Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — Etisalat Group — Investor Day (February 2019)
165 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's investor day presentation, Feb 21, 2019
Slide 1: Etisalat Group Capital Markets Day 2019
Etisalat Group Capital Markets Day 2019 February 21st, 2019 Park Hayatt Saadiyat, Abu Dhabi
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: Agenda
AGENDA Business Overview Saleh Al-Abdooli Chief Executive Officer – Etisalat Group Etisalat Group Financial Results Serkan Okandan Chief Financial Officer – Etisalat Group Chief Executive Officer – Etisalat Etisalat Group International Hatem Dowidar International Chief Corporate Strategy & Governanc
Slide 4: Etisalat Group Business Overview
Etisalat Group Business Overview Saleh Al-Abdooli Group Chief Executive Officer
Slide 5: Our Group at a glance
Our Group at a glance… Factsheet 141 25.9 8.6 AA- Million AED Billion AED Billion Aa3 Subscribers 52.4 EBITDA @ 49% margin 18.0 Net Profit @ 16% margin 80 Credit Rating* AED Billion AED Billion Fils Revenue OFCF Div. Per Share @ 34% margin @ 81% payout ratio UAE Pakistan Burkina Faso Egypt Cote d’Iv
Slide 6: Brand direction: Together Matters
We lend power of technology to connect & enrich people’s lives, which is embodied in our brand direction: Together Matters! Brand Direction Source: Etisalat Group.
Slide 7: Group brand most valuable in MENA
Etisalat Group Portfolio Brand is the most valuable in MENA and the first & only brand to cross the $10Bn mark Portfolio Brand Etisalat Brand Portfolio Value* is more than the combined brand values of du, Zain Group and Ooredoo Group. Etisalat Brand Value continues its .. While improvements in Etisa
Slide 8: Peer groups comparison: EBITDA and net profit margins
Etisalat Group continues to enjoy the highest EBITDA % and one of the highest Net Profit % among peers Peer Groups Comparison Key performance indicators (Comparison on 3m basis, with some operators reporting EBITDA and Net Profit on a half-year basis) Revenue growth: LCY5 EBITDA Margin Net Profit Ma
Slide 9: 2018 key achievements
2018 was rich in achievements at Group level which were the result of our focused strategy and successful execution Key Achievements Mobily restructuring in progress turnaround started Portfolio Related Ongoing fixed network transformation in PTCL Completed capital increase and launched VOLTE
Slide 10: Market outlook: macro and telecom landscape
The macro and telecoms landscape continues to be dynamic creating opportunities and posing challenges Market Outlook Key Macro-Economic Drivers Key Telco Sector Drivers and Implications MENA Economic outlook is cautiously Growth in data revenue countered by voice optimistic, against a backdrop of de
Slide 11: Industry outlook: technology landscape
The technological landscape remains vivid with many topics that are expected to mature and/or accelerate in the coming year Industry Outlook Non-exhaustive Next Generation Quantum Connectivity Computing Accelerated Rollout Next generation Connected Society processing Early adoption Autonomous Immers
Slide 12: First in MENA to launch 5G commercially
As an industry leader, Etisalat was the first in MENA to launch 5G commercially with EXPO2020 as 1st business customer 5G Next Generation Connectivity Accelerated Rollout Connected Society 2019 will witness accelerated rollout of 5G network and the introduction of a wide range of consumer and IoT de
Slide 13: 5G subscriptions and traffic growth
5G will start registering noticeable momentum as of 2020, reaching over 1.48b subscriptions by 2024 and carrying over 25% of global mobile data traffic 5G Next Generation Connectivity Accelerated Rollout Connected Society Source: Ericsson Mobility Report, November 2018. EB stands for Exabyte. Note:
Slide 14: Growth in mobile video traffic
Massive growth in mobile video traffic is expected driven mainly by video streaming & immersive experience formats, dictating larger investments in network infrastructure Immersive Experience Immersive Experience Extended Reality Interactive Content Source: Ericsson, Audi, EB stands for Exabyte. Not
Slide 15: eSIM service launch
Our preemptive readiness have allowed us to be one of the first MNOs in the world to offer eSIM service e-SIM Etisalat was the first in the region to launch eSIM in 2018 launching Apple Watch series 3, followed by series 4 and the latest iPhones Embedded Driven by major consumer and industrial Origi
Slide 16: eSIM fueling the IoT boom
Overall, e-SIM is one of the elements that will fuel the upcoming IoT boom, hence enabling massive applications for enterprises & consumers & pushing connected objects to over 25bn by 2025 e-SIM Embedded Connectivity Wearables at scale Mass IoT Source: GSMA
Slide 17: Group digital strategy TARGET
Moving forward, we will continue to push the implementation of our Group digital strategy “TARGET”… Group Strategy Source: Etisalat Group
Slide 18: UAE strategy NEXT
..and will start the implementation of “NEXT” which is UAE’s updated strategy focusing on the core, digital and opportunities beyond the core UAE Strategy New Corporate Strategy, 2019-2021 Source: Etisalat Group
Slide 19: Closing remarks
Overall, Etisalat Group is determined to lead as a digital telco with enhanced efficiency, improved digitization and digital revenues as the key driver for growth Closing Remarks We are progressing steadily in delivering against our strategy, strategic objectives, and shareholders expectations.
