Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — Etisalat Group — Q3 2021 Earnings Presentation
25 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Nov 1, 2021
Slide 1: Etisalat Group Q3 2021 Results Presentation
ETISALAT GROUP Q3 2021 RESULTS PRESENTATION 1st NOVEMBER 2021 - ABU DHABI, UAE
Slide 2: Disclaimer
DISCLAIMER Emirates Telecommunications Group Company PJSC and its subsidiaries (“Etisalat Group” or the “Company”) 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 accur
Slide 3: Business Overview
BUSINESS OVERVIEW HATEM DOWIDAR Chief Executive Officer Etisalat Group
Slide 4: Financial Highlights Q3 2021
FINANCIAL REVENUE 13.3 bn HIGHLIGHTS Q3 2021 • Revenue increase Y/Y is +2.0% yoy / +0.6% qoq attributed to international operations EBITDA EBITDA% • EBITDA decrease Y/Y is attributed to one-off recognised 6.7 bn 50.7 % -2.2pp yoy / +0.5pp qoq in previous year. Normalised -2.4% yoy / +1.5% qoq EBITDA
Slide 5: Etisalat Group Q3 Financial Highlights
ETISALAT GROUP Q3 FINANCIAL HIGHLIGHTS Expanding Etisalat Group Subscriber growth in high Maroc Telecom Group customer base by 4% value segments, i.e. performance is influenced Continued to deliver postpaid and eLife by increased regulatory revenue growth despite Revenue trend is and competitive pre
Slide 6: Financial Overview
FINANCIAL OVERVIEW KARIM BENNIS Chief Financial Officer Etisalat Group
Slide 7: Etisalat Group Financial Highlights Q3 2021
ETISALAT GROUP FINANCIAL HIGHLIGHTS Pakistan 6% Others Q3 2021 Egypt 2% 10% Revenue Growth YoY +2.0% UAE 0% 13.3 Bn MT Group (LC -2%) +2% MT Egypt (LC +20%) +21% 26% UAE Pakistan (LC +5%) +7% 56% Pakistan EBITDA Growth YoY -2.4%* 3% Others 2% UAE -4% Egypt 9% MT Group * (LC -10%) -6% Egypt (LC +22%)
Slide 8: Int'l Operations Financial Highlights
FINANCIAL INT’L OPERATIONS HIGHLIGHTS FINANCIAL HIGHLIGHTS MT Group Q3 2021 AED m Growth Y/Y in AED Growth Y/Y in MAD Q3 2021 Revenue 3,522 +2% -2% EBITDA (1) 1,918 -6% -10% 61% EBITDA Margin 54% -5pp -5pp 52% 52% 48% 48% 5,653 5,737 47% Egypt Q3 2021 Growth Y/Y Growth Y/Y 5,378 AED m in AED in EGP
Slide 9: Group Revenue
GROUP REVENUE REVENUE Revenue (AED m) & YoY Growth (%) Sources of Revenue Growth – Q3 2021 vs Q3 2020 (AED m) Highlights 73 228 48 13,294 14,000 13,039 13,216 13,294 30% 13,039 In Q3’21 consolidated revenue increased 12,000 25% 16 79 by 2.0% attributed to stabilizing revenue 10,000 20% trend in the
Slide 10: Group EBITDA
GROUP REVENUE EBITDA EBITDA (AED m) & EBITDA Margin (%) Sources of EBITDA Growth – Q3 2021 vs Q3 2020 (AED m) Highlights 6,904 6,904 113 30 6,641 6,741 6,741 In Q3’21 consolidated EBITDA decreased 177 124 6 53% 51% by 2.4% attributed to positive one-off 50% MT Group booked in Q3 2020. On a normalise
Slide 11: Group Capex
GROUP REVENUE CAPEX Capex (AED m) & Capex Intensity Ratio (%) Sources of Capex Growth – Q3 2021 vs Q3 2020 (AED m) Highlights 3,000 40% 1,120 2,728 In Q3’21 consolidated capex increased 2,500 35% 30% 2,728 Y/Y by 77%, resulting in a Capex / 2,000 Revenue ratio of 21%. Excluding 1,619 25% 25 1,545 21
Slide 12: Group Balance Sheet & Cash Flows
GROUP REVENUE BALANCE SHEET & Balance Sheet (AED m) Dec-20 Sep-21 Investment Grade Credit Ratings CASH FLOWS Cash & bank Balances 31,345 24,917 STRONG BALANCE SHEET Total Assets 133,018 125,437 AA-/Stable WITH LOW LEVERAGE Total Debt 5% 26,701 24,548 -3% Net Cash / (Debt) 4,644 369 Highlights Total
Slide 13: Group Debt Profile
GROUP REVENUE DEBT PROFILE Borrowings by Operations (AED m) Borrowings by Currency (%) DIVERSIFIED DEBT PROFILE 14,293 USD 24% Euro 38% 7,279 4% Highlights 5% -3% MAD 18% Optimising borrowing costs and debt 1,736 1,240 Others profile by successful bonds issuance in 20% June 2021 that was 6x oversubs
