telecom Co. Madrid Call

  5. Slide 5: Vision, Mission & Values

    Vision, Mission & Values Values Vision A world-class digital leader providing innovative services and platforms to our customers and enable the digital transformation in Kuwait. stc is keen to present its customers with numerous telecommunications opportunities with the goal of boosting existing rel

  6. Slide 6: Shareholders' Structure

    Shareholders' Structure 52% 24% 24% Kuwaiti Governmental Saudi Telecom Public Shareholders Entities  stc KSA, the leading regional  The Kuwaiti government holds  Public Share holders consists telecom operator, won the bid for 24% of stc’ capital through of companies, portfolios, third mobile lice

  7. Slide 7: Population & Penetration

    Population & Penetration Current Population Current Penetration 4.7 Million 152% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 194% 5.0 182% 176% 172% 171% 200% 155% 160% 152% 152% 4.0 133% 150% 3.0 93% 4.6 4.8 4.7 4.7 100% 2.0 4.2 4.4 4.5 3.8 3.9 4.1 3.4 3.5 3.6 3.7 50% 1.0

  8. Slide 8: Competitive Strengths

    Competitive Strengths Relation-ship stc (the largest telecom company in the region) will continue to be a major shareholder and will continue to with benefit from being a member of stc group. Through this relationship, stc has access to technical support, industry best practice for provision of tele

  9. Slide 9: Our 2021 Strategy "AHEAD"

    Our 2021 Strategy “AHEAD” …..aims to position stc at the center of Kuwait’s digital ambitions and is built upon 5 strategic pillars I II III IV V Anticipate Harness Excel Accelerate Devote Consumer Enterprise Digital Enabling performance Needs Opportunities Experience Capabilities Culture  Value gr

  10. Slide 10: Market Share

    Market Share Total Subscriber Base in Kuwait (Mn) Telecom Sector Revenues in Kuwait (KWD Mn) Total Subscribers in kuwait (Mn) stc Subcribers (Mn) Total Telecom Revenue in Kuwait (KWD Mn) stc's Revenue (KWD Mn) 7.6 7.7 7.7 7.4 841 860 859 7.2 7.1 7.0 788 799 814 6.41 6.5 717 753 5.9 684 690 627 604 5

  11. Slide 11: Financial Results: Nine Months Period Ended September 2021

    Financial Results Nine Months Period Ended 30 September 2021  stc’s revenue increased by 2.3% during the Key Figures & Ratios 9M-2020 9M-2021 Change nine months period ended 30 September Subscribers (Mn) 1.8 1.9 2.9% 2021 to reach KD 213.8mn compared to KD Revenue (KD Mn) 209.0 213.8 2.3% 209.0 mn

  12. Slide 12: Financial Results - Highlights Annual and YTD-21

    Financial Results - Highlights Annual and YTD-21 Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 288 288 293.7 283.2 279 47% 50% 140 209.0 213.8 120 40% 29% 28% 100 25% 27% 26% 27% 30% 80 131.9 60 20% 77.8 83.8 73.4 57.9 40 71.1 10% 57.0 20 0% 0 2016 2017 2018 2019 202

  13. Slide 13: Financial Results - Highlights Quarterly

    Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) 74.2 74.4 EBITDA (KD Million) EBITDA Margin (%) 72.2 72.6 35% 29% 30% 25.0 69.8 69.6 27% 28% 30% 25% 24% 20.0 25% 21% 20% 15.0 64.2 15% 22.0 10.0 18.9 18.9 19.6 18.5 17.0 15.5 10% 5.0 5% 0% 0.0 Q1-20 Q2-20 Q3-20 Q4-20

  14. Slide 14: Financial Results - Highlights

    Financial Results - Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) 391 394 Total Debt (KD Million) Debt to Equity Ratio (x) 374 0.50 0.40 50 305 267 273 0.30 40 0.10 0.10 0.05 0.03 0.10 0.00 30 47 -0.10 20 -0.30 20 10 9 10 6 -0.50 0 2016 2017 2018 2019 2020 Sep-21 2016 2017 0

  15. Slide 15: Cash Dividends

    Cash Dividends Cash Dividends Per Share (Fils) Dividends Payout Ratio (%) 93% 60 50 57% 40 40% 30 35% 10 13% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Stock Price vs. Dividends Yield  stc has been distributing a growing Stock Price (KD) Div. Yield (%) dividends since 2016 reaching 60 fils i

  16. Slide 16: Stock Performance

    Stock Performance Closing Price (KD) 0.854 PE (X) 17.93 Paid up Capital (KD Million) 49.9 PB (X) 1.97 Market Cap (KD Million) 426.5 Dividend Yield (%) 7.0% Data as of 30 September 2021 Rebased Index Since stc’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices Page |

  17. Slide 17: Appendix

    Appendix  Balance Sheet (2018 – September 2021)  Income Statement (FY2018 – 9M 2021) Page | 17

  18. Slide 18: Balance Sheet (2018– September 2021)

    Balance Sheet (2018– September 2021) Balance Sheet 2018 2019 2020 September-2021 KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 150.5 193.5 190.4 190.8 Goodwill and Intangible assets - 26.2 25.0 29.3 Total non-current assets 150.5 219.7 215.4 220.2 Inventories 6.9 9.1 9.3 13.3 Prepayments and

  19. Slide 19: Income Statement (FY2018– 9M 2021)

    Income Statement (FY2018– 9M 2021) Income Statement 2018 2019 2020 9M-2020 9M-2021 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 287.9 293.7 283.2 209.0 213.8 Operating expenses (139.3) (148.5) (147.4) (107.2) (115.2) Staff costs (21.7) (24.6) (24.2) (17.6) (18.4) Expected credit losses on trade & other rec

  20. Slide 20: Thank you

    Thank you Investor Relations Department: : Investor.relations@stc.com.kw : +965 5000 1911 : www.stc.com.kw stc Kuwait Kuwait Telecommunication Company (stc) stc_Kuwait @stc_Kuwait

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