Slide 20: Etisalat Group Financial Results
Etisalat Group Financial Results Serkan Okandan Group Chief Financial Officer
Slide 21: Etisalat Group financial highlights
ETISALAT GROUP FINANCIAL HIGHLIGHTS AED Million Q4 2018 Growth FY 2018 Growth YoY% (1) YoY% (1) Revenue 13,034 -3% 52,388 +1% EBITDA 6,222 -3% 25,880 0% EBITDA Margin 48% 0pp 49% -1pp Net profit 2,021 +2% 8,615 +2% Net profit Margin 16% +1pp 16% 0pp Capex 3,363 +28% 8,379 +5% Capex/Revenue 26% +6pp
Slide 22: Revenue and EBITDA breakdown FY2018
ETISALAT GROUP FINANCIAL HIGHLIGHTS Revenue Breakdown FY 2018 (AED m) EBITDA Breakdown FY 2018 (AED m) Egypt Egypt 4% Others 5% Others Pakistan 1% Pakistan 2% 5% 7% 52.4 25.9 Bn Bn UAE MT 63% MT UAE 27% 26% 60% Y0Y Growth +1% Y0Y Growth 0% UAE +1% UAE -2% MT Group (LC +3%) +6% MT Group (LC +4%) +7%
Slide 23: International operations financial highlights FY2018
INT’L OPERATIONS FINANCIAL HIGHLIGHTS FY 2018 Revenue (AED m)/EBITDA (AED m) / EBITDA Revenue & EBITDA (AED m) / EBITDA Margin Margin (%) (%) / YoY Growth % Maroc FY Growth Growth Telecom 2018 in AED in MAD 45% 46% 44% Revenue 13,390 +6% +3% EBITDA 6,981 +7% +4% EBITDA Margin 52% +1pp +1pp 21,470 20
Slide 24: Group revenue
GROUP REVENUE Revenue (AED m) and YoY growth (%) Sources of Revenue growth FY 2018 Vs. FY 2017 (AEDm) 51,636 52,388 209 752 320 51,636 52,388 291 238 4% 2% 4% 5% 13,457 -3% 13,150 13,034 1% -1% -3% FY'17 FY’17 UAE MT Group Egypt Pakistan Pakistan Others FY'18 Q4'17 Q3'18 Q4'18 FY'17 FY'18 UAE MT Gro
Slide 25: Group EBITDA
GROUP EBITDA EBITDA (AED m) & EBITDA Margin Sources of EBITDA growth FY 2018 Vs. FY 2017 (AEDm) 475 165 25,904 25,880 25,904 25,880 369 112 183 48% 50% 48% 50% 49% 4% 5% 6,426 -3% 6,579 6,222 Q4'17 Q3'18 Q4'18 FY'17 FY'18 FY’17 FY'17 UAE UAE MT Group Egypt MT Group Egypt Pakistan Pakistan Others Oth
Slide 26: Group capex
GROUP CAPEX CAPEX (AED m) & CAPEX/Revenue Ratio (%) Sources of Capex growth – FY 2018 vs FY 2017 (AED m) 7,959 8,379 822 106 69 8,379 7,959 26% 576 1 20% 3,363 4% 15% 16% 5% 2,631 12% -3% 1,601 FY’17 FY'17 UAE UAE MTGroup MT Egypt Group Egypt Pakistan Pakistan Others Others FY’18 FY'18 Q4'17 Q3'18 Q
Slide 27: Group balance sheet and cash flows
GROUP BALANCE SHEET & CASH FLOWS Balance Sheet (AED m) Dec-17 Dec-18 Investment Grade Credit Ratings Cash & bank Balances 27,125 28,361 AA-/Stable Total Assets 128,842 125,243 Total Debt 24,705 23,526 Net Cash / (Debt) 2,420 4,835 Aa3/Stable Total Equity 58,090 57,245 Cash flow (AED m) Dec-17 Dec-18
Slide 28: Debt profile: diversified debt portfolio
DEBT PROFILE: DIVERSIFIED DEBT PORTFOLIO Borrowings by Operation Q4 2018 (AED m) Borrowings by Currency Q4 2018 (%) 15,657 4,949 1,597 1,322 Group MT Group Egypt Pakistan Debt by Source Q4 2018 (AED m) Repayment Schedule Q4 2018 (AED m) 8,552 15,112 6,995 6,930 7,419 1,048 445 549 Bonds Bank Borrowi
Slide 29: Proposed dividend for 2018 of 80 fils per share
DIVIDENDS: Proposed dividend for 2018 of 80 fils per share Cash Dividends (AED m) Dividends Per Share (AED) 0.8 0.8 0.8 3,477 3,477 3,477 3,477 3,477 3,477 2016 2017 2018 2016 2017 2018 Dividend Yield (1) (%) Dividend Payout Ratio (%) 4.7% 82.6% 82.7% 80.7% 4.5% 4.3% 2016 2017 2018 2016 2017 2018 Pr
Slide 30: Country by country financial review
COUNTRY BY COUNTRY FINANCIAL REVIEW 30
Slide 31: UAE: focus on profitability while investing in network
UAE: FOCUS ON PROFITABILITY WHILE INVESTING IN NETWORK CAPABILITIES Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA % 31,173 31,382 16,656 16,196 3% 3% 2% 50% 52% 49% 53% 52% 1% 8,089 7,791 7,907 4,083 4,026 3,883 -2% Q4'17 Q3'18 Q4'18 FY'17 FY'18 Q4'17 Q3'18 Q4'18 FY'17 FY'18 Revenue YoY g
Slide 32: UAE: revenue breakdown and key KPIs
UAE: REVENUE BREAKDOWN AND KEY KPI’S Mobile Revenues(1) (AED m) Fixed Revenues(2) (AED m) Other Revenues(3) (AED m) 13,140 12,654 10,932 11,252 7,475 7,100 17% 16% 3% 8% 5% 3,320 3,153 3,156 2,734 2,821 2,844 1% 2,035 1,817 1,907 -1% -2% -4% 5% -6% -3% -5% 4% -2% Q4'17 Q3'18 Q4'18 FY'17 FY'18 Q4'17
Slide 33: Maroc Telecom: revenue and EBITDA trends improve
MAROC TELECOM: REVENUE AND EBITDA TRENDS IMPROVE Morocco, Benin, Burkina Faso, CAR, CDI, Gabon, Mali, Mauritania, Niger & Togo Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 3,166 61.0 60.7 12,638 13,390 57.0 2,589 33% 49% 53% 52% 51% 52% 25% 19% 1,100 23% 3,
Slide 34: Egypt: strong revenue growth and profitability increase
EGYPT: STRONG REVENUE GROWTH & PROFITABLITY INCREASE Subscribers(1) (m) Revenue (AED m) / EBITDA CAPEX (AED m) & CAPEX/Revenue Ratio (%) 2,806 682 681 32.3 2,486 27.8 27.5 38% 46% 45% 45% 40% 41% 27% 24% 20% 277 752 729 731 14% 144 107 Q4'17 Q3'18 Q4'18 Q4'17 Q3'18 Q4'18 FY'17 FY'18 Q4'17 Q3'18 Q4'1
Slide 35: Pakistan: growth in local currency, stable margins
PAKISTAN: GROWTH IN LOCAL CURRENCY, STABLE MARGINS & INVESTING IN NETWORK TRANSFORMATION Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 23.6 24.2 1,142 4,140 1,036 21.9 3,849 61% 33% 41% 32% 31% 33% 33% 552 417 30% 22% 25% 1,018 978 903 212 Q4'17 Q3'18 Q4'18
Slide 36: 2018 actual against guidance
2018 ACTUAL AGAINST GUIDANCE: Met 2018 GUIDANCE Financial Original Guidance Revised Guidance Actual KPI 2018 in AED 2018 in AED 2018 in AED Revenue Growth % Slightly lower Slightly higher +1.5% EBITDA Margin% 49% - 50% 49% - 50% 49.4% CAPEX / Revenue % 18% - 19% 15.5% - 16.5% 16.0% (1) Prior period
Slide 37: 2019 guidance
2019 GUIDANCE: FOCUS ON SHAREHOLDERS’ VALUE & INVESTING IN THE FUTURE Financial Actual Guidance KPI 2018 in AED 2019 in AED Revenue Growth % +1.5% Slightly lower EBITDA Margin% 49.4% 48% - 49% EPS (1) (AED) 0.99 0.99 – 1.02 CAPEX / Revenue % 16.0% 18% - 19% (1) EPS guidance exclude the impact of sha
Slide 38: Etisalat International
Etisalat International Hatem Dowidar Chief Executive Officer – Etisalat International
Slide 39: Strong portfolio of international investments
Strong portfolio of Int’l investments after rationalization is completed Etisalat International Value shares #1 #2 #3 International Portfolio with presence in 14 countries (outside UAE); 13 markets Afghanistan consolidated Morocco Egypt1 Pakistan1 #1 or #2 value share position Saudi Arabia in 12