Slide 14: UAE Operation Q3 2021
UAE OPERATION Q3 2021 Highlights Revenue growth in data, digital services and handsets offset by decline in voice revenue Changes in revenue mix impacted EBITDA margin Slight decrease in net profit Y/Y due to lower EBITDA and higher depreciation and amortization; However, QoQ improvement More discip
Slide 15: UAE Telecom Operation
UAE TELECOM OPERATION DEBT PROFILE Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA Margin (%) • Stability in revenue trend supported by 7,457 7,458 7,441 4,018 3,863 3,842 growth in data, digital and handset 54% 52% 52% 1% 0% • Y/Y margin impacted -3% by higher cost of sales and marketing a
Slide 16: UAE: Revenue Breakdown and Key KPIs
UAE: REVENUE BREAKDOWN AND KEY KPIs DEBT PROFILE Mobile Revenue(1) (AED m) Fixed Revenue(2) (AED m) Other Revenue(3) (AED m) 2,706 2,626 2,705 2,817 2,778 2,779 • VoIP continues to impact mobile and 2% 0% 2,053 fixed voice revenue 1,934 1,957 2% 4% 3% • Strong growth in data -12% -1% -1% 1% and sign
Slide 17: Maroc Telecom Q3 2021
MAROC TELECOM Q3 2021 Highlights Subscriber growth is driven by domestic and international operations Revenue benefited from better summer seasonality and currency appreciation that was offset by continued regulatory pressure on domestic market EBITDA decline Y/Y impacted by positive one-off from la
Slide 18: Maroc Telecom Group
MAROC TELECOM GROUP (1) DEBT PROFILE Subscribers (m) Revenue (AED m) / YoY Growth (%) 73.6 72.8 3,449 3,480 3,522 70.5 • Revenue continues to be impacted by ongoing regulatory and 8% competitive pressure 2% 1% on domestic operation Q3'20 Q2'21 Q3'21 Q3'20 Q2'21 Q3'21 EBITDA (AED m) / EBITDA Margin (
Slide 19: Egypt Q3 2021
EGYPT Q3 2021 Highlights Improvement in subscriber base Consistent execution driving revenue growth Higher EBITDA mainly attributed to higher revenue Increase in capital spending focused on network coverage and capacity 19
Slide 20: Egypt
EGYPT DEBT PROFILE Subscribers (m) Revenue (AED m) / YoY Growth (%) 1,303 1,226 1,075 26.2 26.7 27.0 • Solid subscribers gains due to higher demand 27% for connectivity 21% 18% • Mobile data drives revenue growth Q3'20 Q2'21 Q3'21 Q3'20 Q2'21 Q3'21 EBITDA (AED m) / EBITDA Margin (%) Capex (AED m) &
Slide 21: Pakistan Q3 2021
PAKISTAN Q3 2021 Highlights Y/Y growth in mobile and fixed broadband subscribers Revenue growth supported by growth in mobile, fixed and Ubank segments EBITDA impacted by higher cost of sales to support revenue growth EBITDA margin impacted by changes in revenue mix Higher capital spending mainly at
Slide 22: Pakistan
PAKISTAN DEBT PROFILE Subscribers (m) Revenue (AED m) / YoY Growth (%) 900 808 70% • Subscriber gains Y/Y 24.8 25.6 25.2 800 722 771 60% in FBB and 4G 700 50% 600 40% • Maintained topline 500 30% growth attributed to all 400 16% 20% 300 7% 10% segments (1%) 200 0% • Strong growth in data 100 -10% co
Slide 23: Financial Highlights 9M 2021
ETISALAT GROUP FINANCIAL HIGHLIGHTS 9M 2021 IMPROVED REVENUE & PROFITABILITY Revenue EBITDA Net Profit CAPEX 39.7 20.1 7.2 5.4 AED Billion AED Billion AED Billion AED Billion YOY Growth YOY Growth (1) YOY Growth YOY Growth (2) +2.8% 0.0% +2.9% +30.7% Free Cash Flow EBITDA Margin Net Profit Margin CA
Slide 24: 2021 Actual Against Guidance: Improving Full Year Guidance
2021 ACTUAL AGAINST GUIDANCE: IMPROVING FULL YEAR GUIDANCE Guidance Actual Revised Financial FY 2021 9M 2021 Guidance KPI FY 2021 Revenue Growth % +2.0% to Stable +2.8% +3.0% EBITDA Margin% 49%-50% 50.7% ~ 50.0% EPS (AED) Stable 0.83 ~ 1.05 CAPEX / Revenue % 24
Slide 25: Etisalat Group Investor Relations
ETISALAT GROUP INVESTOR RELATIONS Email: ir@etisalat.ae Website: www.etisalat.com