Slide 40: International investments key contributor to profitable growth
International investments key contributor for Etisalat Group profitable growth Revenues (AED bn) EBITDA (AED bn, %) OFCF Proxy (2) (AED bn, %) -7% +4% 21.5 20.7 20.0 -4% +5% +27% -14% 9.4 9.1 9.5 Etisalat 4.9 5.4 International 4.2 46% 45% Consolidated 44% 26% 23% 21% 2016 2017 2018 2016 2017 2018 20
Slide 41: Four main markets delivering exceptional performance
4 main markets, strongholds of Etisalat International strategy, are delivering exceptional performance… 2018 ACHIEVEMENTS Leadership position Profitable challenger Revenues: 36.0 bn MAD (+3% YoY) Revenues: 13.6 bn EGP (+13% YoY) EBITDA: 17.9 bn MAD (+4% YoY), 49.6% EBITDA: 5.5 bn EGP (+16% YoY), mar
Slide 42: Value share gains in each market
… and are showing significant change of pace, resulting in value share gains in each market in the past two years Morocco – mobile Egypt – mobile 29.5% 60% Misr 2016 2017 2018 2016 2017 2018 Saudi Arabia – Total telco Pakistan – mobile 19% 14.5% 2016 2017 2018 2016 2017 2018
Slide 43: Maroc Telecom returned to growth
Maroc Telecom returned to growth while meeting the appetite for Data in Morocco and West Africa subsidiaries Revenues YoY evolution 4.6% 3.0% 2.4% Morocco 1.0% MT Group -0.8% -3.6% 2016 2017 2018 • Challenging Regulatory • Strong bet on 4G spectrum • Expansion of the 4G environment: and fixed Networ
Slide 44: Mobily re-started to grow
Mobily re-started to grow as turnaround accelerated Revenue growth QoQ 11.8% Revenue growth YoY 6.2% -1.5% -16.7% EBITDA 32.5% 31.5% 32.2% 32.2% 36.6% 36.8% 36.5% 41.3% Margin Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 RISE Strategy under implementation and New Management New acceleration of th
Slide 45: Etisalat Misr outpacing the market
Etisalat Misr is outpacing the market, with upward trend of revenues in USD terms Revenues evolution – USD Million 1,108 771 683 EGP devaluation 4th mobile player Hyperinflation SIM sale restricted to direct channels 2016 2017 2018
Slide 46: PTCL Group building momentum in Pakistan
In Pakistan, PTCL Group is building very good momentum both in the fixed and in the mobile market • Investment in Fixed Network • Ufone revamped commercial transformation delivering value engine continue to capture • 2018 was the first year of growth growing mobile Data demand since 2014 • Launch of
Slide 47: Priorities for portfolio development
Priorities for Portfolio development 1 Consolidation • Largely completed - multiple divestments completed over the last 5 years & • Continue optimizing footprint via in-market consolidation, acquisition of Divestments licenses and spectrum and bolt-on acquisitions 2 Opportunistic expansion in • Scre
Slide 48: Way forward
Way forward……. Continue stronghold strategy reinforcing position in our key markets Leverage on new services (for example mobile financial services) to create additional streams to complement core revenues Explore growth through inorganic acquisitions which meet our investment criteria
Slide 49: Etisalat Group Strategy
Etisalat Group Strategy Khalifa Alshamsi Chief Strategy & Governance Officer
Slide 50: Macro-economic environment across the footprint
The Macro-economic Environment Across the Footprint Offers both Opportunities to Exploit and Challenges to Mitigate… Key Macro-Economic Drivers Highlights MENA Economic outlook is • Population growth of ~2% across the footprint and major cautiously optimistic, against a markets’ real GDP growing at
Slide 51: Five areas of driving trends reshaping Telco/ICT
…and we observe a range of driving trends across five areas that will continue to re-shape the Telco/ICT industry 1 2 3 4 5 Growth in Evolving Core Network/IT Changing Customer Focus on Internal ICT/Digital and Telecom Market Transformation Behavior Transformation Adjacencies Deployment of Growth in
Slide 52: Virtuous cycle of industry change
These trends are combining to create a faster moving virtuous cycle of industry change Technology changes at exponential rates Technology and unlocking value Fuelled is a competitive Disruption advantage Players evolve their strategic responses Evolving on ongoing basis Business with adaptation Mode
Slide 53: Group vision and strategy TARGET
Last Year, Etisalat introduced a new Group Vision and Strategy, “TARGET” Etisalat Group Strategy: TARGET To Drive the Digital Future to Empower Societies Accelerate value generation through innovation and digitization Raise capabilities and develop talent across the Group Grow B2B/Digital across the
Slide 54: Protect core businesses of OpCos
A key focus of TARGET is to protect the core businesses of our OpCos thus becoming stronghold telcos and ultimately stronghold digital-telcos T: Transform Operating Companies into Strongholds Stronghold Digital-Telco Marketing Selected Strategic Achievements: Customer • Etisalat UAE retained custome
Slide 55: Portfolio expansion and rationalization
Portfolio expansion/rationalization is also key along with accelerating the growth of digital and related adjacencies across the footprint E • Reduced our presence in Sri Lanka with a minority stake in the merged entity of Hutch Portfolio Rationalization • Completed the sale of stake in Thuraya Expa
Slide 56: Digital transformation and talent
Digital transformation is key to drive efficiency and agility with right talent underpinning the entire Group Strategy R Culture & Collaboration • Employee Engagement up 9% Vs. 2017 • Enriched culture around e.g. Leadership, Performance Centricity, Innovation, Global Community and Values Raise capab
Slide 57: Strategic priorities for 2019
Going forward, Etisalat has defined several strategic priorities for 2019 TARGET 2019 Focus Areas 5 1 Grow Portfolio Optimize support Exploit Explore Synergies incremental growth Network opportunities sharing 2 Strategic Protect Protect SME Protect Fixed Mobile Revamp Core Priorities Grow Digitize B
Slide 58: Etisalat UAE corporate strategy NEXT
Aligned and cascaded with TARGET, Etisalat UAE has put in place a new Corporate Strategy… Vision Drive the Digital Future to Empower Societies Maximize Long term Shareholder Value Strategic Goals Growth at Full Potential Efficiency embedded across organization Customer Centricity Collaboration Agili
Slide 59: Updated strategy: core, digital and beyond
…which is our updated strategy focusing on the core, digital and opportunities beyond the core Vision To Drive the Digital Future to Empower Societies Shareholder value creation in the long term by coupling Goals growth and efficiency …focused on innovation in our core propositions and Breakthrough
Slide 60: Etisalat UAE leading on 5G use cases
For example, Etisalat UAE is taking a leading position on 5G via exploration of a range of use cases across different segments Key Features of 5G Massive Internet of Things Ultra Reliable Low Latency Enhanced Mobile Fixed Wireless Access (mIoT) Communication (uRLLC) Broadband (eMBB) (FWA) Non Exhaus
Slide 61: Etisalat UAE strategic priorities for 2019
On a broader level, Etisalat UAE has a clear agenda of strategic priorities for 2019 Digital Growth Efficiency Digitization − Reshaping revenue − Streamlining operations − Introducing new digital structure and processes channels − Digital services revenue − Delivering internal − Increasing the adopt
Slide 62: Deeper and broader role in consumers' lives
This will enable Etisalat UAE to play both a deeper and broader role in Consumers’ overall lives… Breadth Depth Range of Communications verticals covered Fixed via eCommerce Mobile Shopping and Wallet Mobile Handsets Media Groceries Advertising Clothes Carrier and Dining & /Apparel Wholesale Content
Slide 63: Etisalat Digital and B2B diversification
…and via Etisalat Digital and B2B diversification focus, Etisalat UAE will power Enterprise transformation and enable new business models Etisalat Evolved Focus in Enterprise Life • Historically, Etisalat focused on serving Connectivity Enterprises with connectivity up to the CPE • This progressed t
Slide 64: Summary of Group strategy and plans
In summary, Etisalat Group has a strategy and plans in place to deliver digital growth and efficiency Portfolio Core Business Protection Digital/Adjacencies Growth • Strong focus to reinforce • Protecting data • Strong focus on growing and strengthen Etisalat UAE • Increasing penetration of B2B Digi
Slide 65: Q&A
Q&A
Slide 66: Etisalat UAE
Etisalat UAE Khaled El-Khouly Chief Consumer Officer – Etisalat UAE
Slide 67: Etisalat UAE Consumer ART strategy
placing Customer at the heart of our proposition and aiming at value maximization Etisalat UAE Consumer - “ART” strategy Augmenting the Address Advance the Expand the depth consumers customer A Customer of customer with digital + experience relationship engagement physical sales transformation Migra
Slide 68: Home segment: ARPU uplift and eLife base
In home segment, the year was marked with a YoY ARPU uplift of 10%, with the eLife base surpassing the 1 million level Performance Highlights Consumer eLife base Performance Highlights Despite the market penetration reaching +4% to saturation levels, eLife base surpassed 1 million subscribers, pla
Slide 69: Mobile postpaid segment
In mobile, postpaid segment kept being at the core of our value- focused approach Performance Highlights Mobile Postpaid base Performance Highlights Despite the less favorable macroeconomic context and the VAT introduction, +6% postpaid subs continued to grow with a YoY rate of 6%, growing their s
Slide 70: Most valuable consumer brand in MENA
In addition, our brand was recognized as the most valuable consumer brand in MENA for the 2nd consecutive year Source: Brand Finance 2019 Report
Slide 71: Revamped postpaid and home portfolio
Our postpaid and home segment portfolio has been revamped, in line with our ambitions to drive value-focused growth and effective monetization of the base Positioning of Etisalat UAE Consumer propositions Market segments Blue Collar Brand new product Youth structures providing flexibility and also M
Slide 72: eLife Unlimited plans
In home segment, eLife Unlimited plans’ family was launched with 5x greater speeds and enriched TV content, driving the shift of subs to higher packages Introduction Introductionof ofeLife Unlimited eLife Unlimited % of customers with speeds >20 Mbps +6.1 p.p. eLife packages by speed x5 Entry level
Slide 73: Freedom and Control plans
In mobile, introduction of Freedom and Control plans aims at triggering ARPU growth by offering more premium benefits and greater flexibility Commercial Highlights Freedom plans Control plan
Slide 74: Data-centric add-ons
In line with our customer-centric approach, several add-ons were launched to complement our data-centric portfolio… Commercial Highlights Non-Stop data Annual Add-ons The end of Roamophobia Play on demand
Slide 75: Internet Calling Plans performance
…and Internet Calling Plans have also demonstrated strong performance so far, driven by the roll out of new apps and the launch of daily and monthly plans Commercial Highlights Etisalat UAE ICP revenues +62% H1 ’18 H2 ’18
Slide 76: Expanding device portfolio
Our device portfolio is also continuously expanding beyond traditional, to include latest gadgets, technologies and ecosystem-related services Commercial Highlights – Reinforcement of Etisalat’s position as the operator of choice +
Slide 77: Non-core propositions
We also expanded our non-core propositions, opening new avenues for customer base monetization Commercial Highlights – Monetization of existing base with beyond the core services eLife TV Gaming Home Protection plan Starz Play Apple Music
Slide 78: Smiles base more than doubled
Smiles base more than doubled with record engagement levels and expanded synergies with the participating partners Registered Smiles unique users highlights +111% 350+ 3,000+ partners outlets Dec’17 Dec’18 Smiles purchases +206% Q4’17 Q4’18
Slide 79: Digital touch points and channels
Enhancement of our digital touch points and channels continue at greater speeds, enabling a seamless experience and higher adoption by customers Mobile App active users Recharges via Digital & Self-Care +37% +64% Q1’18 Q4’18 Q4’17 Q4’18
Slide 80: Digital channels improve customer satisfaction
Digital channels’ expansion combined with automation efforts in customer services, deliver significant improvements in customer satisfaction and operational efficiencies Registered complaints Retail satisfaction +7 p.p. -18% Q4’17 Q4’18 2017 2018
Slide 81: TRI*M score
Finally, all our efforts on different fronts strengthened the relationship with our customers, as reflected in our TRI*M score TRI*M score Index +3% Dec’17 Dec’18
Slide 82: In summary
In summary… • “ART Strategy” is yielding strong results by placing customer at the heart of our proposition and maximizing value • In 2018, focused on delivering value in core services, both in home (10% YoY ARPU growth) and mobile (6% YoY base growth) enabled by: – Revamp of Home portfolio through
Slide 83: Q&A
Q&A
Slide 84: Etisalat UAE
Etisalat UAE Salvador Anglada Chief Business Officer – Etisalat UAE
Slide 85: Business unit becoming a digital telco
Etisalat UAE business unit has continued reinforcing its capabilities 1 to become a digital telco Digital Telco Cloudify Communications SMB Digital Transformation program 360 Digital Automation & Robots Open Innovation Business 3.0 Collaborative & Agile 3.0 2019 Digital Channels set up Collaborate t
Slide 86: SMB Transformation Program
We are executing our SMB Transformation Program to create a new engine of growth Proposition Become the single point of contact for all the ICT needs, making it easier for SMBs to move to the cloud Traditional Office Cloud Office Status 75% Completed * UCaaS – Unified Communications as a Services **
Slide 87: Managed E2E and network virtualization
We are moving from Managed Services towards Managed E2E and this year focus will be on the Network Virtualization Managed End to End Network Virtualization & Cloudify Coms Launch June 2019 Cloudify SDWAN Comms. Cloudify and MSS Portal & Virtualize all E2E UNIFFIED building blocks + SUPPORT Dashboard
Slide 88: Global Services regional leader
We continue investing to become the ‘Global Services’ regional leader Coverage Key Highlights • New Pops with 13 additional nodes • New propositions: New MNC Mobile plans Microsoft Cloud Express +90% of the global economic footprint SDWAN 1200+ global links for MNCs across 80+ countries Key Referenc
Slide 89: Etisalat Digital growth and milestones
Etisalat Digital is delivering a remarkable growth meting key milestones while building capabilities for the future TCV Growth - - HC 28% 54 HC +20% 29% +163% 142 HC 188% 192 HC +35% Cloud
Slide 90: Expo 2020 smartest connected site
In Expo we are building the fastest, smartest and most connected site on earth Infrastructure Two onsite PoPs GPON fiber deployment First 5G commercial client in the region Timeline IT Applications and Systems P0P Buildings Master System integrator 2019 EXPO 2020 Portal Multicloud IT infra
Slide 91: Reference projects in different verticals
We continue creating important references in different verticals that will be replicated in the future Al Ain Smart Mohamad Bin Rashid Hospital Smart Library Scope Scope • End-to-end converged network • Smart Infrastructure & Application Operation • Design, Supply and Installation of: • Managed LAN,
Slide 92: Working with large customers as trusted partner
We are closely working with large customers as trusted partner to support them in their digital journey Private Cloud Private Cloud Infrastructure Design and Deployment E2E Managed Service Solution Managed Connectivity, Security, Disaster Recovery and Operations Cyber Security Data Lake for advance
Slide 93: Geographic expansion and inorganic moves
In order to further accelerate, we are assessing geographic expansion and inorganic additional moves High Large Bet Acquire/invest in selected Revenue Uplift Potential player(s) already working with Etisalat Digital to uplift revenue Organic expansion / Acquire Medium players in OpCo countries and
Slide 94: Etisalat Digital office in KSA and Egypt
We are considering opening an Etisalat Digital office in KSA and Egypt by levering on a mega project win Shib Sehe project Customer Saudi Healthcare Unified Platform End customer 35M Population 2500 providers 36 insurances E-Claim project Automate the Customer comprehensive health insurance system (
Slide 95: Emerging technologies
We have detected new emerging technologies that will help further accelerate VCloud – IoT AI Blockchain Networks Potential Applications Blockchain networks for Crime prevention Banking Reduction in Traffic Violations Logistics Suspicious Behavior Control
Slide 96: Etisalat Digital Future Now program
We have launched the Etisalat Digital Future Now program as our innovation arm to create a state of the art portfolio
Slide 97: Internal digital transformation
We are executing our internal digital transformation increasing our efficiency and delivering a superior customer experience 1 Customer Experience Factory Front-end transformation 4 2 Virtual Agent Agile at scale for product Channel development Self Service Virtual Agent 100% Human scale up Internal
Slide 98: Way forward
Way forward…. We will continue our transformation journey to become a digital telco We are maximizing the value of our core business through an excellent commercial and operational control and delivering superior customer experience We will continue cloudifiying our communications, moving towa
Slide 99: Q&A
Q&A
Slide 100: Mobily
Mobily Ahmed Aboudoma Chief Executive Officer – Mobily
Slide 101: Regulatory and telecom environment
Regulatory and Telecom Environment I General overview • Price rationalization • Delay of e-SIM regulation • Spectrum auction in the 800 and 1800 MHz bands • New royalty fee regime with effect starting from 2018 Regulatory and • Settlement of previous disputes with the regulator in connection with Te
Slide 102: Major highlights: 2018 key messages
Major Highlights l 2018 Key messages • The RISE turnaround strategy is yielding steady strong results: Mobily is on the right trajectory. • Consistent strong performance: o 5th consecutive QoQ quarterly revenue growth o 3rd consecutive YoY quarterly revenue growth o 6th consecutive QoQ quarterly EBI
Slide 103: Mobily's turnaround is showing sustainable results
Key Takeaway | Mobily’s turnaround is showing sustainable results Financials are turning around… • Revenues • Profitability • Debt • etc… Customer Experience is turning around… • TRI*M • Customer Care Operations are turning • Social & Digital around… • etc… • Sales & Marketing Operations • Technical
Slide 104: The journey: size of the challenge
The Journey | In 2017 we identified the size of the challenge to achieve sustainable performance improvements and a financial turnaround Financial Turnaround Above the Customer Commercial Revamp Customer surface Experience Experience Systems Brand Infrastructure Modernization People / Capabilities S
Slide 105: RISE turnaround strategy
Strategy | RISE Turnaround strategy revamps our commercial performance, centers in on customer experience, and makes us “better, faster, cheaper” Regain Ignite CUSTOMER Strive Enable R COMMERCIAL strength I EXPERIENCE and DIGITAL excellence S to gain AGILITY and EFFICIENCY E world-class EXECUTION •
Slide 106: Fixed the foundations and solved legacy problems
Strategy | We fixed the foundations and solved legacy problems leading the way for sustainable improvements 2019+ World-class performance H2 2018- H1 2019 ‘Wow’ing customers Excel in customer experience “ To be one of the most admired Saudi companies, creating superior value for ” our stakeholders 2
Slide 107: Mobily DNA and culture
Mobily DNA & Culture | First of all, we revamped our Mobily culture to re-energize our people and DNA. This plants the seeds for future success New Mobily positioning Build a proactive culture with high levels of individual accountability and leadership “ Passionate to Instill winning culture aligne
Slide 108: Technology modernization and network speed
Technology Modernization | Network modernization project, along with new spectrum, shows strong results. Speed tests in 2018 prove it 37 37 36 36 36 36 Example: Jeddah 34 33 32 29 29 28 27 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 25 25 24 23 23 21 20 20 Example: Hufuf 20 19 19 19 17 17 15 15
Slide 109: CEX and digital performance: new app
CEX & Digital Performance | We are digitizing key customer interfaces. The new app is driving growth and self-service Unique App Users 2018 Digital Subscriptions 2018 +114% +1,707% Dec Mar Jun Sep Dec Dec Mar Jun Sep Dec Social Media IVR Calls vs. App Sessions Response Time (Minutes) -11% +42% 98% A
Slide 110: Customer experience TRI*M results
CEX & Digital Performance | Customer Experience has increased steadily in 2018. TRI*M results show improvement TRI*M 2018 Customer Satisfaction “Care Service Request Closure” 97 95 95 93 92 92 +45% 91 90 90 89 89 87 84 83 84 83 83 82 82 82 81 81 81 82 83 80 82 82 79 79 78 78 76 76 75 Jan Mar Jun Sep
Slide 111: Consumer prepaid offerings
Commercial Performance – Consumer | New prepaid offerings have been well accepted. New bundle customers have grown by x10 in 2018 Prepaid Prepaid Bundles Subscriptions x11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 111
Slide 112: Consumer postpaid portfolio
Commercial Performance – Consumer | New postpaid portfolio has been well accepted by customers and contributed significantly to growth Postpaid Subscriber Base for New Postpaid Packages Avg. monthly growth 23.5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 112
Slide 113: IDD tariffs and Hajj/Umra packs
Commercial Performance – Consumer | New “all you can eat” IDD tariffs lead to traffic/ usage. New Hajj/Umra packs increased subscribers by +54% IDD Hajj & Umra FTTH Yearly GA (Subscribers) +54.4% Revenues +18.1% 2017 2018 YTD 2017 YTD 2018 Yearly Data Traffic (Usage GB ‘000) • Monthly IDD traffic is
Slide 114: Business: major multi-year deals closed
Commercial Performance – Business | Major multi-year deals closed with key government and business clients Business Ministry of Ministry of Foreign GOSI Saudi Aramco Al Rajhi Bank Health Affairs Ministry of Labor National Ministry of Riyadh & Social SABIC Commercial Finance Airports Development Bank
Slide 115: Cost control program
Cost Control | Mobily has been running a systematic cost efficiency program. This created the basis for a sustainable financial performance Today 2016+ Wave 1 Quick Wins • Stop inefficient 2017+ spending • Use benchmarking Wave 2 Wave 1 Further Improvements Quick Wins • Renegotiate contracts • Vendo
Slide 116: Revenue growth for consecutive quarters
Key Financial Highlights | QoQ revenue growth for 5 consecutive quarters in a row Revenue ∆ QoQ -4.4% -10.9% -0.8% -1.5% -0.4% -1.7% 0.7% 0.2% 2.2% 2.8% 6.2% ∆ YoY -16.7% -13.2% -4.3% -2.8% -1.1% 1.4% 6.1% 11.8% 3,440 3,289 3,162 in MN SAR 2,976 2,932 2,908 2,895 2,865 2,854 2,833 2,806 2,827 ’16 Q1
Slide 117: EBITDA growth for consecutive quarters
Key Financial Highlights | QoQ EBITDA growth for 6 consecutive quarters in a row, and highest annual EBITDA since 2013 EBITDA +23.4% MN SAR % +2.9% +1.9% 1,400 -4.6% +13.8% 1,341 50 -3.4% +0.3% +0.8% 1,200 1,087 1,036 1,066 40 977 932 41.3% 1,000 900 903 911 36.6% 36.8% 36.5% 33.6% 30 800 32.5% 31.5
Slide 118: Capex deployment
Key Financial Highlights I Deployment of intensive capital program CAPEX/ CAPEX to revenues % (In SAR Million) 1.015 +24% 3,212 37% 814 2,818 754 706 16% 2,268 29% 544 24% 25% 22% 2,368 19% 20% 1,216 450 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2016 2017 2018 CAPEX/Revenues% Spectrum CAPEX Capitaliza
Slide 119: Highest operational cash flow since 2011
Key Financial Highlights I Highest Operational Cash Flow Since 2011 Operational Cash Flow (EBITDA – CAPEX) (In SAR Million) 635 +24% 522 50% 1,712 333 1,377 222 800 2016 2017 2018 (128) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Operational Cash Flow • Mobily continues to deliver consistently strong ca
Slide 120: Lowest net debt since 2012
Key Financial Highlights I Lowest net debt since 2012 Net Debt and Net Debt/EBITDA (In SAR Million) -11% 13,993 -11% 12,687 12.7 11,288 12.3 12.1 11.6 11.3 -3% 3.5 3.4 3.50 2.5 3.29 3.11 2.84 2.49 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2016 2017 2018 Net Debt/EBITDA Net Debt • 2018 marks the year w
Slide 121: Net result development
Key Financial Highlights I Net result development Net Income (In SAR Million) 83% 80 (123) (214) (31) (93) (79) (182) (709) 2016 2017 2018 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 • Mobily succeeded in reducing its net losses by 82.7% at the end of 2018, where the net loss for year ending at 31 Decem
Slide 122: Outlook 2019: Digital First
Outlook 2019 | “Digital First” – Becoming digital across all dimensions will drive 2019 activities Digital First Brand & Commercial IT Network Customer Care Marcom Organization Culture Governance Agile Procurement 122
Slide 123: Outlook 2019: continuing momentum
Outlook 2019 | Continuing on the strong momentum while exploring new horizons Targeting Improved Push Consumer high-end Consumer price data packages Saudi rationalization to segments grow revenues Digital External opportunities, Revenue focus Push e-sales,… Capitalize on ongoing Enter Mobile penetra
Slide 124: Q&A
Q&A
Slide 125: PTCL Group
PTCL Group Dr. Daniel Ritz Chief Executive Officer – PTCL Group
Slide 126: PTCL Group key highlights FY2018
PTCL Group - Key Highlights FY 2018 8% growth in consolidated revenue mainly driven by growth in mobile and fixed line data segments PTCL GROUP PKR 126 bn PKR 41 bn PKR 5.7 bn 8% 5% 32% Consolidated Consolidated Consolidated Revenue EBITDA Net Profit
Slide 127: Key strategic and operational highlights
Key Strategic & Operational Highlights • PTCL returns to full year revenue growth after 4 years • Network transformation project (NTP) half way done – double digit revenue growth in NTP areas • Corporate services grew 13% YoY - mainly driven by Managed Services and Cloud based solutions • PTCL assig
Slide 128: Agenda
Agenda • Overview of Operating Environment • Key Financial and Operational Highlights • Strategic Priorities / Way Forward
Slide 129: Country highlights
Country Highlights Demographics • 6th most populous country 208 Mn with annual Growth rate of 2.4% • Youth potential is untapped. 52% of population is less than 24 years of age Economic • GDP for year 2018 is PKR 34.39 Trillion • CPI Inflation increased to 7.2% YoY • Interest Rates increased to 10.2
Slide 130: Telecom market: subscribers and penetration
Telecom Market – Subscribers and Penetration Significant opportunity in fixed line broadband segment for growth Mobile Subscriber & Penetration Fixed Broadband Subscribers & Penetration As % of Population As % of Households 73.85% 5.4% Penetration Penetration Mobile 1 Fixed Broadband 154 Million 1.7
Slide 131: Telecom market value share
Telecom Market – Value Share PTCL Group holds 25% of the market value share Total market value PKR 512 bn Overall Market Value 2018 - PKR 512 bn Market map by competitor 2018 - PKR 512 bn 61 383 68 128 175 111 75 23 Voice 25% 47% 46% 70 1 Non-Voice 75% 53% 54% 58 2 Other Fixed Mobile Wholesale & PTC
Slide 132: Agenda
Agenda • Overview of Operating Environment • Key Financial and Operational Highlights • Strategic Priorities / Way Forward
Slide 133: PTCL Group key financial highlights 2018
PTCL Group – Key Financial Highlights 2018 YoY growth of 5% in EBITDA and 32% in Net Profit on account of strong topline growth Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) (PKR bn) +8% (PKR bn) +5% 126 117 39 41 34% 33% 2017 2018 2017 2018 Net Profit /Profit Margin (%) Capex & Capex/Reve
Slide 134: PTCL key financial highlights 2018
PTCL – Key Financial Highlights 2018 YoY change in EBITDA -1% and Net Profit +1% at constant currency Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) (PKR bn) +1% (PKR bn) -7% -1% 69.6 70.1 22.7 21.2 22.4 1 33% 32% 30% 2017 2018 2017 2018 2018 At Constant Currency Net Profit /Profit Margin (
Slide 135: PTCL revenue growth 2018
PTCL Revenue Growth 2018 YoY revenue has shown growth first time since 2014 % Change in Revenue YoY 4% 3.4% 2% 0.6% 0.7% 0% -2% -2.5% -4% -6% -5.7% -8% -7.1% 2014 2015 2016 2017 2018 Q4 2018 • Share of growing segments increased from 70% in 2017 to 75% in 2018 • 6% growth in Wireline data, 13% growt
Slide 136: PTCL revenue segments 2018
PTCL Revenue Segments 2018 75% of revenue base showing growth % of Revenue 89% 90 75% 75 60 55% Revenue Growth 2018 vs 2017 (%) 49% 45 30 15 10% 5% 5% 3% 1% 0 -4% -7% -15 -30 -35% -45 -60 -75 -71% Corp. IPTV DSL NTP C&WS DSL IBR Corp. C&WS Voice EVO Growth NTP Others Non-NTP Core M2F IPTV Services C
Slide 137: PTCL key operational highlights 2018
PTCL – Key Operational Highlights 2018 Growth in DSL Subscribers along with ARPUs based on shifting of subscribers on higher bandwidth packages Subs DSL (# in ‘000) DSL Customer Breakup % - Based on Mbps +2% Ø 100% 35% 1,404 1,436 1,207 51% 1,171 2017 2018 ARPU DSL (PKR) 1,779 1,890 65% 49% +4% Dec-
Slide 138: PTCL corporate business 2018
PTCL Corporate Business 2018 Overall 13% growth mainly driven by 89% increase in growing segments which includes Managed Services, Cloud & Hosting, Security and IT Security Services +18% +13% Growth Services 6,928 330 280 PKR Mn Managed 6,117 Services 1,598 842 2017 2018 89% +41% 557 395 Cloud & Hos
Slide 139: Carrier and wholesale business 2018
Carrier & Wholesale Business 2018 3% growth in Carrier Business mainly driven by 41% growth in IP Bandwidth Services +3.0% 9,331 PKR Mn 9,063 418 559 1,500 1,596 Other Services Colocation IP-Bandwidth 1,564 2,205 Mobile to Fixed 41% DPLC 2,190 2,099 3,155 3,109 2017 2018
Slide 140: Ufone key financial highlights 2018
Ufone – Key Financial Highlights 2018 Strong topline growth of 13% resulted in improvements in EBITDA and Net Losses Revenue / Revenue Growth (%) EBITDA / EBITDA Margin (%) +13% +21% (PKR bn) 1 58 (PKR bn) 20 51 16 34% 32% 2017 2018 2017 2018 Net Profit /Profit Margin (%) Capex & Capex/Revenue (%) (
Slide 141: Ufone revenue growth
Ufone Revenue Growth Significant revenue growth YoY for the Year and Q4 2018 +13.1% 57.80 2018 YoY Q4 2018 YoY 13.1% 3.91 21.0% growth with tax benefit growth with tax benefit 21.30% 21.00% 51.11 +5.4% 51.11 53.89 5.20% 4.30% 7.50% 5.50% 4.30% 4.40% 3.20% -1.50% -1.50% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18
Slide 142: Ufone key operational highlights 2018
Ufone – Key Operational Highlights 2018 2.6 M subscribers addition in 2018 Sub – Ufone (# in Million) ARPU – Ufone (PKR) +14% +5% 21.56 227 238 18.97 2017 2018 2017 2018 14 2
Slide 143: Ufone subscriber base
Ufone Subscriber Base Subscriber base crosses 21.6 Million with significant growth in data subscribers 90 Days Subscribers (Mn) +2.6 YoY Subs Growth (Q4’18 Vs Q4’17) 21.6 20.8 20.3 19.9 19.0 18.4 18.5 +45% 8.3 6.2 6.6 7.9 5.0 5.4 5.7 -0.2% 13.4 13.1 13.3 13.7 13.7 13.0 13.2 Q2 17 Q3 17 Q4 17 Q1 18 Q
Slide 144: Ufone data revenue
Ufone Data Revenue 38% data Subscribers contributing almost 60% of revenue Revenue Split (%) (Data Vs Non-Data) 58% 57% 53% 52% 54% 50% 51% 47% 50% 49% 48% 46% 43% 42% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 8 Non Data Subs Revenue Data Subs Revenue 14 4
Slide 145: U Microfinance Bank Limited – Ubank
U Microfinance Bank Limited – Ubank Business Operations Services Services Microfinance Loans Branchless Bill Payments Microfinance Banking Services Banking Services Deposit Products Upaisa Money Transfers (in collaboration with Ufone) Home Remittances Mobile Accounts 621 287 141 45K K K Branch Netwo
Slide 146: Ubank key operational highlights
Ubank – Key Operational Highlights Significant growth in all the key performance indicators No. of Loan Customer Customer Deposits No. of Employees Branches Customers Loans 2015 22 K 0.919 Bn 1.10 Bn 409 38 2016 118 K 5.57 Bn 8.10 Bn 939 75 2017 187 K 10.6 Bn 11.97 Bn 1,321 100 2018 287 K 17.02 Bn 2
Slide 147: Ubank key financial highlights 2018
Ubank – Key Financial Highlights 2018 YoY 64% growth in revenue and 111% in Net Profit driven by growth in loan and deposit portfolios Revenue / Revenue Growth (%) Operating Profit / Operating Profit Margin (%) (PKR Mn) (PKR Mn) +64% +251% 386 110 4,582 2,796 8% 4% 2017 2018 2017 2018 Net Profit /Pr
Slide 148: Agenda
Agenda • Overview of Operating Environment • Key Financial and Operational Highlights • Strategic Priorities / Way Forward
Slide 149: Strategic priorities / way forward
Strategic Priorities / Way Forward Our ‘must win battles’ 2019 and beyond Opco Strategic Priorities / Way Forward 2019 Grow Broadband business aggressively Improve service levels and quality to reduce customer churn Build/grow ICT Business aggressively Capitalize on significant wholesale opp
Slide 150: Q&A
Q&A
Slide 151: Etisalat Misr
Etisalat Misr Hazem Metwally Chief Executive Office – Etisalat Misr
Slide 152: Country overview
COUNTRY OVERVIEW A highly competitive market with significant opportunities OUTLOOK Despite challenging conditions ... positive macroeconomic outlook lies ahead IMF 2023 TE MOBILE “WE” Entry GROWTH MOMENTUM (WE) hammers on local Egypt ranks #1 in Population among Arab countries (~52%<24 brand imag
Slide 153: Industry overview
INDUSTRY OVERVIEW In spite of intensified competitiveness, Telecom sector continue to provide growth opportunities Market Attractiveness The Egyptian telecom industry witnessed EM & Orange capital injections in 2018 reaffirming investors’ confidence in the Egyptian market Mobile Market Growth Mobile
Slide 154: Competition landscape
COMPETITION LANDSCAPE EM leadership across key market KPIs Value EBITDA Share Margin orange vodafone WE 16 % 9% 16 % ~EGP0.9 bn REVENUE REVENUE REVENUE MOBILE GROWTH GROWTH 1 GROWTH REVENUE 1 2017 27.6% 40% 27.8% 32% 44.4% 45% 0.2% NA 2018 27.7% 41% 26.2% 29% 44.3% 44% 1.8% NA Focus on Customer Grow
Slide 155: Regulatory environment
REGULATORY ENVIRONMENT: EM engages the external environment in a focused and effective way Interconnect xxx Legal EM & TE strategic Sales Tax Adjustment Fixed Voice Agreement Disputes orange Cooperation vodafone EM won arbitral Settlement with Tax NR updated agreement Comprehensive award against Aut
Slide 156: Commercial performance: consumer and enterprise
EM COMMERCIAL PERFORMANCE: Maintained our strong performance in consumer and enterprise segments while leading the way to digital transformation Enablers Performance Mass Youth Young High (Micro commitment) Professionals Value 10% CONSUMER REVENUE Consumer Economic Increasing uptake of well position
Slide 157: Digital performance: digitization
EM DIGITAL PERFORMANCE: EM’s digital transformation technology tracks Enablers Performance Digital Touch Digital Digital Rich points purchases CVM content My Etisalat App M-commerce & Sports, Music & Economic I-Pipe & RTIM Web dashboard e-shop Games I-pipe self care 2018 Branded Platform
Slide 158: Digital performance: operational efficiency
EM DIGITAL PERFORMANCE: Our digital activities are paying off (Reduction On Call Center Demand) Figures in Thousands Pushing for self-services & Customer 1,829 1,813 Dynamic IVR E- chat 1,630 Economic Connect 1,381 Inbound consumer calls 1,262 Digital Enablement on App 1,061 994 Moving services Chat
Slide 159: Network capability: 4G network
EM NETWORK CAPABILITY: 4G network offering superior customer experience with noticeable yield enhancement 4G Continuity , 2018, % (4G usage % on 4G handsets) Network Performance 67% 64% 2018 2018 60% 62% 58% Total sites in 2018 57% 6,516 23 mbps reached 7,414 sites 3G/4G 4G 52% EXPANSIONS THROUGHP
Slide 160: EM 2018 performance
EM 2018 PERFORMANCE: Rigorous operation is our main lever to deliver sustainable great results 2018 2018 2018 2018 2018 10 % 30 % 34 % 32% 22% CONSUMER EBU MOBILE MOBILE ARPU 2018 2018 2018 GROWTH GROWTH INTERNET INTERNET GROWTH REVENUE TRAFFIC 16 % 18 % 41 % GROWTH GROWTH GLOBAL SERVICE EBITDA REVE
Slide 161: Way forward
Way Forward…. SHAREHOLDERS DIGITIZATION Continue delivering value to Positioning Etisalat as “The shareholders despite challenging Digital Brand” of the future market conditions & increasing capitalizing on our superb competition, focusing on cash customer experience & flow & dividends different
Slide 162: Q&A
Q&A
Slide 163: Closing Remarks
Closing Remarks Saleh Al-Abdooli Group Chief Executive Officer
Slide 164: Thank You
Thank You
Slide 165: Etisalat Group Investor Relations
ETISALAT GROUP INVESTOR RELATIONS Email: ir@etisalat.ae Website: www.etisalat.com/en/ir/index.jspr 165